Geithner: I should have known about bonus problems  —  (CNN) — Treasury Secretary Timothy Geithner confirmed Thursday that the department did talk to Sen. Chris Dodd about a clause he put forth in the stimulus legislation that would have strictly limited executive bonuses.

AUDIO: Arnold on Obama: ‘Beautiful’  —  LOS ANGELES - “When have you ever seen a president be that out there?”  —  That was a mesmerized Arnold Schwarzenegger after Obama's town hall meeting.  —  “I've never seen that,” Schwarzenegger said to a couple reporters as he and his wife, Maria Shriver, tried to make an exit.

Palin rejecting federal stimulus money  —  From Sean Cockerham in Juneau -  —  Gov. Sarah Palin just told reporters that she's accepting only 55 percent of the federal economic stimulus money being offered to Alaska.  The governor said that she will accept only about $514 million of the $930 million headed to the state.

Gordon Brown is frustrated by ‘Psycho’ in No 10  —  While not exactly a film buff, Gordon Brown was touched when Barack Obama gave him a set of 25 classic American movies - including Psycho, starring Anthony Perkins on his recent visit to Washington.  —  Alas, when the PM settled …

Carol Baum: Welfare CEOs are Just Like John Galt  —  Bloomberg columnist Carol Baum puts together a baffling analogy: … Atlas Shrugged is a stupid book, Ayn Rand is a stupid woman, and John Galt's ideas are stupid.  That said, none of them are nearly this stupid.

Who Doesn't Love The JournoList?  —  How great is the JournoList, that off-the-record electronic salon where liberal journalists and policy gurus can exchange views, and which is emphatically *not* an echo chamber?  —  Let's see - Matt Yglesias of JL on the AIG furor - it's a distraction:

IDF in Gaza: Killing civilians, vandalism, and lax rules of engagement  —  During Operation Cast Lead, Israeli forces killed Palestinian civilians under permissive rules of engagement and intentionally destroyed their property, say soldiers who fought in the offensive.

Inside AIG-FP, Feeling the Public's Wrath  —  A solitary flat-screen television hangs on the back wall of the trading floor inside the headquarters of AIG Financial Products here.  Wednesday afternoon, the most-talked-about employees in America huddled around it to find out just how despised they have become.

Why President Obama skipped ‘Meet the Press’  —  Moderator David Gregory, center, of “Meet the Press,” hasn't lived up to the Tim Russert legacy.  (Getty Images)  —  THE SHOW “Meet the Press,” hosted by David Gregory.  —  REASON TO WATCH That is the question, and one President Barack …

'07 U.S. Births Break Baby Boom Record  —  More babies were born in the United States in 2007 than in any other year in American history, according to preliminary data reported Wednesday by the National Center for Health Statistics.  —  The 4,317,000 births in 2007 just edged out the figure for 1957, at the height of the baby boom.

Obamas Prepare to Plant White House Vegetable Garden  —  WASHINGTON — On Friday, Michelle Obama will begin digging up a patch of White House lawn to plant a vegetable garden, the first since Eleanor Roosevelt's victory garden in World War II.  There will be no beets (the president doesn't like them) but arugula will make the cut.

BIGGER THAN THE BOTH OF US  —  There's no end of puffed up outrage and opportunistic posturing over the on-going revelation of the AIG bonus scandal.  But some line has been crossed.  And it's worth thinking really clearly about just what that line is.  —  What is so damaging …

CNBC's Kudlow lights dollar bill on fire, says “This is the value of our money”  —  Send in the G-Men.  This guy is defacing federal money  —  I was thinking the same thing, isn't it a crime to destroy US currency?  I thought it was just as bad as defacing the US Flag, which we know the republicans would never...

Mexico Retaliates  —  When the U.S. closed the southern border to Mexican trucking last week — in violation of the North American Free Trade Agreement — Mexico promised to retaliate.  Yesterday it did, releasing a list of 89 U.S. products that will face new tariffs of 10% to 45%.

13 firms receiving federal bailout owe back taxes  —  WASHINGTON (AP) — At least 13 firms receiving billions of dollars in bailout money owe a total of more than $220 million in unpaid federal taxes, a key lawmaker said Thursday.  —  Rep. John Lewis, chairman of a House subcommittee overseeing …

Rice: 'No One Was Arguing That Saddam Hussein Somehow Had Something To Do With 9/11′  —  On PBS's Charlie Rose yesterday — six years after the eve of the Iraq invasion — former secretary of state Condoleezza Rice discussed the decision to invade Iraq.

Audio comedy gold: Bozo the Vice President is looking out for you  —  The gaffetastic gift that keeps on giving.  —  In trying times, we can always count on Bozo the Vice President to provide some welcome comic relief.  Joe Biden was The Newshour on PBS last night in full swagger …

Iranian blogger who insulted leader ‘dies in jail’  —  A young Iranian blogger jailed in Tehran's notorious Evin prison for insulting the country's supreme leader, Ayatollah Ali Khamenei, has died, his lawyer said today.  —  Mohammad Ali Dadkhah said that although there is not yet …

Obama struggles as communicator  —  Of all the pitfalls Barack Obama might face in the presidency, here is one not many people predicted: He is struggling as a public communicator.  —  The sluggish and unsteady response to the uproar over AIG bonuses highlights a larger problem of his White House …

Obama Seeks to Lower Expectations  —  LOS ANGELES — President Barack Obama sought to lower the expectations of his adoring fans, saying it will take time to accomplish their goals, and he warned an audience anxious over cuts to schools that it will cost money to pay for high-quality education.

Networks reluctantly shuffle for Obama speech  —  Networks are pulling their shows over to the side of the road to make room for the lights and sirens of president Barack Obama's latest primetime address.  —  Obama will take to the air next Tuesday evening on four broadcast networks and bump …

No Return to Normal  —  Why the economic crisis, and its solution,  —  are bigger than you think.  —  B arack Obama's presidency began in hope and goodwill, but its test will be its success or failure on the economics.  Did the president and his team correctly diagnose the problem?