A Christian martyr. The Dow Jones Industrial Average fell 777 points in one day after the House of Representatives failed to pass a Wall Street bailout plan, first put forth by President George W. Bush, that would have granted Treasury Secretary Henry Paulson up to $700 billion to buy, at any price, toxic mortgage-backed assets from financial firms. “It’s not based on any particular data point,” said a Treasury spokeswoman of the $700 billion figure. “We just wanted to choose a really large number.”Wall Street JournalWashington PostForbes.comSenator John McCain announced that fixing the economy was more important than politicking, suspended …

At 20 points along the Gaza Strip’s southern border, Hamas operatives detonated explosives to topple an Israeli-built fence, allowing as many as 200,000 Palestinians�??13 percent of the territory’s population�??to cross into Egypt and shop. The Gazans purchased camels, candy, cement, chairs, cheese, cigarettes, computers, cows, doughnuts, gasoline, generators, goats, mattresses, medicine, motorcycles, pistols, potato chips, sheep, snack cakes, soap, and televisions. Supplies at Egyptian shops dwindled, prices spiked, and fistfights ensued. Several Gazan women married Egyptians, and the Israel Defense Force patrolled its southern border for would-be suicide bombers and hostage takers.New York TimesJerusalem PostAFPDublin IndependentSeif al-Islam Qaddafi, the 36-year-old …

President George W. Bush called for $145 billion in tax cuts, describing the measures as a “shot in the arm” for the U.S. economy, which caused stock values to plunge in Australia, Tokyo, Hong Kong, China, and across Europe. “There’s something approaching panic in the market,” said an analyst with Bank of America. “The short-term risks,” explained Treasury Secretary Henry Paulson, “are to the downside.”BBC NewsNew York TimesBBC NewsResearchers found that foreigners invested $414 billion in American companies in 2007, up 90 percent from 2006. “This is a vote of confidence in the American economy,” said Deputy Treasury Secretary Robert …

Charges of a rigged presidential election triggered violence along tribal lines in Kenya, leading to more than 700 deaths and the displacement of 250,000 Kenyans. Opposition leader Raila Odinga, who lost the election to incumbent Mwai Kibaki, said that his first cousin Barack Obama had called him twice to express his concern, “despite being in the middle of the very busy New Hampshire primary.”AFP.comTelegraph.co.ukObama and Mike Huckabee were the surprise winners of the Iowacaucuses. “None of this worries me,” said Rudy Giuliani, who came in sixth place in the Republican caucus. “September 11, there were times I was worried.”NYDailyNews.comJohn McCain …

President George W. Bush predicted a “nuclear holocaust” if Iran develops weapons of mass destruction and accused the country of undertaking “murderous activities in Iraq”; Iran’s foreign minister described Bush’s comments as a sign of “political despair” caused by “a serious problem in creating propaganda for the next election.” BBCBBCBreitbart.com via Drudgereport.comBush announced his intention to found a “fantastic Freedom Institute” after he leaves office,NY Timesand two brothers survived in a collapsed Beijing coal mine for five days by eating coal and drinking their own urine. “You can only take small sips,” said Meng Xianchen, “and when you’ve finished, you …

Federal agents in Missouri found two kidnapped adolescent boys in the apartment of Michael Devlin, a 41-year-old pizzeria manager. “I still feel like I’m in a dream, only this time it’s a good dream, not the nightmare I’ve had to live for the past four-and-a-half years,” said the mother of one of the boys. New York TimesThe Bush Administration announced plans to increase U.S. forces in Iraq by 20,000 troops,New York TimesAmericans in Erbil arrested six Iranians working at a diplomatic office, New York Timesand Senator Joseph R. Biden Jr. (D., Del.) asserted that the authority Congress granted the Bush …

President George W. Bush confirmed the existence of secret extra-territorial prisons operating beyond the scope of American law.ABC NewsThe U.S. Army promised to stop intimidating prisoners by placing hoods over their heads, or by simulating their drowning, or by threatening them with dogs,New York Timesand President Bush emphasized the fine line between “alternative” interrogation methods and torture.CNNThe Iraqi government took control of its own army,Times of Londonand the United States increased the number of troops in Iraq by 15,000.Houston ChronicleAn official at the Baghdad morgue said that last month’s death toll was actually triple the number first reported.Christian Science MonitorSecretary …

Runaway Raft on the Tigris. Thousands of U.S. Marine reserves were involuntarily recalled to active duty to offset a lack of volunteers for the fighting in Iraq and Afghanistan.CNNPresident George W. Bush admitted that the Iraq war was “straining the psyche of our country,”Washington Postand Secretary of State Condoleezza Rice refused to categorize the fighting in Iraq as a civil war, citing instead “sectarian differences.”Washington PostThree Kurdish women testified against Saddam Hussein in his chemical-weapons genocide trial, describing a “sweet, mysterious smell” that blinded them, killed their relatives, and forced them to hide in caves.New York TimesA senior U.S. general …

It was revealed that the National Security Agency, with the assistance of AT&T, Verizon, and BellSouth, has secretly stored the phone call records of tens of millions of Americans. “It’s the largest database ever assembled in the world” said an anonymous whistleblower. A poll found that 63 percent of Americans feel that it is acceptable for the NSA to build such a database.USA TodayMedia Matters for AmericaABC NewsIt was reported that the United States was analyzing phone call records of reporters from ABC News, the New York Times, and the Washington Post to determine the identities of CIA employees who …

More than 100 people were killed in fighting in Iraq. “I think,” said the U.S. ambassador to Iraq, “the country came to the brink of civil war. But Iraqis decided that they didn’t want to go down that path.”The New York TimesThe New York TimesIn the Baghdad area, Sunni militants were evicting Shiites from their homes. “We want you out of here by 8 p.m. tomorrow,” one man was told. “If we find you here, we will kill you.”The Washington PostPresident George W. Bush said that Iraq’s choice was between “chaos or unity,”The New York Timesand it was reported that …

The Conservative Party won a plurality of seats in Canada’s federal election, making Stephen Harper Canada’s next prime minister.CBC.caThe Islamic group Hamas won 76 of 132 parliamentary seats in Palestine’s parliamentary elections, unseating the Fatah party. U.S. President George W. Bush, whose administration supported open democratic elections in Palestine, said that the United States would not negotiate with Hamas until the organization renounced its chartered goal of destroyingIsrael,BBC Newsand U.S. Secretary of State Condoleezza Rice announced that the United States would cut off aid to Palestine if Hamas assumed power without changing its policies. “I’ve asked why nobody saw it …

In Iraq 30 people were killed at makeshift checkpoints, 22 people died in suicide bombings, 9 people were killed in an ambush, 5 bodies were found in the Qaid River, 4 children were killed by rocket-propelled grenades, and 2 American civilians were killed in a roadside bombing. Suicide bombings killed at least 22 people in Afghanistan and injured 30 people in Tel Aviv.Democracy Now!The Boston GlobeCRI OnlineSign On San Diego.comOsama bin Laden released a tape in which he warned of new attacks on the United States and offered a truce. “Your president,” said bin Laden, “is misinterpreting public opinion polls …

Runaway Raft on the Tigris. In Baghdad at least 28 people were killed when two suicide bombers attacked the Interior Ministry.BBC NewsWalter Cronkite called for the U.S. to withdraw from Iraq,CBC.comand Iraq’selectoral commission ruled that 99 percent of ballots cast on December 15, 2005, were valid.Forbes.comU.S. troops continued to be plagued by improvised explosive devices, or IEDs. “They blow up,” said a Marine corporal, “and you can’t find the triggerman. You’re mad, and you just want to kill someone, and you can’t find them.”The Wall Street Journal/A1The United States bombed Pakistan. The missiles were intended to kill Al Qaeda leader …

Lost Souls in Hell, 1875. It was hot in most of the United States. Many U.S. cities set records for high temperatures, and huge wildfires burned in the Southwest. At least twenty people, many of them homeless, died from the heat in Phoenix, Arizona.The New York TimesWashington PostConcern over storms in the Gulf of Mexico led to an increase in oil prices,Reutersand the directors of Enron gave themselves large raises.KLTVInvestigations into the expenses of former Tyco executive Dennis Kozlowski revealed that Kozlowski had once held an extravagantbachelor party for his son-in-law. “It wasn’t like a three-ring circus,” said the son-in-law’s …

In Iraq at least one hundred Iraqis and eleven U.S. troops were killed in a span of four days. More than twenty car bombs were detonated, and in one case, a suicide bomber drove a car bomb into a Kurdish funeral tent, killing at least twenty-five people. Los Angeles TimesAccording to General Richard Myers, the Chairman of the Joint Chiefs of Staff, the strength of the Iraqi militant movement has not diminished during the past year.The GuardianArab newspapers reported that Donald Rumsfeld had a secret visit with Saddam Hussein and offered to free him if Hussein called for a ceasefire …

Weighing the soul, 1875. A suicide bomber set off a bomb at a mess tent on a U.S. base in Mosul, killing 22 and wounding 69. Among the dead were 13 American soldiers and four employees and subcontractors of Halliburton. A spokeswoman for Halliburton called for a full investigation into the attack. South of Kirkuk, insurgents set an oil well on fire,AP and south of Baghdad, an explosives-rigged gas tanker blew up, killing at least eight.AP Families returned to the bombed-out city of Falluja and found little clean water.APAPDonald Rumsfeld made a surprise trip to Mosul on Christmas Eve.New York …

The Senate Intelligence Committee released a scathing report on the CIA’s unfounded, unjustified, and unreasonable claims about Iraq’s purported weapons of mass destruction; the report was oddly silent, however, about the Bush Administration’s well-documented and apparently successful campaign to intimidate the CIA into coming up with justifications for the President’s fraudulent case for the invasion.New York TimesSenator Trent Lott was outraged by the CIA’s “totally ridiculous, uncalled for, and counterproductive” redactions of the report and called for an independent commission to oversee the classification of government information.New York TimesJapan’s defense ministry said that it will issue its annual defense whitepaper …

The Bush Administration, worried about the political cost of the Iraq war and increasingly plagued by comparisons with Vietnam, decided to speed up its “Iraqification” plan by transferring sovereignty to a provisional native government by June 30.New York Times, USA Today“They are, we believe, ready for it,” said Condoleezza Rice. “And they have very strong ideas about how it might be done.” President Bush said that he believes the Iraqis “have the capacity to run their own country.”ReutersThe American-appointed mayor of Sadr City, a suburb of Baghdad, was killed after he drove into a forbidden area and got into a …