Obama May Seek Republican for Cabinet  —  WASHINGTON — President Obama and his advisers have approached Senator Judd Gregg, Republican of New Hampshire, about becoming commerce secretary, a step that could open the way to significant shift in the balance of power in Congress.

Health Care Now  —  The whole world is in recession.  But the United States is the only wealthy country in which the economic catastrophe will also be a health care catastrophe — in which millions of people will lose their health insurance along with their jobs, and therefore lose access to essential care.

U.S. Eyes Two-Part Bailout for Banks  —  The nation's top economic officials are discussing a new way to stabilize the financial system by buying a portion of banks' bad assets and offering guarantees against future losses on some of the remainder, in an effort to help banks while trying to mitigate the cost to taxpayers.

Bush lawyer directs Rove not to talk to Congress—once again  —  Just four days before he left office, President Bush instructed former White House aide Karl Rove to refuse to cooperate with future congressional inquiries into alleged misconduct during his administration.

Professor who slammed Clinton will be Obama aide  —  WASHINGTON (AP) — Samantha Power, the Harvard University professor who earned notoriety for calling Hillary Rodham Clinton a “monster” while working to elect Barack Obama president, will take a senior foreign policy job at the White House, The Associated Press has learned.

Steep Slide in U.S. Economy, but Not as Dire as Forecast  —  The United States economy shrank at its fastest pace in a quarter century from October through December, the government reported on Friday, in the broadest accounting yet of the toll of the credit crisis.

Five file for RNC chairman post  —  Five candidates filed to run for chairman of the Republican National Committee at the body's winter meeting Thursday in Washington, while a sixth chose not to after a controversy slowed his campaign.  —  With just hours left before the 168 voting members cast …

On His Way Out, Blagojevich Makes a Day of It  —  CHICAGO — As the nine-seat airplane raced through the skies on Thursday somewhere between Springfield and here, an onboard telephone began to ring.  —  Rod R. Blagojevich, the soon-to-be ex-governor of Illinois, instructed his aides not to answer.

Time to put middle class front and center  —  For years, we had a White House that failed to put the middle class front and center in its economic policies.  —  President Obama has made it clear that is going to change.  And it's why he has asked me to lead a task force on the middle class.

Cleaner and Faster  —  Throughout 2008, Larry Summers, the Harvard economist, built the case for a big but surgical stimulus package.  Summers warned that a “poorly provided fiscal stimulus can have worse side effects than the disease that is to be cured.”  So his proposal had three clear guidelines.

Obama Distorts America's Stance on Muslims  —  Every new president flatters himself that he, kinder and gentler, is beginning the world anew.  Yet, when Barack Obama in his inaugural address reached out to Muslims by saying “to the Muslim world, we seek a new way forward …

Option ARMs See Rising Defaults  —  Woes Mount in $750 Billion Home-Loan Market; Analysts' Dim Views  —  Defaults on a popular form of mortgage that gave home buyers a choice of how much to pay each month are rising and could rival those on subprime loans, potentially causing more trouble for investors and banks.

Border War  —  Geithner-Summers psychodrama, Round 1.  —  Larry Summers has a cutting sense of humor.  For example, when he thinks a proposal calls for government heavy-handedness, he will dismiss it as “Putinesque,” a reference to the statist Russian leader.

Proof that all debate is now over  —  Imagine that.  The most expensive social experiment in American history — one that will cost taxpayers more than both the Iraq and Afghanistan wars combined — was allotted less than a single day of debate in Congress.

After Jabs at Cheney, Biden Pursues an Activist Role  —  Vice President Follows Initial Gaffes by Diving Into Wide Range of Issues; Drawing Contrasts With Predecessor  —  WASHINGTON — Vice President Joe Biden, in a bid to become an influential second-in-command, is striving to carve out meaty roles for himself quickly.

Senate Passes Health Insurance Bill for Children  —  The Senate overwhelmingly approved legislation yesterday to provide health insurance to 11 million low-income children, a bill that would for the first time spend federal money to cover children and pregnant women who are legal immigrants.

Leaders of Turkey and Israel Clash at Davos Panel  —  DAVOS, Switzerland — Prime Minister Recep Tayyip Erdogan of Turkey walked off the stage after an angry exchange with the Israeli president, Shimon Peres, during a panel discussion on Gaza at the World Economic Forum on Thursday, vowing never to return to the annual gathering.

North Korea tears up agreements  —  Communist North Korea has said it is scrapping all military and political agreements signed with the South, accusing Seoul of hostile intent.  —  South Korea's government had pushed relations “to the brink of a war”, the North's cross-border relations body said on state media.