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FROM THIS EPISODE

After their first face-to-face confrontation on Friday night, John McCain and Barack Obama are both claiming credit for improving the Wall Street rescue.  We hear from them. Also, Congress begins debate on the rescue plan, and a special prosecutor will investigate possible crimes by former Attorney General Alberto Gonzalez and White House officials, including Karl Rove.


Photo: Emmanuel Dunand/AFP/Getty Images

Producers:
Katie Cooper
Karen Radziner
Christian Bordal
Andrea Brody

Making News House Defeats Massive Rescue Plan 5 MIN, 59 SEC

Although both parties were still divided today as the vote began, Republican defections sent the financial bailout bill down to defeat in the House. Tim Grieve is Congressional Bureau Chief for Politico.com.

Guests:
Tim Grieve, Congressional Bureau Chief, Politico.com

The Predator State

James Galbraith

Reporter's Notebook Investigation into US Attorneys' Firing to Continue 7 MIN, 36 SEC

The Justice Department's Inspector General issued a scathing report today on the political motivations for the firing of US attorneys for political reasons and the involvement of White House advisors, including Karl Rove. Although it does not recommend criminal charges, Attorney General Michael Mukasey appointed Acting US Attorney Nora Dannehy as a special prosecutor to see if criminal charges should be brought against his predecessor, Alberto Gonzales. Eric Lichtblau has followed the story from the beginning for the New York Times.

Guests:
Eric Lichtblau, Investigative Reporter, New York Times

Main Topic The Rescue Plan and Its Possible Consequences 35 MIN, 26 SEC

After a weekend of political drama and late-night negotiations, Congress took up the latest version of the Wall Street rescue plan. With a price tag of $700 billion, nobody said they liked it, but supporters insisted the American people would be worse off without it. Opponents said it would never work. We hear the latest about what's in the plan and why is has just filed to pass a vote in the House. After their first debate, with no knockouts and no big mistakes, John McCain and Barack Obama are both claiming they made the bailout better. We hear from them. 

Guests:
James Politi, US Economics and Trade Correspondent, Financial Times
James Barth, former Chief Economist, Office of Thrift Supervision
James Galbraith, University of Texas, Austin
Mark Barabak, Political Reporter, Los Angeles Times
Jennifer Rubin, Washington Post (@JRubinBlogger)
Tom Schaller, Professor of Political Science, University of Maryland

Whistling Past Dixie

Thomas Schaller

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