The World

10 ESSENTIAL STORIES

By Harriet Barovick, Ishaan Tharoor, Alexandra Silver, Claire Suddath, Frances Romero, Kayla Webley and Josh Sanburn Monday, Oct. 04, 2010

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    In what Italian authorities called a preventive measure, $30 million was seized from the Vatican bank as the private institution and its two top officials were placed under investigation for alleged money laundering. The inquiry was launched after the bank failed to adequately explain the origin of funds transferred from one of its accounts to two others it holds. Led by chairman Ettore Gotti Tedeschi (above) and director general Paolo Cipriani, the Vatican bank--which manages money for charitable activities--has not been investigated since the 1980s. The Vatican expressed "perplexity and surprise" at the action but said it remained confident that no charges would be brought in the coming months.

    6 | Iraq

    FOREVER WAR

    Political paralysis and spiraling instability have followed the declared end of U.S. combat operations in Iraq in August. Two bombings in the capital killed 29 people on Sept. 19. A separate car bomb, targeting an Iraqi military patrol in Fallujah, killed at least four. Some speculated that the attacks were triggered by a controversial raid launched by Iraqi and U.S. special forces against a suspected insurgent hideout, which left six people dead.

    7 | Sweden

    Far Right Gains Seats

    An anti-immigration party won seats in the Swedish Parliament for the first time and now holds the balance of power after an election that appeared to give center-right Prime Minister Fredrik Reinfeldt (below) a second term. The results could signal the decline of the left-wing Social Democrats, architects of Sweden's social-welfare state.

    8 | Boston

    Recession? What Recession?

    Brows furrowed after the National Bureau of Economic Research (NBER), a private, nonpartisan organization, announced Sept. 21 that the recession in the U.S. ended 15 months ago, in June 2009. Citing high unemployment, job scarcity and a hobbled housing market, many called the conclusion misguided. One member of the NBER, however, explained that "we are only saying that things started to get better in June 2009, not that times are good." Now that the country is officially out of the longest recession since World War II, President Obama is pressing for tax relief for the hard-hit middle class.

    Longest U.S. recessions since World War II

    1973--75

    16 MONTHS

    1981--82

    16 MONTHS

    2007--09

    18 MONTHS

    9 | Yemen

    Battling Al-Qaeda

    Targeting suspected al-Qaeda militants, Yemeni troops laid siege to the southern town of Hawta. While thousands of residents were able to flee, the government said al-Qaeda was using civilians as human shields. Yemen is home to al-Qaeda in the Arabian Peninsula, the terrorist branch that claimed responsibility for the failed plot to blow up a Detroit-bound passenger flight last December.

    10 | China

    Tensions with Tokyo Spike

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