TIME magazine yesterday named US president-elect Barack Obama the Person of the Year in 2008 after he became the first African-American to win the White House.

The US is on track to post an all-time high annual shortfall of $1tn (€764bn) or more after it was revealed that the government ran a record budget deficit in November.

The United States and China pledged $20bn (€15.6bn) to help finance trade amid a global credit crisis today as they wrapped up high-level talks marked by a Chinese appeal to Washington to stabilise its economy.

Confirmation that the US is in a recession and signs pointing to a prolonged downturn sent Wall Street plunging once again today, hurtling the Dow Jones industrials down nearly 700 points and more than half of last week’s big gains. All the major indicators more than 7%, and the Standard & Poor’s 500 index dropped nearly 9%.

The US government unveiled a bold plan to rescue troubled Citigroup, including taking a $20bn (€15.7bn) stake in the firm as well as guaranteeing hundreds of billions of dollars in risky assets.

US President-elect Barack Obama intends to name the president of the New York Federal Reserve as his treasury secretary to confront the country’s intense economic turmoil, senior Democratic officials said. The stock market soared on the news.

A spokesman for Hillary Rodham Clinton says the New York senator is still in discussion over whether to accept the US Secretary of State job, though the talks are “very much on track”.

Wall Street rebounded today in another turbulent session, as investors rushed back into the market after the Standard & Poor's 500 index tested a 2003 low.

US Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke waged a stout defence of their management of a $700bn (€554bn) financial bailout today, just a week after abandoning the original strategy behind the rescue.

US president-elect Barack Obama wants changes in how some of the nation’s biggest economic problems are handled, from helping the troubled car industry to aiding homeowners fighting repossession, he will say today.

The Bush administration is abandoning the centrepiece of its massive €520bn economic rescue plan and exploring new ways to shore up not only banks but credit card, car loan and other huge businesses.

A disheartened Wall Street fell for the third straight session today as investors absorbed another series of dismal corporate reports and news that the US government would not buy banks’ soured mortgage assets after all.

Britain's FTSE 100 Index plunged into the red today as economic worries overshadowed positive corporate news from blue-chip firms.

The $700bn (€559bn) rescue package for the US economy will not be used to buy troubled assets, US Treasury Secretary Henry Paulson said today.

US president-elect Barack Obama went straight to work today appointing his new government and studying some of the problems he will inherit when he takes office in 10 weeks.

As one of the President's top economic advisers admitted parts of the US are in a recession, the Bank of America's chief executive vowed to plough bail-out cash into loans and profit growth.

Japan’s prime minister says the US bank bailout is “insufficient” and contributing to a renewed plunge in global stock markets.

The US government plans to expand protections greatly for the US banking system out of deep concern for the economy, an industry official said after banking executives and top federal officials met to revamp the largest bail-out plan in the nation’s history. President George is to announce the expansion later today.

Asian markets were mixed today as investor enthusiasm over rate cuts around the world gave way to persistent fears over the severe strains in credit markets and the prospect of a global recession.

US Congress has heard that Lehman Brothers, days away from becoming the largest bankruptcy in US history, was pleading for a US rescue on one hand while steering millions in dollars to departing executives on the other.

Key lawmakers who struck a post-midnight deal on a 700bn (€479bn) for the financial industry tonight predicted it would pass Congress, putting in place the largest US government intervention in markets since the Great Depression of the 1930s.

Congressional leaders and the Bush administration reached a tentative deal early today on a landmark bailout of imperilled financial markets whose collapse could plunge the nation into a deep recession.

A Republican revolt stalled efforts in Washington to agree a national economic rescue plan with negotiations broken off for the night and to resume later today.

Financial markets grew more upbeat today as political leaders said they had struck an agreement in principle on a massive spending plan to revive the crippled financial system.

Tension grew in the US financial markets today, sending stocks mostly lower as investors worried about the effectiveness of a still-emerging government plan to rescue banks from crippling debt. The credit markets also showed added strain, with rising demand for short-term Treasury bills, considered the safest of investments.

Presidential candidates Barack Obama and John McCain found themselves in rare agreement, each demanding the Bush administration's unprecedented US$700bn (€477bn) bailout for US financial institutions be subject to independent oversight and guarantees their top executives not be rewarded.

Financial markets extended their declines today as investors worried that politicians were beginning to doubt the necessity of a broad government bailout for financial institutions as a way to revive ailing credit markets.

The ISEQ has plunged 5.95% to 3,739.45 - down 236 points - as stock markets dipped today as scepticism persisted about a US bail-out plan ahead of Congressional testimony by US Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke.

The Bush administration insisted Congress must move quickly to approve what one politician called the "mother of all bailouts" - a US$700bn (€483.5bn) proposal to buy a mountain of bad mortgage debt in a bid to free up the nation's credit markets.

Five days from their first presidential debate, Democrat Barack Obama has climbed in the polls as Republican John McCain fumbled his response to a looming US economic cataclysm.

Wall Street extended a huge rally today as investors stormed back into the market, relieved that the government plans to restore calm to the financial system by rescuing banks from billions of dollars in bad debt.

The US today outlined a rescue plan costing hundreds of billions of dollars to sort out the toxic bank debts that plunged the world’s economy into chaos.

US Treasury Secretary Henry Paulson said today the country had no option but to put in place an expensive and bold rescue plan to save the economy.

The US Treasury Department is to use a fund set up in the 1930s Depression to provide guarantees for money market mutual funds.

US financial watchdogs today followed Britain and Ireland in banning the routine stock market practice of short-selling.

Asian stock markets soared today as a news of a US government plan to rescue banks from risky mortgage debt brought hope of a let-up in the world’s worst financial crisis in decades.

US president Bush attempted to ease America's fears over the economy today in a set-piece speech that was short on specifics.

The US government will provide an US$85bn (€59.9bn) emergency loan to rescue the huge insurer AIG, the Federal Reserve said today.

Republican presidential candidate John McCain today called for a top-level inquiry into the economic crisis, claiming that a corrupt and excessive Wall Street had betrayed American workers.

European Central Bank President Jean-Claude Trichet today welcomed the US government's decision to rescue mortgage giants Fannie Mae and Freddie Mac.

The US federal takeover of troubled US mortgage giants Fannie Mae and Freddie Mac could have been prevented if Congress had acted on its recommendations, the White House said today.

US president George Bush said the historic federal government takeover of mortgage giants Fannie Mae and Freddie Mac was needed to keep them from failing, a risk he called “unacceptable” for an economy battered by housing and credit crises.

President George W Bush tonight said that the historic federal government takeover of mortgage giants Fannie Mae and Freddie Mac is needed to keep them from failing, a risk he called “unacceptable” for an economy battered by housing and credit crises.

The US government formally announced today that it was taking control of mortgage giants Fannie Mae and Freddie Mac in an effort to avert the potential for major financial turmoil.