In a message that appeared Wednesday on Islamist web sites, al Qaeda’s second-in-command warns President-elect Barack Obama about the “heavy legacy of failure and crimes that await him.” He also urged Muslims to keep up the attacks on the U.S. Perhaps in an attempt to anger and insult America’s next president, the terrorist leader, Al Zawahiri, also called Obama, Condoleezza Rice and Colin Powell, the “direct opposite of honorable black Americans” like Malcolm X. Zawahiri even went as far as to call them “house slaves” or the racial slur of “house Negroes.”

The buzz is surrounding Obama’s current picks for several key members of his cabinet. Sources tell CNN that Sen. Tom Daschle is being considered for the Secretary of Health and Human Services job. Daschle, the former Senate Majority Leader, is expected to take the position if offered.  And for the Attorney General job, Eric Holder, who was Clinton’s Deputy Attorney General, is the top choice for Obama. Holder, who co-chaired Obama’s vice president selection process, is also expected to accept the position.  History could be made again because “if confirmed, Holder would be the first African-American to lead the Justice Department.”

And Bill Clinton is trying to help his wife get the Secretary of State position in Obama’s cabinet. Clinton has offered to allow ethical reviews of his philanthropic and business work to ensure there isn’t a conflict of interest. Unlike Holder and Daschle, Clinton is reportedly unsure whether she will take the position. She will have to choose between remaining in the Senate or accepting the new position. “The question is where she can be of best service,” said a Clinton adviser.

More dismal news on the economic front. The U.S. cost of living fell by the most since the records began in 1947. The fewest number of homes (known as housing starts) were constructed last month. And the consumer price index (CPI) has slide backwards, which means deflation. Yes, this recession is the worst once for at least a quarter of a century.

And Xbox 360 gamers may be rejoicing worldwide. On Wednesday, Microsoft unveiled a revamped Xbox gaming console. The new internet-connected setup includes an updated dashboard, the ability to purchase movies and games from Xbox.com and streaming HD Netflix movies with membership. The “New Xbox Experience” (NXE) is available to Xbox Live members.