June 2011

U.S. Stocks retreat by opening…

June 24, 2011

U.S. Stocks retreat by opening…

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U.S. Economy Expands by 1.9% in Q1 In line with Expectations

June 24, 2011

U.S. Economy Expands by 1.9% in Q1 In line with Expectations

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  GDP Report Ahead, as U.S. Economy is Expected to Have Expanded by 1.9 Percent in Q1  

June 24, 2011

  GDP Report Ahead, as U.S. Economy is Expected to Have Expanded by 1.9 Percent in Q1  

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Euro Rally Short Lived as US Dollar Pushes Higher Safety Flows

June 24, 2011

Euro Rally Short Lived as US Dollar Pushes Higher Safety Flows

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Euro Slides in Overnight as Concerns Over Austerity Vote Linger

June 24, 2011

Euro Slides in Overnight as Concerns Over Austerity Vote Linger

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AUD At Risk Of Bearish Breakout, CAD Weakness Ahead

June 24, 2011

AUD At Risk Of Bearish Breakout, CAD Weakness Ahead

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Forex: Euro Outlook Remains Bearish, British Pound Correction Ahead

June 24, 2011

Forex: Euro Outlook Remains Bearish, British Pound Correction Ahead

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JPN225 Tests Resistance For Range Traders

June 24, 2011

JPN225 Tests Resistance For Range Traders

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USDJPY: A Bullish Reversal Ahead?

June 24, 2011

USDJPY: A Bullish Reversal Ahead?

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European shares closed in red, while investors heavily eye Greece’s austerity measures next week…

June 24, 2011

European shares closed in red, while investors heavily eye Greece’s austerity measures next week…

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U.S. Dollar Rally To Gather Pace, Euro Continues To Underperform

June 24, 2011

U.S. Dollar Rally To Gather Pace, Euro Continues To Underperform

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U.S. Stocks extend slump by midday…

June 24, 2011

U.S. Stocks extend slump by midday…

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Top Forex Trading Themese June 27

June 24, 2011

Top Forex Trading Themese June 27

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German business confidence rises despite mounting debt crisis and slowing global growth

June 24, 2011

German business confidence rises despite mounting debt crisis and slowing global growth

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Europe Ahead: Summit communiqué eyed for united stance amid faltering confidence

June 24, 2011

Europe Ahead: Summit communiqué eyed for united stance amid faltering confidence

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Chinese Prime Minister confirms that inflation is under control 

June 24, 2011

Chinese Prime Minister confirms that inflation is under control 

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Beach Energy Limited (ASX:BPT) Exits Stake in Ramelius Resources (ASX:RMS)

June 24, 2011

Beach Energy Limited (ASX:BPT) Exits Stake in Ramelius Resources (ASX:RMS)

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German IFO Defies Forecasts and Rises to 3-Month High; Soft Patch Imminent

June 24, 2011

German IFO Defies Forecasts and Rises to 3-Month High; Soft Patch Imminent

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FOREX: US Dollar Weakness on Greek Aid Deal a Buying Opportunity

June 24, 2011

FOREX: US Dollar Weakness on Greek Aid Deal a Buying Opportunity

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US Dollar Pullback to Offer Buying Opportunities

June 24, 2011

US Dollar Pullback to Offer Buying Opportunities

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EURUSD: Looking for Bounce to Short

June 24, 2011

EURUSD: Looking for Bounce to Short

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AUDUSD: Bears Meet Critical Fib Support

June 24, 2011

AUDUSD: Bears Meet Critical Fib Support

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NZDUSD: Upswing Stalls at 0.82 Figure

June 24, 2011

NZDUSD: Upswing Stalls at 0.82 Figure

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USDJPY: Range Bottom to Hold at 80.00?

June 24, 2011

USDJPY: Range Bottom to Hold at 80.00?

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After a Successful Run with EURUSD and GBPUSD We Reevaluate

June 24, 2011

After a Successful Run with EURUSD and GBPUSD We Reevaluate

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Asian Activities Report for June 24, 2011: Iron Ore Holdings Limited (ASX:IOH) Announce Resource Upgrade at Iron Valley Project to 259Mt

June 24, 2011

Asian Activities Report for June 24, 2011: Iron Ore Holdings Limited (ASX:IOH) Announce Resource Upgrade at Iron Valley Project to 259Mt

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S&P 500 Positions to Reverse Higher, Threatening US Dollar

June 24, 2011

S&P 500 Positions to Reverse Higher, Threatening US Dollar

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In Trading, The Best Offense Can Be A Good Defense

June 24, 2011

In Trading, The Best Offense Can Be A Good Defense

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Accenture Q3 profit up 28%

June 24, 2011

Accenture Q3 profit up 28%

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Tibco Software Q2 earnings up 64%

June 24, 2011

Tibco Software Q2 earnings up 64%

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USDCAD: Waiting to Re-Enter Long Trade

June 24, 2011

USDCAD: Waiting to Re-Enter Long Trade

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GBPUSD: Upswing to Yield Sell Entry

June 24, 2011

GBPUSD: Upswing to Yield Sell Entry

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Biden Speaks After Deficit Talks Break Down

June 23, 2011

WASHINGTON — Vice President Joe Biden says bipartisan budget talks have made headway but that the next step is up to President Barack Obama and top congressional leaders. Biden issued a statement Thursday declaring the talks in a state of “abeyance” after Republican negotiators abandoned the talks in a dispute with Democrats over higher taxes. Biden said the goal of the talks was, in his word, “to report our findings back to our respective leaders.” He said those leaders need to determine the scope of an agreement that can tackle the problem and attract bipartisan support. Democrats and Obama have insisted on reducing long-term deficits by cutting spending and increasing tax revenue. Republicans have said tax hikes will not be part of the negotiations.

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Purified Bottled Water Is Not Tap Water, Industry Argues

June 23, 2011

The International Bottled Water Association on Wednesday took on what it described as a “a myth repeated by some anti-bottled water activists that bottled water which comes from municipal water sources is just tap water in a bottle.” At least one group opposed to bottled water, however, shrugged at the public-relations gambit, suggesting that no matter how much processing is involved, bottled water is, on its face, an unnecessary product. The trade group’s new video, posted on YouTube , features an unnamed teenager who has appeared in numerous similar videos for the organization. The young woman — who independently approached the organization as a fan of bottled water, according to IBWA spokesman Tom Lauria, and who has been paid a small stipend for her efforts — takes viewers on a guided tour of a plant belonging to Premium Waters, Inc. in Douglas, Ga. Lauria said that the video was made in response to various claims — including one famously made by the comedy duo Penn & Teller for their Showtime series “Bullshit” — that consumers are being duped into buying, at a substantial markup, water they can get for pennies form their own taps. “The real story here is how much work it takes to turn municipal tap water into a food product that can legally be labeled ‘purified water,’” Lauria said. “What you’re seeing is a huge effort at compliance with federal regulation.” Bottled water comes from a variety of sources, including springs, artesian wells, and yes, municipal water sources — that is to say, from the tap. But according to the video, it’s a long road from tap water to purified water — a road involving several stages of filtering, reverse osmosis, ultra-violet light purification and other processing and testing before the product is ready for market. “Some people insist that bottled water that comes from public water systems is just the same as tap water in a bottle. They make it seem like it just comes from a hose, but that’s not true,” explains the young video hostess, whose identity is not revealed, Lauria said, in deference to a request from her parents. “The process of producing bottled water using a public water system, is more complicated than people realize. The final product is quite different from regular tap water.” WATCH: Whether being different means that purified water is better than tap water is an open question, and one that has repeatedly been raised by environmental groups. They say that — even setting aside the environmental footprint of millions of unnecessary plastic bottles going to landfills, or into waterways, or along sides of roads — regulation of the bottled water industry remains woefully inadequate. The Food and Drug Administration regulates bottled water, while the Environmental Protection Agency monitors public drinking water. “I think this is just another example of them feeling the need to respond to some of the consumer backlash against the bottled water industry,” said Emily Wurth, director of the water program at the group Food & Water Watch . “They’re not really dispelling too many myths.” Wurth pointed by way of example to a 2009 report from the U.S. Government Accountability Office that found, among other things, that bottled water, which is governed as a food item by the FDA, is less strictly regulated, overall, than municipal drinking water overseen by the EPA. “FDA’s bottled water standard of quality regulations generally mirror the Environmental Protection Agency’s (EPA) national primary drinking water regulations,” the GAO noted. But the “FDA’s regulation of bottled water, particularly when compared with EPA’s regulation of tap water, reveal key differences in the agencies’ statutory authorities. Of particular note, FDA does not have the specific statutory authority to require bottlers to use certified laboratories for water quality tests or to report test results, even if violations of the standards are found.” “Among GAO’s other findings, the state requirements to safeguard bottled water often exceed FDA’s, but still are often less comprehensive than state requirements to safeguard tap water,” the report said. “FDA and state bottled water labeling requirements are similar to labeling requirements for other foods, but the information provided to consumers is less than what EPA requires of public water systems under the Safe Drinking Water Act.” A report compiled by the Environmental Working Group in January was the latest to assess the transparency of bottled water makers on the sourcing, processing and purity testing of their products. In that analysis, the group found that 18 percent of brands do not reveal the geographic source of their water. Another 32 percent offer no information on purity tests, EWG found, while 13 percent “publish ‘water quality’ reports that lack any actual testing results.” The International Bottled Water Association responded to that report in detail , asserting among other things that the characterization of tap water being more tightly regulated than bottled water was false. The group noted that the GAO found that “no evidence that bottled water caused any illnesses during the previous five years.” “In contrast,” the group further noted, “EPA scientists and researchers have estimated that tap water consumption is the cause of over 16 million cases of acute gastrointestinal illness (vomiting/diarrhea) in the United States each year.” Still, Wurth said the solution is to make sure that doesn’t happen, rather than create a market for disposable bottles of water. “The way we see it, we should be putting our efforts into protecting our water sources,” Wurth added, “so people aren’t in a position where the feel they have to use bottled water.” Wurth also pointed to other long-standing issues with bottled water, including chemicals used in the manufacture of plastic bottles that are known to be endocrine disrupters . Echoing the GAO report, Wurth also noted that 75 percent of water bottles produced U.S. are still discarded rather than recycled. And while those bottles represent less than 1 percent of the total municipal waste stream, according to government data, producing bottled water is far more energy intensive. A number of college campuses have considered or implemented bottled water bans , and several cities have curtailed purchases of bottled water by city-owned facilities . A ballot initiative in Concord, Mass., that would have made that city the first to issue a blanket ban on bottled water sales was narrowly defeated in April , although voters approved an educational initiative aimed at curbing bottled water use. The IBWA had threatened to sue if such a measure had passed. Last month, the trade group reported that consumption of bottled water was up 3.5 percent in 2010, after two consecutive years of decline attributed to “poor economic conditions.” Total bottled water consumption hit 8.75 billion gallons last year, up from 8.45 billion gallons in 2009, while per-capita consumption increased 2.6 percent in 2010, according to the IBWA. That amounts, on average, to every person in America guzzling about 28.3 gallons of bottled water last year.

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Yahoo CEO Blasted By Shareholder, Called ‘Lame Duck’

June 23, 2011

SAN FRANCISCO — Yahoo Inc. Chairman Roy Bostock sought to defuse speculation about CEO Carol Bartz’s job security at the Internet company’s annual shareholders meeting Thursday, only to have it ignited again at the end of the session by an exasperated investor. After Bostock opened the meeting with an endorsement of Bartz’s performance, the unhappy investor ended it with a five-minute condemnation of Yahoo’s CEO and the entire board of directors. The investor identified himself as someone who personally owns some Yahoo stock and advises funds that own several million of the company’s shares. The Associated Press couldn’t verify his identify because Yahoo banned reporters from the meeting held at a Santa Clara hotel, telling the media to listen to a webcast of the event instead. During his unflattering critique, the investor described Bartz as a “lame duck” who should be immediately bought out of a four-year contract that expires in January 2013. He also called upon Yahoo’s board to consider a variety of dramatic steps, including breaking up or selling the company to lift the stock. Yahoo’s shares have been lagging the rest of the market for so long that Bartz still hasn’t hit any of the price targets set for her when she was hired nearly 2 1/2 years ago. “It’s time for a sense of urgency,” the investor said. Bartz thanked him for his opinion and then added, “That was certainly a downer.” No other shareholder lambasted Bartz during the 75-minute meeting. Shareholder backlashes contributed to the resignations of Yahoo’s two previous CEOs, Terry Semel and company co-founder Jerry Yang. Semel stepped down in June 2007 a week after he came under attack at Yahoo’s annual meeting. Yang stepped aside to make way for Bartz after months of ridicule for the way he handled a takeover bid from Microsoft Corp. Before Thursday’s question-and-answer period, Bartz defended the steps she has taken to streamline Yahoo’s operations and focus the company on delivering more services that will keep its audience of more than 600 million people on its website for longer periods. Sounding a familiar theme of her tenure, Bartz also asked for patience. “Companies don’t’ turn around just because someone wants them to turn around,” she said. “They turn around through hard work.” In his opening remarks, Bostock made it clear he intends to give Bartz more time to finish what she started. “This board is very supportive of Carol and this management team,” Bostock said in his opening remarks. “We are confident that Yahoo is headed in the right direction.” Bartz, 62, has boosted Yahoo’s earnings by cutting costs during her first 2 1/2 years as CEO, but so far hasn’t been able to revive the company’s revenue growth, even amid an upturn in Internet advertising that has enriched rivals Google Inc. and Facebook. The financial lethargy has dragged down Yahoo’s stock, which has been trading in a narrow range since Bartz’s arrival, while the market values of many other Internet companies have been soaring. Yahoo shares fell 14 cents to close Thursday at $15.08. When she was hired in 2009, Bartz received 5 million stock options that won’t start vesting until Yahoo’s stock closes at $17.60 or higher for at least 20 consecutive trading days. It looked like the shares might remain above that threshold until last month when Yahoo disclosed a surprising move that threatens to diminish the value of its 43 percent stake in the Alibaba Group, one of China’s most promising Internet companies. The investment suddenly looked less golden after Yahoo announced Alibaba had spun off its payment service, Alipay, into a company controlled by its CEO, Jack Ma, without compensating Yahoo. Yahoo’s stock price has plunged nearly 20 percent since the May 10 disclosure of the Alipay spinoff. Echoing remarks she made at a meeting with analysts a month ago, Bartz told shareholders Thursday that Yahoo is encouraged by the negotiations seeking compensation Yahoo for the loss of Alipay in its Alibaba investment. Bartz didn’t address unconfirmed media reports that Yahoo is interested in buying Hulu, a service that streams television shows on the Internet. Hulu, whose current owners include Walt Disney Co., News Corp. and Comcast Corp., has said it got an unsolicited buyout offer without identifying the bidder. The investor who spoke out against Yahoo urged the company not to buy Hulu unless the deal meant that Hulu’s CEO, Jason Kilar, would replace Bartz. Bostock faced stinging criticism three years ago when he was just starting out as Yahoo’s chairman and the company balked at a chance to sell itself to Microsoft for $47.5 billion, or $33 per share. Most shareholders are still backing Bartz and Bostock. Based on a preliminary count announced Thursday, Yahoo said about 80 percent of shareholders favored their re-election to the board. About 90 percent favor the re-election of the remaining eight members of the board. After the squandered Microsoft opportunity, only about 60 percent of shareholders backed Bostock’s election to the board in 2008.

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Nathan Newman: Pro-Labor Progressives Should Support The AT&T – T-Mobile Merger

June 23, 2011

Why should progressives care about the proposed merger of AT&T with T-Mobile? Because AT&T is the ONLY unionized wireless company in the country and the merger would ensure that 20,000+ T-Mobile workers would have the chance to join the 43,000 currently unionized AT&T Mobility employees with decent wages and legal protections on the job. There are a range of other likely benefits from the merger, from a projected deployment of high-speed broadband to over 97% of the population and better service for existing AT&T and T-Mobile customers from more efficient integration of available spectrum from both companies. But stepping away from the impact on consumers, which is being endlessly debated, progressives should be focusing as well on the massive gain for workers rights from the merger. A Company That Has Worked with Its Union Employees: In an era when workers rights are on the chopping block even in the public sector, this is a chance to strengthen labor rights in the private sector, where a multi-decade war on the labor movement has decimated most unions. AT&T has actually been and remained a unique employer, agreeing to stay neutral when workers seek to organize unions in various units and recognizing the union whenever a majority of those workers sign cards requesting it. Based on this model approach to employee rights, American Rights at Work, which led the drive for the Employee Free Choice Act, picked AT&T as a model employer in its 2007 “Partnerships that Work” list where they wrote: “AT&T and its unions serve as allies and business partners working to advance the success of the company.” When AT&T has acquired new units in recent years, the workers have been able to choose to join the union without the usual employer intimidation that is constant in other firms. In fact, unionized workers at AT&T’s Mobility wireless division grew from 9300 members in 2001 to 43,000 today, most of that growth during the heart of the Bush era. When AT&T CEO Randall Stephenson was asked about workers rights in an investor conference call about the proposed T-Mobile merger, he said : “We have with the CWA the Communication Workers of America] a card check/neutrality agreement so if those employees decide they want to be represented by the CWA that process is there … In fact you saw that with the AT&T Wireless deal. You saw the CWA begin to represent those employees in fairly short order. That’s how that process will work out.” Can you imagine that statement coming from other company executives? In an era when Boeing is trying to bust its unions by opening non-union production lines in South Carolina, Wal-Mart routinely intimidates its employees seeking a voice on the job, and a host of other employers wage endless day-to-day attacks on labor rights, this merger is one of the few opportunities where tens of thousands of workers at a place like T-Mobile will be able to ask to have a union recognized without risking the loss of their jobs. The Anti-Union Alternatives: Right now, workers at T-Mobile face a complete atmosphere or fear and intimidation. On top of the normal threats of being fired if they form a union, T-Mobile workers were told by the company that they would be punished if they said anything negative about the company even on their personal Facebook page. This led to charges before the National Labor Relations Board , which were just recently settled with the company being required as part of the settlement to tell employees they actually did have free speech rights on their own social networking pages. With the parent of T-Mobile, Deutsche Telekom, looking to pull out of the U.S. market, the possibility looms that if AT&T does not acquire T-Mobile, the company might be merged with the even more viciously anti-union Sprint Nextel. Sprint has a long history of being arguably the most anti-worker company in the telecom industry, racking up multiple NLRB charges in repeated organizing campaigns. Notoriously, Sprint even shut down a whole subsidiary in San Francisco called La Conexion Familiar (the Family Connection), which sold long-distance service to the Spanish-speaking community, when those workers voted for a union. With Sprint’s majority ownership of telecom company Clearwire, a merged T-Mobile-Sprint would create a viciously anti-union gorilla controlling more spectrum than any other firm in the industry. So having T-Mobile workers land with AT&T is all the more important given that alternative. Why Protecting Labor Rights in Telecom Matters: Strengthening the labor movement in a major private sector industry is important all by itself, but what makes the 43,000 unionized wireless workers at AT&T — hopefully to be joined by the 20,000+ T-Mobile workers legally eligible to join a union — is that they are one of the few unionized outposts in the growing high-technology sector. The labor movement needs to expand in that sector and AT&T Mobility can be a model for how a union in a technology company can work with its employer both to protect workers rights and build out new technology for customers. Also, notably, AT&T’s wireless unionized workforce is heavily southern in a country where few workers in the South have ever had a chance to unionized. AT&T’s corporate headquarters are in Texas, reflecting its origin as the Southwestern Bell “baby bell,” which went on to acquire other telephone companies around the country, including AT&T long distance (from which it borrowed a new name). With thousands of southern wireless workers joining the union, this has meant that the telecom industry has actually been a beacon of union success in a region notoriously hostile to labor. Progressives Should Stand with Labor on AT&T-T-Mobile Merger: A number of consumer groups have argued against the merger as potentially harming consumers and competition. I’ll write more on this in a future column, but these consumer worries seem overwrought. Post-merger, AT&T will still be a minority player in the wireless world. The large majority of the wireless industry and, unfortunately, the majority of workers in the industry will be in the remaining non-union companies, all looking to undercut AT&T at the expense of their own workers’ rights. And competition in the cell phone industry, if anything, is exploding. Right now, anyone with an AT&T iPhone, for example, can bypass AT&T’s own phone plan to make free Skype phone calls, use Facebook’s Beluga texting service as an alternative to AT&T’s own texting plan and even bypass AT&T’s dataplans with wi-fi at home, at work or at coffee shops all over. Hundreds of apps are appearing on smartphones every day to compete with services previously only available from the wireless companies themselves. When you contrast hypothetical competition worries with the concrete gains in workers rights for tens of thousands of T-Mobile workers, it’s hard to argue this is a close call for progressives. This is one merger pro-labor progressives should be lining up to support. Disclosure: Nathan Newman has consulted on technology issues with the Communication Workers of America, which supports the merger. His views in his columns are his own.

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Simon Johnson: Fiscal Contraction Hurts Economic Expansion

June 23, 2011

The United States has a large budget deficit and a ratio of debt to gross domestic product that, in most projections, continues to rise over time. Some House and Senate Republicans are arguing strongly that this situation calls for big, immediate cuts in government spending — for example, as part of any agreement to increase the federal government’s debt ceiling.

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Nicholas Carroll: Three Sound Legal and Moral Reasons For Strategic Default

June 23, 2011

The standard justification is that “It’s in the contract that the bank gets the house if you default.” Actually, that clause is legally a remedy to a worst-case scenario — not an expected part of the deal. There are three much stronger justifications. The first is legal and moral: fraud . A huge percentage of the homes sold after 2000 were sold to unsophisticated buyers through a mixture of assurances that their homes would appreciate, could be used as ATMs in the meantime, and that there was no conceivable problem that the mortgage broker could not wiggle around to refinance the home again, usually at even better terms. Yes, many of the buyers were naive and reckless, and suffering both gullibility and cupidity. But the lenders were dishonest, and preyed on those exact weaknesses. Under these circumstances, the culpability falls on the professional. No, there is no solid legal case against the mortgage brokers, because there were probably no secret summit meetings planning a conspiracy, and probably not many incriminating emails either. There was simply the word on the grapevine, “Fannie Mae will finance anything! Commission times are here!” Nevertheless, whether or not a winning case can be made in court: lying to customers to make a profit, to the customers’ financial harm , is fraud. And substantial fraud in the course of a sale undercuts the standing of any contract. (As an added note, every mortgage broker who encouraged a borrower to lie on any loan application involving Federal funding — meaning almost all mortgages — was accessory before the fact to violation of Federal law USC 18, Section 1014 . In other words, equally guilty.) The second is moral and legal : no living American has escaped a continual and confident advertising campaign stating flatly that buying a house is a sound financial investment, and a necessary or even assured part of planning a financially sound retirement. Pushing home ownership upon Americans as a good investment was not merely real estate agent hype: it was conceived and orchestrated by the Federal government in the early 1900s, pushed by realtors’ organizations, and trumpeted by media for nearly a century until the bubble burst. (Readably described online in Walk Away: The Rise and Fall of the Home-Ownership Myth by Douglas French.) Americans were assured that a) a home was a winning investment, in fact the winning investment in modern America, and b) that they couldn’t lose. Americans relied on those assurances when they bought the homes . Now that the promise has proved false, they have every moral right to default, because the promised investment didn’t pan out. Again, no solid legal case, because there is no single defendant to put on trial — how do you try the Federal government, mortgage industry, and media going back 100 years? Nevertheless, in legal terms, equitable remedies come to mind, notably the doctrine of reliance . Reading the history of equitable remedy can give you a headache, but basically it means “fair dealing.” Fair dealing, the buyers did not get. (Lying to make a profit is not “just show biz.” When I bought my first house in the 1980s, I asked the mortgage broker what he thought of the neighborhood’s chances of appreciation. He answered, “I write mortgages. Ask your real estate agent.” In other words, “I don’t do hype.” Times had changed by 2000, it appears.) The third is morally repugnant : In 50 years of a more-or-less steadily rising real estate market, banks foreclosed on millions of homes, most of which were worth significantly more than the mortgage. The “defaulters” then were the laid-off, the divorced, and the ill edging towards medical bankruptcy. Though most states’ laws mandate that when a foreclosed home is auctioned off, the surplus should be paid to the homeowner, there is usually no surplus. This is because there are not many potential buyers with enough cash and nerve to appear at the courthouse steps and smack down a certified check for a house they haven’t even had a chance to inspect. So the houses usually went back to the bank for the amount of the mortgage, and the banks then flipped them for a profit, quite legally — after the auction was complete and the title had been transferred to them. This makes contract-thumping moralists more than absurd when they shriek “that the bank didn’t stand to gain on the appreciation, so they shouldn’t bear the burden of risking depreciation.” On the contrary, the banks did gain on the appreciation for 50 years; they lent out money on the assurance of their bean-counters that a certain percentage of tasty homes could be snapped up for nothing, and then perched on their spider webs waiting for the victims of misfortune. Today the banksters cry in their champagne about the collapse of American morals that they themselves never subscribed to. But the banks have long since gotten their pound of flesh. Now it is time to walk away from false promises, free the money locked up in homes, and let it escape from the mortgage bubble so it can flow back into the Main Street economy.   This Blogger’s Books Walk Away From Debt For a Better Future by Nicholas Carroll

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Federal Judge To Resentence Media Mogul Conrad Black

June 23, 2011

CHICAGO — Competing portraits of Conrad Black – once one of the world’s most powerful media moguls – will be on display Friday in Chicago at his resentencing hearing, where a judge will decide whether he heads back behind bars or remains free for good. The Canadian-born businessman is a devil-may-care elitist who looks down his nose at the rest of humanity, according to prosecutors; and a gentleman, unbowed by adversity, who quietly has gone about helping others, counters the defense. Which portrayal U.S. District Judge Amy St. Eve accepts may factor into her ruling about whether to return Black to a Florida federal prison for several more years or, as his lawyers have asked, to resentence him to time already served. The resentencing is a climax of a long legal saga for Black, 66, who rubbed shoulders with the rich and powerful before his fall to disgrace, convicted in 2007 and sentenced to 6 1/2 years for defrauding investors in Hollinger International Inc. Black, whose empire once included the Chicago Sun-Times, The Daily Telegraph of London and small papers across the U.S. and Canada, was freed on bail after serving two years to let him to pursue what would be partially successful appeals. The 7th U.S. Circuit Court last year tossed out two of Black’s fraud convictions but upheld a conviction for fraud and one for obstruction of justice. And it said Judge St. Eve would have to sentence Black again for those two standing counts. Despite the nullified counts, prosecutors are asking St. Eve to hand the burly, silvery-haired Black the same 6 1/2-year sentence she originally meted out in 2007, meaning he would have to spend about 4 1/2 more years in prison. “He fails to acknowledge his central role in destroying Hollinger International through greed and lies, instead blaming the government and others for what he describes as an unjust persecution,” prosecutors said in a recent filing. Black’s lawyers, in turn, have accused government attorneys of vindictiveness. In filings of their own, they say the fervor prosecutors have shown in justifying the stiffer sentence displays “a drive-by disparagement of Mr. Black which reveals nothing but the intensity of the governments dislike for him …” A major point of contention Friday is likely to be accounts of Black’s behavior during his two years in prison. The defense argues Black was a model prisoner, noting that the accomplished biographer – whose subjects have included Franklin D. Roosevelt and Richard Nixon – helped teach inmates American history and economics; and gladly offered advice about business and other matters to prisoners who constantly approached him. “In a place where hope is a rare commodity, Conrad provided at least a glimmer of it to countless inmates,” one inmate wrote in a letter, cited by the defense in a recent filing. Prosecutors say the defense paints too rosy a picture of Black’s prison life. One prison employee, Tammy Padgett, claimed in an affidavit filed by prosecutors that Black had arranged for inmates – “acting like servants” – to clean and cook for him, to iron his clothes, mop his floor and perform other chores. Another employee told her that Black once insisted that she address him as “Lord Black,” after an honorary title bestowed on him by Britain, Padgett added. The defense denied both characterizations. After his conviction, the defense showed letters from such celebrities as Sir Elton John, describing Black as someone who had devoted much of his life to helping charities. It’s not clear if his attorneys will roll out similar letters vouching for Black on Friday. His big chance to squash the convictions arose in June of 2010, when the U.S. Supreme Court sharply curtailed disputed “honest services” laws that underpinned part of Black’s case. The appellate court that reversed two of Black’s convictions cited that landmark ruling. But the appellate judges said the one fraud and obstruction of justice convictions were not affected by the Supreme Court’s ruling. The fraud conviction, the judges concluded, involved Black and others taking $600,000 and had nothing to do with honest services: It was, they asserted, straightforward theft. Defense lawyers have criticized honest services laws as vague and a last resort of prosecutors when they couldn’t show money changed hands. Watchdogs countered they were key to fighting white-collar and public fraud.

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Geithner Defends Small Business Loan Fund

June 23, 2011

WASHINGTON (David Lawder) – Treasury Secretary Timothy Geithner defended the Obama administration’s initiative to aid small business lending on Wednesday, blaming delays in disbursing capital to banks on a cautious approach by regulators. Geithner, testifying before the House of Representatives Small Business Committee, fielded questions from lawmakers as to why none of the $30 billion in capital for small banks in the program had been disbursed. The program was approved by Congress last December. “I wish it were otherwise, but we’re doing what you would expect us to do,” Geithner said. “We are being careful with the taxpayers’ money.” He said that bank regulators, which must approve the requests before passing them onto Treasury, wanted to ensure that capital was not disbursed to banks that are not viable. “We can’t justify helping to keep them alive,” Geithner said of such banks. The Treasury chief said that so far, the program has received 869 applications from banks for about $11.6 billion in capital, or just over one third of the available funds. Treasury will soon begin to disburse funds from the program, which aims to leverage $300 billion in new bank loans to small firms, which are considered an engine of job growth in the economy. Under the program, banks will pay interest rates for the funds ranging from 1.0 percent to 5.0 percent. The more they increase their lending with the funds, the lower the rate they will pay. CONFIDENCE FROM BUDGET DEAL Several lawmakers on the Republican-controlled House panel also suggested that small businesses may increase hiring if they had more certainty about the federal budget deficit and their future taxes. Geithner agreed, but said a bigger challenge was uncertainty about the strength of recovery and said a budget deal needed to protect growth. “It’s important not just to bring more gravity to our fiscal position and demonstrate that we can live within our means, but we have to do that in a way that that’s going to be good for growth. Good for the economy in the near term and good for the economy in the long run, and that’s a complicated challenge,” In his prepared remarks, Geithner said the Obama administration would make every effort to aid small firms. “There is no single silver bullet, which is why we have taken a multifaceted approach,” Geithner said in remarks to the House of Representatives Small Business Committee. Geithner also outlined measures that the Obama administration has undertaken, including tax relief, public-private partnerships, assistance to small exporters and efforts to award federal contracts to small businesses. Geithner said small companies faced heavy challenges because so many were concentrated in sectors like construction and real estate that were hit especially hard by the recession and bursting of the real estate bubble. (Additional reporting by Glenn Somerville; Editing by James Dalgleish) Copyright 2011 Thomson Reuters. Click for Restrictions .

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The Future According To Eric Schmidt

June 23, 2011

On stage Wednesday at Cannes Lions, Eric Schmidt seemed like the kind of man–perhaps the only man, other than Steve Jobs–who could effortlessly convince an international crowd of 20 and 30-somethings to join a suicide cult and ascend with him to the heavens. Google’s executive chairman has that wealthy California brand of optimism that is as infectious as it is understated. He describes the future of human existence the same calm way chef Thomas Keller might describe his roast chicken. Yes, it will change your life. But it’s only chicken. What does Schmidt’s future look like?

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New Hampshire Republicans Restrict Minimum Wage

June 23, 2011

New Hampshire legislators voted to override a veto by Democratic Gov. John Lynch on Wednesday, paving the way for a new law to restrict the state’s minimum wage. The bill, sponsored by Republican Rep. Carol McGuire and strongly backed by GOP leadership, automatically ties the state minimum wage to the federal minimum wage, assuring that New Hampshire’s rate is as low as it can legally be. With its minimum wage currently set at the federal rate of $7.25 per hour, New Hampshire is ensuring that it will continue to have the lowest minimum wage in all of New England. Maine, Vermont, Massachusetts, Rhode Island and Connecticut all have state minimum wages between $7.40 and $8.25 an hour. The fight over McGuire’s bill led to some unusual stances for New Hampshire politicians. McGuire has been honored by the libertarian-leaning New Hampshire Liberty Alliance and enjoyed Tea Party support, yet she essentially argued that the state should defer to the feds when it comes to the minimum wage. Meanwhile, the Democratic governor made a states’ rights argument for killing McGuire’s bill. Lynch said New Hampshire shouldn’t relinquish its right to set its own wage rate. The governor’s spokesman, Colin Manning, told HuffPost that as a result of the law New Hampshire now “cedes state control and authority” to the federal government. “New Hampshire has had a minimum wage law since 1949, and neither our citizens nor our businesses have called for its repeal,” Manning wrote in an email. “There is no need to undermine our state’s economic strategy or cede our state authority to the federal government, which is why the governor vetoed the bill.” Calls to McGuire and Republican House Speaker William O’Brien seeking comment were not returned. But in a statement after Lynch’s veto, O’Brien accused the governor of acting on “an anti-business philosophy” and “removing the ‘open for business’ sign” from New Hampshire by trying to maintain the current minimum wage flexibility. “There is no reason for New Hampshire to set ourselves higher than the national average and make ourselves less competitive for these workers who need to gain experience,” he said. Opponents of McGuire’s bill point out that the previous law did not set the New Hampshire minimum wage any higher than the federal rate — it only gave the state the option to do so if it pleased. Also, New Hampshire does not appear to have suffered from a competitive disadvantage, given that the minimum wages in neighboring states were already set higher. Several states have raised their minimum wage in recent years, but GOP leaders and business interests have assaulted some of those bumps as job killers. Missouri Republicans tried and failed to cap their state’s minimum wage earlier this year . Then in May, a Florida federal judge ruled that a state agency had been illegally suppressing its minimum wage. And business groups in Maine have lobbied for the creation of a ” training wage ” that would let companies pay teenagers less than the state minimum. The current federal minimum wage of $7.25 per hour translates into a $15,000 salary for a full-time worker. Many economists now say that higher minimum wages can provide a boost to the sluggish economic recovery. “Given the fact that minimum wage workers spend every penny they earn in their local businesses, a strong wage floor is also vital to stimulating the consumer spending necessary for real and lasting economic recovery,” said Christine Owens, executive director of the National Employment Law Project, in a statement decrying legislators’ override of Lynch’s veto. Earlier this year, Democratic Rep. Terie Norelli called McGuire’s bill “just the beginning of what I think is a real assault on New Hampshire workers and wages and irresponsible legislation.” Last month, Lynch vetoed a bill brought forth by Republicans that would have converted New Hampshire into a so-called right-to-work state. The bill would prohibit collective bargaining contracts that require workers to pay union dues if they are not union members. It would make New Hampshire the first right-to-work state in New England. O’Brien has said Republicans will try to override Lynch’s veto of that bill in the fall.

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Greece Seals Austerity Deal With EU And IMF: Reuters

June 23, 2011

ATHENS (Ingrid Melander) – Greece has won the consent of a team of EU-IMF inspectors for its new five-year austerity plan on Thursday after committing to an additional round of tax rises and spending cuts, sources with knowledge of the talks said. “We have a deal,” said one of the sources. Another source close to the negotiations said that a few remaining technical details would be finalized on Friday. Finance Minister Evangelos Venizelos announced on Thursday Greece’s Socialist government would lower the minimum threshold for income tax to 8,000 euros a year, increase the tax on heating oil and impose a one-off solidarity levy on income of between 1 and 5 percent. (Editing by Daniel Flynn) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Christopher Mondini: Three Questions to Get Your Government Relations Job Done — and Get Ahead

June 23, 2011

So you are still settling into your new role: Global Public Policy Director at a dynamic internet company — a company intent on providing services to every corner of this complex and conflicted planet. Your strategic, forward-thinking approach is what landed you the job and you are eager to establish productive relations with governments and regulators everywhere. Last month, you attended the first “e-G8″ summit in Paris and heard President Sarkozy assert that governments must remain in charge of regulating and policing the Internet. Two weeks later, you learned how the U.S. State Department is financing the creation of stealth networks for activists to communicate outside the reach of governments. You wonder (worry) whether your company has been approached to help. Already your company’s role in promoting democratic revolutions and responding to natural disasters has been hailed as heroic, while during the same, short time period, NGOs have vilified you for complying with government orders to filter content and share user data. What else is on your plate? Your CEO has been asked to comment in the debate over civil liberties versus national security surveillance; you cringe at weekly media reports about data breaches or hacker attacks in your sector; your inbox is overflowing, not only with requests to testify before legislative committees, but also with the latest recommended guidelines from helpful institutions like the OECD and United Nations . You knew your job would not be easy. Fortunately, you started by confirming at the outset that your company has well-documented procedures for the more clear-cut policy areas related to privacy, criminal justice and law enforcement. Your cooperation in combating child exploitation, terrorist violence, piracy, trafficking and other crimes is unassailable, though you lament the jurisdictional contradictions that continually arise. But beyond just jurisdictional conflicts, there are grey areas — where legal and ethical considerations may be at odds, where regulations don’t yet exist or where, given the growing prominence of your brand, you’re called upon to “do the right thing”. You have pledged to cooperate with governments wherever you do business, but how much? Here are three questions to streamline your public policy decision-making process going forward: How truly global are you? If you are US-based and Hillary Clinton has praised you in a speech, it’s too late. You will never be perceived outside the US as anything other than a US company. But if you haven’t reached a level of prominence where you are hosting presidential town halls, you can still ask this question, no matter where you are based. Where are your users? Where are your employees? Where are your servers? How is your brand perceived? Are you susceptible to appeals to patriotism where the law (and your user agreements) may be unclear about a course of action? What do your people (and your stakeholders) stand for? Some companies get so caught up in chasing their IPOs that they can be unprepared for the onslaught of pressure groups and investor activists that come with going public. Ask yourself which protesters, if any, will show up at your first shareholder meeting. If you are not a publicly traded company, look to your users, employees and the civic institutions where you operate. Engage with them on what principles to abide by. Perform an internal “principles audit” so you can articulate your values to stakeholders, including those beyond your user population. Are you at least doing something ? Where regulation is nonexistent, contradictory, pending or shifting, you need to demonstrate that you are working to get in front of complex, controversial issues. These range from the environmental sustainability of data centers, to conflict minerals in your hardware, to human rights and privacy protections. What efforts can you point to when grievances from NGOs, angry shareholders or the plaintiffs’ bar arise? You need to know now, because government inquiry is sure to follow. As busy as you are, here’s why you still need to address these three questions: because working to gain answers before deploying an army of lobbyists and before the next public policy snafu will set you on a course that not only saves on lobbying, communications and crisis management costs, but builds a stronger company. In the process you can change a job that’s largely about complying with government regulations to one that contributes social value on a global scale. How’s that for strategic and forward-thinking?  

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Brocade Appoints Dan Fairfax as New CFO

June 23, 2011

SAN JOSE, CA–(Marketwire – Jun 23, 2011) – Brocade ® ( NASDAQ : BRCD ) announced today that Richard Deranleau, Brocade Chief Financial Officer, has left the company effective as of June 20, 2011 to pursue other interests and that Dan Fairfax has been appointed Brocade’s new Chief Financial Officer.

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Jim Randel: Why Credit Cards?

June 23, 2011

I feel that far too many commentators go overboard advocating a “no debt” approach to credit cards. Yes, credit cards are seductive. And, getting into credit card debt is so very easy. What’s more, credit card issuers can be tricky, maximizing profits by tripping people up with hidden or excess fees. But, the logical conclusion is not to avoid all credit cards and/or debt. There are good reasons for credit cards and for debt. Here are a couple of the headlines: Debt is not the devil. Excessive debt is the devil. America was built on the use of responsible debt. Entrepreneurs, developers, industrialists — debt was almost always part of the equation. Debt means risk. Reward and risk are two sides of the same coin. Using a credit card to incur debt is not the enemy. Using a credit card irresponsibly is the enemy. Businesses have been started with credit cards. (It is rumored that Larry Paige and Sergei Brin maxed out their credit cards when starting Google.) Using a credit card is all about float. By using a credit card you buy time. You purchase something on January 1st. You have the use and enjoyment of that purchase immediately. Based on where you are in your credit card billing cycle, you do not have to pay for your acquisition for up to say 45 days. Those 45 days are float — the period between when you enjoy something, and when you have to pay for it. But that is only the first part of float. If you cannot pay for it (or do not want to) when payment is due, you have to pay interest on the debt you are financing with your credit card. The real question is whether the interest you are paying (and the resulting pain) is worth more to you than the enjoyment you receive from the purchase you made on January 1st (until final payment is made). The analysis — whether with credit cards or any other type of debt — is pretty much always the same: risk – reward. By incurring debt you allow yourself to leverage time and money. You buy something today that you either could not afford or, you buy something today larger than you could otherwise afford. If you can use or enjoy what you purchased to a degree greater than the risk (that you cannot repay) and/or pain (the interest payments), then debt can make sense. One last point: like it or not, we are a credit-driven society. The responsible use of credit cards will have a major impact on your credit score. Your credit score can be critical to your life beyond just the cost of borrowing — e.g., the premiums you pay for insurance and even your employability. The key, of course, is to use the credit cards/debt in a way that enhances your credit score. It is easy to attack credit cards and credit card issuers. Many issuers have been overly aggressive in marketing credit cards — putting cards in the wrong hands. And some issuers have been unfair and deceitful in billing practices. But, ultimately, the use of a credit card is an individual decision. If you are one who will not be able to control your usage, then by all means cut up every card you have and never get another. But, if you can deal with the prospect of debt, and use it to your advantage, then credit cards can be a great convenience. Jim Randel is the founder of Rand Media Co. and the primary author of The Skinny On Book series. His latest publication titled Street Smarts teaches 125 critical life skills that are not traditionally taught at universities.

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Dylan Kendall: Biscuit Marketing: What Nonprofits Can Learn About Building Relationships From Popeyes

June 23, 2011

Brent Leary, social media expert and man about town, was seated at an award dinner for CRM Magazine with friend and work-partner Michael Thomas. Paul “PJ” Johnston, the founder of Entellium , a competitor in the Customer Relationship Management industry, was also seated at the same table. All got along well, sharing stories. A few weeks later, Michael came across an article in CRM Magazine where Brent was quoted from the dinner. Michael sent Brent the following tweet : “@brentleary saw where you were quoted…remember the conversations with Entellium?” Brent tweets back “@mwthomasNA I knew there was something crooked about him [PJ] when I found out he stole a biscuit off my plate at the CRM mag award dinner! ☺” So Michael, trying to out-funny Brent, tweets “Uh…I confess, it was me…I love biscuits!” Here’s where Popeyes Chicken (and the lesson) comes in . Popeyes, monitoring Twitter for buzzwords, humorously adds to the conversation: @Brentleary I can testify that @mwthomasNA is a biscuit fanatic. He can wolf them down. It would make quite a YouTube video. No hard sell, no product push. Just a little fun. The outcome? Brent started following Popeyes on Twitter, blogged about the tweet on his heavily-trafficked site, interviewed Popeyes Vice President of Communications and Marketing on his webinar, and went to Popeyes himself the next to buy a biscuit. All this out of 140 characters. Social media has changed the face of communications today. Gone is the power found in the faceless corporation — private or public — that relies on putting walls between itself and customers to create a feeling of credibility and importance. Taking its place is power based on genuine relationships with people, relationships that inspire loyalty and Word of Mouth marketing. Rohit Bhargava discusses this trend as it applies to for-profit ventures, explaining that “every element of your business, from your interactions with your customers to the packaging of your product, is an element of your brand personality, and these are the elements that inspire delight or indifference among your customers.” Personality Not Included , 2008 Nonprofit organizations are not exempt from these new marketing waves, being exposed to the same conditions resulting from the prolific use of the Internet and social media. Over 79% of all Americans use the Internet averaging 2,750 web page views per month. What does this mean for nonprofit organizations? Nonprofits need to inspire delight or suffer the indifference of donors who have an unprecedented choice of agencies to support, many sharing the same mission and goals. All nonprofits should have optimized websites that allow them to easily keep content fresh on the home page. Statistically 94% of all first-time visitors to any website are there doing “research,” only 6% are ready to purchase or donate. This means fresh content on your home page is likely to inspire a repeat visit. All nonprofits should have a call to action or CTA on every page. What is the action you want your visitor to take on each page? Leave his email address, donate to the cause, or buy a product? And most importantly, nonprofits need to be talking to their “people” — their supporters, volunteers and networks. To do this, agencies should have a social media policy that sets guidelines about frequency, voice and tone. The nonprofit’s personality should color all communication efforts from how content is distributed online to impromptu dialogues between donors and volunteers. If participated in respectfully and with an authentic voice, like Popeyes Chicken, these conversations can become the pathway to new friends who are more likely to get involved because they are being personally invited. Nonprofits cannot afford to think they are exempt from customer relationship management in cyberspace. Plunking down a “flag” website on the premise that if you build it, then they will come is no longer enough. Internet real estate is plentiful — strategic use of social media to build open, engaging and easily recognizable platforms may surprise you with the results.

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One Contentious Issue Produces Position-Shifts From Four GOP Presidential Candidates

June 23, 2011

Former Massachusetts governor Mitt Romney has faced sharp criticism from conservatives over the health care reform package he signed into law in the Bay State during his tenure, and more specifically, the plan’s inclusion of a mandate that individuals purchase health insurance. Romney, however, is not the only Republican running for president in the next election cycle who has voiced support for the measure — a key element of the health care law signed by President Barack Obama — in the past only to later criticize it. Former House Speaker Newt Gingrich , former Utah governor Jon Huntsman and former Minnesota governor Tim Pawlenty have all spoken out in favor of the individual mandate. Below, a look at the GOP hopefuls who supported the measure before coming out against it. WATCH:

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Why An Ice Cream Cone Now Costs $4.25

June 23, 2011

If you’ve gone to an ice cream parlor recently, you may have noticed that a cone (or cup) of ice cream has gotten more expensive. But before you chalk it up to regular inflation (as you might with rising prices for stamps or movie tickets), you should read this investigation of the cost of ice cream in the Boston Globe . It turns out that recent increases in ice cream costs have global causes—from skyrocketing demand for dairy in suburban Shanghai to a beet-killing cyclone in Australian farm country. The piece, by following the economics of a single menu item, provides an illuminating window into the food price hikes that have affected people in every part of the world over the last several years. (Via Kottke )

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Stephen McAdaragh Joins the McGuire Agent Team in Noe Valley

June 23, 2011

SAN FRANCISCO, CA–(Marketwire – Jun 23, 2011) – We’re pleased to announce San Francisco REALTOR® Stephen McArdaragh, who began his career working with developers in new home sales, as the newest addition to McGuire’s sales team.

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