Business - Investor's Business Daily

With financial markets buckling as Plan A takes shape, Plan B -- a government injection of equity capital directly into the banking sector -- has moved to the front burner.

Stocks plunged to five-year lows Thursday after Standard & Poor's said it may downgrade General Motors and Ford , raising fears that a persistent credit crunch could drive more companies into bankruptcy and spark a deep and prolonged recession.

1 The automaker plunged 31% to 4.76, the lowest since 1950, after S&P placed it and rival Ford on watch for credit downgrades. Fitch said suppliers may force GM to pay bills fast. GM said European sales fell 1.9% to 1.6 mil vehicles in the first 9 months of '08. J.D. Power & Associates warned of a U.S. auto market "collapse" in '09. Ford shares dived 22%, Toyota's 7%.

Election '08: Obama says McCain won't raise the Ayers issue to his face. Well, there's one more debate, senator, and maybe you'd like John Murtaugh to ask the question: What did you know and when did you know it?

Election '08: Bill Ayers isn't out bombing anymore, but he has never stopped being a radical. His ties to hostile Marxist regimes remain, raising more questions about Barack Obama's refusal to fully repudiate him.

The prepaid calling card business has grown into a $4 bil industry, but it also faces criticism from lawmakers who say some cards use deceptive marketing practices. A dozen states have passed laws tightening oversight on the cards, plus the U.S. Senate is mulling oversight measures already passed by the House. The deceptive practices include billing in 3-minute increments even if customers use a card for just a few seconds. Critics contend card issuers don't fully disclose added charges, such as activation fees and weekly maintenance fees.

U.S. intelligence agencies concluded in a draft report that Afghanistan is in a "downward spiral" and they doubt whether the gov't can stem the Taliban's rise, the New York Times reported. The report said corruption in Pres. Hamid Karzai's gov't and militant attacks from Pakistan have fueled the breakdown.

Federal prosecutors wrapped up their corruption case against Sen. Ted Stevens, R-Alaska, after nearly 3 weeks of testimony. Stevens' lawyers immediately asked the court to acquit the senator, contending prosecutors failed to prove Stevens concealed $250,000 in home renovations paid for by an oil executive. If the case proceeds, the defense plans to call Sen. Daniel Inouye, D-Hawaii, and ex-Sec'y of State Colin Powell to testify on Stevens' behalf.

America kept its place as the world's most competitive economy according to the World Economic Forum, despite the financial crisis. Switzerland, Denmark and Sweden remained Nos. 2, 3 and 4 once again. Singapore was No. 5. Britain fell to No. 12 from No. 9. China is ranked No. 30. Iceland, which is now in danger of going bankrupt, was 20th.

Ever admire someone who has it all together professionally? Look at what he or she is doing personally. Chances are, one side of life is energizing the other.

As most investors writhe in pain from the market meltdown, John Lansing says he's celebrating the best year he's ever had. He says his portfolio has rocketed 1,580%, with a combination of stocks, ETFs, currencies and options.

Housing could be in for more bruising despite rescue efforts, as bank balance sheets teeter, and if world financial and economic fears are realized. The risks include further falls in home prices and the prospect of more Americans facing foreclosure.

The home mortgage business is in crisis. Residential building is down. Hardwood flooring sales fell 5% last year, and retail is in the tank.

Super Micro Computer strives to be all things to all server customers -- a market approach that lets it compete against much larger rivals such as Hewlett-Packard , IBM and Dell (NasdaqGS:DELL - News).

A Barack Obama presidency would likely be bad news for large phone companies such as AT&T and Verizon Communications, and a mixed bag for cable TV firms, analysts say.

When communist hard-liners toppled Soviet boss Nikita Khrushchev in 1964, Alexander Solzhenitsyn's literary career teetered.

Just studying a company's earnings and revenue can sometimes lead you astray.

Election Fraud: A radical group Barack Obama used to work for is committing voter-registration fraud in several states, ahead of the election. What does Obama know about this scam?

1 The Fed, European Central Bank and their counterparts in the U.K., Canada, Sweden and Switzerland all cut their key rates by 50 basis points in an unprecedented joint action. They said in a statement that the "intensification of the financial crisis has augmented the downside risks to growth." China and Hong Kong also cut rates; Australia eased on Tue.

Shoppers kept purse strings drawn in September, mainly grabbing bargains on basic goods, sending many retailers' sales tumbling as the economic storm worsened.

The start of earnings season is almost an afterthought on Wall Street, which is preoccupied with the global credit crisis and skeptical that actual results will be anywhere close to estimates.

The Federal Reserve and several other central banks slashed interest rates Wednesday in an unprecedented joint effort to stem a growing financial crisis that threatens to send the global economy into a tailspin.

A new technique called "slow freezing" has brought scientists a step closer to having banks of frozen organs for people who need transplants. Such banks currently aren't possible because organs can become unusable within 24 hours, even if they're refrigerated. Conventional freezing doesn't work because jagged ice crystals form inside the organs. Slow freezing, developed by Israeli scientists, chills an organ by 0.3 degrees Celsius each minute, cutting crystal formation. The scientists have used this method to successfully freeze, thaw and transplant a pig's liver.

Viktor Yushchenko abandoned the search for a coalition to take over from the current "orange" gov't; he dissolved parliament and called for early elections. Yushchenko blamed PM Yulia Tymoshenko for the collapse of the coalition. The 2 leaders are at odds over the division of power. The president also says the PM is too soft on Russia, which still wields significant influence in the former Soviet state.

House Speaker Nancy Pelosi said another economic stimulus plan -- one valued at $150 bil -- is needed. She said she may call the House into session after the election to pass it. The first stimulus bill, which cost $168 bil, was approved in Jan.; it involved sending out tax rebate checks of $600-$1,200 to most Americans. Pres. Bush previously rejected a second stimulus measure. The House recently approved a $61 bil economic aid plan, but a similar bill failed in the Senate.

Home loan demand rose 2.2% in the week ended Oct. 3, according to the Mortgage Bankers Association's index. Mortgage applications for buying a home rose 3.2% -- from the prior week's 6-year low -- with the Federal Housing Administration continuing to gain market share. Refinancing activity edged up 0.9%. The average rate on a 30-year fixed-rate loan fell to 5.99% from 6.07%. The rate on a 15-year fixed mortgage decreased to 5.71%, the lowest in three weeks. A one-year ARM dipped to 6.6%.

The Debate: John McCain rightly laid the blame for the economic crisis on Fannie and Freddie, and the blame for that on the Democrats. But he missed opportunities and left much too much on the podium.

Last week's $700 billion financial markets rescue bill includes tax breaks for Hollywood filmmakers, Samoan tuna canneries, race-car tracks, Oregon arrow makers and Puerto Rican and Virgin Islands rum producers.