October 2011

Manager Of World’s Largest Bond Fund: ‘I’m Just Having A Bad Year’

October 16, 2011

NEW YORK (Jennifer Ablan) – Bill Gross, manager of the world’s largest bond fund, apologized to his investors late Friday for his poor performance, saying “I’m just having a bad year.” In a Special Edition letter posted on PIMCO’s website, Gross, who runs the $242 billion PIMCO Total Return portfolio, wrote that he underestimated the contagion effect from the Europe debt crisis and the U.S. debt ceiling debacle. “As Europe’s crisis and the U.S. debt ceiling debacle turned developed economies toward a potential recession, the Total Return Fund had too little risk off and too much risk on,” said Gross, who also shares the title of co-chief investment officer at Pacific Investment Management Co. with Mohamed El-Erian. Gross, known as the “bond king”, came under heavy criticism earlier this year when he bet heavily against U.S. Treasuries which have turned out to be one of the biggest outperformers of 2011. His fund’s poor performance led Gross to simply call his open letter to investors, “Mea Culpa.” It is up only 1.06 percent year to date versus the benchmark BarCap U.S. Aggregate Index which is up 3.99 percent. Gross, who helps manage more than $1.2 trillion at PIMCO, said late Friday the Total Return fund had positions in German bonds and Canadian Treasuries to counter the U.S. underweight position, “but not enough.” He added that minor percentages of emerging market corporate and sovereign debt, effectively denominated in their local non-dollar currencies, did not perform well either. “The simple fact is that the portfolio at midyear was positioned for what we call a “New Normal” developed world economy – 2.0 percent real growth and 2 percent inflation,” Gross said. That’s all changed, of course. Gross said PIMCO’s internal growth forecast for developed economies “is now zero percent over the coming several quarters and the portfolio more accurately reflects this posture.” Last week, Reuters reported that Gross ramped up buying of mortgage-backed securities in September, albeit by using leverage, on the likelihood the Federal Reserve’s reinvestment program in those securities will boost prices significantly. Gross increased mortgage debt to 38 percent of assets in September, from 32 percent in August, as the U.S. central bank announced last month that it “will now reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities.” His move into mortgage-backed securities also comes as the PIMCO Total Return fund’s cash equivalents and money-market securities fell to negative 19 percent September, from negative 9.0 percent in August. In having a so-called negative position in cash equivalents and money-market securities, it is an indication of using derivatives and short-term securities as collateral in order to boost the fund’s buying power with leverage. Gross’ move to seek more yield by putting more money into mortgage bonds is yet another bold bet which many will be watching after Gross’s call on Treasuries cost his fund’s performance. In doing so, he is effectively extending the average duration of his fund’s investments, making them potentially more exposed to a rise interest rates. Clearly, Gross is betting interest rates will remain low for some time as the world economy continues to struggle. In his “mea culpa” letter, Gross resorted to baseball analogies and metaphors. He closed his letter by saying: “This is big league ball, where your ticket holders come to the park expecting not a circus-Willie Mays-catch but more wins than losses and a year-end performance that places your bond assets near the top of the standings.” He added, “Baseball metaphors aside, we know why PIMCO Total Return is arguably the largest and hopefully the greatest bond fund in the world.” Copyright 2011 Thomson Reuters. Click for Restrictions .

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US judge says Al-Qaeda must pay USD9.4b for Sep 11 attacks

October 16, 2011

US judge says Al-Qaeda must pay USD9.4b for Sep 11 attacks

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US, Britain welcome euro crisis action at G20 meeting

October 16, 2011

US, Britain welcome euro crisis action at G20 meeting

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G20 finance ministers under pressure to fix Europe

October 16, 2011

G20 finance ministers under pressure to fix Europe

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Oil hovers above $84 ahead of US economic data

October 16, 2011

Oil hovers above $84 ahead of US economic data

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Solo travel offers unique perspective for women

October 16, 2011

Solo travel offers unique perspective for women

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India’s Reliance Q2 net profit up 15.8% to USD1.16b

October 16, 2011

India’s Reliance Q2 net profit up 15.8% to USD1.16b

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Italian tour operator seeks bankruptcy protection

October 16, 2011

Italian tour operator seeks bankruptcy protection

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Tens of thousands march in Rome anti-capitalist protest

October 16, 2011

Tens of thousands march in Rome anti-capitalist protest

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EU considering massive cuts to food aid for poor

October 16, 2011

EU considering massive cuts to food aid for poor

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Britain’s Aug construction output up 0.4%

October 16, 2011

Britain’s Aug construction output up 0.4%

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Cathay Pacific Airways’ Sep cargo, mail volumes drop 10%

October 16, 2011

Cathay Pacific Airways’ Sep cargo, mail volumes drop 10%

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US fiscal 2011 budget deficit hits USD1.3tr

October 16, 2011

US fiscal 2011 budget deficit hits USD1.3tr

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US- Khosla focuses 65% of IV fund on clean technology

October 16, 2011

US- Khosla focuses 65% of IV fund on clean technology

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Iran says to export Jet fuel soon

October 16, 2011

Iran says to export Jet fuel soon

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Qantas to cancel 400 flights next month

October 16, 2011

Qantas to cancel 400 flights next month

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US- South Carolina mine sparks mimi-gold rush

October 16, 2011

US- South Carolina mine sparks mimi-gold rush

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US treasury secretary, EU official hold talks

October 16, 2011

US treasury secretary, EU official hold talks

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Obama, Merkel discuss economic crisis in Eurozone

October 16, 2011

Obama, Merkel discuss economic crisis in Eurozone

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US deficit increases to 1.3 trillion

October 16, 2011

US deficit increases to 1.3 trillion

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G20 Pressure on Euro Debt

October 16, 2011

G20 Pressure on Euro Debt

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China Registers 12% Increase in Millionaires Numbers in 2012: Report

October 16, 2011

China Registers 12% Increase in Millionaires Numbers in 2012: Report

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China Issues Regulations on FDI with RMB Settlement

October 16, 2011

China Issues Regulations on FDI with RMB Settlement

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Swiss- Acino to acquire Cephalon’s ME business

October 16, 2011

Swiss- Acino to acquire Cephalon’s ME business

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Italy must adopt reform measures: CB

October 16, 2011

Italy must adopt reform measures: CB

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Marathon man undone by bus trip

October 16, 2011

Marathon man undone by bus trip

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France forces chefs to confess boil-in-the-bag fare

October 16, 2011

France forces chefs to confess boil-in-the-bag fare

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Environmentalists call for toilets on Everest

October 16, 2011

Environmentalists call for toilets on Everest

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California men sell guns from hot dog stand

October 16, 2011

California men sell guns from hot dog stand

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G20 tells ‘euro zone’ to fix its debt crisis within weeks

October 16, 2011

G20 tells ‘euro zone’ to fix its debt crisis within weeks

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China’s Wen pledges stable yuan to exporters: Xinhua

October 16, 2011

China’s Wen pledges stable yuan to exporters: Xinhua

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UN says new Israel settlement plans ‘unacceptable’

October 16, 2011

UN says new Israel settlement plans ‘unacceptable’

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PHOTOS: Rome On Fire

October 16, 2011

(Reuters) – Anti-greed protesters rallied globally on Saturday, denouncing bankers and politicians over the international economic crisis, with violence rocking Rome where cars were torched and bank windows smashed. Galvanized by the Occupy Wall Street movement, protests began in New Zealand, touched parts of Asia, spread to Europe, and resumed at their starting point in New York with 5,000 marchers decrying corporate greed and economic inequality. After weeks of intense media coverage, U.S. protests have still been smaller than G20 meetings or political conventions have yielded in recent years. Such events often draw tens of thousands of demonstrators. The demonstrations by the disaffected coincided with the Group of 20 meeting in Paris, where finance ministers and central bankers from major economies were holding talks on the debt and deficit crises afflicting many Western countries. The Occupy Wall Street movement has gathered steam for a month, culminating with the global day of action. It remains unclear what momentum the movement, which has been driven by social media, has beyond Saturday. While most rallies were relatively small and barely held up traffic, the Rome event drew tens of thousands of people and snaked through the city center for miles (kilometers). Hundreds of hooded, masked demonstrators rampaged in some of the worst violence seen in the Italian capital in years, setting cars ablaze, breaking bank and shop windows and destroying traffic lights and signposts. Police fired volleys of tear gas and used water cannon to try to disperse militant protesters who were hurling rocks, bottles and fireworks, but clashes went on into the evening. Smoke bombs set off by protesters cast a pall over a sea of red flags and banners bearing slogans denouncing economic policies the protesters say are hurting the poor. The violence sent many peaceful demonstrators and local residents near the Colosseum and St John’s Basilica running into hotels and churches for safety. NOT AS LARGE AS HOPED American protesters are angry that U.S. banks are enjoying booming profits after getting massive bailouts in 2008 while average people are struggling in a tough economy with more than 9 percent unemployment and little help from Washington. In New York, where the movement began when protesters set up a makeshift camp in Lower Manhattan on September 17, organizers said the protest grew to at least 5,000 people as they marched to Times Square in midtown Manhattan. Some were disappointed the crowd was not larger. “People don’t want to get involved. They’d rather watch on TV,” said Troy Simmons, 47, who joined demonstrators as he left work. “The protesters could have done better today. … People from the whole region should be here and it didn’t happen.” The Times Square mood was akin to New Year’s Eve, when the famed “ball drop” occurs. In a festive mood, protesters were joined by throngs of tourists snapping pictures, together counting back from 10 and shouting, “Happy New Year.” Police said three people were arrested in Times Square after pushing down police barriers and five men were arrested earlier for wearing masks. Police also arrested 24 people at a Citibank branch in Manhattan, mostly for trespassing. At about 8 p.m., police arrested another 42 people for blocking the sidewalk. Protesters complained they had no place to go with a wall of police in riot gear in front of them and thousands of demonstrators behind them leaving Times Square. Small and peaceful rallies got the ball rolling across the Asia-Pacific region on Saturday. In Auckland, New Zealand’s biggest city, 3,000 people chanted and banged drums. In Sydney, about 2,000 people, including representatives of Aboriginal groups, communists and trade unionists, protested outside the central Reserve Bank of Australia. Hundreds marched in Tokyo. Over 100 people gathered at the Taipei stock exchange, chanting “we are Taiwan’s 99 percent” and saying economic growth had only benefited companies while middle-class salaries barely covered basic costs. In Hong Kong, home to the Asian headquarters of investment banks including Goldman Sachs, over 100 people gathered at Exchange Square in the Central district. Students joined with retirees, holding banners that called banks a cancer. Portugal was the scene of the biggest reported protest action, with more than 20,000 marching in Lisbon and a similar number in the country’s second city Oporto, two days after the government announced a new batch of austerity measures. Hundreds broke through a police cordon around the parliament in Lisbon to occupy its broad marble staircase. “This debt is not ours!” and “IMF, get out of here now!,” demonstrators chanted. Banners read: “We are not merchandise in bankers’ hands!” or “No more rescue loans for banks!” Around 4,000 Greeks with banners bearing slogans like “Greece is not for sale” staged an anti-austerity rally in Athens’ Syntagma Square, the scene of violent clashes between riot police and stone-throwing youths in June. Many were furious at how austerity imposed by the government to reduce debt incurred by profligate spending and corruption had undermined the lives of ordinary Greeks. In Paris, around 1,000 protesters rallied in front of city hall, coinciding with the G20 finance chiefs’ meeting, after coming in from the working class neighborhood of Belleville where drummers, trumpeters and a tuba revved up the crowd. “This is potentially the start of a strong movement,” said Olivier Milleron, a doctor whose group of trumpeters played the classic American folk song “This land is your land.” “THE INDIGNANT ONES” The Rome protesters, who called themselves “the indignant ones,” included unemployed, students and pensioners. “I am here to show support for those don’t have enough money to make it to the next pay check while the ECB (European Central Bank) keeps feeding the banks and killing workers and families,” said Danila Cucunia, a 43-year-old teacher. “We can’t carry on any more with public debt that wasn’t created by us but by thieving governments, corrupt banks and speculators who don’t give a damn about us,” said Nicla Crippa, 49. “They caused this international crisis and are still profiting from it. They should pay for it.” In imitation of the occupation of Zuccotti Park near Wall Street in Manhattan, protesters have been camped out across the street from the headquarters of the Bank of Italy for days. The global protests were a response to calls by New York demonstrators for others to join them. Their example has prompted similar occupations in dozens of U.S. cities. At a small protest in Dublin, Ireland, Gordon Lucas, an unemployed software developer said “We don’t have economic democracy anymore. … I don’t feel I am being represented.” In Madrid, around 2,000 people gathered for a march to the central Puerta del Sol. Placards read: “Put the bankers on the bench” and “Enough painkillers — euthanasia for the banks.” “It’s not fair that they take your house away from you if you can’t pay your mortgage, but give billions to the banks for unclear reasons,” said 44-year-old telecom company employee Fabia, who declined to give her surname. In Germany, thousands gathered in Berlin, Hamburg, Leipzig and outside the European Central Bank in Frankfurt. Demonstrators gathered peacefully in Paradeplatz, the main square in the Swiss financial center of Zurich. In London, around 2,000 people assembled outside St Paul’s Cathedral, near the City financial district, for a rally dubbed “Occupy the London Stock Exchange.” Joe Dawson, 31, who lost his job as a product developer at Barclays Bank, said he had taken his two children aged 10 and 8 to the rally to show them people had a voice. “I’m not passive anymore and I don’t want them to be. This is their future too,” Dawson said. “I work four jobs part-time, I take whatever I can get.” WikiLeaks founder Julian Assange told the crowd: “I hope this protest will result in a similar process to what we saw in New York, Cairo and Tunisia,” he said, referring to revolutions in the Arab world. Outside of New York, similar protests were held in other U.S. cities and Canada. Hundreds turned out in Washington, D.C., while a couple of thousand people gathered near Toronto’s financial district as well as in Portland, Oregon. A protest in Los Angeles drew about 5,000 people. (Additional reporting by Catherine Hornby in Rome, Naomi O’Leary and Michael Holden in London, Natalia Drozdiak in Berlin, Alexandria Sage and Gus Trompiz in Paris, Iciar Reinlein, Jonathan Gleave and Carlos Ruano in Madrid, Cameron French in Toronto, Edith Honan, Ray Sanchez and Ed McAllister in New York, Carmel Crimins in Dublin; Writing by Mark Heinrich; Editing by Angus MacSwan, Mark Egan and Todd Eastham) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Occupy Wall Street Protesters Swarm Times Square

October 15, 2011

NEW YORK, Oct 15 (Reuters) – Thousands of anti-Wall Street protesters rallied in New York’s Times Square on Saturday, buoyed by a global day of demonstrations in support of their monthlong campaign against corporate greed. Inspired by the Occupy Wall Street movement, protests on Saturday started in Asia and rippled through Europe back to the United States and Canada. Protesters fed up with economic inequality took to the streets in cities from Washington, Boston and Chicago to Los Angeles, Miami and Toronto. (SCROLL DOWN FOR PHOTOS AND LATEST UPDATES ) After weeks of intense media coverage, the size of the U.S. protests on Saturday have been smaller than G20 meetings or political conventions yielded in recent years. Such events often draw tens of thousands of demonstrators. In New York, where the movement began when protesters set up camp in a Lower Manhattan park on Sept. 17, organizers said the protest grew to at least 5,000 people as they marched to Times Square from their makeshift outdoor headquarters. “These protests are already making a difference,” said Jordan Smith, 25, a former substance abuse counselor from San Francisco, who joined the New York protest. “The dialogue is now happening all over the world.” The protesters chanted, “We got sold out, banks got bailed out” and “All day, all week, occupy Wall Street.” They arrived in Times Square at a time when the area is already crowded with tourists and Broadway theatergoers. “This is disgusting” said Anatoly Lapushner, who was shopping with his family at Toys R Us in Times Square. “Why aren’t they marching on Washington and the politicians? Instead they go after the economic lifeblood of the city.” PARTY MOOD IN NEW YORK American protesters are angry that U.S. banks are enjoying booming profits after getting bailouts in 2008, while many people are struggling in a difficult economy with more than 9 percent unemployment and little help from Washington. Some were disappointed the New York crowd was not larger. “People don’t want to get involved. They’d rather watch on TV,” said Troy Simmons, 47, who joined demonstrators as he left work. “The protesters could have done better today … people from the whole region should be here and it didn’t happen.” The Times Square mood was akin to New Year’s Eve, when the famed “ball drop” occurs. In a festive mood, protesters were joined by throngs of tourists snapping pictures, together counting back from 10 and shouting, “Happy New Year.” Police said three people were arrested in Times Square after pushing down police barriers and five men were arrested earlier for wearing masks. Police also arrested 24 people at a Citibank branch in Manhattan, mostly for trespassing. Citibank was not immediately available for comment. At about 8 p.m., police arrested 42 people for blocking the sidewalk. Protesters complained they had no place to go with a wall of police in riot gear in front of them and thousands of demonstrators behind them leaving Times Square. Five thousand people marched through the streets of Los Angeles and gathered peacefully outside City Hall. The Occupy Wall Street movement has been gathering steam over the past month, culminating with Saturday’s action. The protests worldwide were mostly peaceful apart from Rome, where the demonstration sparked riots. But it was unclear if the movement, which has been driven using social media, would sustain momentum beyond Saturday. Critics have accused the group of not having clear goals. In Toronto, a couple of thousand people gathered peacefully and started to set up a camp in one of the city’s parks. Protesters in Washington marched through the streets. “I am going to start my life as an adult in debt and that’s not fair,” student Nathaniel Brown told Reuters Television. “Millions of teenagers across the country are going to start their futures in debt, while all of these corporations are getting money fed all the time and none of us can get any.” Copyright 2011 Thomson Reuters. Click for Restrictions .

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‘Jobs For Justice’ Rally Brings Thousands To National Mall

October 15, 2011

WASHINGTON — Thousands of Americans led by the Rev. Al Sharpton rallied Saturday against the backdrop of the Washington Monument, calling for easier job access and decrying the gulf between rich and poor before marching to the new Martin Luther King Jr. Memorial. The rally was intended to drum up support for President Barack Obama’s jobs plan, which died Tuesday in the U.S. Senate. But speakers used the platform for varied causes, including condemning state laws requiring voter identification at the polls and protesting the recent execution of Troy Davis, a Georgia man convicted of killing an off-duty police officer. Davis maintained his innocence until his death and attracted thousands of supporters worldwide even though courts repeatedly ruled there wasn’t enough evidence to exonerate him. Chanting for jobs and justice, many demonstrators carried banners for their labor unions and wore pins or T-shirts bearing King’s likeness. Obama is scheduled to speak Sunday at the dedication ceremony for the memorial, the first monument dedicated to a black leader on the National Mall. Sharpton, the featured speaker at the March on Washington for Jobs and Justice, blasted the Senate for its failure to pass Obama’s $450 billion jobs bill. The measure includes an extension of a payroll tax cut and unemployment benefits, as well as money to help local governments keep teachers and other workers on the job. Obama and Senate Democratic leaders plan to try to pass elements of the measure by breaking it into pieces. “If you can’t get the jobs bill done in the suites, then we will get the jobs bill done in the streets,” Sharpton said to cheers and applause. He told the crowd that King would have supported their cause “because he stood for those who were cast down and cast back.” King’s eldest son, Martin Luther King III, was also among the speakers. “Over 45 years ago, my father talked about a redistribution of wealth. In fact, that is probably why he was killed,” King said. “Because he said if America is going to survive responsibly, then it must have a redistribution of wealth.” Kathie Williams, a part-time administrator for the Howard County, Md., parks and recreation department. She’d like to find full-time work but has struggled to do so despite an active search. “No one has responded to me,” Williams said. Belinda Shade, 56, of Waldorf, Md., works as a special education school administrator but said the economy still makes her insecure. “Right now I have a job, but I don’t know what might happen tomorrow,” Shade said, later adding, “There are no jobs. People are really hurting. Everything is coming apart as a result.” District of Columbia Mayor Vincent Gray held a separate protest supporting greater autonomy for the district government – Congress must approve the local government’s budget – and joined in the larger gathering. Labor Secretary Hilda Solis and Randi Weingarten of the American Federation of Teachers were among the other speakers. Nonetheless, Sharpton said the rally was not intended as an overtly political statement or as part of the president’s re-election bid. “This is not about Obama,” he said. “This is about my mama.”

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Microsoft buys Skype, largest ever acquisition

October 15, 2011

Microsoft buys Skype, largest ever acquisition

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UK’s unemployment rises to 8% in August

October 15, 2011

UK’s unemployment rises to 8% in August

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UK Okays USD7b North Sea project

October 15, 2011

UK Okays USD7b North Sea project

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iPhone 4S poised to outpace 2010′s debut sales

October 15, 2011

iPhone 4S poised to outpace 2010′s debut sales

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Worrying Signs Despite $17.2 Million Haul For Rick Perry

October 15, 2011

WASHINGTON — Despite a late entrance into the Republican presidential primary, Texas Gov. Rick Perry has reported an impressive $17.2 million in campaign donations from his Aug. 13 announcement through the end of September, according to a disclosure report filed with the Federal Election Commission on Saturday. A closer look at the numbers brings out some worrying signs for the one-time GOP front-runner. The Perry campaign raised more money in the third quarter than that of the presumptive front-runner, former Massachusetts Gov. Mitt Romney, by a margin of $3 million and currently has more than $15 million cash on hand to lead the Republican pack. The haul is all the more striking as it came in just a month and a half, while Romney and the other candidates had a full three months to raise their third-quarter totals. Like Romney, Perry is suffering from an inability to raise money from a broad base of supporters, usually measured by the number of small-dollar donors. Perry raised $13.4 million of his $17.2 million from donors giving between $2,500 and $5,000. He only raised $698,820 from donors giving less than $200, which was 4 percent of his total contributions, the lowest percentage for any current presidential candidate. Perry is also largely reliant on money from Texas. He gathered $9.7 million from his home state, 56 percent of his total. While Texas is the breadbasket of campaign money for Republican politicians generally, Perry may have to broaden his base outside the state. Employees of some companies close to the governor gave big to his campaign. Those working for the accounting firm Brint Ryan, a Perry backer also affiliated with the pro-Perry super PAC Make Us Great Again, donated a total of $152,800. USAA employees, mostly located in Texas, gave $44,000 to the Perry campaign. The USAA contributions were likely facilitated by company lobbyist Dan Brouillette, who reported bundling $77,000 for Perry’s campaign . Other big totals from a single company’s employees include $32,500 from Contran Corp., owned by major GOP and Perry donor Harold Simmons, and $40,500 from Ernst & Young. These problems — a base of big donors who are already maxed out and a reliance on home state money — do not bode well for a candidate who has fallen as far as Perry has in recent days. Since entering the race to huge fanfare and rocketing to the top of the polls, Perry has fallen back to earth hard . He has come under attack from the left for his Social Security views, from the right for his vaccine and immigration policies, and from the media and pundits for appearing somnolent and incoherent in the GOP debates. Perry now hugs a giant war chest while treading water among second-tier candidates like former Speaker Newt Gingrich and Rep. Michele Bachmann. If Perry’s fundraising numbers drop in the fourth quarter, he will still have more money than most of his competition and help from the unlimited-money super PACs backing his campaigns. The $15 million on hand will help bring his message to the public through advertising and direct mail. He’ll just have to hope that voters still want to listen to what he has to say.

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WATCH: Fox News Host’s Bizarre Mockery Of Occupy Wall Street

October 15, 2011

Fox News host Eric Bolling found a new way to mock the Occupy Wall Street protesters on Friday’s episode of “The Five.” Bolling wore a tin-foil hat and nerdy glasses, and held a sign reading “Occupy The Five.” The gesture seemed to go down well with most of Bolling’s colleagues, who chortled appreciatively at his lampoonery and played video of what they felt were stupid protesters in the movement. Co-host Andrea Tantaros chimed in, saying that the protesters never brushed their teeth. Greg Gutfeld added that he didn’t see any point to Occupy Wall Street. Co-host Bob Beckel was not so amused, though, telling Bolling he should be “embarrassed” for his family. Occupy Wall Street has not exactly been met with joy and approval at Fox News. Ann Coulter compared the protesters to Nazis during an appearance on the network’s sister business channel, and Bill O’Reilly called them “crackheads.” The movement has returned the favor, criticizing Fox News in interviews and shouting down its hosts when they have made the trek to the Lower Manhattan encampment. WATCH: Watch the latest video at video.foxnews.com

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U.S. Birth Rate Continues To Decline, A Sign Of Down Economy

October 15, 2011

The birth rate continued to drop last year in the United States, according to new data from the Pew Research Center, and experts are linking it to a down economy. The birth rate began declining in 2008, following a year of record high births in 2007, according to the Pew report. In 2007, there were 4,316,233 births and 69.6 babies born for every 1,000 childbearing-age woman; in 2010, there were just 4,007,000 births, and 64.7 births per 1,000 women. “It’s almost certainly due to a lack of confidence in the economy ,” demographer Carl Haub, of the Population Reference Bureau, told CNN. Kids are expensive because of the money it takes to feed, clothe and care for them, he told CNN. However, Haub said it’s not that kids aren’t desirable to us anymore; rather we are waiting until we can afford them. The Pew report also shows that states with the highest levels of unemployment had the biggest decreases in birth rate. And the state with the lowest unemployment rate — North Dakota — was the single state that actually had an increase in birth rate (though by just 0.7 percent), Politico reported. For the full Pew report, click here .

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GM Pulls Ad That Makes Fun of Cyclists

October 15, 2011

Is riding a bike really that lame? General Motors would like you to think so, or at least they did until pulling an advertisement targeted at college students. The ad, seen here on Urban Velo , depicts a man on a bicycle being passed by an attractive woman in a car, with the headline “Reality Sucks.” The ad ran in a number of college newspapers and as a poster on college campuses, offering a college student discount on several GM models, according to the Los Angeles Times . The Los Angeles Times reported that Tom Henderson, a GM spokesman, said: The content of the ad was developed with college students and was meant to be a bit cheeky and humorous and not meant to offend anybody. We have gotten feedback and we are listening and there are changes underway. They will be taking the bicycle ad out of the rotation…. We respect bikers and many of us here are cyclists. General Motors has been using social media to apologize to offended consumers. For several days, the company’s Twitter feed has been filled with messages to users who have complained. Bicycle manufacturer Giant released a parody of GM’s ad, suggesting that if you ride a bicycle, ” The only thing you have to lose is some weight.. and the burden of fuel prices.” ABC News reported on the comments one UCLA professor made on a cycling website about the ad. He said, “GM, the company that required us taxpayers to bail it out in 2009, is now biting the young people who bear and will bear the environment and health damage of its gas swilling ways.” Click here to view of some of the most attention-grabbing advertisements in recent memory.

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Laurence Watts: Where Are the Gay Nobel Prize Winners?

October 15, 2011

Journalists and academics the world over focused on Stockholm earlier this month as the Nobel Foundation announced the 2011 Nobel Prize winners. These prizes are the most prestigious awards in the respective fields of physics, chemistry, physiology or medicine, literature, peace and economics. I love what I have come to call “Nobel Prize Week.” It comes around every year, and like all good weeks, it actually lasts for eight days. For me it’s up there with the Grammys and Oscars — until, that is, the other day, when something occurred to me: I can’t think of a gay Nobel Prize winner. Not even a dead one. This led me to a very important question: is the Nobel Foundation homophobic? Let me rattle off some names you should recognize, and hopefully you’ll see my point: Marie Curie (physics in 1903, chemistry in 1911), T.S. Eliot (literature in 1943), Winston Churchill (literature in 1953), Ernest Hemingway (literature in 1954), Martin Luther King, Jr. (peace in 1964), Henry Kissinger (peace in 1973), Milton Friedman (economics in 1976), Desmond Tutu (peace in 1984), Mikhail Gorbachev (peace in 1990), Kofi Annan (peace in 2001), Jimmy Carter (peace in 2002), Harold Pinter (literature in 2005), Paul Krugman (economics in 2008), Al Gore (peace in 2007) and Barack Obama (peace in 2009). Obviously I’ve only picked the famous names, so this is not a representative selection, but all of the above share one thing in common aside from being Nobel Prize winners: they were all married, and not to someone of the same sex. Hemingway actually managed to find time during his life to write and work his way through four wives. Of course, marrying someone of the opposite sex doesn’t make one heterosexual. Oscar Wilde married, but no one in their right mind would describe him as anything other than a card-carrying gayer. Nevertheless, in the above instances, I take it as read that, in these cases, married equals straight. I’ve tried to go through the ranks of non-famous Nobel Prize winners, as well, the ones who won for discovering new elements or very small things, or for inventing Band-Aids. I found nothing, which leads me to conclude that either we don’t know enough about the private lives of these sweater-wearing types or the Noble Foundation is a bunch of queer-bashers. What else can one think? Are gays simply too pretty to be clever? Surely not. John Maynard Keynes and Alan Turing were two of the 20th century’s finest minds, and each of them was more than just a bit poofy. Keynes provided the foundation for modern economics, while Turing is regarded as the father of computing. Alas for the gay community, Keynes died 22 years before the Nobel Prize for Economics was introduced in 1968. Turing was unluckier still: despite being a candidate for a Nobel Peace prize (for his work cracking the German Enigma machine in World War II) or a Nobel Prize for Medicine or Chemistry (for his work on morphogenesis), he was a mathematician by training, and of course no Nobel Prize for mathematics exists. To be certain I’m not overlooking anyone, I emailed my former Director of Studies at Cambridge University, Dr Murray Milgate. While he might not know about the other fields, as an editor of The New Palgrave: A Dictionary of Economics , I trusted him to be an authority on the economics Nobel Prize winners. Did he know of a gay Nobel Prize winner? He did not. So why aren’t there any? One answer would be that there are, they just keep their private lives private. Another option has to do with the backlog of candidates the Nobel Foundation has. During two of the three years I studied economics at Cambridge, the university won Nobel Prizes in my subject. Much as I tried to take some of the credit for these wins, the work that James Mirrlees (1996) and Amartya Sen (1998) won their respective prizes for took place many years before I was born. It had just taken the Nobel Foundation a while to get around to recognising their work. Every year there’s a long list of deserving winners for each prize, representing the important discoveries of the past 50-odd years. Often it seems like the Nobel Foundation is fighting a battle against time as it tries to honour academic pioneers before they die, and not always successfully, in the case of this year’s medicine prize for Dr Ralph Steinman, who died just days earlier. Winners tend to be fairly old. With homosexuality decriminalised in Britain in 1967 and across the whole of America in 2003 (thanks to Lawrence v Texas ) any gay Nobel Prize winner today might well have completed his or her research when it was illegal to be gay. Might this affect judges’ views of their work? Might this affect the predisposition of a winner to come out? These are possibilities. Peace Prize winners tend to be politicians, so I very much doubt we’ll seen any gay winners in that category until the public elects more gay politicians. Why, then, is having a gay Nobel Prize winner important? Duh , why was having a black president important? It’s about aspiration. It seems odd to me as a writer that I can interview gay Oscar winners (Dustin Lance Black), Olympic gold medallists (Greg Louganis), Grammy Award winners (Elton John), CEOs (Apple’s Tim Cook), Prime Ministers (Iceland’s Jóhanna Sigurðardóttir) and even billionaires (David Geffen), but not a Nobel Prize winner. Have I discovered a game harder than “Name Five Famous Belgians”? If I have, does that qualify me for a Nobel Prize? That would be awesome. If you happen to be a gay Nobel Prize winner, please get in touch; I would very much like to interview you. That’s not meant to sound like a chat-up line.

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Messages From Occupy Wall Street

October 15, 2011

NEW YORK — The Occupy Wall Street protests are hitting a nerve. A dearth of jobs, overwhelming student loans and soaring health-care costs are just three major issues protesters have targeted. And regardless of politics, economic data suggests they’re not alone in their frustrations. It may be why the protests have spread to other cities – including Boston, Cincinnati, Seattle and Washington, D.C. – after taking root in downtown New York nearly a month ago. Take for example the unemployment rate, which has been stuck near 9 percent since the recession officially ended more than two years ago. When counting those who settle for part-time work or have quit looking, that rate rises to about 16.5 percent. A crippled labor market also shifts bargaining power to employers, giving workers less leverage to seek raises. That could help explain why pay was nearly 2 percent less in August than it was a year earlier when adjusted for inflation. Student loans are another common rallying point for protesters – as expressed in one sign that read “Want demands? How about student loan bailouts?” The struggle to keep up with payments is clear; about 320,000 borrowers who entered repayment in 2009 defaulted on their student loans by the end of 2010, according to the Institute for College Access & Success. That’s up about 33 percent from the previous year. Meanwhile, the cost of annual health insurance premiums for family coverage rose 9 percent this year and surpassed $15,000 for the first time, according to the Kaiser Family Foundation and the Health Research and Educational Trust. Some don’t have to worry about the uptick; an estimated 16 percent of the population does not have health insurance. It’s that economic backdrop that has driven a diversity of protesters to the streets While a few hundred have been camping out in Manhattan’s Zuccotti Park, many more join in for a few hours or a day to add their voices. Here’s a look at some of the protesters who ventured by in the past week, and the financial issues they’re dealing with: ____ John Smith, 31, of Brooklyn, N.Y., works part time at Trader Joe’s because he hasn’t been able to find work in his field for over a year, despite having a master’s degree. He has about $45,000 in student loan debt. His girlfriend, Meropi Peponides, 27, a graduate student at Columbia University, will have about $50,000 by the time she graduates. “I don’t know in the end what exactly this will achieve, if anything. But if it makes people wake up just a little bit, it’s worth it,” Peponides said. “The potential is huge. That’s why I’m here. I felt the potential somehow.” Smith said he has sent out about 200 resumes in his search. He’s looking mainly for work with non-profit organizations. “The jobs that I’ve been applying for are all entry level jobs in my career field. I don’t think I’m shooting for the stars trying to get those jobs.” Smith said, noting that five years ago, before grad school, he was able to get work at that level. He was carrying a sign that said, “I am the 99 percent,” a slogan that resonated with him. “It’s true. I am one of the many people that are having a lot of trouble finding ways to make it through things right now.” ___ Tracy Blevins, 41-year-old Manhattan resident, has a doctorate in biomedical science but lost her job as an adjunct professor at Touro College this spring. She’s since been getting by on odd jobs; most recently, she acted as a cross-country driver for $2,000. “I’m earning money off a license I got when I was 16, and still paying off the loans I had to take out to get my degree,” she said. Even after nine years of paying down her loans, Blevins said she owes $10,000. She’s current on payments now, but said the loans have crippled her credit score and even prevented her from getting work in the past. “I have paid and paid and paid and I still owe $10,000. It’s the interest that keeps me in debt,” she said. ____ Steve and Barbara Diamond traveled nearly 100 miles to take part in the protest. They were motivated mainly by what they see as a disappearance of the middle class; and a connection between the economic problems of recent years and the amount of influence money has on politics. He held a sign criticizing the 2010 Supreme Court ruling known as Citizens United, which overturned a previous ban on corporate spending in federal elections. “Our government is being bought by wealthy people and corporations,” said Steve Diamond, a physician. “Unless you get the money out of the elections, you’ll end up with an oligarchy in this country.” “My father used to say when he came to here from Europe that this was the `Golden Land,’” he said. But he’s not telling that to his own children: “This is what’s happened inside two generations.” ___ Joe Foley, a 48-year-old freelance cinematographer living in Manhattan, finished paying off his $45,000 in student loans just five years ago. His girlfriend has $120,000 in student loans. Foley said work has been fairly steady in recent years, but he worries that he doesn’t have any retirement savings or health insurance. He rents an inexpensive apartment and doesn’t carry a big credit card balance, but realizes he’s one broken leg away from being in serious debt. “I was really hoping there was going to be a public option,” he said of the federal health care reforms. “It was pretty disappointing that it didn’t happen.” For now, he considers himself lucky that he’s never had any health issues. His approach has been to “drink lots of water and miso soup and do yoga.” ___ Ben Bear, 56, a San Francisco resident visiting his daughter in New York, works at a food bank and feels his job is secure. “Unfortunately I’m doing well because I’m in a growth industry,” Bear said. “The demand for food keeps going up. Everyone’s got this image of who accesses a food bank as a homeless person. But it’s families and the working poor.” ___ Susan Knauss, 55, from upstate Livingston, N.Y., worked in the telecommunications industry for the past 25 years. But she was laid off a few weeks ago from the New York State Department of Transportation. She plans to get by on unemployment checks for the time being. “But in two weeks, I won’t have health insurance,” she said. She’s also worried about her retirement savings. Even after making maximum contributions for most of her career, she worries that she hasn’t saved enough and that the volatile market could eat away at the value of her 401(k). “Where can you put your money where it doesn’t go away?” ____ Maureen McMahon, 62, of Manhattan, a former school teacher, works part time by choice at a museum. She pointed to problems like the high number of uninsured as among the concerns that brought her out to protest; noting that the disparity in health care reflects that the economic system doesn’t treat everyone equally. “I’m an investor, I have stock,” she said with some irony, as she held a sign that said “Tax Wall Street.” “I believe that corporations can be very useful and very compassionate,” she said, adding that unfortunately, that kind of corporate responsibility seems to have diminished lately. ____ Katy Ryan, 35, of Jersey City, N.J., made a good living for years as a makeup artist, but since the downturn has struggled to make ends meet. She’s getting fewer clients and having to cut her rates. These days she even has to take some work as a bartender so she and her 8-year-old daughter can get by. “I didn’t have to do that for years.” Her main concern is that the widening gulf between the rich and poor, and the notion that a better life is slipping out of reach for those who aren’t wealthy. She noted that her mother was a long time member of the United Auto Workers, and that she saw her benefits and wages chiseled away over the years.

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G20 Finance Ministers To Back Big Bank Capital Surcharge

October 15, 2011

PARIS/LONDON (Francesca Landini and Huw Jones) – Finance ministers and central bankers from the world’s top economies are set to back a mandatory capital surcharge on big lenders of up to 2.5 percent to be phased in from 2016. A draft communique from a meeting of G20 finance chiefs endorses a 1-2.5 percent capital surcharge on top banks like Goldman Sachs, HSBC, Deutsche Bank and JPMorgan Chase. The aim is to make sure they have enough capital to withstand market turbulence so that taxpayers won’t have to rescue banks again in the next crisis. A summit of the G20 leaders in Cannes, France in early November is set to give final approval to the surcharge plan and name the banks affected, known as global systemically important financial institution or G-SIFIs, G20 sources said. “Now that the framework applicable to G-SIFIs is agreed, we urge the Financial Stability Board to define the modalities to extend expeditiously the framework to all SIFIs,” the draft communique obtained by Reuters said. Insurers are battling against a surcharge as second tier banks. The charge — which will be in addition to a 7 percent minimum core capital buffer being phased in for all banks from 2013 — is part of a wider package the G20 ministers are set to endorse on Saturday. The other elements include common “tools” for supervisors to wind up ailing banks, compulsory “living wills” or resolution plans for every big bank, and more intensive supervision for large lenders, the communique said. The FSB, which formulates and coordinates financial regulation on behalf of the G20, has already drawn up criteria to determine which banks face a surcharge. It has said 28 banks would be affected if the regime was introduced immediately but G20 sources said the Cannes summit may name up to 50 lenders. POSITION LIMITS The FSB is also expected to update ministers on its work to define the so-called shadow banking sector before thrashing out recommendations next year to regulate it. Supervisors fear that as banks face tougher rules, risky activities could migrate to other parts of the financial system such as money market funds and special vehicles. G20 presidency France appears to have lost its battle to introduce tough curbs on what it sees as speculation in food and energy commodity markets by imposing limits on the size of positions a trader can hold at any given time. G20 sources said the group was expected to approve a report from the International Organization of Securities Commissions, which groups national market watchdogs, on the benefit of imposing trading limits but it would remain “optional.” The U.S. Commodity Futures Trading Commission is set to discuss fixed limits on Tuesday but in Europe there is no consensus, with Britain opposed to such permanent curbs. STRONGER FSB Bank of Italy Governor Mario Draghi is expected to propose strengthening the FSB, which he chairs, in order to ensure proper implementation of a welter of new rules the G20 has pledged to introduce, including the bank capital surcharge. Draghi, who steps down as chairman this month to become president of the European Central Bank, is expected to propose more members from emerging markets and developing countries on the FSB’s agenda-setting steering committee. Some Asian and Latin American countries feel the regulatory measures now being finalized plug supervisory holes in European and U.S. markets and want their circumstances to shape future G20 regulatory work. Draghi also wants representatives of finance ministries on the steering committee to add political clout. “Draghi will also discuss the possibility to give FSB a legal personality and to allow it to receive resources from more diversified sources,” a G20 source said. Saturday’s meeting will also touch on who will replace Draghi. Bank of Canada Governor Mark Carney is seen by some G20 officials as the main contender so far that the Cannes summit will endorse. G20 ministers are also expected to look at proposals to reinforce non-binding draft principles on financial consumer protection authored by the OECD which have been criticized for being too weak. (Additional reporting by Daniel Flynn in Paris, editing by Mike Peacock) Copyright 2011 Thomson Reuters. Click for Restrictions .

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U.S. Ducks Recession For Now

October 15, 2011

WASHINGTON (Lucia Mutikani) – Consumers and businesses pulled the sickly U.S. economy back from the brink of recession in the third quarter but don’t pop the champagne just yet. After wobbling early in the quarter, the economy regained some footing, with retail sales rising solidly in September and labor market conditions improving. Business spending has held up despite volatility in financial markets and factory activity has kept expanding. Economists now estimate U.S. gross domestic product grew at an annual pace of between 2.3 and 2.7 percent in the July-September period, a sharp step up from the 1.3 percent logged in the first quarter and a far cry from what some feared just a few weeks ago. “The economy held up surprisingly well in the third quarter but it’s too early to celebrate,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. Much of the re-acceleration in growth reflects the fading of disruption to motor vehicle production and sales after the big March earthquake in Japan. A surge in auto sales contributed to a solid 1.1 percent rise in retail sales in September. Declining gasoline prices, which stretched household budgets in the second quarter and crimped consumer spending, are also seen supporting third-quarter economic growth. But those factors should prove temporary, and with Europe’s economy likely to slow as it battles its debt crisis and the U.S. labor market still weak, economists believe the fourth quarter will prove weaker, with some fearing a contraction in the first half of 2012. “The euro zone debt crisis is still playing out. That remains a dark cloud on the horizon that can present a direct hit to the U.S. economic recovery,” said Anthony Karydakis chief economist at Commerzbank in New York. Although European leaders sound determined to come to grips with the debt crisis and could announce a bold plan in the next couple of weeks, analysts worry they might once again move too slowly for jittery financial markets. A DAY LATE “A bold plan would require some form of centralized fiscal policy, which means years of voting and changing the treaty and voting in individual parliaments,” said Diane Swonk, chief economist at Mesirow Financial in Chicago. “It’s not clear whether financial markets will have the patience for them to execute on it because you don’t have the ability in Europe to move as quickly on it and they have always been a day late in dealing with the crisis.” U.S. exports to the euro zone account for only about 2 percent of U.S. gross domestic product, but a worsening of the debt crisis could lead to a financial panic, with ripple effects on American banks and consumers. The euro zone turmoil has already led to tightening in credit availability, weighing on spending and employment. Economists at Goldman Sachs see U.S. growth slowing to a pace between 0.50 percent and 1 percent in the next two quarters, with the risk of a recession at about 40 percent. Others, however, think another recession is far fetched. “The economy is not in great shape but it is hardly falling apart,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. “We are in a slow, steady, grinding recovery that is not creating lots of jobs.” Naroff, like many other economists, draws solace from the solid rise in retail sales in September reported on Friday and the need for auto manufacturers to replenish inventories after production was disrupted early this year. “Some of the momentum in final demand growth could carry into the fourth quarter. Early indications suggest that auto sales, which were an important element in third-quarter growth, are holding up well in October,” said Michael Feroli, an economist at JPMorgan in New York. “And while energy prices have backed up in recent days it should still be the case that moderation in headline inflation could give some lift to consumer spending power.” Much as Europe’s shadow looms large over the U.S. economy, belt tightening at home also poses a risk to growth, with a payroll tax cut and an extension of emergency unemployment benefits scheduled to expire in December. While economists expect the payroll tax cut to be extended, many doubt whether the emergency jobless benefits will be renewed, which would undercut already weak household income. “If political parties are unable to agree on any of these measures, that could be the straw that breaks the camel’s back,” said Harm Bandholz, chief U.S. economist at UniCredit Research in New York. “The spending cuts would impact growth not only directly via lower disposable incomes, but also indirectly via a massive loss of confidence in the ability of policymakers to steer events in the right direction in these critical times.” (Editing by James Dalgleish) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Obama Plans To Turn Wall Street Anger On Romney, Republicans

October 15, 2011

President Obama and his team have decided to turn public anger at Wall Street into a central tenet of their reelection strategy.

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‘Moss Man’ fails to show up for trial

October 15, 2011

‘Moss Man’ fails to show up for trial

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Woman puts ad on Craigslist to buy pot

October 15, 2011

Woman puts ad on Craigslist to buy pot

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