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Palin: Future Son-In-Law Is No Dropout

ANCHORAGE, Alaska -- Alaska Gov. Sarah Palin says her future son-in-law is not a high school dropout as the press is reporting.

The former Republican vice presidential candidate told The Associated Press on Wednesday that 18-year-old Levi Johnston is enrolled in high school through a correspondence program.

Palin said some media outlets also are erroneously reporting that her 18-year-old daughter, Bristol, is a high school dropout. The governor said her daughter is enrolled in regular high school and also has taken correspondence courses.

Bristol Palin and Johnston are the parents of Sarah Palin's first grandchild, Tripp Easton Mitchell Johnston, who was born Saturday.

Johnston has said he and Bristol plan to marry.

McConnell Attacks Democrats' Stimulus Plans

Saying that taxpayers are “in no mood” to see their money squandered, Senate Minority Leader Mitch McConnell Monday criticized the massive economic-stimulus package being drafted by Democrats as a potential boondoggle that could leave the country strapped with unsustainable debt.

“Taxpayers are in no mood to have a single dollar wasted, but it's not yet been explained how their tax dollars will be protected and not wasted in a rush to spend their money,” said McConnell, R-Ky. “The American people need to know if their money is going to be spent on Mob museums and water slides.”

McConnell and Congressional Republicans want at least a week to scrutinize the bill after its finished. Just as importantly, they want it posted online so that taxpayers can see it, too.

“A trillion-dollar spending bill would be the largest spending bill in the history of our country at a time when our national debt is already the largest in history,” McConnell said in a statement. “As a result, it will require tough scrutiny and oversight. Taxpayers, already stretched to the limit, deserve nothing less.”

McConnell was joined by House Republicans, whose leader indicated that the Obama administration shouldn’t expect them to roll over for a spending program that could approach $1 trillion by some estimates.

The stimulus bill being crafted by Democrats is supposed to be ready by President-elect Obama’s inauguration on Jan. 20. House Speaker Nancy Pelosi, a California Democrat, has repeatedly said that’s her goal, but a spokesman for Democratic Senate Majority Leader Harry Reid of Nevada told Bloomberg news service that since he will need some Republican support to approve the legislation, the timing of Senate action is unclear.

The debate over the bill is likely to be the first test of Republican strength and cohesion in the Obama administration. To stall the bill, McConnell has no room for error. He’ll have to convince Republicans in Democratic-dominated states to stay true to their beliefs. On Monday, McConnell was backed by House Republicans.

“I would ask the Democratic leadership to guarantee that such a bill will not be brought to the floor of the House unless there have been public hearings in the appropriate committees, the entire text has been available online for the American people to review for at least one week, and it includes no special-interest earmarks,” Minority Leader John Boehner, R-Ohio, said.

Thus far, House Republicans have been the most vocal in their opposition to a large, spending-oriented stimulus package in the coming year, according to The Hill newspaper.

McConnell said he understood Democrats wanted to move the bill in the two weeks Congress is in session before Obama’s inauguration, but warned he would not agree to rush the bill through the Senate.

A debate will offer Republicans a forum to show conservatives that they are still the party of fiscal responsibility and small government. The GOP has lost seats in the House and Senate over the last two elections, and many in the party blame those defeats on the GOP losing its way on fiscal conservatism.

McConnell said any stimulus should meet a simple test: “Will the yet-unwritten, reportedly trillion-dollar spending bill really create jobs and grow the economy — or will it simply create more government spending, more bureaucrats and deeper deficits?”

The key question will be if McConnell will have the power to slow down the stimulus bill in the Senate. Republicans could be down to 41 seats if Democrat Al Franken defeats Sen. Norm Coleman, R-Minn. Franken is ahead in the latest recount. Though many Republicans favor some kind of stimulus, most conservative economists believe it is best achieved with tax cuts.

“We must also make distinctions between what is ‘stimulus’ — defined by Speaker Pelosi earlier this year as ‘timely, targeted and temporary’ — and what is merely more government spending on favored projects we don't need with money we don't have,” McConnell said.

On Sunday, Obama adviser David Axelrod said the incoming administration has not put a price tag on the stimulus, but suggested it would be in the range of $675 billion to $775 billion. But add-ons by lawmakers could raise the price to $850 billion. His advisers say an $850 billion plan could generate about 3.2 million jobs by the first quarter of 2011.

Yet some liberal economists favor an even bigger spending stimulus: up to $1.3 trillion. Vice President-elect Joe Biden said this month that lawmakers will not be allowed to attach earmarks — pet projects — to the legislation.

Impeachment Panel Offered the Blagojevich Tapes

CHICAGO – Prosecutors agreed on Monday to provide an impeachment panel with tape-recordings in which investigators say Illinois Gov. Rod Blagojevich is heard scheming to sell the powers of his office.

Patrick Fitzgerald, the U.S. Attorney in Chicago, said he will ask a judge next week for permission to turn over redacted versions of four intercepted conversations in which investigators say Blagojevich is heard talking about exchanging state funding and contracts for campaign contributions.

Up to now, Fitzgerald has asked the impeachment committee not to subpoena witnesses that might bear on the criminal conspiracy case against Blagojevich that includes charges the second-term Democratic governor tried to peddle his power to fill President-elect Barack Obama's vacant U.S. Senate seat.

The impeachment panel acceded to Fitzgerald's request not to call Obama's future chief of staff, Rahm Emanuel, and two other Obama aides to testify. Fitzgerald has said Obama is not implicated in the case.

Blagojevich's attorney, Edward Genson, submitted to the panel an internal report ordered by Obama that concluded there were no inappropriate dealings between Obama's staff and the governor or his office.

The fate of Obama's vacant Senate seat is in limbo, with Blagojevich not expected to fill it because of the taint of the investigation and Democrats who control the state legislature putting off consideration of a special election.

Also on Monday, Emanuel announced he would resign his seat representing a Illinois district in the U.S. House of Representatives on January 2. The seat will be filled by a special election.

Blagojevich, 52, has vehemently denied doing anything wrong, defying calls from within his own party to resign and saying the impeachment effort is led by "a political lynch mob."

Genson said the governor would not appear before the impeachment panel, which he criticized as failing to follow standards for evidence.

Obama 'Magic Negro' Parody Started at LA Times

Liberal outrage over a ditty that parodied Barack Obama's identity as a black American ignores the fact that it all began with a Los Angeles Times column by a black liberal columnist who questioned Obama's status as an authentic African-American.

Liberals were not alone in expressing anger. The chairman of the Republican National Committee (RNC) Robert M. Duncan, obviously unaware of the parody’s origin, jumped the gun saying he was “shocked and appalled” at the judgment of one of his potential successors, according to the Associated Press.

Duncan castigated former Tennessee GOP leader Chip Saltsman for sending RNC committee members a Christmas CD featuring a 2007 song called “Barack the Magic Negro.” But David Ehrenstein, a black liberal writer and no friend of Obama's, is the one who first wrote of Obama as a "Magic Negro," in a March 2007 Times column in which he argued that white liberals were portraying Obama as a stereotype.

He likened Obama to “warm and unthreatening” black figures such as actors Sidney Poitier and Morgan Freeman. Ehrenstein insisted that Obama's role as a candidate was "to assuage white 'guilt' over the role of slavery and racial segregation in American history".

"As everyone knows, whites feel no guilt about America's racist history whatsoever," Ehrenstein wrote, according to the Washington Post. "All they care about is the appearance of politesse — the slimy veneer of 'good manners.'"

"Obama's fame," wrote Ehrenstein, is about "his manner, which, as presidential hopeful Sen. Joe Biden ham-fistedly reminded us, is 'articulate.' His tone is always genial, his voice warm and unthreatening, and he hasn't called his opponents names (despite being baited by the media).

"Like a comic-book superhero, Obama is there to help, out of the sheer goodness of a heart we need not know or understand. For as with all Magic Negroes, the less real he seems, the more desirable he becomes. If he were real, white America couldn't project all its fantasies of curative black benevolence on him."

The song, "Barack the Magic Negro," sung by satirist Paul Shanklin, who wrote the parody, was a direct result of Ehrenstein's column. That's where the "Magic Negro" term originated

It was played on the Rush Limbaugh show last year. According to The Telegraph UK, Shanklin plays the Reverend Al Sharpton who he has complaining, " 'Barack the Magic Negro' ... is not authentic like me ... and a guy from the LA paper said he made guilty whites feel good, they'll vote for him but not for me because he's not from the 'hood."

"See, real black men, like Snoop Dogg, or me, or Farrakhan, have talked the talk, and walked the walk, not come in late and won."

The ditty is one of 41 Shanklin songs on a CD titled "We Hate the USA' that Chip Saltsman, Mike Huckabee's presidential campaign manager, sent to RNC members. Saltzman is a candidate for the post of Republican National Committee chairman.

In Saltsman's defense, he described the parody as one of several "lighthearted political parodies" that have been featured on talk radio giant Rush Limbaugh's show.

Ehrenstein, a homosexual, also takes issue with Obama on gay rights. In October 2007, Ehrenstein "attacked Obama for his handling of gay rights issues," according to the Washington Post, and he had even harsher words for his selection of Pastor Rick Warren to lead his inauguration prayer.

At the end of Ehrenstein's blog post, he even says about Obama, "as he's made clear through Warrengate, he's certainly not MY President."

Jeb Bush Signals He's Poised to Run

Former Florida Gov. Jeb Bush has been busy testing the waters since Sen. Mel Martinez, R-Fla., announced this month that he won’t seek reelection in 2010.

According to Politico, sources indicate the president’s brother hasn’t yet made a final decision, but Republican Party leaders are giving him a thumbs-up. And President Bush has already said his brother would make an “awesome” candidate and senator.

"Everything indicates that he's in," said David Johnson, a Republican strategist and the CEO of Strategic Vision. "You're not making calls and laying the ground work for fundraising unless you're clearing the field for your candidacy."

[To see the recent Newsmax interview with Jeb Bush, go here now]

Even with his brother’s low, low popularity ratings, GOP leaders are of the mind that the Bush family name won’t be a hindrance if he decides to enter the race.

"Quite the opposite, actually," said one source close to Jeb Bush. "What he's found is that everyone is encouraging him to run. It's actually been a little overwhelming," according to the Politico report.

Indeed, the possibility of another Bush entering a crucial national race seemed to excite both politicians and veteran observers in Bush’s home state of Florida over the weekend. Until rising stars like Sarah Palin or Louisiana Gov. Bobby Jindal are better tested, Bush could bring some much-needed gravitas to Republican circles, according to several observers.

Susan MacManus, a political science professor at the University of South Florida and an expert on Florida politics, said Bush's phone calls around the state are "a good sign" that he could be jumping in the race, something that she says is "music to the ears of Florida Republicans."

"Nothing could have come at a better time," MacManus told Politico. "Republicans here in Florida were so down after the election. The mere mention of Jeb's potential Senate run has put Republicans in a much more festive holiday mood."

In the Orlando Sentinel on Sunday, Fla. State Rep. Dean Cannon, who is slated to be the speaker of the state house in 2010, wasted no time in throwing his support to Bush.

“As Floridians ask who would best succeed Martinez in the Senate, I believe that the best and most logical successor is Jeb Bush — not because he has proven that he can win, but because he has proven that he can lead,” Cannon, of Winter Park, Florida, wrote.

”Bush led, not only on issues that were popular, but on issues that were so difficult and so full of political thorns that a generation of politicians before him chose to simply ignore them in the hopes that they would go away or resolve themselves.”

Although there was some speculation that a veteran business leader and former chief executive of his state might hesitate at being just one voice among 100 in the Senate, most seem to think that Bush’s sense of public service would outweigh his ego.

Mark Silva, a veteran Florida politics reporter, wrote in the Chicago Tribune’s Swamp politics blog: “For anyone who has known Jeb Bush a long time, the thought of him even thinking of the Senate came as a surprise — he is the chief executive's chief executive, not the go-along, get-along sort of compromiser that life in a legislature requires. Yet anyone who has known him also knows that he takes his politics, and more importantly, public policy, seriously. He sees a certain void in his party at the moment: An absence of someone in Washington with a pulpit to advance the opposition's cause in a reasoned and methodical manner.”

Another source added, "I think he was a little surprised by the magnitude of support. It was so broad and so deep."

Bush left the governor's office two years ago with high approval ratings, was praised for his hands-on role in handling several destructive hurricanes and has held on to his popularity as a private citizen.

"The support is there," a source said. "Fundraisers are calling him. The money will be there."

But Jeb Bush might face some formidable competition from Gov. Charlie Crist, who is also among those eyeing the empty Senate seat. So is Republican Bill McCollum, the Florida attorney general and former congressman.

Among the Democrats, Alex Sink, the state's chief financial officer, and Reps. Allen Boyd and Ron Klein are also considering a Senate run.

Late Nite Jokes

Late Show Top Ten

Top Ten Things Overheard At The Bush Family Christmas

10. "Condi's gooned on egg nog — mission accomplished"

9. "It was nice of the White House to hire Sarah Palin to work the coat check"

8. "When all is said and done, history will show that this get-together sucked"

7. "Cheney's stopping by — charge the defibrillator"

6. "Please don't spoil this occasion by talking about the economy, climate change, Iraq, Afghanistan, collapse of the Republican Party, or approval ratings"

5. "He's spent three-and-a-half hours trying to pronounce 'Chanukah'"

4. "The Ghost of Christmas Past is here to remind us how great things were under Clinton"

3. "Why is Barack Obama moving his stuff into the Oval Office?"

2. "The red cheeks. The huge belly — Al Gore's here!"

1. "What do you get for the guy who's wrecked everything?"

David Letterman

Every New Year’s in Times Square, they drop the ball. Not this year. Angry investors are dropping Bernie Madoff off a building.

I will not be in Times Square this year. If I want to watch a ball drop, I’ll watch the Detroit Lions.

Christmas is over. Sidewalk Santas are now back to selling crack.

I think my son was disappointed at what he got this year. After opening his gifts, he started throwing shoes at me.

Craig Ferguson

Christmas is over. Isn’t it great? You don’t have to see your family until next Thanksgiving.

I didn’t get what I wanted this year. What I really wanted was the day off after Christmas.

The day after Christmas is called Boxing Day where I come from. It comes from opening the donation boxes after Christmas. Priests would hand out money to the poor. We could do that here in America — the day after Christmas we could give help to the needy: the hobos, the poor, like the car companies . . . the banks . . .

Congress Approval Hits Single Digits – Again

By: Dave Eberhart

Approval of Congress’ job performance has plunged to single digits again for the first time since early September, says the latest Rasmussen Reports.

In the wake of the on-again, off-again auto bailouts, only 9 percent give Congress good or excellent ratings, while 54 percent give the legislature poor marks. Just 2 percent think Congress is doing an excellent job.

The last time the ratings were this low was on September 9. In late November, 12 percent gave Congress good or excellent ratings. This is now the fifth time congressional ratings have fallen below 10 percent since June 1, says Rasmussen.

In other new Rasmussen survey findings:

Only 14 percent of Democratic voters rate the performance of the Congress led by their own party as good or excellent, compared to 5 percent of Republicans and 6 percent of unaffiliated voters. Thirty-five percent of Democrats say the legislators are doing a poor job, and 69 percent of Republicans and 63 percent of independents agree.

Sixty-six percent of men give Congress poor ratings, only 43 percent of women do the same. Eight percent of men give Congress positive ratings, along with 10 percent of women.

Thirty-four percent surveyed believes most members of Congress are corrupt, while 39 percent disagree. In last month's survey, 36 percent saw most members as corrupt.

Forty percent of Republicans view most Congress members as corrupt, along with 36 percent of unaffiliated voters and 28 percent of Democrats. Forty-four percent of Democrats do not see most members that way, and 38 percent of Republicans and 34 percent of unaffiliated voters agree.

Just 14 percent of voters believe members of Congress are more interested in helping people than their own careers, down from 23 percent in November. Seventy-one percent say the opposite.

Eighty-four percent of Republicans, 54 percent of Democrats and 79 percent of unaffiliated voters say most members of Congress are more interested in helping their own political careers. Six percent of GOP voters and 9 percent of independents think members of Congress are most interested in helping people, compared to 24 percent of Democrats.

Thirteen percent of voters say Congress has passed legislation to significantly improve life in America, but 60 percent say the opposite. Moreover, 57 percent say it is at least somewhat likely that Congress will address serious issues facing our nation in the near future — although 39 percent say it is unlikely.

Top Scholars Confirm Truth of Christianity

Los Angeles, Calif. – A new survey recently showed that 70% of people in Great Britain doubted the biblical account of the birth of Jesus Christ but they are “gravely mistaken,” says Dr. Ted Baehr, a professional scholar and theologian who founded The Christian Film & Television Commission ministry in 1985.

Christianity is true as well as historical, factual and “intellectually sound,” Dr. Baehr asserted.

“Top scholars, historians and experts have confirmed that the Bible is the most historically and intellectually reliable ancient text in the whole world, including the Bible’s account of the life and teachings of Jesus Christ and the apostles and disciples who wrote the New Testament documents,” Dr. Baehr said.

He cited the work of numerous top scholars, historians and experts, such as C.S. Lewis, Gary Habermas, F.F. Bruce, William Lane Craig, John A.T. Robinson, John Warwick Montgomery, Bruce Metzger, Simon Greenleaf, Stuart C. Hackett, J. Gresham Machen, Ronald Nash, Edwin Yamauchi, Craig Blomberg, John Wenham, Lee Strobel, Paul Maier, and N.T. Wright.

“These people are wonderfully astute thinkers, investigators and writers,” Dr. Baehr said. “They have refuted all of the important lies, half-truths and silly comments against Jesus, His apostles, the Bible, and Christianity made by non-Christians and even by some allegedly former Christians.”

“Not only can you have complete faith in the New Testament documents and what they say about the virgin birth, divinity, crucifixion, resurrection, and teachings of Jesus Christ,” Dr. Baehr said, “but you can also rely on what they say about non-Christian places, people and events, such as the names and titles of Roman government officials.

“Jesus is both God and Man,” he added. “He was born of a virgin, never sinned in His life, died for our sins, and rose on the third day. Turn away from your sins and faults, believe in Jesus and His teachings, and be baptized in the Name of the Father, Son and Holy Spirit.”

The Christian Film & Television Commission® ministry, a non-profit organization registered with the IRS, and its publication, MOVIEGUIDE®: A Family Guide to Movies, Entertainment and Culture, are dedicated to “redeeming the values of the entertainment industry by influencing industry executives and by informing and equipping the public about the influence of the entertainment media.”

Obama To Have Ten Official Inaugural Galas

WASHINGTON -- President-elect Barack Obama and his wife, Michelle, will twirl their way through 10 official inaugural balls on Jan. 20.

The Presidential Inaugural Committee said Wednesday that the Obamas would attend 10 official balls, one more than President George W. Bush and Laura Bush attended in 2005.

For ball-goers and Obama-watchers, a few questions remain: What will Michelle Obama wear? Who will perform? And will young daughters Sasha and Malia attend?

No word from the committee on those fronts.

Six of the official balls will be held at the Washington Convention Center, with others at Union Station, the Washington Hilton, the National Building Museum and the DC Armory.

But the biggest parties this time may well be unofficial.

MTV and BET are throwing televised parties, while the Creative Coalition will hold a gala to be headlined by Elvis Costello. Dionne Warwick is hosting the American Music Inaugural Ball.

Poll: Blago ‘Naughtiest' Pol, Then Spitzer, Edwards

Beleaguered Illinois Gov. Rod Blagojevich tops a new CNN poll that names him the “naughtiest politician” in 2008.

Blagojevich, accused of trying to sell President-elect Barack Obama’s Senate seat, was arrested this month on federal corruption charges and has been facing record low approval ratings in Illinois for more than two years.

The national poll, conducted by CNN/Opinion Research Corp. and released Wednesday to coincide with Santa’s annual “naughty list,” places former Gov. Eliot Spitzer, D-N.Y., second, followed by former Sen. John Edwards, D-N.C., who sought the Democratic presidential nomination during the 2008 primary season.

Blagojevich garnered 56 percent of the vote to Spitzer’s 23 percent and Edwards' 19 percent, making him the politician who most “deserved a lump of coal this Christmas,” according to CNN.

Spitzer and Edwards, like Blagojevich, both were involved in scandals in 2008: Spitzer in a call-girl prostitution ring, and Edwards in an extramarital affair with former staffer Rielle Hunter that resulted in accusations he was the father of Hunter's newborn baby.

Spitzer ultimately resigned his office in March, and Edwards finally admitted to the affair in August. For his part, Blagojevich is denying any wrongdoing in the criminal charges he currently faces.

“Americans typically take a much dimmer view of corruption charges than of sex scandals,” explains CNN polling director Keating Holland, “since the former is a violation of the public trust and the latter is usually considered more of a private matter.”

The results of the poll are based on phone interviews with 1,013 Americans between Dec. 19-21 and may be skewed by the fact that Blagojevich’s transgressions occurred more recently than those of Spitzer or Edwards, CNN reports.

Late Nite Jokes

Jay Leno

Bernie Madoff has been charged with swindling people out of $50 billion. I don’t want to say he’s unpopular, but today as he was walking in New York, he passed a manger scene and Joseph threw a sandal at him.

Here’s a holiday tip I learned over the weekend: A fruitcake can be used like a Duraflame log in the fireplace.

Illinois Gov. Rod Blagojevich says he will not fill Barack Obama’s seat any time soon. He says he’s going to wait until next summer when prices improve.

Late Show Top Ten

Top Ten Answers To The Question, "How Cold Is It?"

10. "It's so cold, auto company executives are asking Congress for soup"

9. "It's so cold, Tom Cruise is making a movie about a plot to assassinate Al Roker"

8. "It's so cold, Starbucks is selling antifreeze macchiatos"

7. "It's so cold, MSNBC employees gathered around Keith Olbermann's giant head for warmth"

6. "It's so cold, Bernie Madoff was defrauding Eskimos"

5. "It's so cold, this morning it took Joe Biden 40 minutes to defrost his hair plugs"

4. "It's so cold, O.J. led an armed raid to retrieve his space heater"

3. "It's so cold, Apple just introduced something called the iScarf"

2. "It's so cold, Iraqis are throwing snowshoes at President Bush"

1. "It's so cold, Santa said, 'Screw Christmas,' and took off for Rio"

David Letterman

It’s freezing cold today. It’s so cold that Bernie Madoff is looking forward to burning in hell.

It’s so cold today that people were throwing shoes at Al Roker.

It’s so cold today that President Bush was ducking ski boots.

Today is the second day of Hanukkah — John McCain made an appearance with Joe the rabbi.

Conan O'Brien

This morning the news said it feels like it’s 10 below zero outside. It’s freezing. It’s so cold, I saw someone rubbing the Olsen twins together to start a fire.

President Bush says he’s already begun thinking about his farewell speech. Which means he’s only two years behind most Americans.

In an interview, Barack Obama says he plans on having a lot of jazz and classical music at the White house. After hearing this, President Bush said, “I better go break the bad news to the Wiggles.”

Toyota announced their first loss in 70 years. The head of Chrysler called them and said, “Don’t worry — you get used to it.”

Craig Ferguson

Jim Carrey stars in a new movie where he can only say yes. That’s better than “Liar Liar” where he played a lawyer who told the truth. That’s about as believable as Mel Gibson playing a rabbi.

Happy Hanukkah, Mel.

Jim Carrey always plays in movies where he can do only one thing. In the new one, “Yes Man,” he can only say yes. Then he was a lying lawyer who ended up telling the truth. Then there were his movies where he was talking with his butt.

Obama Report: No Clue Blagojevich 'Selling' Senate Seat

WASHINGTON — An internal review prepared for Barack Obama found his incoming chief of staff had multiple conversations with the Illinois governor's office, but said the talks did not involve any deal concerning whom the governor would appoint to replace Obama in the Senate.

The report was released Tuesday as a transition official disclosed that Obama and two of his top aides, Rahm Emanuel and Valerie Jarrett, have been interviewed in connection with the federal investigation into Gov. Rod Blagojevich. The transition official, speaking on a condition of anonymity before the report's public release, also confirmed that Emanuel had been captured on wiretaps taken as part of the investigation.

Blagojevich was charged on Dec. 9 with plotting to use his governor's authority to appoint Obama's Senate replacement and make state appointments and contracts in exchange for cash and other favors. He has denied any criminal wrongdoing and has resisted multiple calls for his resignation, including one from Obama.

Incoming White House attorney Greg Craig, who conducted the internal review at Obama's request, found that the president-elect had no contact with Blagojevich or any of his staff about the Senate seat Obama vacated to take over the presidency.

Emanuel, Obama's pick for White House chief of staff, was the only Obama adviser to talk to Blagojevich and his top aide, John Harris, Craig found. The two men have been arrested as part of a federal corruption investigation.

Emanuel had one or two conversations with Blagojevich and four with Harris on the subject of the Senate seat, according to the review. The report said Obama authorized Emanuel to pass on the names of four people he considered to be highly qualified to take over his seat — Illinois Comptroller Dan Hynes, Illinois Veterans' Affairs Director Tammy Duckworth, Rep. Jan Schakowsky and Rep. Jesse Jackson Jr.

"In later telephone conversations, Mr. Emanuel — also with the president-elect's approval — presented other names of qualified candidates to Mr. Harris including Attorney General Lisa Madigan and Ms. Cheryle Jackson," the report said. "Mr. Harris did not make any effort to extract a personal benefit for the governor in any of these conversations. There was no discussion of a Cabinet position, of 501c(4), of a private sector position or of any other personal benefit to the governor in exchange for the Senate appointment."

The report said that earlier, Emanuel recommended Jarrett for the Senate seat without Obama's knowledge, and Jarrett later accepted a job as a senior White House adviser.

Craig revealed his findings into a memo to Obama. The memo was dated Tuesday, but a transition official said an initial copy was given to Obama on Dec. 15. On that day, Obama announced that the report was ready but that he was withholding it from public release for a week at the request of the U.S. attorneys still conducting their investigation.

In the meantime, the transition official said, Emanuel was interviewed by federal officials who replayed a wiretapped conversation for him. He then was able to give Craig more details about what he said, and those details were included in the final report, the transition official said. Transition officials discussed the final version with Obama on Monday as he vacationed in Hawaii.

ACORN, Soros Linked to Franken Vote Grab

Minnesota Secretary of State Mark Ritchie, who orchestrated the recount that gave Democratic challenger Al Franken a lead some six weeks after incumbent GOP Sen. Norm Coleman appeared to win by 725 votes on Election Day, has extensive ties to both the ACORN organization now under federal investigation for vote fraud, and to MoveOn.org ultra-liberal kingmaker George Soros.

In 2006, ACORN endorsed Ritchie in his bid to become secretary of state, and Ritchie also received a campaign contribution that year from Soros.

Indeed, Ritchie has credited his own political career in large part to an obscure, Soros-funded group called the Secretary of State Project (SoS), whose express purpose is to seed state election bureaucracies nationwide with partisan activists -- Ritchie among them -- who are strategically positioned to influence the outcome of close recounts like the one now underway in Minnesota.

The SoS Web site lauds Ritchie as “arguably the most progressive secretary of state in America,” and states: “Thanks to SoS Project donors, Minnesota’s Mark Ritchie – a true champion for Democracy – was able to defeat a two-term incumbent Republican by less than 5 points. We helped close the gap and make the difference with cable television ads targeting women and seniors.”

Nor does Ritchie downplay the role of the Soros-funded nonprofit in his own election win.

“I want to thank the Secretary of State Project and its thousands of grassroots donors for helping push my campaign over the top,” he states on the partisan political site.

Newsmax has learned that contributors to Ritchie’s 2006 campaign, which made him the No.1 official in charge of impartially supervising Minnesota recounts, is a veritable Who’s Who of partisans seeking to alter the outcome of elections, including:

Soros. He donated $250, but perhaps more importantly, he funded organization’s essential to promoting Ritchie’s candidacy.

Anne Chasnow, who donated $150. Chasnow is a longtime voter registration activist who listed her employer as ACORN.

Drummond Pike, a well-known rainmaker for leftist organizations with extensive ties to ACORN, who along with a family member donated $500 to Ritchie.

Deborah Rappaport, who donated $250. Her Rappaport Foundation underwrites progressive causes nationwide.

James Rucker, the former director of grass-roots mobilization at MoveOn.org, and reportedly a co-founder of the Secretary of State Project. He donated $250 to Ritchie’s campaign.

The link to the SoS Project is a major reason Washington Times editor Peter J. Parisi has described Ritchie as a “hyperpartisan Democrat” – not exactly the calling card most states would seek in their chief election official.

SoS is funded in part through Soros’ contributions, according to Minneapolis Star-Tribune columnist Katherine Kersten. Kersten describes Ritchie as a “poster boy” for SoS, and Ritchie has proudly endorsed that organization’s efforts to sway the outcome of electoral contests nationwide.

SoS was founded after Democrats involved in George W. Bush’s narrow 2000 election victory blamed Florida Secretary of State Katherine Harris for influencing the outcome. They also charged that then-Ohio Secretary of State Ken Blackwell helped return Bush to power in 2004.

In response, SoS was created to target key secretary of state races nationwide – down ballot races that often can be impacted by even small amounts of money and assistance. So far they take credit for helping Democrats win those key jobs in New Mexico, Nevada, Iowa, Ohio, and, of course, in Ritchie’s Minnesota.

That Ritchie would be the prize protégé of the SoS is no surprise, given his own long history as a community organizer. In 2003, he led National Voice to register over 5 million new voters nationwide.

As ruling after ruling by the Ritchie-led State Canvassing Board has gone against Coleman, some are now openly questioning Ritchie’s influence.

“Mark Ritchie as we all know now is a hard-core liberal who was endorsed by ACORN and funded by ACORN,” Matthew Vadum, senior editor of CapitolResearch.org, a nonprofit think tank, tells Newsmax. “It’s not surprising that he has a permissive attitude toward the recount process.”

A few weeks ago, Vadum says, he expected Coleman to emerge the winner. But now he says Coleman’s chances are “diminishing daily.”

Franken has a 251-vote lead, but many thousands of votes remain to be counted.

“I think things are looking pretty grim. It’s pretty ominous for Coleman. What battle in the recount process has he won? It’s pretty hard for him to lose every single challenge, and yet go on to win the election,” Vadum says.

Kersten, a long-time observer of Minnesota’s political machinations, writes that it’s too soon to say whether Ritchie’s influence and resume will taint the credibility of the contentious recount.

“What we do know,” she writes, “is that the referee in the contest appears to be wearing the colors of one of the teams.”

Blagojevich Pledges to Fight, Won't Quit

CHICAGO -- In an unwavering statement of innocence, Gov. Rod Blagojevich said Friday he will be vindicated of criminal corruption charges and has no intention of letting what he called a "political lynch mob" force him from his job. "I will fight. I will fight. I will fight until I take my last breath. I have done nothing wrong," Blagojevich said in his first official public comments since his arrest last week on federal corruption charges.

The Democrat is accused, among other things, of plotting to sell or trade President-elect Barack Obama's U.S. Senate seat.

"I'm not going to quit a job the people hired me to do because of false accusations and a political lynch mob," Blagojevich said.

Blagojevich had been itching to talk, even though his attorney Ed Genson didn't like the idea.

Genson has said he plans to challenge the court-ordered wiretaps at the heart of the allegations against Blagojevich. Genson called the wiretaps inappropriate, if not illegal.

Genson said he expects a federal grand jury to indict his client, which likely would unseal many of the documents supporting the charges.

The governor is also accused of trying to strong-arm the Chicago Tribune into firing editorial writers who criticized him, and pressuring a hospital executive for campaign donations.

Late Nite Jokes

Jay Leno

It’s really cold here! Everybody is shivering. It’s like the whole city is in rehab.

It was so cold in Beverly Hills, even people who didn’t have Botox couldn’t move their faces.

It snowed in Malibu. Unbelievable. Roads were closed. In fact, there was so much snow, celebrities couldn’t get to the global warming conference.

And not only here — it was so cold in Chicago, Gov. Blagojevich tried to sell Senate seat warmers.

Late Show Top Ten

Top Ten Least Popular Holiday Songs

10. On the first day of Christmas my true love gave to me absolutely nothing because of the bad economy

9. Amy, the red-nosed Winehouse, will need a new liver soon

8. I'm dreaming of a white Christmas, but Al Gore tells me we're all screwed

7. Biden might do all right if his hair plugs stay in tight

6. Dr. Tannenbaum, Dr. Tannenbaum, is Cialis right for me?

5. Deck the halls with illegal payoffs, Bla-Bla-Bla-Bla-Bla Blagojevich

4. Ahmadinejad, Ahmadinejad, Ahmadinejad, you set our hearts aglow like a spent fuel rod

3. It's beginning to look a lot like Christmas, 1929

2. I have an irregular heart beat, pah-rum-puh-puh-puh-pum

1. Joy to the world, George Bush is done

David Letterman

The holiday spirit is infectious. That guy who threw the shoes at President Bush? Today, he was throwing fruitcakes.

Bernie Madoff, the guy who swindled investors out of $40 billion, was arrested and released on bail . . . sent home to his $7 million Park Avenue penthouse. He’s on house arrest. That sends a clear message.

A lot of people are saying that’s hardly fair, but insiders are saying, “You don’t know his wife.”

While stuck home, he swindled $20 from the Domino’s guy.

Conan O'Brien

This week, President Bush hosted the annual White House Hanukkah party. There was an awkward moment when Bush made a wish and blew out all eight candles.

Time magazine has selected their Person of the Year and guess what? It’s President-elect Barack Obama. Ironically, Ebony magazine announced that their Person of the Year is Ed Begley Jr.

According to a new survey, the most admired profession is doctor. The least admired profession? Gov. Blagojevich’s barber.

Mexico City has begun working on expanding its subway system. Apparently they’re adding stops in San Diego and Los Angeles.

Craig Ferguson

There was snow in Malibu today! Global warming? Kiss my a** Al Gore!

It’s snowed in Las Vegas, too! It’s so cold in Las Vegas, you have to tip the strippers 50 bucks just to get them to take their coats off.

Good news for the Disney Channel. They’re going to Russia. They’re going to be broadcasting from Russia. Which is great news for Sarah Palin — she’ll be able to see it from her house.

Jimmy Kimmel Live!

Much of the country is covered in snow. Chicago got a foot of snow. The blizzard was so bad, Gov. Blagojevich declared a state of emergency and sent all corruption investigators home.

There was even some snow in Malibu. It got so cold, some women had to be rushed to hot tubs to have their implants defrosted.

Gary Busey woke up, saw white powder all over the lawn, and thought it was Christmas.

Obama's Poet: 'Mustard-Colored Poop'

Obama has been touted as among the most literary presidents in modern history, but his choice for an inaugural poet has some scratching their heads.

Acting more like a man of politics than a man of letters, Obama picked former Chicago neighbor and family chum Elizabeth Alexander to deliver an original inaugural poem next month. Alexander, 46, is an African-American studies professor at Yale. Her brother worked on Obama’s campaign and transition team, according to the New Yorker magazine.

Largely unknown outside academic circles, Alexander becomes only the fourth poet in U.S. history to read at a presidential inauguration. Bill Clinton had poet Maya Angelou read at his 1993 swearing in, and Miller Williams participated at his re-election fete in 1997. The only other poet for an inauguration was Robert Frost, who read his “The Gift Outright” for John F. Kennedy in 1961.

But Alexander is no Robert Frost, critics are quick to point out.

“Alexander writes with a fine, angry irony, in vividly concrete images, but her poems have the qualities of most contemporary American poetry — a specificity that’s personal and unsuggestive, with moves toward the general that are self-consciously academic. They are not poems that would read well before an audience of millions,” writes George Packer in the New Yorker.

Vividly concrete images indeed. Consider this segment from an Alexander poem titled “Neonatology.”

“Is

“funky, is

“leaky, is

“a soggy, bloody crotch, is

“sharp jets of breast milk shot straight across the room,

“is gaudy, mustard-colored poop, is

“postpartum tears that soak the baby’s lovely head.

Another passage:

“Shockingly vital, mammoth giblet,

“the second living thing to break free

“of my body in fifteen minutes.

“The midwife presents it on a platter.

“We do not eat, have no Tupperware

“to take it home and sanctify a tree.”

Alexander, who has published four collections of poetry, including 2005’s Pulitzer-nominated “American Sublime,” will take the stage along with a host of other celebs, including Aretha Franklin, Itzhak Perlman, and Yo-Yo Ma. She says she’s thrilled at being picked for the inaugural gig.

Obama “is a man who understands that words bring power, who understands the power of language, the integrity of language, that it's not just idle,” Alexander told the Guardian in London. “To be asked to turn my own words to this occasion and for this person is all but overwhelming It's the balance between listening to the muse and speaking to many, many people."

Obama Plan's Price Tag: $850 Billion

WASHINGTON – Anxious to jolt the economy back to life, President-elect Barack Obama appears to be zeroing in on a stimulus package of about $850 billion, dwarfing last spring's tax rebates and rivaling drastic government actions to fight the Great Depression.

Obama has not settled on a grand total, but after consulting with outside economists of all political stripes, his advisers have begun telling Congress the stimulus should be bigger than the $600 billion initially envisioned, congressional officials said Wednesday.

Obama is promoting a recovery plan that would feature spending on roads and other infrastructure projects, energy-efficient government buildings, new and renovated schools and environmentally friendly technologies.

There would also be some form of tax relief, according to the Obama team, which is well aware of the political difficulty of pushing such a large package through Congress, even in a time of recession. Any tax cuts would be aimed at middle- and lower-income taxpayers, and aides have said there would be no tax increases for wealthy Americans.

While some economists consulted by Obama's team recommended spending of up to $1 trillion over two years, a more likely figure seems to be $850 billion. There is concern that a package that looks too large could worry financial markets, and the incoming economic team also wants to signal fiscal restraint.

In addition to spending on roads, bridges and similar construction projects, Obama is expected to seek additional funds for numerous programs that experience increased demand when joblessness rises, one Democratic official said.

Among those programs are food stamps and other nutrition programs, health insurance, unemployment insurance and job training programs.

Obama advisers, including Christina Romer and Lawrence Summers, have been contacting economists from across the political spectrum in search of advice as they assemble a spending plan that would meet Obama's goal of preserving or creating 2.5 million jobs over two years.

Among those whose opinions Obama sought were Lawrence B. Lindsey, a top economic adviser to President George W. Bush during his first term, and Harvard professor Martin Feldstein, an informal John McCain adviser and the chairman of the Council of Economic Advisers under President Ronald Reagan.

Feldstein recommended a $400 billion investment in one year, Obama aides said, and Lindsey said the package should be in the range of $800 billion to $1 trillion. The aides revealed the discussions on condition of anonymity because no decisions had been reached.

"I do recommend $400 billion in year one and expect a similar amount in year two," Feldstein said in an e-mail message. "The right amount depends on how it is used."

Lindsey could not be reached.

Obama aides also pointed to recommendations by Mark Zandi, the lead economist at Moody's Economy.com and an informal McCain adviser who has been proposing a $600 billion plan.

"I would err on the side of making it larger than making it smaller," Zandi said in an interview. "The size of the plan depends on the forecast — the economic outlook — and that is darkening by the day."

"Even a trillion is not inconceivable," he said.

Only one outside economist contacted by Obama aides, Harvard's Greg Mankiw, who served on President Bush's Council of Economic Advisers, voiced skepticism about the need for an economic stimulus, transition officials said.

The advisers say they agree with economic forecasts that predict that without a government infusion unemployment will rise above 9 percent and not begin to come down until 2011.

Senate Majority Leader Harry Reid, D-Nev., said Wednesday that Obama has indicated that Congress will get his recovery recommendations by the first of the year.

"He's going to get that to us very quickly and so we would hope within the first 10 days to two weeks that he's in office, that is after Jan. 20, that we could pass the stimulus plan," Reid said. "We want to do it very quickly."

In a letter to Peter Orszag, Obama's choice to be White House budget chief, Reid asked, among other things, that the stimulus package include tax relief for middle-class families, including a reduction in rates and an extension of the child tax credit.

Obama's aides have said they hope to work with Republicans in writing the bill, particularly in the Senate, where the GOP could slow action if it chooses. This week, House Speaker Nancy Pelosi said Democrats were preparing their own recovery bill in the range of $600 billion, blending immediate steps to counter the slumping economy with longer-term federal spending that encompasses Obama's plan.

A stimulus package that approaches $1 trillion could run into significant Republican opposition in Congress. It also could cause heartburn for moderate and conservative Democratic lawmakers, known as Blue Dogs, who oppose large budget deficits.

"Republicans want to work with the president-elect to help get our economy on the path to recovery, but we have grave reservations about taking $1 trillion from struggling taxpayers and spending it on government programs in the name of economic 'stimulus,'" House Republican leader John Boehner said in a statement.

In February, Congress passed an economic stimulus bill costing $168 billion and featuring $600 tax rebates for most individual taxpayers and tax breaks for businesses. Pelosi largely bowed to President Bush's insistence to keep the measure free of spending on federal projects.

The upcoming effort would dwarf that earlier measure as well as a $61 billion stimulus bill the House passed just before adjourning for the elections. That measure died after a Bush veto threat and GOP opposition in the Senate.

Late Nite Jokes

Jay Leno

President Bush hosted his final White House Hanukhah party. Hanukkah celebrates the miracle of when only a tiny amount of oil burned for eight days — ExxonMobil’s worst nightmare.

President Bush announced that before he leaves office he wants to visit the poorest regions of the world. Any place where people can’t afford to buy shoes.

That Iraqi journalist who threw the shoes at Bush says he planned the attack for months. Months? Yet he still missed both times?

Barack Obama has named another Cabinet member: former Gov. Tom Vilsack as his Agriculture secretary. Vilsack. That sounds like a condition you should see your neurologist about.

Late Show Top Ten

Top Ten Things Jim Carrey Will Always Say Yes To Presented By Jim Carrey

10. Dressing up like an Iraqi and throwing a shoe at President Bush

9. Watching YouTube video of guys getting hit in the nuts

8. A fan asking for a hug — unless it's a dude

7. Fresh ground pepper

6. David Letterman's drunken requests to see me taking a bath

5. People who ask me to say, "all-righty then!" That never gets old

4. Sex with a big, fat roadside waitress

3. Lucrative endorsement deals: Remember, you're not fully clean unless you're Zestfully clean

2. The question, "Aren't you Jim Carrey, the funniest, sexiest, most talented man in all of Hollywood?"

1. Tub time with Larry King

David Letterman

Last night’s studio audience was terrible. I call them the Federal Reserve audience — their interest rate was zero.

Anthropologists have found a well-preserved brain, dating from the Middle Ages. Here’s the thrust — they found it in the head of Dick Cheney.

Dick Cheney recently said that we made the right decision to go to war in Iraq . . . well, that’s good enough for me.

A guy threw his shoes at President Bush while Bush was in Iraq. If you thought that was the end of it, you’re wrong. Iran has announced plans to develop a long-range loafer.

Conan O'Brien

Last night a snow storm hit Chicago, but Celine Dion refused to cancel her concert. Good for her. People in Chicago said the snow storm was the second-worst thing that came down from Canada that night.

It’s being reported that the Iraqi reporter who threw the shoes at President Bush had his arm broken when security subdued him. Even worse — it was his shoe-throwing arm.

President Bush said in an interview that he has a collection of over 250 autographed baseballs. Unfortunately, the question he was asked was, “Do you have an exit strategy for Iraq?”

Craig Ferguson

They there’s a recession going on. I think it’s worse than that — I may have to go back to wrestling to make ends meet.

Good news from India — a New Delhi woman gave birth to a baby girl. She was 70 years old. Not the baby, the woman.

This is the oldest woman to have a child since Demi Moore had Ashton.

Jimmy Kimmel Live!

President Bush appears to be in good spirits after avoiding a double shoeing attempt in Iraq.

Although he is not shaken by the reporter who threw shoes at him, the Secret Service isn’t taking any chances. All members of the White House Press Corps are required to check their shoes at the door for press conferences.

Oprah’s production company, Harpo, has signed a deal to create original programs for HBO. They already have their first project underway: The “Opranos.”

Conservatives Press Bush to Resist Auto Bailout

WASHINGTON – Conservative Republicans admonished the White House Tuesday not to use bank-bailout billions to rescue distressed U.S. automakers, and a key Democrat demanded the government get veto power over the companies' business decisions as a condition of any aid.

The Bush administration said it was still evaluating options and suggested any deal would require major concessions by all sides. Complicating its task, lawmakers in both parties — having failed in their efforts to push a $14 billion auto rescue through a bailout-weary Congress — were pressing for an array of terms and conditions they said should be part of any Plan B.

"We are not going to be rushed into it," presidential press secretary Dana Perino declared.

Only a day earlier, President George W. Bush suggested that a rescue package would come sooner rather than later. "An abrupt bankruptcy for autos could be devastating for the economy," Bush said on Monday. "This will not be a long process because of the economic fragility of the autos."

Still, conservative Republican lawmakers, many from Southern states that are home to Japanese auto plants, wrote to Bush asking him not to use one of the most readily available pots of money — the $700 billion Wall Street rescue fund — to help the U.S. carmakers.

And the White House and Treasury Department were in talks with Sen. Bob Corker, R-Tenn., who has been pressing for big union concessions in exchange for rescue money, on the terms and structure of a possible bailout, said a senior GOP congressional aide.

Corker came close last week to striking a deal with the United Auto Workers union for a $14 billion bill that would have forced the carmakers to bring their wages and benefits in line with those of Japanese auto companies in the U.S. by a specific date in 2009. The measure collapsed after the UAW refused to agree to wage cuts that quickly. The new contacts with the administration were disclosed on condition of anonymity because the aide was not authorized to divulge them.

Rep. Barney Frank, D-Mass. weighed in as well, urging Treasury Secretary Henry Paulson to adopt the accountability provisions included in a House-passed auto bailout bill — the product of a deal with the White House — as a condition of any bridge loans to U.S. automakers. That measure would have given a Bush-appointed overseer say-so over any major business decisions by the automakers while they were taking advantage of federal aid, including the power to nix any transaction of $100 million or more.

"Given the serious mistakes that senior auto industry executives acknowledge they have made in the past, such safeguards are absolutely necessary to ensure that taxpayers are protected and that the retooling of this critical industry proceeds as quickly as possible," Frank wrote to Paulson on Tuesday.

GM and Chrysler have said they will run out of cash within weeks if they don't get help. Ford Motor Co. has said it has enough cash to survive 2009.

Perino said the administration was still working on details of the package, which could reach $15 billion for General Motors Corp. and Chrysler LLC.

She said concessions had to be made in exchange for the money.

"I don't think that there's any possible way that this president would agree to allow taxpayer financing to go toward firms that are not willing to make tough decisions to become viable and competitive in the future," she said.

Bush said Tuesday that his administration was "considering all options" for helping the automakers, arguing that the already distressed economy could slide further into recession without prompt action.

"What you don't want to do is spend a lot of taxpayers' money and then have the same old stuff happen again and again and again," Bush told CNN in an interview. At the same time, he said, "we're trying to get this done in an expeditious way."

The administration indicated it would extend a helping hand to the domestic automakers after an aid effort died in Congress late last week. The White House had wanted Congress to act.

The timing and details of Plan B — the Bush administration stepping in to help the automakers directly — remain in flux. In the absence of action, lawmakers were eagerly offering up their counsel, particularly on the idea of using the $700 billion financial industry rescue fund, known as the Troubled Asset Relief Program, to help U.S. automakers.

"Congress never voted for a federal bailout of the automobile industry, and the only way for TARP funds to be diverted to domestic automakers is with explicit congressional approval," wrote 26 GOP lawmakers, led by Rep. Jeb Hensarling of Texas.

Seven Senate Republicans led by Sen. Jim DeMint of South Carolina fired off a similar missive saying that without restructuring, "we do not believe any amount of money will succeed in saving these companies."

The administration is weighing several options. They include using part of the $700 billion fund to provide loans to the carmakers, or using money from the fund as collateral for emergency loans the automakers could get from the Federal Reserve.

The White House has repeatedly said it wants to avoid a "disorderly bankruptcy" of any major automaker — presumably a Chapter 7 filing that would effectively shut down the company and require a destructive liquidation of its assets.

But the administration has not taken off the table an aid package that could still force one or more companies to enter into a Chapter 11 bankruptcy, which would allow a carmaker to keep operating but put it under the purview of a court.

Among the White House's chief concerns is that any aid package it authorizes would not have the same force of law that a plan approved by Congress would have. The White House is researching ways to provide leverage to hold carmakers accountable for the money they get.

Late Nite Jokes

Jay Leno

Rough weather in a lot of the country. Ice storms in the Northeast, cold snap in the Midwest. In fact, it was so cold in Chicago, Gov. Blagojevich actually had his hand in his own pockets.

The weather was so bad in Washington, people were throwing snow shoes at President Bush.

A big surprise in the Sunday morning news — Sen. John McCain says he may not support Sarah Palin if she’s around in 2012. Of course the bigger question is, Will McCain be around in 2012?

In New Jersey, the state Senate is working on a bill to legalize medical marijuana. They say it’s the one thing that can really ease the pain of having to live in New Jersey.

Late Show Top Ten

Top Ten Craziest Things People Say About Tom Cruise On The Internet

10. I sleep upside down suspended in a special bat-like harness

9. During the filming of "Days Of Thunder," on a dare, I ate a tire

8. I still wear those underpants from "Risky Business"

7. My real name is Tom Blagojevich

6. I once Heimliched a koala

5. Once a month, I take the Universal Studio tour naked

4. I believe all emotional and psychological disorders can be cured with Vicks VapoRub

3. I'm a power-mad egomaniac who's completely insulated from reality. Oh, wait, no that's Letterman

2. After jumping on her couch, Oprah hammer-locked me till I coughed blood

1. I keep a cell phone in my pants so I can tell friends, "Call my ass"

David Letterman

The holidays are just wonderful. Here’s what I thought was sad, though: the line for the mall Santa? Out the door and around the block. The mall rabbi? Nothing.

The economy is killing me. I just got a new American Express card, and as I’m about to sign it, I see a line that says, “Good through Thursday.”

They’re finding out a lot about the guy who threw the shoes at President Bush. He’s reported to be a hothead with poor journalistic skills. No surprise — today he was offered his own show on Fox News.

Bush says he’s actually happy about the incident. He says it just proves Iraq has footwear of mass destruction.

Conan O'Brien

Today, President Bush told reporters that the shoe-throwing incident was one of the weirdest moments of his presidency. Bush said the only thing weirder was the time he got re-elected.

Some people are criticizing the Secret Service because the shoe-thrower caught them offguard, and the man was able to throw a second shoe. A spokesman for the Secret Service said, “Sorry, but we were laughing our a***s off."

Yesterday, Dick Cheney was interviewed by ABC News and he reflected on his eight years in office. Then he turned into a bat and disappeared in a puff of smoke.

Earlier today, California Gov. Arnold Schwarzenegger said that his state needs to reduce toxic substances. Of course when Arnold said it, it sounded like, “Ragu taco submarines.”

Craig Ferguson

A new study says that old people store bad memories differently than everyone else. In a related story, John McCain just announced he’s running for president.

Another report says that the economic downturn is even affecting prostitution. If things get any worse, men may be forced to have sex with their wives.

That prostitution joke actually was from the Great Depression in the 1930s. That was the joke that got America back on its feet.

Jimmy Kimmel Live!

Over 300,000 people lost power in the Northeast after ice storms knocked the power out. Hard times here in California too — it almost dipped under 60 degrees today.

The guy next door? He went out to walk his dog and had to come back for a windbreaker.

On his last stop of his last tour of Iraq, President Bush had to dodge some shoes. I was amazed at how nimble he was. I know he’s got a lot of dodging experience from the Vietnam War, but this was pretty slick.

The guy who threw the shoes is now a hero in Iraq. They say he’s shown the world that Iraqis have no masters, but I think what he really has shown the world is that Iraqis have no aim.

Obama: I Probed Myself and I'm Clean

CHICAGO — President-elect Barack Obama had no direct contact with Illinois Gov. Rod Blagojevich about the appointment of a Senate replacement and his aides had "no inappropriate discussions," a spokesman for the transition office said Monday in disclosing the results of an internal review.

The spokesman, Dan Pfeiffer, said the review itself would be kept confidential at least until the week of Dec. 22 at the request of federal prosecutors "in order not to impede their investigation of the governor."

Controversy has swirled around the president-elect and his incoming White House chief of staff, Rep. Rahm Emanuel, following Blagojevich's arrest last week on charges he schemed to trade Obama's Senate seat for personal gain.

As governor, Blagojevich has sole authority to appoint a replacement, although fellow Democrats have demanded he refrain from doing so and Illinois lawmakers may consider legislation stripping him of his power.

State lawmakers also took the first step toward possible impeachment during the day.

In the statement, Pfeiffer said incoming White House counsel Gregory Craig has kept federal prosecutors informed of the internal review "in order to ensure our full cooperation with the investigation" into allegations against the governor.

Yet the brief statement left several issues uncovered.

It did not say whether Emanuel was heard on a wiretap providing the governor's top aide with a list of names that the president-elect favored. Nor did it say who, if anyone, on Obama transition's team had made contact with the governor or his aides concerning a replacement for Obama or whether Craig interviewed people under oath, or to whom he talked.

Pfeiffer said the review "affirmed the public statements of the president-elect that he had no contact with the governor or his staff, and that the president-elect's staff was not involved in inappropriate discussions with the governor or his staff over the selection of his successor as U.S. Senator.

The U.S. attorney's office did not immediately respond to a request for comment.

Pfeiffer issued the statement a few hours before a news conference where the president-elect was likely to be questioned about the scandal surrounding his home-state governor.

Obama was appearing before reporters to formally announce his environmental and natural resources team.

It was disclosed last week that he has selected Steven Chu for energy secretary, Lisa Jackson for Environmental Protection Agency administrator, Carol Browner as his energy and climate "czar," and Nancy Sutley to lead the White House Council on Environmental Quality. An announcement about Obama's interior secretary wasn't expected, but announcements about other top positions in Obama's administration could come later this week.

Earlier in the day, Obama met privately with his national security team, including Vice President-elect Joe Biden, incoming Secretary of State Hillary Clinton and Defense Secretary Robert Gates.

The president-elect's transition office said the meeting was held to discuss opportunities and challenges around the globe and was designed to help the new administration hit the ground running as of Inauguration Day, Jan. 20.

Obama resigned his Senate seat last month to prepare. Blagojevich was arrested last week on charges he schemed to sell the seat in exchange for money or political favors for himself or his wife.

The president-elect quickly told reporters that he never personally spoke to Blagojevich about who would fill the seat. A top Obama aide who had said in November that Obama had spoken to the governor quickly issued a statement saying he had been mistaken.

Last Thursday, Obama, who has promised transparency, said he had ordered an internal review of whether his staff had any involvement in the scandal and promised to divulge within days any contacts his staff has had with Blagojevich's office.

"What I want to do is to gather all the facts about any staff contacts that may have taken place between the transition office and the governor's office," Obama said at the time. "And we'll have those in the next few days, and we'll present them. But what I'm absolutely certain about is that our office had no involvement in any dealmaking around my Senate seat. That I'm absolutely certain of."

But since then, Obama's staff has declined to respond to even basic questions, like how long the review would take, who was leading it and what issues were explored.

And, now the public will have to wait for details until next week, when few will be paying close attention because of Christmas and Obama's plans to celebrate in Hawaii — far away from Chicago, the focal point of the federal investigation.

Two people who have been briefed on the investigation had told The Associated Press that Emanuel is not a target of the probe. They spoke on a condition of anonymity because the criminal investigation is ongoing. One is a person close to Emanuel, who said he has been told by investigators that he's not a subject of their probe.

There are no suggestions that Obama or his aides were involved in the alleged sale of his seat. U.S. Attorney Patrick Fitzgerald has said prosecutors were making no allegations that Obama was aware of any scheming. And Blagojevich himself, in taped conversations cited by prosecutors, suggested Obama wouldn't be helpful to him and called him a vulgar term. Even if the governor was to appoint a candidate favored by the Obama team, Blagojevich said, "they're not willing to give me anything except appreciation."

Late Nite Jokes

Jay Leno

Looks like we’ve finally found something President Bush is good at — dodge ball.

As you know, yesterday in Iraq, President Bush was attacked by a shoe-icide bomber.

President Bush was speaking at a news conference in Iraq when a journalist threw two shoes at him. Here’s what he did to keep from being hit — something he’s never done before — he leaned to the left.

Even Bill Clinton was impressed. He is an expert at ducking shoes . . . and ashtrays . . . and lamps . . .

David Letterman

I hope things go better for Santa this year — last year he was shot down over Alaska by Sarah Palin.

Bush was in Baghdad at a press conference, and a reporter jumped up and started heaving shoes at him. He was screaming, “Here’s your farewell kiss, you dog.” That’s the same goodbye I got from NBC.

They arrested the guy — they’re trying to find out if he is shoenni or shoe’itte.

The guy bought the shoes at a Payless, and they didn’t even do a background check.

Conan O'Brien

Yesterday at a press conference in Baghdad, an angry Iraqi threw his shoes at President Bush’s head. When he saw the shoes, President Bush said, “See? I knew you guys had weapons of mass destruction.”

The man who threw his shoes at President Bush is being hailed as a hero in Iraq. In fact, when he dies, he’ll be greeted in heaven by 72 podiatrists.

Time-Warner Cable has come out with a calendar featuring pictures of sexy cable repairmen. Unfortunately, the cable guy who posed for February won’t show up until sometime between March and June.

Craig Ferguson

A great day for Gov. Blagojevich. He still has his job. He didn’t resign. Everyone thought he was going to resign. Looks like his plan is to keep hanging on, even though the game is over. Political experts call this strategy the “Hilary Clinton.”

Bush has been accused of dodging issues in the past, but who knew he could actually dodge shoes?

He’s 62 years old, but he still has the reflexes of a cat. Mind you, I think his head has been on a swivel ever since Cheney shot his lawyer.

The irony of this shoe-throwing incident is, it’s as close as we’ll ever get to finding weapons of mass destruction in Iraq.

Joe the Plumber Flushes McCain

TOLEDO, Ohio — Turns out that "Joe the Plumber" isn't such a big fan of John McCain after all.

America's most famous plumber said he was appalled by the Republican presidential candidate's reasons for supporting the government's $700 billion bank rescue plan, and he said they nearly caused him to abandon McCain.

These and other insights will be discussed in a forthcoming book that Wurzelbacher said was called, “Fighting for the American Dream.”

Samuel J. Wurzelbacher, who became a household name in the final weeks of the presidential campaign, said he asked McCain why he voted for the bank bailout and was stunned by some of the answers.

"I was angry," Wurzelbacher told conservative radio host Glenn Beck on Tuesday. "In fact, I wanted to get off the bus after I talked to him."

Wurzelbacher, who endorsed McCain a week before the election and joined him on the campaign trail, didn't say exactly what set him off, hinting that would be in his book that is due out this month.

He said the only reason he didn't get off the McCain bandwagon was "because the thought of Barack Obama becoming president scares me even more."

Wurzelbacher, 34, gained his national attention when Obama told him during a campaign stop that he wanted to "spread the wealth around" and their exchange about Obama's tax plan was widely reported. McCain repeatedly cited "Joe the Plumber" in a debate, saying Obama's plan would hurt people like him who want to own their own businesses.

Wurzelbacher also campaigned with vice presidential candidate Sarah Palin. He had only praise for her, calling Palin the real deal.

"It disgusts me on how often they try to bash her just for her sincerity," he said. "She really wants to work for America."

Bush Makes Surprise Farewell Visit to Iraq

BAGHDAD – President George W. Bush on Sunday made a farewell visit to Iraq, a place that defines his presidency for better or worse, just 37 days before he hands the war off to a successor who has pledged to end it.

After a red-carpet welcome ceremony, Bush began a rapid-fire series of meetings with top Iraqi leaders. The president wanted to highlight a drop in violence in a nation still riven by ethnic strife and to celebrate a recent U.S.-Iraq security agreement, which calls for U.S. troops to withdraw by the end of 2011.

But in many ways, the unannounced trip was a victory lap without a clear victory. Nearly 150,000 U.S. troops remain in Iraq fighting a war that is remarkably unpopular in the United States and across the globe. More than 4,209 members of the U.S. military have died and the war has cost U.S. taxpayers $576 billion since it began five years and nine months ago.

Air Force One, the president's distinctive powder blue-and-white jetliner, landed at Baghdad International Airport in the afternoon local time after a secretive Saturday night departure from Washington. In a sign of modest security gains in this war zone, Bush received a formal arrival ceremony — a flourish absent in his three earlier trips.

Bush and Iraqi Prime Minister Nouri al-Maliki planned a ceremonial signing of the security agreement — a "remarkable document," according to Bush's national security adviser, Stephen Hadley. He said the pact was unique in the Arab world because it was publicly debated, discussed and adopted by an elected parliament.

Hadley said the trip proved that the U.S.-Iraq relationship was changing "with Iraqis rightfully exercising greater sovereignty" and the U.S. "in an increasingly subordinate role."

The Bush administration and even White House critics credit last year's military buildup with the security gains in Iraq. Last month, attacks fell to the lowest monthly level since the war began in 2003. Still, it's unclear what will happen when the U.S. troops leave. While violence has slowed in Iraq, attacks continue, especially in the north. At least 55 people were killed Thursday in a suicide bombing in a restaurant near Kirkuk.

For Bush, the war is the issue around which both he and the country defined his two terms in office. He saw the invasion and continuing fight — even after weapons of mass destruction, the initial justification for invading Iraq, were not found — as a necessary action to protect Americans and fight terrorism. Though his decision won support at first, the public now has largely decided that the U.S. needs to get out of Iraq.

It was Bush's last trip to the war zone before President-elect Barack Obama takes office Jan. 20. Obama won an election largely viewed as a referendum on Bush, who has endured low approval ratings because of the war and more recently, the U.S. recession.

Obama has promised he will bring all U.S. combat troops back home from Iraq a little over a year into his term, as long as commanders agree a withdrawal would not endanger American personnel or Iraq's security. Obama has said that on his first day as president, he will summon the Joint Chiefs of Staff to the White House and give them a new mission: responsibly ending the war.

Obama has said the drawdown in Iraq would allow him to shift troops and bolster the U.S. presence in Afghanistan. Commanders there want at least 20,000 more forces, but cannot get them unless some leave Iraq.

After a 10 1/2 hour fight, Bush was met at the airport by U.S. Ambassador Ryan Crocker and the top U.S. commander Gen. Raymond Odierno. The president then climbed aboard a helicopter for a five-minute flight to the presidential palace, an ornate building with mosaic tiling, marble floors and chandeliers.

Other Iraqi officials on Bush's agenda were Iraqi President Jalal Talabani, the country's two vice presidents, the speaker of the Council of Representatives and the head of the Kurdistan Regional Government Massoud Barzani.

The trip was conducted under heavy security and a strict cloak of secrecy. People traveling with the president agreed to tell almost no one about the plans, and the White House released false schedules detailing activities planned for Bush in Washington on Sunday.

Bush's visit came after Defense Secretary Robert Gates' unannounced stop in Iraq on Saturday, at a sprawling military base in the central part of the country. Gates will be the lone Republican holdover from the Bush Cabinet in the Obama administration.

The new U.S.-Iraqi security pact goes into effect next month. It replaces a U.N. mandate that gives the U.S.-led coalition broad powers to conduct military operations and detain people without charge if they were believed to pose a security threat. The bilateral agreement changes some of those terms and calls for all American troops to be withdrawn by the end of 2011, in two stages.

The first stage begins next year, when U.S. troops pull back from Baghdad and other Iraqi cities by the end of June.

Odierno said Saturday that even after that summer deadline, some U.S. troops will remain in Iraqi cities. They will serve in local security stations as training and mentoring teams, and so will not violate the mandate for American combat forces to leave urban areas, he said.

Iraq's Defense Ministry said Sunday that U.S. commanders would have to get Baghdad's permission for keep the troops there.

Odierno said the continuing U.S. presence is important in light of the elections being held in Iraq throughout next year.

The agreement has received its final blessing within Iraqi's government, but Iraqi voters will have the final say in a referendum by the end of July. Provincial elections also are to be held after the first of the year.

Bush Rejects Obama Blair House Request

President-elect Barack Obama has asked if his family can move into Blair House near the White House a little early, but the Bush administration has said, "Sorry."

The Obamas had asked White House officials to move into the historic house across Pennsylvania Avenue about two weeks earlier than is usual so their two daughters could start school with their new classmates on Jan. 5. Obama aides say the White House told them the request could not be met because the current administration still had plans for the government home.

Obama aides say they understand the complex White House schedules and say the Bushes have been very helpful.

A White House spokeswoman says Blair House is available on Jan. 15

Jesse Jr. Backers Sought Cash for Blagojevich

CHICAGO – According to a published report, businessmen with ties to both Illinois Gov. Rod Blagojevich and U.S. Rep. Jesse Jackson discussed raising $1 million for Blagojevich as a way of persuading him to appoint Jackson to President-elect Barack Obama's vacant Senate seat.

Citing unnamed sources, the Chicago Tribune reports in a story for Friday's editions that businessman Raghuveer Nayak (RUG'-oo-veer NAY'-uk) and Blagojevich aide Rajinder Bedi (RUJ'-in-dur BEH'-dee) told attendees at an Oct. 31 meeting that they needed to raise $1 million for the governor to make sure Jackson was appointed to the Senate.

Nayak is a Blagojevich supporter who is also close to the Jackson family. Bedi has also been a Blagojevich fundraiser.

Jackson's attorney said while Jackson discussed the Senate seat with Nayak, he never asked him to do anything.

Rep. Jackson Talks to Ill. Gov. About Senate Seat

CHICAGO -- The man who will pick President-elect Barack Obama's successor in the U.S. Senate is talking to someone interested in the job: U.S. Rep. Jesse Jackson Jr.

Illinois Gov. Rod Blagojevich (bluh-GOY'-uh-vich) says he's meeting Monday with Jackson and describes the Chicago Democrat as a "very strong" candidate. The son of civil rights leader the Rev. Jesse Jackson is among several Illinois politicians mentioned as contenders.

The governor will not say who is on his short list. He says his hope is to pick a replacement before the holidays.

He dismissed the notion that his pick would be tainted by the cloud of a federal investigation hanging over his administration.

Blagojevich says there is no cloud hanging over him, only "sunshine."

Late Nite Jokes

Jay Leno

As you may have heard, the Leno show is going to be going on at 10 p.m. A lot of people were shocked when they heard. Not that I was moving to primetime — that NBC still had a primetime.

President-elect Barack Obama and his family are going to spend the holidays in his home state of Hawaii. You know who couldn’t be more thrilled with this — the reporters who follow the president. After eight years of spending every holiday cutting brush in Crawford, Texas, they get to go to Hawaii.

Earlier today, Obama and Vice President-elect Joe Biden met with Al Gore in Chicago to discuss energy and climate change issues. Obama, Gore, and Biden. So you have the greatest speaker of our lifetime, the most boring speaker of our lifetime, and the guy who will speak nonstop for our entire lifetime all together in one room.

Obama says he is promising not to smoke cigarettes while in the White House. I don’t know — is that a big issue for the average American? Hey — if he fixes the economy, he can smoke a bong in the White House.

Late Show Top Ten

Top Ten Highlights Of The Ball State Cardinals Football Season presented by Head Coach Brady Hoke

10. "Only team in college ball to use kangaroo as long snapper"

9. "I coached the second half of the Toledo game wearing only a headset and underpants"

8. "When O.J. Simpson and some goons showed up and tried to steal our equipment"

7. "Our players met athletes from around the world when Muncie hosted this year's summer Olympics"

6. "Defeating the Detroit Lions"

5. "The loss to Buffalo because it taught us humility and resiliency . . . I'm kidding, it totally blew"

4. "The post-game locker room grab-ass"

3. "Beat Eastern Michigan, Central Michigan, Western Michigan, Southern Michigan, Southwestern Michigan and Mexican Michigan"

2. "None of our players shot themselves in the leg"

1. "The drunk 3 a.m. coaching tips from Letterman"

David Letterman

It looks like the Big Three automakers are going to get some bailout money. You try it — if you have a bad year, go to Washington and try to get some bailout money.

They were told they couldn’t use it to give themselves big bonuses. They said of course not. That’s what the employee pension fund is for.

Here’s an odd story: A 70-year-old woman gave birth. So, congratulations to Madonna and A-Rod.

Conan O'Brien

President Bush says it’s hard to tell if a bailout deal for automakers is imminent. Then he said, “It’s hard to tell if the big hand is on the 11 or the 12.”

Some Senate leaders say it’s close. They say it’s taking so long because every time they almost get a deal, the car executives say, “I’ll have to go and check with my manager.”

The latest rumor in Washington is that President-elect Barack Obama may open up trade with Cuba. This is great news for anyone looking to buy a black-and-white television.

Craig Ferguson

It’s a great day for Jay Leno. He is not leaving NBC. He is going to do his current show in an earlier time slot, 10 p.m. Jay’s getting a little older now, so 10 p.m. is kind of “late night” for Jay.

I’m not sure this is such a good idea. If late night TV starts earlier and earlier, we’ll have to make up jokes about things that haven’t actually happened yet. We’ll be making stuff up. Don’t we have a Fox News already?

It’s very big news in the tiny dark world of late-night talk-show hosts. But then in our world, it’s big news when a Jonas Brother goes on date, or when O.J. Simpson becomes someone’s prison bitch.

Jimmy Kimmel Live!

The governor of Illinois, Rod Blagojevich, was arrested in Chicago for trying to sell Barack Obama’s vacant Senate seat. Which I guess is illegal.

He’s supposed to appoint somebody. But he’s in Chicago — he has Barack Obama’s seat for sale — shouldn’t he go directly to Oprah? Who would pay more for the seat than her?

President Bush has just over a month left in office, and as is customary, he sat for an official portrait. This weekend in Philadelphia, they unveiled the portrait of our 43rd president [portrait of Dick Cheney presented].

Streisand, President Bush Share Awkward Smooch

Barbra Streisand got an awkward kiss on the cheek from the president, and yes, she gave him a smooch back.

Streisand, a vocal critic of President George W. Bush, was a guest Sunday at the White House just before one of Washington's few A-list events: the Kennedy Center Honors.

"Art transcends politics this weekend," the longtime Democrat said beforehand. Still, she said it would have been "lovely" if she could have received the award while President-elect Barack Obama was in office.

The singer and actress was a recipient of the Kennedy Center Honors, along with actor Morgan Freeman, country singer George Jones, dancer and choreographer Twyla Tharp and musicians Pete Townshend and Roger Daltrey of The Who.

The honors recognize individuals who helped define American culture through the performing arts, part of the living memorial to President John F. Kennedy.

The hug and kiss between Bush and Babs - who has previously said Bush's election wins in 2000 and 2004 were stolen - was replayed later on video at a Kennedy Center gala. The crowd couldn't help but laugh.

Queen Latifah opened the tribute to Streisand, saying she "threw out the rule book" to chart her own career. "She took to the stage like butter on a bagel," Latifah added in a video tribute.

Idina Menzel from Broadway's "Rent" and "Wicked" sang "Don't Rain on My Parade" from Streisand's 1964 musical "Funny Girl." She mixed in some new lyrics - "Hey there, Ms. Streisand, I am your biggest fan."

Beyonce Knowles rose from the stage floor to sing "The Way We Were." And the young musical star Ne-Yo grooved to Streisand's 1965 hit "Lover, Come Back to Me," with four male dancers.

"Barbra Streisand is the epitome of emotion in music," Ne-Yo said. "You feel every word, that's something that artists in my day and age don't really pay attention to."

Earlier, another set of stars paid tribute to The Who in front of a neon-lit backdrop of the Union Jack, in honor of the British band.

"The full impact of it is still sinking in," Townshend said of the honor. "It feels a bit iconic."

Rock singer Rob Thomas sang "Baba O'Riley," and the British flag pulled away to reveal a choir of 150 New York policemen and firefighters singing the "teenage wasteland" chorus with Thomas under an American flag. They were thanking The Who for being the first musical group to sign on for an emotional Radio City Music Hall benefit concert after 9/11.

Jones, who earned the nickname "No Show Jones" for performances he missed during his wild drinking days, promised to show up this time. The 77-year-old said "I'm in a daze" about being an honoree.

First lady Laura Bush took the stage to salute Jones, saying "there's no getting tired of a singer like him." Jones is a favorite on the president's iPod, said Secretary of State Condoleezza Rice.

Garth Brooks, Randy Travis and Alan Jackson gave Jones a tip of the hat with performances of the country legend's work. And fellow country singer Shelby Lynne sang "Amazing Grace."

Tickets to the gala sell for as much as $4,000. Last year, the event raised $5 million to support Kennedy Center programs. The show will air Dec. 30 on CBS.

The awards were presented Saturday night at a State Department dinner. Rice addressed each honoree, beginning with Freeman, who once played the president in the movie "Deep Impact."

"I know that when you played the African-American president of the United States, most people thought that would happen when a comet hit," Rice said, drawing laughs and cheers. "But wonder of wonders, fiction has become true."

Freeman, 71, who starred this year in "The Dark Knight," also made headlines after suffering broken bones in a Mississippi car crash in August. The Oscar-winning actor said he was still recovering from nerve damage in his left hand and wore a glove to control the swelling.

Denzel Washington and Clint Eastwood testified to their success working with Freeman.

"You're a great good luck charm," said Eastwood, a 2000 honoree. "Everything you touch is fine by me."

For Tharp's presentation, actress Lily Tomlin said Tharp sees dance everywhere she looks: "This is a woman who saw the Beach Boys and made a ballet."

Kennedy Center President Michael Kaiser, who worked with Tharp at the American Ballet Theater, said Tharp taught him "the difference between making a ballet and making art."

Will Obama Heed White House No Smoking Rule?

U.S. President-elect Barack Obama failed to give a straight answer when asked on a U.S. talk show on Sunday whether he had managed to quit smoking.

In a country where cigarettes are responsible for one in five deaths and smoking costs tens of billions of dollars in health care, Obama has been under pressure to set an example by giving up his reported two-decade-old habit.

Appearing on NBC's "Meet the Press" program, interviewer Tom Brokaw told Obama he had ducked answering the question during an interview last month with ABC's Barbara Walters.

Noting that the White House was a no-smoking zone, Brokaw asked Obama, "Have you stopped smoking?"

"I have," Obama replied, smiling broadly. "What I said was that there are times where I have fallen off the wagon."

"Wait a minute," Brokaw interjected, "that means you haven't stopped."

"Fair enough," Obama said. "What I would say is that I have done a terrific job under the circumstances of making myself much healthier. You will not see any violations of these rules in the White House."

Obama was often observed on the presidential campaign trail chewing Nicorette gum, which helps ease the craving for nicotine. He has tried several times to quit.

The 47-year-old president-elect, who takes office on January 20, works out daily at the gym and sometimes plays basketball. His doctor said in May he was in excellent health, often jogged 3 miles a day and was fit to serve as U.S. president.

Website www.cigaraficionado.com says Gerald Ford, who served from 1974-77, was the last U.S. president to use tobacco on a regular basis. The White House no-smoking rule was imposed by former First Lady Hillary Clinton, now Obama's nominee for secretary of state.

Obama Unable to Keep His Promise on Lobbyists

WASHINGTON -- Faced with hiring a new administration, President-elect Barack Obama is learning how hard it is to keep his promise to avoid aides who have been entangled with the capital's lobbying scene.

An Associated Press review of more than 400 members of Obama's transition team identified at least 34 who have registered in recent years to lobby government officials on behalf of clients or employers -- some as recently as this summer. The AP's review represents the most comprehensive examination to date of people working on Obama's incoming administration.

During the campaign, Obama promised to keep lobbyists at arm's length, and he has taken steps aimed at keeping out the taint of the influence business. He imposed first-ever rules that prohibit anyone on his transition team from working in policy areas on which they had lobbied in the past year -- an arbitrary time period -- and a withdrawal system was set up for anyone who might run afoul of the rule.

"By moving lobbyists out of the particular matters they lobbied, our policy distances them from the interests of their clients," transition spokesman Tommy Vietor said.

Yet, as Obama is finding out, it is impractical to plan and fill up a new government without connections to lobbyists.

Among the AP's findings:

An Obama adviser on immigration issues, Maria Echaveste, lobbied for the United Farm Workers this year to protect immigrant agricultural workers as the Bush administration sought to ease hiring of seasonal farm labor and Congress debated an immigration overhaul. Echaveste, who worked in the White House and Labor Department under President Bill Clinton, assured Obama she will not weigh in on the farmworker visa issue that was her lobbying focus.

The former Agriculture Department official leading Obama's agricultural policy review, Bart Chilton, lobbied until last year as vice president of the National Farmers Union. It spends hundreds of thousands of dollars each year to press for farm subsidy programs, fighting the North American Free Trade Agreement and reducing taxes on farms and ranches.

A lawyer working on Indian issues for Obama, Keith Harper, has worked as a lawyer for Native American tribes, and wrote in a 2006 article that the Interior Department's handling of Indian trust matters has been a "national disgrace." Obama initially assigned Harper to be his lead adviser on the department, but now Harper is advising the campaign more narrowly on Indian gaming. Harper was registered to lobby on sovereignty issues for a tribe as recently as this year but did not personally lobby, transition aides and a tribe official said.

An Obama transition adviser for health and human services, Bill Corr, lobbied to prevent children from smoking as executive director of the Campaign for Tobacco-Free Kids. The group has spent $675,000 this year trying to influence policymakers. Corr has told Obama he will not offer advice on tobacco issues.

A transition advisory board member, Mark Gitenstein, was registered until August to lobby on behalf of the U.S. Chamber of Commerce, AT&T Inc. and financial firms such as Ernst & Young LLP and Merrill Lynch & Co. Inc. Gitenstein is working on transition management issues, not specific policies, but has agreed not to deal with topics on which he lobbied.

Overall, the people Obama is relying on to build his administration have represented unions; energy, environmental groups, insurance, and drug companies; Wal-Mart; the National Association for the Advancement of Colored People; and the lobbying arm of the Washington-based Center for American Progress. The center is a think tank headed by John Podesta, former chief of staff to Bill Clinton and now co-chairman of Obama's transition.

Also prominent on Obama's new team are his big-money fundraisers. At least 18 of Obama's major financial backers are helping him create his administration. They collected at least $50,000 each from friends and associates to help pay for the most expensive presidential campaign in history.

A few raised at least $500,000 each. They include two former officials from the Federal Communications Commission: Donald Gips, a one-time aide to Vice President Al Gore who is co-chairman of Obama's teams reviewing government agencies; and Julius Genachowski, who was an executive at Barry Diller's IAC/InterActiveCorp, when the Internet giant owned Ticketmaster and Home Shopping Network. Genachowski is working on technology and government reform policy for the new administration.

A former Justice Department official advising Obama on the department, Thomas Perrelli, raised at least $500,000 for Obama. Perrelli is managing partner of a Washington law firm, Jenner & Block LLP. He lobbied pro bono in 2002 on behalf of victims of the 1998 Africa embassy bombings. His firm's law clients have included the mortgage company Fannie Mae, General Motors and the husband of Terri Schiavo, the brain-damaged woman at the center of a bitter right-to-die battle.

Perrelli, a copyright expert, has represented Hollywood studios and the music industry cracking down on Internet piracy _ a lingering problem facing the department.

This is how Washington works: People work for the government or seek to influence it, and often pass from one role to the other through what is known as "the revolving door." Policy experts routinely use their expertise to influence the government.

Gary Andres, a lobbyist who was a White House aide in the first Bush administration, said it is unrealistic to cut out lobbyists when recruiting policy experts for a new administration.

"A lot of the people you're going to draw upon, if they're not in government, are involved in lobbying," he said.

Despite Obama's efforts to insulate his new administration from what might be tainted advice, lobbyists' involvement in the new government warrants close scrutiny, said Sheila Krumholz, executive director of the Center for Responsive Politics, a nonpartisan institute that studies the influence business.

"They are taking a risk by taking these people on board," Krumholz said. "If they're viewed as being in the pocket of industry, that is not going to be beneficial to this administration that is trying so hard to claim a new mantle."

A former State Department official, Tom Donilon, is helping Obama on foreign policy. Donilon worked as a registered lobbyist at Fannie Mae from 1999 until 2005, when the current mortgage crisis was quietly brewing. Donilon was part of the team reporting more than $40 million in lobbying activity during that period.

Another Obama adviser, Michael Strautmanis, worked for trial lawyers as recently as 2005 on issues related to medical malpractice and health care liability, and in 2004 on asbestos issues. Strautmanis is a former aide to Obama in the Senate. He heads public liaison and intergovernmental affairs at Obama's transition office.

In addition to the 12-month restriction, Obama bars lobbyists from making donations to cover transition costs and will restrict access to his administration for transition team members who later take up lobbying. Podesta has called the self-imposed limits "the strictest, most far-reaching ethics rules of any transition team in history."

Obama's aides said they are focused on each adviser's policy credentials. But watchdog advocates say vigilance will be needed. "The question always is, with that kind of money, what is the influence and the interest they bring?" said Bill Buzenberg, executive director of the nonprofit Center for Public Integrity.

There are roughly 15,000 registered lobbyists in Washington. But there are probably six times that many who meet a common-sense definition of lobbyist, said James Thurber, who teaches lobbying at American University. For example, Obama health policy adviser and likely health secretary, former Sen. Tom Daschle, has worked for the lobbying and law firm Alston & Bird, but does not register personally because he advises clients rather than directly contacting government officials.

That is a technicality based on the narrow "lobbyist" definition, Thurber said.

The transition recognized potential conflicts could arise even beyond the strict legal definition of lobbying. Thus, Pamela Gilbert, who is working on consumer product safety issues for Obama, has withdrawn on an issue that was part of her law practice rather than her lobbyist work: federal pre-emption of state laws.

"If someone is paid to try to change public policy or stop something, that's a lobbyist," said Thurber, adding that lobbyists are a constant. "I don't think you can govern without them. The important thing is to be honest and transparent."