Nasrallah's Bullshit! He brought all the desruction to Lebanon and he did not win.
This is dangerous as it can lead to Miscalculation and more Violence and Destruction.
Hezbollah head hails resignation, from BBC
Sheikh Nasrallah told his movement's al-Manar TV in Lebanon: "Any of them that don't resign will be forced out."
Gen Halutz said he was taking responsibility for the failures of the Israeli military campaign.
Hezbollah's capture of two Israeli soldiers in July, and killing of eight others, sparked 34 days of fighting.
A UN-brokered truce ended the conflict, in which more than 1,200 people died.
Long shadow
Sheikh Nasrallah said of the resignation: "When I heard the news, I was happy. Since the end of the war we had been expecting Halutz to resign and [Defence Minister Amir] Peretz and [Prime Minister Ehud] Olmert to follow him."
He added: "It's the first war that Israel has lost and in which it's failed to achieve its objectives."
BBC Arab world regional editor Karen O'Brien says although the conflict ended six months ago it still casts a long shadow over both Israeli and Lebanese internal politics.
The opposition in Lebanon, with Hezbollah at the forefront, has been carrying out daily protests against Prime Minister Fouad Siniora.
It is demanding the formation of a new administration in which its allies have the power of veto.
Sheikh Nasrallah's address comes the week before international donors discuss whether to approve billions of dollars in aid for Lebanon.
Our correspondent says those donors will be looking to Lebanon's politicians from all parties for reassurance that political tensions will not derail their plans for Lebanon's reconstruction.
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