Washington News

Fed Report Says US Net Worth Fell 38.8 Percent From 2007 To 2010 The Federal Reserve's Survey of Consumer Finances shows that the median net worth of US families fell between dramatically 2007 and 2010. The report received a great deal of coverage in Tuesday's newspapers, as well as over two minutes on NBC Nightly News last night. Most of the stories note that the Fed data underscores the damage caused by the recession and several reports note that the data, which straddles the last years of the Bush administration and the early years of the Obama administration will likely be used by both parties in this year's political campaign.
NBC Nightly News reported that there is "fresh evidence today from the Federal Reserve, of how brutal this economy has been." NBC (Thompson) added, "It is the symbol of the American dream – owning a home. But the collapse of the housing market sent the net worth of the American family into a tailspin. The net worth for the very middle or the median falling from $126,400 in 2007 to $77,300 in 2010. A stomach-churning 39% drop." NBC added, "What this makes clear is that America's middle-class paid the highest price. Though incomes fell for those at the very top and the very bottom, it was nothing like what happened to those in between."
Bloomberg News notes that the biggest losses were "concentrated among households with the most assets tied to their homes."
Politico notes that the Fed report says the decline in net worth "stemmed from the housing crisis." According to the report, "Although declines in the values of financial assets or business were important factors for some families, the decreases in median net worth appear to have been driven most strongly by a broad collapse in house prices."
The Los Angeles Times notes that the "biggest impact was felt by young middle-age families, those headed by people ages 35 to 44. For this group, the median net worth -- total assets minus debts -- fell a whopping 54% in the three-year period to $42,100 in 2010."
The New York Times reports that the Fed study shows that the recent economic crisis "left the median American family in 2010 with no more wealth than in the early 1990s, erasing almost two decades of accumulated prosperity." The Times adds, "While the numbers are already 18 months old, the survey illuminates problems that continue to slow the pace of the economic recovery."
McClatchy says the report may "provide fodder for both the re-election efforts of President Barack Obama and the campaign of presumptive GOP presidential nominee Mitt Romney. Obama can use the data to show what a terrible economy he inherited, while Romney can use the data to show how bad things remain."

Issa Sets June 20 Vote For Holder Contempt Citation The announcement by Rep. Darrell Issa, who chairs the House Oversight and Government Reform Committee, that the committee will vote on June 20 on a proposal to hold Attorney General Eric Holder in contempt of Congress was covered heavily in print media and on cable news, but was not mentioned on network newscasts.
Fox News' Special Report reported, "The tug-of-war over documents related to operation Fast and Furious has entered a new phase. ... The House Oversight and Government Reform Committee has scheduled a hearing next week to vote on holding Attorney General Eric Holder in contempt of Congress. Oversight chairman Darrell Issa has been investigating who authorized the tactics used in the botched Fast and Furious program."
The AP reports that Issa "says Congress needs to examine records regarding the Justice Department's conduct following public disclosures in early 2011 that hundreds of guns illicitly purchased at gun shops on the US side of the border wound up in Mexico, many of them at crime scenes. The Justice Department says many of the documents being sought deal with open criminal investigations and prosecutions - matters relating to sensitive law enforcement activities that cannot be disclosed."
Politico reports that Issa said in announcing the vote that the administration "has not asserted Executive Privilege or any other valid privilege over these materials and it is unacceptable that the Department of Justice refuses to produce them. These documents pertain to Operation Fast and Furious, the claims of whistleblowers, and why it took the Department nearly a year to retract false denials of reckless tactics."
The Hill reports that Justice Department spokeswoman Tracy Schmaler "blasted" Issa on Monday "for playing 'political games at the expense of all Americans.'"
The Washington Post reports, "Justice Department officials are working behind the scenes to avert" the vote, reaching out to Issa aides in order "to reach a compromise on the documents that Issa has subpoenaed on the botched 'gun walking' operation."
The Daily Caller reports that Sen. Charles Grassley (R-IA) "applauded" Issa's decision to hold the vote, "describing the action as 'straightforward and necessary.'" Grassley, "the ranking Republican member of the Senate Judiciary Committee, has investigated Operation Fast and Furious alongside Issa for over a year and half. 'Contempt is the only tool Congress has to enforce a subpoena,' Grassley said in a Monday statement. 'The Department of Justice can avoid the action by complying with its legal obligation."

Bryson Takes Leave Of Absence After Car Crashes And Seizure Politico reports Commerce Secretary John Bryson, "who was involved in two car accidents over the weekend and suffered a seizure, notified President Barack Obama on Monday that he is taking a medical leave of absence, effective immediately. Bryson's functions and duties have been transferred to Deputy Secretary Rebecca Blank, who will serve as acting secretary of commerce." The Wall Street Journal notes that Blank previously served as acting commerce secretary in 2011 for three months. The AP reports White House press secretary Jay Carney "said in a statement that Obama's thoughts were with Mr. Bryson and his family."
David Wright, on ABC World News, reported that Bryson, "driving a black Lexus, rear-ended a white Buick that was stopped at a train crossing in San Gabriel, California...got out of his car and spoke briefly with the three men in the Buick, and then he got back in the Lexus and promptly fled the scene."
The CBS Evening News reported that the Commerce Department said Bryson "suffered a seizure," and the Los Angeles Sheriff's Department "says Bryson passed a breathalyzer test."
NBC Nightly News noted that Bryson "was found unconscious at the wheel...treated at the hospital" and is "back home in Washington recuperating."
The Washington Post says Bryson "was cited for felony hit-and-run after he allegedly caused a series of car collisions on Saturday...in an episode that -- two days later -- White House officials said they were still trying to understand." The Post reports that on Monday, Commerce Department spokeswoman Jennifer Friedman said Bryson "had suffered a seizure -- his first -- at some point during the incident," but "it was still unclear what caused Bryson's seizure, or what role the seizure played in the collisions. The secretary has 'limited recall' of the events, Friedman said."
According to the New York Times , "The episode set off a squall of speculation and questions." The Times reports that Bryson "was in town to deliver a commencement address at Polytechnic School, a private prep school in Pasadena that his four daughters attend."
The Hill says the "hit-and-run accident...threw the White House off message Monday just as President Obama sought to regain his footing after a series of political missteps." According to The Hill, Carney "-- who fielded a barrage of questions from reporters on the matter, including an inquiry about Bryson's vetting and mandatory physicals for Cabinet members -- wouldn't say if Obama believed Bryson was able to serve in the position or even if the president knew about his health condition before he nominated him."

Campaign News

PPP Poll: Barber Poised To Defeat Kelly In Race To Succeed Giffords Politico reports that an Public Policy Polling survey shows Ron Barber (D) is poised to defeat Jesse Kelly (R) in today's AZ8 special election to succeed former Rep. Gabrielle Giffords. The poll "showed Barber racing to a commanding 53 percent to 41 percent lead over Kelly."
On its website, The Hill reported on the poll results, noting that Barber "enjoys a favorable reputation among the slightly GOP-leaning electorate in southern Arizona, with 53 percent viewing him favorably and 41 percent unfavorably. Voters disapprove of Kelly 59-37, the poll showed."
The Christian Science Monitor notes that while Barber and Kelly will appear on the ballots, "the two more important names in the race are those of Giffords and President Obama – the former still invoking significant goodwill here, the latter far less so." Barber, a former aide to Giffords, "is her hand-picked successor." The Monitor notes that Giffords, "who rarely appears in public, stumped for Barber at a weekend get-out-the-vote concert in Tucson."
Likewise, the Washington Post notes that in the race's final days, Barber has "emphasized his ties to Giffords," while Kelly "have focused almost entirely on trying to link Barber to Obama, who is unpopular in the Tucson-based district, which has been a key battleground for his administration's immigration policies."
The Los Angeles Times reports, "Experts say that while Barber is expected to win Tuesday's runoff, a surprise win by Kelly could suggest genuine trouble for...Obama in his own race against Republican Mitt Romney. 'It would be a surprise if Kelly wins and would be indication that things are amiss for Democrats and that voters are still bent on sending President Obama a message,' said David Wasserman, an editor for the Washington, D.C.-based Cook Political Report."

Obama Tops Romney In Pennsylvania Survey A new poll out this morning from Quinnipiac University shows President Obama leading Mitt Romney 46%-40% in Pennsylvania. That's down a bit from a 47%-39% Obama lead in a similar poll in early May. While men back Romney 44%-40% in the new poll, women overwhelmingly support Obama 51%-36%. Obama also leads 43%-35% among independents. However, 49% said Romney would do a better job on the economy, while 41% said Obama would. The poll also shows 66% approve of a new state law requiring voters to have photo ID to cast their ballots, while 32% disapprove. The poll surveyed 997 registered voters from June 5-10.

Tracking Polls: Obama, Romney In Tight Race The Gallup daily tracking poll shows President Obama leading Mitt Romney 46%-45%. The poll surveyed about 3,050 registered voters from June 4-10.
The Rasmussen Reports daily tracking poll shows Romney leading Obama 47%-44%. The poll surveyed about 1,500 likely voters from June 8-10.