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The claim that the White House has abandoned the public option comes from AP's Ron Fournier (who almost became McCain's official press flack until he realized he'd do a better job for McCain while still with the AP) and right-wing news aggregator Matt Drudge. Don't buy it.
Spreading the headline "Obama abandons public option" seems to be a right-wing trick to throw us into a tizzy, get us frustrated, and have us abandon support for President Obama. Don't let yourself be taken in!
Some useful links with the full story: