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With California a day away from issuing IOUs instead of paying its bills, Gov. Schwarzenegger and the legislature remain at odds over how to close a now $26.3 billion deficit. Schwarzenegger on Thursday ordered a third unpaid furlough day for 235,000 state employees. With its $1.7 trillion economy sputtering and 11.5% unemployment surging, California's difficulty in balancing its budget could affect the national recovery...

Author: /time Magazine | Title: How California's Fiscal Woes Began: A Crisis 30 Years in the Making | 7/1/2009 | See Source »

...text message on Thursday afternoon that gave Holley the first hint of bad news - a note saying Jackson had been rushed to the hospital. Neither he nor the crew knew how to react to the uncertainty, so they did what they always did - they went in to rehearse. Except this time, as fans all over the world from Los Angeles to New York City to Tokyo to Buenos Aires played his music, sang his songs and emulated his dance in tribute, Holley says the crew couldn't bring themselves to touch the music...

Author: /time Magazine | Title: What Michael Jackson Did on His Last Day | 6/29/2009 | See Source »

...reason for canceling Thursday's scheduled meeting in Paris between Benjamin Netanyahu and George Mitchell was simple: there was nothing for the Israeli Prime Minister and President Obama's Middle East peace envoy to discuss. The U.S. has demanded a complete freeze in Israeli settlement construction in territories conquered in 1967, making it a litmus test of Israel's bona fides in pursuing the two-state solution, which the Obama Administration has prioritized. Netanyahu, who faces more public pressure from Washington than any Israeli leader in nearly two decades, says he wants peace talks and recently declared his qualified support...

Author: /time Magazine | Title: Will Iran Take the Heat Off Israel over Settlements? | 6/29/2009 | See Source »

...face of such overwhelming force, opposition leader Mousavi has held back from calling for further protests and on Thursday said he would file for permits for future protests...

Author: /time Magazine | Title: Which State Security Branch Rules Tehran's Streets? | 6/28/2009 | See Source »

...Angeles Times that Murray, who has filed for bankruptcy in the past and has financial problems, was hired by Jackson's concert promoter, AEG Live, to live with Jackson and care for him during his upcoming shows. Los Angeles law-enforcement authorities towed Murray's vehicle on Thursday night, saying the car could contain "medications pertinent to the investigation" into Jackson's death...

Author: /time Magazine | Title: Did Drugs Kill Michael Jackson? | 6/27/2009 | See Source »

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