Morning Edition from NPR

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STEVE INSKEEP, HOST:

And today's last word in business is Twinkies in trouble.

(SOUNDBITE OF COMMERCIAL)

UNIDENTIFIED MAN: Ever wonder how they get that creamy filling into the middle of a Twinkies cake? Well, these kids have some pretty good ideas.

UNIDENTIFIED CHILD: First, they put down the creamy filling, then they bake the cake all around.

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This is MORNING EDITION from NPR News. I'm David Greene.

STEVE INSKEEP, HOST:

And I'm Steve Inskeep. Good morning.

The United States appears to have resumed drone attacks in Pakistan, specifically in Pakistan's tribal areas, where they've been used to target militants operating along the border with Afghanistan. This strike comes after at least a six-week break in drone strikes. NPR's Julie McCarthy has just finished three years as NPR's Islamabad bureau chief. She's on the line to talk about this.

Hi, Julie.

Several decades ago, more than half the states had eugenics laws — measures that allowed governments and others to forcibly sterilize people. It was a difficult chapter for many states and now North Carolina is looking to make amends. A task force says each of the state's 2,000 living victims should receive $50,000.

As expected, GOP presidential candidate Mitt Romney won the New Hampshire primary. Texas Rep. Ron Paul clinched second place — ahead of former Utah Governor Jon Huntsman. Paul told a crowd of supporters that he was nibbling at the heels of the front-runner.

A growth of 3 percent is not bad, given all the European turmoil. But there's a downside in the report. It shows the German economy shrinking a bit at the end of 2011.

Whatever their disagreements, the presidential candidates agree on their next destination. The GOP presidential nomination fight now turns to South Carolina. The state holds is primary Jan. 21.

The Federal Reserve usually worries about interest rates and inflation. But lately, Fed officials have been focusing on housing. They've been out in public, pushing measures they think will help the housing market. David Wessel, economics editor at The Wall Street Journal, talks to David Greene about proposed changes to mortgage financing.

Mitt Romney's back-to-back wins give him powerful momentum heading into the next set of GOP contests. Ron Paul came in second in Tuesday's New Hampshire primary followed by Jon Huntsman. A week ago, Romney won the Iowa caucuses.

While the Romney campaign was celebrating, his rivals were contemplating. After wins in New Hampshire and Iowa, stopping Romney's march to the nomination has become much harder. Still, Tuesday's results in New Hampshire mean different things to different candidates. For Ron Paul, second place is validation that his message is attracting new voters and young people. But for others, the primary raised basic questions of viability.

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Now, for some perspective, New Hampshire accounts for a tiny portion of the delegates Republicans are competing for – just 5 percent. Bigger states later on in the election season will award many more delegates. But voters in the Granite State feel their votes serve as an important vetting process, a springboard for candidates. And NPR's Andrea Seabrook spent election day talking to those voters.