Layoffs Introduce a College Town to Uncertainty

One of the most popular lunch spots on a small downtown strip here is a place called Lou's, a 62-year-old diner with a checkerboard linoleum floor, a dessert case filled with diet-busting baked goods, and, since this fall, a bailout special on the menu. On a recent day, it was a generous serving of meatloaf, with mashed potatoes and corn, for $6.95.

"They're bailing out everyone in Washington and New York," says Toby Fried, a man with a voice like a foghorn and an easy laugh who has

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