November 2010

EUR/USD: Trading the German IFO Business Confidence Survey

November 22, 2010

EUR/USD: Trading the German IFO Business Confidence Survey

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EUR/USD: Trading the German IFO Business Confidence Survey

November 22, 2010

EUR/USD: Trading the German IFO Business Confidence Survey

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EUR/USD: Trading the German IFO Business Confidence Survey

November 22, 2010

EUR/USD: Trading the German IFO Business Confidence Survey

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U.S. Stocks Decline at Opening as Ireland Bailout Fails to Boost Confidence

November 22, 2010

U.S. Stocks Decline at Opening as Ireland Bailout Fails to Boost Confidence

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Dollar Gains Momentum on European Fears

November 22, 2010

Dollar Gains Momentum on European Fears

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European worries weigh down U.S benchmark stock indices

November 22, 2010

European worries weigh down U.S benchmark stock indices

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Japanese Yen Tests 23.6% Fib, Risks For New Zealand Dollar Reversal Materialize

November 22, 2010

Japanese Yen Tests 23.6% Fib, Risks For New Zealand Dollar Reversal Materialize

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Investors are Not Convinced Irish Bailout Will Work

November 22, 2010

Investors are Not Convinced Irish Bailout Will Work

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Sterling Vulnerable as Irish Bailout on Shaky Ground

November 22, 2010

Sterling Vulnerable as Irish Bailout on Shaky Ground

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Euro Rally Short Lived, Australian Dollar Carves Head & Shoulders Top

November 22, 2010

Euro Rally Short Lived, Australian Dollar Carves Head & Shoulders Top

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Euro drops after Moody’s downbeat announcements

November 22, 2010

Euro drops after Moody’s downbeat announcements

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A Range Bound USD/CHF Presents Scalping Opportunity

November 22, 2010

A Range Bound USD/CHF Presents Scalping Opportunity

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Forex Strategy Outlook: Range Trading Attractive on Low US Dollar Volatility

November 22, 2010

Forex Strategy Outlook: Range Trading Attractive on Low US Dollar Volatility

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Currency Traders Place the Spotlight on the Canadian Inflation Report

November 22, 2010

Currency Traders Place the Spotlight on the Canadian Inflation Report

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FOREX TREND MONITOR: US Dollar to Thrive on Risk Aversion

November 22, 2010

FOREX TREND MONITOR: US Dollar to Thrive on Risk Aversion

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Energy XXI to buy $1b assets from Exxon affiliates

November 22, 2010

Energy XXI to buy $1b assets from Exxon affiliates

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Hong Kong inflation remains at 2.3% in October

November 22, 2010

Hong Kong inflation remains at 2.3% in October

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Ireland bailout supports the Euro’s appreciation

November 22, 2010

Ireland bailout supports the Euro’s appreciation

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Sri Lanka to ease foreign investment rules

November 22, 2010

Sri Lanka to ease foreign investment rules

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Peru’s agricultural exports surge 28%

November 22, 2010

Peru’s agricultural exports surge 28%

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European stocks fall by midday after Irish approval to EU-IMF rescue package

November 22, 2010

European stocks fall by midday after Irish approval to EU-IMF rescue package

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Pakistan’s trade deficit under strain?

November 22, 2010

Pakistan’s trade deficit under strain?

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Euro rises against the dollar and the yen for a fourth day

November 22, 2010

Euro rises against the dollar and the yen for a fourth day

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Thai economy grows 6.7% in Q3

November 22, 2010

Thai economy grows 6.7% in Q3

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Indonesia to get $800m support from WB

November 22, 2010

Indonesia to get $800m support from WB

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Euro Eyes Key Fib Retrace

November 22, 2010

Euro Eyes Key Fib Retrace

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FOREX: US Dollar Weakness Hinted as Irish Bailout Boosts Risk Appetite

November 22, 2010

FOREX: US Dollar Weakness Hinted as Irish Bailout Boosts Risk Appetite

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Kiwi Stands Out in Early Monday Trade; Euro Bid on EU/IMF Bailout

November 22, 2010

Kiwi Stands Out in Early Monday Trade; Euro Bid on EU/IMF Bailout

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Prysmian to buy Draka for $1.16b

November 22, 2010

Prysmian to buy Draka for $1.16b

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Air China awards $1.8b deal to Rolls-Royce

November 22, 2010

Air China awards $1.8b deal to Rolls-Royce

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Thailand’s economy expanded at a mild pace in the third quarter 

November 22, 2010

Thailand’s economy expanded at a mild pace in the third quarter

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New Zealand Dollar Sinks as S&P Revises Outlook to ‘Negative’

November 22, 2010

New Zealand Dollar Sinks as S&P Revises Outlook to ‘Negative’

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ProLogis Closes Sale of $1 Bil. Portfolio to Blackstone

November 22, 2010

ProLogis (NYSE: PLD), the world’s largest warehouse and distribution center owner, has closed the sale of a portfolio of North American industrial properties to Blackstone Real Estate Advisors and a minority interest in a hotel to Hilton Worldwide for…

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Tests Show Toxic Metals In Children’s Products Exceed Federal Limits By 1000 Times

November 22, 2010

LOS ANGELES — Drinking glasses depicting comic book and movie characters such as Superman, Wonder Woman and the Tin Man from “The Wizard of Oz” exceed federal limits for lead in children’s products by up to 1,000 times, according to laboratory testing commissioned by The Associated Press. The decorative enamel on the superhero and Oz sets – made in China and purchased at a Warner Brothers Studios store in Burbank – contained between 16 percent and 30.2 percent lead. The federal limit on children’s products is 0.03 percent. The same glasses also contained relatively high levels of the even-more-dangerous cadmium, though there are no federal limits on that toxic metal in design surfaces. In separate testing to recreate regular handling, other glasses shed small but notable amounts of lead or cadmium from their decorations. Federal regulators have worried that toxic metals rubbing onto children’s hands can get into their mouths. Among the brands on those glasses: Coca-Cola, Walt Disney, Burger King and McDonald’s. Coca-Cola, which had been given AP’s test results last week, announced Sunday evening that after retesting it was voluntarily recalling 88,000 glasses. The AP testing was part of the news organization’s ongoing investigation into dangerous metals in children’s products and was conducted in response to a recall by McDonald’s of 12 million glasses this summer because cadmium escaped from designs depicting four characters in the latest “Shrek” movie. The New Jersey manufacturer of those glasses said in June that the products were made according to standard industry practices, which includes the routine use of cadmium to create red and similar colors. To assess potential problems with glass collectibles beyond the “Shrek” set, AP bought and analyzed new glasses off the shelf, and old ones from online auctions, thrift shops and a flea market. The buys were random. The fact it was so easy to find glasses that appeal to kids and appear to violate the federal lead law suggests that contamination in glassware is wider than one McDonald’s promotion. The irony of the latest findings is that AP’s original investigation in January revealed that some Chinese manufacturers were substituting cadmium for banned lead in children’s jewelry; that finding eventually led to the McDonald’s-Shrek recall; now, because of the new testing primarily for cadmium in other glassware, lead is back in the spotlight as well. AP’s testing, conducted by ToyTestingLab of Rhode Island, found that the enamel used to color the Tin Man had the highest lead levels, at 1,006 times the federal limit for children’s products. Every Oz and superhero glass tested exceeded the government limit: The Lion by 827 times and Dorothy by 770 times; Wonder Woman by 533 times, Superman by 617 times, Batman by 750 times and the Green Lantern by 677 times. Federal regulators will decide whether the superhero and Oz glasses are “children’s products” and thus subject to strict lead limits; if U.S. Consumer Product Safety Commission staffers conclude the glasses to fall outside that definition, the lead levels would be legal. Judging by the agency’s own analysis, obtained by the AP under the Freedom of Information Act, the Oz and superhero glasses appeal to kids. “Licensed characters based on action superhero themes or friendship themes are very popular” with children ages 6 to 8, CPSC staff wrote when explaining why the “Shrek” glasses, which featured the cartoon ogre and his friends, would end up in children’s hands. Warner Brothers said, “It is generally understood that the primary consumer for these products is an adult, usually a collector.” However, on Warner Brothers’ website, the superhero glasses are sold alongside kids’ T-shirts with similar images and a school lunch box. An online retailer, , describes the 10-ounce glasses as “a perfect way to serve cold drinks to your children or guests.” http://www.retroplanet.com The importer, Utah-based Vandor LLC, said it “markets its products to adult collectors.” The company said less than 10,000 of each set had been sold and that the products were made under contract in China. The company said that superhero and “Oz” glasses both passed testing done for Vandor by a CPSC-accredited lab, including the same lead content test that ToyTestingLab did for AP – a test only required of children’s products. Spokeswoman Meryl Rader did not answer when asked why a test specific to children’s products would be performed on glasses the company said were not intended for kids. “The results were well within the legal limits” of 0.03 percent lead, Rader wrote in an e-mail. The company would not share those results. Informed in general terms of AP’s results, CPSC spokesman Scott Wolfson said that the agency would pursue action against any high-lead glasses determined to be children’s products. The agency has authority to enforce lead levels for glasses going back decades, he said. AP’s testing showed Vandor’s Chinese manufacturer also relied on cadmium. That toxic metal comprised up to 2.5 percent of the decorative surface of the Oz and superhero glasses, nearly double the levels found in the recalled “Shrek” glasses. But the CPSC only limits how much cadmium escapes from the designs, not how much cadmium the designs contain. Even that regulation is new: The CPSC used the “Shrek” glasses to establish a standard for how much cadmium coming out of children’s glassware creates a health hazard. Five of the glasses that AP tested, including one ordered from the online Coca-Cola store, shed at least as much cadmium as the CPSC found on the “Shrek” glasses. While those five could have been deemed a health hazard under the CPSC guidelines used for the recall, recent revisions tripled the allowable amount of cadmium and the agency may no longer consider them a problem. The agency has said its upward revision means the “Shrek” glasses did not need to be recalled. The all-red Coke glass shed three times more cadmium than the Puss in Boots “Shrek” glass that worried federal regulators the most last summer. Coke Zero and Diet Coke glasses did not exhibit the same problem. In announcing that it was voluntarily recalling 22,000, four-glass sets “for quality reasons,” the Coca-Cola Co. said the glass designed to look like a red can of Coca-Cola “did not meet our quality expectations. While recent tests indicated some cadmium in the decoration on the outside of the glass, the low levels detected do not pose a safety hazard or health threat.” The company said consumers who purchased the glasses from Coke’s online store will receive an automatic credit; customers who bought the glasses in retail stores will be instructed on what to do starting Nov. 30. The glasses, which Coke said were “designed for the general adult population,” were manufactured in the United States by Arc International, the same company that made the recalled “Shrek” glasses. In all, AP scrutinized 13 new glasses and 22 old ones, including glasses sold during McDonald’s promotion for a 2007 “Shrek” movie. The used glasses date from the late 1960s to 2007, mostly from promotions at major fast-food restaurants. Thousands of such collectibles are available at online auction sites; countless others are kept in American kitchen cabinets, and used regularly by children and adults. First, AP screened them using a state-of-the-art Olympus Innov-X gun that shoots X-rays into a glass and delivers an estimate of how much lead, cadmium or various other elements are present. The glasses were then sent to ToyTestingLab, which is accepted by the CPSC as an accredited laboratory for a range of procedures. The glasses were tested according to the procedure that the safety commission used in the “Shrek” recall. The decorated surface of each glass was stroked 30 times with water-soaked wipes, with each stroke representing a hand touch. The wipes were then analyzed for how many micrograms of lead, cadmium or other elements they collected. Finally, for seven of the superhero and Oz glasses the lab extracted samples of the decorations. That colored enamel was analyzed for its total lead content. “I was extremely surprised at the levels,” said Paul Perrotti, ToyTestingLab’s director, of the total content test. He said his lab has seen glasses that fail to meet government standards, “But not 30 percent lead.” Despite what Perrotti described as “grossly high” levels, the wipe testing picked up very little lead coming out from these seven glasses. His staff had to use a diamond-tipped grinder to remove the colors, suggesting the enamel was strongly bonded to the glass. Perrotti and glass engineers interviewed by AP said the surface of the glasses AP tested could break down with repeated use, scouring and trips to the dishwasher, making the metals more accessible. Following a cascade of problems with products manufactured in China, Congress in 2008 passed strict new limits that effectively ban lead in any children’s product. The underlying materials in these products – including the baked-in enamel – cannot be more 0.03 percent lead. Lead has long been known to reduce IQ in kids; recent research suggests cadmium also can damage young brains. Cadmium also is a carcinogen that can harm kidneys and bones, especially if it accumulates over time. Cadmium, however, also happens to be an indispensable pigment for an important part of the color palette – without it there is no “fire engine red” (think Superman’s cape and Dorothy’s slippers). Lead on the other hand is not essential. A lot of a toxic metal in a glass does not necessarily mean a health hazard. Most of the 35 lab-tested glasses were safe under normal conditions – their decorations shed very low or no detectable amounts of lead or cadmium. Among those that did release higher levels in the wipe test, none gave off nearly enough to make someone immediately sick, according to AP’s analysis of the results. Instead, the concern is low levels of exposure over weeks or months, whether kids also are eating a sandwich or licking their fingers. In addition to the seven contaminated Oz and superhero glasses, 10 others raised concern over longer-term contact – two for both lead and cadmium, five for lead only and three for cadmium only. According to widely used computer modeling, the contamination that came off three of the glasses could measurably increase a child’s blood lead level. If half of what gets onto a child’s hand enters their mouth, as the CPSC calculates, seven of the glasses would require fewer than 20 hand touches for kids age 6 and under to exceed U.S. Food and Drug Administration guidelines for the maximum amount of lead they should ingest in a day. Most of the 10 additional glasses were released before 2000, including a Disney “Goofy” glass distributed by McDonald’s that shed lead and cadmium, and three “Return of the Jedi” glasses from 1983 released by Burger King. One of the “Jedi” glasses hit the FDA lead level for 6-year-olds after just eight touches. Both fast food chains said in statements that their glasses met applicable safety standards at the time they were manufactured. Disney, which ran several promotions with McDonald’s for glassware AP tested, had no comment. Using computer modeling, nationally recognized toxicologist Dr. Paul Mushak, who has advised government agencies including the CPSC and now operates a consulting practice in North Carolina, concluded that if half of what came off the glasses was ingested, it could raise a 5- to 6-year-old’s blood lead level by 11 percent on the high end and 4 percent on average. The blood level changes didn’t alarm Mushak, but he expressed concern because lead from the glasses would be absorbed into the bones, only to be released much later in life, for example in menopausal women. Mushak suggested that the safety commission’s wipe test could underestimate real-world exposure, because it uses water on the wipes, a very mild approach. AP’s testing showed that when glasses were subjected to a wipe wetted with artificial sweat, the amounts of lead or cadmium that came off were up to four times higher than water wipes. Members of the association representing the U.S. glassware industry say the glasses are safe and strongly protest that the wipe test does not accurately reflect how much lead or cadmium escapes in the real world. Myra Warne, executive director of the Society of Glass and Ceramic Decorated Products, said she is frustrated that the CPSC used it, rather than a more commonly used method developed by the FDA. “As we are aware, government agencies don’t always (or perhaps often) share their insight and knowledge with one another which is likely why CPSC and others are fixated on improper test protocol for our products,” she wrote in an e-mail. ___ The AP National Investigative Team can be reached at investigate(at)ap.org

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Charles H. Green: The Best Movie You Haven’t Heard of: Inside Job

November 22, 2010

Here are the ratings (% who liked) from Flixster for some of the movies playing this weekend: 90% The Social Network 88% Inside Job 81% Unstoppable 78% MegaMind 78% Jackass 3-D 77% Red 75% Skyline 65% Due Date 65% Morning Glory 64% The Next Three Days 54% Saw 3D You know The Social Network. But how about the #2 movie, Inside Job ? Ever hear of it? 96% of the critics liked it. Rotten Tomatoes rated it 96% . It’s narrated by Matt Damon. Feeling out of the loop yet? Why haven’t you heard of this movie? More on obscurity later, but here’s the official synopsis: ‘Inside Job’ is the first film to provide a comprehensive analysis of the global financial crisis of 2008, which at a cost over $20 trillion, caused… ‘Inside Job’ is the first film to provide a comprehensive analysis of the global financial crisis of 2008, which at a cost over $20 trillion, caused millions of people to lose their jobs and homes in the worst recession since the Great Depression, and nearly resulted in a global financial collapse. Through exhaustive research and extensive interviews with key financial insiders, politicians, journalists, and academics, the film traces the rise of a rogue industry which has corrupted politics, regulation, and academia. It was made on location in the United States, Iceland, England, France, Singapore, and China. There has been no shortage of books and articles about the meltdown. But most of those have had a reporter’s flavor to them–here’s what happened, then here’s what happened next. I felt that no one had really pulled it together with a narrative theme and the data to back it up. Until this weekend, that is. The theme is now not just clear, but tight. Bad things happened. They were not an accident. They were the results of bad people behaving badly. They knew what they were doing. They did them anyway. And to this day, they refuse to acknowledge responsibility. Think of this movie as what Michael Moore would produce if he had a PhD in economics and a career as a Federal Prosecutor. It’s the project of Charles Ferguson , who in fact does have a PhD in political science from MIT (he has also consulted to the White House and the Department of Defense, was a Senior Fellow at Brookings, and a member of the Council on Foreign Relations). You may know Ferguson as the director of No End in Sight , a powerful documentary about the Iraq war. He’s confident enough to interrupt an economist and say , ‘You can’t be serious about that. If you would have looked, you would have found things.’ Or to tell a former Bush administration under-secretary of the Treasury, “Forgive me, but that’s clearly not true.” Here is a review by A.O. Scott , in the New York Times. Boston.com calls it “a masterpiece of investigative nonfiction moviemaking — a scathing, outrageous, depressing, comical, horrifying report on what and who brought on the crisis. Here’s Kenneth Turan’s review in the LA Times. Go see for yourself; see the trailer here . The Role of Ideology in the Meltdown There’s much to say about this documentary; I’ll limit my thoughts to just one–the role of ideas in the meltdown. In this day and age of neuro-explanations and insistence that only measurable behavior is relevant for management, the role of ideas gets pooh-poohed. Big mistake. I’ve written before about the power of strategic doctrine taught in business schools to negatively influence our general business thinking. But after seeing this documentary, I’m newly persuaded. Ideas have huge power: especially when those ideas happen to greatly serve the economic interests of patrons. In the pharmaceutical industry, it’s become well accepted that a researcher or writer who takes money from a drug company is at the very least subject to rules of disclosure. Failure to do so constitutes an immediate presumption of conflict of interest. Yet somehow, we have never held our nation’s leading economists and business school faculty to the same standards. One of the most eye-opening aspects of Inside Job for me was to put this issue front and center. Some of Fergusons’ hardest-hitting interviews are with the elite heads of academic institutions: Frederic Mishkin , a former Fed governor, now at Columbia Business School; his boss Glenn Hubbard , chairman of the Council of Economic Advisers under George W. Bush; John Campbell , Harvard’s economics department chairman; and fellow Harvard economist Martin Feldstein . They come off, respectively, as incompetent, blustering, inarticulate, and smug. None of them seem to have noticed a disconnect between their laissez-faire ideas and the disasters engineered by those who quoted them; much less any sense of impropriety at the comfortable financial relationships they shared with those very firms. Somewhere there is a researcher at Harvard Medical School screaming at the injustice of his not being published in NEJM because of some disclosure requirements, while his academic counterparts in business and economics were happily and openly opining on the health of the Icelandic banking system and the liquidity of the US subprime mortgage market, all the while getting very well paid . (Note: b-school profs provide functional consulting services to companies all the time; I don’t see that as an issue. This is vastly different; more another time). Results of the Meltdown Ferguson touches clearly, albeit briefly, on one enduring outcome of this decades-long debacle–the increased gap in the US between the haves and the have-nots. In 1976, the richest 1% of Americans had 9% of the income . Now they have 24%. From 1980 to 2005, 80% of the gain in income went to the top 1% . Guess what industry disproportionately accounts for that gain? But the most significant casualty, I think, is a great old American belief: the belief that you can make it here in the good old USA, land of opportunity, where anyone can be what they want. You don’t have to be limited by the circumstances of your birth, like in all those Old World countries. Sorry: no longer true. By one study , it is harder for someone to get ahead now in the US than it is in Denmark, Australia, Norway, Finland, Canada, Sweden, Germany, Spain, and even France. Only Italy and the UK are more class-bound, and I’ve seen other studies where even the Brits are less sclerotic than we are. That decline in opportunity is another result of greater income disparity. Again, one of the legacies of the financial industry. You may disagree with a lot of what I’ve said here. You may think this movie won’t change your mind; and since it’s extremely hard to change people’s minds, you may be right. But if so, may I suggest you owe it to yourself to see it–if only to write back and point out the flaws in the movie.

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Dave Lerner: Thoughts on the Various Types of Entrepreneurial Mentorship

November 22, 2010

This is part of my ongoing Series on Mentorship . I’ve been doing a lot of thinking about mentorship and mentorship programs of late. In that I provide a fair amount of mentoring to entrepreneurs in official and unofficial capacities- I’m always thinking about what models and techniques work best for fledgling entrepreneurs and their startups. I’ll be getting into my latest thoughts on this in subsequent posts. In the meantime, however, it occurred to me that it’s actually very important to contextualize any discussion you’re having on the subject of mentorship if your goal is to actually make any kind of progress. That’s because mentorship can mean a whole host of related but significantly different activities. I’ve therefore taken a crack at classifying the various types of mentorship that I’ve seen over the years, (in the realm of entrepreneurship at least), below. Kindly add any others to the comments if I’ve missed some! * Informal and unpaid entrepreneurial mentorship provided by experienced individual entrepreneurs/executives to less experienced (often first-time) entrepreneurs. These relationships often form in an ad hoc way or through a specific introduction. (Think Freddie Laker and Richard Branson). * More formal but unpaid entrepreneurial mentorship provided by experienced individual entrepreneurs/executives to other experienced entrepreneurs/executives on an ongoing basis. In such trusted arrangements between peers, the CEO receiving mentorship is able to “let down his or her guard” so to speak and receive the benefit of the mentor’s domain expertise. (Think Bill Cambpell’s “long strolls” in Palo Alto with Steve Jobs). * Informal on-the-job mentorship imparted from more seasoned entrepreneur to less experienced one. Can occur within a company walls or among people in the same industry, trade or profession. Can obviously occur within legitmate or criminal enterprise. (For afficionados of The Wire think Proposition Joe, pictured above, and Marlo- who ended up turning on him. For the more refined audience, think Socrates and Plato.) * Informal, unpaid group mentorship sessions organized by entrepreneurs for fellow entrepreneurs in cities throughout the country. (Think TIE or Young CEO-type groups across the country). * Formal, paid group mentorship sessions facilitated by for-profit organizations such as the Corporate Executive Board and other similar organizations for executives and entrepreneurs alike. * Fellowship Programs such as the Society of Kauffman Fellows are a type of entrepreneurial mentorship organization. Kauffman’s members are carefully chosen for their talents and participate in a 24-month long apprenticeship within venture capital. Thereafter they become part of a network that is constantly in contact with each other and giving back. * Accelerator/Mentorship Programs such as YCombinator, TechStars and DreamIt Ventures that take a portion of the company’s equity in exchange for a small amount of cash as well as a pre-defined period of mentorship and acceleration. Such programs have a rigorous application process and only choose a pre-defined number of promising startups to assist. Also, these programs are limited to consumer-internet/digital media type companies. * Groups like LaunchPad L.A. which though requiring an application, do not take equity and simply mentor companies they have accepted into the program. The overriding mission here is to strengthen the local startup community in Los Angeles by helping the most promising local entrepreneurs succeed. * University-based mentorship programs that do not require any kind of application apart from an affiliation with the university. There are thousands of such programs at schools around the country and they come with all sorts of nuances. Many are operated by business schools, engineering schools and other designated entities on campus. The common thread is that these services are most often provided as a free service for students, post-docs, faculty and others associated with the university who wish to try something entrepreneurial or to launch a new venture. (Think everything from the bespoke entrepreneur office hours program I’m holding at Columbia Tech Ventures , all the way to the venerable and robust MIT Venture Mentors program which has over 100 mentors). * SBDC’s and other municipal or city-sponsored programs designed to provide assistance to people running or starting small businesses in local communities around the country. My next post on mentorship will address what I believe to be the relative strengths and weaknesses of these sorts of mentorship activities.

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Steve Clemons: The Impact Today and Tomorrow of Chalmers Johnson

November 21, 2010

Next week, Foreign Policy magazine and its editor-in-chief Susan Glasser will be releasing its 2nd annual roster of the world’s greatest thinkers and doers in foreign policy. I have seen the list — and it’s impressively creative and eclectic. There is one name that is not on the FP100 who should be — and that is Chalmers Johnson , who from my perspective rivals Henry Kissinger as the most significant intellectual force who has shaped and defined the fundamental boundaries and goal posts of US foreign policy in the modern era. Johnson, who passed away Saturday afternoon at 79 years, invented and was the acknowledged godfather of the conceptualization of the ” developmental state “. For the uninitiated, this means that Chalmers Johnson led the way in understanding the dynamics of how states manipulated their policy conditions and environments to speed up economic growth. In the neoliberal hive at the University of Chicago, Chalmers Johnson was an apostate and heretic in the field of political economy. Johnson challenged conventional wisdom with he and his many star students — including E.B. Keehn, David Arase, Marie Anchordoguy, Mark Tilton and others — writing the significant treatises documenting the growing prevalence of state-led industrial and trade and finance policy abroad, particularly in Asia. Today, the notion of “State Capitalism” has become practically commonplace in discussing the newest and most significant features of the global economy. Chalmers Johnson invented this field and planted the intellectual roots of understanding that other nation states were not trying to converge with and follow the so-called American model. Johnson for his seminal work on Japanese political economy, MITI and the Japanese Miracle was dubbed by Newsweek ‘s Robert Neff as “godfather of the revisionists” on Japan. Neff also tagged Clyde Prestowitz, James Fallows, Karel van Wolferen and others like R. Taggart Murphy and Pat Choate as the leaders of a new movement that argued that Japan was organizing its political economy in different ways than the U.S. This was a huge deal in its day — and these writers and thinkers led by the implacable Johnson were attacked from all corners of American academia and among the crowd of American Japan-hands who wanted to deflect rather than focus a spotlight on the fact that Japan’s economic mandarins were really the national security elite of the Pacific powerhouse nation. In the 1980s when Johnson was arguing that Japan’s state directed capitalism was succeeding at not only propelling Japan’s wealth upwards but was creating “power” for Japan in the eyes of the rest of the world, Kissinger and the geostrategic crowd could not see beyond the global currency and power realities of nuclear warheads and throw-weight. The revisionists were responsible for injecting the economic dynamics of power and national interest in the equation of a nation’s global status. To understand China’s rise today, the fact that China has become the Google of nations and America the General Motors of countries — the US being seen by others as a very well branded, large, underperforming country — one must go back to Chalmers Johnson’s work on the developmental state. Scratch beneath these Johnson breakthroughs though and go back another decade and a half and one finds that Chalmers Johnson, a one time hard-right national security hawk, deconstructed the Chinese Communist revolution and showed that the dynamic that drive the revolutionary furor had less to do with class warfare and the appeal of communism but rather high octane “nationalism.” Johnson saw earlier than most that the same dynamic was true in Vietnam. His work which was published as Peasant Nationalism and Communist Power while a UC Berkeley doctoral student launched him as a formidable force in Asia-focused intellectual circles in the U.S. Johnson’s ability to launch an instant, debilitating broadside against the intellectual vacuousness of friends or foes made him controversial. He chafed under the UC Berkeley Asia Program leadership of Robert Scalapino whom Johnson viewed as one of the primary dynastic chiefs of what became known as the “Chrysanthemum Club”, those whose Japan-hugging meant overlooking and/or ignoring the characteristics of Japan’s state-led form of capitalism. Johnson was provocatively challenged graduate students in the field to choose sides — to work either on the side where they acquiesced to a corrupt culture of US-Japan apologists who wanted the quaint big brother-little brother frame for the relationship to remain the dominant portal through which Japan was viewed or alternatively on the side of those who saw Japan and America’s forfeiture of its own economic interests as empirical facts. When Robert Scalapino refused to budge despite Johnson’s agitation, Johnson who then headed UC Berkeley’s important China Studies program abandoned the university and became the star intellectual of UC San Diego’s School of International Relations and Pacific Studies . There is no doubt that Johnson but UCSD’s IRPS on the map and gave it an instant, global boost. But as usual, Johnson — incorruptible and passionate about policy, theory, and their practice — eventually went to war with the bureaucrats running that institution. Those who had come in to head it were devotees of “rational choice theory” — which was spreading through the fields of political science and other social sciences as the so-called softer sciences were trying to absorb and apply the harder-edged econometrics-driven models of behavior that the neoliberal trends in economics were using. Johnson and one of his proteges, E.B. “Barry” Keehn, wrote a powerful indictment of rational choice theory that helped trigger a long-running and still important intellectual divide that showed that rational choice theory was one of the great ideological delusions of the era. I too joined this battle and wrote extensively about the limits of rational choice theory which I myself saw dislodging university language programs, cultural studies, and more importantly — the institutional/structural approaches to understanding other political systems. Johnson once told me when I was visiting him and his long-term, constant intellectual partner and wife, Sheila Johnson, that the UCSD School of International Relations and Pacific Studies no longer either really taught international relations or pacific studies — and that a student’s entire first year was focused on acultural skill set development in economics and statistics. To Johnson, this tendency to elevate econometric formulas over the actual study of a nation’s language, history, culture and political system was part of America’s growing cultural imperialism. Studying “them” is really about “us” — as “they” will converge to be like “us” or will fall to the way side and be insignificant. It was that night that Chalmers Johnson, Sheila Johnson and I agreed to form an idea on had been developing called the Japan Policy Research Institute . Chalmers became President and I the Director. We maintained this working relationship at the helm of JPRI together for more than 12 years and spoke nearly every week if not every other day as we tried to acquire and publish the leading thinking on Japan, US-Japan relations and Asia more broadly. We became conveners, published works on Asia that the official journals of record of US-Asia policy viewed as too risky, and emerged as key players in the media on all matters of America’s economic, political, and military engagement in the Pacific. Today, JPRI is headed by Chiho Sawada and is based at the University of San Francisco. However, this base of JPRI gave Chalmers Johnson the launch pad that led to the largest contribution of his career to America’s national discourse. From his granular understanding of political economy of competing nations, his understanding of the national security infrastructure of both sides of the Cold War, he saw better than most that the US had organized its global assets — particularly its vassals Japan and Germany — in a manner similar to the Soviet Union. Both sides looked like the other. Both were empires. The Soviets collapsed, Chalmers told me and wrote. The U.S. did not — yet. The rape of a 12 year-old girl by three American servicemen in Okinawa, Japan in September 1995 and the statement by a US military commander that they should have just picked up a prostitute became the pivot moving Johnson who had once been a supporter of the Vietnam War and railed against UC Berkeley’s anti-Vietnam protesters into a powerful critic of US foreign policy and US empire. Johnson argued that there was no logic that existed any longer for the US to maintain a global network of bases and to continue the occupation of other countries like Japan. Johnson noted that there were over 39 US military installations on Okinawa alone. The military industrial complex that Eisenhower had warned against had become a fixed reality in Johnson’s mind and essays after the Cold War ended. In four powerful books, all written not in the corridors of power in New York or Washington — but in his small home office at Cardiff-by-the-Sea in California, Johnson became one of the most successful chroniclers and critics of America’s foreign policy designs around the world. Before 9/11, Johnson wrote the book Blowback: The Costs and Consequences of American Empire . After the terrorist attacks in 2001 in New York and Washington, Blowback became the hottest book in the market. The publishers could not keep up with demand and it became the most difficult to get, most wanted book among those in national security topics. He then wrote Sorrows of Empire: Militarism, Secrecy and the End of the Republic , Nemesis: The Last Days of the American Republic , and most recently Dismantling the Empire: America’s Last Best Hope . Johnson, who used to be a net assessments adviser to the CIA’s Allen Dulles, had become such a critic of Washington and the national security establishment that this hard-right conservative had become adopted as one of the political left’s greatest icons. Johnson measured himself to som e degree against the likes of Noam Chomsky and Gore Vidal — but in my mind, Johnson was the more serious, the most empirical, the most informed about the nooks and crannies of every political position as he had journeyed the length of the spectrum. Chalmers Johnson served on my board when I worked at the Japan America Society of Southern California. He and I, along with Sheila Johnson — along with Tom Engelhardt one of the world’s great editors — created the Japan Policy Research Institute. Johnson served on the Advisory Board of the Nixon Center when I served as the Center’s founding executive director. We had a long, constructive, feisty relationship. He helped propel my career and thinking. In recent years, we were more distant — mostly because I was not ready, as he was, to completely disown Washington. Many of Johnson’s followers and Chal himself think that American democracy is lost, that the republic has been destroyed by an embrace of empire and that the American public is unaware and unconscious of the fix. He may be right — but I took a course trying to use blogs, new media, and a DC based think tank called the New America Foundation to challenge conventional foreign policy trends in other ways. Ultimately, I think Chalmers was content with what I was doing but probably knew that in the end, I’d catch up with him in his profound frustration with what America was doing in the world. Chalmers and Sheila Johnson saw me lead the battle against John Bolton’s confirmation vote in the Senate as US Ambassador to the United Nations — but given the scale of his ambitions to dislodge America’s embrace of empire, Bolton was too small a target in his eyes. He was probably right. Saying Chalmers Johnson is dead sounds like a lie. I can’t fathom him being gone — and with all of the amazing times I’ve had with him as well as the bouts of political debate and even yelling as we were pounding out JPRI materials on deadline, I just can’t imagine that this blustery, irreverent, completely brilliant force won’t be there to challenge Washington and academia. Few intellectuals attain what might have been called many centuries ago the rank of “wizard” — an almost other worldly force who defied society’s and life’s rules and commanded an enormous following of acolytes and enemies. Wizards don’t die — and I hope that those who read this, who knew him, or go on reading his works in the decades ahead provoke, inspire, jab, rebuke, applaud, and condemn in the way he did. In one of my fondest memories of Chalmers and Sheila Johnson at their home with their then Russian blue cats, MITI and MOF, named after the two engines of Japan’s political economy — Chal railed against the journal, Foreign Affairs , which he saw as a clap trap of statist conventionalism. He decided he had had enough of the journal and of the organization that published it, the Council on Foreign Relations . So, Chalmers called the CFR and told the young lady on the phone to cancel his membership. The lady said, “Professor Johnson, I’m sorry sir. No one cancels their membership in the Council in Foreign Relations. Membership is for life. People are canceled when they die.” Chalmers Johnson, not missing a beat, said “Consider me dead.” I never will. He is and was the intellectual giant of our times. Chalmers Johnson centuries from now will be seen, I think, as the intellectual titan of this past era, surpassing Kissinger in the breadth of seminal works that define what America was and could have been. My sincere condolences to Sheila, to others in his extended family — particularly among all of his students and colleagues who were part of the Johnson dynasty — and to his friends in San Diego who were a vital part of the texture of the Johnson household. — Steve Clemons publishes the popular political blog, The Washington Note . Clemons can be followed on Twitter @SCClemons

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Al Norman: Wal-Mart’s Wooing of the Reverend Sharpton

November 21, 2010

Preaching Their Way Into Manhattan ‘ By Al Norman Wal-Mart continues its urban warfare campaign, looking to colonize communities of color by co-opting black opinion-makers. They have done this in Chicago, where the retailer enlisted black Aldermen to embrace their cause, and in New Orleans, where developers actually paid black religious leaders to testify at public hearings about the virtues of chain stores. Now they are mining the black community in New York City. The most notable recruitment of black talent happened almost five years ago. In February of 2006, Wal-Mart proudly announced that “civil rights pioneer” Andrew Young had signed on as “national Steering Committee Chairman” of a new corporate creation called the Working Families for Wal-Mart, which the retailer described as “a group comprised of individuals and families who understand and appreciate Wal-Mart’s positive impact on the working families of America.” Less than six months later, Andrew Young’s reputation as a “civil rights pioneer” had crashed and burned in what one newspaper called a “spectacular setback” for Wal-Mart’s PR effort. The meteoric nosedive of Andrew Young came in one embarrassing quote the former Atlanta Mayor made during an interview with the Los Angeles Sentinel . When asked if he was concerned about Wal-Mart causing smaller, mom and pop stores to close, Young replied, “”Well, I think they should; they ran the `mom and pop’ stores out of my neighborhood. But you see, those are the people who have been overcharging us, selling us stale bread and bad meat and wilted vegetables. And they sold out and moved to Florida. I think they’ve ripped off our communities enough. First it was Jews, then it was Koreans and now it’s Arabs; very few black people own these stores.” It didn’t take long for two events to follow: 1) a contrite apology from Young, and 2) an immediate divorce by Wal-Mart from any connection to Andrew Young. The former Ambassador issued an apology to the media: “I apologize for those comments. I retract those comments. And I ask for the forgiveness of those I have offended.” Young added that his remarks about Jews, Koreans and Arabs “in no way reflect on Wal-Mart’s record, progress or role as a diverse employer and community citizen.” Wal-Mart’s PR creation, the Working Families For Wal-Mart, promptly exited from the stage. The group put the following statement on its website: “Working Families for Wal-Mart is saddened by the resignation of Ambassador Andrew Young as chairman of our national steering committee. We do not condone or support the insensitive statements he recently made, but appreciate his sincere apology. We are hopeful that history will remember the many contributions he has made to the civil rights movement and his tireless efforts on behalf of working families. Our organization consists of over 140,000 members across the country. We have several local advisory boards made up of community leaders and activists committed to our cause. We all believe that Wal-Mart makes significant contributions to America’s working families. Our organization will continue to grow and make a difference in this national debate.” The Anti-Defamation League responded quickly as well. “Andrew Young’s comments that Jewish, Korean and Arab shopkeepers “ripped off” African-American communities…were offensive, hurtful and shameful,” the ADL noted. “That a leader of the civil rights movement and one who knew discrimination firsthand would make such comments, demonstrates that even people of color are not immune from being bigoted, racist and anti-Semitic.” This week, Crain’s New York Business reports that Wal-Mart is wooing black leaders again. The retailer invited a handful of black icons in New York City to visit the mothership in Bentonville, Arkansas. The Reverend Al Sharpton made the pilgrimage to Arkansas to attend a 3 day ‘stakeholder summit’ put on by Wal-Mart. Sharpton mingled with black leaders from other major metro areas, including Chicago, Los Angeles, and Philadelphia. Sharpton, it turns out, has been a Wal-Mart acolyte for several years, and sits on what Crain’s called “an external advisory board” for the company. At these stakeholder’s events, Wal-Mart touts its philanthropic record, its hiring of minorities, and other corporate policies relevant to the black community. It is unlikely that Wal-Mart discussed the Dukes V. Wal-Mart case, the largest class action lawsuit in the history of retailing, in which the lead plaintiff suing Wal-Mart is a black woman. “There’s a lot of negative information out there about Wal-Mart, and they were trying to get their side of the story out,” Crain’s quoted one member of 100 Black Men of New York as saying. The Wal-Mart summit was apparently a sound check for the retailer’s upcoming push into Manhattan, which will be patterned on its work in Chicago, where black churchs and politicians were recruited to carry Wal-Mart’s water. A company spokesman told Crain’s the black leaders were being prepped for “helping us tell the Wal-Mart story.” Thus far, union and political leaders in the New York boroughs have been telling Wal-Mart’s story too—but theirs is a tale of exploitation, of racial discrimination, and of congenital anti-labor behavior. The Black Power movement of the 1960s, which preached self-empowerment, and local control of business, has been supplanted by Wal-Mart’s pitch for corporate benevolence and southern carpetbagging. Wal-Mart targets minority areas, arguing that only they go into ‘food deserts’ to open up grocery stores where other chain stores have fled. But what happened to the local black entrepreneurs? They now wear a Wal-Mart ID tag on their polo shirt. Crain’s reports that Wal-Mart has retained the same lobbyist that Ikea used to help push its way into the Brooklyn neighborhood of Red Hook, a site that drew fire from the anti-big box neighbors. So Wal-Mart invited leaders from the Urban League, the NAACP and other black groups to drink the kool-aid in Bentonville. But not everyone is drinking. The head of one group, The Black Institute, told Crain’s , “I don’t care who they sequester in Bentonville, they’re going to get a fight.” Some black leaders have been hard to convert to Wal-Mart’s voodoo economics. During the Andrew Young fiasco, the Reverend Jeremiah Wright, a black church leader in Chicago, criticized Young for taking a paid position as a Wal-Mart spokesman. Wright accused Young of “siding with the filthy rich who are oppressing the poor.” In October of 2006, Jesse Jackson, Sr., president of the Rainbow/PUSH Coalition, had charged that Wal-Mart was trying to buy off its critics in the black community. “Rainbow/PUSH has criticized Wal-Mart openly and publicly and consistently and they’ve tried to virtually throw money at us,” Jackson told the Louisiana Weekly newspaper. But Jackson refused to take Wal-Mart money. “I think they want to leverage our organization. I think they want to leverage us into silence. And, I’m not being self-righteous, but we feel that we ought to be the last one to stand if it comes to that.” Wal-Mart apparently feels that opinion leaders in the minority community can be purchased at an everyday low price, and that black stakeholders can become Wal-Mart sign-holders. But community leaders of any color who believe that Wal-Mart creates new jobs, don’t understand what the economic libertarians call creative destructionism–the process of destroying existing jobs in order to create ‘new’ ones. The former employees at Circuit City, for example, understand this dynamic. No amount of good works or philanthropy can clean the hands of the “filthy rich,” or cover over the global exploitation of human resources that lies at the heart of Wal-Mart’s success. Reverend Sharpton will find no economic salvation in Bentonville. Instead he will taste the philosophical equivalent of what Andrew Young once called “stale bread and bad meat.” Al Norman is the founder of Sprawl-Busters, which has helped communities fight big box sprawl for the past 17 years. He is the author of Slam-Dunking Wal-Mart.

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EBX Bid Values Ventana At 147B

November 21, 2010

EBX is planning to tender a formal bid for the Ventana Gold shares it does not already own

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Booz Allen Raises 238M In IPO

November 21, 2010

Booz Allen Hamilton Holding has raised 238 million in an initial public offering

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American Media Files For Chap 11

November 21, 2010

American Media and its 15 affiliates have filed for Chapter 11 protection in the US Bankruptcy Court

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Allegheny To Pay 778M For Ladish

November 21, 2010

Allegheny Technologies will acquire Wisconsinbased aerospace parts maker Ladish

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SECs ABS Proposals May Violate Law Group Says

November 21, 2010

A group of 14 market associations warned the US Securities and Exchange Commission that proposals to apply assetbacked securities regulations to municipal bonds could violate securities laws reports Bond Buyer

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Securitization Investors Gain Access To Ginnie Mae LossMitigation Data

November 21, 2010

Ginnie Mae has announced that it will make available to securitization investors data on the concentration of lossmitigation loans in its singlefamily pools

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SP Clarifies Approach To Rating Different Securitizations

November 21, 2010

Standard Poors has published a report that it says clarifies the approach the agency uses to analyze and rate US corporate securitizations and operating asset securitizations

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