There didn't appear to be any one catalyst for the surge that saw the Dow nearly double its gain in the last hour of trading. Many analysts said investors were grabbing up stocks in the belief that the market had fallen too far in recent sessions; the Dow had dropped 500 points in two days. Some said buying early in the day came from anticipation of an interest rate cut Wednesday by the Federal Reserve, and the market just followed its recent pattern of building on its gains or losses in the last minutes of the session.

"There is nothing fundamental that came out today or yesterday that would take it up or down. We're all groping for something meaningful to talk about," said Bob Andres, chief investment strategist at Portfolio Management Consultants. "THE MARKET IS EXHAUSTED FROM GOING DOWN."

But given the relentless volatility in the market — out of 20 trading days this month, there have been only two that didn't see the Dow close up or down in triple digits — no one expects that the market is now headed higher for good. After WALL STREET'S DEVASTATING LOSSES THAT SLASHED 2,400 POINTS OFF THE DOW IN EIGHT SESSIONS, market veterans warned that the recovery would be rocky, including huge gains followed by huge declines.

Barack Obama laughs off charges of socialism. Joe Biden scoffs at references to Marxism. Both men shrug off accusations of liberalism. But Obama himself acknowledges that he was drawn to socialists and even Marxists as a college student. He continued to associate with Marxists later in life, even choosing to launch his political career in the living room of a self-described Marxist, William Ayers, in 1995, when Obama was 34.

Obama's affinity for Marxists began when he attended Occidental College in Los Angeles. "To avoid being mistaken for a sellout, I chose my friends carefully," the Democratic presidential candidate wrote in his memoir, "Dreams From My Father." "The more politically active black students. The foreign students. The Chicanos. The Marxist professors and structural feminists."

Obama has managed to cultivate the image of a political moderate in spite of his consistently liberal voting record. In 2006, he published a second memoir, "The Audacity of Hope," that leaves little doubt about his adherence to the left. "The arguments of liberals are more often grounded in reason and fact," Obama wrote in "Audacity." "Much of what I absorbed from the sixties was filtered through my mother, who to the end of her life would proudly proclaim herself an unreconstructed liberal."

The sheer bias in the print and television coverage of this election campaign is not just bewildering, but appalling. And over the last few months I've found myself slowly moving from shaking my head at the obvious one-sided reporting, to actually shouting at the screen of my television and my laptop computer. But worst of all, for the last couple weeks, I've begun - for the first time in my adult life - to be embarrassed to admit what I do for a living. A few days ago, when asked by a new acquaintance what I did for a living, I replied that I was "a writer," because I couldn't bring myself to admit to a stranger that I'm a journalist.

Now, of course, there's always been bias in the media. But nothing, nothing I've seen has matched the media bias on display in the current presidential campaign. Republicans are justifiably foaming at the mouth over the sheer one-sidedness of the press coverage of the two candidates and their running mates. But in the last few days, even Democrats, who have been gloating over the pass - no, make that shameless support - they've gotten from the press, are starting to get uncomfortable as they realize that no one wins in the long run when we don't have a free and fair press.

If the current polls are correct, we are about to elect as president of the United States a man who is essentially a cipher, who has left almost no paper trail, seems to have few friends (that at least will talk) and has entire years missing out of his biography. That isn't Sen Obama's fault: His job is to put his best face forward. No, it is the traditional media's fault, for it alone (unlike the alternative media) has had the resources to cover this story properly, and has systematically refused to do so.

The Financial Services Authority also said the number of people struggling to clear home loan arrears had risen. Meanwhile, figures from the Land Registry showed house prices in England and Wales have fallen again. This comes after the Bank of England predicted more woe for homeowners.

The Land Registry's figures come shortly after the Bank of England reported that UK house prices were showing a sharper decline than property values in the US. The Bank's Financial Stability Report has estimated that 500,000 homeowners in the UK are in negative equity as a result of a 13% fall in UK property prices since their peak in October last year. It predicted that this number would rise to 1.2 million - one in nine UK homeowners - if house prices dropped by another 15% over the coming months.

Negative equity is when mortgage debts exceed the value of the property. It is not a major problem unless the owner is looking to sell or re-mortgage, as the value of homes is expected to rise again over time.

Tuesday's report quoted Iran's naval chief, Adm. Habibollah Sayyari. He said the base on the Strait of Hormuz creates a new line of defense. Sayyari said if necessary, the base could allow Iran to block entry of any "enemy" into the Persian Gulf. The base is in the port town of Jask, about 1,050 miles (1,700 kilometres) south of Teheran.

The oil giant said this morning that it had benefited from crude prices hitting a record of $147 a barrel in mid-July, although the company had lost some production due to hurricanes in the Gulf of Mexico and Russia's invasion of Georgia.

BP's better-than-expected figures, which sent its shares up 8.2 per cent to 474p in early trading, are likely to prompt controversy over whether the world's major oil companies are passing on lower costs to consumers quickly enough.

The price of oil has fallen rapidly from its peak in July to $63.41 today and Gordon Brown gave warning last week that he would call in the Office of Fair Trading if producers did not pass the benefits of lower prices on to consumers.

At a rare round of military talks on Monday, North Korea complained about the leaflets while South Korean activists sent a new batch of 100,000, despite warnings from Seoul not to do so. "The puppet authorities had better bear in mind that the advanced pre-emptive strike of our own style will reduce everything opposed to the nation and reunification to debris, not just setting them on fire," the spokesman said.

South Korean groups have been sending the leaflets into the North for years. Analysts said the recent wave appeared to have touched a nerve because they mentioned a taboo subject in the North - the health of leader Kim Jong-il. U.S. and South Korean officials have said Kim may have suffered a stroke in August, raising questions about who was running Asia's only communist dynasty and making decisions concerning its nuclear arms program.

Gordon Brown insisted yesterday that it was right for the government to increase borrowing in order to fund investment to help the economy through tough times. But he moved to reassure markets that he would not preside over a reckless increase in borrowing during the recession and said he would reduce it as a proportion of GDP once the economy picks up.

Paving the way for an expected abandonment of the tight fiscal rules he established as chancellor, Brown said: "The responsible course of government is to invest at this time to speed up the economic activity. As economic activity rises, as tax revenues recover, then you would want borrowing to be a lower share of your national income. But the responsible course at the moment is to use the investments that are necessary, and to continue them, and to help people through very difficult times.

"I think that's a very fundamental part of what we are doing." Mandelson was more blunt as he warned of the impact of the recession. "WE ARE FACING AN UNPARALLELED FINANCIAL CRISIS," he said during a visit to Moscow. "I DON'T THINK YET PEOPLE HAVE REALISED WHAT THE IMPACT IS GOING TO BE ON OUR REAL ECONOMY."

As stock markets headed off a cliff again last week, closely followed by currencies, and as meltdown threatened entire countries such as Hungary and Iceland, one voice was in demand above all others to steer us through the gloom: that of Dr Doom.

For years Dr Doom toiled in relative obscurity as a New York University economics professor under his alias, Nouriel Roubini. But after making a series of uncannily accurate predictions about the global meltdown, Roubini has become the prophet of his age, jetting around the world dispensing his advice and latest prognostications to politicians and businessmen desperate to know what happens next – and for any answer to the crisis.

While the economic sun was shining, most other economists scoffed at Roubini and his predictions of imminent disaster. THEY DISMISSED HIS WARNINGS THAT THE SUB-PRIME MORTGAGE DISASTER WOULD TRIGGER A FINANCIAL MELTDOWN. They could not quite believe his view that the US mortgage giants Fannie Mae and Freddie Mac would collapse, and that the investment banks would be crushed as the world headed for a long recession. YET ALL THESE PREDICTIONS AND MORE CAME TRUE. Few are laughing now.

What does Roubini think is going to happen next? Rather worryingly, in London last Thursday he predicted that hundreds of hedge funds will go bust and STOCK MARKETS MAY SOON HAVE TO SHUT – PERHAPS FOR AS LONG AS A WEEK – IN ORDER TO STEM THE PANIC SELLING NOW SWEEPING THE WORLD. What happened? The next day trading was briefly stopped in New York and Moscow.

The announcement of the US government's $700 billion bailout, Gordon Brown's grand bank rescue plan and the coordinated response of governments around the world has done little to calm the situation. "It's been a slaughter, day after day after day," said Roubini. "MARKETS ARE DYSFUNCTIONAL; THEY ARE TOTALLY UNHINGED." ECONOMIC FUNDAMENTALS NO LONGER APPLY, HE BELIEVES. "Even using the nuclear option of guaranteeing everything, providing unlimited liquidity, nationalising the banks, making clear that nobody of importance is going to be allowed to fail, even that has not helped. WE ARE REACHING A BREAKING POINT, FRANKLY."

In a startling development, Obama's Kenyan grandmother has reportedly alleged she witnessed Obama's birth at the Coast Provincial Hospital in Mombasa, Kenya. Friday, US Federal judge Richard Barclay Surrick, a Clinton appointee, dismissed a lawsuit brought BY PENNSYLVANIA ATTORNEY PHILLIP J BERG WHO ALLEGED OBAMA WAS NOT A US "NATURAL BORN" CITIZEN AND THEREFORE INELIGIBLE FOR THE PRESIDENCY UNDER THE SPECIFICATIONS OF THE US CONSTITUTION, UNDER ARTICLE II, SECTION 1.

In Kenya, WND was told by government authorities that all documents concerning Obama were under seal until after the US presidential election on November 4.

ALTHOUGH THE OBAMA CAMPAIGN COULD IMMEDIATELY PUT AN END TO ALL THE CHALLENGES BY SIMPLY PRODUCING THE CANDIDATE'S ORIGINAL BIRTH CERTIFICATE, IT HAS NOT DONE SO. And the "Fight the Smears" website offers no explanation as to why Obama has refused to request, and make public, an original hospital-generated birth certificate which the Hawaii Department of Health may possess.

China is hosting the Asia-Europe Meeting (ASEM) this year, the seventh since the group's founding in 1996. ASEM provides over 40 heads of state and government with the opportunity to meet informally and chat about the issues of the day. But it has rarely resulted in anything substantive.

This year, though, things are a little different. The conference in Beijing takes place at a time when financial markets are teetering, banks are tottering and stock markets have become as unpredictable as a roulette table. The world is looking for a solution - anything to avoid a global recession - and everyone has a role to play, especially an economic giant like China. European Commission President Jose Manuel Barroso said it very clearly on Thursday: "Simply - we swim together or we sink together. We need Asia to be on board and more particularly countries like China and India."

CHINA ALSO HOLDS HARD CURRENCY RESERVES TO THE TUNE OF $1.9 TRILLION, MORE THAN ANY OTHER COUNTRY IN THE WORLD. It holds US government bonds, helping to finance the US deficit. For the moment, no one seems to quite know exactly what kind of role China will play when it comes to stabilizing global markets. BUT CHINA'S SUPPORT WILL BE CRITICAL WHEN NEW RULES TO GOVERN THE WORLD OF FINANCE ARE ESTABLISHED - rules that will be discussed at the G-20 summit in the US on Nov 15. ASEM has already been successful on one count: China has at least signalled that it plans to attend the meeting.

At least £157 billion has been wiped off the value of defined contribution pension schemes since October last year, according to Aon Consulting. Defined contribution pensions had assets worth £552 billion compared to the same time last year, but the value of these assets has now fallen by 28 per cent to around £395 billion.

The sharp drop came despite more than 3.7 million workers and their employers paying contributions totalling £6.7 billion into the schemes during the period. The group said the figures showed the economic downturn was visibly taking its toll on the money workers set aside for their pension schemes. It also warned that those who were close to retirement may have to stay in work longer to give their pension plan a chance to recover

- FTSE falls to new depths in wake of crisis in Asian markets

- Sterling plunges to five-year low against the dollar

- Oil drops to below $60 a barrel

The UK economy suffered a double blow today as the FTSE and Sterling plunged to new depths. Fresh falls across Asia battered UK blue chips forcing the FTSE 100 Index down 5.6% to 3,665 at one point - a five year low. Sterling was also hit losing 3 cents to $1.536 after having fallen below $1.60 for the first time in five years on Friday.

"This meeting is of great importance in the context of the spreading international financial crisis and severe challenges the world economy is facing," Chinese Vice Premier Wang Qishan said at the 12th conference of a joint commission for the regular meetings of Chinese and Russian prime ministers.

During the one-day conference, the two sides exchanged views in a candid and thorough manner on major issues of common concern and reached a broad consensus. They also prepared for the upcoming meeting between Chinese Premier Wen Jiabao and his Russian counterpart Vladimir Putin, Wang said.
Wang hailed the regular meeting mechanism and progress made in bilateral cooperation since the mechanism's introduction. Advances include improved trade and an expansion of two-way investment.

He appreciated Russia's support and assistance to China in the wake of the devastating Wenchuan earthquake in May and during the Beijing Olympics in August. The senior cabinet member spoke highly of CHINA-RUSSIA COOPERATION IN SUCH SECTORS AS OIL AND GAS, ELECTRICITY, NUCLEAR ENERGY, HIGH-TECH INDUSTRY, INFORMATION TECHNOLOGY, TRADE AND FINANCIAL SERVICES AND CROSS-BORDER ENVIRONMENTAL PROTECTION.

CURRENCY PEGS ARE BEING TESTED TO DESTRUCTION on the fringes of Europe's monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992. "THIS IS THE BIGGEST CURRENCY CRISIS THE WORLD HAS EVER SEEN," said Neil Mellor, a strategist at Bank of New York Mellon.

Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The risk is a surge in capital flight from Austria – the country, as it happens, that set off the global banking collapse of May 1931 when Credit-Anstalt went down – and from a string of Club Med countries that rely on foreign funding to cover huge current account deficits. The latest data from the Bank for International Settlements shows that Western European banks hold almost all the exposure to the emerging market bubble, now busting with spectacular effect.

They account for three-quarters of the total $4.7 trillion (£2.96 trillion) in cross-border bank loans to Eastern Europe, Latin America and emerging Asia extended during the global credit boom – A SUM THAT VASTLY EXCEEDS THE SCALE OF BOTH THE US SUB-PRIME AND ALT-A DEBACLES. Europe has already had its first foretaste of what this may mean. Iceland's demise has left them nursing likely losses of $74bn (£47bn). The Germans have lost $22bn.

The threat to Britain lies in emerging Asia, where banks have lent $329bn, almost as much as the Americans and Japanese combined. Whether you realise it or not, your pension fund is sunk in Vietnamese bonds and loans to Indian steel magnates. Didn't they tell you?