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Democrats prefer to use money from the $700 billion that was approved in September to bailout the banking system, a move opposed by President Bush, Treasury Secretary Henry Paulson and most congressional Republicans. In the Senate, especially, Dems need at least nine Republicans to pass veto-proof legislation, assuming they can count on all their members, which makes coming to a deal in a lame-duck session particularly difficult. Other options Democrats are exploring include asking the Federal Reserve to supply the loans or requiring the banks that the government is currently bailing out to loan the money...

Author: /time Magazine | Title: Big Three Bailout Hits Some Speed Bumps in Washington | 12/4/2008 | See Source »

...hopeful postscript to the GOP's humiliating losses in the Nov. 4 elections, incumbent Saxby Chambliss beat Jim Martin in a runoff vote, dashing the Democrats' hopes for a filibuster-proof Senate. With turnout low despite high-profile stumping by Sarah Palin, John McCain, Bill Clinton and Al Gore--as well as Atlanta rappers Ludacris and T.I.--Chambliss won some 57% of the vote...

Author: /time Magazine | Title: The World | 12/4/2008 | See Source »

...turned their wrath on Turkomans, though the violence quickly subsided. Since then, a war of words has broken out. Arab politicians in Baghdad were enraged when the provincial government of Kurdistan struck deals with oil companies without consulting Prime Minister Nouri al-Maliki's government; this was seen as proof that the Kurds were trying to grab Kirkuk's resources for themselves...

Author: /time Magazine | Title: When the U.S. Leaves, Will Iraq Strut or Stumble? | 12/4/2008 | See Source »

Barack Obama represents a profound moral breakthrough in history as well as in human attitudes in America. He is proof that what seemed almost unthinkable yesterday is now possible. Visiting the South in the mid-'50s, I confronted racism not only in the streets but also in the courts. The law itself was racist, ugly, inhuman. I felt shame. Now, 50 years later, America is proud...

Author: /time Magazine | Title: Person of the Year | 12/4/2008 | See Source »

...past - God's Rottweiler, the Panzercardinal - don't seem to stick anymore. After acquiring a reputation as an aggressive, doctrine-enforcing Cardinal, Pope Benedict XVI has surprised many with his gentle manner and his writings on Christian love. But with the Christmas season upon us, there is growing proof that the 82-year-old Pope is also quite willing to play the part of Scrooge to defend his often rigid view of Church doctrine...

Author: /time Magazine | Title: The Pope's Christmas Gift: A Tough Line on Church Doctrine | 12/3/2008 | See Source »

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