Caught in the Web, 1860. After many years of increasing borrowing and at least thirteen months of evidence of an impending catastrophe, American financial institutions faced the worst credit crisis since the Great Depression. “The world,” explained Iranian President Mahmoud Ahmadinejad, “no longer has the capacity to absorb fake U.S. dollars.”EconomistThe Wall Street JournalBloombergGlobal stock markets lost $3.1 trillion in four days, and American International Group (AIG), the world’s biggest insurance company and a leader in the $62 trillion credit-default swap market, was nearly bankrupted. “The private market has screwed itself up,” said Representative Barney Frank (D., Mass.), “and they …

An American cattleman. Members of a North African faction of Al Qaeda detonated bombs at the U.N. complex in Algeria and at the country’s Supreme Court, killing at least 26 people and injuring more than 170.Washington PostNew York TimesA top Lebanese army general was assassinated by a car bomb as he was leaving his home,Washington Postand a triple car bombing in southern Iraq killed at least 46 people. “I don’t think,” one resident said, “there will be any safe place in Iraq after what happened today.”Washington PostThe U.S. Postal Service was throwing away hundreds of thousands of holiday cards addressed …

At least 150 Iraqis were killed by a truck bomb in northern Iraq in possibly the deadliest bombing since the United States invaded in 2003, and it was reported that, despite a police security drive, the number of unidentified bodies found in Baghdad had increased sharply in June. New York TimesBBCnews.comAustralia’s defense minister, Brendan Nelson, admitted that securing oil is one of the reasons Australian troops stay in Iraq. “This government,” said Labor leader Kevin Rudd, “simply makes it up as it goes along.”BBCnews.comThe White House rejected demands to hand over documents related to the firings of eight U.S. attorneys …

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 …

Killing Ground. Iranian president Mahmoud Ahmadinejad, speaking at the United Nations in New York, proclaimed his love for all the world’s peoples, and suggested that the United States halt domestic fuel production and buy its energy from him “at a fifty percent discount.”BBC NewsVenezuelan president Hugo Chavez objected to the smell of sulfur in the U.N.’s General Assembly hall, and offered to relocate the U.N.’s headquarters to Caracas. New York timesFox NewsTed Turner called the Iraq war one of the “dumbest moves of all time,”CNNand a spokesman for the Iraq Study Group, a think tank created to analyze events in …

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 …

Hezbollah declared victory in its 34-day war with Israel. “I guess,” said President George W. Bush, “I would have done the same thing if I were them.” Prime Minister Ehud Olmert pledged that Israel would “do better” in what Defense Minister Amir Peretz referred to as “the next round.” An official said killing Hezbollah leader Sheikh Nasrallah was a top priority.The Daily Telegraph (Australia)Dan Halutz, chief of staff of the Israeli Defense Forces, was under fire for selling all of his stocks in the hours before the war began.The Wall Street JournalThe New York TimesThe Daily Telegraph (UK)The New York …

Connecticut Senator Joseph Lieberman lost the DemocraticSenate primary election to anti-Iraq-war candidate Ned Lamont. Lieberman then announced that he would run as an independent candidate, and that “Team Connecticut” would “surge forward to victory.” Vice President Dick Cheney said that Lamont’s victory was encouraging to “Al Qaeda types.”Chicago Sun-TimesUnder pressure from U.S. officials, authorities in the United Kingdom announced the discovery of a terrorist plot to blow up as many as ten passenger planes in the air, possibly by using explosive liquids hidden inside sports-drink bottles. Twenty-one suspects were arrested. Britain raised its threat level to “critical”; the United States …

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 …

The U.S. State Department issued a report criticizing human rights abuses in China, North Korea, Iran, and Cuba. It also criticized the rights records of Jordan and Egypt, two countries where the United States has sent detainees to be interrogated. The report noted that the United States’ “own journey towards liberty and justice for all has been long and difficult,” and is “far from complete.”The New York TimesThe IndependentA bombing at a Shiite market in Sadr City, Iraq, killed at least 50 people; Shiite vigilantes responded by abducting four men, beating and executing them, and hanging them from lampposts.The New …

In Iraq a car bomb killed 16 people and wounded 90, 14 bodies were found stacked in a hole, 5 U.S. troops were killed, and Saddam Hussein was boycotting his own trial.CNN.comProfessor Philippe Sands of University College, London, said he had seen a secret memo that details a January 2003 meeting between British Prime Minister Tony Blair and U.S. President George W. Bush. According to Sands’ account of the memo, Blair offered Bush full British support for an invasion of Iraq regardless of whether U.N. inspectors found evidence of weapons of mass destruction. Bush also told Blair that he was …

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 …

White House photo. General George Casey, the top U.S. commander in Iraq, presented a plan for the withdrawal of U.S. troops from Iraq to Secretary of Defense Donald Rumsfeld.CNN.comSaddam Hussein, on trial with seven other defendants for killing civilians in 1982, complained to a judge about being denied a pen and paper;CNN.comIraqi Prime Minister Ayad Allawi said that human-rights abuses in Iraq are “the same . . . and worse” than they were under Saddam Hussein.Guardian UnlimitedGunmen in Baghdad killed a Sunni Arab chief, his three sons, and his son-in-law,BBC Newsand south of Baghdad thirty people were killed when a …

The United States military published its first public estimate of the number of Iraqi civilians and soldiers killed by Iraqi militants. The estimate appears as a single bar graph on page 23 of a report to Congress and does not provide actual numbers, but by extrapolating from the graph it appears that insurgents are wounding and killing 63 Iraqis a day, and have wounded or killed 25,902 Iraqis since the war began. Some analysts said the numbers seemed low. The number of Iraqi civilians wounded or killed by U.S. forces was not mentioned in the report.The New York TimesThe number …

At least 167 Baghdad residents were killed in 14 separate bombings, with 570 wounded. The next day 40 people were killed with car bombs and guns. Twenty-one more were killed the next day, 52 more the day after that, and 7 the day after that. At least 30 more people were killed the following day.The IndependentSenator Robert Byrd called on the Bush Administration to withdraw from Iraq. “We cannot continue to commit billions in Iraq,” he said, “when our own people are so much in need.”Democracy Now!It was reported that $1 billion had been stolen from Iraq’s defense ministry, and …

Lost Souls in Hell, 1875. In the aftermath of Hurricane Katrina the United States declared disasters in Alabama, Florida, Louisiana, and Mississippi. Taken together, the 90,000-square-mile disaster area would be the twelfth largest state. Emergencies were declared in Colorado, Georgia, North Carolina, Oklahoma, Tennessee, Utah, and West Virginia.U.S. Department of DefenseEighty percent of New Orleans was flooded after levees were breached by rising water. LA Times“I don’t think,” said President George W. Bush, “anyone anticipated the breach of the levees.” Homeland Security Secretary Michael Chertoff said the disaster “exceeded the foresight of the planners, and maybe anybody’s foresight.” The flooding …

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 …