Vice Presidential candidates Sarah Palin and Joe Biden went toe to toe on Thursday October 2, 2008, in their first and only debate before the general election in November. The two sparred on foreign policy, the economy and other tangential topics like gay marriage and Iraq.

Though a CNN/Opinion Research poll shows Biden as the winner by a small margin, there were few fireworks during the debate and neither candidate landed a decisive blow. The poll also showed that Palin performed better than expected, especially in light of her recent fumbles in the press. Palin went as far as to say that Couric “annoyed” her with her quizzy questions.

Remains of adventurer Steve Fossett were finally found on October 2, 2008, amongst his plain’s wreckage in the Sierra Nevada Mountains. DNA tests are pending, but Fossett is thought to be dead. He first went missing in September 2007.

The House of Representatives approved (263-171) the $700 billion bailout bill today, after initially rejecting the bill on September 29. The bill gives the Treasury Secretary Henry Paulson free reign to purchase flailing financial institutions, in what is being dubbed the biggest act of governmental intervention on record. According to an article on SFGate.com, the bill was repackaged to include billions in earmarks and tax breaks for home-town interests in the Senate, two examples being: $2 million for wooden arrow manufacturers in Oregon, and the extension of a tax break worth $478 million for Hollywood filmmakers who shoot in the U.S.

In somewhat lighter news, a user with the handle “johntw” purported a hoax through CNN’S iReport system that Steve Jobs (CEO of Apple) had a heart attack. This caused Apple’s stock to temporarily plummet, falling below $100 per share. Apple’s stock has recovered, and Steve Jobs is fine.

Need some games to dig into over the weekend? Star Wars: The Force Unleashed, the action-adventure title that lets you violently wield the force, has broken sales records and defied reviews (check out our full game guide). Or, if you would like to be terrified, Silent Hill: Homecoming, the fifth title in the chilling Silent Hill series, was released this past week (game guide is pending).

It’s the first day of October, and the U.S. Senate passed the $700 billion bailout bill, 75 to 25. The House, which voted 228 to 205 against the measure, is expected to reconsider it tomorrow.

Although adventurer Steve Fossett was declared dead in February 2008, following a September 2007 Nevada desert plane crash, his body was never found, and rumors of his faking his own death continue to this day. Now the plot thickens–a hiker in California has allegedly found three IDs with Fossett’s name, as well as $1,000 cash. Police are investigating the documents’ validity.

The debate between vice-presidential candidates Joe Biden and Sarah Palin is hotly anticipated for tomorrow, and Gwen Ifill won’t let her broken ankle keep her from moderating.

Could Jessica Simpson and Tony Romo be engaged? The two were reportedly seen ring-shopping in Dallas.

Attention Phish fans: reunion shows will be held on March 6, 7, and 8, 2009, and tickets are now available!

The Wall Street financial crisis was the major news of the day, with the Dow Jones on a turbulent ride, setting a new record for the largest single day point loss ever of 777.68 points, following the rejection of the bailout bill in Congress.

The U.S. Attorney firing scandal is back in the news after an internal Justice Department report was released and a special prosecutor, Nora Dannehy, was named to investigate the possibility of filing criminal charges.

The rocket Falcon 1, funded by SpaceX, reached orbit on September 28.

Rosh Hashanah, the Jewish new year, starts today at sunset.

In celebrity news, Scarlett Johansson and Ryan Reynolds married in Vancouver, Canada, over the weekend, and Heather Locklear was arrested for drunk driving in Montecito, California.

Read more at Mahalo.com!

Enterprising University of Alaska Southeast student Richard Millay found, and shared, a video of Sarah Palin competing in the swimsuit portion of the Miss Alaska pageant. Soon we may be able to see video of Sarah Palin playing the flute in the talent competition, as well.

John McCain did decide to go on with tonight’s debate. However, the Wall Street Journal decided to go one step further: several hours before the debate, the publication’s online site displayed a McCain ad that stated “McCain Wins Debate!”

If the Wall Street Journal has a crystal ball, it would perhaps have been better served to check out where the U.S. economy was heading. Lawmakers were planning to work through the weekend to finalize the mortgage bailout plan.

Sadly, Ted Kennedy will not be in Washington. Kennedy was hospitalized after a “minor seizure” that resulted from a change in medication.

In lighter news, Sacha Baron Cohen, the comedian who channels Ali G and Borat, was arrested after his character Bruno interrupted a Milan fashion show for a scene for his upcoming film. Bruno isn’t yet in theaters, but this weekend you can see Nights in Rodanthe or Eagle Eye. Visit our movie reviews to see if either is worth the price of admission!

The financial markets continued to go haywire on Thursday, with the sale of struggling Washington Mutual to J.P. Morgan. In the midst of the crisis, lawmakers have still not reached an agreement on the mortgage bailout plan.

Though John McCain and Barack Obama have temporarily “suspended” their campaigns, the American public certainly hasn’t. Comedian Sarah Silverman is promoting The Great Schlep, encouraging young Jews across America to travel to Florida to convince their elderly relatives to vote for Obama.

With economic relief nowhere on the horizon, Americans can still indulge in television. Tonight sees the season premiere of Grey’s Anatomy on ABC and the premiere of The Office on NBC.

Not laughing yet? Then you might need the 2009 Naked Clown Calendar, the proceeds of which go to benefit the Judy Finelli Fund, striving to discover a cure and treatments for multiple sclerosis.

If you missed it, check out Mahalo Daily’s coverage of the Eagle Eye premiere. Mahalo Daily co-host Lon Harris interviews Kristin Cavallari, Michelle Monaghan and Rosario Dawson.

The big story today was John McCain’s decision to put his campaign for the American presidency on pause in order to focus his attention on the country’s financial system crisis. He asked political rival Barack Obama to join him and to postpone Friday’s presidential debate. Obama refused, saying now is the time to lay out both candidates’ plans in front of voters. The debate is to go on as scheduled.

In NFL news, the president of the Detroit Lions, Matt Millen, was fired after the Lions lost the first three games of the season. The New York Giants suspended Plaxico Burress for two weeks, allegedly for missing practice. Burress will miss one game, against the Seattle Seahawks. Finally, New York Giants radio broadcaster Dick Lynch has died at the age of 72.

Lindsay Lohan is back in the gossip news for her high profile romance with DJ Samantha Ronson. The young actress has confirmed that she is gay and in love with Ronson, who is ten years her senior. Rumors about the pair include their purchasing a New York penthouse together and an impending marriage.

With the presidential election only 41 days away, keep up to date with our pages on the Presidential Polls and the Electoral Vote Map. They are great to refer to right up to November 4th!

Check out Mahalo.com for more news, gossip, sports and politics!

Today’s top story was a college shooting in Finland. The shooter, Matti Juhani Saari, uploaded threatening videos to his YouTube Channel as user Wumpscut86, just hours before the shooting. YouTube suspended the account after its contents were discovered.

In celebrity gossip news, American Idol finalist Clay Aiken has come out. The pop star discusses his decision to finally reveal all in the October 6 issue of People Magazine.

Both George W. Bush and Iranian president Mahmoud Ahmadinejad addressed the UN today. His address counters against the international pressure his country is under to disband its nuclear programs.

The tech-obsessed can rejoice: the Google Android Phone has finally been launched. The T-Mobile G1 is the first phone to utilize Google’s operating system and will cost $179 when it is released on October 22. T-Mobile G1 Reviews have been mostly positive, with one article expressing that the phone takes the best features from the BlackBerry and iPhone.

The blogosphere is abuzz with the news that John McCain’s chief of staff, Mark Buse, may be gay. Several blogs posted claims from Buse’s alleged ex-boyfriend, stating that they met at a gay bar in 1986. As John McCain opposes same-sex marriage and supports the military’s “don’t ask, don’t tell” policy, this revelation was unexpected, to say the least.

Sady, well-known writer Dominick Dunne was hospitalized today. Dunne was in Las Vegas covering O.J. Simpson’s trial for armed robbery and kidnapping; Dunne is known for his trenchant coverage of Simpson’s 1995 murder trial.

A photo of Jamie Lynn Spears breastfeeding her baby was reportedly stolen from Wal-Mart. In addition to the invasion of privacy and theft, the culprit could be prosecuted for disseminating child pornography, as Spears is underage.

And it’s the day after the Emmy Awards! This year’s big winners included 30 Rock, whose Tina Fey and Alec Baldwin scored leading actress and actor in a comedy, and HBO’s miniseries John Adams, which also had top acting honors going to Laura Linney and Paul Giamatti.

More troubling economic news broke as insurance company AIG gave 80% of its company to the federal government in exchange for an 85 billion dollar two year loan, and rumors of a Morgan Stanley-Wachovia merger swirl.

Dan Gheesling was announced the winner of Big Brother 10 in the show’s finale on Tuesday night.

Republican vice-presidential nominee Sarah Palin and Katie Couric will sit down for an interview set to air September 29 and 30 on CBS’s news programs.

One more celebrity arrest for the annals: Ryan O’Neal and his son Redmond were both arrested for drug possession today in Malibu, California.

Read more of the day’s hot stories at Mahalo.com!

After the nation focused its attention on Monday to the economy, political news and scandals returned to prominence on Tuesday. Vice presidential candidate Sarah Palin is involved in Troopergate, while her running mate John McCain’s Blackberry invention received added scrutiny. Barack Obama was not immune from criticism himself. Several newspapers highlight Obama’s Beverly Hills dinner, a ticket to which costs $28,500.

One of televisions biggest shows has its finale tonight. The winner of Big Brother 10 will be announced. Mahalo also is your one-stop source for Big Brother 10 Spoilers, if you just can’t wait until the show airs in your time zone.

Megan Fox’s GQ photos bare significant skin from the popular actress. In the GQ interview, Fox defends teenage actresses and discusses the sex appeal of Olivia Wilde.

In sports news, the Dallas Cowboys defeated the Philadelphia Eagles in a wild Monday Night Football game. Though the Eagles did score a touchdown on the drive, rookie DeSean Jackson made a critical mistake when he spiked the ball prior to entering the endzone.