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By John Whitesides, Political Correspondent WASHINGTON (Reuters) - Republican John McCain's campaign blamed presidential rival Barack Obama and his fellow Democrats on Monday for the congressional rejection of a $700 billion rescue plan for Wall Street and said Obama failed a test of leadership. The failure of the mammoth bailout for the U.S. financial services industry left both par ...

By Kevin Drawbaugh and Eddie Evans WASHINGTON/NEW YORK (Reuters) - The House of Representatives rejected a $700 billion bailout plan for the financial industry in a shock vote that sent global markets sliding as European authorities scrambled to prop up a slew of banks. Even before the vote, Asian and European markets had plummeted on fears the crisis was spreading, while regional le ...

WASHINGTON (Reuters) - Defense Secretary Robert Gates predicted on Monday that growth in military spending would level off in the coming years but not face severe cutbacks, despite the current economic crisis. "While there's a lot of debate over Iraq, there really is very broad bipartisan support for a strong defense and support for our men and women in uniform in the Congress," Gates said  ...

WASHINGTON (Reuters) - A former third-ranking official at the CIA pleaded guilty on Monday to fraud charges related to accusations he improperly steered agency contracts to his best friend, the Justice Department said. The CIA's former executive director, Kyle "Dusty" Foggo, admitted steering contracts to friend Brent Wilkes, who already is serving a 12-year sentence for bribing former Repu ...

By Will Dunham WASHINGTON (Reuters) - Fueled by the needs of a growing elderly population, spending on long-term health care under the Medicaid program will soar in the next 20 years, a report released Monday predicted. Spending for long-term care for elderly and disabled people under the Medicaid health insurance program for the poor will total $3.7 trillion in the next two decades, ...

By Louis Charbonneau UNITED NATIONS (Reuters) - Russia accused the United States on Monday of stonewalling negotiations on a new pact on reducing the size of the two powers' nuclear arsenals, the latest sign of deteriorating Russian-U.S. relations. "Negotiations between us and Washington to make sure that after START I treaty expires in December 2009 we have some meaningful strategic ...

By Sue Pleming NEW YORK (Reuters) - U.S. diplomat Chris Hill will try to re-engage North Korea on how to verify its nuclear claims and rescue a crumbling disarmament-for-aid deal in Pyongyang this week, U.S. officials said on Monday. Hill's trip to Pyongyang on Wednesday is a concerted effort by the Bush administration in its waning months to revive a six-nation deal after Pyongyang  ...

WASHINGTON (Reuters) - The Bush administration believes it has enough votes in Congress to pass the $700 billion package aimed at rescuing the U.S. financial system despite some opposition by lawmakers, a White House spokesman said on Monday. "I think we're going to have a sufficient vote to pass this, we're certainly confident that we are," said White House spokesman Tony Fratto. "We're no ...

By Glenn Somerville WASHINGTON (Reuters) - Consumers facing rising unemployment kept their spending unchanged in August even though incomes rose, according to a government report Monday that showed optimism about the economy's direction was fading. The Commerce Department said consumer spending was flat in August after barely edging up by a revised 0.1 percent in July, a much weaker  ...

By Andrew Gray WASHINGTON (Reuters) - Defense Secretary Robert Gates urged the U.S. military on Monday not to believe that technology can solve every problem and suggested quick-fix, low-tech solutions can sometimes be more valuable. The comments reflect Gates' vision of a U.S. military that can adapt quickly to fight complex insurgencies, such as those in Iraq and Afghanistan, as we ...