Bush to tour New Orleans, Gulf Coast By JENNIFER LOVEN, Associated Press Writer

Bush to tour New Orleans, Gulf Coast By JENNIFER LOVEN, Associated Press Writer
20 minutes ago



NEW ORLEANS - President Bush is marking Hurricane Katrina's devastating blow two years ago by celebrating those he says have "dedicated their lives to the renewal of New Orleans" even as he and others are criticized for not doing more to get the city and Gulf Coast back to their former selves.

ADVERTISEMENT

Bush and his wife, Laura, are to spend Wednesday's anniversary remembering the storm in New Orleans and Bay St. Louis, Miss.

It is the president's 15th visit to the Gulf Coast since the massive hurricane obliterated coastal Mississippi, drowned most of the Big Easy and killed 1,600 people in Louisiana and Mississippi when it roared onto land the morning of Aug. 29, 2005 — but only his second stop in these parts since last year's anniversary.

The performance by the president and the federal government in the immediate aftermath of the storm — and some residents' lingering sense of abandonment since — severely dented Bush's image as a take-charge leader.

As on other visits, the president and his team arrived here armed with facts and figures to show how much the Bush administration has done to fulfill the promises the president made two-and-a-half weeks after the hurricane.

"We will do what it takes, we will stay as long as it takes, to help citizens rebuild their communities and their lives," Bush said then from historic Jackson Square in New Orleans' French Quarter. "This great city will rise again."

In fact, there is some good news here. The city's population is rebounding, and a few neighborhoods thrive. New Orleans has recovered much of its economic base and sales tax revenues are approaching normal. The French Quarter survived Katrina, and the music and restaurant scenes are recovering.

But much of New Orleans still looks like a wasteland, with businesses shuttered and houses abandoned. Basic services like schools, libraries, public transportation and childcare are at half their original levels and only two-thirds of the region's licensed hospitals are open. Rental properties are in severely short supply, driving rents for those that are available way up. Crime is rampant and police operate out of trailers.

Along Mississippi's 70-mile shoreline, harsh economic realities also are hampering rebuilding.

Many projects are hamstrung by the soaring costs of construction and insurance, while federal funding has been slow to flow to cities. Other economic indicators are down — such as population, employment and housing supplies.

Bush's Gulf Coast rebuilding chief, Don Powell, noted the federal government has committed a total of $114 billion to the region, $96 billion of which is already disbursed or available to local governments. Most of it has been for disaster relief, not long-term recovery. He implied it is local officials' fault, particularly in Louisiana where the pace has been slower, if money has not reached citizens.

Powell also said the president intends to ask for the approximately $5 billion federal share of the $7.6 billion more needed to strengthen New Orleans' levee system to withstand a 100-year storm and improve the area's drainage system. Though the levees are not yet ready for the next massive storm, they are slated to be strengthened by 2015.

But Powell said other areas — such as infrastructure repair and home rebuilding — are shared responsibilities with local officials or entirely the purview of state and local governments, suggesting that the federal government is absolved when those things don't happen.

The president and Mrs. Bush began this anniversary's visit with dinner Tuesday night with about two dozen politicians, athletes, musicians, developers and others at Dooky Chase, once a gathering place for civil rights leaders now famous for its traditional Creole cooking.

Craig and GOP await voters' judgment By TODD DVORAK, Associated Press Writer

Craig and GOP await voters' judgment By TODD DVORAK, Associated Press Writer
2 hours, 37 minutes ago



BOISE, Idaho - Sen. Larry Craig has apologized to Idaho and now waits — along with officials of both political parties — to see if voters are in any mood to forgive and forget the scandal tied to his arrest in a men's bathroom.

ADVERTISEMENT


Idaho Republicans possess a fiercely independent streak, characterized by a healthy dose of libertarian values and distrust of the federal government and the media. They generally hold deep religious beliefs and conservative social values.

"It all makes it hard sometimes to predict exactly how Idahoans would vote or how Idaho politicians will act on certain issues," said James Weatherby, a professor emeritus at Boise State University who knew Craig when they were students at the University of Idaho.

Craig, 62, a third-term senator up for re-election next year, defended himself Tuesday against a police report alleging he attempted to engage in a homosexual encounter with an undercover officer.

Flanked by his wife, Suzanne, Craig stated three times that he was not gay. He cast his arrest for lewd conduct as unfounded and his subsequent guilty plea to disorderly conduct as an error in judgment spurred by frustration with the state's biggest newspaper prying into his past.

The Idaho Statesman published a lengthy story on Tuesday, a day after the June 11 arrest was first reported, detailing allegations of homosexual behavior by Craig. The senator denied the allegations and contended the paper was engaged in a witch hunt. In a statement, the newspaper said its story spoke for itself.

"While I was not involved in any inappropriate conduct at the Minneapolis airport or anywhere else, I chose to plead guilty to a lesser charge in hopes of making it go away," Craig said. "It's clear, though, that through my actions I have brought a cloud over Idaho. For that, I ask the people of Idaho for their forgiveness."

The Idaho Republican Party took a measured, wait-and-see stance while Democrats remained mum, content to let Republicans sort through the fallout. The GOP's biggest names reminded voters of Craig's tenure in the Senate and his powerful seat on the Appropriations Committee.

"I would encourage all Idahoans to avoid rushing to judgment and making brash statements about a man who has dedicated his life to public service," GOP state party chairman Kirk Sullivan said in a statement.

Ignoring that plea, some social and religious conservatives and right-wing radio talk show hosts called for Craig's resignation. And political analysts said Craig will have trouble convincing Gem State voters that his 27-year political career is worth sparing.

"I think what makes it very difficult is the guilty plea," said Randy Stapilus, a former political editor at the Idaho Statesman who has a political blog. "That is something a lot of people will have a tough time getting around."

In Idaho, with its 1.4 million people, politicians know many supporters by name. The state also likes its Republicans. The GOP controls the statehouse and Congress, and President Bush carried the state in 2004 with 68 percent of the vote.

More than 166,000 residents are Roman Catholic and more than 385,000 Mormon.

"This isn't Massachusetts, that's for sure," said Chris Preston, a merchant in downtown Boise. "And because of that I think it's going to be tough for the state to forgive his transgressions."

And perhaps even for those in his own party. Republican leaders in the Senate called for an Ethics Committee review of the case.

"This is a serious matter," they said in a written statement issued in Washington over the names of Sen. Mitch McConnell of Kentucky, the party leader, and several others.

Two Republicans seeking the party's presidential nomination didn't mince words. Mitt Romney, in whose campaign Craig was playing a prominent role until he quit amid the scandal, told CNBC, "He's disappointed the American people." On Jay Leno's "The Tonight Show," Sen. John McCain said, "It's disgraceful."

Reports state that police Sgt. Dave Karsnia was investigating allegations of sexual conduct in Minneapolis airport restrooms when he went into a stall. The complaint against Craig alleged that he employed "a signal often used by persons communicating a desire to engage in sexual conduct."

Craig was arrested, read his rights, fingerprinted and photographed for a mug shot released by police showing him in coat and tie. He signed a guilty plea on Aug. 1 and later paid $575 in fines and fees and was placed on unsupervised probation for a year.

NASA report due on alcohol, astronauts By SETH BORENSTEIN, AP Science Writer

NASA report due on alcohol, astronauts By SETH BORENSTEIN, AP Science Writer
1 hour, 11 minutes ago



WASHINGTON - NASA is set to release results of an internal investigation into whether a couple of astronauts were drinking heavily just before launch, but no one expects new details to emerge.

ADVERTISEMENT


In recent weeks, top NASA officials said they could find no proven instances of drunken astronauts about to fly. They said they had examined what happened before launches in the past decade. As of late Tuesday, officials were still confident that no big embarrassments would emerge in the report due out Wednesday.

In July, an independent panel said there were at least two unverified and unidentified instances of astronauts drinking heavily before a flight. The panel was formed to look at astronaut health issues because of the bizarre case of astronaut Lisa Nowak, who was arrested and charged with attempted kidnapping of a romantic rival.

The panel's 12-page report last month said: "Interviews with both flight surgeons and astronauts identified some episodes of heavy use of alcohol by astronauts in the immediate preflight period, which has led to safety concerns."

One instance involved a shuttle astronaut that a colleague claimed had had to much too drink; the colleague alerted others only after the launch was delayed because of mechanical instances.

The other involved an astronaut drinking alcohol before flying on a Russian Soyuz capsule to the international space station. Drinking, especially toasts, are common in the Russian space program.

In both cases — in which no names were given — the report said that flight surgeons and/or fellow astronauts raised safety worries with nearby officials in charge, yet "the individuals were still permitted to fly."

The panel didn't have the ability to investigate further, so NASA's safety chief, Bryan O'Connor, a former astronaut and shuttle accident investigator, was asked to investigate. O'Connor spent much of his time in Houston, where astronauts work, said NASA spokesman David Mould.

NASA administrator Michael Griffin this month pronounced pre-launch preparations for astronauts to be so visible that it is nearly impossible to sneak a drink.

"They would have to really want to drink and hide it really well," Griffin said before the launch of the shuttle Endeavour. He called the charges "uncredible."

Little has changed since then, Mould said Tuesday.

Asian markets tumble after U.S. sell-off 1 hour, 32 minutes ago

Asian markets tumble after U.S. sell-off 1 hour, 32 minutes ago



TOKYO - Asian markets dropped Wednesday following a plunge on Wall Street amid simmering concerns over global credit market turmoil and fears the U.S. Federal Reserve won't do enough to ease a credit crunch. European markets, meanwhile, were mixed in early trade.

ADVERTISEMENT

Asian markets pared losses as the day progressed, with Korean shares recovering nearly completely, suggesting a measure of investor confidence.

Japan's Nikkei 225 index was 1.7 percent lower at the close after dropping as much as 2.8 percent earlier in the day. Hong Kong's key index was down 1.5 percent at its close after losing as much as 2.9 percent. And South Korea's benchmark finished just 0.2 percent lower after dropping as much as 3.1 percent.

In early European trade, the U.K.'s FTSE 100 and France's CAC 40 were both up 0.34 percent, while Germany's DAX was down 0.5 percent.

In New York Tuesday, the Dow Jones industrial average sank 280.28, or 2.10 percent, to 13,041.85, its biggest drop since Aug. 9. Investors grew more uneasy about whether the Fed, the U.S. central bank, will take the steps needed to prevent credit market problems from spreading further.

Global markets have been volatile in recent weeks as rising defaults on U.S. subprime mortgages has hit some brokerages and hedge funds that held mortgage-backed securities and made banks less willing to lend money.

"Everyone is scared. It's like walking in the dark because we have yet to get the full picture of the subprime loan problems," said Shoji Yoshikoshi, senior investment strategist at Mitsubishi Capital UFJ Securities Co. in Tokyo.

Worries about a slowdown in the U.S. economy — a key Asian export market — heightened after a report Tuesday said U.S. consumer confidence sagged in August.

Investors in the U.S. were disappointed that minutes from the Fed's last meeting Aug. 7, released Tuesday, didn't discuss a cut in the benchmark federal funds rate. The meeting predated a number of actions taken by the central bank to try to alleviate market turbulence, including the Aug. 17 lowering of the discount rate, the interest the Fed charges banks to borrow money. But Wall Street seems to be growing more dissatisfied because the Fed has not yet lowered the funds rate.

Yoshikoshi said share prices will remain volatile until mid-September or October. Players are now investing in bonds in Japan, Europe and the U.S., considering them safer than shares, he said.

"But that is only temporary and once we get the full picture of the problems, investors will return to stocks," he said.

The market volatility also strengthened the yen as investors backed away from yen-carry trades. To exit the trades, investors have to buy yen to repay cheap yen loans. The dollar was trading at 114.37 yen at 4:50 p.m. (0750 GMT), down from 114.56 yen Tuesday in New York.

The yen's strength in turn caused traders to dump exporters like Toyota Motor Corp. and Sony Corp., which fell 2.0 percent and 2.8 percent, respectively. The stronger yen makes Japanese exports more expensive and less competitive overseas.

In South Korea, Samsung Electronics Co., the country's biggest corporation, fell 2.4 percent, and Hyundai heavy Industries Co., the world's largest shipbuilder, rose 2.0 percent. A second shipbuilder, Daewoo Shipbuilding & Marine Engineering company, gained 4.9 percent, and helped lift the Korea Composite Stock Price Index, or Kospi, from its early morning lows.

Major indices fell in Australia, China, Indonesia, New Zealand, the Philippines, Singapore, Taiwan and Thailand

Pakistan's Musharraf, Bhutto reach deal By STEPHEN GRAHAM, Associated Press Writer

Pakistan's Musharraf, Bhutto reach deal By STEPHEN GRAHAM, Associated Press Writer
13 minutes ago



ISLAMABAD, Pakistan - Pakistani leader Pervez Musharraf and former political rival Benazir Bhutto have reached agreement regarding Musharraf's military role, a key step toward a power-sharing agreement, a senior official said Wednesday.

ADVERTISEMENT


"Both sides have agreed on the issue of uniform," Railways Minister Sheikh Rashid Ahmed, a close Musharraf ally, told reporters. Bhutto was quoted in a British newspaper making a similar comment, though neither she nor Ahmed elaborated.

Envoys for the U.S.-allied military president and former Prime Minister Bhutto, who is planning a return from exile abroad, are trying to work out a pact that would help Musharraf secure another five-year presidential term.

Bhutto and other opposition leaders argue that the constitution obliges Musharraf, who seized power in a coup in 1999, to give up his post as military chief before he asks lawmakers for a fresh mandate in September or October.

Musharraf, however, has insisted that the constitution allows him to remain in uniform until the end of 2007 and has left open what will happen after that.

Bhutto was quoted in Wednesday's Daily Telegraph as saying that the "uniform issue is resolved."

"The uniform issue is key and there has been a lot of movement on it in the recent round of talks," Bhutto told the London-based daily.

Both Bhutto and Rashid said the two sides were close to an agreement but that there were still outstanding issues.

Musharraf's future is clouded by a clamor for an end to military rule, fallout from a lost battle against the judiciary and the plans of Nawaz Sharif, another former premier, to also mount a dramatic political comeback.

Sharif's Pakistan Muslim League-N party insisted Tuesday that it was not involved in reported talks in London with envoys sent by Musharraf.

Sharif's party and Bhutto's Pakistan People's Party have scheduled crunch meetings in the next few days in London — where the two former premiers have been living — to decide when their leaders will return.

In the past, Musharraf vowed to prevent them from re-entering Pakistan. He blames them for the corruption and economic problems that nearly bankrupted the country in the 1990s, when Bhutto and Sharif each had two short-lived turns as prime minister.

But with the United States pressing for more democracy and redoubled efforts against al-Qaida and Taliban militants near the Afghan border, Musharraf recently began calling for political reconciliation and an alliance of moderates to defeat extremists.

Musharraf's authority has greatly eroded since March, when he tried unsuccessfully to remove the Supreme Court's top judge. The move triggered protests that snowballed into a broad campaign against Musharraf's rule.

The court reinstated the judge in July, raising expectations that it also will uphold legal challenges to Musharraf's re-election plan likely to be filed by Sharif as well as religious parties opposed to Pakistan's close alliance with Washington.

Last week, the court ruled that Sharif, the prime minister Musharraf toppled in 1999, can come home, despite a promise in 2000 that he would stay away for a decade in return for his release from jail.