NPR 2009-03-04

Federal Reserve Board Chairman Ben Bernanke says the US must take further steps to stabilize 1 the banking 2 system even though, he says, doing so will add to the federal deficit 3. NPR's Scott Horsley reports.

Ben Bernanke told the Senate Budget Committee that unless the financial system can be stabilized 4, the US is unlikely to sustain any economic recovery. The Fed chairman says the government's actions since last fall helped prevent a collapse 5 of the banking system, but he says that system is still under stress and needs more government help even though the resulting deficits 6 are regrettable. "Our economy and financial markets face extraordinary challenges, and a failure by policymakers to address these challenges in a timely way would likely be more costly 7 in the end." The Fed says it's moving forward with a previously 8 announced plan to boost credit to consumers and small businesses. Bernanke says the first loans under that program will be made later this month. Scott Horsley, NPR News, Washington.

Major US automakers are weighing in with lackluster February sales numbers today. General Motors says sales fell 53% compared to the same month a year ago. No. 2 domestic automaker Ford 9 says its sales were down 48%. Mark Fields is Ford's president of the Americas. He says consumers are simply too afraid to buy a new car now given what's going on with the economy. "They are worried about the credit situation; someone may be worried about their job situation. So it's been reflected in the sales for cars." Also weighing in with weaker February sales numbers were Chrysler and Toyota, both of which saw more than 40% sales declines last month.

Cuba watchers are analyzing 10 the major shake-up of the Havana government announced on state television Monday. NPR's Jason Beaubien reports.

The consensus 11 is that the President Raul Castrol has finally moved to put his own stamp on the Cuban government. Raul took over from his ailing 12 brother Fidel in 2006, but he's made only limited changes to the island's communist system or to the top functionaries 13. On Monday, state-run television announced the ouster of more than ten of Cuba's highest-ranking government officials including the Ministers of Labor 14, Finance, Economy, Food and Fisheries, and Internal Commerce. Also demoted were two of the most powerful men in the government, Foreign Minister Felipe Perez Roque and Vice 15 President Carlos Lage. Raul replaced them with longtime confidants and generals from the military. Analysts 16 say Raul appears to be purging 17 his government of Fidel loyalists and installing people closer to himself. Jason Beaubien, NPR News, Mexico City.

Coast Guard officials now say they have called off the search for two missing NFL players and another man off the coast of Florida. The men missing since Saturday were aboard a small fishing boat. One man was found clinging to the boat yesterday by the Coast Guard. The four left on a fishing trip Saturday but later ran into bad weather and high seas.

On Wall Street today, the Dow Jones Industrial Average fell 37 points to close at 6,726. The S&P was down 4 points today.

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Deaths among Iraqi civilians 18 and security forces last month have fallen to their second lowest level in some four years. That's according to an Associated Press poll. The count of 283 war-related deaths in February shows a slight increase on the previous month, but still continues the overall trend of declining violence in the country in recent months. According to the AP count, December of 2006 was the deadliest month for Iraqi civilians and security forces with more than 2,300 deaths.

National Endowment for the Arts or NEA has announced guidelines today for how arts groups can receive emergency funding from the economic stimulus 19 package. More from NPR's Elisabeth Blair.

After some debate, the final American Recovery and Reinvestment Act included a small allotment, a 50-million dollars, for the National Endowment for the Arts, which distributes ongoing 20 grants to art groups in the US. Forty percent of the money will go to state and regional arts groups; sixty percent will be awarded through competitive direct grants. All applicants 21 must demonstrate how they'll use the money to preserve jobs, either salaried employees or artists who work on a contractual basis. Among the other requirements, applicants must have received NEA funding in the last four years. It's estimated that more than five million people work in the arts industry and that unemployment in the sector 22 now is about 12%. Elisabeth Blair, NPR News.

Scientists have announced the discovery of a new moon near Saturn 23. Officials say the faint moon was found in one of Saturn's dazzling outer rings by the international Cassini spacecraft. The discovery of the new moon about a third of a mile wide was announced and noticed now by the International Astronomical 24 Union. Saturn has over five dozen moons.