** Judd Gregg Withdraws
*AP: "Republican Sen. Judd Gregg says he pulled out for the job of commerce secretary because he felt uncomfortable being unable to support President Barack Obama 100 percent of the time. Gregg says that in his words, 'I'm just going to be a little too conservative' on fiscal spending issues."

*The Wall Street Journal outlines the timeline as follows: Gregg called Rahm Emanuel Monday to request a meeting and hinted at "second thoughts." Wednesday night, he expressed his growing concerns, but Obama did not learn of the decision until Thursday.

*George Stephanopoulos says it's an embarrassment for both men, and stunning because "the courtship between the president and Gregg went on for several weeks." But White House sources tell him a new Commerce Secretary could be chosen within days.

*White House chief of Staff Rahm Emanuel: "Some may call it amateur hour. Having been in two separate White Houses, I'd more than - and within our third week given this set of accomplishments - measure them up." More: "I think the president has always indicated there will be days where there are setbacks, days where there will be disappointments, but as long as we're moving forward those will be bright days not just for us but in fact the American people. Let's be honest: will the economic recovery or Judd Gregg be a bigger discussion point a week from now?"

*Washington Post: "The episode underscored how burdensome Cabinet selection has become for the new administration, which has watched nearly half a dozen of its top appointees withdraw or face embarrassing scrutiny over the past several weeks. The slip-ups have caused the White House to revamp its vetting process and have slowed down confirmations for nominees already in the pipeline. And now Obama is left with two key openings -- at the departments of Commerce and Health and Human Services -- and more questions about his personnel choices."

*President Obama joked about the whole situation during an interesting speech in Springfield last night honoring Abe Lincoln. "In 1854, Lincoln was simply a Springfield Lawyer. He'd served just a single term in Congress. Possibly in his law office, his feet on a cluttered desk, his sons playing around him, his clothes a bit to small to fit his uncommon frame. ... Maybe wondering if someone might call him up and offer to be Commerce Secretary."

*Karl Rove, Larry Sabato, Doug Schoen and others respond in the Washington Post to Gregg's withdrawal of consideration for Secretary of Commerce. Sabato: "The Gregg withdrawal can be a watershed. It's been a grand and noble experiment, but now the Obama administration should abandon aggressive bipartisanship."

*Obama did an interview with the Springfield State Journal-Register, talking about Blago fallout, some stimulus politics, and of course Gregg. "You know, Mr. Gregg approached us with interest and seemed enthusiastic," the president said. "But ultimately, I think, we're going to just keep on making efforts to build the kind of bipartisan consensus around important issues that I think the American people are looking for."

*In New Hampshire, Senate candidate Paul Hodes: "I am surprised and disappointed at this sudden withdrawal. Senator Gregg would take us back to the years of George W. Bush rather than moving forward with the change agenda that the American people clearly want. I will continue to work with President Obama to create jobs and rebuild our economy for the middle class." The Union Leader also notes that Gregg's birthday is Saturday.

*Does Gregg's withdrawal improve the chances of Kansas Gov. Kathleen Sebelius becoming HHS Secretary? That's what the Kansas City Star writes.

**President Obama
* At the Caterpillar plant yesterday, Obama again said that the company would scale back plans for layoffs if the stimulus plan passed, the New York Times reports. But Jim Owens, Caterpillar's CEO, did not repeat the pledge, and told reporters later "that he thought the company might even have to lay off more employees before the economy began to turn around later this year or next."

*Reagan biographer Lou Cannon, in the NYT's 100 Days blog: "Being comfortable in one's own skin does not guarantee a successful presidency. If it did, George W. Bush would be accorded higher marks than he receives from most historians and the American people. But optimism, a sense of normalcy, and a determination to keep in touch with the people you have inspired are useful attributes for any president."

*A shred of good news, however: Leon Panetta was confirmed as the CIA director.

**Stimulus
*AP looks at the "highlights" of the bicameral-compromised stimulus bill.

*CNN: "The House, which had originally planned to vote on the package Thursday, was forced to delay until Friday after many rank-and-file Democrats who were unhappy with some spending cuts demanded time to read the compromise measure."

*It's not a partisan issue, it's House vs. Senate now. The Hill reports that members of the lower chamber "are furious with the Senate on its handling of the economic stimulus bill." A House leadership aide promises a different strategy in the future: "We will tell the Senate Democratic leadership to let the GOP filibuster. The House is not going to move on what the Senate passes and give in during conference like we have been doing."

*USA Today looks at how the stimulus package will affect you. "The non-partisan Congressional Budget Office says the bill could increase employment in a range of 800,000 to 2.3 million jobs by the fourth quarter of 2009 and 1.2 million to 3.6 million by the fourth quarter of 2010."

*The St. Pete Times reports that Charlie Crist is taking some heat from fellow Republicans for his public support of Obama's stimulus plan. "I don't think he's helped any national Republican ambitions he may have by stepping up to the plate and batting for the other team," said Republican consultant Alex Castellanos. "There's a difference between working in a bipartisan way for the common good and switching sides and putting on the other team's jersey. At the one moment when we've finally found our voice and remember who we are as Republicans, Charlie Crist forgets. It's stunning."

** Campaign Stuff: DSCC chair Bob Menendez said he thinks Democrats can build on their Senate majority in 2010. Obama won three of the five states with retiring GOP senators, and Menendez said a combination of local and national factors make four other Republican-held seats vulnerable -- Louisiana, North Carolina, Kentucky and Pennsylvania. "They just don't get it," Menendez said of his Republican colleagues, "How many more people need to lose their jobs?"

-- Mike Memoli and Kyle Trygstad