Italy left on financial high-wire




Prime Minister Silvio Berlusconi delivers a speech during a campaign rally in Rome on January 25, 2013.




STORY HIGHLIGHTS


  • Brilliant minds are still trying to figure out the financial impact of Italy's election

  • The lack of certainty is seen as a negative for Italy -- and the eurozone

  • Instability could reignite the eurozone crisis

  • But it depends on what deal will be done, and how the markets will respond




Editor's note: Louise Cooper is a financial blogger and commentator who regularly appears on television, radio and in print. She started her career at Goldman Sachs as a European equity institutional sales person and then become a financial and business journalist. She now writes CooperCity.


London (CNN) -- Brilliant minds across the financial world are still trying to work out the implications of the Italian election result.


For the time being, the best answer is that it is probably too soon to tell. After Tuesday's falls, a little stability has returned to markets, possibly because everyone is still trying to work out what to think.


Credit ratings agency Moody's has warned the election result is negative for Italy -- and also negative for other indebted eurozone states. It fears political uncertainty will continue and warns of a "deterioration in the country's economic prospects or difficulties in implementing reform," the agency said.


For the rest of the eurozone, the result risks "reigniting the euro debt crisis." Madrid must be looking to Italy with trepidation. If investors decide that Italy is looking risky again and back off from buying its debt, then Spain will be drawn into the firing line too.


Can the anti-Berlusconi save Italy?



Louise Cooper, of Cooper City

Louise Cooper, of Cooper City



Standard & Poor's stated that Italy's rating was not immediately affected by the election but I think the key part of that sentence is "not immediately."


At the same time Herman Van Rompuy's tweets give an indication of the view from Brussels: "We must respect the outcome of democratic elections in Italy," his feed noted.


Really? That's a first. The democratically elected Silvio Berlusconi was forced out when he failed to follow through with austerity after the European Central Bank helped Italy by buying its debt in autumn 2011.




"It is now up to Italian political leaders to assume responsibility, compromise and form a stable government," Van Rompuy tweeted.




Did he see the results? The newcomer and anti-establishment comedian Beppe Grillo refuses to do a deal and yet he is the natural kingmaker, polling at 25%.




"Nor for Italy is there a real alternative to continuing fiscal consolidations and reforms," he continued.


Economically yes, but the Italian electorate disagree. And for the time being, Italy has a democracy (of sorts).


Finally: "I am confident that Italy will remain a stable member of the eurozone."


He hopes...


The key to whether the crisis reignites is whether investors begin to back away from lending to Italy. If so, this will be the big test of the ECB's resolve to save the euro.


Read more: Euro crisis coverage


The key thing to look at is Italian bonds, because if borrowing costs rise from 4.8% for 10-year money currently to nearer 6%, then Italy will start to find it too expensive to borrow.


The trillion euro question is if the ECB will step in to help even if it cannot get the reforms and austerity it demands (because of the political situation). That is the crux of the matter. And there will be many in the city today pondering that question.


Clearly in financial markets, taking on a central bank is a dangerous thing to do. Soros may have broken the Bank of England on Black Wednesday 1992, making billions by forcing sterling out of the EMU, but that was a long time ago.


Italy avoids panic at bond auction


What we have learnt from this crisis is not to "fight the Fed" (or the ECB). Last summer, the ECB's chief Mario Draghi put a line in the sand with his "whatever it takes" (to save the euro) speech.


But as part of that commitment he stressed time and time again that any new help from the ECB comes with conditions attached. And those conditions are what have proven so unpalatable to the Italians -- austerity and reform.


So we have two implacable objects hurtling towards each other. The political mess of Italy and the electorate's dislike of austerity and reform (incumbent technocrat Mario Monti only polled 10%).


So what happens next? The status quo can continue if Italian borrowing costs do not rise from here and therefore Italy does not need ECB help.


If markets continue to believe in Draghi and Brussels that the euro is "irreversible," then investors will continue to lend to Italy. Yes, markets will be jittery and fearful, but Italy will eventually sort itself out politically.


The big advantage for Italy is although it has a lot of debt, it is not creating debt quickly (like Greece, Spain or even the UK). And as I said yesterday on my CooperCity blog, the positive outcome from all this could be that Brussels backs off from austerity, which would be a good thing.


However, the basic rule of finance is that high risk comes with high return. Soros took a huge gamble against the British central bank but it reportedly made him a billionaire overnight.


There must be a few hedge funders looking at the Italian situation with similar greed in their eyes. If he wants to save the euro, it is time for Mario Draghi to put the fear of God back into such hearts.







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Japan's factory output up 1.0% in January






TOKYO: Japan's factory output for January rose a smaller-than-expected 1.0 per cent from the previous month, official data showed on Thursday.

The rise was weaker than a 1.5 per cent expansion expected by the market and a revised 2.4 per cent increase in December.

But the ministry maintained a positive view, saying in a monthly report: "Industrial production has bottomed out and shows some signs of picking up."

- AFP/ck



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As cuts near, what's Congress doing?






STORY HIGHLIGHTS


  • NEW: GOP plan would require Obama to submit alternative cuts to Congress by March 15

  • During a visit to the Capitol, Obama talks briefly with Hill leaders about the cuts

  • Obama set to meet with congressional leaders at the White House on Friday

  • Republican says White House uses cuts to release undocumented workers with criminal records




Washington (CNN) -- We now have only two days left before $85 billion in widely disliked spending cuts start to take effect. So what's Congress doing Wednesday to deal with this self-inflicted crisis?


Congressional leaders saw President Barack Obama on the Hill.


But Obama wasn't there to talk about the cuts. Hill leaders did manage to have a brief conversation with the president, according to White House spokesman Jay Carney. There's no indication any serious progress was made on a deal to avoid or replace the cuts.


Spending cuts: It's about to get weird


Congressional leaders will meet Obama at the White House on Friday.








But expectations are low. Republicans don't expect the meeting to be anything more than optics, an effort by the president to show he is at least talking to Congress on the day the cuts begin to kick in, a senior GOP aide told CNN


"Either someone needs to buy the White House a calendar, or this is just a belated farce," a congressional Republican said. "They ought to at least pretend to try."


Budget cuts would hit private air traffic in effort to spare airlines


Senate should vote this week on plans to replace cuts or mitigate their impact.


But nobody expects those plans to go anywhere. Any plan put forward by Majority Leader Harry Reid, D-Nevada, or Minority Leader Mitch McConnell, R-Kentucky, will need at least 60 votes to win approval in the 100-member chamber. Neither leader is believed to be in a position to pull that off.


Regardless, Senate Republicans are pushing a proposal that could alleviate the impact of the cuts by giving the president flexibility to decide where they would occur. Under the GOP plan, Obama would be required to submit a list of replacement cuts to Congress by March 15 and couldn't cut defense by more than $42.7 billion.


Democrats worry that would let Republicans off the hook while placing responsibility for the cuts clearly on the president's shoulders; critics in both parties consider the idea an abdication of Congress's power of the purse.


Opinion: Americans sick of budget soap opera


Democrats want to replace much of the sequester with more tax revenue collected from millionaires while also eliminating agriculture subsidies and reducing defense spending after the end of combat operations in Afghanistan next year. Republicans are virtually unified in opposing any new taxes -- a stance Reid called a deal killer on Tuesday.


"Until there's some agreement with revenue, I believe we should just go ahead" with the spending cuts, Reid told reporters on the Hill.


Budget cuts could sacrifice nearly 800,000 jobs


The blame game goes on


Reid and McConnell both blamed the other party for the current quagmire during their Wednesday morning Senate floor speeches.


"Once again, Republicans are too busy fighting among themselves to unite behind a course of action," Reid said. "So they are instead doing nothing. Zero."


Let's "make sure everyone understands this is not President Obama's" package of cuts, Reid added. He said 174 House Republicans voted for them as did 28 GOP senators.


"Congress has the power to void these self-inflicted wounds. But Democrats can't do it alone. Republicans have to do their part," he said.


Shortly after Reid spoke, McConnell declared that Obama "wasn't elected to work with the Congress he wants. He was elected to work with the Congress he has, and that means working with both parties to get things done. It means leaving the gimmicks behind and working with us to hammer out a smarter solution" to his cuts.


"The president's party runs Washington," McConnell said. "It is time they got off the campaign trail and start working with us to govern for a change."


7 budget cuts you'll really feel


Oh the humanity! House members to fly commercial


Speaker John Boehner, R-Ohio, told his GOP caucus that he is suspending the use of military aircraft for official travel by House members, according to an aide to the speaker. The suspension comes as Congress is required to reduce its own expenses.


"The speaker believes this is the prudent and responsible course of action, and it goes above and beyond the spending cuts the House will be implementing," the aide said.


GOP leader says Obama using cuts to release crooks


The White House was on the defensive Wednesday after House Judiciary Committee Chairman Bob Goodlatte, R-Virginia, released a statement indicating his panel learned the administration has "ordered the release of an unspecified number of illegal immigrants in detention" due to the looming cuts.


"These detained illegal immigrants have either been charged or convicted of a crime, have a final order of deportation, are fugitives, or are suspected gang members," the statement noted.


"It's abhorrent that President Obama is releasing criminals into our communities to promote his political agenda" on the cuts, Goodlatte said Tuesday. "By releasing criminal immigrants onto the streets, the administration is needlessly endangering American lives. It also undermines our efforts to come together with the administration and reform our nation's immigration laws."


A statement Wednesday from Immigration and Customs Enforcement said that as "fiscal uncertainty remains over (government funding and potential cuts), ICE has reviewed its detained population to ensure detention levels stay within ICE's current budget. Over the last week, ICE has reviewed several hundred cases and placed these individuals on methods of supervision less costly than detention."


The statement stressed that "all of these individuals remain in removal proceedings. Priority for detention remains on serious criminal offenders and other individuals who pose a significant threat to public safety."


An administration official told CNN the decision to release certain undocumented workers was made by career ICE employees without any White House input. The official said the workers who were released are individuals with one-time misdemeanor convictions or similar offenses.


White House was 'unaware' of immigration detainee release


CNN's Jim Acosta, Dana Bash, Tom Cohen, and Deirdre Walsh contributed to this report






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Supreme Court divided on Voting Rights Act

(CBS News) WASHINGTON -- The Voting Rights Act has been the law of the land for nearly half a century, helping to ensure that minorities are not denied the right to vote. On Wednesday, Shelby County, Ala., challenged the law at the Supreme Court.

The arguments sharply divided the justices: The court's conservative majority appeared poised to strike down at least part of the act and eliminate the current federal oversight of voting in the South.

At issue is a decades-old provision in the law that requires nine states, mostly in the South, to get approval from the federal government before changing voting laws or procedures.

Justice Antonin Scalia called it a "racial entitlement."

Chief Justice John Roberts asked if the government believed "the citizens in the South are more racist than citizens in the North." Roberts said current data on voter turnout revealed more problems in Massachusetts than in Mississippi.

Congress did not rely on current data when, in 2006, it reauthorized the Voting Rights Act. It continued to rely on rates of minority voter registration and turnout in the elections of 1964, 1968 and 1972.

Will the Voting Rights Act survive the Supreme Court?
Proposed changes to Voting Rights Act stir controversy in Alabama

Alabama attorney Frank Ellis said Congress should look at the modern-day South.


Frank Ellis

Frank Ellis


/

CBS News

"We ask for some recognition that we and these other converted jurisdictions have made great strides over the last 48 years," Ellis said.

The liberal justices strongly defended the law, saying Congress had thousands of pages of evidence documenting discrimination.

"Discrimination is discrimination, and what Congress said is it continues," Justice Sonia Sotomayor said.

Justice Stephen Breyer said, "The disease is still there ... it's gotten a lot better, a lot better, but it's still there."


Debo Adegbile

Debo Adegbile


/

CBS News

That's why civil rights attorney Debo Adegbile said the provision is as necessary today as a generation ago.

"The problems are much more serious, much more repetitive, there is a much greater continuity in certain places than others," Adegbile said.

The liberal justices -- and the Obama administration -- say the court should defer to Congress, which they say is was better situated to make judgments about discrimination in voting. But based on the arguments today, it does appear a majority of the conservative judges are ready to tell Congress it's going to have to make some changes in that law.

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Holder Says Sequester Makes America Less Safe












The looming budget sequestration will make Americans less safe, Eric Holder says—and anyone who says otherwise isn't telling the truth.


"This is something that is going to have an impact on the safety of this country," the U.S. attorney general told ABC's Pierre Thomas on Wednesday in a wide-ranging, exclusive interview.


"And anybody that says otherwise is either lying or saying something that runs contrary to the facts," Holder said.


In his interview with ABC News, Holder reiterated warnings that if automatic spending cuts are triggered on Friday, the Justice Department will be handicapped in some of its most vital missions to prevent terrorist attacks and crime.


"The Justice Department is going to lose nine percent of its budget between now and September 30th. We're going to lose $1.6 billion. There are not going to be as many FBI agents, ATF agents, DEA agents, prosecutors who are going to be able to do their jobs," Holder said. "They're going to be furloughed. They're going to spend time out of their offices, not doing their jobs."


Portions of the interview will air Wednesday, February 27 on "ABC World News"






Patrick Semansky/AP Photo











Eric Holder Says Homegrown Terror Threat Equals International: Exclusive Watch Video









Eric Holder Remembers Newtown, His Worst Day on the Job: Exclusive Watch Video







President Obama's Cabinet members have been warning for weeks that budget sequestration, which will begin Friday unless Obama and Republicans reach a deficit-reduction deal to avoid it, will leave their agencies shorthanded and could bring about disastrous consequences. Homeland Security Secretary Janet Napolitano and Transportation Secretary Ray LaHood have both appeared at the White House press briefing room to warn that furloughs for border-patrol agents, TSA agents and air-traffic controllers will mean weakened border and port security, longer waits in airport security lines, and logjammed air travel.


Holder, for his part, warned in a Feb. 1 letter to the Senate Appropriations Committee that cuts to the FBI, the ATF, the U.S. Marshals Service, and U.S. Attorneys would limit the department's capacity to investigate crimes. Cuts at the Bureau of Prisons, Holder wrote, would mean lockdowns and potential violence, with fewer staff members on hand. In a separate letter, FBI Director Robert Mueller warned that counterterrorism operations would be affected, with the possible elimination of some joint terrorism task forces with state and local police. Limited surveillance and slower response times would mean unwatched targets and the possibility that individuals on terrorism watch lists could gain entry to the U.S.


"FBI's ability to proactively penetrate and disrupt terrorist plans and groups prior to an attack would be impacted," Mueller wrote.


To Holder, the problem is simple.


"If you don't have prosecutors and agents doing what we expect them to do, and we won't if this thing actually takes place, we are going to be a nation that is going to be less safe. And that is simple fact," Holder said.


Some Republicans have claimed the Obama administration is exaggerating the sequester's purported consequences as a ploy to campaign for tax hikes. On "Fox News Sunday" this week, Sen. Tom Coburn, R-Okla., posited that federal agencies enjoy enough flexibility to avoid the worst consequences of the cuts.


On Wednesday, Holder acknowledged that the Justice Department will do what it can to avoid compromised security, while maintaining that furloughs can't be avoided.






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Benedict: Pope aware of his flaws?




Pope Benedict XVI delivers his last Angelus Blessing to thousands of pilgrims gathered in Saint Peter's Square on February 24.




STORY HIGHLIGHTS


  • Sister Mary Ann Walsh: Pope Benedict acknowledged that he made mistakes

  • Walsh: In firestorm over scholarly quotes about Islam, he went to great lengths to atone

  • Walsh: Similarly, he quickly reversed a decision that had angered Jews and repaired ties

  • Even his stepping down is a nod to his humanity and his love of the church, she says




Editor's note: Sister Mary Ann Walsh is director of media relations for the U.S. Conference of Catholic Bishops and a member of the Sisters of Mercy of the Americas Northeast Regional Community. She is a former foreign correspondent at Catholic News Service (CNS) in Rome and the editor of "John Paul II: A Light for the World," "Benedict XVI: Essays and Reflections on his Papacy," and "From Pope John Paul II to Benedict XVI."


(CNN) -- One of the Bible's paradoxical statements comes from St. Paul's Epistle to the Galatians: "Power is made perfect in infirmity."


The poetic statement proclaims that when we are weak, we are strong. Pope Benedict XVI's stepping down from what many consider one of the most powerful positions in the world proves it. In a position associated with infallibility -- though that refers to formal proclamations on faith and morals -- the pope declares his weakness.



Sister Mary Ann Walsh

Sister Mary Ann Walsh



His acceptance of frailty speaks realistically about humanity: We grow old, weaken, and eventually die. A job, even one guided by the Holy Spirit, as we Roman Catholics believe, can become too much for us.


Acceptance of human frailty has marked this papacy. We all make mistakes, but the pope makes them on a huge stage.


He was barely into his papacy, for example, when he visited Regensburg, Germany, where he once taught theology. Like many a professor, he offered a provocative statement to get the conversation going. To introduce the theme of his lecture, the pope quoted from an account of a dialogue between the Byzantine Emperor Manuel II Paleologus and an unnamed Muslim scholar, sometime near the end of the 14th century -- a quote that was misinterpreted by some as a condemnation of Mohammed and Islam.


Opinion: 'Gay lobby' behind pope's resignation? Not likely


Twice, the pope emphasized that he was quoting someone else's words. Unfortunately, the statement about Islam was taken as insult, not a discussion opener, and sparked rage throughout the Muslim world.


The startled pope had to explain himself. He apologized and traveled two months later to Istanbul's Blue Mosque, where he stood shoeless in prayer beside the Grand Mufti of Istanbul. Later he hosted Muslim leaders at the Vatican at the start of a Catholic-Muslim forum for dialogue. It was a human moment -- a mistake, an apology and atonement -- all round.










A similar controversy erupted when he tried to bring the schismatic Society of St. Pius X back into the Roman Catholic fold.


In a grand gesture toward reconciliation, he lifted the excommunication of four of its bishops, unaware that one, Richard Williamson, was a Holocaust denier. This outraged many Jews. Subsequently the Vatican said the bishop had not been vetted, and in a bow to modernity said officials at least should have looked him up on the Internet.


In humble response, Benedict reiterated his condemnation of anti-Semitism and told Williamson that he must recant his Holocaust views to be fully reinstated. Again, his admission of a mistake and an effort to mend fences.


News: Scandal threatens to overshadow pope's final days


Pope Benedict XVI came from a Catholic Bavarian town. Childhood family jaunts included trips to the shrine of the Black Madonna, Our Lady of Altotting. He entered the seminary at the age of 13. He became a priest, scholar and theologian. He lived his life in service to the church. Even in resigning from the papacy, he embraces the monastic life to pray for a church he has ever loved.


With hindsight, his visit to the tomb of 13th century Pope Celestine V, a Benedictine monk who resigned from the papacy eight centuries before, becomes poignant.


In 2009, on a visit to Aquila, Italy, Benedict left at Celestine's tomb the pallium, a stole-like vestment that signifies episcopal authority, that Benedict had worn for his installation as pope. The gesture takes on more meaning as the monkish Benedict steps down.


We expect the pope to be perfect. Catholics hold him to be the vicar of Christ on earth. He stands as a spiritual leader for much of the world. Statesmen visit him from around the globe. He lives among splendid architecture, in the shadow of the domed St. Peter's Basilica. All testify to an almost surreal omnipotence.


Complete coverage of the pope's resignation


In this world, however, walked a vulnerable, human person. And in a paradox of life, his most human moment -- giving up the power of office -- may prove to be his most potent, delivering a message that, as St. Paul noted many centuries ago, "Power is made perfect in infirmity."


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Mary Ann Walsh.






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Batman to lose son Robin






NEW YORK: Batman may be able to save the world, but he'll lose his sidekick Robin -- who in his current incarnation as his son -- in the upcoming Batman Incorporated comic book series.

DC Comics said the caped crusader's acrobatic young assistant, Batman alter ego Bruce Wayne's son Damian, will die in Wednesday's issue number eight.

"This master theme of damaged and ruined families was nowhere more in evidence than in the creation of Damian, the first 'Son of Batman' to be acknowledged in the canon," series writer Grant Morrison said in a statement.

"In many ways this has been Damian's story as much as it has been the story of Bruce Wayne and it's a story that had its end planned a long time ago -- for what son could ever hope to replace a father like Batman, who never dies?"

The good news for those who might miss Robin is that this is the comics universe and characters who are killed can easily return. Even a previous incarnation of Robin was killed and resurrected before.

"You can never say never in a comic book," Morrison told the New York Post. "Batman will ultimately always have a partner."

-AFP/gn



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Meet the new Pentagon chief: former Army Sgt. Chuck Hagel






STORY HIGHLIGHTS


  • Senate votes 58-41 to confirm former Nebraska senator, a Republican

  • Fight for Cabinet post was deeply partisan, uphill battle for Hagel

  • NEW: Obama says he will rely on Hagel's counsel on national security issues

  • NEW: Hagel pledges to work with Congress; Will be sworn in on Wednesday




Washington (CNN) -- Chuck Hagel's rocky and inauspicious path to leadership of the Pentagon could haunt him if he doesn't watch his step.


"If people feel Hagel makes a mistake in the future, they will come after him even harder than if this ugly process of recent weeks hadn't happened," said Michael O'Hanlon, a senior fellow at the Brookings Institution and a co-author of "Bending History: Barack Obama's Foreign Policy."


The former Nebraska senator's nomination as defense secretary was subject to harsh criticism from some fellow Republicans over past statements on sensitive political and national security matters.


His shaky performance at his confirmation hearing and the subsequent fierce political wrangling over his selection and on unrelated matters did not help his case.


But efforts to further delay his nomination were swept away on Tuesday as the Senate confirmed him, 58-41, with a handful of Republican votes in his corner. Hagel will be sworn in on Wednesday, succeeding Leon Panetta.






President Barack Obama, a former Senate colleague, called Hagel a patriot who "fought and bled for our country."


Obama said he will count on Hagel's "counsel and judgment" as the United States ends combat operations in Afghanistan and stays "ready to meet the threats of our time."


The task for Hagel, 66, going forward is to swiftly move past the protracted nomination battle, prove himself a strong and capable Pentagon chief, and repair relationships on Capitol Hill, said Fran Townsend, a former homeland security adviser to President George W. Bush.


"Of course, when he walks through the door he is bruised and battered. But I think we shouldn't overestimate the impact of that," Townsend said. "Frankly, once he is confirmed as secretary of defense and once he sits in the seat and takes on the mantle of responsibility, everyone in the Pentagon is going to stand up and salute smartly, as well they should."


Hagel, a decorated Vietnam veteran, said in a statement that he was honored to have been nominated and confirmed, and pledged to work closely with Congress to "ensure that we maintain the strongest military in the world."


With Hagel's confirmation, Obama has put in place another crucial piece of his second-term national security team. John Kerry has been installed as secretary of state and John Brennan is awaiting Senate action on his nomination to be CIA director. Thomas Donilon is already serving as national security adviser.


O'Hanlon said Hagel would not "be damaged goods" and the political outcry over his nomination would quickly be overshadowed by the latest budget drama engulfing Washington over spending cuts, which would hit the Pentagon hard, if enacted.


Bad feelings about Hagel stem, in part, from his 2007 comments that the "Jewish lobby intimidated lawmakers." Republicans who are already uncomfortable with Obama's policies toward Israel are uneasy about a defense secretary holding such views.


Israel's ambassador to the United States, Michael Oren, said in a statement that Israel "looks forward to working closely" with Hagel.


Hagel's criticism of the Iraq War, the Patriot Act, and his past positions on Iran and on U.S. military intervention also raised red flags with his opponents.


Moreover, he spoke about an ambassadorial nominee in the late 1990s as being "openly, ggressively gay," remarks for which he has since apologized. Obama ended the prohibition on gays and lesbians serving openly in the military.


And Hagel hasn't been sparing in his criticism of conservative and GOP figures, saying radio show hosts like Rush Limbaugh "try to rip everybody down" but "don't have any answers," and labeling George W. Bush as callous on Iraq when he was president.


Last week, 15 GOP senators sent a letter to Obama calling on him to withdraw Hagel's nomination.


Arizona Sen. John McCain, the ranking Republican on the Senate Armed Services Committee and a fierce Hagel critic, did not sign the letter. But he led the charge against him in the Senate, stalling the nomination at one point in exchange for more information from the White House on the deadly September terror attack on the U.S. diplomatic mission in Benghazi, Libya.


The real reasons why conservative groups are still going after Hagel


That sentiment gained traction in conservative circles.


"There is simply no way to sugar coat it. Senator Hagel's performance before the Senate Armed Services Committee was remarkably inept and we should not be installing a defense secretary who is obviously not qualified for the job and who holds dangerously misguided views on some of the most important issues facing national security policy for our country," said Republican Sen. John Cornyn of Texas.


Vote no and send a message to Hagel


There was a healthy serving of politics behind the Hagel pushback, some experts say. He isn't the only potential member of Obama's first or second-term Cabinet to be grilled during the nomination process.


At the start of his first term, Obama's pick to lead the Treasury Department, Timothy Geithner, emerged from a tough confirmation fight in the wake of recession to help push through Wall Street reform as well as the banking and auto industry rescues. His successor, Jack Lew, is expected to be confirmed.


Some Republicans also believed that Hagel, like Susan Rice, was vulnerable in a divided political climate in Washington made more sharply partisan by Obama's re-election, according to experts.


Rice, the U.S. ambassador to the United Nations, withdrew her name from consideration for secretary of state after drawing heavy criticism from McCain and other Republicans over her public statements about the Benghazi attack.


Democratic supporters of Hagel came to his defense this week as the vote drew near.


"The president wants him in the room as he's making important decisions. There's no question about his integrity of character. I think the president deserves to have the Cabinet he wants as long as the person is qualified," Missouri Democratic Sen. Claire McCaskill said on "Fox News Sunday."


The consternation over Hagel's confirmation has been "kabuki theater," said David Rothkopf, editor of Foreign Policy magazine.


"The political divisions that dictated the pace and twists of his confirmation process pre-date him and will post-date his confirmation," Rothkopf said. "The reality is that Hagel won't drive (defense) policy, the president and Hill politics will."


And time will heal even these political wounds, Rothkopf said.


CNN's Kevin Liptak and Barbara Starr contributed to this report.






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Dozens of prominent Republicans sign brief backing gay marriage

Matthew Wiltse, right, places a wedding ring on the finger of Jonathon Bashford as they took their wedding vows before Superior Court Judge Chris Wickham at the Thurston County Courthouse just after midnight on Sunday, Dec. 9, 2012, in Olympia, Wash. / AP Photo/Rachel La Corte

More than 80 "conservative voices" have signed onto a legal brief supporting the notion that same-sex couples should have a fundamental right to marriage.

The brief is in support of the plaintiffs in the Hollingsworth v. Perry case now before the Supreme Court, which challenges California's Proposition 8 barring same-sex marriage. The case, which will be argued starting in late March, could result in the invalidation of statewide bans on same-sex marriage across the country. It is one of two same-sex marriage cases being considered this term by the Supreme Court; the other challenges the Defense of Marriage Act, which bars federal recognition of same-sex marriage.

Among the signatories to the letter are former Republican Governors Christie Todd Whitman and Bill Weld; Rep. Ileana Ros-Lehtinen, R-Fla.; former Republican Reps. Deborah Pryce and Mary Bono Mack; 2012 presidential candidates and former governors Gary Johnson and Jon Huntsman; and former Republican National Committee chair Ken Mehlman, the onetime George W. Bush campaign manager who has since come out as gay.

Notably not among the signatories are some Republicans who have expressed support for same-sex marriage in the past, including Dick Cheney and Laura Bush.

The American Foundation for Equal Rights, which organized the effort, said more names will be added before the brief is filed. The brief was first reported by the New York Times, which reported that it made the case that same-sex marriage reflects conservative values of "limited government and maximizing individual freedom."

Among those working to legalize same-sex marriage are conservative lawyer and former Solicitor General Theodore B. Olson, who was among the first prominent conservatives to express support for same-sex marriage. Same-sex marriage supporters hope the fact that numerous well-known conservatives and Republicans are signatories to the brief will help sway conservative justices.

"The conservative movement toward the freedom to marry is what we like to call the 'Ted Olson effect,'" said AFER executive director Adam Umhoefer. "We value the support of our conservative colleagues and welcome their voices to the growing majority of Americans who stand for marriage equality."

CBS News polling has found that a majority of Americans believe same-sex marriage should be legal, though more than six in ten said it should be left to the states to decide. House Speaker John Boehner and most Republicans in Congress oppose both federal recognition of same-sex marriage and a mandate that it be recognized by the states.

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Arias Liked Some Kinky Sex, She Admits












Though accused murderer Jodi Arias said she sometimes felt "like a prostitute" at the hands of her ex-boyfriend, Travis Alexander, she admitted today that she often enjoyed their sex life and even suggested sex acts they could try.


Prosecutor Juan Martinez, after a day of aggressive questioning and bickering with Arias, asked her about her own suggestions for her sex life with Alexander, including a phone conversation in which she suggested using sexual lubricant.


Arias, 32, is accused of killing Alexander, but claims it was in self-defense.
Timeline of the Jodi Arias Trial


"You introduced KY Jelly into the relationship to make it more sexually enjoyable, right? When we're talking about the level of experimentation, it looks like both of you were experimenting together sexually. So when we hear things like, 'I felt like a prostitute,' that's not exactly true, is it?" Martinez said.


"It was often mutual," Arias said. "I didn't feel like a prostitute during, just after."










Jodi Arias Testimony: Prosecution's Cross-Examination Watch Video









Jodi Arias Remains Calm Under Cross-Examination Watch Video





Martinez showed the jury a text message Arias sent offering to perform oral sex on Alexander, comparing it to a statement she made on direct testimony saying that she once felt like a prostitute when Alexander tossed a piece of chocolate at her and walked away without a word after she performed oral sex.


"How is it you can say you 'felt like a prostitute' when you're moving the relationship ahead like this?" Martinez asked. "The act itself is the same thing, and here you're requesting it. The geography is different, but that aside, isn't it the same act? And you're requesting it?"


"When he (ejaculated) and left afterward I felt like a prostitute. When we mutually went through things together I didn't," she said.


Arias also admitted that she sent Alexander a topless photo of herself after he sent her photos of his penis, and that she only did it after she had her breasts enhanced surgically.


Catching Up on the Trial? Check Out ABC News' Jodi Arias Trial Coverage


The testimony came as Martinez continued his efforts to discredit Arias' testimony on the stand, including her statements that she often succumbed to Alexander's sexual fantasies so she wouldn't hurt his feelings. Martinez has focused on portraying Arias as a liar for much of his direct examination.


Arias is charged with murder for killing her ex-boyfriend Travis Alexander at his home in Mesa, Ariz., in June 2008. She claims she killed him in self defense and that he had been increasingly violent and sexually demanding in the months before the confrontation. She also claimed he was interested in young boys.


The prosecution claims she killed him in a jealous rage. She could face the death penalty if convicted of first degree murder.

Jodi Arias Trial See Tempers Flare



Earlier in the day,tempers flared between Arias and prosecutor Martinez as the prosecutor tried to detail Arias' history of spying on her boyfriends, but Arias complained that his aggressive style of questioning made her "brain scramble."


Arias and Martinez, who have sparred throughout two prior days of cross-examination, spent more than 10 minutes bickering over Martinez's word choices and his apparent "anger."


The morning's testimony, and Martinez's points about Arias' alleged spying, were largely interrupted by the spats.


"Are you having trouble understanding me?" Martinez yelled.


"Yes because sometimes cause you go in circles," Arias answered.






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