The latest news on the Bailout, Auto Industry, Prop 8, Obama Transition, Germany, Iran, Sudan, Congo, North Korea, and Israel.

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Bailout. Bailout retooled to boost lending "Treasury Secretary Henry Paulson yesterday backed away from the original strategy behind the $700 billion U.S. plan for propping up the limping economy, opening the door to pump government cash into credit card companies, auto financing firms, and other consumer lenders in addition to banks." U.S. Shifts Focus in Credit Bailout to the Consumer "Henry M. Paulson Jr. is hoping to put in place a major new lending program run by the Fed and aimed at unlocking the frozen consumer credit market." Bailout Lacks Oversight Despite Billions Pledged "While money has been pouring out of program, no formal action has been taken to fill independent watchdog posts established by Congress."

Auto Industry. Can Congress save the U.S. auto industry? "The lame-duck Congress is expected to reconvene next week with a bid to help the ailing Detroit carmakers, and lawmakers are weighing initiatives that could provide as much as $50 billion in new assistance. But no legislative decisions have been made, and the principal players are saying nothing publicly." G.M.'s Troubles Stir Question of Bankruptcy vs. a Bailout "General Motors, with dire warnings, is seeking a bailout, but skeptics point to the benefits of bankruptcy, which can offer a new start." G.M.'s Troubles Stir Question of Bankr uptcy vs. a Bailout "Washington for a rescue package for the auto industry to head off a possible bankruptcy filing by General Motors, which is rapidly running low on cash."

Prop 8. Angrier response to Prop. 8 steps up "After a professional campaign failed to defeat the measure, a Web-based opposition is making itself heard." New Yorkers March Against Proposition 8 "Last night, hundreds, perhaps thousands, of people gathered for a protest outside the Church of Latter Day Saints' Manhattan Mormon Temple and marched down Broadway to Columbus Circle. They were protesting California's passage of Proposition 8, which bans gay marriage; the Mormon Church is targeted because a lot of support and funding for advertising to support Proposition 8 came from Mormons."

Obama Transition. Fresh faces in 'team Obama' "A look at some of the people who could shape policy in the Obama administration." Why Obama can heal U.S. racial wounds "Rob Reynolds reflects on why Obama can help the U.S. overcome its racist past." Rights groups urge Obama to mount Guantanamo probe "The commission would systematically examine the U.S. treatment of detainees at Guantanamo and elsewhere since the 9/11 attacks. The groups made the recommendation as they released a two-year study of the impact of U.S. detention and interrogation practices on former captives that was similar to one McClatchy published earlier this year." For a Washington Job, Be Prepared to Tell All "Those seeking top posts in the Obama administration must fill out an extensive -- some say invasive -- application." Justice Dept. Overhaul Will Be a Major Task "As a transition team for the Obama administration begins work on a Justice Department overhaul, the key question is where to begin."

Germany. Germany falls into recession "Government data shows that the German economy is officially in recession." Germany's economy falls into recession "Official German figures show Europe's biggest economy is in recession, raising fears for the rest of the continent."

Iran. Iran diplomat abducted in Pakistan "Iranian diplomat is seized in Peshawar and his guard shot dead." Iran tests new missile that can reach Europe "Iran said it successfully test-fired a new generation of long range surface-to-surface missile yesterday -- one that could easily strike as far away as southeastern Europe with greater precision than earlier models." American aid worker gunned down in Pakistan ambush "An American aid worker overseeing a high-profile U.S. development program for Pakistan's tribal area was gunned down Wednesday in the northwest city of Peshawar in what's thought to be the first targeted killing of a Westerner in the current campaign of violence by Islamic extremists." Iran Suddenly Hedges on Talks "For nation's leaders, only thing worse than poor relations with the U.S. may be improved relations."

Sudan. Sudan announces Darfur ceasefire "Omar al-Bashir, Sudan's president, has announced a unilateral ceasefire by government forces in the country's western Darfur region."

Congo. In Congo, Clashes and Cholera "Fighting between rebels and the government has left tens of thousands of refugees desperate for international aid."

North Korea. N. Korea rejects a test at nuclear sites "North Korea said yesterday that it won't allow outside inspectors to take samples from its main nuclear complex to verify the communist regime's accounting of past nuclear activities."

Israel. Arab leaders stay, listen to Israeli "A U.N. conference on religious tolerance broke new ground Wednesday when a half-dozen Arab leaders -- including Saudi King Abdullah for the first time ever -- stayed in their seats while an Israeli president spoke." Israel delays Gaza aid supplies "Israel refuses entry to Gaza of 30 lorries carrying humanitarian supplies, sparking fears that U.N. supplies will run out."