Obama's five rules of scandal response  —  Tuesday's report from the transition, detailing contacts between members of Obama's inner circle and embattled Illinois Gov. Rod Blagojevich and concluding that “nothing at all inappropriate” was discussed, won't be the final word on the subject …

Time to Reboot America  —  I had a bad day last Friday, but it was an all-too-typical day for America.  —  It actually started well, on Kau Sai Chau, an island off Hong Kong, where I stood on a rocky hilltop overlooking the South China Sea and talked to my wife back in Maryland, static-free, using a friend's Chinese cellphone.

Defense Spending Would Be Great Stimulus  —  All three service branches are in need of upgrade and repair.  —  The Department of Defense is preparing budget cuts in response to the decline in national income.  The DOD budgeteers and their counterparts in the White House Office of Management …

Nearly the End of the Line for S.U.V.'s  —  JANESVILLE, Wis. — Even a federal bailout could not save three of the last remaining plants in the United States still making sport utility vehicles.  —  Reeling from its financial problems and a collapsing S.U.V. market, General Motors …

Consumers Slash Spending  —  Jobless Claims Increase; Orders for Durable Goods Slide  —  WASHINGTON — Consumers slashed spending a fifth month in a row during November, and they boosted savings yet again to cushion themselves from the recession.  —  Separately, a key consumer price gauge fell …

‘5-alarm fire’  —  As it wraps up its case against gov, impeachment panel hears how he got 435 contributions of $25,000 or more  —  SPRINGFIELD — Awaiting direction from federal prosecutors, the House impeachment panel all but wrapped up its case against Gov. Blagojevich on Monday …

Texas report: Abuse widespread in polygamist sect  —  SAN ANTONIO (AP) — Nearly two-thirds of the families living at a polygamist group's ranch — targeted in a high-profile raid last spring — had children who were abused or neglected, Texas child welfare officials said in a report released Tuesday.

The Big Question: What's behind Christmas traditions - and just how traditional are they?  —  Why are we asking this now?  —  Tonight you will put up the stockings, Santa Claus will arrive on his sleigh drawn by reindeer to slide down your chimney in his trademark red suit with a sack over his shoulder …

For Stimulus Plan, Obama Team Weighing ‘Green’ Jobs vs. Traditional Projects  —  Obama Weighs Them Vs. Traditional Projects  —  In one of the first internal struggles of the incoming Obama administration, environmentalists and smart-growth advocates are trying to shift the priorities …

For Now, Obama Proves to Be Elusive Target for G.O.P.  —  WASHINGTON — It's not so easy being the loyal opposition these days.  —  Two months after Barack Obama's election, Republicans are struggling to figure out how — or even whether — to challenge or criticize him as he prepares to assume the presidency.

U.S. and Afghans Plan to Recruit Local Militias  —  KABUL, Afghanistan — Taking a page from the successful experiment in Iraq, American commanders and Afghan leaders are preparing to arm local militias to help in the fight against a resurgent Taliban.  But along with hope …

President Bush pardons Brooklyn home scammer  —  BY JOHN MARZULLI IN NEW YORK AND JAMES GORDON MEEK IN WASHINGTON  —  President Bush pardoned a Brooklyn real estate developer accused of scamming hundreds of poor, minority homebuyers - and whose father donated $28,500 to the Republican Party this year.

Poll: Illinois governor named naughtiest politician of 2008  —  (CNN) — A new national poll suggests Illinois Gov. Rod Blagojevich could be on the top of Santa's naughty list.  —  Fifty-six percent of those questioned in a CNN/Opinion Research Corp. survey released Wednesday said Blagojevich …

Palestinian terrorists bombard Ashkelon with Grad rockets  —  Palestinian terrorists on Wednesday morning fired over 60 rockets and mortar shells from the Gaza Strip at Ashkelon and the western Negev, prompting Israel to hold up a shipment of aid scheduled to pass through to the Strip later Wednesday.

Wal-Mart Settles 63 Lawsuits Over Wages  —  Wal-Mart said on Tuesday that it would pay at least $352 million, and possibly far more, to settle lawsuits across the country claiming that it forced employees to work off the clock.  Several lawyers described it as the largest settlement ever for lawsuits over wage violations.