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Paulson hints at more mortgage aid
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Video Shows Iran-U.S. Clash in Gulf
Small Iranian fast boats swarmed around massive U.S. warships in the Persian Gulf, and a man speaking heavily accented English threatened, “I am coming to you. … You will explode,” according to a video released Tuesday by the Pentagon.

Iraqi Soldier Kills Two American Troops
An Iraqi Soldier is accused of turning on two decorated American servicemen and shooting them to death during a joint operation in northern Iraq, said the U.S. military. An Iraqi official said the suspect may have links to militant groups.

Marine Nabbed with 13-Year-old Girl
A Marine was arrested at a Pennsylvania bus station as he tried to return to his base with the 13-year-old girl he wanted to marry.

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Paulson defends ‘freeze’ plan
Treasury Secretary Henry Paulson used a speech Monday to defend the Bush Administration’s plan to “freeze” mortgage rates for some subprime borrowers and also to call on Congress to pass legislation to head off a housing crisis.

Pakistan Officials Warn US: Keep Out
Pakistan reacted angrily Jan. 6 to reports that President Bush is considering covert operations in the country’s volatile tribal areas bordering Afghanistan. “It is not up to the U.S. administration, it is Pakistan’s government who is responsible for this country,” a top military spokesman said.

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