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Front Page: Plan to Aid Homeowners, Huge Blasts Hit India, Economy Officially Shrinking

  • Plan to Aid Homeowners:
    The Bush administration is discussing a plan to help three million homeowners with their mortgages so they can stay in their homes. In what could be the most comprehensive effort directed at the housing crisis, the government would absorb half of the losses on home loans if mortgage companies lower payments for five years. The $50 billion cost would be part of the $700 billion bailout.
  • Huge Blasts Hits India:
    A series of bomb explosions in India has killed at least 50 people and injured more than 150. There were at least 18 blasts, most in the main city of Guwahati. No one has yet claimed responsibility but police suspect the separatist United Liberation Front of Assam. The police chief says, "No other group can trigger so many blasts in so many places in such a coordinated fashion."

  • Economy Officially Shrinking:
    The US economy shrank 0.3 percent during the period between July and September. Consumer spending, which makes up two-thirds of the US economy, shrank by 3.1 percent, the first contraction since 1991. The shrinkage means the US is halfway to the standard definition of a recession, which means two consecutive quarters of negative growth, though in the US, there's never a recession until the National Bureau of Economic Research decides there is.

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