The World

1 | Washington Unemployment Soars With more than 500,000 cuts in November and December, the U.S. lost 2.6 million jobs in 2008, led by layoffs in manufacturing, construction and retail. It was the highest figure since 1945. Unemployment stood at 7.2%, with 11.1 million Americans out of work. Financial markets around the world tumbled after the news--viewed as another sign that the U.S. recession appeared no closer to ending--while President-elect Barack Obama said he would move quickly after taking office to pass a stimulus plan.

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Jan. 2008 Dec.

Month-to-month job losses in the U.S., in thousands

2 | Iran Middlemen For Weapons And Cash Intricate global networks have helped Iran elude sanctions against doing business in the U.S., according to recent reports. A Jan. 12 study from the Institute for Science and International Security says Iranian firms used Dubai- and Malaysia-based intermediaries to procure bombmaking materials from U.S. companies. Meanwhile, British bank Lloyds TSB admitted in a $350 million U.S. court settlement on Jan. 9 that it had illegally stripped identifying information from bank records so that Iranian entities could do business with U.S. banks. Nine other banks remain under investigation.

3 | Washington Burris Comes In from the Cold Roland Burris, welcome to the U.S. Senate. Democrats backed away from their opposition to embattled Illinois Governor Rod Blagojevich's pick for the state's vacant seat, announcing that Burris had resolved a paperwork snafu and, barring GOP objections, would be sworn in within days. Senate leaders had attempted to dissuade the governor from naming a new junior Senator, arguing that any appointee would be tainted by Blagojevich's arrest on charges that he conspired to sell or trade the seat for personal gain. Burris, who replaces Obama as the body's lone African-American member, has declined to say whether he plans to run for a full term in 2010.

4 | Australia Shark Rampage! Maybe Are there more sharks, more swimmers, or is it all just a coincidence? Three nonfatal attacks in two days sparked panicky headlines in Australia, where shark attacks kill an average of one person a year. (The last fatality was on Dec. 27.) The assaults raised fears that warmer weather and protection policies might be increasing shark populations.

5 | California OAKLAND IS BURNING Hundreds of residents took to the streets on Jan. 7, smashing storefronts and setting fires to protest the fatal shooting of an unarmed African-American man by a white police officer on New Year's Day. The demonstrations turned to near riots as angry citizens confronted Oakland Mayor Ron Dellums on the steps of city hall. Police used tear gas to break up the crowds. Authorities are still deciding whether to file criminal charges against the officer, who has resigned.