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Showdown over disaster aid looms in Congress

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By Andy Sullivan

WASHINGTON | Tue Sep 13, 2011 6:41pm EDT

(Reuters) - Congress headed toward a showdown on disaster aid on Tuesday as the Democratic-controlled Senate advanced a measure that is unlikely to pass the Republican-controlled House.
Lawmakers from both parties say they want to ensure victims of tornadoes, hurricanes and other natural disasters get the help they need but the money could get tripped up in the spending debate that has dominated Washington this year.
Republicans want extra disaster aid to be offset by spending cuts if possible to avoid deepening the country's fiscal problems. Democrats say budget concerns should not be a factor during one of the most extreme years for weather in U.S. history.
The Federal Emergency Management Agency will need an extra $5.1 billion to cover disaster aid, according to the White House. FEMA could run out of money in the coming weeks and has already suspended some rebuilding efforts to ensure that victims of Hurricane Irene get immediate help.
The Senate voted, 61-38, to take up a measure that will include $6.9 billion in disaster aid -- enough to cover disaster response efforts until October 2012.
"It's time for Republicans to prove, for the first time this Congress, that they are willing to put politics aside for the good of the American people," Senate Democratic Leader Harry Reid said on the Senate floor.
Eight Republicans, many from disaster-hit states, voted with the Democrats. The bill could clear the Senate in the next several days.
Meanwhile, House Republicans prepared a measure that would include about $1 billion to cover FEMA's disaster-aid activity for the next several months.
Republicans offset that money by cutting a program that promotes electric vehicles. They will look for further budget cuts in coming months to cover the additional disaster aid, an aide said.
That bill will come up for a vote in the House next week, according to House Republican Leader Eric Cantor.
"Its important that we get the relief to people who need it -- no one's holding any money hostage," Cantor told reporters. "I also think we can do so in a responsible way."
Much of the northeastern U.S. coast suffered flooding from Hurricane Irene last month while Texas has been struggling with drought and wildfires this summer. In May tornadoes devastated parts of Alabama and Missouri.

Can $97 Really Turn Into $6795? We Investigated...

Can $97 Really Turn Into $6795? We Investigated...

13 September 2011 Last updated at 06:08 ET

Italy pays higher interest rate to borrow money

 

Prime Minister Silvio Berlusconi has struggled to convince the markets that Italy's finances are sound

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Italy's borrowing costs have hit a new high, reflecting continuing lack of confidence in the nation's finances.

Italy raised 3.85bn euros (£3.3bn) in five-year bonds - but the interest rate rose to 5.6%, up from 4.93%.
Before the fund raising, reports said that the Italian finance ministry had met delegates from China's largest sovereign wealth fund, CIC.
This sparked speculation that CIC might invest some of its vast wealth in Italian assets and bonds.
The European Central Bank has been buying Italian bonds, but there was no immediate disclosure on Tuesday if it had intervened in this latest auction.
Peter Chatwell, a strategist at Credit Agricole, said: "Markets were positioned for a weak auction. The five-year yield of 5.6% is probably the most telling sign that issuance of new bonds into this environment is very difficult."
Italy has about 1.9 trillion euros of debt, and must raise about 70bn euros by the end of the year.
The government will start talks in the next few days on more measures to stimulate economic growth and reduce the debt burden.

Obama's Jobs Plan Fact Sheet - .pdf

Obama's Jobs Plan Fact Sheet

13 September 2011 Last updated at 04:33 ET

All My Children star Mary Fickett dies

 

Fickett appeared in the soap's first episode in 1970

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Mary Fickett, an original cast member on US soap opera All My Children, has died at her Virginia home after a period of ill health, aged 83.

The actress played nurse Ruth Martin in the show's first episode in January 1970 and last appeared in 2000.
She made history in 1973 when she became the first performer to receive an Emmy for work on daytime television.
The soap will dedicate an episode to the actress on 21 September, two days before the entire series ends.
Fickett had two spells on the series, which is set in the fictional Pennsylvania town of Pine Valley, first from 1970 to 1995 and then again from 1998 to 2000.
She won her Emmy after her character's son was sent to Vietnam and she became a vocal critic of the war - a storyline that troubled TV executives at the time.
Over the years, viewers also saw Ruth experience an abusive first husband and a rape at the hands of her adopted son's biological father.
In Fickett's last episode, her character and on-screen husband, Dr Joe Martin, retired to Florida after years of melodrama.
'Revered'
Born in New York state in 1928, Fickett was surrounded by drama from an early age.
Her father produced the radio series Theatre Guild on the Air, and she made her stage debut in 1946.
She won a Tony nomination for her portrayal of Eleanor Roosevelt on Broadway in 1958, before finding work in television series such as The Untouchables.
Her marriages to actor James Congdon and businessman Jay Leonard Scheer ended in divorce. Her third husband, soap-opera director Allen Fristoe, died in 2008.
"We at ABC were very saddened to learn about the passing of one of All My Children's original cast members," the network said in a statement.
"As we honour All My Children's 41 years on ABC, we cannot help but recognize and remember Mary's wonderful depiction of Pine Valley's revered Ruth."
The actress is survived by a daughter and a son.

Iran to release U.S. hikers after they pay $500,000 bail each, attorney says

Hikers Shane Bauer, left, and Josh Fattal are shown in a picture release 

by state-run Iranian TV in February.

Iran to release U.S. hikers after they pay $500,000 bail each, attorney says

September 13th, 2011

06:03 AM ET

Josh Fattal and Shane Bauer, two American hikers accused of being spies in Iran, will be released from an Iranian prison after a $500,000 bail is paid for each of them, the two men's attorney said Tuesday.

The lawyer said he has spoken to the two men's family and the are trying to get the money quickly.
If the two men walk free this would be the end of an international tug-of-war between Iran and the United States that has stretched on for over two years.
More than two years ago, the two men along with Sarah Shourd - Bauer's fiancee - were hiking in Iraq's autonomous Kurdish region along the Iranian border.
Iranian police arrested the three Americans, saying they illegally entered Iran. They were also charged with spying.