Letterman Top Ten: Palin has a “slutty flight attendant look”; Audio: “Pathetic,” says Palin  —  I bet Ashley Herzog's bummed he didn't pull this a day earlier, huh?  It would have made a sweet addition to her latest column.  The best part: Letterman wondering why Slutty Flight Attendant didn't stop by the show.

Deeds Surges to Stunning Win in Va.  —  Running with the least money and fewest ties to vote-rich Northern Virginia, State Sen. R. Creigh Deeds has won the three-way Democratic primary for governor, paving the way for a rematch with Republican Bob McDonnell in the fall.

Biden pushes envelope with praise  —  Vice President Joe Biden offered an exuberant endorsement of Supreme Court nominee Sonia Sotomayor at a White House event Tuesday - but some legal analysts believe he went too far by suggesting she would rule in favor of police if confirmed.

Palau to Take Chinese Guantánamo Detainees  —  WASHINGTON — The United States has won an agreement to transfer up to 17 Chinese Muslims from the prison camp at Guantánamo Bay, Cuba, to Palau, a sparsely populated archipelago in the North Pacific, according to a statement released …

Governor Palin?  We Can Still Hear You Up Here...  There were several things that jumped out at Alaskans from the Hannity/Palin interview that taped on Sunday and aired the following night on Fox.  First was the gooey missive on how great it is that Alaskans own the resources of the state …

Salaries Safe, Bonuses Hit  —  Obama Drops Tough Plan on Bank Compensation; 10 Lenders Repay Bailout Cash  —  The Obama administration is dropping its plan to cap salaries at firms receiving government bailout money, leaving them subject to congressionally imposed limits on bonuses, according to people familiar with the matter.

Court clears Chrysler sale, without dissent  —  UPDATE 8:29 p.m. Word was circulating in Washington and New York Tuesday night that the Chrysler deal could be wrapped up as early as Wednesday morning, with the electronic transfer of funds to pay Chrysler for most of its existing assets.

Rampaging militants kill 11, injure 50 in Peshawar hotel  —  PESHAWAR: A huge explosion ripped through the sole five-star hotel of the Frontier province's metropolis on Tuesday evening, killing 11 people.  A foreign national was among the dead.  —  More than 50 people, including foreigners, were injured.

For U.S., a Sea of Perilous Red Ink, Years in the Making  —  There are two basic truths about the enormous deficits that the federal government will run in the coming years.  —  The first is that President Obama's agenda, ambitious as it may be, is responsible for only a sliver of the deficits …

Let it come down … Possibly the baddest few lines of script and stage direction in Shakespeare's plays, and here I've gone and appropriated it for a boring post on President Obama's looming budget deficits.  * This is reason no. 502 why the internet sucks.

Blue Dogs Backsliding On Anti-Health Care Reform Backsliding  —  Rep. Jane Harman (D-Calif.) is “unwavering” in her opposition to a Blue Dog Coalition health care position issued late last week, she said Tuesday.  The Blue Dogs, a caucus of conservative Democrats, issued a set of principles opposing …

Democrats Nearing Consensus on Health Plan  —  WASHINGTON — A broad consensus on the contours of legislation to remake the nation's health care system appeared to be developing among Democratic leaders on Tuesday as three House committee chairmen outlined a bill generally similar to one being written in the Senate.

Terror Suspect Ghailani Brought From Guantanamo Bay to U.S. for Trial  —  The Obama administration pressed ahead yesterday with its plans to close the military prison at Guantanamo Bay, flying a detainee to New York to face federal trial despite bipartisan opposition in Congress to bringing …

Rep. Mark Kirk (R-IL): I Told China Not To Believe U.S. Budget Numbers  —  Rep. Mark Kirk (R-IL) now appears to have taken a bold step in the debate over the budget deficit: Openly telling a foreign government not to trust the administration in Washington.  —  The Straits Times reports …

Feeling Slighted, Rich Patron Led Albany Revolt  —  ALBANY — In early spring, Tom Golisano went to Albany from his home in Rochester to meet with Malcolm A. Smith, then the Senate majority leader.  —  Mr. Golisano, a billionaire business executive, had spent heavily to help Mr. Smith …

Budget woes have Oakland mulling bankruptcy  —  Even though city officials would prefer to avoid a public conversation, behind closed doors the Oakland City Council has discussed filing for bankruptcy protection in the midst of a $100 million budget deficit.