September 2009

CalSTRS CIO expects more real estate investment trust write-downs

September 29, 2009

The real estate sector remains in deep freeze, characterised by a lack of transactions even as the stock market rally continues unabated with the S&P 500 up 57% since March 9

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Lloyd Chapman: Alabama Congressman Introduces Bill to Give Small Business Funds to His Top Campaign Contributors

September 29, 2009

On September 14, 2009, Alabama Congressman Parker Griffith (D – AL5) introduced a new bill, H.R. 3558, which will allow some of his largest campaign contributors to land billions of dollars in federal small business contracts. ( http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3558ih.txt.pdf ) Boeing and Northrop Grumman are two of Congressman Griffith’s largest campaign contributors. If H.R. 3558 becomes law, Boeing, Northrop Grumman and hundreds of Fortune 1000 firms will be able to hold on to billions of dollars in federal contracts earmarked for middle class firms. ( http://tiny.cc/mp06p ) Information from the Federal Procurement Data System-Next Generation (FPDS-NG) indicates the Obama Administration counted billions of dollars in contracts to many of the largest firms in the world towards the government’s 23 percent small business contracting goal. During fiscal year (FY) 2008, the Obama Administration included over $775 million in awards to Textron in the government’s small business data. Textron is a Fortune 500 firm with 43,000 employees and annual revenue of over $14 billion. In addition to Fortune 500 firms in the U.S., billions of dollars in contracts awarded to corporate giants in Italy, England, France, Holland and Korea were included in the Obama Administration’s small business statistics. The American Small Business League (ASBL) estimates that legitimate small businesses are losing over $100 billion a year in federal small business contracts as a result of the abuses. The ASBL has won a series of lawsuits against several federal agencies, which have forced the release of thousands of pages of data indicating that corporate giants in the U.S. and abroad have received hundreds of billions of dollars in federal small business contracts for over 10 years. ( http://www.asbl.com/aboutus.html ) The Small Business Administration Office of Inspector (SBA OIG) condemned the diversion of federal small business contracts to corporate giants in Report 5-15, referring to the abuses as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” ( http://www.asbl.com/documents/05-15.pdf ) If Congressman Griffith’s bill becomes law, billions of dollars in federal small business contracts could be diverted to Fortune 500 firms, corporate giants around the world, and their subsidiaries indefinitely. In May of 2009, Congressman Hank Johnson (D – GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009, which will have the opposite effect of H.R. 3558. The ASBL played a major role in the drafting of H.R. 2568. The bill will halt the flow of federal small business contracts to large business. The ASBL estimates H.R. 2568 will redirect over $100 billion a year back to legitimate small businesses and deliver the largest economic stimulus for middle class firms to date. ( http://www.asbl.com/documents/hr2568.pdf )

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Victory by Overwhelming Majority for CNS Response Board at Annual Meeting of Stockholders

September 29, 2009

CEO George Carpenter Lauds Clear Mandate From Shareholders

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Victory by Overwhelming Majority for CNS Response Board at Annual Meeting of Stockholders

September 29, 2009

CEO George Carpenter Lauds Clear Mandate From Shareholders

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Real estate requires real reform

September 29, 2009

up to 80 percent of their income to purchase homes, an overly high level that can easily cause debt crisis, according to research by Vietnam Report on Vietnam?s real estate sector in 2009-2010. Vietnam Report, a well-known market survey and business

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Real estate requires real reform

September 29, 2009

up to 80 percent of their income to purchase homes, an overly high level that can easily cause debt crisis, according to research by Vietnam Report on Vietnam?s real estate sector in 2009-2010. Vietnam Report, a well-known market survey and business

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Evil Liu Steals Breast Milk, Torments Peasants in Mao-Era Art in Frankfurt

September 29, 2009

Review by Catherine Hickley Sept. 30 (Bloomberg) — Her face contorted in a scream, a woman stretches out in vain for the baby snatched from her arms. She is held back by a henchman serving the evil landlord Liu Wencai, in a scene from one of China’s best-known works of art. If Chinese communist propaganda is to be believed, opium- addled Liu drank the milk of mothers and left their infants deprived of food; he cheated his farmers on their rent and forced them to sell their children in order to survive. I know of no reports he ate the babies, but you get the picture. Though Liu is a historical figure, he is so controversial in China that independent study of his biography is impossible. Bony and disdainful in fine robes, Liu is the central figure in “Rent-Collection Courtyard,” a powerful narrative told in a series of tableaux consisting of 114 life-sized sculptures. The work was created by Chinese artists in 1965, before Mao Zedong proclaimed the Cultural Revolution. A 1970s fiber-glass replica of the clay original, which cannot be moved from its Sichuan museum home, is on show in the west for the first time at the Schirn Kunsthalle in Frankfurt, where China is guest of honor at this year’s Book Fair . Familiar to just about every Chinese person who grew up in the 1960s and 1970s, “Rent-Collection Courtyard” is hard to dismiss as mere Maoist propaganda. For a start, it was popular, attracting swarms of visitors when it was first completed. Crowds lined up overnight in sub-Siberian temperatures to see a copy in Beijing. Glorifying Mao Its story since then mirrors modern Chinese history. Considered not sufficiently radical during the Cultural Revolution, it was adapted to glorify peasant heroes and Mao himself. A copy was sent to Albania and the North Vietnamese wanted one, too. Since Mao’s demise in 1976, it has fallen into obscurity, though contemporary Chinese artists frequently refer to it in their work. “Rent-Collection Courtyard” was also revolutionary in the artistic sense, giving the previously neglected medium of sculpture a new status in Chinese art. Beyond those reasons and perhaps most surprisingly given its political intent, it is both moving and dynamic as a work of art, lasting evidence of the experimental enthusiasm and commitment of the artists involved. They modeled their figures on local people and spoke to those who had endured Liu’s reign, creating a cast of realistic characters to weave a story of exploitation and tragedy. Each figure has a slot in that story. The spectrum of suffering in the faces and poses of the peasants ranges from slumped despair through blank-eyed, numb resignation, from fearful anguish to clenched-lipped outrage. Thuggish Liu lackeys wield sticks or gaze scornfully at the pain around them. This differs from Stalinist art, for example, where pain and the enemy were never depicted. That doesn’t mean it’s subtle, but it’s powerful. Debts to Liu The first scene shows peasants arriving with grain to pay the rent, watching helplessly as their offerings are decimated to ensure all remain in debt to Liu. A man who protests is threatened with a stick: a skinny boy flinches in terror. Then the grain is measured and punishments meted out for shortfalls. In the third scene, “Accounting,” the farmers confront Liu accusingly as his henchmen protect him from their anger. But the peasants are powerless: The howling woman is separated from her baby; a man clutches the receipt for a granddaughter sold to slavery; a woman behind bars converses bitterly with her daughters. Communist Kitsch? It’s only in the final tableau that an element of communist kitsch emerges: The farmers leave the yard, suddenly robust and heroic with the resolute faces of revolutionaries. The message is that they will return — next time, with weapons. This scene was embellished in the Albanian version and Cultural Revolution-era copies to show the peasants dressed as soldiers, clutching guns and communist paraphernalia, with a portrait of Mao at the center of a golden halo. Curator Esther Schlicht said the Chinese authorities were “ambivalent” about lending the work to Germany. With capitalism back in vogue in China, there were fears that it may be reinterpreted for the modern day, she said. “One could read it as topical,” Schlicht said in an interview at the Schirn. “You see a corrupt landlord who has built a dominion in his province — this is currently a big subject in China. Then there is the exploited rural population. Those former farmers are now the migrant workers who go to the big booming cities to work in terrible conditions.” Viewed in that light, maybe the final scene showing determined, vindictive peasants is not so kitschy after all. Just downright scary. “Kunst fuer Millionen” (Art for the Millions) is showing at Frankfurt’s Schirn through Jan. 3, 2010. For more information, go to http://www.schirn-kunsthalle.de . ( Catherine Hickley is a writer for Bloomberg News. The opinions expressed are her own.) To contact the reporter on the story: Catherine Hickley at chickley@bloomberg.net .

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Dolphins Lose Pennington for Season With Injury, Add Thigpen From Chiefs

September 29, 2009

By Erik Matuszewski Sept. 29 (Bloomberg) — The Miami Dolphins said quarterback Chad Pennington will miss the rest of the season because of a shoulder injury and acquired Tyler Thigpen in a trade with the Kansas City Chiefs to add depth at the position. Pennington, who had surgery on his right shoulder in 2004 and 2005 while with the New York Jets, was injured two days ago in a 23-13 loss in San Diego. Pennington was put on the injured reserve list today, ending his season. Chad Henne , a second-round draft pick in 2008, will take over as the starting quarterback for the 0-3 Dolphins. Rookie Pat White was the only other quarterback on Miami’s roster until today’s acquisition of Thigpen for an undisclosed selection in the 2010 National Football League draft. The 25-year-old Thigpen was a seventh-round pick in 2007 and started 11 games for the Chiefs last season, passing for 2,608 yards, 18 touchdowns and 12 interceptions. To contact the reporter on this story: Erik Matuszewski in New York at matuszewski@bloomberg.net

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Japan’s Industrial Production Rises for a Sixth Month on Stimulus Spending

September 29, 2009

By Jason Clenfield Sept. 30 (Bloomberg) — Japanese manufacturers increased production for a sixth month in August, capping the longest winning streak in 12 years, as emergency spending by governments worldwide rekindled global trade. Factory output rose 1.8 percent last month after climbing 2.1 percent in July, the Trade Ministry said today in Tokyo. Economists surveyed by Bloomberg forecast a 1.8 percent gain. To contact the reporter on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net

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Vietnam’s Premier Urges `Rapid’ Rescue, Aid as Typhoon Death Toll Hits 34

September 29, 2009

By Van Nguyen and Aaron Sheldrick Sept. 30 (Bloomberg) — Vietnamese Prime Minister Nguyen Tan Dung urged “rapid” rescue and relief for central Vietnam after Typhoon Ketsana left at least 34 people dead and 10 missing yesterday. Local governments have to use all resources available to search for those reported missing, resettle people in flooded areas and assist those affected by the typhoon, Dung said in a statement marked as an “ urgent letter ” and posted on the government’s Web site late yesterday. Ketsana made landfall in the central provinces of Quang Nam and Quang Ngai yesterday afternoon, Nguyen Xuan Dieu , head of the National Committee for Flood and Storm Control , said by phone from Hanoi. At least 34 people have been reported dead and 10 missing as of 8 p.m. local time yesterday, Dieu said. The storm left more than 240 people dead in the Philippines. “Water levels are rising fast and more and more areas are flooded,” said Dieu. Army forces will try to approach isolated areas as quickly as possible and more helicopters will join rescue and relief efforts this morning, he said. More than 370,000 people in the region were evacuated before the storm hit, according to a statement on the government’s Web site yesterday. More than 85,000 houses and thousands of hectares of rice fields and other crops have been damaged. Power for Refinery The prime minister also asked state-owned Electricity of Vietnam to repair the transnational power grid, which was damaged by the storm, to ensure electricity supply for the central region, especially Dung Quat oil refinery in Quang Ngai, according to the statement. Dung Quat refinery, the Southeast Asian nation’s first refinery, has been under repair and was scheduled to resume operations Sept. 30 after a six-week shutdown. State-owned Vietnam Airlines Corp. plans to resume and increase the number of flights from Hanoi and Ho Chi Minh City to the central provinces today after some flights to the area had been canceled since Sept. 28 because of the storm, according to another statement on the government’s Web site. Ketsana crossed Luzon in the Philippines as a tropical storm Sept. 26, causing floods in the capital, Manila, and surrounding areas after dumping a month’s worth of rain in a six-hour period. More than 1.8 million people in the country were affected by the floods and 374,800 people are in evacuation centers, the Philippines disaster council said. Thirty-seven people are missing. ‘State of Calamity’ The Philippine government declared a “state of calamity” for the Manila metropolitan region and other parts of Luzon island as well as Mindoro island to the south. Vietnamese provincial authorities need to ensure people have access to sufficient food, clothing and medicine, and must prevent outbreaks of disease in the storm’s aftermath while also resuming production, the prime minister said in his statement. Vietnam’s health ministry is concerned about a further spread of swine flu virus, formally known as H1N1, in the area, according to a statement on its Web site. The country has reported 15 swine flu deaths and 8,853 cases as of 5 p.m. yesterday since the first case was confirmed four months ago. Before it hit Vietnam, Ketsana was a Category 2 storm, the second-weakest on the five-step Saffir-Simpson scale of intensity. A Category 2 storm has maximum sustained winds of 96 mph (154 kph) to 110 mph and is capable of “widespread damage,” according to the U.S. National Hurricane Center’s Web site . One of two tropical depressions that formed east of the Philippines strengthened into Tropical Storm Parma overnight, the U.S. center said. Parma was southwest of Guam. Ketsana, the 17th storm of the season, is the name of a tree in Laos, according to the Hong Kong Observatory, which lists names for Pacific storms on its Web site. To contact the reporters on this story: Van Nguyen in Ho Chi Minh City at vnguyen23@bloomberg.net ; Aaron Sheldrick in Tokyo at asheldrick@bloomberg.net .

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At Least 19 Killed on Samoan Islands After 8.0 Earthquake Triggers Tsunami

September 29, 2009

By Gavin Evans and Tracy Withers Sept. 30 (Bloomberg) — A tsunami unleashed by the largest earthquake in two years swept coastal areas of Samoa and American Samoa today, killing at least five people and flattening villages. The earthquake, with a magnitude of at least 8.0, struck shortly before 7 a.m. local time about 122 miles (196 kilometers) southwest of Apia, the capital of the independent island nation of Samoa, according to the U.S. Geological Survey. Tsunami warnings were issued for Fiji, New Zealand, Tonga, the Cook Islands and 16 other South Pacific countries. Three people are dead in Samoa, the British Broadcasting Corp. reported, citing local officials. At least two people died after the ground floor of the Federal Building in Pago Pago, American Samoa, was flooded, Gerard Fryer, a geophysicist with the Pacific Tsunami Warning Center, told Radio New Zealand. A 5-foot (1.5-meter) tsunami was reported at Pago Pago, on the northern side of American Samoa, the U.S. Pacific Tsunami Warning Center said. Homes in villages on the southern coast of the Samoan island of Upolu were washed away and a 4-year-old child was missing after a boat was swamped, Radio New Zealand reported. “We also received an early report this morning that the entire Manono village on Manono Island has totally gone underwater,” Radio Polynesia journalist Jonah Tui Le Tufuga told Radio New Zealand. “Luckily, most of the residents made it up to higher ground before the actual tsunami hit.” Tsunami Drills Cars and parts of houses were floating in the sea, Tufuga said. Tsunami drills earlier in the year may have helped reduce the death toll, he said. Coastal villages evacuated to higher ground after the quake. The injury count is expected to rise as casualties are brought in from outlying regions, Lemalu Fiu, a doctor at Samoa’s main hospital in Apia, told the BBC. “Our house has already been taken by the tsunami,” Theresa Falele Dussey told Radio New Zealand from hills above Apia, where people took shelter. “Some of the houses and cars next to our village have already been taken by tsunami as well.” A tsunami warning and watch was canceled for the South Pacific region about four hours after the quake hit, the Pacific Tsunami Warning Center said in an e-mailed statement. Tidal waves were observed in six locations, with the largest registered in Pago Pago, the center said. Shocked by Jolt Residents of Samoa , shocked by the strength of the jolt, heeded warnings of local police and moved inland, Radio New Zealand’s Samoa correspondent, Tipi Autagavaia, said on a broadcast. “My kids were preparing to go to school and were all crying and screaming,” he said in the broadcast. “It was a big, big shock to most people, because it is the first time they have experienced such a very strong earthquake.” The tsunami warning center reported the quake had a magnitude of 8.3, while USGS revised it to 8.0 from an initial reading of 7.9, the USGS said. The quake was followed by five temblors ranging from 5.0 to 5.8, in the Samoa Islands region, the Cook Islands and Tonga, the USGS said. There have been fewer than 90 earthquakes of magnitude 8.0 or greater around the world since 1900, according to the USGS’s Web site. Before today, the last one was a temblor of intensity 8.5 that struck in September 2007 off Southern Sumatra, Indonesia, and killed 25 people. To contact the reporter on this story: Gavin Evans in Wellington at gavinevans@bloomberg.net : Tracy Withers in Wellington at twithers@bloomberg.net

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Fortescue Misses Its $6 Billion China Deadline to Secure Expansion Funding

September 29, 2009

By Rebecca Keenan and Jesse Riseborough Sept. 30 (Bloomberg) — Fortescue Metals Group Ltd., Australia’s third-largest iron ore exporter, missed today’s deadline to raise $6 billion in funding from Chinese lenders to finance expansion and ease a cash squeeze. “Fortescue intends to continue working co-operatively” with the China Iron & Steel Association, Perth-based Fortescue , controlled by billionaire Andrew Forrest , said today in a statement. The deadline was part of the company’s funding and pricing agreement last month with CISA and Baosteel Group Corp. China, the world’s biggest buyer of the ore, has invested in more than $56 billion of projects globally to try to reduce dependence on Vale SA , Rio Tinto Group and BHP Billiton Ltd., the world’s three-biggest exporters. Fortescue plans to use the funds to more than double exports by 2012. Fortescue dropped 3.9 percent to A$3.75 at 10:22 a.m. in Sydney on the Australian stock exchange. To contact the reporters on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net Jesse Riseborough in Melbourne at jriseborough@bloomberg.net

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Morgan Stanley’s Mack Proposes Single Regulator to Oversee Banks Worldwide

September 29, 2009

By Dakin Campbell Sept. 29 (Bloomberg) — Morgan Stanley Chief Executive Officer John Mack , who struggled to return the bank to profitability amid the financial crisis, said a regulator should oversee financial institutions worldwide. “A better system would be one uber-regulator,” Mack said today in an interview for Bloomberg Television’s “Conversations with Judy Woodruff ,” parts of which will air tomorrow. “We do need an overall systemic-risk management that everyone buys into. It’s not a U.S. systemic boundary — it’s a global systemic risk manager.” A global regulator would ensure that U.S. banks aren’t subject to tighter regulations than the rest of the world, Mack said. A push for regulation during the financial crisis has faded as the administration of President Barack Obama pursues other tasks, he said. Morgan Stanley and Goldman Sachs Group Inc. converted to bank holding companies one week after Lehman Brothers Holdings Inc. , Merrill Lynch & Co. and American International Group Inc. collapsed or were rescued in September of last year. Less than a month later, Morgan Stanley took $10 billion from the U.S. government as part of the Troubled Asset Relief Program. It has since paid back the government. The full interview will be shown on Bloomberg Television at 6 p.m. New York time on Oct. 2. To contact the reporter on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net

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Japan Industrial Output Rises 1.8%, Longest Stretch of Gains in 12 Years

September 29, 2009

By Jason Clenfield Sept. 30 (Bloomberg) — Japanese manufacturers increased production for a sixth month in August, capping the longest winning streak in 12 years, as emergency spending by governments worldwide rekindled global trade. Factory output rose 1.8 percent last month after climbing 2.1 percent in July, the Trade Ministry said today in Tokyo. Economists surveyed by Bloomberg forecast a 1.8 percent gain. To contact the reporter on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net

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Bank of America, 3 Other Banks’ FDIC Fees May Total More Than $10 Billion

September 29, 2009

By David Mildenberg Sept. 29 (Bloomberg) — The Federal Deposit Insurance Corp.’s plan to bolster its reserves may cost Bank of America Corp. and three of the largest U.S. banks more than $10 billion. Bank of America , the biggest U.S. lender by deposits, may owe $3.5 billion under the FDIC proposal for banks to prepay three years of premiums, based on the lowest assessment rate multiplied by the bank’s $900 billion in second-quarter U.S. deposits. “This seems like a very hefty amount,” said Tim Yeager , a finance professor at the University of Arkansas and former economist at the Federal Reserve Bank of St. Louis. “The FDIC’s projections of future losses are pretty severe, and they are trying everything they can to avoid tapping the Treasury.” U.S. bank premiums range from 12 cents per $100 in deposits for the safest lenders to 45 cents for banks the U.S. considers risky, said Chris Cole, senior regulatory counsel for the Independent Community Bankers of America. The FDIC proposed asking banks to pay premiums for the fourth quarter and next three years on Dec. 30. The fees will raise $45 billion. The FDIC is required by law to rebuild the fund when the reserve ratio, or the balance divided by insured deposits, falls below 1.15 percent. It was 0.22 percent on June 30 and will sink to a deficit tomorrow. The fund, drained by 95 bank failures this year, had $10.4 billion at the end of the second quarter. The fund will erase its deficit by 2012, the FDIC said today. Wells Fargo, JPMorgan Based on the current assessment and each bank’s deposits, Wells Fargo & Co.’s fee may be $3.2 billion based on its $814 billion in deposits, JPMorgan Chase & Co. may pay $2.4 billion and Citigroup Inc. $1.2 billion. The estimates exclude the FDIC’s plan to boost the assessment rate by 3 cents per $100 in deposits in 2011 or the agency’s assumption that bank deposits will increase by 5 percent annually. Banks won’t record the premiums as an expense on Dec. 30, making the prepayments more palatable, Gary Townsend , chief executive officer of Hill-Townsend Capital LLC, said on a Bloomberg TV interview. The expense for prepaying will be recorded during the next three years, lessening the impact on earnings, said Brad Milsaps , an analyst at Sandler O’Neill and Partners LLP in Atlanta. “I don’t think it’s going to be a problem overall, though for the stressed banks that need cash, it could be,” he said. Banks will record a cost when the payments would be due. Bank of America reported $140 billion in cash as of June 30, while JPMorgan, Wells Fargo and Citigroup each had more than $20 billion, according to regulatory filings. Spokesmen for the four banks declined to estimate their costs. “It’s obviously going to be big because we are a big bank,” JPMorgan spokesman Tom Kelly said. Fund Deficit Regulators shut 120 banks in the past two years and the FDIC said the insurance fund to run at a deficit until at least 2012. Banks failures through 2013 may cost $100 billion, an increase from $70 billion estimated in May, with half the expenses already incurred, the FDIC said. The four banks paid a combined $2.28 billion in a special assessment for the FDIC earlier this year, according to regulatory filings. The agency raised $5.6 billion from that fee, which was based on assets rather than deposits, Cole said. The agency rejected options for a second special fee or borrowing from the Treasury Department. To contact the reporter on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net

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Wilbur Ross, Related bid on Corus assets

September 29, 2009

Insurance Corp (FDIC) is running the auction, which is being watched for its potential impact on the commercial real estate market. Ross, who founded his firm in 2000 and is known for distressed investing, said the FDIC was offering financing for the

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Colonial Properties launches share offering

September 29, 2009

Colonial Properties Trust said Tuesday it has opened a public offering of 9 million common shares. The Birmingham-based real estate investment trust plans to use the proceeds to repay debt owed under its credit revolver and for general expenses. The

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Colonial Properties launches share offering

September 29, 2009

Colonial Properties Trust said Tuesday it has opened a public offering of 9 million common shares. The Birmingham-based real estate investment trust plans to use the proceeds to repay debt owed under its credit revolver and for general expenses. The

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Dubai banks' real estate exposure seen at 23%

September 29, 2009

Meet worldwide manufacturers, wholesalers & importersin Alibaba now! UAE. The exposure of Dubai banks to the troubled real estate sector is 23%, the second highest in the GCC after Bahrain Khaleej Times reported, citing a report by Kuwait Financial

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Dubai banks' real estate exposure seen at 23%

September 29, 2009

Meet worldwide manufacturers, wholesalers & importersin Alibaba now! UAE. The exposure of Dubai banks to the troubled real estate sector is 23%, the second highest in the GCC after Bahrain Khaleej Times reported, citing a report by Kuwait Financial

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Reuters Summit-Wilbur Ross, Related bid on Corus assets

September 29, 2009

$4 bln WLR Recovery Fund IV invested * Related partners on Corus include Lubert-Adler -source (Adds comment from distressed real estate expert) NEW YORK (Reuters) – Billionaire investor Wilbur Ross said Tuesday he has teamed up with Barry Sternlicht’s

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Chip Conley: JdV > GDP? Sarkozy Stimulates Sarcasm

September 29, 2009

As the world’s leaders descended on the burg of Pitts, that rascal Sarkozy handed out a French-made pair of 3-D glasses. Upon the one-year anniversary of the financial meltdown, the French president suggested that we’ve been evaluating the financial world with one eye closed and have been distracted by the “cult of statistics” that traditional economists feed us. Now that his Nobel-winning duet of economists (Joseph Stiglitz and Amartya Sen) have delivered their report that suggests France adopt a “Joie de Vivre” index, this conservative president has started sounding like a leftist or at least someone who spends a little too much time reading Sartre in Left Bank cafes. And, of course, the conventionally wise around the world chortled about how naïve this diminutive president could be since happiness and joie de vivre aren’t really measurable. In fact, for most economists, if you can’t measure something accurately, it ain’t real. Maybe that’s why economists are such a glum bunch. What is the recipe for success for a country? We’ve been worshiping at the altar of Gross Domestic Product for nearly a half-century, yet one observer recently suggested, “If we all put bars on our windows and buy face masks to deal with pollution, guess what? GDP goes up. That doesn’t mean we are better off.” In 1968, Robert Kennedy suggested that GDP “counts napalm and nuclear warheads” and, yet, here we are forty years later, just starting to ask the blasphemous question of “what is real?” Economist Joseph Stiglitz suggests, “What we measure affects what we do. If we have the wrong measures, we will strive for the wrong things.” There was a time when having a chicken in every pot and two cars in every garage was our real measurement of success in this country, but maybe it’s become our measure of excess in the past few decades. First, Bhutan…now, France. Are we on the verge of a great revolution in which political leaders redefine what’s real and what’s measurable? Forty national governments are studying or adapting Bhutan’s Gross National Happiness Index to imagine how they could create the conditions for their people to have greater well-being. As Sarkozy says, “If leisure has no accounting value because it’s essentially full of non-market activities like sport or culture, we put productivity above human fulfillment.” Take it from a Frenchman, they know their leisure! Well, I know something about Joie de Vivre, myself, as it’s the impractical name I chose for my company twenty-three years ago. Our mission statement (“creating opportunities to celebrate the joy of life”) sounds straight out of the French socialist playbook, yet this mantra has allowed us to grow into the country’s second largest boutique hotel company. Miraculously, making employees and customers happy creates beaucoup bucks for our hotel investors (although less so in times like these). And, we measure all kinds of things that our traditional hotelier counterparts don’t typically fathom: our employees’ sense of meaning and connection in the workplace, the number of employees who take sabbaticals (all our salaried employees get a one-month paid sabbatical every three years), our customers’ sense of feeling they are in their perfect habitat in our hotels, and the amount of money we raise for grassroots community organizations. If you were president, what key metrics would you try to evaluate to determine whether you were leading a successful country? Here’s some of my suggestions, but I look forward to reading yours: • % of High School Grads who go to College • % of the Population that volunteer their time or donate financially to non-profits • Commute time (obviously, with higher rankings for shorter commutes) • Legal immigration demand (this has historically been an important measure of America’s greatness) • Capacity for innovation (either through measuring patents or the like) • Of Hours Worked/GDP (our productivity is at the expense of our leisure) Chip Conley is the Founder and CEO of Joie de Vivre Hospitality and the author of PEAK: How Great Companies Get Their Mojo From Maslow.

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Real Estate Investment World Brasil 2010

September 29, 2009

local developers, fund managers and institutional investors ? Explore residential, retail, office, industrial and hospitality sectors ? Spot distressed opportunities ? Reveal new strategies to value assets and measure risk ? Cover non-traditional

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Sarah O’Leary: If You Want Sales, Don’t Discount Marketing

September 29, 2009

“You know, the first place to cut is marketing.” The devaluing of marketing seems an acceptable mantra during challenging economic times, as if strategies that promote sales are expendable sprinkles on top of the corporate cake. In truth, the lack of effective marketing destabilizes brands and can lead to dead silence at the register. The time to be committed to the consumer sell, from the corporate campus to Wall Street to Main Street, is even more critical when the financial climate is tenuous. If you doubt the importance of consumer marketing, ask some simple questions: When consumers don’t know about or care about a product/service, does it sell? If consumers know about a product yet no one is persuaded to buy it, does it sell? When the retailer doesn’t support a product, will it move from shelf to shopping cart? Lastly, if a company doesn’t want to invest in the sell, why would it bother producing it or should potential shareholders consider investing in it? No product sells itself. Without the support of targeted, strategic marketing, the best of corporate intentions may be wasted efforts. Not always within the cross hairs of Wall Street analysts, a corporation’s marketing initiatives are crucial when weighing the validity of potential investments in the company. It is imperative that marketing plans be consistently scrutinized by seasoned experts. Like most other professions, smart marketers can see the strengths and limitations of fellow marketers’ plans. This understanding is tantamount to successful analysis, and the need for such expertise should not be taken lightly. Analyzing marketing strategy is a not a trip to the shallow end, but a deep dive by trained professionals. The questions asked by investors and shareholders must go beyond who is the new CMO or what will be the next hot ad campaign. It’s not simply the percentages of spend in general terms, nor is it just past results and a broad stroke glimpse into the future. It’s a constant, comprehensive study, not something that simply needs to be considered at quarterly or annual meetings. If a publicly traded corporation loses a factory to fire, stock prices would fall accordingly. However, if a corporation wastes $100 million on a bad ad campaign, average investors may not realize it because of the way information is presented to them. It is, most certainly, difficult to quantify many forms of advertising and marketing. However, it is not impossible to measure a great deal of it. Expert vigilance is key to successful investment, as it is critical to protecting the investor’s profit. At the beginning of the Recession, I spoke with an old friend who was working on the marketing business for a publicly traded cruise line. One of the cruise line leaders, citing the economy and his personal perspective regarding the expendability of advertising and promotion, canceled all of the line’s advertising and promotional efforts. He was convinced, it seemed, that the company would magically generate sales with even less support than the lean initiatives that had been in place. Instead, the strategy (or lack there of) severed much of the company’s exposure in the marketplace and arguably cost the company sales in an already tough economy. Surprisingly, no one seemed to question of the move. Most likely, it was because no one on Wall Street or those holding shares even knew the move was made. You don’t need to be an economic scholar to understand the basics of supply and demand. If a consumer product falls in the retail forest and no one cares, the register won’t make a sound. And in this economy, we need to make as much smart noise as possible.

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Sunny Day Real Estate: Diary (Creative Loafing Atlanta)

September 29, 2009

By Chad Radford Blame Sunny Day Real Estate for emo’s rise to commercial accessibility. With its 1994 debut Diary, the Seattle foursome gave a pretty boy makeover to a genre that previously resided in the tortured noise and obscurity of hardcore. From the passionate swoon of “Song About an Angel” to the shadowy piano waltz of “Phuerton Skuerto,” SDRE spills its guts in an outpouring of …

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Steve Parker: Biggest-ever Toyota Recall Announced; 3.8 Million Cars and Trucks

September 29, 2009

Toyota has announced the largest recall of vehicles in its US history. According to the Associated Press, “Toyota says it will recall 3.8 million vehicles in the United States to address problems with a removable floor mat that could interfere with the vehicle’s accelerator and cause a crash. The company says it will be the largest recall in its history. Owners could learn about the safety campaign as early as next week. 2004 Prius Toyota and the government warned owners of Toyota and Lexus vehicles about safety problems tied to the removable floor mats. They say the mats could interfere with the vehicle’s accelerator and cause a crash. The recall will affect 2007-2010 model year Toyota Camry, 2005-2010 Toyota Avalon, 2004-2009 Toyota Prius, 2005-2010 Tacoma, 2007-2010 Toyota Tundra, 2007-2010 Lexus ES350 and 2006-2010 Lexus IS250 and IS350. Owners should take out the floor mats on the driver’s side and not replace them. When Toyota develops a “fix” for the problem, the affected cars and trucks will be recalled to dealerships for replacement or retrofitted floor mats. Toyota’s previously largest recall was about 900,000 vehicles in 2005 to fix a steering issue.” (end AP quote) Lexus IS250 at the 2008 Paris Auto Show Automotive News also reported: “NHTSA said it issued the warning because of continued reports of vehicles accelerating rapidly after drivers released the accelerator. “This is an urgent matter,” U.S. Transportation Secretary Ray LaHood said in the statement. “We strongly urge owners of these vehicles to remove mats or other obstacles that could lead to unintended acceleration.” The reported acceleration problems appeared to be related to with unsecured mats, the configuration of the accelerator pedal and the process for shutting off engines in some vehicles that have keyless ignitions. Toyota recalled in September 2007 an all-weather floor mat from some 2007 and 2008 Lexus ES 350 and Toyota Camry vehicles because of similar problems, NHTSA said.” (end Automotive News quote) The Los Angeles Times reported: “Last month, a San Diego man and three passengers were killed in a high-speed crash that the driver, in a call to 911 prior to the accident, said was being caused by a floor mat wedged into the accelerator. “A stuck open accelerator pedal may result in very high vehicle speeds and make it difficult to stop the vehicle, which could cause a crash, serious injury or death,” the company said in a statement. Toyota said the vehicles would be recalled once it develops a remedy to the problem. Until then, the automaker said owners of the affected vehicles should take out any removable driver’s side floor mats and not replace them with any other floor mat.” (end LA Times quoute) It’s not clear when Toyota and Lexus dealers will replace or retrofit the removed floor mats. Lexus RX This recall comes on the heels of another large Toyota recall announced last month, when the company launched a voluntary Safety Recall with the National Highway Traffic Safety Administration (NHTSA) involving approximately 95,700 Toyota and Scion vehicles sold in the United State for a problem affecting vehicles in cold-weather parts of the country which could cause increased braking distances. Recalls are the bane of all carmakers; they are embarrassing, expensive and often remain in the public’s consciousness for a long time. In a recall done in concert with or at the order of the government, all owners of the affected vehicles must be contacted by the carmaker, an expensive proposition in itself, and all repair work must be done by authorized dealers at no cost whatsoever to the consumer. Carmakers often issue “TSBs” or Technical Service Bulletins to their dealer repair departments which list defects the manufacturer has found with vehicles, but which have not risen, at that point, to the level of necessitating an official recall. 2007 Toyota Camry These TSBs are sometimes called “secret recalls” because the manufacturer does not have to make the information available to all affected vehicle owners nor fix the problem for free when a vehicle with the problem comes in for service. Owners usually don’t know about these TSBs and the carmaker does not have to contact owners with TSB information. If an owner does not report the specific problem described in the TSB when bringing a vehicle in for service, the dealer does not have to inform the owner or make that specific repair. This floor mat recall is a bit unusual because owners are being asked to “make a fix” right away and on their own; this tell us the government considers the problem an immediate and important safety risk. Toyota and Lexus will recall the affected vehicles to dealers when a full repair is developed. In most instances of recalls, we recommend calling an authorized dealer to check on whether or not your car is part of the recall, and, if it is, to make an appointment with the dealer so the bug can be fixed in reasonably fast time. As with all recalls, the vehicle owner pays nothing for the service performed by the dealer and the dealer can not ask for any payment. Full recall and TSB information for all cars and trucks sold in the US is available at the National Highway Traffic Safety Administration’s website, www.NHTSA.gov.

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ValCom Partners With Bid4Assets for Its Largest Televised Real …

September 29, 2009

and its MyFamilyTV broadcast network subsidiary today announced that they will be partnering with Bid4Assets, a leading online real estate auction company, to produce its largest televised real estate auction to date in a four-hour live auction show, ‘My

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ValCom Partners With Bid4Assets for Its Largest Televised Real …

September 29, 2009

and its MyFamilyTV broadcast network subsidiary today announced that they will be partnering with Bid4Assets, a leading online real estate auction company, to produce its largest televised real estate auction to date in a four-hour live auction show, ‘My

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Spending (79)

September 29, 2009

30-year fixed is averaging 5.15%. How long can it last? Sep 25 2009 | Topics: Personal Finance, Real Estate, Consumer, Mortgage, Housing Deal of the Day Everything Borrowed? 7 Subtle Wedding Savings How to spend less — without your guests knowing it.

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Middle-Class Family Living In Storage Unit After Losing Jobs

September 29, 2009

As part of the Huffington Post’s efforts to bear witness to the effects of the current economic environment on ordinary Americans, we’re rounding up some of the most compelling stories reported by local news organizations around the country. Bridget and Ed Robertson were a normal a middle-class couple from greater Phoenix, Arizona. Then, within just weeks of each other they were both laid off from jobs they’d had for years. Neither could get anything new despite hundreds of applications. They couldn’t make their car payments or pay their rent. Soon, they found themselves homeless. The Robertsons and their daughter, Sarah, were forced to move into a 12- by 25-foot storage unit supplied by a local community service organization, Save the Family Arizona, which kept them from going on the street. To make matters worse, Ed had a stroke in January, flooding the family with debt, and Bridget’s father passed away recently, compounding the Robertsons’ stress and anxiety. Something often overlooked about homelessness is how embarrassing it can be, how it hurts people’s dignity. The Robertsons tell Karina Bland of the Arizona Republic about the shame and guilt that comes from waiting in line at the food bank, Sarah’s fear that other kids at her school will find out where she lives, how she now has to stay close to home when playing because of the lack of safety of their new neighborhood. These are emotional battles that are as real as the physical problems, “I miss feeling like a man,” Ed says, choking back a sob. When he used to come home on Friday nights with a paycheck in his pocket, he felt like he was providing for his family. He’d have the guys over, and they’d sit around in the garage, talking and drinking cold beer. “When you’re getting unemployment, and things are being given to you, you’re not earning it,” he says. “I’m grateful, but I’m not earning it.” ****** DeWitt, Nebraska, a little over an hour south of Lincoln, used to be the classic mid-century industrial town: A factory hiring hundreds of workers, farms on the outskirts growing corn and wheat, picket fences and flags flying. It was a veritable Norman Rockwell painting. But the plant closed and the jobs were shipped to China, leaving an empty building and a heartbroken town, report Leslie Reed and Aaron C James of the Omaha World-Herald . Former factory workers now find themselves lost; what was once a stable and respectable living has disappeared, and picking up the pieces of a dissipated career is turning into anxiety. Workers try other jobs, some retire, and some seek to go back to school, but all options are equally vexing and none allow the remnants of a working generation to feel as comfortable — or as in control — as they once did. Janis Turner of Beatrice and Anita Oltmans of DeWitt are among those back in school after decades in the work force. Turner, a single mother who raised her four children on her Vise-Grip paychecks, is studying to become a licensed practical nurse. Oltmans, who worked 15 years at the plant, is studying agribusiness and hopes to find a job in a veterinary clinic after she graduates in December 2010. Both felt like fish out of water. “I had hardly used a computer,” Oltmans said. “I took an English comp class, and we had to send assignments in as e-mail. I didn’t know how to do any of that.” In the factory, she knew what she was doing. ****** Fewer state funds means a decrease in state services which, for the state of Maine, means that fire investigators are being pushed to the limits on their arson investigations. Those investigations have increased as result of the recession and foreclosure crisis. The state government’s money has come up short, and a number of potentially intentional fires are left unexamined. The State Fire Marshal’s office has been short on funds after its reserves were cut off to help balance the state’s budget, reports Mal Leary of the Bangor Daily News . Arson can be a sad end to financial troubles, as people try to get insurance money by destroying their own homes. On the flip-side are the thousands of homeowners who cannot afford and do not acquire home insurance, taxes of which would go towards the Fire Marshall budget. As a result, citizens suffer from a mangled system. “Our investigators are literally running from fire to fire,” State Fire Marshal John Dean said Monday. “Anyone that listens to the news or reads the paper everyday knows the numbers are up.” He said one investigator in his office has more than 70 open cases, some going back to last year. Dean said it can take a long time to complete the investigation and analyze all the forensic evidence with 12 investigators to cover the state. “It’s not unusual to have 75 people to interview in a case,” Dean said. “With no reserves, we can’t use overtime, so the backlog of cases continues to grow.” ****** Bob Jordan, of Newport Beach, California, spends his days driving around Orange County, picking up leftover food from grocery stores and restaurants to give to the less fortunate. His organization, Share Our Shelves, distributes food to homeless and financially struggling families who are worrying about keeping their bellies full. But more people made hungry by loss of jobs and a shrinking economy means that Share Our Selves has had to increase its supply and stretch its dollars to meet the demand, and the group is now distributing 40% more food than last year. Patrons come from all backgrounds, of all ages, and in all different types of clothes. Michael Miller of the Daily Pilot , followed Jordan around for a day, and provides a look into one individual committed to keeping his neighbors fed. “It’s not something that’s going to serve them the whole week,” Jordan said en route to his first stop. “It’s supplemental food. A lot of them are on food stamps and get most of their food that way.” At the same time, Jordan — and Share Our Selves’ other drivers, who make the rounds six days a week — know that every bite counts. The nonprofit gives out about 300 bags of food every day to people who can’t afford to buy it, and Jordan makes a point to refuse nothing. ****** Potatoes are the agricultural symbol of Idaho, but farmers there are worried that harsh economic times will affect their crops’ demand and put fewer potatoes on dinner plates across the nation. Danielle Grant, of Eastern Idaho and Western Wyoming’s Local News 8 , reports that there is no shortage of field hands to help farms harvest, especially among migrant workers, whose home economies are hurt worse than our own. “If you work here, you can just live. And out there [Mexico] you can’t even make it too good, so that’s why we come out here to work,” explained Nicholas Camrgo, who comes to the states to work. Plowing through the potatoes, tooling around on tractors or raking up the remains; they do whatever it takes to get the job done. “It’s kind of hard work especially when it’s cold, raining, snowing but what can you do,” Camrgo said. “Just keep on going?” asked Danielle. “Just keep on going,” he laughs. But demand is down as fewer Americans dine out. Still, many are glad to have a job, even if it doesn’t last. “This year, it’s people that have lost their job and they’re desperate for some income even if it is just for a few weeks,” said one farmer. HuffPost readers: Seen a good local story? Heard about a heroic judge, neighbor, or doctor helping people stay in their homes? Tell us about it! Email jmhattem@gmail.com .

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Real estate renews its trust in mortgages

September 29, 2009

(ABIX) Australian property trusts are expected to increasingly utilise commercial mortgage-backed securities (CMBS) to refinance their debt. Macquarie CountryWide Trust has had a positive response to its $A265m issue of three-year CMBSs, which carry a

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CIC to invest US$2b in distressed US funds

September 29, 2009

sovereign fund, is set to pour a total of US$2 billion (US$1 = RM3.49) into three US distressed asset-focused funds, including one managed by Goldman Sachs, sources said yesterday. CIC plans to invest around US$600-US$700 million each in three distressed

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CIC to invest US$2b in distressed US funds

September 29, 2009

sovereign fund, is set to pour a total of US$2 billion (US$1 = RM3.49) into three US distressed asset-focused funds, including one managed by Goldman Sachs, sources said yesterday. CIC plans to invest around US$600-US$700 million each in three distressed

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U2 Concert Fundraisers May Face Parking Nightmare

September 29, 2009

Four members of Congress have scheduled fundraisers for tonight’s U2 concert at FedEx Field, reports the Sunlight Foundation . Ticket prices for the show range from $63 to $123 , but if you go with Rep. John Shadegg (R-Ariz) it’ll cost you a $3,000 campaign contribution for one ticket or $5,000 for two. If you’d rather rock with Rep. Greg Walden (R-Ore) or Rep. Ken Calvert (R-Calif.), you’ll need $2,500 if you represent a political action committee, $1,000 if you’re on your own. Or, if you’d prefer to dance with a Dem, bring $1,000 $2,500 for New Democrat Coalition vice chair Rep. Melissa Bean’s leadership PAC. Dave McKenna of the Washington City Paper notes that there could be some parking trouble at this event. McKenna interviewed J.P. Szymkowicz, a lawyer who won a lawsuit against the Washington Redskins in 2004 over the team’s efforts to squeeze as much money out of stadium parking lots as possible. (FedEx is home turf for the ‘Skins.) “I think they had 19,000 to 21,000 spaces back then,” he says. “The lots have changed, but I think it’s about the same amount now. But you’ve got between 78,000 to 83,000 people there tonight. The clusterfuck that’s going to happen tonight is based on the fact that they don’t have enough parking spaces. It’s going to be worse because this U2 crowd won’t know what to do. A Redskins parking lot is pretty organized, because [the same people go] there every week and have since the stadium opened 10 years ago. People know where to go. Tonight, you’ll have all these young Capitol Hill people who moved to DC from Kansas and Ohio and all over. These new people will have no idea where they’re going.” Capitol Hill people, indeed!

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Fitch notes Realogy, Chesapeake Energy debt risk

September 29, 2009

CHICAGO – Fitch Ratings said Tuesday that the three issuers of junk debt most in danger of breaching lender requirements are Realogy Corp., Chesapeake Energy Corp. and Frontier Communications Co. Calls for comment to all three companies were not

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Fitch notes Realogy, Chesapeake Energy debt risk

September 29, 2009

CHICAGO – Fitch Ratings said Tuesday that the three issuers of junk debt most in danger of breaching lender requirements are Realogy Corp., Chesapeake Energy Corp. and Frontier Communications Co. Calls for comment to all three companies were not

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Max Fraad Wolff: Skewed Recovery

September 29, 2009

As consensus builds for economic recovery, mass anger is building in lock-step. Consumer sentiment surveys show that the public does feel better about the economy. Stock and bond markets have been celebrating, here and abroad, since March. Public officials have been speaking of the rebound for at least three months. Our national GDP – broad value of final goods and services sold in America – will grow in the third quarter of 2009. Interest rates on corporate debt and US government debt and mortgage rates are low. Corporate profits have rebounded on rising productivity, falling dollars and rising sentiment. However, unemployment and poverty are on the rise and foreclosures continue. The real economic situation for the least affluent 80% of Americans continues to deteriorate amidst the recovery. This discrepancy is creating anger and opposition that is exploding in unlikely places, debates and attitudes. It is one ingredient driving the anger at tea parties, health policy meetings, protests and proclamations. Why is our “recovery” so skewed? There are many complex answers to this vital question. One answer is our reliance on monetary policies that were focused on addressing the financial crisis. This is one element of the structural economic decline that is battering American fortunes. We have a structural economic crisis and a financial crisis. These two different elements of the great recession have been confused and conflated by analysts, policy makers and public perception. This created excess focus on financial matters by most. Angry masses see the recession as purely financial. This is false. Policy makers have rushed to address the financial crisis. This is near sighted. Monetary policies have dominated our policy response. We have addressed one of our afflictions and left the greater economic problems under-appreciated and unaddressed. This makes our recovery very fragile and skewed. Monetary policies have provided over $11.5 trillion of assistance to our monetary/financial sectors since March 2007. The rules for remaining financial institutions have been re-written many times over the last 18 months. New access, support and assistance have been provided with each leg down. The Federal Reserve has led this process. You can see this leadership in the $1.2 trillion (approximately 150%) increase in the Federal Reserve balance sheet. The FDIC, the Treasury Department, Congress and two White Houses have been deeply involved. You already know this, and it has been exhaustively reported. What no one seems to have discussed is how this response skews our “recovery.” Our leading responses to the crisis have been to slash interest rates and provide trillions in assistance to our financial institutions. This makes sense but betrays the structural problem. We are a society that lives on debt and speculation. Our houses are ever more owned by investors. 2007 was the last year Americans owned more than 50% of their homes. Today, America owns 43% of its housing stock, and creditors own the other 57%. We have $10.4 trillion in mortgage debt and $2.5 trillion in consumer debt. Every month 350,000 American houses are being seized by creditors. These numbers hint at the real problem. We are dependent on the financial sector. This is result of our structural economic problem. We have been over-consuming for 15 years. American wages, salaries and savings have not been enough. We have been borrowing and speculating for the difference. The world has joined the game with global financial deregulation and market integration. Real recovery will take time, and has not been attempted. Instead, we have been working and spending to put Humpty Dumpty back together again. We have been straining to jump start the financial machine that has enabled a debt-and-speculation economy. This skews the recovery. Low interest rates and enabling policies for lenders have succeeded in buoying our surviving firms. They borrow cheaply from the Fed, markets and the public. Safe investments offer very low yields, but they can borrow for even less. This pushes up earnings. Even more essential, government programs buy and assure safe assets. The Federal Reserve has purchased $700 billion in mortgage backed securities and plans another $500-$600 billion in purchases over the next year. The Federal Government’s Fannie Mae and Freddie Mac have purchased over 75% of the mortgages and mortgage backed securities sold in the first 6 months of 2009. The Federal Reserve has also been buying US Treasury Debt. This drops the returns on safe assets. People re-enter more risky markets and start speculating again. This is done by design to drop the price on mortgages. Thus, our policy response helps people with good credit get cheap mortgages. We are also providing assistance to financial institutions and returns to speculators. We are making vast sums of money available and make the returns on safe assets very low. You don’t need me to tell you what this creates. This drives money into riskier and riskier investments. Look at stocks, particularly in the developing world. This skews our recovery. The job market continues to be very weak and it is clear that it will be several years before we create the 7 million jobs lost, let alone the backlog of missing jobs that we need. Our population growth suggests we need 125,000 new jobs a month just to standstill. Weak job markets mean stagnant wages and rising productivity. It is hard to get wage increases and easy to be over worked in understaffed workplaces when fear runs high. People with bad or questionable credit don’t get those new lower borrowing rates. Today’s cheaper mortgages are hard to get for many and out of the question for those in trouble. The rapid rise in asset prices does nothing fast and direct for the mass of Americans who own few of the assets. What is owned is squirreled away in battered retirement accounts. The stagnation in the US economy, falling dollars and falling debt flow make foreign markets and enterprises more essential. This directs attention, new employment and excitement to other nations. All of this shrinks the future importance of the lower 80% of Americans in global business terms. Our recovery is fragile and has left behind many. This is rarely discussed and even more rarely understood. In the absence of discussion and understanding, anger simmers and erupts in odd places, times and ways. ++++++++++++++++++++++++++++++++++++ i 25 September 2009 Bloomberg News. Bloomberg estimates $11.6trillion in total assistance to the financial system.http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ahys015DzWXc ii The Federal Reserve releases its balance sheet every Thursday. http://federalreserve.gov/releases/h41/Current/ iii 13 August 2009, Freddie Mac. Chart Source. http://www.freddiemac.com/corporate/company_profile/pdf/fm_housing_crisis.pdf

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Colony Financial Closes IPO Of 12.5 Mln Shares – Quick Facts

September 29, 2009

company to acquire and originate commercial mortgage loans, which may be performing, sub-performing or non-performing loans, other commercial real estate-related debt investments, commercial mortgage-backed securities or CMBS, real estate owned, or REO,

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Colony Financial Closes IPO Of 12.5 Mln Shares – Quick Facts

September 29, 2009

company to acquire and originate commercial mortgage loans, which may be performing, sub-performing or non-performing loans, other commercial real estate-related debt investments, commercial mortgage-backed securities or CMBS, real estate owned, or REO,

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Twins Beat Tigers in 10 Innings, Close Within One Game in AL Central

September 29, 2009

By Erik Matuszewski Sept. 29 (Bloomberg) — The Minnesota Twins won the opening game of their doubleheader against Detroit 3-2 in 10 innings to pull within one game of the first-place Tigers in the American League Central Division. Orlando Cabrera’s run-scoring single in the top of the 10th inning snapped a 1-1 tie at Detroit’s Comerica Park. Minnesota’s Delmon Young added a sacrifice fly and Twins reliever Joe Nathan allowed a leadoff home run to Detroit’s Curtis Granderson in the bottom of the 10th before closing out the opener of the four-game series. The Twins improved their record to 82-74 with six games left in Major League Baseball’s regular season. The Tigers fell to 83-73. The teams will complete their doubleheader tonight and also play the next two days in Detroit. The AL Central winner will play the New York Yankees in the first round of the playoffs. To contact the reporter on this story: Erik Matuszewski in New York at matuszewski@bloomberg.net

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Obama’s Chicago Is Oddsmakers’ Pick for 2016 Olympics as Rio Closes Gap

September 29, 2009

By Alex Duff Sept. 29 (Bloomberg) — Chicago remains the bookmakers’ favorite to host the 2016 Olympics, with its lead over Rio de Janeiro dwindling. Chicago, which will get an appearance from President Barack Obama , is the favorite at U.K. bookies William Hill Plc and Ladbrokes.com. The International Olympic Committee will select from the U.S. city, Rio, Tokyo and Madrid in a secret vote in Copenhagen on Oct. 2. The Illinois city is using Obama and its financial clout to counter Rio’s main selling point: South America never has held the Games, which began in 1896. Chicago estimates it would generate $1.8 billion in sponsorships as host, three times more than Rio. The last summer Games in the U.S. were in Atlanta in 1996. “Rio has done an extraordinary job in promoting themselves as the most sympathetic bid,” said Marc Ganis , president of SportsCorp., a Chicago-based sports consulting firm. “But the IOC can’t afford to miss out on a generation in the biggest consumer market in the world.” Chicago is the 4-5 favorite to win, down from 8-11 on Sept. 24, according to William Hill. A successful $5 wager on the U.S. city would bring $4 plus the original stake. Rio’s odds improved to 13-8 from 11-4. Tokyo and Madrid are 5-1 and 8-1 chances. Chicago also is favored at Ladbrokes. The winner will use the Games to gain billions of dollars in construction, tourism and sponsorships, luring national leaders including Obama and Brazilian President Luiz Inacio Lula da Silva to Copenhagen for last-minute pitches to members. Around the Rings, which covers the business of the Olympics, says the South American city’s bid is the strongest after looking at 11 different categories, including cost, ambience, legacy and public support. Rio got an 84 in the publication’s Olympic Bid Power Index, up from 77 in June. Chicago rose to 83 from 80, while Madrid and Tokyo are both on 80. To contact the reporters on this story: Alex Duff in Madrid at aduff4@bloomberg.net .

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Public Health Insurance Option Is Rejected in Senate Finance Panel’s Vote

September 29, 2009

By Laura Litvan and Kristin Jensen Sept. 29 (Bloomberg) — Senate Finance Committee Chairman Max Baucus joined with four other Democrats to defeat a proposal from members of their own party to create a government insurance program, a measure opposed by private insurers. The panel, the last of five in Congress to draft health- care legislation, voted 15-8 against an amendment offered by West Virginia Senator Jay Rockefeller to start the government plan. All the Republicans voted no. New York Democrat Charles Schumer will introduce another amendment on the issue next, and said he’ll also raise it on the Senate floor. The “public option” is the biggest flashpoint in the deliberations over how to revamp the U.S. medical system, with many Democrats arguing that it is essential to reining in costs by providing competition to private insurers. Republicans oppose the plan, saying it will undercut the companies. “My job is to put together a bill that will become law,” Baucus said just before the vote. “I fear if this provision is in this bill as it comes out of this committee, it will jeopardize” the overall overhaul effort, he said. Baucus said insurance companies already face a host of new standards in a proposal he released earlier this month, including a requirement that they issue policies to all who need them and restrictions on the different premium charges they can place on the youngest and oldest policy holders. They would also have new competition from nonprofit cooperatives. “It does hold insurance companies’ feet to the fire,” he said of his proposal. $50 Billion Rockefeller said his amendment would probably save $50 billion over 10 years and reduce costs for families, not focus on profits for insurers such as Philadelphia-based Cigna Corp. “Why would we not do this?” he said before the vote. “People come second and the profits come first if we’re against this.” The Rockefeller amendment would have initially pegged the rates that the public option paid providers to the lower rates paid by Medicare, the government program for the elderly. Schumer’s proposal would create a public option as well, though require it to negotiate rates with providers. “We’re going to keep at this and at this and at this until we succeed,” Schumer said. ‘Slow Walk’ During the debate, Republicans on the committee said they opposed any kind of public option. Senator Charles Grassley of Iowa, the top Republican on the panel, called it “a slow walk toward government-controlled, single-payer health care.” Democratic Senators Bill Nelson of Florida, Blanche Lincoln of Arkansas, Thomas Carper of Delaware and Kent Conrad of North Dakota joined Baucus in voting against the Rockefeller amendment. The vote temporarily nudged health insurer stocks into positive territory after they spent much of the day losing ground. The Standard & Poor’s index of the six largest managed- care companies rose as much as 1.5 percent on the news, after falling as much as 3.5 percent earlier. Humana Inc . led the index, gaining 86 cents, or 2.3 percent, to $38.89 in composite New York Stock Exchange trading at 3:23 p.m., after the Louisville, Kentucky-based insurer fell as much as 2.1 percent. Coventry Health Care Inc. of Bethesda, Maryland, was next, rising 37 cents, or 1.8 percent, to $20.42. Baucus originally intended to finish his panel’s work in three days. As this morning’s work began, he said the finance committee had already considered 60 amendments and was holding the longest “mark-up” of a measure in 15 years. ‘Cadillac’ Plans The panel later will take up issues such as how to pay for the health-care legislation, which carries an estimated cost of $900 billion over 10 years. Baucus’s proposal, the basis for the panel’s work, includes a tax on high-end, or “Cadillac,” insurance plans, an idea also gaining traction in the House. Maryland Representative Chris Van Hollen , emerging from a meeting of House Democratic leaders today, said a tax on Cadillac health plans is “not a preferred option.” Leaders “are going through a winnowing process” of provisions in three versions of health-care legislation that will be combined into one measure, Van Hollen said. The tax on health plans may still be included “in conjunction” with other measures, he said. Industry Opposed The insurance industry opposes new taxes as well as the public option, saying it would disrupt coverage. If the finance panel passes its legislation , Senate leaders must combine the measure with one passed by the Senate health committee and then schedule a chamber vote. It would have to be merged with a House version before more votes. Three House committees have voted on versions of the legislation, and leaders in that chamber are trying to combine the bills. All three versions contain a public option, and Democrats are debating whether the program should be allowed to peg the reimbursements to Medicare levels. Baucus’s panel has drawn the most attention because it’s the only one with a proposal that may still get Republican support; it also won praise from the White House. Last week, Baucus thwarted challenges to his plan from both parties. “They defeated all of the crippling amendments,” said former Senate Democratic leader Tom Daschle , a Bloomberg Television contributor, in an interview this morning. “They showed the cohesion they’re going to need all the way through this process to get the job done.” To contact the reporters on this story: Laura Litvan in Washington at llitvan@bloomberg.net Kristin Jensen in Washington at kjensen@bloomberg.net

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Sears Will Settle Discrimination Case for a Record $6.2 Million, U.S. Says

September 29, 2009

By Jim O’Connell and Vivek Shankar Sept. 29 (Bloomberg) — Sears Roebuck & Co. agreed to settle a case under the Americans With Disabilities Act for $6.2 million, the U.S. Equal Employment Opportunity Commission said. A federal court judge approved a consent decree settling the lawsuit today, the agency said in an e-mailed statement. The case, in which the retailer was accused of terminating employees instead of providing reasonable accommodations for their disabilities, is the commission’s largest disability-related case settlement, the agency said. “The facts of this case showed that, nearly 20 years after the enactment of the ADA, the rights of individuals with disabilities are still in jeopardy,” said Stuart J. Ishimaru , the commission’s acting chairman. “The EEOC will use its enforcement authority boldly to protect those rights and advance equal employment opportunities.” Sears Holdings Corp., the biggest U.S. department-store company, settled the case because the legal proceedings could have taken another five years and “considerable expense” to resolve, said Kimberly Freely , a spokeswoman. “Sears continues to believe that it reasonably accommodates its associates on leave due to work-related illnesses or injuries under the Americans With Disabilities Act,” Freely said in a statement. “We have always proceeded and will continue to proceed in good faith when considering and making reasonable accommodations for our associates.” Injured Technician Sears Holdings fell 12 cents to $66.17 in Nasdaq Stock Market trading at 2 p.m. in New York. The stock of the Hoffman Estates, Illinois-based company has risen 70 percent this year. The commission’s allegations arose from a discrimination case filed by a former Sears service technician who was injured on the job, took a leave and was still disabled when he sought to return to work. Sears refused to reinstate the technician with reasonable accommodation for his disability and fired him when his leave expired, the commission said. Agency lawyers said they found more than 100 cases of employees who sought to return to work with an accommodation and were fired by the company. To contact the reporters responsible for this story: Jim O’Connell at joconnell3@bloomberg.net Vivek Shankar at vshankar3@bloomberg.net

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Stocks in U.S. Fall as Technology Slump Overcomes Rebound in Home Prices

September 29, 2009

By Elizabeth Stanton Sept. 29 (Bloomberg) — U.S. stocks declined as technology shares retreated from a one-year high and energy producers dropped as a stronger dollar dragged down oil, overshadowing the biggest gain in home prices in four years. Cisco Systems Inc. and Intel Corp. fell more than 1.3 percent, leading computer companies lower. Exxon Mobil Corp. lost 0.3 percent as the dollar strengthened to a two-week high against the euro, sending crude to a 0.3 percent decline. KB Home led homebuilders higher after the Standard & Poor’s/Case- Shiller home-price index rose 1.2 percent in July from June. The S&P 500 Index fell 0.2 percent to 1,060.61 at 4 p.m. in New York after rising as much as 0.6 percent. The Dow Jones Industrial Average decreased 47.16 points, or 0.5 percent, to 9,742.20. “We’ve had a good rally,” said Randy Bateman , who oversees $13 billion as chief investment officer at Huntington Asset Advisors in Columbus, Ohio. “Some people are going to say valuations have recovered sufficiently given the uncertainties and pull money off the table.” The S&P 500 has rallied 57 percent from a 12-year low in March, pushing valuations in the index to 20 times reported operating profits from the past year, data compiled by Bloomberg show. That’s near most expensive level since 2004. Alcoa Inc. will be the first company in the Dow average to release third- quarter earnings, scheduled for Oct. 7. The gauge of technology shares in the S&P 500 fell 0.7 percent after closing yesterday at the highest level since September 2008. The group is still the best-performing industry in 2009, having surged 45 percent. Cisco, Intel Slump Cisco, the biggest maker of networking equipment, lost 1.3 percent to $23.30. Intel, the largest producer of semiconductors, retreated 1.3 percent to $19.48. The S&P 500 Energy Index slumped 0.6 percent as the U.S. currency gained. Exxon, the biggest U.S. oil producer, lost 0.8 percent to $69.07. The dollar advanced to a two-week high versus the euro after an unexpected drop in U.S. consumer confidence this month discouraged demand for higher-yielding assets funded by borrowing in the greenback. The dollar climbed 0.4 percent to $1.4571 per euro, from $1.4622 yesterday, and touched $1.4527. “Investors are aggressively looking for those companies that are doing well on an operational basis, and are willing to pay up for that,” said Mark Freeman , a money manager at Westwood Management Corp. in Dallas, which oversees $9 billion. “We may be out of a recession, but we’re still in a difficult environment. Not every company is going to be able to operate and do well in a slow-growth environment.” To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net .

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S-Reit outlook still negative: Fitch

September 29, 2009

SINGAPORE-listed real estate investment trusts (S-Reits) have mostly refinanced their maturing debt obligations this year and have benefited from a recent share price recovery, noted Fitch Ratings in a new special report

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S-Reit outlook still negative: Fitch

September 29, 2009

SINGAPORE-listed real estate investment trusts (S-Reits) have mostly refinanced their maturing debt obligations this year and have benefited from a recent share price recovery, noted Fitch Ratings in a new special report

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Paul A. London: If Pearl Harbor Were Attacked Today Could We Afford to Defend Ourselves?

September 29, 2009

If Pearl Harbor were attacked today as it was on Dec. 7, 1941, would the government have the money to defend the country? This question was answered 70 years ago. In 1939 opponents of Roosevelt and the New Deal were wringing their hands about budget deficits in exactly the words they use today. They argued that FDR was bankrupting the country and that the Federal deficit had to be reduced. Then suddenly money stopped being a problem: we had plenty of it. Hitler struck Poland in September 1939 and two years later the U.S. was at war. The American government found billions to pour into war-related industries and the U.S. economy became the “arsenal of democracy.” The conventional wisdom had said that the country did not have even a few billion dollars to end unemployment and fight the Depression, and it was completely wrong. In fact the government had access to all the money it needed to put idle resources to work to fight a world war and support a civilian recovery that raised living standards enormously. Government spending, far from being the economic disaster conservatives predicted, made the economy boom and was completely manageable. How robust was the U.S. economy during World War II? It grew over 17 percent a year in 1941, 1942, and 1943, and 8 percent in 1944. Unemployment disappeared. Millions of men and women, said by conservatives to be unemployable during the Depression (remember The Grapes of Wrath ), were pulled into the workforce and the armed services. The country built hundreds of thousands of fighters, bombers, and military vehicles and launched millions of tons of shipping. It supported 16 million people in the armed forces, the equivalent of 36 million today. It built new plants to produce aluminum, dams to power the new factories and much more. It paid for this with what, in effect, was printed money that the anti-New Dealers had said would be catastrophic. Talk about being wrong. This history is 100 percent relevant in 2009. Almost 15 million Americans are out work and millions more are working part time involuntarily. Our factories and offices are on short hours, states are laying off teachers. Consumers and businesses are saving, not spending. Our dependence on foreign oil is dangerous and has been for 60 years, and our public works are in shambles. Republicans, having learned absolutely nothing from history, say more government spending to address these problems would break the bank. They ignore the experience of World War II when the government found the money to finance a huge war when Republicans had argued that it was broke. Are Republicans just ignorant? I doubt it. Many of them know this “deficits will kill us” stuff is bull. Former Vice-President Cheney famously told then-Treasury Secretary Paul O’Neill that “Reagan proved deficits don’t matter.” His wife, Lynne Cheney has written at least six books aimed at teaching history to American children, a goal which I share. But the Republicans dismiss history when it serves them, and the economic history of World War II is clearly history they want to dismiss. The truth is that Republicans spread fear about the deficit because they do not want Democrats and the government to get credit for dealing with unemployment, health care, the need to “green” our economy, and to modernize our educational systems and public infrastructure. When they had a congressional majority they did not wait a year to blow the Clinton budget surpluses to smithereens by giving tax reductions to the wealthiest Americans. Unfazed by deficits, they never had the political guts to propose taxes to fight the unpopular Iraq War, or to pay for earmarks that served their political purposes. The feckless George W. Bush and the Republican Congress doubled the national debt on their watch and refused to take responsibility — that is ask voters to pay for — their actions. Republicans don’t care about deficits. They talk about deficits now because it fools people, and they see that as good politics. The country can afford to spend money to put Americans back to work, modernize our infrastructure, green our economy, and improve our educational systems just as surely as it could afford to spend money to fight World War II. To do otherwise is to ignore American history. Write a book about this Ms. Cheney.

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"Debtors’ Revolt" Message Resonates (VIDEO)

September 29, 2009

When Ann Minch told the “evil, thieving bastards” at Bank of America they could stick her credit card debt in their “bailout pipe and smoke it,” the message resonated. Soon after Minch posted her declaration of a “debtors’ revolt” on YouTube , several blogs took notice. And after a profile here on HuffPost , Minch has been on a non-stop media tour, giving interviews to radio, TV, and print reporters on a near-daily basis. Minch threatened not to pay off her credit card unless Bank of America lowered her interest rate from 30 percent to 12.99 percent. Bank of America surrendered within five days . Minch’s media tour continues — and she isn’t the only one talking. Dozens of people have responded to Minch’s video with videos of their own and hundreds emailed this reporter to praise Minch. Some said they were jumping on the bandwagon and not paying off a credit card debt; more said they had too much to lose. But there’s a consensus about one thing: Credit card lenders are soaking hard-up customers after a $700 billion taxpayer bailout — people are mad as hell about that. Excerpts from the mailbag: “I just had my interest rate hiked the day after I paid the last bit of my balance in full,” wrote Matthew Merkovich of Santa Monica, Calif. “I currently owe nothing to any bank. My credit score is over 800. Regardless, my rates just got bumped up. Makes no sense. If I was going to use a credit card, I certainly won’t now. That will have to do for my own personal debtor revolt.” Gary Harper sent a note about how his letters to elected officials resulted in an appearance on an NBC News report on predatory credit card lending. Ruth Pepin in Bluffton, S.C. shared a letter she’d sent to Bank of America: I am in receipt of your letter of July 23, 2009, stating that my credit line has been reassigned to $3300 because of a history of delinquency with other creditors. I challenge your authority to do so based on facts that do not apply to this case. You are perhaps referring to an educational loan that I am repaying. I am a student and have received a deferment on repayment until I graduate next year. A deferment is not a default. I always pay my Bank of America credit card in a timely fashion. I always pay more than the minimum amount; indeed, I generally pay $200-$300 per month. Recently you raised my percentage rate from 5.9% to 12% for NO GOOD REASON. Again, I will restate that I always pay in a timely fashion in much more than the minimum amount. Recently, Bank of America was in the news as having a 2nd quarter profit of several BILLION. Your profit is obviously based on your usurious methods of money-handling. I demand that my original percentage rate of 5.9% be restored, and that my previous credit limit be restored. Mary McCurnin and Ron Bednar, a married couple living in Rancho Cordova, Calif., wrote separately but said the same thing in their letters: That they consider it “un-American” to pay off their credit cards. In subsequent phone interviews, McCurnin and Bednar explained how illness had ruined them financially. Click here to read the story about how they divorced in an effort to keep afloat financially . Here are some of the videos: For the most part, raw anger is the only thing that comes through clearly in the “debtors’ revolt” videos uploaded to YouTube. YouTuber efrasier21mbf says he was an assistant branch manager for Bank of America for two years before quitting his job because “Bank of America will stop at nothing to turn an insane profit at your expense.” He wants Bank of America to settle an account — the offer comes toward the end of the video: This woman says she’s angry about interest rate hikes on various cards. She says she can’t revolt against the “loan sharks” because her home is almost paid off: “I don’t know what to do.” In subsequent video uploads, she seems to have figured out one thing she can do — she transformed into a bear: “I find it interesting how our lawmakers can bail out our financial sector,” says YouTuber x684867, “and then during this economy when things are kinda tight our financial sector just kinda says screw you, pay your taxes, we need your money. We’ve lost a sense of humanity in this country.” “Folks, I’d just like to talk about Bank of America for just a minute, not going to spend a lot of time on it,” says YouTuber saveamerica100. “It’s not worth it. Actually, it is worth it. It’s worth putting them out of business, that’s for sure.”

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Parsvnath to raise about Rs 168 cr through QIP

September 29, 2009

plans to raise 35 million dollars (about Rs 168 crore) through private placements of shares to cut its debt and complete ongoing projects. Parsvnath is planning to raise 35 million dollars through qualified institutional placements (QIP) route, which was

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Transpera Announces President and Chief Operating Officer, Jason Weisberger

September 29, 2009

SAN FRANCISCO, CA–(Marketwire – September 29, 2009) – Transpera, the largest mobile video delivery and ad network in North America, announces today the appointment of Jason Weisberger to the newly created position of President and COO. Weisberger joins Transpera from Federated Media, where he was COO. He brings more than 15 years of leadership in technology environments ranging from early-stage venture-backed start-ups to multinational telecommunications giants. Prior to his recent service at Federated Media, Mr. Weisberger held leadership positions at Cable & Wireless, Digital Island and SoftAware Networks.

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