The Note’s Must-Reads for Friday, December 26, 2008

Compiled by ABC News’ PETER MARTINEZ, CARRIE HALPERIN, KRISTEN RED-HORSE, JAYCE HENDERSON and JUSTIN GRANT

2008: ABC NEWS VIDEOS:

"The Obamas Celebrate in Hawaii" LINK

2008: ILLINOIS GOVERNOR ROD BLAGOJEVICH:

Boston Herald Editorial: “Blago bug spreads” LINK

2008: PRESIDENT-ELECT OBAMA AND THE WHITE HOUSE TRANSITION:

ABC News’ Special Index for the 44th President: LINK

ABC News’ Rick Klein: "President, President-elect Spend Christmas in Transition" LINK

The Associated Press’ Philip Elliott: "Obama Visits Military Base on Christmas" LINK

USA Today’s Susan Page: "Poll: Obama is man Americans admire most" LINK

The Associated Press: "Obama visits military base on Christmas" LINK

The Chicago Tribune’s John McCormick: "Lack of attendance at a Christmas service shows Barack Obama’s church dilemma" LINK

The New York Times’ Peter Baker: "Obama Follows a Tradition of Testifying for Prosecutors" LINK

The Washington Post’s Philio Rucker: "Far West of Washington, Calm before the Term" LINK

The Washington Post’s Max Steir: "A Lesson for Obama on Reaching Out to the Federal Workforce" LINK

Boston Herald Op-Ed by Lanny Davis: “Civility advanced by Obama, Warren” LINK

The Boston Globe’s Lisa Wangsness: “Health reform a joint mission” LINK

Boston Globe Op-Ed by Derrick Z. Jackson: “Life for the First Children” LINK

2008: FIRST LADY ELECT MICHELLE OBAMA:

The chicato Tribune’s Phil Rosenthal: "Ex-WBBM-TV P.R. person to become Michelle Obama’s White House communications director" LINK

2008: AUTO INDUSTRY:

USA Today’s Chris Woodyward: "Economic crisis has small car sales making a U-turn" LINK

The Wall Street Journal’s Mike Spector and Alex P. Kellogg: “Detroit Car Show Hit by Industry’s Gloom” LINK

Bloomberg’s Greg Bensinger and Ari Levy: “GM Gets Boost as GMAC Bank Approval Helps Preserve Loan Access” LINK

2008: ECONOMY:

The Associated Press’ Jay Alabaster: "Japan Factory Output Has Biggest Monthly Fall" USA Today’s Matt Krantz: "Stocks of luxury retailers like Saks, Tiffany take big falls" LINK

The New York Times’ Mark Landler: "Dollar Shift: Chinese Pockets Filled as Americans’ Emptied" LINK

The Washington Post’s Renae Merle: "Firms Charge Thousands To Modify Mortgages" LINK

The Washington Post’s Ashley Halsey III: "As Property Values Plunge, Tax Bills Might Not Follow" LINK

The Washington Post’s Michael S. Rosenwald and Heather Landy: "Investors Flee Stock Funds" LINK

The Wall Street Journal’s Ann Zimmerman, Jennifer Saranow and Miguel Bustillo: “Retail Sales Plummet” LINK

The Wall Street Journal’s Simona Covel: “Slump Batters Small Business, Threatening Owners’ Dreams” LINK

Bloomberg’s Keiko Ujikane and Toru Fujioka: “Japan’s Recession Deepens as Factory Output Plummets” LINK

Bloomberg’s Heather Burke: “Holiday Sales Tumble as U.S. Consumers Reduce Luxury Purchases” LINK

Bloomberg’s Dinakar Sethuraman: “Oil Rises First Time in 3 Days after Dropping 30% This Month” LINK

The Boston Globe’s Jenifer B. McKim: “Mortgage practice hindering recovery” LINK

2008: SENATOR HILLARY RODHAM CLINTON:

Boston Globe Editorial: “Clinton’s wish list for State” LINK

2008: CAROLINE KENNEDY:

The Associated Press’ Michael Gormley: "Kennedy’s Pursuit of Senate Snared in N.Y. Politics" LINK

The New York Daily News’ Michael Saul: "Lack of donations to city, state Dems may hurt Kennedy’s bid for Senate" LINK

The New York Daily News’ Michael Saul and Meredith Kolodner: "Gov Paterson: No hasty choice for Clinton’s seat" LINK

2008: CURRENT ADMINISTRATION:

The Associated Press Jennifer Loven: "Bush Nixes Pardon to N.Y. Developer" LINK

USA Today’s Ken Kilanian: "Pardoned exec gave money to Bush campaign" LINK

The Associated Press: "12 Days of Christmas for Bushes at Camp David" LINK

The New York Times’ Kevin Sack: "Expansion of Clinics Shapes a Bush Legacy" LINK

The Washington Post’s Ann Scott Tyson: "Study Criticizes Bush Approach to War Funding, Calls for Changes" LINK

The New York Daily News’ William Sherman: "Toussies’ trail a doozie" LINK

The New York Daily News’ Celeste Katz and Rachel Monahan: "Dream homes of Toussie victims were nothing but nightmares" LINK

2008: MADOFF SCAM:

The Associated Press’ Jennifer Peltz: "Madoff Case Sparks Anti-Semitism Fears" LINK

2008: DEMOCRATS/GOP:

The Wall Street Journal Capitol Journal: “Lessons From ’92 Offer Hope to GOP” LINK

2008: SARAH PALIN:

The Associated Press: "Text message led to arrest of Palin’s boyfriend’s mom" LINK

2008: OTHER MUST-READS:

The Associated Press’ Christina Hoag: "Man in Santa Suit Kills 8, Self on Christmas Eve" LINK

The Los Angeles Times’ Ari B. Bloomekatz, Tami Abdollah and Joel Rubin: "Man in Santa Suit Kills At Least Eight at Covina Party, Police Say" LINK

The Associated Press’ Polly Anderson: "Eartha Kitt, Sultry ‘Santa Baby’ Singer, Dies" LINK

The Associated Press’ Khaild Tanveer: "Pakistan Warns India It Will Respond to Any Attack" LINK

USA Today’s Andrea Stone: "Troops in Iraq mark time, holiday" LINK

USA Today’s Haya El Nasser: "Military bases focus on smarter growth" LINK

The Chicago Tribune’s Tom Hundley: "Nobel Prize-winning playwright Harold Pinter dies at 78 of cancer" LINK

The Chicago Tribune’s Kim Barker: "Afghanistan’s mentally ill left to superstition" LINK

The Washington Post’s Amy Goldstein: "States Cut Medicaid Coverage Further" LINK

The Wall Street Journal’s Jim Carlton: “Targeting the Wasteful, Activists Seek End to California’s Waste Board” LINK

Bloomberg’s Michael B. Marois: “California Bond Yields Rise to Four-Year High on Budget Impasse” LINK

The Wall Street Journal’s Andrew Higgins and Steve Stecklow: “U.N. Push to Stem Misconduct Flounders” LINK

The Boston Globe’s Carolyn Y. Johnson: “Going with climate’s flow” LINK

The Los Angeles Times’ Noam N. Levey: "Food Safety Reform Waits On Back Burner" LINK

The Los Angeles Times’ Chris Kraul: "How To End A ‘Decade of Neglect’ In U.S.-Latin America Relations" LINK

The Los Angeles Times’ Jerry Hirsch: "There’ll be A Dip in The Avocado Supply" LINK

The Los Angeles Times’ Ronald D. White: "Crude Oil Falls 9% to $35.35 a barrel, its lowest close in more than four years" LINK