Oil still gushing from shut-down Canada-U.S. pipeline (Reuters)

Reuters - Enbridge Inc's 6A pipeline, the biggest of three key arteries that deliver most of Canada's crude oil exports to the United States, is still leaking oil in Illinois more than 24 hours after the spill that forced its closure was reported.

Ohio man guilty in income tax return fraud (AP)

AP - An Ohio man has pleaded guilty in a $400,000 fraud that used stolen identities to file more than 100 false federal income tax returns.

Ohio man guilty in income tax return fraud (AP)

AP - An Ohio man has pleaded guilty in a $400,000 fraud that used stolen identities to file more than 100 false federal income tax returns.

War story: US vet who caught Japan's Tojo speaks (AP)

AP - A former U.S. Army intelligence officer credited with thwarting a suicide attempt by World War II Japanese leader Hideki Tojo is talking publicly about his exploits for the first time in 65 years.

CA crews try to reach smoldering homes after blast (AP)

AP - Fire crews tried to douse the remnants of an enormous blaze and account for the residents of dozens of homes Friday after a gas line ruptured and an explosion ripped through in a neighborhood near San Francisco, killing at least four people.

Rare vivid blue diamond up for sale at NYC auction (AP)

AP - A two-stone ring with a rare triangular blue diamond the size of a quarter on a gold band with baguette-cut diamonds could bring at least $15 million when it is offered at auction in New York next month.

New GM CEO's pay package worth $9 million (AP)

AP - New General Motors Co. CEO Daniel Akerson will get the same $9 million pay package as the man he replaced, Ed Whitacre.

9/11 politicized by mosque, Quran controversies (AP)

AP - For almost a decade, the anniversary of the Sept. 11 terrorist attacks was marked by somber reflection and a call to unity, devoid of politics. Not this time.

Wall Street gains as economic outlook brightens (Reuters)

Reuters - The Dow and S&P 500 were on track on Friday to close the week with a seventh gain in the last eight sessions, a period that has seen investors worst fears about the economy start to dissipate.

Genzyme begins layoffs to cut costs (Reuters)

Reuters - U.S. biotech company Genzyme Corp has begun laying off an unspecified number of employees, a move it said was unrelated to Sanofi-Aventis SA's takeover bid.

Treasury lawyer tapped to replace Feinberg (AP)

AP - The Obama administration says it's chosen a Treasury Department lawyer to replace pay czar Kenneth Feinberg, who stepped down Friday, ending a contentious 14-month tenure.

U.S. banking group wants part of Basel plan dropped (Reuters)

Reuters - A leading U.S. banking group is urging Basel Committee negotiators working on new international capital standards to ditch part of their proposal.

Earnings Preview: Best Buy Inc. (AP)

AP - Electronics seller Best Buy Inc. reports its second-quarter results before the market opens on Tuesday.

The states strike back

States are intensifying theirefforts to confront the challenge of winnowing down budget shortfalls by raising sales tax rates, increasing the number of items taxed, and more aggressively asserting nexus.

Burris asks high court to reopen Senate ballot (AP)

AP - Sen. Roland Burris has turned to the U.S. Supreme Court in his battle to avoid being pushed out of office in November, his attorney said Friday.

Obama names Goolsbee to head economic council (AP)

AP - President Barack Obama on Friday named a longtime adviser, Austan Goolsbee, to be the chairman of the White House Council of Economic Advisers, calling him "one of the finest economists in the country."

Obama says Republicans holding recovery hostage (Reuters)

Reuters - President Barack Obama accused Republicans on Friday of holding the middle class hostage and defended his efforts to stimulate the sluggish economy as he tries to reverse grim election prospects for his fellow Democrats in November.

House may adjourn a week early (Politico)

Politico - Leaders consider move that would allow for just 11 days in session before the midterms.

Hermine death toll climbs to 6 as 2 bodies found (AP)

AP - The bodies of two men found Friday in swollen Texas waterways pushed the death toll caused by remnants of Tropical Storm Hermine to six, while a scaled-back search resumed for another woman swept away in flooding caused by a record drenching.

Recession has left huge hole: Obama (AFP)

AFP - US President Barack Obama said Friday the "hole" left by the worst recession in decades was "huge" and admitted the recovery had been "painfully slow," but vowed his policies were working.

NTSB: Duck boat calls unanswered before collision (AP)

AP - An idled tour boat and nearby vessels made repeated, unanswered calls to the tugboat guiding the massive barge that hit and sank the smaller craft in the Delaware River, killing two Hungarian students, according to a preliminary federal report released Friday.

Where to Buy a Home for Less Than $800 a Month (U.S. News & World Report)

U.S. News & World Report - While the nation's real estate crash has been a nightmare for homeowners, it has created some outstanding opportunities for would-be buyers. Home prices in 20 major cities dropped 33 percent from the summer of 2006 to the spring of 2009--and in certain markets, the plunge was even steeper. At the same time, the federal government's efforts to revive the housing market have helped drive financing costs to record lows. Thirty-year fixed mortgage rates fell to an average of 4.32 percent for the week ending September 2. That's the lowest level in nearly 40 years of record-keeping. ...

Colo. fire evacuees cautiously allowed back home (AP)

AP - Crews held a wildfire near Boulder at bay Friday, allowing some 2,000 evacuees to return home with a warning to be prepared to flee again.

Obama taps Goolsbee as top White House economist (Reuters)

Reuters - President Barack Obama on Friday named a member of his inner circle as top White House economist and gave a strong personal endorsement to a leading candidate to run his new consumer protection bureau.

Obama taps Goolsbee as top White House economist (Reuters)

Reuters - President Barack Obama on Friday named a member of his inner circle as top White House economist and gave a strong personal endorsement to a leading candidate to run his new consumer protection bureau.

STATES

GUJARAT: Gujarat to permit landlocked States to own ports on its coasts State to be rebranded as ‘Global Business Hub' at investment meet.

UBS downgrades Intuit on stock price rise (AP)

AP - Financial software maker Intuit Inc. remains an "attractive story," with strong results despite a difficult economy, a UBS analyst said Friday.

Google's Android to be world No. 2 in 2010: report (Reuters)

Reuters - Google Inc's Android software will become the world's second most popular operating system for cell phones this year, leapfrogging rival offerings from Microsoft Corp, Research in Motion and Apple Inc, according to a new report.

Would-be Wall Street sheriffs strike cautious tone (Reuters)

Reuters - All candidates vying to be the next so-called Sheriff of Wall Street say they will find the bad apples without overturning the applecart in the financial capital's fragile economic recovery.

Conductor's arm amputated after Calif. derailment (AP)

AP - A surgical team amputated the arm of a conductor Friday to free him from the wreckage of a locomotive that struck a slow-moving freight train on tracks 50 miles east of Los Angeles.

Obama says voters may blame him for economy (AP)

AP - President Barack Obama insisted Friday that the U.S. economy is digging itself out of the deepest recession in decades but conceded that "progress has been painfully slow" and many voters in November's elections may blame him.

Obama says voters may blame him for economy (AP)

AP - President Barack Obama insisted Friday that the U.S. economy is digging itself out of the deepest recession in decades but conceded that "progress has been painfully slow" and many voters in November's elections may blame him.

US judge: 'Don't ask, don't tell' unconstitutional (AP)

AP - A federal judge said she will issue an order to halt the military's "don't ask, don't tell" policy, after she declared the ban on openly gay service members unconstitutional.

Iran's president intervened in American's release (AP)

AP - Iran's president intervened to secure the release of Sarah Shourd, one of three Americans jailed for more than 13 months, in part because of her gender, a news agency reported Friday.

July wholesale inventories jump 1.3 percent (Reuters)

Reuters - Wholesale inventories surged the most in two years in July, adding to signs that economic growth in the third quarter of the year may prove a bit stronger than many forecasters had expected.

Report: US must deal with homegrown terror problem (AP)

AP - The U.S. was slow to take seriously the threat posed by homegrown radicals and the government has failed to put systems in place to deal with the growing phenomenon, according to a new report compiled by the former heads of the Sept. 11 Commission.

Obama: GOP's policies made a 'mess' of economy (McClatchy Newspapers)

McClatchy Newspapers - WASHINGTON — With his Democratic Party facing the prospect of huge congressional losses in November, President Barack Obama tried Friday to draw sharp distinctions between Republicans and Democrats, arguing that Republican plans "are the exact policies that got us into this mess."

(AP)

AP - Obama says 'we are not at war against Islam,' but against terrorist factions.

Treasury's Barr to testify on Fannie and Freddie (Reuters)

Reuters - Michael Barr, assistant treasury secretary for financial institutions, and Edward DeMarco, acting director of the Federal Housing Finance Agency will testify on Capitol Hill next week on the future of Fannie Mae and Freddie Mac .

Greece pledges to overhaul loss-making state rail (AP)

AP - The Greek government pledged Friday to radically overhaul loss-making state rail company OSE, as official data showed efforts to cut the country's bloated budget deficit remained on track, if slightly asthmatic.

Greece pledges to overhaul loss-making state rail (AP)

AP - The Greek government pledged Friday to radically overhaul loss-making state rail company OSE, as official data showed efforts to cut the country's bloated budget deficit remained on track, if slightly asthmatic.

Obama says growing economy will ease poverty (AP)

AP - When it comes to fighting poverty, President Barack Obama says the most important thing he can do is to make the economy grow more quickly so that there are more jobs for everyone.

Obama to voters: Our economic policies better (AP)

AP - President Barack Obama says that if voters weigh his economic policies against those of Republicans, then "the Democrats will do very well" in November.

What is next for the military ban on gays? (The Upshot)

The Upshot - On Thursday, a U.S. District Court judge in California struck down the military's ban on openly gay service members, ruling that the policy violates their First and Fifth Amendment rights guaranteeing free speech and due process under the law. (You can read the full decision here.) Awkwardly enough, the defendant in the case is the [...]

Obama picks new top economist (AFP)

AFP - US President Barack Obama on Friday named Austan Goolsbee, an economics professor currently working in his administration, to chair the Council of Economic Advisors (CEA).

Obama picks new top economist (AFP)

AFP - US President Barack Obama on Friday named Austan Goolsbee, an economics professor currently working in his administration, to chair the Council of Economic Advisors (CEA).

Obama says OK to call his new plan a stimulus bill (AP)

AP - President Barack Obama says his entire economic agenda is designed to stimulate growth and create jobs, despite his administration's reluctance to call his new proposals a "stimulus plan."

Daniels fished quarters out of toilet (Politico)

Politico - He used them "to pay for beer" and regularly fishes golf balls out of the woods to save money.

Democrats Break With Obama on Bush Tax Cuts (The Atlantic Wire)

The Atlantic Wire - President Obama has been vocal in his opposition to rolling back the Bush-era tax cuts for families making more than $250,000. But as his party's position in the polls continues to worsen and the economy remains stagnant, a number of high-profile Democrats, including Senators Jim Webb and Evan Bayh, are breaking with the president and voicing their support for extending the cuts. Is this a political year stunt, or are congressional Democrats really ready to force Obama's hand?Showdown Coming? Democrats in Congress see the moment as a chance to distance themselves from an increasingly unpopular administration, says Reuters's Kim Dixon. It's particularly important for moderate Democrats who must appeal to "constituencies that sometimes look more like Republicans." Obama's plan isn't drawing much support from the rank-and-file. "Most public displays of support [for ending the tax cuts] have come from the Democratic leadership in the U.S. House of Representatives," writes Dixon.Curious Fight The Washington Post's Greg Sargent believes Democratic opposition to Obama's plan is misguided. "Amid a sea of bad polling news, here is an issue where the public is clearly on Dems' side," writes Sargent. Punting, Sargent believes, would just be bad politics. "This, of all things, is not an issue where Dems should conclude in advance -- as they often do -- that once Republicans go on the attack, it's game over and Dems can't possibly win the argument." Breaking Ranks Those pushing for an extension of the benefits received an unexpected endorsement this week from Peter Orszag, Obama's former White House budget director. "In the face of the dueling deficits, the best approach is a compromise," Orszag wrote Wednesday in his new New York Times column. "Extend the tax cuts for two years and then end them altogether." At the very least, an extension would save the president some of his political capital. "The beauty of extending the tax cuts for only two years," Orszag noted, "is that canceling them doesnât require an affirmative vote."Impact Overstated? Time's Michael Crowley argues the political impact of breaking with Obama on taxes will be negligible for vulnerable Democrats. While the majority of Americans were in favor of the original cuts in 2001, Crowley notes that was an era of "very different budgetary and economic circumstances." Democrats trying to use the issue for political gain in 2010 could find it has "limited impact" with voters in November.

Jones hits morning shows, but won’t be flying with ABC (The Upshot)

The Upshot - The national media have come under fire this week for giving so much ink and airtime to Terry Jones, the fringe Florida pastor who planned â or possibly still plans? â to burn Qurans on Sept. 11. Some journalists have questioned giving Jones such a huge platform to spout anti-Islam rants. So an NBC reporter's [...]