ECONOMY. The New York Times is reporting that “stocks swung wildly on Friday, with the Dow Jones industrial average down 376 points, or 4.4 percent, by midday in New York, continuing this week’s aggressive sell-off.” Additionally, “markets dropped in Europe and Asia as well, adding new urgency to efforts to find a solution to the global financial problems and restore confidence in the markets.” In a statement at The White House this morning, President Bush sought to reassure the American people, saying, “My fellow citizens, we can solve this crisis, and we will.” Investors are “keeping a close eye on a crisis meeting of Group of 7 finance ministers” as “the United States and Britain appear to be converging on a similar blueprint for stemming the financial chaos, which includes injection of government money into banks in return for ownership stakes and guarantees of repayment for various types of loans.”

·         Meanwhile, CNBC reports that “as the financial crisis threatens to spiral out of control, Treasury Secretary Henry Paulson is prepared to take extraordinary steps through the extensive authority granted to him under emergency rescue legislation.” Paulson is reportedly “expediting plans to inject capital into banks,” the plan being to “offer a term sheet, offering capital injections to all banks.” One analyst told the network: “I don't wish to spread alarm on the line people but the big issue confronting the market is I'm afraid the health and sustainability of Morgan Stanley and Goldman Sachs.” CNBC notes that “pressure has been mounting on Morgan Stanley for days now, amid growing speculation Japan's Mitsubishi UFJ will not proceed with plans to purchase a major stake. Goldman shares, in contrast, have held up relatively well compared to the broader market.”

·         Bloomberg is reporting that “Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world's financial markets while they ‘rewrite the rules of international finance.'” Berlusconi said today after a Cabinet meeting in Naples that “the idea of suspending the markets for the time it takes to rewrite the rules is being discussed.” The prime minister didn’t give any details about what rules were under discussion, but said leaders were discussing “a new Bretton Woods.” Bloomberg notes that “the Bretton Woods Agreements were adopted to rebuild the international economic system after World War II in a hotel in Bretton Woods, New Hampshire.”

OBAMA/IRAQ. It was reported in today’s Washington Times that “at the same time the Bush administration was negotiating a still elusive agreement to keep the U.S. military in Iraq, Democratic presidential candidate Barack Obama tried to convince Iraqi leaders in private conversations that the president shouldn't be allowed to enact the deal without congressional approval.” Obama’s conversations “began just two weeks after he clinched the Democratic presidential nomination in June and stirred controversy over the appropriateness of a White House candidate's contacts with foreign governments while the sitting president is conducting a war.” While some of the specifics are in dispute, “Iraqi leaders purported to The Times that Mr. Obama urged Baghdad to delay an agreement with Mr. Bush until next year when a new president will be in office – a charge the Democratic campaign denies.”

CONNECTICUT. Connecticut’s Supreme Court ruled today that “same-sex couples have the right to marry, making that state the third behind Massachusetts and California to legalize such unions,” according to the Associated Press. The court ruled 4-3 “that gay and lesbian couples cannot be denied the freedom to marry under the state constitution, and Connecticut's civil unions law does not provide those couples with the same rights as heterosexual couples.”

STIMULUS. CQ reports that “House Democratic leaders will return to the Capitol Monday to hear from economists as they push their case for a second economic stimulus package.” The meeting comes after “remarks Speaker Pelosi made Wednesday suggesting that the House may be called back to work after the election to pass a $150 billion measure to boost the economy. Another Pelosi aide would not rule out the possibility that the House could return before the election for a vote, but said the chances were slim.” CQ notes that “Democratic leaders have held at least three economic forums since taking power in January 2007. In July, they held a meeting that included former Treasury Secretary Larry Summers.”

INTELLIGENCE. Under the headline “U.S. Allegedly Listened In on Calls of Americans Abroad,” The Washington Post reports that Senate Intelligence Chairman John D. Rockefeller IV (D-WV) “is looking into allegations that a U.S. spy agency improperly eavesdropped on the phone calls of hundreds of Americans overseas, including aid workers and U.S. military personnel talking to their spouses at home.” Rockefeller called the accusations "extremely disturbing" and announced that his staff has “begun gathering information and may consider holding hearings.” The Post notes that a "US intelligence official familiar with the reports noted that two internal investigations, by the inspectors general of the NSA and the Army, were unable to substantiate the allegations."

DODD/FRANK/ACORN. The Politico reports that “John McCain and his Republican allies have elevated as political villains an unlikely pair to deflect blame for the slumping economy. During a town hall in Wisconsin on Thursday, McCain called Senate Banking Chairman Christopher J. Dodd (Conn.) and House Financial Services Chairman Barney Frank (Mass.) “willing co-conspirators” in the current financial collapse.” The paper notes that this comes as “conservative talk radio hosts and an outside group aligned with the GOP accuse the duo of similar crimes against the economy, particularly an allegation that congressional Democrats blocked legislation to increase regulations and oversight for mortgage giants Fannie Mae and Freddie Mac.” At a town hall in Waukesha, WI, Sen. McCain said, "The fact is that the same people that are now claiming credit for this rescue are the same ones that were willing co-conspirators in causing the problem. Congressman Barney Frank and Senator Chris Dodd are two of them.''

·         Meanwhile, The Politico reports, “House Republican Leader John A. Boehner of Ohio escalated the war on ACORN today, calling for it to be cut off from all federal money and going so far as to call for a ban on ACORN contracting with candidates for federal office. ACORN, a community organizing group allied with Democrats, has been blamed by the GOP for pushing housing policies that Republicans say contributed to the housing crisis. It has been the subject of investigations for voter registration fraud and its Nevada offices were recently raided.” The paper also notes that Republican Whip Roy Blunt (R-MO) put out a similar statement, calling for a "full-scale" investigation into “allegedly ACORN-led voter fraud in Missouri and across the nation.”

TALIBAN. Under the headline “Mullen urges new strategy on Taliban,” The Washington Times reports that “Adm. Michael Mullen, chairman of the Joint Chiefs of Staff, said Thursday that U.S.-led forces are ‘not going to be able to kill our way to victory in Pakistan and Afghanistan’ and a new strategy is needed to suppress a resurgent Taliban movement before it's too late.” According to Mullen, the challenges we face in Afghanistan “require a new counterinsurgency approach that focuses on increased security, economic growth, political stability and the ability to ‘convince’ the Afghan people that the U.S.-led NATO effort is ‘not an occupation.’” The paper adds, “Taliban militants in eastern Afghanistan, particularly the areas bordering Pakistan's tribal area of Waziristan, have been recruiting with the promise of ‘security for their families, $250 to $500 a month and transportation’ as long as they are willing to fight against the coalition.”

WHERE THE CANDIDATES ARE. McCain: La Crosse, WI; Lakeville, MN. Palin: Cincinnati, Cleveland, OH; Pittsburgh, PA. Obama: Chillicothe, Columbus, OH. Biden: Springfield, MO.

POLLING ROUNDUP.

·         The Gallup daily presidential tracking poll of 2,761 registered voters taken Oct. 6-8 shows Obama leading McCain 52%-41%, the same as the previous day, marking his widest lead in the polling series.

·         The Rasmussen Reports automated daily presidential tracking poll for October 10 shows Obama leading McCain 50%-45%.

·         The Battleground tracking poll of 800 likely voters taken October 6-8 shows Obama leading McCain 48%-45%.

·         The C-SPAN/Zogby daily presidential tracking poll of 1,203 likely voters taken October 6-9 shows Obama leading McCain by 48%-43%.

·         The Diageo/Hotline daily presidential tracking poll of 852 likely voters taken October 6-8 shows Obama leading McCain 47%-41%.