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26

COVER: Clinton's Opening Blunder

He campaigned as the hero of middle-class Americans who play by the rules. When his Attorney General nominee admits hiring illegal aliens, middle-class fury scuttles her.

31

How Baird Fell

A flawed process, a doomed nomination

36

TAXES: Clintonomics 101

To cut the deficit, the rich will sacrifice first

37

THE POLITICAL INTEREST: A Sage Spurned

Moynihan has advice, if only the White House would listen

40

THE INAUGURAL: Hail to the Sax Player

Surrounded by tinsel and twang, Clinton dances into office

47

THE PRESIDENCY: Bush Flies South

Yielding the power with grace and majesty

49

DIPLOMACY: Fresh Eyes on Baghdad

The new team needs to decide how to handle Saddam

50

HAITI: Leave Those Bags Unpacked

Clinton wants Haitians to be free at home

52

THE ECONOMY: Where the Jobs Aren't

U.S. firms will do just about anything to avoid hiring workers

54

BUSINESS: IBM's Turbulent Twilight

Juggernauts Intel and Microsoft challenge Big Blue

56

SCIENCE: Save the Earth!

Can telescopes and missiles stop killer asteroids?

59

MEDICINE: Laid Low by Valley Fever

A dust-borne fungus causes misery in California

60

CRIME: The Honor-Roll Murder

A beating death shatters the stereotypes of the privileged

61

SPORT: Mission to Pasadena

Buffalo and Dallas both seek redemption in the Super Bowl

62

TELEVISION: The New Action in Prime Time

Deep Space Nine leads a fleet of syndicated invaders

63

CINEMA: Princess of Our Dreams

Actress Audrey Hepburn, a spirit of regal grace, dies at 63

REVIEWS

TELEVISION Homicide is a good cop show, but a cop show 66

VIDEO On laser disk, a skull-busting animated sci-fi film 66

THEATER A smart, fast comedy dares to laugh about AIDS 68

BOOKS Late bloomer Louis Begley writes a second fine novel 70

SHORT TAKES 71

DEPARTMENTS

LETTERS 4

MANAGING EDITOR'S LETTER 12

GRAPEVINE 15

MILESTONES 23

PEOPLE 73

ESSAY 74

COVER: Photograph for TIME by Terry Ashe