Today's must-read:

►  At Huffington Post -- America without a middle class (by Elizabeth Warren, chair of the Congressional Oversight Panel to oversee the banking bailout) -- Families have survived the ups and downs of economic booms and busts for a long time, but the fall-behind during the busts has gotten worse while the surge-ahead during the booms has stalled out. Today's families have spent all their income, have spent all their savings, and have gone into debt to pay for college, to cover serious medical problems, and just to stay afloat a little while longer. Through it all, families never asked for a handout from anyone, especially Washington. They were left to go on their own, working harder, squeezing nickels, and taking care of themselves. But their economic boats have been taking on water for years, and now the crisis has swamped millions of middle class families. 

The contrast with the big banks could not be sharper. While the middle class has been caught in an economic vise, the financial industry that was supposed to serve them has prospered at their expense. Consumer banking -- selling debt to middle class families -- has been a gold mine. Boring banking has given way to creative banking, and the industry has generated tens of billions of dollars annually in fees made possible by deceptive and dangerous terms buried in the fine print of opaque, incomprehensible, and largely unregulated contracts.

And when various forms of this creative banking triggered economic crisis, the banks went to Washington for a handout. All the while, top executives kept their jobs and retained their bonuses. Even though the tax dollars that supported the bailout came largely from middle class families -- from people already working hard to make ends meet -- the beneficiaries of those tax dollars are now lobbying Congress to preserve the rules that had let those huge banks feast off the middle class.

Local news:

►  At SeattlePI.com -- Cuts to criminal supervision are "a tragedy waiting to happen" -- Concerns about the state reducing offender supervision have been raised again this week after police said Maurice Clemmons, a paroled felon with a violent record, gunned down four Lakewood patrol officers. Last month, the Department of Corrections began sending some felons who violated probation home with an ankle bracelet instead of back to prison because of diminished resources. And since a new state law took affect in late July, the DOC has ended community supervision of nearly 10,000 offenders deemed low-risk.

►  At SeattlePI.com -- Murtha says "there must be competition" for tanker -- The House Defense Appropriations Subcommittee chairman was reacting to Northrop/Airbus's threat that it would not bid for the tanker contract unless the Air Force changed its request for proposals, because it believes the current one favors Boeing's smaller, cheaper aircraft. Murtha did not reject the possibility that Congress might step in, but he wants to talk with Pentagon officials first. Murtha has previously supported splitting the contract between Boeing and Airbus.

►  In today's Seattle Times -- Will state GOP find challenger for Sen. Patty Murray? (Joni Balter column) -- The obstacle for Republicans is huge. Murray is a top-notch, hardworking senator. She has fans on both sides of the Cascades. Still, it is pretty unusual to let one of these seats go unchallenged. The state Republican Party needs a Costco-sized bottle of iron pills to fortify its anemic bench.

►  At AFL-CIO Now -- Workers give Rite Aid CEO the raspberry for union-busting -- At Rite Aid’s Lancaster, Calif., distribution center have been fighting for justice and a voice at work for years. Last night, a Rite Aid drugstore worker from California and enthusiastic supporters in New York City upstaged a corporate banquet where former first lady Laura Bush came to honor Rite Aid CEO Mary Sammons and other executives.

►  From AP -- Wal-Mart to pay $40 million wage settlement to Mass. employees -- Wal-Mart has agreed to pay $40 million to 87,500 Massachusetts employees who claimed the retailer denied them rest and meals breaks, manipulated time cards and refused to pay overtime.

►  In today's NY Times -- Repaid bailout money may go to jobless benefits -- Under pressure from Democrats in Congress, the Obama administration has begun talks with lawmakers about tapping unspent money from the government’s financial bailout program to help offset additional spending to create jobs and aid the long-term unemployed.

►  In today's SF Chronicle -- Illegal immigrants' impact on economy measured -- A new study released Wednesday concludes that undocumented immigrant workers do not drain jobs or tax dollars and have a neutral impact on the U.S. economy.

►  From Reuters -- U.S. likely to miss cargo deadline -- The Department of Homeland Security is likely to miss a 2012 deadline to screen all cargo entering the United States by ship unless Congress devotes enormous new resources to the assignment, says Janet Napolitano.

►  In today's Washington Post -- Extend the estate tax (editorial) -- In one of those fiscal time bombs left from the Bush administration, the estate tax, having gradually dwindled, is set to be eliminated entirely next year -- only to spring back to life, full-force, in 2011. Unless something is done, 2010 will be the year to throw Mama from the train, tax-free. This would be terrible policy, not to mention unkind to Mama.