Caught in the Web, 1860. Governor Sarah Palin of Alaska announced that she would not seek reelection and that she would resign by the end of July. “‘We’re not retreating,’” she said, citing General Douglas MacArthur, who was not the author of the quotation. “‘We are advancing in another direction.’” No one knew why she resigned. “Everybody I�??ve talked to thinks it�??s a little crazy,” said conservative pundit William Kristol. “But maybe not. What is she going to accomplish in the next year as governor?”AP via NO Times-PicayuneLATLATWPPoliticoAnchorage Daily NewsNYTNYTThe U.S. unemployment rate reached 9.5 percent, and reports for June …

Caught in the Web, 1860. Federal agents arrested hedge-fund manager Bernard Madoff and charged him with running a $50 billion Ponzi scheme, possibly the largest in Wall Street history. Madoff faces a maximum penalty of 20 years in prison and $5 million in fines; he had hoped to distribute his last $200 million to friends, family, and favored employees before his arrest, but was turned in by his sons. SECNYTBloombergWSJNYTRepublicansenators killed a plan to loan $14 billion to American automakers, and the White House said it would consider other options to save the industry and as many as three million …

A Christian martyr. After a trial based predominantly on classified evidence, much of which could not be discussed with the defendants, U.S. District Judge Richard Leon ordered the release of five Algerian prisoners from Guantanamo Bay, where they have been held without charge for seven years based on a single, unidentified source. “To allow enemy combatancy to rest on so thin a reed,” said Leon, “would be inconsistent with this court’s obligation.” The judge called upon the Justice Department to accept his ruling, saying that the Algerians deserve to go home and that an appeal would keep the prisoners at …

Barack Obama was elected the 44th president, and first African-American president, of the United States, receiving 365 electoral votes in an election that saw perhaps the highest turnout among registered voters in a century. “If there’s anyone out there who still doubts that America is a place where all things are possible,” Obama told supporters, “tonight is your answer.” “The American people have spoken, and they have spoken clearly,” said John McCain in a teary-eyed concession speech. “What an awesome night for you,” President Bush said to Obama. “His choice, basically, is whether he is going to be Uncle Sam… …

An American cattleman. On the 79th anniversary of the stock market crash of 1929, the Dow fell 312.3 points, closing below 8400. Chrysler announced that it would cut 25 percent of its salaried jobs, OPEC said that it was cutting oil production by 1.5 million barrels a day, and former Federal Reserve chairman Alan Greenspan declared that financial markets were engulfed in a “once-in-a-century credit tsunami” and admitted that he had “found a flaw” in his free-market ideology. “I don’t know how significant or permanent it is,” he said of his mistake. “But I’ve been very distressed by that fact.”The …

The world economy continued its collapse. The Dow Jones Industrial Average declined 22 percent over eight days, Wall Street lost $2.4 trillion in market value, and Iceland went bankrupt.CNNBusiness WeekThe head of the International Monetary Fund warned that the world was on the “brink of systemic meltdown,”BBCand Democrats in Congress called for a $150 billion economic stimulus plan to rebuild America’s crumbling infrastructure.Yahoo! NewsBarack Obama called for firms that create jobs to be rewarded with tax credits and for a moratorium on foreclosures;AFPJohn McCain refused to answer questions about his economic plan, but was reportedly considering a cut in the …

Stocks on Wall Street and other exchanges throughout the world dropped as brokerage Merrill Lynch was bought by Bank of America, insurance giant AIG sought tens of billions of dollars in government loans, and investment bank Lehman Brothers declared bankruptcy.The New York TimesJohn McCain and Barack Obama suspended political advertising and appeared together at the World Trade Center site to commemorate the seventh anniversary of the September 11 attacks,The New York Timesand former Massachusetts governor Jane Swift, chair of the Palin Truth Squad, demanded that Obama apologize for saying that McCain’s promise to change Washington amounted to putting “lipstick on …

The Treasury Department seized control of mortgage and loan giants Fannie Mae and Freddie Mac, firing the companies’ chief executives and promising to provide as much as $200 billion to prevent insolvency.New York TimesThe jobless rate rose from 5.7 percent to a five-year high of 6.1 percent, with more than 84,000 jobs lost in August,Yahoo and Senator John McCain accepted the Republican Party’s nomination for the presidency.KTLA.com“This campaign is not about issues,” said McCain’s campaign manager, Rick Davis. “This election is about a composite view of what people take away from these candidates.”Washington PostIt emerged that McCain did not properly …

One million people fled New Orleans to avoid Hurricane Gustav, which landed in Louisiana as a weakened category-2 hurricane and caused relatively little damage. Mississippi officials ordered people still living in the FEMA trailers erected after Hurricane Katrina to evacuate, and John McCain canceled opening-day ceremonies for the Republican National Convention at the Xcel Energy Center in Saint Paul, Minnesota. “This is a time when we have to do away with our party politics and we have to act as Americans,” said McCain. “Not as Republicans.”GuardianIOL.co.zaNew York TimesUSA TodayYahoo!McCain picked Alaska Governor Sarah Palin, 44, as his running mate. Palin, …

Caught in the Web, 1860. The military junta in Myanmar put the official death toll from last week’s Cyclone Nargis (Urdu for “daffodil”) at 28,458, while foreign observers, taking into account that heavy rains were expected to continue, with malaria, tuberculosis, cholera, typhoid, and dysentery to follow, expected that as many as 100,000 people would die. Before distributing foreign-aid packages, the junta re-labeled them with the names of its generals; a referendum on a new constitution that will perpetuate the junta’s rule was not delayed. “Let’s go cast a vote,” sang two female pop vocalists on state-run television. “With sincere …

Caught in the Web, 1860. Senator Barack Obama beat Senator Hillary Clinton by huge margins in primaries in Virginia, Maryland, and the District of Columbia, and Senator John McCain beat former Arkansas governor Mike Huckabee. The close Democratic race worried party superdelegates, who will play a decisive role in choosing a candidate. Nancy Larson, a lobbyist and superdelegate from Minnesota, characterized superdelegates in general as “big schmucks.” Alaskan superdelegate Cindi Spanyers received a call from former president Bill Clinton, who recalled his wife’s work on a fish cannery slime line there, and Obama was endorsed by the fishing village of …

Caught in the Web, 1860. A new National Intelligence Estimate by all 16 U.S. intelligence agencies concluded that Iran ended its secret nuclear weapons program in 2003, in contrast to a 2005 report that claimed with “high confidence” that such a program was still active. Former CIA officials explained that at the time the earlier report was written the agency’s Iran Task Force had been reduced from nearly a hundred analysts and officers to fewer than a dozen, and National Security Advisor Stephen Hadley, attempting to explain why the earlier report was not “so wrong,” reminded reporters that Iran is …

“Into the palace parlor they stepped; her hand in his paw the old bruin kept,” 1875 The U.S. military announced that July was the least deadly of the past eight months for American troops in Iraq, with only 75 soldiers killed. AP via BreitbartSeventy-six U.S. senators had visited Iraq, and 3 percent of Americans approved of how Congress was handling the war, which was costing the United States and Great Britain more than $4,000 each second.The HillZogbyDaily MailIt was estimated that 90 percent of Iraq’s artists had fled the country or been killed,Washington Postand Iraq’sgays were being targeted for murder, …

Tony Blair alighted on a mission to bring cohesion to Palestinian institutions,Jerusalem Postand his successor Gordon Brown proposed stripping British prime ministers of the power to declare war.TelegraphPolice found a pair of Mercedes-Benz sedans filled with gasoline and nails parked in the center of London, and two men crashed a Jeep Cherokee into the glass doors of Terminal One at Glasgow Airport. The vehicle failed to penetrate the doors, but the driver poured gasoline over himself and the Jeep, and the Jeep blazed. The throng of travelers in the terminal stampeded away from the inferno, and the flaming driver staggered …

In Baghdad, at a gathering place for poor Shiite laborers, the owner of a truck filled with wheat announced that he was looking for workers. A crowd gathered around the truck and it exploded, killing 70 people and wounding 236.NYTIt was revealed that billions of dollars in Iraqi oil revenues had not been spent, and the head of Iraq’s Commission on Public Integrity was accused of graft.NYTOutgoing Representative Cynthia McKinney (D., Ga.) introduced a bill to impeach President George W. Bush for misleading Congress on the war in Iraq and implementing an illegal domestic spying program.Newsvine.comPresident Bush said that any …