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Official: Al Qaeda Terror Threat Looking More Like a 'Goose Chase'


A possible Al Qaeda plot to launch an attack during the 10th anniversary weekend of the Sept. 11 terrorist attacks is "looking more and more like a goose chase," a senior U.S. official told Fox News on Saturday.
Federal authorities have been questioning all day the credibility of a tip from a previously reliable source that that Al Qaeda had planned to attack Washington or New York, putting though both cities on high alert.

But authorities have not been able to corroborate any of the information from the source.
"The threat is looking less and less credible," the official said, adding that the entire plot as outlined by the source "doesn't seem feasible."
"The time frame doesn't make sense for when these operatives would have been moving into position," the official said. "We are going back to the original source. The president will be briefed on it again in the morning, but people are questioning the credibility of this information at this time. Something is not adding up."
But officials say they won't rest until they review every last detail.
Word that Al Qaeda had ordered the mission reached U.S. officials midweek. A CIA informant who has proved reliable in the past approached intelligence officials overseas to say that three men of Arab descent -- at least two of whom could be U.S. citizens -- had been ordered by newly minted Al Qaeda leader Ayman al Zawahri to mark the 10th anniversary of the 9/11 attacks Sunday by doing harm on U.S. soil.
According to the intelligence, they were to detonate a car bomb in one of the cities. Should that mission prove impossible, the attackers have been told to simply cause as much destruction as they can.
It's still unclear whether any such individuals even exist, according to U.S. officials.
"We don't have a smoking gun yet," Brenda Heck, a top counterterrorism official in the FBI's Washington field office, told Fox News."It is going to take a little bit to completely flush this out. We certainly -- hour by hour -- we are learning more."
Earlier Saturday, the head of the FBI's Washington field office, James McJunkin, said he doesn't expect that there will be any problem "over the anniversary weekend."
If the the tip had not come on the eve of the 9/11  anniversary, the intelligence community likely would not have acted and alerted the public to this degree, the senior official said.
"We couldn't ignore it," the official said. "But something doesn't add up: the routing, the timing of the assets moving into position."
Heck said it's "absolutely possible" authorities will never know whether the alleged plot was in fact real.
In the meantime, extra security was put in place to protect the people in the two cities that took the brunt of the jetliner attacks that killed nearly 3,000 people at the World Trade Center and the Pentagon a decade ago. It was the worst terror assault in the nation's history, and Al Qaeda has long dreamed of striking again to mark the anniversary. But it could be weeks before the intelligence community can say whether this particular threat is real.
The New York Police Department was paying special attention to the thefts of three vans Sunday, scrutinizing them them to eliminate the possibility of their being tied to a larger threat. One van was stolen from a Jersey City facility, while the other two were stolen last week from a company that does work at the World Trade Center site.
Also Sunday, an explosives detection K9 unit alarmed on a cargo pallet as it was being loaded onto a plane at Dulles International Airport. Authorities evacuated several gates as a precaution, but determined there was nothing harmful about the suspicious boxes.
Briefed on the threat Friday morning, President Obama instructed his security team to take "all necessary precautions," the White House said. Obama still planned to travel to New York on Sunday to mark the 10th anniversary with stops that day at the Pentagon and Shanksville, Pa.
Heck, the FBI counterterrorism official, said the government's response to the latest threat "has been a little different" than at other times.
"We have been very open with the public on this," she said. "I think there will be some debate about that after we get through this weekend. [But] I think there's a very positive side to letting the public know a little bit more about what we are doing behind the scenes."
In particular, she said, by letting the public know about a threat quickly, "They can help us with what's going on out in the public areas so that we can respond if something is suspicious."
In fact, Washington Police Chief Cathy Lanier said suspicious reporting has surged by as much as 30 percent, a change that she called "very reassuring."

Stocks fall sharply as Europe worries deepen


NEW YORK (AP) — Stocks are falling sharply in midday trading as worries deepen about Europe's debt crisis and the weak U.S. economy.
Tuesday's losses in the U.S. market followed heavy selling in Europe. The Stoxx 600 Europe index is down nearly 5 percent this week.
U.S. bank stocks fell more than the overall market. Federal regulators filed lawsuits late Friday against 17 major banks over mortgage securities that lost value. Bank of America Corp. and JPMorgan Chase & Co. fell 4 percent.
A better reading on growth in the U.S. service sector did little to stem the market's losses.
The Dow fell 233 points, or 2 percent, to 11,007. The S&P 500 fell 24, or 2.1 percent, to 1,149. The Nasdaq fell 44, or 1.8 percent, to 2,436.

Texas wildfires: More than 1,000 homes lost, thousands evacuated


The wildfires in Texas continue to roar out of control, destroying more than 1,000 homes. With seemingly no end to the flames in sight, more than 5,000 residents were evacuated from the most-threatened areas.
Gov. Rick Perry told CBS that he hopes that today's forecast calling for cooler temperatures and slowing winds would help firefighters make headway. But he stressed: "It's still a very critical and very fluid situation."
The fires are being fueled by unforgiving weather conditions -- the region's relentless drought conditions and high winds attributed to former Tropical Storm Lee.
The disaster continued to unfold overnight: 22 new fires cropped up, at least 10 of which were labeled "large" by the Texas Forest Service. Combined, they have already consumed more than 7,544 acres. In all, there are an estimated 85 fires burning in the state.
Some of the newest fires were triggered by power lines that were torn down in the winds, or by residents barbecuing or getting in some chores -- such as welding -- over the long Labor Day weekend. Such seemingly innocent activities offered just enough spark to fuel a fire. 
"It's hot, dry and windy," Melanie Stradling, a spokeswoman for the Texas Forest Service, told The Times. "It's extremely hot on a regular basis, and you've got high winds and heat and lack of rain."
The wildfires are particularly serious in Bastrop County, east of Austin, where more than 5,000 residents were evacuated. At least 476 homes were destroyed there, the highest number of homes ever lost in a single fire in Texas history.
In the town of Bastrop itself, helicopters and planes loaded with water could be seen overhead as firefighters converged around homes catching fire along a state highway outside the city.
"Waiting is the most frustrating thing," said Gina Thurman, 47, choking back tears as she sat by herself on a curb outside Ascension Catholic Church, one of several shelters in the area. "You're sitting there and you don't know anything but your house is probably burning."
Perry, considered by many to be the Republican front-runner in the race for the White House, canceled plans to appear at a candidate forum in South Carolina on Monday so he could deal with the unfolding disaster. It was unclear whether he would make Wednesday's debate at the Ronald Reagan Presidential Library & Museum in Simi Valley.

Hurricane Irene: Wall Street planning to open Monday


The less-than-anticipated damage from Hurricane Irene came as somewhat of a relief to Wall Street.
On Sunday, the New York Stock Exchange and Nasdaq OMX Group issued statements saying they planned to be open Monday, but officials and Wall Street analysts warned that it was not clear how much trading activity there would be.
New York Mayor Michael R. Bloomberg said he was lifting the city’s evacuation order as of Sunday afternoon, but the subway and commuter rail systems remained closed and it was unclear when they would reopen.
New York Gov. Andrew Cuomo had shut the subway as a precaution before the arrival of the storm, which caused some flooding in Manhattan streets, including in the Wall Street district.
“It’s safe to say it’s going to be a tough commute tomorrow,” the mayor told reporters Sunday.
The last time weather shut U.S. equities markets for an entire day was Sept. 27, 1985, as a result of Hurricane Gloria.  A heavy snowstorm on Jan. 8, 1996, caused the New York Stock Exchange to open late and close early.

John Nester, spokesman for the Securities and Exchange Commission, said Sunday that the exchanges had informed the SEC that they would open for regular hours. “The decision to open was made in consultation with the SEC following a series of discussions throughout the weekend,” Nester said in a statement.
Overall, the economic toll from Irene is anticipated to be far less severe than had been feared. Kinetic Analysis Corp., a consulting firm, estimated that insured damage from Irene will run from $2 billion to $3 billion, with total losses of about $7 billion.
Certain sectors may feel that economic bite more acutely than others. Atlantic City, which had been banking on this weekend to be one of the year’s best turnouts by gamblers, shut down its casinos before the hurricane’s arrival. Though the gambling halls are expected to reopen Monday, Bob Griffin, president of the Casino Association of New Jersey, told reporters that it’s still uncertain how much the three-day shutdown will have cost the industry.

Irene also put a significant dent in this week’s box office revenue.
About 1,000 movie theaters from Philadelphia to New York had shut down over the weekend because of  the storm. Studio distribution executives blamed these closures, as well as people staying home because of the storm, for a decline of nearly 25% in movie ticket sales over the weekend compared with the same period a year ago.
New York City’s theater industry also was buffeted by the storm. Citing safety and security concerns, the Broadway League shut down all Broadway shows on Saturday and Sunday. While the shows would normally be closed on Monday, some theater watchers expected performances to resume Tuesday.