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Bush: Jobless rate shows U.S. in recession

WASHINGTON, Dec. 5 (UPI) -- The latest jobless rate shows the United States is in a recession caused by a housing slowdown and poor market conditions, President George Bush said Friday.

Unemployment jumped from 6.5 percent to 6.7 percent, the U.S. Labor Department reported.

"Today's job data reflects the fact that our economy is in a recession," Bush said. "This is in large part because of severe problems in our housing, credit and financial markets, which have resulted in significant job losses."

Government officials are working on the causes of the downturn "to return our economy to health," Bush said.

The frozen credit market is showing signs of thawing, but "there's still more work to do," he said.

The housing slowdown is another cause of the downturn, he said, noting that federal officials will continue to develop programs "that will avoid preventable foreclosures and speed a return to a healthy housing market."

Bush also expressed concern about the viability of the U.S. auto industry, which was testifying before a House committee when the president commented on the economy.

The administration favors tapping into already approved funds designated to help automakers "so long as the companies make hard choices on all aspects of their business to prove that they can not only survive, but thrive," Bush said.

The president said his administration is committed to ensuring the U.S. economy succeeds "and I know the incoming administration shares the same commitment."

Frank optimistic of auto bailout chances

WASHINGTON, Dec. 5 (UPI) -- The jump in U.S. unemployment helped galvanize support for some sort of federal assistance to U.S. automakers, Rep. Barney Frank said Friday.

With a bad economy and a jump in unemployment from 6.5 percent to 6.7 percent in November, doing nothing to help the automakers would "make things worse," the chairman of the House Financial Services Committee said after a hearing on whether the government should provide $34 billion to Detroit automakers.

Chief executive officers from Ford Motor Co. , General Motors Corp. and Chrysler LLC were on Capitol Hill for two days of testimony on their request for government aid, appearing before the House Financial Services Committee Friday and the Senate Banking Committee Thursday.

Based on the nearly six-hour House hearing, Frank said he was optimistic Congress could rally around some type of aid package automakers said they need to avoid collapse. The United Auto Workers president, in advocating approval of a bridge loan, said his union believes GM and Chrysler will have to liquidate if they don't get some sort of funds.

"There is a lot more agreement that we should do something," Frank said before adjourning the hearing. "I think it's fair to say that the job report today, this disastrous job report, has heightened the interest in doing something."

High court to hear 'enemy combatant' case

WASHINGTON, Dec. 5 (UPI) -- The Supreme Court agreed Friday to hear a challenge to whether an "enemy combatant' can be held indefinitely without trial in the United States.

The court is expected to decide on Al-Marri v. Pucciarelli by next summer, Scotusblog reported. But the case could also become moot if President-elect Barack Obama's administration decides against claiming the power to hold "enemy combatants" without formal charge or trial.

Ali Saleh Kahlah al-Marri, a citizen of Qatar, was living in Peoria, Ill., and studying computer science at Bradley University when he was arrested in 2001 on charges that included credit card fraud. In 2003, just before his trial was to begin, President Bush had the criminal charges dismissed and Marri transferred to the naval brig in Charleston, S.C., describing him as a sleeper agent for al-Qaida.

A federal appeals court, the Fourth Circuit in Richmond, Va., issued two 5-4 decisions in the case. One upheld the president's right to hold enemy combatants and the other said that Marri should be given an additional opportunity to challenge his detention.

Indian Home Minister admits failures

MUMBAI, Dec. 5 (UPI) -- The minister in charge of Indian law enforcement acknowledged Friday that failures in intelligence and security made the Mumbai terrorist attack possible.

Home Minister P. Chidambaram also said that the government is considering setting up a national investigative agency modeled on the FBI in the United States.

"I agree that there has been a failure on the part of the security forces, but this attack will help the Government be more determined in combating terrorism," Chidambaram said in a news conference at police headquarters in Mumbai.

Chidambaram suggested to reporters that investigators have found evidence of involvement by some members of the Pakistani Inter Services Agency.

"There is ample evidence to link the attack to organizations or entities which have been responsible for terror attacks in the past," he said. "At this stage, it would not be correct to name any organization but you can draw conclusions."

20 killed, 80 hurt in Pakistan bombing

KOHAT, Pakistan, Dec. 5 (UPI) -- A car bomb killed at least 20 people Friday at a police checkpoint in northern Pakistan, police said.

At least 80 people were injured, the Pak Tribune reported.

As much as 50 pounds of explosives detonated, Police Inspector Gen. Naveed Khan told Geo News. He said the crater left by the blast suggests that it was not a suicide attack.

An intelligence official said it appeared the bomber had intended to target minority Shia Muslims, but decided to detonate the bomb after being stopped by police in the Orakzai Agency, Dawn reported.

"The bomber tried to drive into a market in a Shia neighborhood ... but blew up his car when police tried to stop him at a checkpoint," the official said.

Security officials said a jirga, or tribal council meeting, was taking place near the site of the bombing. The jirga was aimed at settling hostilities between regional Shia and Sunni Muslims.

Dawn said a bombing of a tribal council in October killed more than 50 people.