Here's today's run-down on the Congressional races: The Dems are hammering away at Republicans over the financial crisis, raising questions on everything from regulation to the potential impact on Social Security -- and it may be working.

Dems Blast Sununu For Anti-Regulation History
New Hampshire Democrats are hitting Sen. John Sununu (R) on the market crisis, circulating to local media tapes of Sununu in 2006 and 2007, praising hedge funds and badmouthing regulation of the financial markets:

Dems Keep Up Spending On House Race Attack Ads
The DCCC spent $1.8 million on a round of attacks against GOP candidates in last night's FEC filings, covering 20 races in 14 states. Most signifiant is the spending of over $450,000 in three Ohio races. Here's one of those ads:

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Here's tonight's run-down on the Congressional races: The Dems are leveraging their big financial advantage over the GOP into an extensive round of attack ads against the Republicans, in order to pick up some usually-tough seats this November.

National Dems Launch New Wave Of Attack Ads In House Races
The DCCC has launched a major TV attack ad offensive in districts across the country, some of them defending Dem-held seats but others running in GOP-held areas that are traditionally very difficult for the Dems. Ads will be running in Alabama, Arizona, Connecticut, Florida, Kentucky, Louisiana, New Jersey, New Mexico, New York, Ohio, Virginia and Wisconsin. Here's one of the ads, running in a deep-red New Mexico district:

New York GOP Trying To Dump Candidate For Key House Seat
The race for the open seat of scandal-plagued Rep. Vito Fossella (R-NY) just keeps getting weirder, with Manhattan Republicans now nominating unpopular GOP nominee Bob Straniere for an open judgeship as a means of getting him to drop out of the race -- but Straniere is refusing. National Republicans feel that their chances of holding the seat could potentially improve if they can substitute Fossella himself as the new candidate, but they're not optimistic that it will actually happen.

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Here's tonight's rundown on the Congressional races: It wasn't a good day for the GOP, with a mixture of legal defeat, the wrong candidate winning the nomination for a key seat, and tough counter-attacks from the Dems.

Democrats Win Court Battle In Mississippi Senate Race
In a surprise victory for the Dems, the Mississippi Supreme Court has ruled against the efforts by GOP Gov. Haley Barbour to bury the hotly-contested special election for Senate at the bottom of the physical ballot used on Election Day, where lower-information voters might have overlooked it. Oddly enough, though, the court declined to issue a formal order that Barbour must change the ballot, but only threatened to issue one if he did not comply from here on out.

Late Update: Barbour's office says he will comply with the ruling.

NY Conservatives: No, We're Not Nominating Fossella
A leader of the New York Conservative Party is ruling out the possibility of subbing in scandal-plagued retiring Rep. Vito Fossella (R) as their new nominee for Congress. "No, absolutely not," said Brooklyn party chairman Jerry Kassar, in an interview with Election Central. "He is not under consideration, nor has he requested consideration."

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Here's today's rundown on the Congressional races: It's shaping up to be a pretty good day for the Dems, with good poll results and new lines of attack emerging against their Republican opponents in key races.

Conservative Drops Out In Race For Fossella's Seat -- Could Vito Come Back?
Paul Atanasio, the New York Conservative Party's candidate for the open seat of scandal plagued Rep. Vito Fossella, has dropped out of the race via a nomination for a judgeship. This method of withdrawal allows the party to replace him on the ballot with a new candidate -- creating the small possibility that Fossella himself, who is said to be looking at a way to get back into the race, could re-enter on the Conservative line. We'll be looking into this further.

Shaheen Goes After Sununu on Stem Cells, Wall Street
Dem Senate candidate Jeanne Shaheen is stepping up attacks on incumbent Sen. John Sununu (R-NH). Shaheen is hitting Sununu on the financial crisis, blaming the lack of federal oversight and Sununu's lack of leadership on the Senate Banking Committee, and next week she'll be campaigning with Michael J. Fox for increased federal funding for stem-cell research.

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The already topsy-turvy race for New York's 13th Congressional District could get even crazier. According to the New York Daily News, incumbent Rep. Vito Fossella, who was forced into retirement by a series of personal scandals, may be trying to maneuver his way back on to the ballot.

Furthermore, district residents have received polling calls from persons unknown, asking them about the possibility of a Fossella comeback.

Former Rep. Guy Molinari, an elder statesman of the Staten Island GOP, told Election Central that friends of his have gotten these calls. "They asked about the impact of his being arrested of driving while intoxicated, would that -- they asked about the affair he had, would that change your voting," Molinari said.

It's unclear exactly what impact this would have on Dem efforts to pick up this usually-Republican district. Democratic nominee Mike McMahon is favored to defeat Republican Robert Straniere -- but it's simply an unknown as to whether Fossella would be much of an improvement over Straniere.

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There's been yet another bizarre turn in the GOP's eternal quest to find a candidate for the key House seat in New York's 13th district, which is expected to be one of this fall's most hotly-contested races.

The latest: The GOP has finally found someone to make the race, former Assemblyman Robert Straniere -- but one of the state's most prominent Republicans is vowing to destroy his candidacy!

"I'm going to do everything in my power to stop him," said former Rep. Guy Molinari, who used to represent the area and is one of the biggest GOP names in New York, in an interview with Election Central. "And if that means defeating him and a Democrat wins, that's okay, too. I would rather have someone that's honest and would do what's right for the country, than support him."

"He lies about everything," Molinari later added. "How do you pick a man like that to go to Congress?"

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In yet another sign of the disarray gripping GOP ranks, a top Republican in New York is now flatly stating that the party is such a mess that they are very likely to lose a key House seat in the state.

The race in question is that wacky contest we've been posting about here regularly -- the battle to take over the open seat of Vito Fossella, who announced his retirement after a personal scandal.

"The overall lay of the land is that the Republican Party in Staten Island is a great big mess," said former Rep. Guy Molinari, an elder statesman among Staten Island Republicans, when I called to check in on the state of the race. "It's shameful and embarrassing to people like myself, who've been active since -- actually decades."

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WaPo: Obama Got Discounted Home Loan
The Washington Post casts a critical eye on Barack Obama's reformer image this morning, with a report that he received a home loan in 2005 with a below-average interest rate, saving him as much as $300 per month. The Obama campaign said that the interest rate was low due to competition from a competing bank, as well as other factors that went into the rate calculation.

Obama To Speak On Public Service, Address Steelworkers
Barack Obama will be delivering a speech today in Colorado Springs -- a Republican stronghold in a swing state that he is trying to move into the Democratic column -- and deliver a speech on national service. He will also address the United Steelworkers annual convention in Las Vegas via satellite, an effort to secure support among union members and blue-collar workers.

McCain Speaking Today In Mexico
John McCain will be delivering a speech today in Mexico City, part of his tour this week of Latin America. McCain is expected to address issues like immigration and trade, all controversial subjects back home in the United States that have split the Republican Party from Hispanic voters also have have led to much distrust of McCain himself with the conservative base.

Poll: Fear Of Terrorism Is Fading
A new CNN poll shows that Americans are much less afraid of terrorism now than they used to be: Only 35% of respondents think a terrorist attack against America is likely, compared to 41% in the summer of 2007 and majorities in the five summers before that. From the pollster's analysis: "As the threat of a terrorist attack continues to recede in the mind of the American voter, the state of the economy and other domestic issues are likely to become even more important."

CQ: Dems Now Likely To Pick Up Staten Island House Seat
CQ is now changing its rating for the open New York House seat of retiring GOPer Vito Fossella from "Toss-Up" all the way to "Democrat Favored," an upgrade of two whole ratings for the Dems. Republicans have had a serious run of bad luck here, with a long search for a new candidate, the death of an actual candidate, and now a whole new search that has so far come up empty.

The GOP's prospects for holding onto a key House seat in New York -- once practically assured in their Staten Island stronghold -- have rapidly gotten bleaker and bleaker, to the point where the seat could be on its way to the Democrats.

After wealthy GOP candidate Frank Powers -- who wasn't even the party's first choice to begin with -- tragically passed away over the weekend, the party has had to go hunting for a new one. But one potential candidate after another has bailed. They include a local TV newscaster, multiple state legislators, a local D.A., and at least half a dozen others -- to a person, they've all said, Thanks but no thanks.

"It's a crazy situation," said former Rep. Guy Molinari, the unofficial leader of the Staten Island GOP, in a phone interview with Election Central.

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The hotly-contested race for the New York 13th Congressional District, a major pickup opportunity for Dems, was seriously shaken up over the weekend with the sudden and tragic passing of GOP candidate Frank Powers, who was found dead in his sleep of apparently natural causes at age 67.

So what happens next? What does the GOP do now?

A national GOP source tells us that the party is already talking to local leaders about potential new candidates, but nothing will happen until after the funeral.

It's worth taking a quick look at the state of the race, because it has suddenly become one of the contests being most closely watched by national strategists in both parties.

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Frank Powers, a businessman who had been the leading Republican candidate for the hotly-contested open New York House seat of retiring GOPer Vito Fossella, has passed away at age 67.

Our condolences go out to his family and friends.

Democratic chances are seen to be improving for another key House seat, with CQ changing its rating on the open seat of New York GOP Rep. Vito Fossellla from "Leans Republican" to "No Clear Favorite."

This seat wasn't on anybody's radar until several weeks ago, when Fossella was caught up in a series of personal scandals that led to his retirement. Republicans have selected unknown businessman Frank Powers to be their candidate, while Democrats have rallied around New York City Councillor Mike McMahon.

The district voted 55% for President Bush in 2004, the only New York City district to vote for him. But the district previously went to Al Gore in 2000, and represents a serious pick-up opportunity for Dems in a strong year.

In a piece of bad news for Democrats and humorists everywhere, it turns out there won't be a contest in the New York 13th District between a Republican candidate and his own son running as a Libertarian, with Libertarians passing over musician Francis "Fran" Powers Jr. for the nomination to go up against likely GOP nominee Francis "Frank" Powers, Sr.

This seat wasn't on anybody radar until a few weeks ago, when incumbent Republican Vito Fossella was forced into retirement by a series of personal scandals. The Libertarian candidacy by Powers Jr., who had said it was his goal to keep his father from getting elected and furthering Republican policies, would have certainly attracted some attention and possibly benefitted the likely Democratic nominee, New York City Councillor Mike McMahon.

The race for the House seat of Rep. Vito Fossella (R-NY), whose personal scandals spurred his sudden retirement, just got a whole lot wackier as GOP candidate Francis "Frank" Powers Sr. is getting a new challenger: Libertarian candidate Francis "Fran" Powers Jr., his very own son.

The Staten Island Advance reports that the younger Powers, age 47, announced he is running as a Libertarian in order to stop his father from getting elected and being able to help further Republican policies. "I'm not going to say that my dad treated me bad when I was a kid," Fran Powers said. "I know his policies. I'm running against someone I know."

Powers Sr., needless to say, is taken aback by this development. "I've tried very hard for many years to help my son," he said in a statement. "Unfortunately, he's rejected everyone's help to live a healthy lifestyle."

The party nominations appear to be finally settling down in the open race for retiring Rep. Vito Fossella's (R-NY) seat. The race wasn't on anybody's radar until a few weeks ago, when the seemingly safe congressman was caught up in a series of personal scandals and finally had to announce his retirement.

And with the dust now clearing, it turns out this race could be a serious pick-up opportunity for the Democrats.

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In yet another sign of the disastrous recruiting difficulties that continue to plague the GOP, a top New York Republican has just acknowledged in an interview that most of the party's choices to replace scandal-plagued Rep. Vito Fossella (R-NY) have already opted out of the race, opening up this GOP-leaning district to a strong Democratic challenge.

It's hard to overstate how much this race tells us about the GOP's national troubles, and what tough sledding they're facing this Fall in the Congressional races -- after all, this is the party's local stronghold in New York City, but they haven't been able to find a candidate.

"Unfortunately, as you go down the list, most of them have taken themselves out," said former Rep. Guy Molinari, the unofficial leader of the Staten Island GOP, in a phone call with Election Central.

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The Republicans are out of luck in the open House seat of Rep. Vito Fossella (R-NY). Their favored candidate, Staten Island District Attorney Dan Donovan, has now opted against running. The GOP's attention will now turn to state Sen. Andrew Lanza and county clerk Stephen Fiala, both lesser candidates.

Had Donovan run, he would have been heavily favored to win the seat, which was the only New York City district to vote for President Bush in 2004.

His decision is part of a pattern the NRCC has had to deal with in candidate recruitment: If the downsides of defeat aren't bad enough, victory brings the "reward" of serving in what is expected to be a powerless minority. It's difficult, to say the least, to get up-and-coming local Republicans to sign on to something like that.

The tawdry political scandals of Rep. Vito Fossella (R-NY) could soon be coming to an end. The Associated Press is reporting that Fossella has decided to announce this week that he will not be seeking re-election.

Republicans believe that an open seat would be easier to hold in this particular case, with the Staten Island district likely to vote for John McCain by a big margin. If Fossella were to run again, the cash-strapped national party would have been unlikely to spend any money on his behalf in the country's most expensive media market.

If Fossella does announce his retirement, it would be a big cause for relief on the part of the NRCC.

With the House Democrats already up three seats from special elections, a lot of eyes are now looking to another potential pickup in either a special election or this Fall: New York's 13th District, home of the scandal-plagued GOP Congressman Vito Fossella, where the national GOP leadership is frantically trying to push him out and take their chances on an open seat.

Fossella would be considered safe under normal circumstances -- but these are certainly not normal circumstances after he was arrested for drunk driving, called his girlfriend to pick him up from jail, and then had to admit that he had a girlfriend and a child with her outside of his marriage. Since then, the New York and Washington press and political operatives have practically been on a running deathwatch.

There is no question that the Republicans want him out -- indeed, the leadership has been reaching out to a potential new candidate. However, those close to Fossella say he's prepared to stay in, and a recent SurveyUSA poll showed early support at home despite the scandal.

The question, then, becomes whether Fossella's baggage will truly put this seat up for grabs, and which candidates will step forward to run a very tight, very expensive race.

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There seems to be a serious obstacle in the way of GOP leaders who want to get rid of Rep. Vito Fossella (R-NY), in the wake of his DUI arrest and admission of having a child outside of his marriage.

Namely, the obstacle would be Fossella himself.

Former Rep. Guy Molinari, a political mentor of Fossella, told the New York Post that the Congressman was "puzzled" by all the talk of who else might run for the seat. "He's not just inclined to run," Molinari said. "He plans on running."

Fossella can take some heart in a new SurveyUSA poll showing that a majority of his constituents say he should run again. An actual campaign could change things, but for now the only driving force against him is the party elite, not the people he represents.