The budget crisis in California is becoming critical. The state is still paying its debt in IOUs, but major banks are refusing to accept them. Late yesterday, the state legislature was poised to finally pass a budget and close its $26 billion deficit, but the negotiations stalled over the governor's plan to suspend a law on school funding. Schools are likely to be one of the biggest casualties from this budget crisis. On The Takeaway with more of the story is KPCC Reporter Patricia Nazario.

Today, Goldman Sachs announced massive profits from the second quarter— $3.4 billion dollars. But as they announced the good news, they had to brace themselves to deal with some inevitable public outrage. How can Goldman avoid a public relations nightmare? The Takeaway is joined by Jonathan Bernstein, President of Bernstein Crisis Management, Inc.

In June, President Obama promised the nation a "New GM" as part of his administration's restructuring of the auto industry in the wake of its financial collapse. Now General Motors is expected to emerge from bankruptcy reorganization as the promised “New GM” —a partially-government-owned entity. The brand will hang on to successful lines like Chevrolet and Cadillac and let go of others. How will this "New GM" fit in with the old Detroit? The Takeaway is taking the pulse of Detroit today. We are joined by Bishop Charles Ellis of the Greater Grace Temple and WDET reporter Noah Ovshinsky.

Have your own story or thoughts on the "New GM"? Let us know!

Of Michael Jackson's millions of fans worldwide, only a few thousand were lucky enough to attend the memorial service in the Staples Center in Los Angeles. The Takeaway talks to Melvin Price, an electrician in North Hampton, England, who flew to Los Angeles and was rewarded with the miraculous appearance of two tickets to the service, and with Karen Thompson, a cosmetologist from Compton, California, who was also at the memorial service.

All great champions are resilient, and, this weekend, old sports champions return to the limelight. Slugger Manny Ramirez, who helped bring two World Series rings to Boston, returns to the Los Angeles Dodgers tonight from a 50-game suspension for violating baseball’s drug policy. Seven-time Tour de France champion Lance Armstrong returns to France for this year’s Tour de France.

And the champions of the tennis world are shining bright at Wimbledon. Venus and Serena Williams meet in the finals at Wimbledon again. Roger Federer makes his push for the Wimbledon men's final, while American Andy Roddick attempts a comeback. For all of this and more, we are joined by The Takeaway's sports contributor Ibrahim Abdul-Matin.

Here is match point between Venus and Serena in the Wimbledon final last year:

More than a month after Air France Flight 447 crashed, there are more questions than answers. The latest report from the French accident investigation agency, BEA, contends that the plane did not break up in midair, but plummeted vertically into the water. However, some inconsistencies in the report are leaving some analysts skeptical. And, with less than 10 percent of the plane recovered and the black box still missing, the mystery of Air France Flight 447 may never be solved. Joining the Takeaway to discuss the crash investigation is Todd Curtis, Aviation Security Analyst and former air safety engineer for Boeing.

Many people know the legends of Jesse James or Bonnie and Clyde, but lesser known is one of the greatest bank robbers in history – John Dillinger. Nicknamed "The Jackrabbit" for his swift moves, he terrorized banks throughout the Midwest in 1933 before being shot by FBI agents at a movie theater in Chicago. Johnny Depp portrays him in the new movie “Public Enemies,” bringing his life (and legend) to the big screen.

On The Takeaway this morning we are joined by John Dillinger's great nephew, Jeff Scalf, who was a consultant for the film and currently lives in the house where Dillinger grew up. We also have Elliot Gorn, Professor of History at Brown University and author of the new book "Dillinger's Wild Ride: The Year That Made America's Public Enemy Number One."

Four U.S. soldiers died last night in Baghdad, following a series of bombing last week that killed nearly 160 people. Despite Iraqi President Nouri al-Maliki’s insistence that Iraqi security forces are up to the challenge, many believe that Iraq’s urban areas may destabilize without U.S. support. Joining The Takeaway to talk about the U.S. troop departure is Nazar Janabi, former Director General for defense policy in the Iraqi Ministry of Defense. Also joining the show is Professor Gary Solis, a retired U.S. Marine with 26 years experience who teaches military law at Georgetown University and taught at West Point. For more on the pullout in Iraq watch the video below.

As golf's U.S. Open starts up, the biggest story is the weather. Days of rain in New York have made for a group of soggy players and an extremely wet course. Tiger Woods tries to defend his title, while fan favorite Phil Mickleson tries to focus on the course while his wife battles breast cancer. For analysis and predictions we turn to Bob Harig, golf writer for ESPN.com.

In a dramatic example of how the terrorist group may have reconstituted itself in Yemen, three German nationals were killed and six other foreigners remain missing after a kidnapping on Monday. Some experts believe al Qaida is responsible; they appear to be flourishing in the Arab world's poorest nation. The Takeaway speaks with Gregory Johnsen, terrorism analyst for the Jamestown Foundation, for more.

President Obama announced his nominee for top American commander in Afghanistan, General Stanley McChrystal, a few weeks ago. Confirmation hearings began today. Some critics are urging senators to look closely at what the general did or didn’t know about a facility called Camp Nama, which was operated by a task force under his command in Iraq, and what role he might have played in the Pat Tillman "friendly fire" coverup. Taking a critical look at this is Spencer Ackerman, who writes for the Washington Independent.

In the video below, Defense Secretary Robert Gates talks about McChrystal as the top commander in Afghanistan.

Supreme Court nominee Sonia Sotomayor grew up in the projects in the Bronx, then went on to Princeton and Yale Law School before working as a Manhattan DA and then a federal judge. Yale Law Professor and novelist Stephen Carter was in Sotomayor's law school class, now he teaches some of her opinions in her own classes. He'll join John and Farai to share his professional—and personal—perspective on the nominee. Also joining the conversation is Jenny Rivera who clerked for Sotomayor in 1993 and is now a law professor at the City University of New York Law School.

Click here for a slideshow of pictures from Sotomayor's life.

Get over it! The old adage reinforces the commonly-held belief that grief is a controllable social condition. However, scientists believe "complicated grief," a physical condition that affects a distinct part of the brain, could be affecting about one million Americans.

In the wake of violent protests involving the Olympic torch and the murder of 16 policemen in Xinjiang province, Olympics organizers and participants fear more civic disturbances. Ironically, author Charles Cumming's new book "Typhoon" is a thriller about terrorist attacks on the eve of the Olympics, launched by citizens from Xinjiang. Is the work of fiction that far-fetched?

Let the competition begin. After a month of playing hardball with Brett Favre, the Packers organization has reluctantly welcomed their superstar quarterback to compete for the starting job. But is Favre’s return what the players — and the city of Green Bay — want?

Armed with devoted grassroots support, Representative Ron Paul, R-Texas, launched a dynamic conservative movement along with his 2008 presidential bid. He lost the GOP nomination, but Paul is hosting a rally, the Campaign for Liberty's Rally of the Republic, in Minneapolis, opposite the official Republican National Convention. Paul shares what he's trying to achieve.

As the presidential candidates work to court the growing Hispanic population, the National Latino Congreso, a minority activism group, is registering Hispanic voters like never before. The Takeaway talks with two organizers about what they're doing to bring the powerful bloc to the voting booth come November.

Brett Favre is Green Bay. Plain and simple. The Super Bowl-winning, three-time MVP quarterback is worshipped in the home of the Packers — even following an official retirement in March. Now, with Favre asking to be released from his Green Bay contract as part of a possible return to the gridiron, the city's fans have divided.

Today, the Indian parliament votes on an energy deal crafted by Prime Minister Manmohan Singh and President George W. Bush. If the bill is ratified, India will gain access to American fuel and technology imports as long as it opens its civilian nuclear facilities for inspection. A no-confidence vote will force Singh’s resignation and bring the opposition party to power.

As the old adage goes, “Knowing is half the battle.” On Friday, New York City will begin levying fines against fast-food outlets that decline to release calorie counts. For a nation trying to buck the obesity trend, do we actually know what we’re eating?