For 2008, one big story with countless angles

8) Presidential election: In mid-September, as financial titans were crumbling and the nation was close to panic, then presidential-candidate John McCain told supporters: “The fundamentals of our economy are strong, but these are very, very difficult times.”

Rival candidate Barack Obama jumped on the comments as a sign that his Republican opponent was out of touch. As the presidential race played out against the backdrop of the financial crisis, Obama seized on the nation’s economic woes, while McCain struggled to gain traction with the issue.

While the economy was cited as a key factor in Obama’s victory, the incoming president now faces the enormous challenge of trying to repair it.

9) Auto industry woes: U.S. automakers were caught flat-footed by two of the big economic developments of 2008 — the sharp rise in gas prices and steep drop in the availability of credit. The industry also is saddled with high operating costs and stiff competition from foreign manufacturers who have been more adept at producing cheaper and more efficient cars, although they are not immune to global economic conditions.

Kevin Wolf / AP Chrysler CEO Bob Nardelli arrived by Jeep, not private jet, for a second round of hearings on Capitol Hill in December.

Bleeding money, the heads of Detroit's Big Three automakers trekked to Washington in November seeking federal aid to keep themselves afloat. After a disastrous initial appearance, they returned to Capitol Hill in early December, offering plans to turn around their companies, including a willingness to cut their own salaries. But Senate Republicans blocked a $14 billion bailout proposal, leaving it to the White House to prevent the manufacturing giants from collapsing.

10) Bernard Madoff scandal: The steep drop in the stock market spooked even the wealthiest investors, prompting more than a few to flee riskier investments for safer ground. That exodus may have been the final downfall for money manager Bernard Madoff, a longtime Wall Street fixture who is now accused of running an enormous Ponzi scheme.

Prosecutors allege that Madoff, 70, defrauded investors of up to $50 billion by using money from new investors to pay old ones. Potential victims include charities, banking institutions, celebrities and ordinary investors.

The scheme appears to have come unraveled when too many investors sought to withdraw funds, and authorities allege he didn't have the money to pay them.

Looking ahead to 2009, it is clear that many more chapters are yet to be written in the story. An alarming number of families continue to face the threat of home foreclosures, and the employment picture is looking grimmer by the month. More than a half-million jobs disappeared in November alone, the worst month for jobs since 1974. Most analysts are predicting a dour holiday season for retailers, and the nation’s financial and auto industries remain in dire straits.

On Dec. 1, the National Bureau of Economic Research confirmed what many Americans had already guessed: the nation is in a recession, and has been since December 2007. The question for 2009 is, how do we get out of it?

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