from CNN.com
BUSH VOWS TO WORK WITH DEMOCRATS
WASHINGTON -- President Bush gave a preview of his second term on Thursday, telling reporters that, having cut his "political eye teeth," he was eager to work with Democrats to begin carrying out the changes he has been promising.
"I will meet with both Republican and Democratic leaders," he said at a news conference. "They will see I'm genuine about working toward some of these important issues."
Bush said that, at the end of his first term, he was "now more seasoned to Washington."
"I've cut my political eye teeth. I'm aware of what can happen in this town. Nevertheless, having said that, I'm fully prepared to work with both Republican, Democratic leadership to advance an agenda that I think makes a big difference to the country," Bush said.
Bush said that agenda includes a plan to "defeat the terrorists," improve education, change medical malpractice laws, continue his tax cuts and streamline the "complicated and outdated tax code."
He cited his plans to change the nation's Social Security program as particularly difficult.
"Otherwise, it would have already been done. But it's necessary to confront it. I'm looking forward to working with Democrats on it. I'm not sure we can get it done without Democratic participation."
Speaking after a particularly divisive, bitterly fought campaign, Bush said, "I'll reach out to everyone who shares our goals," and added that he was "eager to start the work ahead."
Asked whether he would select a consensus candidate if there is an opening on the Supreme Court, Bush made no mention of Chief Justice William Rehnquist's ill health and speculation that he may soon leave the court. "There is no vacancy on the Supreme Court. I'll deal with a vacancy when there is one."
He reiterated that, whenever an opening does come, he would select someone "who knows the difference between personal opinion and strict interpretation of the law."
He urged the questioner to look at his record of appointments, saying it shows he selects "well-qualified people who know the law, who represent a judicial temperament that I agree with and who are qualified to hold the bench."
Bush defended his decision to invade Iraq, and predicted 125,000 Iraqi troops would be trained by elections that are scheduled for January.
He vowed to work closely with Prime Minister Ayad Allawi to overcome insurgents in strongholds in cities such as Falluja.
"I think there's a recognition that some of these people must be defeated," Bush said.
Asked whether the support he received during the campaign from religious groups could alienate those who do not share his faith, Bush said that he had no plans to move America toward a theocracy.
"I'll be your president, regardless of your faith," he said. "No president should try to impose religion on our society."
He added, "If you're a Jew, a Christian, a Muslim, you're equally American. That's such a wonderful aspect of our society."
Bush said his decisive victory -- as opposed to the narrow win he eked out four years ago -- would not necessarily free him from constraints. "I don't think you'll let me be too free," he told the journalists. "There's accountability and there's constraints on the presidency, as there should be."
Still, Bush said he would move ahead forcefully to carry out his agenda.
"When you win, there's a feeling that the people have spoken, and embraced your point of view, and that's what I intend to tell the Congress."
The Harvard Business School graduate likened his win to having money in the bank. "I earned capital in the campaign, political capital, and now I intend to spend it. It's my style."
Bush defended his tax cuts that favor the wealthy, contending that they have helped boost the economy for everyone. "As the economy grows, there will be more revenues coming in to the Treasury," he said.
A number of economists have said Bush's tax cuts simply push the nation further into debt, do little or nothing to boost economic growth and make it more difficult for lawmakers to to pay for social programs.
But Bush said that, as a result of his policy, revenues are exceeding projections. "My point is, with good economic policy that encourages economic growth, the revenue streams begin to increase."
Despite its record deficits, the United States will also continue its efforts to help alleviate poverty and disease, he said.
During the news conference, Bush appeared at ease, joking occasionally with members of the press corps, and calling them by name or nicknames he has given to a number of them. In response to a question, he spoke openly about his relationship during the election with his father, the former president whose own quest for a second term 12 years ago failed.
Bush said his father had been sitting upstairs in the White House on Election Night, which dragged on into the next morning. At 3:30 a.m. Wednesday, "I finally said, 'Go to bed,'" Bush recalled.
Later in the morning, with the outcome still uncertain, the two men met in the Oval Office "and we had a good talk." The elder Bush then departed for Houston.
"I never got to see him face-to-face, to watch his, I guess, pride in his tired eyes as his son got a second term," Bush said.
Though not in person, the two did talk after Bush's victory was announced. "He was relieved. I told him to take a nap. I was worried about him staying up so late."
Bush said his father's 1992 loss to Bill Clinton had been "a disappointment," but one that taught him a lesson: "Life moves on. Life is bigger than just politics."
BUSH SIGNS $800 BILLION DEBT LIMIT HIKE
WASHINGTON (AP) -- President Bush signed legislation on Friday raising the government's debt limit by $800 billion, a measure forged by the same budget pressures that squeezed the spending bill.
Congress sent the measure to President Bush on Thursday, spotlighting how the budget has lurched out of control in recent years and how hard it will be to afford future initiatives.
The House approved the measure by a near party-line 208-204 vote as White House and bipartisan congressional bargainers moved to the verge of agreement on a year-end spending package expected to total $388 billion. Negotiators said just a handful of issues remained unresolved, and a package might be ready for votes by late Friday.
With the government facing imminent default because it has depleted its authority to borrow money, the debt limit bill would pump up the federal borrowing cap to $8.18 trillion. That is 70 percent the size of the entire U.S. economy, and more than $2.4 trillion higher than the debt Bush inherited upon taking office in 2001.
"The president commends the Congress for passing the debt limit increase," the White House said in a written statement that did not mention the magnitude of borrowing involved or its causes. "Passage of this legislation was important to protect the full faith and credit of the United States."
In an effort to reassure the financial markets that federal borrowing would be unimpeded, the statement said Bush would sign the legislation by next Monday.
Republicans said they were being responsible because the increased borrowing will let the government pay Social Security benefits and its other bills. They blamed Democratic spending for the problem, and accused them of playing politics by opposing the measure.
"Let's not use our elderly as political pawns in trade for a seven-second sound bite back home," said Rep. Kevin Brady, R-Texas.
Democrats said the red ink was due to GOP tax cuts and their refusal to require budget savings to pay for tax reductions or spending increases. They accused Republicans of passing the buck to future generations.
"I want someone to explain to me how it can be moral for a father to stick his kids with his bills," said Rep. Gene Taylor, D-Mississippi.
Lawmakers hope to end their postelection session, which began Tuesday, by passing both the spending and debt-limit measures and possibly an intelligence agency overhaul by this weekend.
Negotiators spent Thursday clearing away final disputes on the massive spending bill. They agreed to $577 million, the same as last year, to continue developing a nuclear waste storage site at Yucca Mountain in Nevada, one lawmaker said.
Remaining problems included an effort by some legislators to curb Bush's plan to contract out federal jobs to private businesses, as well as a plan to pay for some of the bill's increases by cutting unspent defense funds.
The bill would grant increases to such priorities as veterans' health care and the FBI and will probably contain thousands of home-district projects.
Hewing to Bush's demands to curb domestic spending, it also would cut grants for local water improvements and research supported by the National Science Foundation, while holding the federal subsidy for Amtrak to $1.2 billion, the same as this year.
Aid to help refugees in Sudan's war-torn Darfur province would be $404 million, including $93 million to be transferred from Iraq reconstruction money that is being spent at a snail's pace.
Spending-bill bargainers also sorted through a stack of policy changes that lawmakers and lobbyists were trying to shove into one of the last measures Congress will approve this year.
Congressional aides said they believed a milk subsidy extension sought by Midwesterners and an effort to repeal required country-of-origin labels for meat would not make the final bill. Also thwarted was a drive to ease rules designed to protect endangered species from pesticides, the aides said.
The spending measure, covering the government budget year that started Oct. 1, is an amalgamation of nine separate bills financing all federal agencies except the Pentagon and the Homeland Security Department.
The GOP-led Senate approved the debt limit increase on Wednesday, 52-44, almost strictly along party lines.
The fight over raising the debt limit has become a staple of the Bush years, which will have now seen three such increases and two consecutive record annual deficits.
The government reached the current $7.38 trillion cap last month, paying its bills since with investments from a civil service retirement account, which it plans to repay. Even so, Republican leaders postponed the showdown vote until after the election, realizing Democrats would use the issue to highlight the red ink of the Bush years.
KERRY WON'T SHUT DOOR ON 2008
WASHINGTON (AP) -- Sen. John Kerry, who has $45 million left from his record-breaking Democratic campaign, hinted on Tuesday that he may try again for the presidency.
On his first workday back in the Senate since losing his White House bid, Kerry remained far from the spotlight, granting interviews to hometown reporters and joining the depleted corps of Democrats as they elected the party's new Senate leaders.
In his first extensive interview since his November 2 defeat, Kerry was asked by the Fox News affiliate in Boston about running again in 2008 and reminded the questioner that Ohio is still counting votes from 2004.
He then said, "It is so premature to be thinking about something that far down the road. What I've said is I'm not opening any doors, I'm not shutting any doors." Kerry added, "If there's a next time, we'll do a better job. We'll see."
Reflecting on his loss, Kerry said he was not sitting around thinking about it. "You've got to go on," he said. "Do I find it some mark of failure or distress, the answer is no."
The former presidential nominee described himself as a "fighter," and added, "I can envision a lot of years of fight ahead of me."
In an interview with WCVB-TV, Kerry said, "Fifty-thousand votes -- we'd be in a different place, having a different conversation," a reference to Ohio, which decided the race.
The Democrats have no clear front-runner for the 2008 nomination. Kerry has a distinct financial advantage over any rival based on his fund raising.
Kerry had roughly $45 million left in his primary campaign fund as of mid-October and could use that as seed money for another presidential bid. In addition, he had about $7 million on hand in a legal and accounting compliance fund that he could use for legal expenses in a 2008 campaign.
Because Kerry accepted full public financing for the general election phase of this year's race, he will have to give any of that money that remains back to the government.
During his day in the Senate, Kerry's colleagues thanked him, congratulated him and wished him well.
"Every time his name was mentioned, there was enthusiastic applause. Literally, every time his name was mentioned," said Sen. Debbie Stabenow, D-Michigan.
Democrats met in a closed-door session to choose their leadership team for next year in what is certain to be an uphill struggle for the party. Not only did Democrats lose their second straight presidential election on November 2, but the Republicans increased their numbers in the Senate and the House.
In January, the GOP will control 55 Senate seats to 44 for the Democrats with one Democratic-leaning independent.
Sen. Joe Lieberman, D-Connecticut, a former vice presidential candidate who lost in 2000 and a one-time presidential aspirant who fell short in the 2004 primaries, spoke from experience in offering Kerry words of support.
"He has a lot to be proud of, and I hope he'll find what I did -- that it was great to have the U.S. Senate to come back to," Lieberman said.
Senators predicted that Kerry would find an expanded role as he eased back into his old job.
"Obviously, he brings some experience, and people are interested in what he has to say," said Sen. Ben Nelson, D-Nebraska, pointing out that nearly half the country, if not quite enough to elect him president, voted for Kerry. President Bush received 60.5 million votes to Kerry's 57.1 million.
Kerry didn't make any remarks on the Senate's pending legislation nor did he deliver any speeches at the Democrats' meetings. He met privately with Sen. Tom Daschle, D-South Dakota, the former Minority leader who, like Kerry, lost on November 2. Kerry also thanked other Democrats one-by-one for their support.
Kerry got a two-minute standing ovation from his staff, whom he thanked for giving "your heart, your soul and even your vacation time," one aide said.
The day belonged to another Democrat, Sen. Harry Reid of Nevada, the party's newly elected leader. Questioned on a range of issues as he assumed the job, Reid predicted that Kerry will find a role, pointing to the four-term senator's past work on banking and foreign policy issues.
"Senator Kerry is not a shrinking violet," Reid said. "We are looking for John Kerry to find what he wants to do. We are sorry that he's not in the White House, but we're glad that he's back on Capitol Hill."
Kerry also met with his policy staff to talk about health care, energy and other legislation that might build on themes from his campaign.
Not since George McGovern lost a bid for the presidency in 1972 has a senator returned to the Senate as a defeated presidential candidate, according to the Senate Historical Office.
DEMOCRATS DISCUSS HOW TO RESET AGENDA
By DAVID HAMMER, Associated Press Writer
LITTLE ROCK, Ark. -- In the shadow of Bill Clinton and his gleaming new presidential library, leaders of the struggling Democratic Party held informal discussions this week of how to come back from their devastating Election Day losses.
Big decisions loom, such as who will replace outgoing Chairman Terry McAuliffe and on a basic ideological direction. According to one senior Democrat, Lottie Shackelford, the party's vice chairman, party leaders decided to "pull back" and reflect.
"Most of the people with votes at our executive committee meeting in Orlando next month haven't even had a chance to talk about it," she said. "That's why there seems to be more of a consensus now that people need to pull back a bit and start to reflect a little on where we need to go, then start to think about who should be leading us."
Former Clinton adviser Paul Begala said the party should take his old boss' lead.
"The direction is something the party has to debate," he said. "We need to find out, are we simply a bunch of interest groups or a party with heart that provides opportunity in every community? If we return to that, we'll be all right."
Iowa Gov. Tom Vilsack is widely considered the front-runner to replace McAuliffe as party chairman, but that hasn't ended speculation about other possible candidates.
Failed presidential candidate and former Vermont Gov. Howard Dean was in Little Rock Wednesday night asking people to support him.
Alexis Herman, deputy chairman of the party in Clinton's first term and labor secretary in his second, told The Associated Press on Thursday that she would consider it an honor to lead the party. Former Dallas Mayor Ron Kirk and former Denver Mayor Wellington Webb are other popular black candidates.
After the talking, Democrats partied.
Most of the party's biggest names headed to former Clinton campaign adviser James Carville's party at the old Arkansas Gazette Building, which served as the headquarters of Clinton's 1992 presidential campaign. Some partied at Doe's Eat Place, an old Democratic hangout.
Former White House Chief of Staff Leon Panetta said he tried to dry off from a bone-chilling rain at the library opening over drinks with Carville, Democratic Leadership Council founder Al Frohm and former Clinton advisers Begala and Mike McCurry.
"There was a lot of talk, and I think it was all the same theme," Panetta said Friday after flying back to California. "It was clearly that what Bill Clinton did in terms of his campaigning and his ability to appeal to a broad cross section of Americans is what Democrats need to learn from."
from Bankrate.com
5 MONEY MISTAKES EVEN SMART PEOPLE MAKE
By Linda Formichelli, Bankrate.com
When it comes to finances, you figure you're pretty sharp. You know how to comparison shop and you contribute regularly to your 401(k) plan.
But there are common mistakes that even money-savvy people can make. If you've ever let your spouse control the finances, put off examining your credit report or bought peanut butter because you had a coupon and your family won't eat it, read on to find out how to banish cash conundrums from your life for good.
Money Mistake No. 1: Minding the pennies and letting the dollars go.
Have you ever driven across town because you wanted to cash in a 50-cent coupon? Do you spend a lot of time searching out bargains and clipping coupons? "It's sweating the small stuff," says Ginita Wall, director of the Women's Institute for Financial Education and an advisory board member for the GE Center for Financial Learning. "You're concentrating so much on clipping coupons and getting bargains, you're forgetting what your overall goals are. Then you'll take the money you saved and just spend it on something else."
Also, being penny-wise can sometimes cost you more money than you save. For example, you may spend more in gas than you save from the coupon if you have to drive across town to redeem it.
Smart Cents Solution: Think of your goal.
It's fine to save cents by clipping coupons and shopping around for bargains, but be sure to keep your bigger goal in mind. Why are you saving the money? Is it for your kid's college education, your vacation fund, a new car? Then take the money you save and put it where it will do the best. For example, many grocery stores now have banks inside. If you save $6 with coupons, walk over to the bank right then and deposit that $6 into your savings account.
Money Mistake No. 2: Being confused by credit reports.
Whenever you seek credit, whether it's a new store card, a car loan or a mortgage, the lender checks your credit report to determine your creditworthiness.
"Credit reports are the most important decision-making tool for creditors," says Catherine Williams, vice president of financial literacy for Money Management International. Even potential employers and landlords can request your report to find out if you'll be a responsible employee or tenant. That's why mistakes on your credit report, whether they're caused by the credit agency or are the result of identity theft or fraud, can make your life miserable.
Smart Cents Solution: Check your report.
"Everybody owes it to themselves to get a copy of their credit report, and you should know that the 2003 FACTA [Fair and Accurate Credit Transaction Act] has a provision to allow consumers one free copy of their credit report per year," says Williams. The credit bureaus will be rolling out the act in phases: Residents of the western United States will be able to get their free annual copy starting on Dec. 1, 2004. The Midwest will have access on March 1 of 2005, the southern United States on June 1, 2005, and finally the East Coast on Sept. 1, 2005.
You should request a copy of your credit report every year and before making any major purchase. The three major credit reporting agencies are TransUnion (800-888-4213), Equifax (800-685-1111) and Experian (888-397-3742).
Each agency differs slightly in the information it carries, so it's a good idea to check all three reports. You may be able to get your report for free if you're unemployed, if you've been denied credit in the last 60 days or if you live in a state that requires the credit agencies to supply you with one free report every year. The cost varies state by state, with $9 the most you will pay. Even if you can't get a free report, it's worth every penny. The reports come with supporting information on how to read the data and how to dispute mistakes.
Money Mistake No. 3: Letting budgeting get you down.
Feeling guilty that you don't have a budget? You're not alone. Many people find budgeting such a drag that they just don't do it, says Wall.
Smart Cents Solution: Do "spot budgeting." Don't feel that you have to budget down to the last penny. If budgeting is a burden, you can do 'spot budgeting' instead, says Wall. "Pick three or four categories where you think you can trim expenses -- such as clothes and entertainment -- and cut down on those. You don't need to worry about every expense."
Money Mistake No. 4: Letting your money leak away.
Money leaks are those little ways you spend money, usually automatically, without even thinking about it, and often without enjoying it. The daily candy bar at work, the mid-morning cappuccino, the $20 bill you hand your kid whenever she asks for money. "That money might be better used for something you would enjoy, such as saving for a cruise," says Wall.
Smart Cents Solution: Write it down.
Keep a little piece of paper and a pencil in your wallet, suggests Wall. Every time you spend money, jot down what you spent it on and how much it cost. "In three weeks, you'll be able to see where the money is going -- like, gee, the kids are tapping me for $20 every time I turn around … so your kids may be your money leak," says Wall. "Time to corral in the kids -- no more 'Bank of Mom and Dad."'
Money Mistake No. 5: Being out of touch.
Letting your partner have total control of the family finances can spell bad news. If you don't know how much money you have, where key financial documents are stored or how to pay bills or taxes, you could be in for a rude surprise should you ever need to handle the finances on your own.
Smart Cents Solution: Hold money meetings.
Both partners should know what's going on financially, even if they divvy up the financial duties, says Wall. Even if your spouse is in charge of taxes and investments, for instance, you need to have a handle on those areas, and you should keep your spouse in the loop on your bill paying and budgeting duties.
That's why Wall suggests holding monthly "money meetings" where you and your spouse fill each other in on how much you're earning, what your goals are, where your money's going, how much you're saving and any problems that may be rearing their heads.
"It doesn't mean to sit down and criticize what the other has done," she says. "The treasurer is reporting to the board of directors about where the family stands."
from Bankrate.com
CHECK 21: NEW LAW ENDS CHECKING TRADITIONS
By Laura Bruce, Bankrate.com
Watch out for bouncing checks. The Check 21 has taken effect and it could mean that your checks will clear much faster than you're used to. If you don't keep your checking account adequately funded, you may find non-sufficient funds fees piling up.
Check 21, shorthand for Check Clearing for the 21st Century Act, went into effect Oct. 28, 2004. It is designed to modernize the way checks are processed. The bank, or the company you sent the check to, can turn the paper check into an electronic image and speed its image and data through the system. In addition to saving the banking industry billions of dollars in transportation and processing costs, it will avoid situations where transportation grinds to a halt due to weather or more dreadful reasons such as Sept. 11.
Some consumer advocates emphasize that checking account customers will no longer have the right to receive their original canceled checks and the float will be reduced, threatening some consumers with a maelstrom of bounced check fees. But people within the banking industry say Check 21 will be evolutionary rather than revolutionary and that many customers will hardly notice the changes.
"The old law said paper checks had to be presented (for payment), but that was written before computers," says John Hall, spokesman for the American Bankers Association. "The whole checking system is being brought from the Pony Express days to the computer age. The current system is clunky, antiquated and it's being made more efficient with cheaper overhead."
Check 21 creates a new negotiable instrument called the substitute check. It is a paper reproduction of the original check and contains an image of the front and back of the original check. It must carry the legend: "This is a copy of your check. You can use it the same way you would use the original check."
If you receive an electronic image of your check and it doesn't have that legend, it's not a substitute check.
When you mail a check to pay your utility bill, the check winds its way through local and regional banks before ending up at your bank, where it's deducted from your checking account. Check 21 allows any business or financial institution along that path to stop, or truncate, the paper check, turn it into an electronic image and destroy the original. A substitute check can be created from the electronic image if an institution along the path says they don't accept electronic images and instead wants to be sent a substitute check.
Check 21 only requires that banks accept substitute checks; they don't have to create substitute checks or exchange electronic images, says ABA's Hall.
"A lot of banks aren't doing it because of cost. It's a laborious change for some banks. It's very expensive and takes time. Check 21 doesn't mandate electronic check processing. Electronic and paper systems will coexist for a number of years to come."
Washington Mutual, one of the 10 biggest banking institutions in the country, is just dipping a little toe in the Check 21 waters.
"WAMU (will) simply accept substitute checks," says Washington Mutual spokeswoman Lisa Margolin-Feher. "We're taking a more deliberate approach. We anticipate that we'll be evaluating where this goes and determine when the next step is appropriate."