The Michigan Daily - michigandaily.com

Tuesday, October 28, 2008 - 3

The Michigan Daily - michigandailycom Tuesday, October 28, 2008 - 3

NEWS BRIEFS
WASHINGTON
Feds disrupt
alleged plot
targeting Obama
Two white supremacists alleg-
edly plotted to go on a national
killing spree, shooting and decapi-
tating black people and ultimately
targeting Democratic presidential
candidate Barack Obama, federal
authorities said Monday. .
In all, the two men whom offi-
cials described as neo-Nazi skin-
heads planned to kill 88 people
- 14 by beheading, according to
documents unsealed in U.S. Dis-
trict Court in Jackson, Tenn. The
numbers 88 and 14 are symbolic
in the white supremacist commu-
nity.
The spree, which initially tar-
geted an unidentified predomi-
nantly African-American school,
was to end with the two men driv-
ing toward Obama, "shooting at
him from the windows," the docu-
ments show.
JERUSALEM
Polls show even
split in Israeli
elections
Israel moved closer Monday to
a bruising election campaign that
will decide the future of peace
talks, as polls showed the moder-
ate foreign minister, Tzipi Livni,
in a surprisingly close race with
hard-line opposition leader Benja-
min Netanyahu.
Neither of Israel's two lead-
ing political parties would have
enough seats to form a govern-
ment on its own, according to the
surveys, which also showed an
even split between the country's
hawkish and center-left blocs.
That signals more deadlock in
peacemaking with Syria and the
Palestinians.
Palestinian Prime Minister
Salam Fayyad expressed concern
Monday that precious time was
running out, "although I still have
hope that we can find a solution
through negotiation."
KABUL, Afghanistan
Gunfire downs
U.S. helicopter
in Afghanistan
Insurgents shot down a U.S. he-
licopter after exchanging fire with
its crew in central Afghanistan on
Monday, while a suicide bomber in
the north killed two U.S. soldiers
inside a police station, officials
said.
The helicopter was forced down
in Wardak, one province west of
Kabul, after insurgents hit it with
gunfire Monday, said Lt. Cmdr.
Walter Matthew, a U.S. military,
spokesman. The crew survived
and have been extracted from the
area, he said.
"Thehelicopter crew exchanged
fire with the enemy before the
damage brought the helicopter
down," Matthews said. Coalition
troops secured the area and "are

in the process of recovering" the
helicopter, he said.
WASHINGTON
September new
home sales rise
by 2.7 percent
CSales of new homes recorded
an unexpected increase in Sep-
tember as median home prices
dropped to the lowest level in four
years, the Commerce Department
reported Monday.
Sales of new single-family
homes rose by 2.7 percent last
month to a seasonally adjusted
annual rate of 464,000 homes,
Commerce said. Economists had
expected sales would drop from
the August level.
The median price of a new
home sold in September declined
by 9.1 percent from a year ago to
$218,400, the lowest price level
since September, 2004, a period
when home prices were rising rap-
idly as the country experienced a
five-year housing boom.
- Compiled from
Daily wire reports
U.s. EA H
9186
Number of American service
members who have died in the
war in Iraq, according to The
Associated Press. There were no
deaths identified yesterday.

Stevens guilty on 7 counts, McCain fights for

won't quit Senate race

election comeback in
hard-hit Ohio

Charges against
senator include
accepting gifts and
lying about them
WASHINGTON (AP) - Ted
Stevens, a pillar of the Senate for
40 years and the face of Alaska
politics almost since statehood,
was convicted of a seven-felony
string of corruption charges Mon-
day - found guilty of accepting a
bonanza of home renovations and
fancy trimmings from an oilexecu-
tive and then lyingaboutit.
Unbowed, even defiant, Stevens
accused prosecutorsofblatantmis-
conduct and said, "I will fight this
unjust verdict with every ounce of
energy Ihave."
The senator, 84 and already fac-
ing a challenging re-election con-
test next Tuesday, said he would
stay in the race against Democrat
Mark Begich. Though the convic-
tions are a significant blow for the
Senate's longest-serving Repub-
lican, they do not disqualify him,
and Stevens is still hugely popular
in his home state.
The jury - itself a daily drama,
trying to expel one of its own
members - convicted Stevens of
all the felony charges he faced,
accusations based heavily on the
testimony ofawealthy oil contrac-
tor who for years had been a fish-
ing and drinking buddy.
Visibly shaken after the verdicts
were read - the jury foreman
declaring "guilty" seven times
- Stevens tried to intertwine his
fingers but quickly put his hands
down to his side after noticing
they were trembling. As he left
the courtroom, he got a quick kiss

on the cheek from his wife, Cath-
erine, who testified on his behalf
during the trial.
Stevens faces up to five years
in prison on each count when he
is sentenced, but under federal
guidelines he is likely to receive
much less time, if any. The judge
did not immediately seta sentenc-
ing date.
The monthlong trial revealed
that employees for VECO Corp., an
oil services company, transformed
Stevens' modest Alaska mountain
cabin into a modern, two-story
home with wraparound porches, a
sauna and awine cellar.
Stevens said he had no idea
he was getting freebies. He said
his wife handled the business of
the renovation. He said he paid
$160,000 for the project and
believed that covered everything.
As his attorneys had during
the trial, Stevens said in a state-
ment issued afterward that pros-
ecutors had improperly held back
favorable evidence, had sent a
crucial witness back to Alaska
and "allowed evidence to be intro-
duced that they knew was false."
"I am innocent," he declared.
"I ask that Alaskans and my Sen-
ate colleagues stand with me as I
pursue my rights."Addressingthe
folks back home, he added, "I will
come home Wednesday and ask
for your vote."
He had asked for an unusually
speedy trial, hoping he'd be exon-
erated in time to win re-election.
Despite beinga convicted felon, he
is not required to drop out of the
race or resign from the Senate. If
he wins re-election, he can contin-
ue to hold his seat because there is
no rule barring felons from serv-
ing in Congress. The Senate could
vote to expel him on a two-thirds

vote.
"Put this down: That will never
happen - ever, OK?" Stevens said
in the weeks leading up to his
trial. "I am not stepping down.
I'm going to run through, and I'm
goingto win this election."
Taking nothing for granted,
Begich said merely, "This past
year has been a difficult time
for Alaskans, but our people are
strong and resilient and I believe
that we will be able to move for-
ward together to address the criti-
cal challenges that face Alaska."
Gov. Sarah Palin, the Repub-
lican vice presidential nominee,
said, "The verdict shines a light
on the corrupting influence of the
big oil service company that was
allowed to control too much of our
state. It was part of the culture of
corruption I was elected to fight.
And that fight must always move
forward regardless of party or
seniority or even past service."
"I'm confident Senator Stevens
will do what's right for the people
of Alaska."
Carl Shepro, a professor of
political science at the University
of Alaska in Anchorage, said, "It's
very possible that he's going to
win the election."
ManyAlaskansbelieveStevensis
beingunjustlyattacked,andthat the
charges against him don't amount
to real corruption, Shepro said.
Democrats, hoping to pick up
a long-sought Republican seat,
have invested heavily in the race,
running television advertisements
starring fictional FBI agents and
featuring excerpts from wiretaps
introduced at the trial.
Stevens' conviction hinged on
the testimony of Bill Allen, the
senator's longtime friend and the
founder of VECO.

National polls shows
country leaning
toward Obama
CANTON, Ohio (AP) - Fading
in the polls, John McCain fought
Barack Obama for support in eco-
nomically hard-hit Ohio on Mon-
day, each man pledging to right the
economy and turn the page on the
Bush era in a state with an impres-
sive record for picking presidents.
Eight days from the election,
however, Republicans looked and
sounded increasingly like a party
anticipating defeat, and possibly a
substantial one.
McCain betrayed no such pes-
simism, assailing Obama as "the
most liberal person ever to run for
the presidency" and warning that
Democrats would tax and spend
the nation deeper into recession
if they win the White House and
keep control of Congress.
Referring to Obama, he said,
"We both disagree with President
Bush on economic policy. The
difference is that he thinks taxes
have beentoo low, and I think that
spending has been too high."
Obama, running to become
the nation's first black president,
countered that when it comes to
the economy, "John McCain has
stood with this president every
step of the way."
He added, "The question in this
election is not 'Are you better off
than you were four years ago?' We
know the answer to that. The real
question is, 'Will this country'be
better off four years from now?"'
The polls suggest the country
is leaning toward an Obama presi-
dency. The Illinois senator runs

ahead in national surveys. He also
holds an advantage in several polls
measuringsentimentinstatesthat
voted for Bush four years ago, as
well as at least one - Virginia -
that last voted for a Democrat four
decades ago.
In a fresh show of GOP con-
'cern, officials inside both par-
ties said the Republican National
Committee was moving into
Montana with a television adver-
tising campaign for the first
time this year. The party also
is expanding its advertising in
West Virginia to run statewide.
Both states had presumed- safe
for McCain for weeks, and RNC
advertising has generally run in
Republican-leaning states where
he is in trouble.
The candidates' travel plans
underscored the Electoral College
math.
With scarcely a week remain-
ing, McCain remained largely
pinned down in traditionally
Republican states, trying to eke
out a majority.
By contrast, Obama's afternoon
stop in Pittsburgh marked the first
time in more than a week that he
had bothered to visit a state fellow
Democrat John Kerry won four
years ago.
In a show of confidence, he has
spent the rest of his campaign
time in the past week or more in
"red" states - Missouri, Florida,
North Carolina, Virginia, Colo-
rado, Nevada, New Mexico and
Ohio - as he reaches for a sizable
triumph.
Whatever doubt remained about
the presidential race, only the size
of Democratic gains seemed to be
in question in the campaign for
control of Congress.

First batch of bailout money Leaders try to save

for banks moving soon.

Zimbabwe unity deal

WASHINGTON (AP) - The
government prepared Monday
to move the first batch of bailout
money to banks as fretful world
markets plunged again. Wall
Street ended with a big drop at
the closing bell, sending the Dow
Jones industrials to their lowest
close since the financial melt-
down began.
The Treasury Department said
it would start moving $125 billion
to nine major banks this week by
buying ownership stakes, the first
big transfer since the $700 billion
bailout package was passed early
this month.
Assistant Treasury Secretary
David Nason said the infusion
would go to the largest banks
in the nation, including Bank of
America, Citigroup, JPMorgan
Chase and Wells Fargo.
A group of smaller but signifi-
cant regional banks, including
Capital One Financial and Sun-
Trust Banks, began announcing.
their own preliminary deals with
Treasury for another $125 billion.
That money should be released as
soon as paperwork is finished.

The Fed also began a major
program to buy up the short-term
debt, known as commercial paper,
that businesses use to pay for
everyday expenses and salaries.
Lending, the lifeblood of the econ-
omy, froze up after the collapse of
investment house Lehman Broth-
ers in mid-September and has
thawed agonizingly slowly since.
On Wall Street, buying and
selling that was halfhearted by
the standards of the past month
had major averages drifting high-
er and lower throughout the day.
Then stocks plunged in the final
10 minutes of trading.
The Dow Jones industrials fin-
ished the day down 203 points, or
2.4 percent, closing at the 8,176
level - their lowest close of the
year. Remarkably, it was the 28th
time in the 31 trading sessions
since the financial meltdown
began that the Dow has moved
triple digits for the day.
But the carnage was worse
elsewhere on another day when
investors worried abouta looming
worldwide recession. Major stock
markets in Hong Kong, Tokyo,

Britain, France and Germany
dropped sharply earlier in the day.
Tokyo's Nikkei 225 index closed at
its lowest level in 26 years.
The Fed was expected to make
an even more dramatic move
later this week by cutting interest
rates, perhaps lowering the key
federal funds rate by as much as
a half-point, driving the federal
funds rate down to 1 percent.
The question is whether all the
efforts, including billions of dol-
lars of loans to banks by the Fed
and other central banks around
the world, will be enough to get
lending going again.
So far, it hasn't helped much.
A closely watched measure that
tracks what banks charge each
other for loans, edged down mar-
ginally on Monday, suggesting
credit is a bit looser than a few
weeks ago but remains tight.
"All these efforts are doing
some good, but the question is
whether they will do enough,"
said David Wyss, chief economist
for Standard & Poor's in New
York. "The credit markets are still
pretty locked up."

HARARE, Zimbabwe (AP) - All
Zimbabwe's neighbors will hold a
summit to try to resolve the south-
ern African nation's power-sharing
impasse, officials announced after
regional leaders debated the issue
into the early hours Tuesday.
An agreement signed Sept.
15 has stalled over how to share
government ministries among
President Robert Mugabe's party,
Morgan Tsvangirai's Movement
for Democratic Change and a
smaller opposition group.
Tsvangirai accuses Mugabe,
who has led Zimbabwe since inde-
pendence from Britain in 1980, of
trying to hold on to too many of
the most powerful posts.
Tomas Salomao, executive sec-
retary of the 14-member Southern
African Development Community,
said at a news conference in Harare
early Tuesday that the ministry in
charge of police - accused in wide-
spread attacks on the opposition
- was the main sticking point.
Salomao said the planned summit
would consider a recommendation
that the ministry be rotated, with
the two main parties - Mugabe's
and Tsvangirai's - holding it for

six months or a year.
The opposition has resisted
such an arrangement, which could
further complicate an already
cumbersome power-sharing pro-
posal. But Tsvangirai gained at
least a small victory in getting the
members of a key SADC commit-
tee that met in Harare Monday and
Tuesday'to accept his call for a full
summit. The opposition says only a
full SADC summit has the author-
ity to pressure Mugabe.
' Zimbabwe has been on the agen-
da of repeated SADC mini- and full
summits, andtheleadershave slowly
but surely pushedlongtime,increas-
ingly autocratic leader Mugabe to
accept more and more compromises.
Several SADC leaders have shown
growing impatience with Mugabe,
and may press him hard behind
closed doors at a summit.
The meeting Monday and Tues-
day was attended by Mugabe,
Tsvangirai, opposition faction
leader Arthur Mutambara and
leaders from South Africa, Angola,
Mozambique and Swaziland - the
last three make up SADC's troika,
a special committee on politics,
defense and security.


Sijue Wu
Robert W. & Lynn H. Browne
Professor of Mathematics
WEDNESDAY, OCTOBER 29, 2008
4:10 PM Alumni Center, Founders Room
SA For More Information Call (734) 615-6449

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