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 …

Twenty U.S. soldiers were killed last week fighting across Iraq, and 1,300 Iraqi officers and soldiers were fired for poor performance. The Bush Administration said it was optimistic that many more refugees from the estimated 4.4 million people who had fled Iraq or had been “internally displaced” would be allowed into the United States. Since the war began the United States has accepted only 5,000 Iraqi refugees. Sweden has taken 34,000.ReutersIHTHillary Clinton and John McCain accused Barack Obama of elitism after Obama commented on the bitterness of working-class people in a speech at an expensive San Francisco fund-raiser. “They cling …

“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, …

The Cloaca Maxima, 1872 Iraqis took to the streets after the national soccer team beat Saudi Arabia 1?0 in the Asian Cup championship. At least four people were killed by “happy fire” in the midst of what were reported to be the largest spontaneous celebrations in Iraq since the fall of Saddam Hussein. “Sport brings us together while the heads of everything in Baghdad can’t bring us together for five years,” said one reveler. “If the Iraqi football team ruled us, peace would spread in our home.” Each member of the Lions of the Two Rivers will receive $10,000 from …

Caught in the Web, 1860. A White House report showed that only eight of eighteen benchmarks for progress were being met in Iraq, but President Bush asked Congress to wait for another report in September before passing judgment.NYTNYTRyan C. Crocker, U.S. ambassador to Iraq, pleaded against withdrawal. “In the States,” said Crocker, “it’s like we’re in the last half of the third reel of a three-reel movie, and all we have to do is decide we�??re done here, and the credits come up, and the lights come on, and we leave the theater and go on to something else. Whereas …

Saddam Hussein’s cousin Ali Hassan al-Majeed, also known as “Chemical Ali,” was sentenced to death for his role in Iraq’s Kurdish genocide.Reuters CanadaHamas militants released an audio recording of captured Israeli soldier Gilad Shalit in which he states, “I am sorry that the Israeli government has not shown more interest. It should meet the demands of my kidnappers so I can be released.”BBCSeven children were killed during a coalition-led airstrike in Afghanistan,.NYTand the Gaza kidnappers of Britishjournalist Alan Johnston released a video of Johnston wearing an explosives vest, which he says will be detonated if force is used to try …

An American cattleman. The United StatesSupreme Court ruled in a 5 to 4 decision that the 2003 Partial Birth Abortion Ban Act is legal.Washington PostAttorney General Alberto Gonzales testified before the Senate Judiciary Committee regarding the firing of federal prosecutors; Senator Jeff Sessions (R., Ala.) told Gonzales his ability to lead was in question, and Senator Tom Coburn (R., Okla.) asked Gonzales to resign. One prominent Republican said the hearing was like “clubbing a baby seal.”New York TimesRaw StoryA series of attacks in Shiite districts of Baghdad killed at least 158 people, the largest number of people killed in a …

The Cloaca Maxima, 1872 The U.S. House of Representatives passed a timetable for ending the Iraq war by a six-vote margin. The bill mandates American withdrawal in September 2008 if the Bush Administration meets certain benchmarks, earlier if it does not. Several Democrats voted against the timetable because it was not sufficiently antiwar, and Republicans derided the inclusion of domestic provisions benefiting spinach growers, citrus farmers, salmon fishermen, and peanut storers. “What does throwing money at Bubba Gump, Popeye the sailor man, and Mr. Peanut have to do with winning a war?” asked Representative Sam Johnson of Texas. “I will …

Hillary Rodham Clinton announced that she will run for President in 2008, and Barack Hussein Obama released a video on the Internet announcing that he has formed a presidential exploratory committee. It was reported that Obama had concealed that he was raised as a Muslim and had attended a madrassah as a child.BBCWashington PostSeventy Iraqis died and 170 were injured when two bombs exploded at a university in Baghdad.CNNThe United Nations announced that 34,452 civilians were killed in Iraq last year, a number nearly three times higher than previous estimates by the Iraqi interior ministry.BBC“I think,” said President George W. …

An American cattleman. Robert Gates was approved by the Senate to replace Donald Rumsfeld as the new secretary of defense; senators described themselves as “very pleased,” “very impressed,” “very enthusiastic,” “very grateful,” and “very happy” with the confirmation. Rumsfeld gave an emotional farewell speech to Pentagon employees, and had to wipe his nose.Washington PostWashington PostNew York TimesPresident George W. Bush blamed John Bolton’s departure from the U.N. on the “shallow politics” of the Senate, and Kofi Annan, who will leave the U.N. on December 31 after completing his second five-year term as secretary general, said that he and Bolton were …

“Into the palace parlor they stepped; her hand in his paw the old bruin kept,” 1875 Two hundred fifteen people were killed in a massive bombing and mortar attack on a Shiite neighborhood in Baghdad, marking Iraq’s largest single-day death toll since the U.S. invasion. The killings prompted Shiite militiamen to seize and burn alive as many as twenty-four Sunnis; other Shiite residents of the capital stoned Prime Minister Nouri al-Maliki. “It’s all your fault!” one man shouted.AP via MSNBCReutersElsewhere in Baghdad, insurgents set fire to a U.S. base, APand the host of a popular satirical Iraqitelevision show was found …

The Cloaca Maxima, 1872 Iran criticized Australia, Bahrain, Britain, France, Italy, and the United States for carrying out a practice naval exercise in the Persian Gulf, then announced ten days of “Great Prophet II” war games.AP via International Herald TribuneBreitbartThe International Atomic Energy Agency said that it has been approached by at least six Arab countries interested in developing their own nuclear programs,Reuters via Yahoo! Newsand the U.S. government shut down its “Operation Iraqi Freedom Document Portal” website after the New York Times pointed out that it contained instructions for building an atomic bomb. “It’s a cookbook,” explained a senior …

President George W. Bush officially replaced the phrase “stay the course” in Iraq with “We will stay in Iraq,” and Iraqi Prime Minister Nouri al-Maliki insisted he never agreed to a U.S. timetable for reducing sectarian violence. “I’m not America’s man,” he said.Chicago TribuneNew York TimesNews.com.auDefense Secretary Donald Rumsfeld told critics of the war to “back off.”Yahoo NewsIn Basra, Prince Philip of Britain assured the troops “at the sharp end” that “a great many locals do very much appreciate what you are trying to do for them,”New Zealand Heraldand Senator Rick Santorum said, “As the hobbits are going up Mount …

President George W. Bush signed the Military Commissions Act, which suspends the right of habeas corpus for terrorism suspects and grants immunity to CIA interrogators and government officials, such as President Bush, for violations of the War Crimes Act. New York TimesChicago Sun-TimesDomestic security officials notified seven football stadiums of a discredited threat of radiological bomb attacks out of an “abundance of caution,” New York Timesand the United States Coast Guard announced plans to mount 7.62 mm, M-240B machine guns on official boats in the Great Lakes. Rear Adm. John E. Crowley Jr. said, “I don�??t know when or if …

Further allegations emerged regarding the behavior of recently-resigned Congressman Mark Foley (R., Fla.) with underage pages. “He didn’t want to talk about politics,” said one former page. “He wanted to talk about sex or my penis.” Congressman Jim Kolbe (R., Ariz.) said that he had confronted Foley over inappropriate contact with pages as early as 2000, and House Speaker J. Dennis Hastert vowed not to resign over the scandal.ABC NewsSouth Korean soldiers fired 60 warning shots after North Korean soldiers crossed into the demilitarized zone, but it was not clear if North Korea’s action was a deliberate provocation or an …