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Before leaving town for two weeks, the Senate failed to move forward on an Iraq war funding measure including a timeline for troop withdrawal. Gridlock also prevailed on the farm bill and other measures.

Treasury Secretary Henry Paulson is leading talks with major mortgage lenders. About 2 million subprime loans are scheduled to "reset" to higher interest rates during the next two years. Lenders are talking about freezing rates to hold down rising defaults and foreclosures.

With the revival, albeit tentative, of the Mideast peace process, Christmas in Bethlehem this year is more festive. Tourism is expected to double. At the same time, Christians continue to emigrate from the West Bank. The owner of a Christian radio station predicts that in 15 years, there won't be one Christian left in Bethlehem.

The Phoenix Mars Lander has safely landed on the Red Planet. But getting there is only half the battle. The probe landed in Mars' northern polar region, an area believed to hold a reservoir of ice beneath the surface.

Jean Sebastian Matte, the emergency coordinator for Doctors Without Borders, says many people in Myanmar who are in desperate need of aid haven't received any. While there has been no outbreak of disease yet, he says that respiratory illnesses and diarrhea are growing more common in the storm-ravaged country.

On Friday, presidential candidates Barack Obama and John McCain squared off at the University of Mississippi in the first of three scheduled debates. But some say that neither of the candidates gave a stellar performance in their exchanges over foreign policy and the economic crisis.

The Supreme Court ruled Thursday that terrorism suspects held at Guantanamo Bay have the right to challenge their detention in U.S. courts. It's the third time the high court has ruled against the Bush administration over its treatment of detainees in the war on terrorism.

Gustav is no longer a hurricane, but that doesn't mean all is well yet for residents of the Gulf Coast. Millions are still far from home in shelters across the region. One such shelter is a gymnasium in Shreveport, La., that has become home to about 800 people.

Lt. Gen. Robert Van Antwerp, the commanding general of the U.S. Army Corps of Engineers, says despite some flooding from Hurricane Gustav, New Orleans' levees and floodwalls worked as they were designed to. The Corps is tracking the water levels and monitoring communication among agencies and all 13 coastal parishes.

Obama's supporter and former South Dakota Senator Tom Daschle was nominated to be secretary of the Department of Health and Human Services and director of the new White House Office of Health Reform.