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CAMPAIGN 2012

Cain cites Reagan as foreign-policy inspiration

URBANDALE, Iowa — One day after bobbling a question about Libya, Herman Cain told supporters in Iowa the U.S. needs to leave no doubt about its allies and enemies.

“My overriding philosophy relative to national security and foreign policy is an extension of the Reagan philosophy. Peace through strength,” Mr. Cain said. The GOP presidential hopeful hesitated during an interview on Monday, saying he disagreed with President Obama on Libya, then saying he likely would have done the same.

“The Libya comment was a pause to gather my thoughts. I’m not going to back down from that,” Mr. Cain said.

HOUSE

Kelly won’t run in Giffords‘ place

The husband of the congresswoman recovering from a mass shooting in Arizona says he has no interest in running for her House seat if she is unable to do so.

Former astronaut Mark Kelly said Rep. Gabrielle Giffords is “still improving” and she would like to run for another term. Mr. Kelly told ABC’s “Good Morning America” his job is to “make sure she can get better so she can go back to her career.”

Mr. Kelly said his wife is working on “just stringing her sentences together” and that viewers “didn’t see that so much” during Monday night’s taped ABC interview. He said, “It’s going to happen.”

Mr. Kelly said his wife “hasn’t made the decision yet” whether to seek another term, but that “she’ll know” when the time is right.

FHA

Bargainers agree to raise size of backed loans

Congressional bargainers have agreed to increase the size of mortgages insured by the Federal Housing Administration in a compromise being hailed by the housing industry but criticized by conservatives.

Under the deal by House and Senate negotiators, the FHA would be able to insure mortgages worth up to $729,750 in expensive regions of the U.S. for the next two years. By law, that ceiling had dipped to $625,500 on Oct. 1.

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