Hurricane Dolly slams into Texas with 100 mph winds (AP)

AP - Hurricane Dolly gathered strength and slammed into the South Texas coast Wednesday with punishing rain and winds of 100 mph, blowing down signs, damaging an apartment complex and knocking out power to thousands.

Obama defends plans for direct talks with Iran (AP)

AP - Democratic presidential candidate Barack Obama defended his proposal to negotiate with Iran Wednesday and said he would use "big sticks and big carrots" to persuade the country's leaders not to develop nuclear weapons.

Congress moves to help homeowners avoid foreclosures (AP)

AP - Congress is moving quickly to pass a housing package that aims to help 400,000 strapped homeowners avoid foreclosures and prevent Fannie Mae and Freddie Mac from collapsing.

Next president to decide on Afghan troop levels (AP)

AP - It will be left to the next administration to decide on any sizable troop increase for Afghanistan, the Pentagon spokesman said Wednesday.

McCain credits Bush for drop in oil price (AP)

AP - Republican John McCain on Wednesday credited the recent $10-a-barrel drop in the price of oil to President Bush's lifting of a presidential ban on offshore drilling, an action he has been advocating in his presidential campaign.

Karadzic's secret life enthralls his fellow Serbs (AP)

AP - Radovan Karadzic sent word he plans to defend himself against U.N. genocide charges, but his fellow Serbs were more enthralled with details that emerged Wednesday about his secret life: a mistress, a bogus family in the U.S., and regular visits to the Madhouse bar and its photo of his beardless days as wartime leader of Bosnian Serbs.

Fed: Slower growth, rising prices slam economy (AP)

AP - The country slogged through slower economic growth and rising prices during the summer, packing a double whammy to people and businesses alike.

Gates, Bloomberg pool riches to fight smoking (AP)

AP - Microsoft founder Bill Gates and New York Mayor Michael Bloomberg are pooling their piles of money to pour $375 million into a global effort to cut smoking.

Madame Tussauds in London unveils wax Winehouse (AP)

AP - Madame Tussauds unveiled a waxwork of Amy Winehouse on Wednesday complete with her signature beehive, black eyeliner and a bright yellow minidress.

Shields pitches into ninth, Rays beat Oakland 4-3 (AP)

AP - James Shields allowed three runs pitching into the ninth inning, and Jonny Gomes and Ben Zobrist hit back-to-back homers to lead the AL East-leading Tampa Bay Rays past the Oakland Athletics, 4-3 on Wednesday.

Bush lifts housing veto threat; House nears vote (Reuters)

Reuters - President George W. Bush dropped a threat to veto a housing rescue bill under debate by Congress on Wednesday, clearing the way for measures meant to shore up the worst U.S. home slump since the Great Depression.

Obama assures Israel he's a friend (Reuters)

Reuters - U.S. Democratic presidential candidate Barack Obama assured Israel and its U.S. Jewish supporters on Wednesday he was a friend who would not press for peace concessions that would compromise its security.

Ahmadinejad says U.S. envoy showed Iran respect (Reuters)

Reuters - Iranian President Mahmoud Ahmadinejad on Wednesday praised U.S. participation in last week's talks with Tehran on its disputed nuclear program as "a positive step" and said its arch foe had shown respect.

Karadzic to defend himself, mirroring Milosevic (AFP)

AFP - Captured Bosnian Serb genocide suspect Radovan Karadzic is to defend himself before the UN war crimes court, his lawyer said Wednesday, raising memories of the trial of his late ally, Slobodan Milosevic.