Rockets hit northern Israel  —  At least two Katyushas fired at Western Galilee region, one rocket hits nursing home in Nahariya, lightly injuring two people.  IDF estimates Palestinian group behind attack.  Lebanon says committed to ceasefire resolution  —  A Katyusha barrage was fired Thursday …

NBC's Matthews Won't Run for Senate  —  Chris Matthews, the host of the MSNBC program “Hardball,” told his staff on Wednesday night that he would not run for the Senate in 2010 from Pennsylvania.  —  For much of the last year, Mr. Matthews had been considering entering the Senate race …

Obama Promises Bid to Overhaul Retiree Spending  —  WASHINGTON — President-elect Barack Obama said Wednesday that overhauling Social Security and Medicare would be “a central part” of his administration's efforts to contain federal spending, signaling for the first time that he would wade …

Obama Is Reported Set to Revise Counterterrorism Efforts  —  WASHINGTON — President-elect Barack Obama is preparing to scrap the way President Bush oversaw domestic security in the White House and name a former Central Intelligence Agency official to coordinate counterterrorism, people close to the transition said Wednesday.

Porn industry seeks federal bailout  —  WASHINGTON (CNN) — Another major American industry is asking for assistance as the global financial crisis continues: Hustler publisher Larry Flynt and Girls Gone Wild CEO Joe Francis said Wednesday they will request that Congress allocate $5 billion …

President Bush Tried to Rein In Fan and Fred  —  Democrats and the media have the housing story wrong.  —  Mythmaking is in full swing as the Bush administration prepares to leave town.  Among the more prominent is the assertion that the housing meltdown resulted from unbridled capitalism under a president opposed to all regulation.

Protester Calls for Jews to ‘Go Back to the Oven’ at Anti-Israel Demonstration  —  Like many other protests of Israel's campaign in Gaza, this one ended badly — police had to cool an ugly fight between supporters of Israel and Gaza, breaking up the warring sides as their screaming and chanting threatened to turn into something worse.

Obama to Name Lawyer Friend To Regulatory Affairs Position  —  President-elect Barack Obama will name Cass R. Sunstein, a close friend and one of the nation's top constitutional lawyers, to a senior-level post in charge of government regulation, a transition official said.

Chicago Public Schools' cappuccino bill: $67,000  —  Chicago public school bureaucrats skirted competitive bidding rules to buy 30 cappuccino/espresso machines for $67,000, with most of the machines going unused because the schools they were ordered for had not asked for them …

Army Sends ‘Dear John Doe’ Letters to Families of Fallen Troops  —  The Army mistakenly sent letters addressed “Dear John Doe” to 7,000 family members of soldiers who died in Iraq and Afghanistan, unleashing calls from troubled relatives and prompting a formal apology yesterday from the Army's top general.

Disputed Territory: War in Gaza Provokes Protest (And Conversation) In Second Life Israel  —  Protesters continue convening in SL Israel today  —  In Second Life there is a new Israel, appropriately called SL Israel, which recreates in virtual form aspects of the country …

Purple Heart Is Ruled Out for Traumatic Stress  —  The Pentagon has decided that it will not award the Purple Heart, the hallowed medal given to those wounded or killed by enemy action, to war veterans who suffer from post-traumatic stress disorder because it is not a physical wound.

Daschle to Face Tough Questions on Competition in Health Insurance  —  WASHINGTON — When Tom Daschle shows up for a confirmation hearing on Thursday, senators are likely to grant him all the courtesies due a former Senate majority leader.  —  But that does not mean Mr. Daschle should expect only softball questions.

Will The Real Christina Romer Please Stand Up?  —  Her research rejects a fiscal stimulus.  —  Most people in the incoming Obama administration—and, indeed, most people— believe that the Keynesian model of the economy is basically correct.  Developed from the theories of John Maynard Keynes …

China Losing Taste for Debt From the U.S.  —  HONG KONG — China has bought more than $1 trillion of American debt, but as the global downturn has intensified, Beijing is starting to keep more of its money at home, a move that could have painful effects for American borrowers.

It's Official, Finally: Congress to Count Obama's Electoral College Victory  —  Congress will count the Electoral College votes for president and vice president Thursday in an exercise that has great meaning but holds absolutely no suspense.  —  Both chambers will meet in joint session at about 1 p.m. to officially count the votes.

In 11 a.m. speech, Obama to sound econ warning  —  Featured Topics: - Barack Obama - Presidential Transition  —  President-elect Obama is warning this morning that the economy “could become dramatically worse” and face unemployment above 10 percent without bipartisan support …