Afghan War Deterioriating, McCain and Obama Advisers Briefed · Senior Bush administration officials briefed campaign advisers to John McCain and Barack Obama two weeks ago, on the grim news that the situation in Afghanistan is getting worse and a plan must be in place before January's Inaugural. (NYT)

Laeven: The Cost Of Crisis Resolution [OPINION] · International Monetary Fund economist Luc Laeven calculates that between 1970 and 2007 the fiscal cost of banking crises in industrialized economies averaged 15% of GDP, three times the U.S.'s $700 billion bailout plan, suggesting costs associated with the current credit crisis could rise appreciably. (VOX)

Islamic Banking Thrives As Wall Street Falters [ANALYSIS] · Islamic finance, which bans interest and trading in debt according to sharia law, has held steady despite a painful global credit crisis, spurring U.S. Treasury officials to examine its features for regulatory guidance. (Washington Post)

Bank of Japan Cuts Key Rate, Nikkei Plunges · The Bank of Japan lowered its key interest rate to 0.3% Friday, down from an already record low 0.5%, to help stave off a prolonged recession.  The Nikkei 225 index plunged 5% after three of the eight board members dissented in favor of a larger cut. (Bloomberg)

Barclays Secures $12B Capital Injection · Barclays finalized an $11.8 billion capital injection Friday – including a $9.4 billion investment from private investors in Qatar and Abu Dhabi – in a move that will allow it to meet new capital ratios mandated by the U.K. government for Britain's largest banks. (FT)

IMF Extends $9B Loan To Pakistan · The International Monetary Fund reportedly agreed Friday to extend a $9 billion loan to Pakistan in an effort to help it meet foreign debt payments amid the global credit crisis. (CNBC)

Sarkozy: Strategic Fund To Start Within Weeks · French President Nicolas Sarkozy said late Thursday that his government will establish a strategic fund in three weeks' time to protect domestic industries battered by the financial crisis.  The government could potentially inject $130 billion into the fund. (Reuters)

Barclays Chases $10B Capital Injection · Barclays is reportedly close to securing a $9.8 billion investment from the Qatar Investment Authority and an Abu Dhabi-based sovereign wealth fund in a move that would help it meet new U.K. capital benchmarks.  The bank also discussed investment possibilities with Libya’s sovereign wealth fund. (FT)

Kurdish Leader Says Iraqi-US Pact May Not Pass · The president of the Kurdistan Regional Government said he is doubtful that a bilateral agreement authorizing U.S. forces to remain in Iraq will pass the parliament and cabinet. Massoud Barzani supports it, but other leaders fear appearing too close to the U.S. in advance of provincial elections in January. (NYT)

Congolese Blood Soaks Your Pocket [OPINION] · Correspondent Johann Hari sets the record straight about Congo, in his cutting reporting from the front-lines of the world's bloodiest civil war, which has killed 5.4 million people. The conflict is about the coltan used in your cell-phone, the cassiterite used in the tins you open, the gold and diamonds you buy, he writes. It is about business and western markets, not about tribalism. (The Independent)

Thousands Flee Congo Unrest, Aid Groups Evacuate · A rebel army advance in the eastern Democratic Republic of Congo has spread fear as tens of thousands of people flee and aid agencies evacuate their staff.  Looting, robbery, and acts of violence are rampant. Five million people have died in the world's worst ongoing civil war, fought over the coltan and cassiterite used in modern electronics. (BBC)

The Financial Crisis: Parallels To The 1930s [VIDEO] · Henry Farrell of George Washington University and Daniel Drezner of Tufts University discuss the parallels between the current financial crisis and that of the 1930s as well as examine the role of China in a global economic recovery. (bloggingheads.tv)

Hedge Funds To Ask EU For Porshe-VW Resolution · Hedge funds that were short-squeezed by Porsche's surprise disclosure Monday it owns roughly 75% of Volkswagen will petition the European Union to clamp down on a controversial German legal loophole that allowed the automaker to secretly boost its stake.  Some of the funds are facing billions of dollars in losses. (The Times)

Asian, European Stocks Rally On Rate Cuts · Global markets rallied Thursday as Asian and European central banks echoed the Federal Reserve's Wednesday rate decision with cuts of their own.  In Asia, Japan's Nikkei 225 index rose 10% while Seoul's Kospi index soared 12%. (NYT)