GOP headache: The birther issue  —  When lawmakers return home for recess in August, they can expect to hear tough questions from constituents on the economy, health care and government spending.  —  But Republicans are preparing for something else: the birthers.

Bachmann blocks resolution declaring Hawaii to be Obama's birthplace.  —  Today, Rep. Neil Abercrombie (D-HI) introduced a resolution commemorating the 50th anniversary of Hawaii's statehood.  The resolution also proclaims the state as President Obama's birthplace, a point …

The Henry Louis Gates “Teaching Moment”  —  The arrest of Harvard African-American Studies Professor Henry Louis Gates has certainly got everyone talking.  Unfortunately, everyone's talking about the wrong issue.  —  Responding to a 911 call from a woman who observed Gates prying open …

Governor Palin, You're No Hillary Clinton  —  Over at Pollster.com, Brendan Nyhan (whom you should be reading) espouses a fairly common sentiment: that Sarah Palin's favorability numbers, while poor, are not a whole heck of a lot worse than Hillary Clinton's were at the same point in the electoral cycle.

AP IMPACT: Dodd, Conrad told deals were sweetened … WASHINGTON (AP) - Despite their denials, influential Democratic Sens. Kent Conrad and Chris Dodd were told from the start they were getting VIP mortgage discounts from one of the nation's largest lenders, the official who handled their loans has told Congress in secret testimony.

Voinovich slams DeMint and Coburn for GOP downfall; blames ‘the southerners’  —  Too many conservative senators like Jim DeMint (R-S.C.) and Tom Coburn (R-Okla.) are to blame for the GOP's downfall, one of their retiring Republican colleagues complained Monday.

Grassley to vote against Sotomayor confirmation  —  Iowa Sen. Chuck Grassley said today he planned to oppose the confirmation of Judge Sonia Sotomayor to the U.S. Supreme Court when the Senate Judiciary Committee votes on her nomination Tuesday.  —  The vote, which Grassley announced …

Bunning's not running  —  Cantankerous Kentucky Republican Sen. Jim Bunning has officially dropped out of next year's reelection campaign — citing his paltry fundraising efforts.  —  Bunning's office just put out the following statement:  —  I have the same conservative principles in 2009 …

Lou Dobbs and the Birthers: Mainstreaming fringe ideas for ratings eventually will catch up with you  —  Howard Kurtz this weekend was only the latest media critic to pile on Lou Dobbs for his promotion of the Birthers' conspiracy theories on CNN.  Like nearly everyone else …

Analysis: July has been disaster for Obama, Hill Dems  —  The Obama administration, which was flying high a month ago after pushing through a climate change bill in the House, has since been dealt a series of setbacks and is struggling to regain its footing.

Van Hollen: Senate may need to ‘pull the plug’ on talks  —  Senate leaders may need to “pull the plug” on bipartisan negotiations on healthcare reform legislation, Rep. Chris Van Hollen (D-Md.) said Monday.  —  Van Hollen, the head of the Democratic Congressional Campaign Committee (DCCC) …

Birther leader: GOP is with me  —  Orly Taitz, the California attorney-dentist leading the charge of the so-called birthers movement, is boasting on her blog that she's made some high-profile “friends” on Facebook: Republican National Committee Chairman Michael Steele, House Republican Whip Eric Cantor …

ALL THE WAY TO THE WHITE HOUSE.... I suppose it was bound to happen eventually, though I'd hoped it wouldn't.  Robert Gibbs, the White House press secretary, during an official press briefing, was actually asked about the Birther conspiracy nuts.  —  I'm fairly certain it was Bill Press …

Iceland Proves That in a Financial Crisis, Breaking Glass and Trashing Currency is a Good Remedy  —  The headline exaggerates, but not by much.  Back in April, a Vanity Fair story about Iceland's remarkable financial blow up was grist for a Vanity Fair story by Michael Lewis, “Wall Street on the Tundra”.