‘Scare tactic’ — Obama slams Muslim portrayal  —  The Obama campaign is condemning as “tasteless and offensive” a New Yorker magazine cover that depicts Sen. Barack Obama (D-Ill.) in a turban, fist-bumping his gun-slinging wife.  —  An American flag burns in their fireplace.  —  The New Yorker says it's satire.

Treasury Acts to Save Mortgage Giants  —  WASHINGTON — Alarmed by the sharply eroding confidence in the nation's two largest mortgage finance companies, the Bush administration on Sunday asked Congress to approve a sweeping rescue package that would give officials the power to inject billions …

Mark Sanford Draws A Blank On McCain/Bush Economics  —  The most painful clip from the Sunday morning shows: top McCain VP prospect Mark Sanford “drawing a blank” (in his own words) on live TV when asked to name a major economic policy that President Bush and John McCain disagree on.  —  The transcript:

MAKING IT  —  How Chicago shaped Obama.  —  Barack Obama on the South Side during his first campaign, for the State Senate.  An outsider in Chicago's system, he was meticulous about constructing his own political identity and coalition.  Photograph by Marc PoKempner.  —  KEYWORDS

Gallup Daily: Presidential Preferences Remain in “the Zone”  —  Presidential race has been highly stable for the last two weeks  —  PRINCETON, NJ — Barack Obama wins the support of 46% of national registered voters interviewed in Gallup Poll Daily tracking from July 10-12, while John McCain is not far behind with 43%.

CNN exclusive: Obama on foreign policy  —  Editor's note: Fareed Zakaria is a pre-eminent foreign affairs analyst and hosts “Fareed Zakaria: GPS” on CNN at 1 p.m. ET Sunday.  —  (CNN) — Sen. Barack Obama discussed his vision for the world in a wide-ranging foreign policy discussion with CNN's Fareed Zakaria.

Nine US soldiers killed in Afghanistan as Taliban attacks base  —  Taliban insurgents killed nine US troops when they attempted to overrun an American base as bloody fighting broke out in several parts of Afghanistan today.  —  Nato reported that the small American Combat Outpost in Dara …

The Shame of Postville, Iowa  —  Anyone who has doubts that this country is abusing and terrorizing undocumented immigrant workers should read an essay by Erik Camayd-Freixas, a professor and Spanish-language court interpreter who witnessed the aftermath of a huge immigration workplace raid at a meatpacking plant in Iowa.

News Blackout — NYT Ignores Momentous Pro-Jewish Court Case Win in France  —  French media loses big court case proving Palestinian propaganda false, New York Times ignores shocking story... Why?  —  France TV 2 has lost a major court case in France that makes the lie to a major piece of Palestinian propaganda.