November 2011

Occupy DC: Agnes Bolt’s Bubble Brings Transparency To Protest

by The Huffington Post on November 30, 2011

Huffington Post…

WASHINGTON — On a chilly Wednesday afternoon, Jordan Brinkman is lying on top of a sleeping bag and foam mat inside an oddly-shaped, igloo-like clear plexiglass structure in McPherson Square, the park where Occupy DC has been encamped since Oct. 1. A sign hung up in front of the structure — called the “bubble” — says “Occupy DC is transparent and participatory.” Brinkman, a computer programmer from the Bay Area, came to Washington, D.C. on Oct. 6 to be a part of the capital’s other Occupy protest, the one in Freedom Plaza , but says he left there after a falling out. Brinkman spent some time in McPherson Square and elsewhere, but hadn’t felt settled. Then on Wednesday afternoon, he found the empty plexiglass bubble at the southwestern part of McPherson Square and moved right in. “I finally have a place to occupy,” Brinkman says. “I’m just so happy.” The plexiglass bubble used to be inhabited by the artist Agnes Bolt. Bolt lived in the bubble inside of D.C. collector and art doyenne Philippa Hughes’s living room , as part of an art project that challenged notions of personal identity, artist and collector, control and the use of space. The bubble then made its way into the gallery Project 4 as part of an exhibit . On Tuesday night, Bolt brought the bubble to McPherson Square . “I thought it should stay in D.C. where it has an association and potentially continue onto other adventures outside of my control,” Bolt told the Huffington Post. “I see a lot of parallels there and a humorous dialogue with its previous purpose of questioning the relevance of art in a private situation. Now I hope it will be used in a very practical way: I am hoping as a vegetable greenhouse or sauna. I would definitely love to come back to a steamy nudist spa overlooking McPherson rush hour traffic.” Brinkman, wearing jeans, sneakers and a hoodie — his coat is hung up on a bolt in the bubble — says he’s not an artist himself but he likes the story of the bubble’s previous resident. “She occupied this thing,” he says. “It’s just so cool.” When Bolt lived in the bubble, she amassed an eclectic collection of objects inside of it: a chair, a surfboard, a plant, a fog machine, a papier mache head and a water bottle. Brinkman has kept his possessions minimal, he says, because he doesn’t want to attract the park’s rats, so his collection is perhaps more utilitarian: sign-making supplies (a Sharpie, some Pilot pens, pencils, paper), some other personal effects wrapped up in the sleeping bag, some oats for eating, and two bottles, one filled with water and one empty. Brinkman says he “won’t speculate” what the empty one is for. An older woman wanders over to the bubble. She runs her hand over its top. “What is the meaning of it?” she asks Brinkman in a French accent. “I’m just occupying it,” he says to her. A bearded man pokes his head into one of the bubble’s holes. “What’s up with your bubble, dude?” he asks. “Not much, I’m just occupying it,” Brinkman says. Brinkman wasn’t aware of the plexiglass bubble’s provenance before he settled down in it — it just attracted him, seeming “tailor made,” he says, for a demonstrator to take up residency inside. He doesn’t mind having unwittingly become an art object himself, on display along with his Sharpie and his coat and his empty bottle, a demonstrator interacting with his environment, inside the bubble’s transparent walls. “I’m not going anywhere,” he says. “I’ve got nothing to hide.” RELATED VIDEO: Philippa Hughes’ video about what happened when someone threw away the model for the “bubble” structure that Agnes had given her.

The rest is here:
Occupy DC: Agnes Bolt’s Bubble Brings Transparency To Protest

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Huffington Post…

Renting out REO properties would be a drop in the bucket — it wouldn’t clear much of the housing inventory and wouldn’t ease rising urban rents, but it would help shore up neighborhoods where housing prices took the biggest slide, and that makes it worthwhile. The Federal Housing Finance Agency (FHFA), the regulator for Fannie Mae and Freddie Mac, is considering proposals for selling government-owned homes to investors, who would then turnaround and sell or rent them out. (The official request for policy ideas is here .) It’s hoped that this move would help government agencies earn some much-needed revenue, boost neighborhood home values by getting buyers or renters into vacant homes and ease tight rental markets by expanding the supply of rental housing. Even though Fannie Mae , Freddie Mac and the Federal Housing Administration (FHA) are national agencies, housing markets are local, which means that the vacant, foreclosed properties they own are concentrated in regions that were hit hardest by the housing crisis. Among larger metro areas, these agencies own the most foreclosed property – known as REO (real estate owned) – in Las Vegas and Atlanta , after adjusting for metro area size. Several metros in Arizona, Michigan and California are also among the top 20 metros where the government owns a lot of homes. Metro area Government-owned REO for sale per 10,000 housing units Las Vegas – Paradise , NV 28.9 Atlanta – Sandy Springs – Marietta , GA 22.6 Lake Havasu City – Kingman , AZ 20.9 Flint , MI 19.3 Prescott , AZ 19.0 Phoenix – Mesa – Glendale , AZ 17.5 Reno – Sparks , NV 17.4 Modesto , CA 16.3 Riverside – San Bernardino – Ontario , CA 16.3 Vallejo – Fairfield , CA 16.1 Tucson , AZ 15.9 Detroit – Livonia – Dearborn , MI 15.7 Warren – Troy – Farmington Hills , MI 15.4 Visalia – Porterville , CA 15.0 Bakersfield – Delano , CA 15.0 Lansing – East Lansing , MI 14.9 Boise City – Nampa , ID 14.5 Macon , GA 13.9 Stockton , CA 13.9 Cape Coral – Fort Myers , FL 13.4 NOTE: Top larger metros (100,000 housing units or more), ranked by government REO per ten-thousand housing units. Includes all homes owned by Fannie Mae, Freddie Mac and FHA that have been through the foreclosure process and are being marketed for sale, as reported by the U.S. Department of Housing and Urban Development (HUD). Generally, places that suffered most during the housing bust from severely falling home prices and high mortgage delinquency rates now have the highest concentration of these vacant, foreclosed government-owned homes. The big exception is Florida . While the Sunshine State experienced big price declines and lots of defaults, surprisingly few of the homes lost there have made it through the foreclosure process and can be put back on the market. Why is that?  It’s because the foreclosure process in Florida takes a lot longer than in most other states. As a result, many of the Florida homes that the government and banks plan to put on the market someday are trapped in a slow limbo today. Would selling these government homes to investors help neighborhoods? Yes. Vacant, foreclosed homes drag down the value of neighboring properties, so getting those homes occupied would help stabilize neighborhoods. A push to rent or sell these homes can and would help neighborhood home prices in areas where the government owns a lot of the homes – but such a policy wouldn’t do as much good for hard-hit Florida where the government has less REO to sell. The map shows where the government owns the most REO ready to sell (relative to total housing units) – and where getting those homes occupied could help local markets the most. The Southwest, inland California , northern Georgia and southeastern Michigan stand to gain the most from selling or renting out government REO. But if you don’t live in a neighborhood with lots of homes that the government can sell or rent, then REO policies wouldn’t do you much good. Renting out these government-owned homes wouldn’t ease pressure on tightening urban rental markets. Renters typically live in bigger, denser cities, which are not where most of the government-owned homes are. In fact the typical location of a government-owned home is in a neighborhood with fewer renters, higher rental vacancies and where homes are more spread out. (FYI, this description is based on the housing characteristics of zip codes where these government REOs are located.) In short: you’d benefit if you live near government-owned vacant homes that get occupied, or if you’re looking to rent in neighborhoods where lots of overbuilding led to lots of foreclosures, but most people facing tight rental markets live far from these clusters of REO properties. Renting out government-owned homes wouldn’t give renters more options in most neighborhoods, which means that those same government-owned homes might have a tough time finding tenants. And even if the government sold all its REO to investors and those investors were able to find buyers or renters immediately, it would make only a small dent in the overhang of empty homes from the housing boom. Of all the REO homes currently owned by Fannie Mae, Freddie Mac and FHA, fewer than 100,000 units are currently listed for sale. (In total, including those not yet being marketed for sale, these agencies own over 200,000 homes.) There are over 3 million total homes on the market, plus millions more of “shadow inventory” – homes in default or foreclosure that aren’t on the market but are likely to be in the future. Getting people in 100,000 government-owned homes still leaves a lot of housing supply that will take years for the market to absorb. So is this policy a misstep? No. It would help some of the most struggling neighborhoods in the country by getting vacant homes occupied. It leaves lots of big problems unsolved, but no one housing policy will fix what ails every local housing market. And, remember, housing is local, so the housing market is not just the federal government’s problem: state and local governments need to act, too. Florida loses out on the benefits of REO sales because its foreclosure process takes so long. Cities with tight rental markets need to boost supply by undoing regulations that make construction expensive or impossible. Just because one policy wouldn’t fix everything is no reason not to do it, but we can’t stop there.

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Jed Kolko: Renting Out Government-Owned Homes Is the Right Move — But Probably Wouldn’t Make Any Difference to You

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Denver Company Halts Operations After Violent Peruvian Protests

November 30, 2011

LIMA, Peru — A $4.8 billion gold and copper mining project, Peru’s biggest such investment, was declared suspended Tuesday after increasingly violent protests by highlands peasants who fear for their water supply. At least 20 people, including eight with gunshot wounds, were injured Tuesday in clashes between opponents of the Conga project and police who used firearms, Cajamarca state regional health director Reynaldo Nunez told Canal N television. He said one person was in critical condition and the injured included police. “After discussions with the government, it was agreed that to help restore public order, the project would be suspended,” Newmont Mining Corp. spokesman Omar Jabara told The Associated Press via email. Denver-based Newmont is the majority owner of Conga, which was to begin production in 2015 and is an outgrowth of Yanacocha, Latin America’s biggest gold mine. However, leaders of the open-ended protest against the planned mine that began Thursday in the northern state bordering Ecuador said they would not halt the action until the project is canceled. Cajamarca’s president, Gregorio Santos, told the AP that opponents want “a legal document that definitively eliminates” the project. At a Lima news conference, Prime Minister Salomon Lerner did not answer a reporter’s question of whether the suspension was temporary or definitive. The protests have been increasingly violent, including vandalism on the mine’s property. The Yanacocha consortium, which includes the Peruvian company Buenaventura Mining Co. and the International Finance Corporation, said in a statement that the suspension was “required” by the government “for the sake of re-establishing tranquility and social peace.” Lerner, appearing at a the news conference with Newmont Vice President Carlos Santa Cruz, said the government was forging “a new relation between communities and mining, a relation that was historically marked by mistrust.” That includes, Lerner said, involving the local populace in decisions involving mines to “dispel all doubts and guarantee, as a priority, water for human consumption.” Local protest leader Milton Sanchez was not appeased. “We regret that the government’s reaction came after the spilling of blood in which today we have 17 wounded,” he told the AP by phone. “We peasants of Cajamarca feel tremendously defrauded by (President) Ollanta Humala and really consider him a traitor.” Humala, a center-leftist, had told Cajamarca residents before his June election that he would guarantee their water supply was more important to him than gold. Before the suspension announcement, government officials continued to insist the protests did not enjoy widespread support. “We regret the intransigence of the leaders who do not want to engage in dialogue,” Interior Minister Oscar Valdes told reporters. “We regret that they are against their own population, children who aren’t going to school, dairy farmers who are losing their milk.” Cajamarca is one the most heavily mined states in Peru, whose economy has been booming due high metal prices. Mining accounts for 61 percent of the South American nation’s exports. But peasants who live near mines complain that the government does little to ensure they don’t contaminate or diminish water supplies. Across Peru, there are currently more than 60 disputes over alleged damage to water supplies from mines, the country’s ombudsman’s office says. An 11-page Environment Ministry study of the Conga project completed last week urges modifications to ensure water sources are protected, especially regarding the replacement of four highlands lakes by man-made reservoirs. Local residents fear the displacement of those lakes could dry up an important aquifer. The project is located more than two miles (3,500 meters) above sea level, above the headwaters of two rivers. Environment Minister Ricardo Giesecke said after the study was leaked Friday that its conclusions did not amount to a rejection of the mine but rather guidelines for improving it. That only further angered protesters and a deputy environment minister quit over the government’s handling of the protests. The Mining Ministry approved the project in October 2010 and by law judges the environmental soundness of mining projects. Environmental activists contend the ministry is heavily influenced by the industry and biased against environmental protection. More than $40 billion in mining investments were lined up before Humala’s June election, and the mining industry agreed at his urging to a windfall tax to pay for social welfare programs that the government says will net $1 billion a year in revenues. ___ Associated Press writer Frank Bajak reported this story from Bogota, Colombia, and Carla Salazar reported in Lima. AP writers Franklin Briceno and Martin Villena in Lima contributed to this report.

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AT&T Considers Backup Plan

November 30, 2011

AT&T Inc (T.N) and T-Mobile USA’s parent Deutsche Telekom (DTEGn.DE) have discussed forming a joint venture that would pool the wireless operators’ network assets as an alternative if AT&T’s proposed $39 billion plan to buy T-Mobile USA fails, according to the Wall Street Journal.

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GOP Plan Includes Soliciting Millionaires For More

November 30, 2011

WASHINGTON — Senate Republicans unveiled a plan Wednesday to cut payroll taxes that asks the rich to pay more tax if they feel like it, freezes and cuts the federal workforce, and means tests for government benefits. The measure , introduced by Sen. Dean Heller (R-Nev.), is the GOP answer to a Democratic plan to extend and expand a payroll tax holiday through 2012 by slapping a 3.25 percent surtax on incomes above $1 million. Many Republicans oppose such a tax as “punishing job creators.” But they are not above requesting alms from the wealthy in a part of their proposal that sounds like a plea to millionaires. A fact sheet the Senate GOP leadership released says the plan: “Gives Millionaires & Billionaires Another Opportunity To Help With The Deficit” and “Includes Sen. John Thune’s ‘Buffet Rule Act of 2011′ which makes it easy for millionaires like Warren Buffet who want to pay more taxes to reduce the federal deficit with a voluntary contribution via their tax returns.” Despite the unlikely appeal to the wealthy, the measure does contain several provisions Democrats will have to take more seriously, including a suggestion backed by previous deficit-reduction efforts to freeze federal pay for three years and cut the federal workforce. The GOP plan cites Congressional Budget Office numbers that found such a move would save $111.5 billion. The plan also appears to pick up on a report by Sen. Tom Coburn (R-Okla.) that found millionaires get billions of dollars in federal benefits every year. The proposal suggests means testing such things as food stamps, unemployment insurance and Medicare to exclude millionaires. It also suggests freezing Social Security cost-of-living adjustments for three years for higher income recipients — which was first included in the health care reform law. Democrats were nonplussed by the offer, but said at least it shows Republicans favor the payroll tax cut. “We are glad Republicans have seen the light and taken up Democrats’ call to pass a middle-class tax cut, just a few days after their leadership indicated they would oppose it,” said Adam Jentleson, a spokesman for the Democratic leadership in a statement. “However, Democrats’ proposal would put more money in the pockets of middle class families and create more jobs.” “The Republican proposal cannot pass the Senate as it stands, but now that Republicans have reversed their position on this middle-class tax cut,” Jentleson said, “we look forward to working with them to negotiate a consensus solution.”

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Occupy DC To Target Democratic Fundraiser

November 30, 2011

WASHINGTON — The Washington arm of the Occupy Wall Street movement plans to target a high-dollar Democratic fundraiser near the group’s McPherson Square encampment Thursday night. The cost of attending the dinner for the Democratic Congressional Campaign Committee is a pricey $5,000 to $75,000 a plate. “This elitist event is indicative of how the Democrats represent a major part of our government’s failure to represent 99% of its citizenry,” reads an Occupy DC action alert. By marching on the Frontline Member Holiday Reception, the protesters seek to send a message to the Democratic Party that its reliance on corporate contributions makes it part of the problem — or all the problems. “Between 2009 and 2011, Democrats controlled both houses of Congress and the White House. In that time, unemployment reached its highest level since the Great Depression,” the alert states. “The big banks that crashed the global economy were not broken up, and are still ‘too big to fail.’ Taxes on the extremely wealthy stayed low. Health care and financial reform were deeply flawed, handicapped by lobbyist influence. Promises to take action on climate change, immigration reform, and anti-worker labor laws were forgotten. Wars expanded and dragged on. Banks got bailed out, while crushing debt burdens on American households have still not been relieved. Now, 15 Senate Democrats have voted against the Udall Amendment to the 2012 National Defense Authorization Act — essentially voting to dissolve habeas corpus in this country.” A Democratic operative, responding to the action alert, noted that there may be a political upside: Republicans will have a harder time accusing Washington Democrats of orchestrating the Occupy movement. Read the entire alert: ACTION Alert – Occupy DCCC: Let no party remain unaccountable to the people Posted on November 30th, 2011 What – Occupy DCCC When – 5 PM, Thursday, December 1 Where – Gathering at McPherson Square, marching to 727 15th St NW On the two-month anniversary of Occupy DC representing the voices and interests of the 99%, we will march on a Democratic Party fundraiser charging $5,000-$75,000 per dinner. This elitist event is indicative of how the Democrats represent a major part of our government’s failure to represent 99% of its citizenry. The party is part and parcel of a government in which about half of congressional members and most major presidential candidates are 1%ers — a government of the 1%, by the 1% and for the 1%. Because no party is representing the 99%, and because money should never equal speech, we are marching on a fundraiser for the Democratic Congressional Campaign Committee. Between 2009 and 2011, Democrats controlled both houses of Congress and the White House. In that time, unemployment reached its highest level since the Great Depression. The big banks that crashed the global economy were not broken up, and are still “too big to fail.” Taxes on the extremely wealthy stayed low. Health care and financial reform were deeply flawed, handicapped by lobbyist influence. Promises to take action on climate change, immigration reform, and anti-worker labor laws were forgotten. Wars expanded and dragged on. Banks got bailed out, while crushing debt burdens on American households have still not been relieved. Now, 15 Senate Democrats have voted against the Udall Amendment to the 2012 National Defense Authorization Act — essentially voting to dissolve habeas corpus in this country. It has become increasingly clear that the Democratic Party is fundamentally compromised by its reliance on corporate funding. The DCCC is a vehicle for the 1 percent’s influence in the Democratic Party and in America as a whole. It has received nearly $4 million in donations from the financial industry already this election cycle. Rep. Steve Israel, the chair of the committee and its top fundraiser, has received more support from the financial sector than from any other source, and his top donor is the war-machine producing defense contractor Northrop Grumman. The minimum donation for the event on Thursday is $5,000 and the maximum is $75,000 — when candidates are getting such lavish donations from wealthy individuals and corporate-sponsored political action committees, how can we expect them to attend to the needs of the 99 percent? We will only attain true democracy in this country when our government represents not the American dollar, but the American people. We will always stand against pay-to-play politics and legalized bribery in government.

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Storm May Leave Alaska Town With $9 Gas This Winter

November 30, 2011

ANCHORAGE, Alaska — The residents of Nome, Alaska, could be looking at a very costly winter: $9-a-gallon gasoline. The coastal city of more than 3,500 residents that is known for the Iditarod Trail Sled Dog Race is iced-in, and a massive winter storm this month prevented a barge that usually carries fuel from getting to shore. The most likely plan is to fly it in, but it would be costly and could be a logistical nightmare. “It could be pretty outrageous, the prices,” said Jeremy Nassuk, Nome airport fueler for Crowley Marine Services, Inc. A gallon of gas was selling for $5.98 and jet fuel $6.77 a gallon on Wednesday. The next barge delivery wouldn’t be until next June. In the meantime, flying fuel to the city could increase the cost per gallon by $3 to $4, officials said. “We are going to have to have fuel drivers picking up fuel 24 hours a day as flights are available to fly into Nome,” said Jason Evans, board chairman of Sitnasuak Native Corp., which provides services to the region. Sitnasuak arranged in May with petroleum distributor Delta Western Inc. to have three barges deliver fuel to Nome, but only one arrived early in the summer, Evans said. That barge carried home heating fuel. The storm that barreled into Alaska’s western coastline in mid-November, zeroing in on Nome, prevented the arrival of a barge carrying 1.6-million gallons of gasoline and diesel. “Ice is forming around the community and making a normal barge delivery impossible at this time,” Evans said. Delta Western has canvassed the nation looking for ice breakers and ice-class tugs and barges to get fuel to Nome, but so far has had no success, vice president Kirk Payne said. The good news is that the city is not in dire straits of running out of fuel, he said. “We got some time to work through this,” he said. “Can product be flown up? Yes, absolutely. What is it going to cost? We don’t know. Is the public going to see that cost? We don’t know.” Gasoline and diesel are needed to run the ambulances and state equipment to maintain and plow roads, Evans said. If nothing is done, gasoline and diesel supplies will run low within three months, he said. The plan is to have fuel delivered 4,000 to 6,000 gallons at a time by prop plane or jet, beginning before the end of the year. Sitnasuak is looking at a pared-down delivery plan of perhaps a half-million gallons, he said. That amount could increase if it turns out to be a cold winter, and so far it looks that way. “It has been cold up there,” Evans said. The temperature at 10 a.m. Wednesday was minus 2. A lot of people in the old Gold Rush-era town, where bars are housed in Western-style false-front wooden buildings and where temperatures can plummet to 30 below zero, don’t own cars and rely on taxis to get around. From one end of town to the other is about 5 miles, said Sunny Song, owner of Mr. Cab, which ferries children to school, nurses to their patients’ homes and women to hospitals to give birth. Mr. Cab now charges $4 per fare. Song said a big rise in gasoline prices will put them out of business. “It is going to kill us,” she said. But Polar Bar owner Patrick Krier isn’t worried. “People will still go out and have a few drinks,” he said. “That is inevitable.”

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Huge Announcement Coming From FarmVille Maker

November 30, 2011

By Anthony Hughes and Robert Sherwood NEW YORK, Nov 30 (IFR) – Zynga is expected to price its shares on December 15 in one of the most highly anticipated IPOs of the year. The IPO is expected to value the fast growing social gaming company at around $10bn, below some earlier estimates of as much as $20bn. The company is targeting a pricing range of $8-$10 per share, according to the source. Though the details are still being finalized, Zynga is likely to sell around 10% of its shares, including both new and existing shares, to the public. Having risen to prominence on viral games such as “FarmVille” and “Mafia Wars”, Zynga is widely expected to file terms on Friday for an IPO that would generate around $900 million in proceeds at the midpoint of the price range, the source said. Underwriters could ultimately upsize the deal based on demand. The timetable suggests the banks will opt for a standard nine-day roadshow, paving the way for a Nasdaq debut on December 16, a Friday. Zynga spokesman Adam Isserlis declined to comment. Another source familiar with the matter told Reuters on Wednesday that Pincus, the CEO, will not sell shares and neither will Kleiner Perkins, one of Zynga’s main venture capital backers. In its latest filing with the Securities and Exchange Commission on November 17, the company said a third party performed an analysis that valued the company at $14.05 billion. Zynga first filed plans to go public on July 1, flagging an offering in the order of $1 billion at that time. Morgan Stanley and Goldman Sachs are lead bookrunners on the deal, with Bank of America Merrill Lynch, Barclays Capital, JP Morgan and Allen & Company also named in the syndicate. Their underwriting committees at the banks involved are finalizing their participation in the offer. Sources told Reuters on Tuesday that Chief Executive Officer Mark Pincus will lead presentations to investors, along with Chief Operating Officer John Schappert and Chief Financial Officer David Wehner. Zynga’s games have 54 million daily active users and 227 million monthly active users in 175 countries, mostly via games on Facebook. The company is on track to become one of the fastest Silicon Valley companies ever to turn over more than $1 billion a year in revenue. Founded in 2007, the company increased its annual revenue from $19.4 million in 2008 to $597.5 million in 2010, and generated revenue of $828.9 million in the nine months to September 30, 2011. Over the same period, net income was $30.7 million and adjusted EBITDA $235.5 million. (Reporting by IFR’s Anthony Hughes and Robert Sherwood; Additional reporting by Reuters reporter Liana Baker) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Zipcar Debuts Brand-New Pilot Program — Only In San Francisco

November 30, 2011

Car sharing service Zipcar has already fundamentally changed the way hundreds of thousands of people across North America and the United Kingdom get around. Now, the Cambridge, Mass.-based firm plans to directly challenge truck rental companies like U-Haul with a new pilot program launching in San Francisco offering van rentals in addition to its normal car rental options. The company will being offering Ford E-150 cargo vans for $14.75 per hour and just under $100 per day. Unlike many other rental companies, Zipcar doesn’t charge extra for fuel or insurance. The appropriately named Zipvan service will lunch early next year with 15 vehicles available at selected locations in both San Francisco and Oakland. If the program proves successful, the company plans to expand it to other cities across the country over the next year. The company already offers vans in the the U.K though a similar company it acquired there called Streetcar; however, San Francisco is the first city in the United States or Canada to get the vans. “Based on the success we’ve seen in London and the enthusiasm from our members expressed through our Zipcar member survey, we’re thrilled to launch this pilot in San Francisco,” said Zipcar CEO Scott Griffith in a press release . “Whether you’re planning a move across town or about to make a new purchase for your apartment or a business with an occasional need for a larger vehicle, transporting large items in the city is a real hassle. Zipvan aims to make it more convenient and more affordable to move stuff around.” In an internal survey taken among its users, Zipcar found that 40 percent of them are interested in the van rentals. The company has long geared its service towards young people and urban dwellers who are naturally comfortable with its online reservation system and often only require an automobile for the occasional trip to the grocery store instead of a daily commute. The New York Times reports : Zipcar has built its business in part by catering to college students who would not meet age requirements for regular car rentals. Consequently, serving the legions of early-twentysomethings moving in and out of dorms could help it compete in the van-rental market. Budget tacks on a daily surcharge of $18 for those aged 21 to 23 years old. No such fee applies for Zipvan rentals. The company boasts over 650,000 members who use approximately 9,500 of its vehicles. Check out this video of Zipcar’s co-founder talking about how the company’s pricing model changes the way individuals interact with their urban environment:

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Paula Goldman: Don’t Be Redundant

November 30, 2011

This is not an invitation to a picnic. So warns the preface of Antony Bugg-Levine and Jed Emerson’s book Impact Investing: Transforming How We Make Money While Making A Difference . If you haven’t heard of impact investing — the practice of investing money for both financial return and social good — it’s worth tuning into the buzz. MBA students around the country are enrolling in courses on the topic with the hopes of finding a job in the industry after graduating. JP Morgan has predicted that the market for impact investments could grow to up to a trillion dollars in the next decade. Impressively, for all this hype, Bugg-Levine and Emerson do not shy away from the hard questions. It’s fun to think we can snap our fingers and find profitable companies that also transform the lives of the disadvantaged. But many challenges remain unresolved. Possibly the most important question: why do we actually need impact investors? What can impact investors do that philanthropists, the government, and the commercial sector cannot? The world of international development is the perfect cauldron in which to test these questions. Decades ago, the developing world was full of dedicated idealists who started non-profits to help the poor. They built latrines and schools. They distributed bed nets. And they often found ready funding for their efforts. Today, as government dollars have dried up, there’s been a decided shift towards market-based strategies as an additional way to finance social change projects. As a complement to making grants to non-profits, a key trend is to invest in for-profit companies that can give poor villagers access to needed services — while still earning revenue to stay afloat. But where is this really necessary? When I chatted with Bugg-Levine, he pointed me to a recent New York Times article noting that even the most traditional Wall Street investors are rushing “to the ends of the earth” trying to find opportunities in the riskiest developing markets. Do we really need do-gooder investors running around in such places if the markets they’re investing in would grow with or without them? The short answer? Yes. But it’s often a tricky calculus to determine exactly when and where their money can be put to best use. In the book, Bugg-Levine and Emerson point to the example of International Finance Corporation (IFC). For decades, the IFC had had tended to concentrate its investments in the middle-income countries rather than the poorer ones — despite its mandate to help the most disadvantaged. It’s certainly easier to find investment opportunities in places where good infrastructure already exists, but these are not always the places where such funds are most needed. As one step towards resolving this quandary, the IFC recently recalibrated their distribution of investments. They shifted a small portion of their funds away from richer markets such as Eastern Europe and to higher-risk markets in places like Bangladesh, Sierra Leone, and the Central African Republic. The authors also examine a related controversy that came up in the field of microfinance. No doubt you’ve heard the inspirational stories of women who use a loan to start a corner store — and then use the profits to send their daughters to school. In the beginning, the microfinance industry was primarily capitalized by organizations that kept the social mission of microfinance front and center. The idea that poor people could repay loans was seen as laughable by most mainstream investors. But in the 1990s, as the industry matured and the business case was proven, Wall Street took notice. Lots of large banks began knocking down the doors to start getting a piece of the action. In 2007, the non-profit organization MicroRate issued a controversial paper arguing that it was time for some of the early socially motivated investors to move out of the way; their presence was now not only superfluous, but actually preventing commercial capital from funding the industry. Why would this matter? It’s great for a few million people to have access to microloans — but when there are billions of people living under two dollars a day, you need all the scale you can get in the microfinance industry. It’s likely impossible to serve that many people without access to the sums of money that can only be found in the commercial sector. Refreshingly, Bugg-Levine and Emerson steer clear of dogmatic responses to these debates. Instead, they offer us a simple call to action: don’t be redundant. Arguably the highest value add of impact investors is to catalyze new markets to serve the disadvantaged. Medical technology for the poor who don’t live within driving distance to a hospital and often die from diseases that have easy cures. Financial services for people who don’t make enough money to be deemed worthwhile by bigger banks, and are often forced to take payday loans at exorbitant rates. Some impact investors will get involved in very early days, providing risk capital before commercial markets are convinced of the viability of a new product or idea. Some of these investments will fail, but some will succeed spectacularly; the learning from both will make an enormous contribution to the growth of the sector. Others will choose to invest later, when proof points are more plentiful and more commercial capital is flowing. Here, impact investors can make a difference by ensuring that the markets continue to focus on underserved segments, or that these industries can keep growing to serve new geographies. But they also must be careful to ensure that any investments made on concessional terms don’t prevent mainstream investors from placing their own money towards these same goals. In short, impact investors need to get very clear on issues of staging and sequencing in their investment strategies. And there’s a tremendous amount at stake in taking this task seriously. There’s not enough philanthropic or government money in the world to solve the problems we need solved. If impact investors do their job well, they can tap into new forms of capital we can use to help solve the world’s burning issues. If they do their job poorly, they risk simply redistributing philanthropic funds from one bucket to another — or worse, using them to support outcomes that the commercial sector would achieve with or without them. Thankfully, there are industry leaders like Bugg-Levine and Emerson who will not let their colleagues be contented by simple catchphrases about “doing good while doing well” or “marrying profit and purpose.” Impact investors can indeed change the world. But much of the difference between their success and their failure will be about asking the right questions.

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GOP Threatening Middle Class: Dems

November 30, 2011

WASHINGTON — Democrats and labor leaders went on the offensive against anti-union House Republicans Wednesday, accusing GOP members and business groups of threatening the country’s middle class through a raft of legislation that could weaken unions. At a forum hosted by the AFL-CIO, Sen. Tom Harkin (D-Iowa) argued that Republican efforts to strip power from the National Labor Relations Board, the federal agency that enforces labor law, were part of a broader attack on collective bargaining rights across the country. The fight, he added, was ultimately about “fairness and equity” in the economy. “We’ve got to quit being on the defensive,” Harkin said. “We have to take our case to the American people … attacking [Republicans] for what they’re trying to do. The American people are starting to understand how unfair the economic system is, how unfair it is for banks and the wealthy to get all the government largesse and for working people to get nothing.” The remarks from Harkin and others came just hours before the House passed one of several bills designed to limit the powers of the labor board, which Republicans have lambasted as overly sympathetic to unions and harmful to businesses during the Obama era. The GOP-sponsored Workforce Democracy and Fairness Act would scuttle a rule recently put forth by the labor board that would streamline the union election process and likely make it easier for workers to join unions. Bill co-sponsor Rep. John Kline (R-Minn.) has claimed the board’s rule would lead to “ambush elections” by unions, while supporters of the rule say it would merely remove red tape and give employers less time to pressure workers against unionization. The Republican measure enjoyed broad support from business heavyweights such as the U.S. Chamber of Commerce, the National Retail Federation, and the American Hotel & Lodging Association, though the legislation is unlikely to go far in the Democrat-controlled Senate. In addition to holding four congressional hearings this year on what they’ve described as NLRB overreach, House Republicans have gone so far as to propose legislation that would strip the board of its powers or defund it entirely. Many GOP members were hoping that Brian Hayes, currently the board’s lone Republican, would resign in order to kill the board’s quorum and essentially shut it down. Hayes said Wednesday that he did not intend to. At the AFL-CIO event, Rep. George Miller (D-Calif.) said that the attacks on the labor board coming from Republicans are unlike anything he’s seen “in all my time in public life.” “They have decided they don’t want the collective bargaining process to continue in this country,” Miller said. “This isn’t some tinkering … it’s about ending this agency. [Labor law] is the basic fundamental economic underpinning of the middle class in this country. It’s the wages and benefits of the working people.” In a reference to the Occupy Wall Street protests, Miller added, “That’s why you see tents around this city and this country asking for shared sacrifice.” The forum at the AFL-CIO coincided with the release of a report on Republicans and the NLRB from the Center for American Progress Action Fund, the lobbying arm of the well-known progressive think tank. Arguing that the American middle class has weakened as union ranks have thinned in recent decades, the report asserts that “House Republicans are using every tool available to them — including their budget, regulatory, and legislative-oversight powers — to wage a coordinated attack on workers’ rights by trying to eviscerate the National Labor Relations Board.” The GOP’s feud with the labor board started back in the spring, when the NLRB’s general counsel, Lafe Solomon, filed a complaint against the Boeing Company. The complaint alleged that the aerospace giant broke labor law when it established a production line for its 787 Dreamliner in South Carolina. Solomon claimed that the move amounted to retaliation against Boeing’s unionized workers in Washington state for having gone on strike in the past. The complaint put Boeing’s plans in South Carolina on hold, but on Wednesday Boeing and the union reached a contract agreement that could resolve the complaint. Although many labor experts say the complaint was not unusual, Republicans have portrayed it as an abuse of power, arguing that it will have a chilling effect on businesses. They said the same of the union election rules put forth by the labor board. In a discussion of the election rules on the House floor Wednesday, Rep. Tim Walberg (R-Mich.) said that the NLRB has “taken actions that directly oppose American job providers,” adding that “job creators are terrified of the NLRB’s actions.” The bill passed Wednesday would assure that no union election could take place within fewer than 35 days after a union has gathered enough signatures for a formal petition. Union backers argue that such a guarantee would give management more time to employ union-busting tactics, while Republicans said they simply want to give workers more time to get information. Kline said that workers “shouldn’t be deprived of the opportunity to make an informed decision. When the labor board announced the streamlined rules earlier this year, then-chairwoman Wilma Liebman said the board was merely hoping to resolve “representation questions quickly, fairly, and accurately.”

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David Isenberg: PMC in U.N. Operations? It Depends

November 30, 2011

For many years now supporters of private military and security contracting firms (PMSC) have argued that they can play a useful role in United Nations peacekeeping and peace enforcement operations. Certainly, the possibility that PMSC can bolster U.N. peace operations has an intuitive appeal. After all the problems with U.N. peacekeeping operations are longstanding and well documented; much of it having to do with the reluctance of the various U.N. member states to provide sufficient numbers of qualified troops for various crises which, while unfortunate, are not considered to be in their national interest when it comes to deciding whether to become involved. And for at least two decades now PMSC advocates have been arguing that private contractors are more flexible, quick to deploy, easier to scale up, and more cost effective than regular military forces. It is also true that in the past certain private firms have performed noticeably well in various wars. So let’s examine the pros and cons of this in more detail. Fortunately, a detailed article was published last year in the Journal of Military and Strategic Studies in Canada. The article, which won first prize in the JMSS Awards of Excellence 2010 contest, is From Dogs of War to Soldiers of Peace: Evaluating Private Military and Security Companies as a Civilian Protection Force by Stephen Wittels. According to Wittels, using private contractors solves the political cost problem, since, there is little to no domestic outcry when contractors are killed, as opposed to regular military forces. I feel sad to write this but given a decade’s worth of experience in Afghanistan and Iraq it is hard to argue to the contrary. It also addresses a quality problem, since one of the greatest difficulties the UN has in fielding effective military contingents is its major member states tendency to treat UN missions as an opportunity to sustain their ill-prepared forces on the cheap. Another virtue of contractors is that it helps solve the “flawed mandates” problem which plagues complex UN peace operations. Mandate problems generally fall into one of two broad categories. The first occurs when U.N .bureaucrats push through a strategy or concept of operations to which TCCs (Troop Contributing Countries) do not fully consent, leaving field commanders in a situation where the military means available to them do not match the U.N.’s stated political ends. A second conundrum follows when the UN must depend exclusively on a single member-state for a given operation’s success. In this situation, the lone contributing country is free to dictate terms to UN officials, making the organization vulnerable to abandonment. By procuring at least a portion of its military resources from entities other than nation-states, and thereby denying one TCC a disproportionate impact on a mission’s strategy, the U.N.’s vulnerability to both of these problems will likely be reduced. Of course, all of these assumed virtues are dependent on the industry’s ability to live up to its promises. There is room for doubt on that point. Wittels writes: Cursory analysis of private forces’ attributes in the areas of numerical strength, force quality, mandate tenability, command and control, rapid reaction, and staying power indicate that non-national military and security personnel should, in theory, constitute an improvement over the existing means of fielding robust UN missions. The above analysis also demonstrates, however, that on some matters there is reason to be skeptical that private forces’ potential utility can be realized in practice. Bear in mind that Wittels himself believes that “The answers to each of these questions indicates that private forces can be an improvement over U.N. forces in absolute terms and can furthermore achieve this at reasonable costs to U.N. member-states.” So he is far from opposed to using PMCs in U.N. operations. Let’s start with how many people will actually be needed. (For detail start reading at page 153 in Wittel’s article) Estimating the future can only be approximate, never precise, but looking at both ongoing and possible future peace operations Wittels writes that “one can rationally posit that 100,000 additional forces will be needed by the year 2020.” Of course, the estimate also depends on exactly what it is one wants a private contractor to do. If one takes as a main reason for hiring private protection forces the desire to relieve DPKO of the need to use inferior troops and police, then it reasonable to assert that private forces should be numerous enough to effectively crowd out these forces in the market for protection forces. Taking the per-country ratios of troop donations observed in 2009 as fixed, the conclusion is that sub-standard forces constitute roughly 70 percent of the total supply of coercive protection forces. The data in Figure 1 allows one to further translate this fraction to actual market demand for private personnel: Under the least burdensome scenario, the current optimal market supply of private personnel is 52,500 troops and police. At the opposite end of the spectrum, the figure is 105,000. In both cases, an additional 7,000 contractors would be needed to satisfy demand each year. Skipping over his discussion of past contractor use in Africa, Central Europe, Iraq, and Afghanistan, Wittels notes: It is now possible to inquire whether PMCs can deliver enough manpower to make an analogous situation of UN-mandated private coercive protection viable. If one compares the demand figures in Table 1 with the availability of reliable contractors, the answer is unambiguously‚ no. The data from Iraq indicate a market ceiling of around 22,500 armed personnel. Even if one doubles this figure under the somewhat implausible assumption that inferior companies are crowding out half of PMCs’ capacity in Iraq, the total still is short of even the lowest troop estimate of 52,500 provided in Table 1. However that doesn’t mean contractors might not be the right choice. “Comparing private military contractors to an equal number of UN troops is not an apples-to-apples comparison, however. As the preceding analysis demonstrates, an accurate measure of relative worth must at the very least take into account fighting expertise, ability to train co-combatants, and risk-acceptant deployment of equipment,” according to Wittels. Knowing roughly what the in-theater ‚multiplier effect‛ is for PMCs allows interpolation of how many effective units of force the PMC industry can put forth for coercive protection. Consider two scenarios based on concerns raised earlier in this section about the true number of reliable contractors in Iraq and the difficulty of coercive protection relative to EO/Sandline’s activities in the 1990s. In a positive outlook scenario for PMC use in UN-mandated missions, there are in fact more than 22,500 contractors available (assume 45,000), and coercive protection is no more difficult than defeating an aggressor. In a more pessimistic scenario, the number of available contractors appropriate for coercive protection is below 22,500 (assume 10,000), and coercive protection is much more difficult that being a partisan in a civil war (assume twice as difficult). The point of the above is not to argue that contractors can’t play a useful role in U.N. peace operations. Rather it is to say that the answer to the question of whether their use makes sense is that it depends. To argue that contractors will always be a net benefit is as silly as arguing as they will always be a net liability. The truth is that U.N. peace operations, whether peacekeeping or peace enforcement, will always be complex, delicate endeavors where Murphy’s Law runs rampant. Whether use of PMC makes sense will require impartial, dispassionate consideration of evidence; not reliance on industry clichés that PMCs are the modern day equivalent of the Six Million Dollar Man . One last point: PMC advocates commonly argue that in many cases PMC personnel are more professional than many of the regular military personnel in U.N. peace operations, as the latter may be ill-trained conscripts. While it is true that many private security contractors, especially from Western countries were once former highly trained military personnel themselves it is equally true that professionalism is as much a function of control and contract wording as former training. Consider what Wittels writes: From a tactician’s perspective, private forces are unquestionably superior to the overwhelming majority of UN coercive protection forces. However, complex peace operations with civilian protection components have more than a tactical dimension. In particular, they require forces that have both the raw war-fighting skills necessary to succeed in combat and the capacity to promote law and order in civilian populations. While it is eminently clear that private security personnel fulfill the first half of this formula, their competencies as agents of law and order have on numerous occasions been called into question. Blackwater International leaps to mind as an important case for discussion when considering this issue. There is no doubt that Blackwater contractors were often unnecessarily rash in their use of force in Iraq. However, a closer examination of the complex context in which Blackwater operated in theatre leads to the supposition that it is not necessarily the company’s natural disposition to behave with impunity towards civilians. Consider, for example, the following quote from Marine Col. Thomas X. Hammes, the officer in charge of reconstructing the Iraqi military after Ambassador L. Paul Bremer disbanded the Saddam-era army, and an individual whose job was made much harder by Blackwater contractors’ conduct: … they were doing their job, exactly what they were paid to do in the way there were paid to do it… If Blackwater loses a principal (like Paul Bremer), they’re out of business aren’t they? Can you imagine being Blackwater, trying to sell your next contract saying ‘Well, we did pretty well in Iraq for about four months and then he got killed.’ And you’re the CEO who’s going to hire and protect your guys. You’ll say, ‘I think I’ll find somebody else.’ Because the State Department failed to build into Blackwater’s contract strong incentives to treat Iraqis respectfully, the company did not. Indeed, Blackwater had every reason to shoot first and ask questions later with regards to Iraqis since any civilian could, in theory, have been an assassin, and contractors were, for the first few years of the war, immune to prosecution. It should also come as no surprise that in this consequence-free environment, Blackwater employees adopted excessive aggression as their default disposition, even when it served no apparent purpose. Had their assignment and their conduct been properly engineered in their contract from the outset, a strong argument can be made that Blackwater would not today be known as a collection of “cowboys.”

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Fate Of WebOS Will Be Decided Shortly

November 30, 2011

Hewlett-Packard CEO Meg Whitman just gave an interview to Le Figaro, a French newspaper, saying that a decision on what to do with HP’s webOS software will come within the next two weeks.

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More Companies Making Safer Cosmetics, Group Reports

November 30, 2011

SAN FRANCISCO — A coalition of consumer and environmental groups says several hundred companies now meet all or many of the goals in its campaign to get hazardous chemicals removed from cosmetics and other personal care products. The Campaign for Safe Cosmetics has been working for seven years to get makers of shampoo, soaps and other toiletries to remove the chemicals linked to birth defects and preservatives that releases formaldehyde from those products. It says 321 companies have now met all the campaign’s goals and another 111 have met many of them. The coalition of about 150 groups also has been pushing Johnson & Johnson to remove harsh and potentially dangerous chemicals from its baby products worldwide. The health giant is now steadily doing so.

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Anne Day: Eight Ways to Rethink and Redesign Your Business

November 30, 2011

I remember years ago hearing an early childhood educator explaining that in children’s art, whatever is important to them is usually larger than life, and out of proportion because that was their focus. At that time, when I looked at my young daughter’s sculpture of herself, sure enough, the earrings were massive (she desperately wanted to get her ears pierced). If you relate this concept to your business, I wonder if we tend to focus most on what is important to us rather than what is of crucial interest to our clients or customers? In other words, we’ve maybe taken our eyes off the ball and been all consumed with getting the word out about our product or service, when we are not even speaking the right language, one that translates well to our target audience. As someone who last year hosted 80 events, I can tell you that much of our time is spent — excuse the expression — “getting bums in seats.” And these days that is getting harder and harder as people are super busy and are hunkering in for the cold of this economic winter. It is also extremely stressful, as people leave it to the last minute to register, so you never really know where you stand number-wise until the day of the event, when it is too late to cancel. Or you make the decision to pull out, and people later appear out of the woodwork, disappointed that the event is not going to happen. It’s a financial seesaw where some you win, and others you lose. It therefore pays to look at the big picture — of your own business and everyone else’s rather than focusing on one aspect, no matter how important it may be to you. It’s a changing world of business, and if our businesses are to survive, we need to be flexible and prepared to change how we do business. It’s time to reflect, rethink and redesign what we do. Easier said than done. Many of us are locked into delivering our products and services in one way, but it behooves us to look beyond that and truly reflect on what our customers need and want, not what suits us to provide for them or what makes us the most profit. Remember if no one is buying, you’re not making money at all. Where do you start? 1. Check in with your customers. Find out what are the pressing issues and challenges they face. They will be pleased to be asked. 2. Look to see if there is a fit with something you could offer to relieve their pressures or address their problems. 3. Revisit your offerings, ask yourself what could still be offered but re-tweaked and packaged in a different way. 4. In this tight economy, people are looking for value for money. Do the math, number-crunch the figures and see how you can come up with something that is affordable, but still allows you to make a profit. 5. People like to feel they are getting a deal. Be prepared to give something away in order to attract them to your business and other purchases. 6. Once you have decided on your new track, let your customers know. Thank them for their input. 7. Consider starting up or reviving your ezine so customers frequently hear from you. Make sure you provide value-added information and don’t just promote your business. 8. Use social media — like Twitter, Facebook and LinkedIn to spread the word. The price is right. And like the earrings, just because you want something badly doesn’t always mean that it will happen straight away, sometimes you just have to wait until the time is right,

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Republican Leaders Quietly Support Unemployment Reauthorization

November 30, 2011

WASHINGTON — For the second year in a row, Congress must decide during the holiday season whether to renew federal jobless benefits for people out of work six months or longer. While Democrats have been making a huge fuss, with a press conference Wednesday featuring hundreds of unemployed workers, Republicans have been relatively quiet — but that doesn’t mean they’re against reauthorizing the benefits. Republican leaders in both Houses of Congress have expressed support for continuing the benefits, saying the holdup is just a matter of how the legislation is put together. “We’re going to be discussing between the House and Senate ways to deal with both continuation of the payroll tax reduction and unemployment insurance extension before the end of the year,” Sen. Mitch McConnell (R-Ky.) said Tuesday. “And in the end, it will have to be worked out in a joint negotiation between a Democratic Senate and a Republican House.” If the benefits are not reauthorized, 1.8 million jobless will stop receiving checks over the course of January, according to worker advocacy group the National Employment Law Project. The federal benefits kick in for laid off workers who use up to six months of state-funded compensation without finding work. Congress routinely provides extensions during recessions and hasn’t dropped extended benefits with the national unemployment rate above 7.2 percent. Yet the need to reauthorize benefits has been overshadowed by the looming expiration of a payroll tax cut put in place last December, which would result in a tax hike on every working American — an average hike of $1,000 — a scenario Republicans would like to avoid. And Congress also needs to pass a so-called “doc fix” by the end of the year to prevent a 27 percent cut in pay for doctors who see Medicare patients. “Nobody is coming out with any definitive statements on [unemployment insurance]. Last year they were happy to,” Judy Conti, a lobbyist for NELP, told HuffPost. “I think it’s indicative of the fact that on a bipartisan basis people understand that workers families and the economy need these programs to continue.” The sticking point over renewing the benefits through next year will be their roughly $50 billion cost. Republicans typically insist that the aid must be “paid for,” but that calculation may not apply if the benefits can be attached to something attractive like a tax cut. Republicans blocked renewed unemployment aid last year until President Obama agreed to extend the Bush-era tax cuts for two more years — at a cost much greater than unemployment. Earlier this year President Obama pressed Congress to pass a jobs package that included many items Republicans favored — for instance a “Bridge to Work” training program — but so far congressional Democrats have not signaled support for those programs. Many members of Congress expected the deficit reduction super committee to craft a deal that included the benefits, but the committee turned out to be less super than advertised . “Any kind of grand deal that we’ve been after has eluded us,” House Speaker John Boehner (R-Ohio) said Tuesday, referring to the failed broader talks on the budget and debt. “So let’s try and work incrementally towards a conclusion this session that can benefit all Americans. Because we Republicans do care about people that out — that are out of work. We don’t want to raise taxes on anybody. We want to provide the help to the physicians and the providers in the health care arena in this country, and we want to make sure this country has a sound national defense policy.” Even Sen. Orrin Hatch (R-Utah), who suggested during an standoff on jobless benefits last summer that unemployed people blow the money on drugs, sounded sympathetic to jobseekers on Wednesday. “Nobody really has a real quick answer. We’re studying it, looking at it. We’re clearly going to have to do something — nobody wants to see people suffer,” Hatch told reporters outside the Senate floor on Tuesday. “There’s a huge underemployment rate as you know, of 16, 18 percent, somewhere in that area. People don’t even want to look for jobs anymore. There oughta be some incentives to find jobs, to get to work. It’s easier said than done. I think there’s a general consensus that we need to help people.”

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Keating Capital Announces Management Changes and Board Addition

November 30, 2011

Hires Chief Financial Officer and Appoints New Board Member

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McDonald’s Sidesteps SF Happy Meal Toy Ban

November 30, 2011

On Thursday, San Francisco’s controversial Healthy Food Incentive Ordinance takes affect, banning toy giveaways with children’s meals at fast-food restaurants unless the meal meets San Francisco’s strict nutritional standards. And McDonald’s has already figured out a way to sidestep the ban almost entirely. The ban targets Happy Meal-style toys, claiming that the inclusion of an incentive item unfairly targets marketing at children who are unable to make healthy decisions for themselves. Though it was slammed by critics who claimed the ban enforced “nanny state” politics , the ordinance was easily passed by the Board of Supervisors in an 8-3 vote. Supervisor Eric Mar, who has a young daughter, introduced the ban, arguing that the “pester power” of a young child seduced by the toys can be enough to persuade parents to buy the unhealthy meals. But instead of changing the content of Happy Meals or eliminating the toys, McDonald’s is complying by charging a meager ten cents for the addition of a toy — with the proceeds benefitting the Ronald McDonald House Charity. Well played. And if Mar’s “pester power” is enough to drag parents to McDonald’s in the first place, there is little doubt it will be enough to make them cough up an extra dime. “Instead of doing the right thing, McDonald’s is avoiding limiting its marketing to kids or improving the nutritional quality of their unhealthy food by selling toys “separately” for an additional ten cents — while still requiring purchase of a Happy Meal to get the toy,” said Sara Deon, the Value [the] Meal Campaign Director at Corporate Accountability International , to The Huffington Post. “Though McDonald’s has taken this cynical approach to sidestep the new policy, the law has already had a tremendous impact.” The impact of the ordinance — and legislation like it — has indeed been palpable: McDonald’s started offering options like milk and apple slices with its Happy Meals in July , and Jack in the Box dropped toys from children’s meals all together . But with a toy still available with the French fry-soda-fried chicken-laden calorie bomb Happy Meal for a measly ten cents, we have a feeling it will be business as usual at the world’s largest fast food chain. While advocates of the ordinance are disheartened by the announcement, supporters insist that San Francisco is still taking a large step in the right direction. “This law is an important achievement not only for the health of San Francisco’s children, but for children nationwide,” said Mar. “We are ensuring that parents and children have real choices when they eat out — especially in communities saturated with McDonald’s-style junk food.”

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Don McNay: Boomer Professionals Embrace Video Conferencing

November 30, 2011

“People get ready, there’s a change a comin.’” – Curtis Mayfield In 1988, MONY Securities in Atlanta invited me to speak at a conference. The president of the company insisted I read an obscure book by John Watts, The Financial Services Shockwave: Survival Tactics for Wall Street and Main Street. A great book in its era, Watts made predictions about how technology would change the financial world. Some were right, some were wrong. But his best was the vision that financial advisers would someday communicate with their clients via video conferencing. This was decades before Skype. It was at least a decade before widespread use of the Internet. Watts had an idea that I thought would revolutionize the financial services industry. His idea seemed far-fetched and way off in the future. As former Washington Redskins coach George Allen used to say, “The future is now.” When I read The Financial Services Shockwave 23 years ago, I immediately grasped how Watts’ idea would help my business. I live in Central Kentucky. Many of the attorneys and claims professionals I work with are in places like Washington, D.C., or New York City. It’s expensive and time consuming to visit them. I also do business is a lot of small towns, such as Glasgow, Kentucky, and Terre Haute, Indiana. You can’t just hop on a commercial plane and go to Glasgow in Kentucky. When I drive to see someone in one of those cities, it’s the only place I can be that day. As the group Spinal Tap said, “It’s a great big world and there’s only one of me.” My expertise in is obscure financial topics, like structured settlements, qualified settlement funds and special needs planning. I realized that improved communications would open large new markets. I saw the opportunity. But I didn’t have the technological resources to take advantage of it. Like Diogenes searching for an honest man, I spent many years searching for a video conferencing system that would work for me. I also needed to convince the lawyers, mediators and claims people on the other end to be as technologically aware as I was. I was the first person I knew to use email. It took me awhile to find a second person. Same with Facebook, Twitter and social media. I was ahead of the curve and had to bring my customers and peers along with me. By the time Skype came along, I had moved away from the video conferencing idea. I used Skype several times to appear on television shows (mostly in Canada) but I did not like the connection or how it looked on my computer. Then I found a Skype television. Mine happens to be a SONY Bravia (which costs about $1,000) but there are several brands. It was simple to set up and suddenly I was video conferencing on a 50-inch screen with perfect sound. I felt like a news anchor on CNN or Fox. I could talk to person on the screen like they were in the room with me. I then asked my baby boomer Facebook friends how they used video conferencing. Former Lexington (Ky.) Mayor Jim Newberry is the managing partner for the law firm of Hargrove, Madden. That firm, which specializes in estate and tax planning, seems to be the embodiment of John Watt’s vision. They have an “online practice” that combines the use of internet, expertise and video conferencing. Along with expanding their reach, they use video conferencing to save money. Newberry told me that when interviewing several attorneys for an office in another state, they conducted the initial interviews over video conferencing. They saved thousands of dollars they would have spent in travel costs. Scott Neal, a fee-based financial planner in Lexington is another who has embraced video conferencing in a big way. Neal, whose extensive background in accounting led him to the fee- based planning concept, has a partner in Louisville, a city with a similar background. They meet online daily and have staff meetings over video. Video conferencing is not a new technology. But being able to do it easily and efficiently, with good quality, is new to me. It opens up new ways to communicate and grow my business. I am technologically hip for someone who grew up with slide rules and before personal computers, but there are gaps in my ability to use complex equipment. Now communicating around the world is as easy as picking up a television remote. A couple of decades after John Watts described it, the Financial Services Shockwave has finally arrived. Don McNay, CLU, ChFC, MSFS, CSSC is the bestselling author of the book “Wealth Without Wall Street: A Main Street Guide to Making Money.” http://www.amazon.com/Wealth-Without-Wall-Street-Making/dp/0979364477/ref=sr_1_1?ie=UTF8&qid=1322669291&sr=8-1 McNay, who lives in Richmond Kentucky, is an award-winning financial columnist. You can learn more about him at www.donmcnay.com.

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Jared Bernstein: Understanding Where the Occupy Folks Are Coming From

November 30, 2011

I’m compelled to write a bunch about inequality. What are the facts of the case (my CBPP colleagues are doing great stuff on this that I want to promote)? Why has it gone up so much? Why does it matter? Where is it headed? Why so much interest in it right now? Is it a political force? So let’s start with facts of the case. If you want to quickly and efficiently get up to speed on the income inequality story in the US — and who doesn’t? — read this from my CBPP colleagues. It takes you pretty far into the weeds on data sources and the like, but this is one of those economic issues where the sources matter a great deal. Series that fail to include realized capital gains, for example, will miss important dynamics going on in the upper tail of the income scale. Here’s their summary of the broad trends: The years from the end of World War II into the 1970s were ones of substantial economic growth and broadly shared prosperity. Incomes grew rapidly and at roughly the same rate up and down the income ladder, roughly doubling in inflation-adjusted terms between the late 1940s and early 1970s. The income gap between those high up the income ladder and those on the middle and lower rungs — while substantial — did not change much during this period. Beginning in the 1970s, economic growth slowed and the income gap widened. Income growth for households in the middle and lower parts of the distribution slowed sharply, while incomes at the top continued to grow strongly. The concentration of income at the very top of the distribution rose to levels last seen more than 80 years ago (during the “Roaring Twenties”). Wealth (the value of a household’s property and financial assets net of the value of its debts) is much more highly concentrated than income, although the wealth data do not show a dramatic increase in concentration at the very top the way the income data do. This picture from recent CBO data, which are among the best for understanding the trend in income inequality over the past few decades, is quite revealing of where the Occupy folks are coming from with the 99/1 framing. One thing to note here is the large decline in gains to the top 1% after the dot.com bust. That’s a function of the decline in asset values which led to large capital losses for high-end households. The CBO data end in 2007 but you can be sure the top took another hit with the bursting of the housing bubble and the ensuing financial meltdown. In fact, IRS data, which go through 2009, show the share of adjusted gross income going to the top 1% to have fallen sharply in 2008 and 2009, from around 23% in 2007 to 17% in 2009. But that’s expected. The question is whether it’s cyclical or structural and the answer is that it’s almost certainly the former. Note the huge bounce back in the growth of top incomes once the economy recovered. Since the underlying forces generating the increasingly unequal distribution of growth remained in place, there was no reason to expect a structural downshift (more on those forces in later posts, but here’s an earlier post that gets into that material). What does the future hold in this regard? Will inequality, as measured by the share going to the top 1%, start climbing again soon? I’m quite certain it will as the forces stoking its growth remain in place. One way to test this hypothesis is to look at the correlation between the growth at the top of the income scale and corporate profits, for which we have data through 2010, and which have fully regained their stellar pre-recession peak. The figure shows the result of a simple model regressing the CBO top 1% series on corporate profits (as a share of income) and a time trend (other than the time trend, I use the changes in the variables). It’s a simplistic model — nothing you’d want to take home to your parents — just “blogometrics.” But what we’re looking for here is whether the forecasted series (in red) ticks up in 2010… and there it is. The forces driving inequality in America remain, unfortunately, alive and well. This post originally appeared at Jared Bernstein’s On The Economy blog.

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Andrew Winston: Water’s Economics as Muddy as Ever

November 30, 2011

(Note: This blog is co-authored with Andy Wales, Global Head of Sustainable Development for SABMiller plc , one of the world’s largest brewers) It’s hard to put into words how dry and hot Texas was this past summer. “Off the charts” is both figuratively and literally accurate: the data for the last 100 years shows a tight regression of temperature and water availability in Texas… except for the 2011 drought, which is far off the line (three degrees hotter with an inch less rainfall than any previous year). The economic cost of the drought has been incredible; Texas lost $5.2 billion in agricultural production alone. With agriculture making up 9 percent of the state’s economy, and water shortages already threatening growth in the state’s energy industry , it’s not a reach to suggest that the future of the Texas economy will be tied closely to water availability. And it’s not a short-term problem, either. As Columbia University’s Richard Seager told the New York Times this summer, “You can’t really call it a drought because that implies a temporary change… You don’t say, ‘The Sahara is in drought.’ It’s a desert. If the models are right, then the Southwest will face a permanent drying out.” The trend is clear globally as well. Due to rising population, coupled with increasing demands by the agriculture and energy industries (often referred to as the water-food-energy nexus), global demand for clean water will outstrip supply by an average of 40 percent by 2030 . While this reality poses grave risks to thousands of communities, it is also the driver of a daunting, and often confusing, economic dilemma which businesses must prepare for. It’s time for companies operating in the many dry regions around the world to equip themselves with the tools and mindset they need to navigate this new normal. While access to water has been recognized as a basic human right, it is also increasingly clear to see that it is a commodity — a resource in high demand that should be valued according to its supply. But for such a transparent substance, water’s economics are anything but clear. Water is one of the world’s most glaring commercial anomalies, with a price reflecting nothing more than the costs to extract and distribute it. The value is exempt from the ebb and flow of the market. Even as demand vastly outpaces supply, the market price is as static as a boulder in stream. With such imprecision in the marketplace, companies must take it upon themselves to identify long term risks, quantifying the true value of water in order to steer clear of long-term hazards. Much of the leading work in understanding water risk has come from Coca-Cola. The beverage giant is now working with the World Resources Institute’s Aqueduct Initiative and sharing its extensive global database of previously proprietary data on water availability and risk. By identifying these risks, Coca-Cola is providing a strategic resource for broader communities facing water shortages. Many companies are now calculating their ” water footprint ,” which adds up the water they use throughout the value chain. The first corporate water footprint was jointly published by SABMiller and WWF in 2009, and since then Coca-Cola, Nestle, and UPM-Kymmene, and others have published footprints for key product lines. However, while the problem affects people globally, water is inherently local, so a global corporate footprint is only so useful. What the calculation does do, however, is help companies highlight those specific, local dangers where a low water supply could disrupt both business operations and the surrounding community. But managing the risk, and preparing for the 40 percent global supply gap, will require a tough balance of local and large-scale, collective action in cities and watersheds around the world. Andy Wales’ company, SABMiller, recently invited businesses, NGOs and other organizations to join a global water initiative, the Water Futures Partnership , in conjunction with the World Wildlife Fund (WWF) and the German development agency (GIZ). This article is part of an ongoing invitation to companies and NGOs worldwide to join the partnership. From SABMiller’s experience — and the work of others across many business sectors — we have learned that once a company understands water’s real economic value, both innovation and efficiency weave their way into long term water plans. MillerCoors, for example, has partnered with The Nature Conservancy to help farmers develop a tool to save potentially more than 400,000 gallons of water in every crop rotation – a saving of nearly 20 percent. This kind of deep supply chain work fits the model of “shared value” creation that strategy guru Michael Porter laid out in HBR earlier this year. While some voices in Texas have called for more action from the government , the real opportunity for leadership will be in the private sector. The leading water-aware companies may be better attuned to slowly emerging water disasters and best equipped to help reduce the gap between supply and demand. They will avoid business disruptions and build more resilient enterprises. They will also, by recognizing the true value of water, help protect everyone’s access to clean water. (This post first appeared at Harvard Business Online .)

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Steve Blank: You’ll Be Dead Soon — Carpe Diem

November 30, 2011

Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. Because almost everything – all external expectations, all pride, all fear of embarrassment or failure – these things just fall away in the face of death, leaving only what is truly important. Steve Jobs Watching an entrepreneur fail is sad, but watching but watching them fail from a lack of nerve is tragic. Excitement At the beginning of this year Bob, one of my ex-students, was in entrepreneurial heaven. He had an idea for a new class of enterprise software insight-as-a-service based on big data web analytics as a Cloud/SaaS (Software As a Service) application. Bob had taken to heart the business model canvas and Customer Development lessons. After graduating he put together a prototype and had quickly marched through Customer Discovery , iterating his product with the help of CIOs and Fortune 1000 IT departments. I had made one of the introductions to a Fortune 100 CIO’s so I got to hear his progress from both him and the CIO. Takeoff After 90 days, things seemed to be moving at startup speed. Bob had a backlog of users wanting to try his application, and the corporate IT people who were trying his early prototype said, “It’s crude, we hate the user interface, it’s missing lots of features – but we’ll kill you if you try to take it away from us.” I pointed a VC who followed the space to the CIO who was testing the prototype. The VC told me the CIO wouldn’t get off the phone. He kept telling him he couldn’t remember when he had seen an enterprise software product with so much promise. The VC checked with other IT users and heard the same reaction. It was a “gotta use it, don’t take it away, we’ll have to buy it” product. After a demo and lunch, the VC (who normally did later stage deals) wrote my ex student a check for a seed round. Life couldn’t be better. I followed Bob progress in bits and pieces from updates from the CIO, the VC and his emails and blogs. He seemed to be on the fast track to startup success. But pretty soon a few worrying warning signs appeared. The first thing that I noticed was that Bob couldn’t seem to find a co-founder. I wasn’t close enough to know if he wasn’t really looking for one, but given the early success he was having, it seemed a bit odd. But the next thing really got me concerned. Bob started hiring second rate developers. At best they were B- players. Stall A month went by, and the product stopped getting better. The U/I still sucked, and new features had stopped appearing. The next month, the same thing. I got a call from my CIO friend asking, “what was going on?” He said, “It was a great prototype, we would have loved to deploy it company-wide, and I hate to let it go, but it looks like Bob company just lost interest in developing it. I’m going to dump it and look for a substitute.” So I called Bob and suggested we grab a coffee. I asked him how things were going and got the update on how the earlyvangelists were using the product. As I had heard, they were ecstatic. But Bob said he was worried he hadn’t found the right customer segment yet. “I’m not sure I can get all of these guys to pay me big bucks,” he said. “That’s why I stopped coding, and I’m spending all my time out in the field still talking to more customers.” “What does your VC’s say you ought to be doing?” I asked. “Oh, he hasn’t had much time for me, his firm almost never does seed deals. It turns out I was an exception.” Oh, oh. The conversation was starting to make the hair on the back of my neck stand up. Bob had gotten to a place most founders never do – his product was a “gotta have it for people with big budgets.” He should have been back rapidly coding, iterating and finding out what feature set would get him to paying customers. Instead he had produced barely 3 weeks of progress in the last 5 months. His prototype was rapidly wearing out its welcome. A Lack of Nerve When I pressed Bob on this he admitted, “No I guess my engineers aren’t very good. But I hired guys who were cheap because I wasn’t sure if my hypotheses were right. Didn’t you tell us to test our hypotheses first?” Now it was my time to be surprised. “Bob, you’ve validated your hypotheses better than any startup I’ve ever seen. You found that out in the first month. You got customers begging you to finish the product so they could buy it. You should have been hiring world-class talent and building something these CIO’s will pay for. It’s not too late. It’s time to grab them by the throat and go for it.” I wasn’t ready for the answer, “Steve, I’ve been reading all about premature scaling and making sure everything is right before I go for it. I want to be sure I get all of this right. I’m afraid I’ll run out of money.” I thought I’d make one more run at it. “Bob,” I said, “few entrepreneurs get the first time response you have from an early product. At your rate you’re going to burn through your cash trying to get it perfect. It’s a startup. You’ll never have perfect information. You’re sitting on a gold mine. Grab the opportunity!” I got a blank stare. We made some more small talk and shook hands as he left. Bob was in the wrong business, not the wrong market. He wanted certainty, comfort and security. I stared at my coffee for a long time. Carpe Diem – make your lives extraordinary. Lessons Learned Yes, premature scaling is a cause of startup death Yes, you need to get out of the building and test your hypotheses But, when an opportunity smacks you in the head for gosh sake grab it with both hands and don’t let go If you can’t, get out of the startup game Steve Blank’s blog : www.steveblank.com

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Callout and Resource Management Expert ARCOS Promotes Duff to CEO

November 30, 2011

COLUMBUS, OH–(Marketwire – Nov 30, 2011) – Bruce Duff is the new chief executive officer of ARCOS , Inc., a developer of internet-based automated callout and resource management software for the utility industry. Duff succeeds ARCOS Founder Mitch McLeod who held the CEO role since creating the software company in 2005. For the last three years, Duff has been vice president of sales at ARCOS.

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Arizona Energy Consortium Announces Vice Chair

November 30, 2011

Christopher Davey, President of EnviroMission, Is Known for His Strong Knowledge of the Energy Industry and Financial Acumen

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Amid Budget Woes, State Funding For Tobacco Prevention At Lowest Level Since 1999

November 30, 2011

RICHMOND, Va. — States have cut funding for tobacco prevention programs 12 percent this year, to the lowest level since 1999, according to a new report that a coalition of public health groups released Wednesday. States have scaled back spending on tobacco programs as they grapple with budget deficits that have forced layoffs, furloughs and cuts for basic services. They will collect $25.6 billion in tobacco taxes and legal settlements from the tobacco industry this fiscal year. But they will spend just 1.8 percent of that, or $456.7 million, on programs to prevent or stop tobacco use, according to the report released by the Campaign for Tobacco-Free Kids, the American Cancer Society, and several other groups. That’s about 12 percent of the $3.7 billion the federal Centers for Disease Control and Prevention recommends, the report says. “There are no easy cuts anymore. There’s the old expression, tried and true, it’s not fat anymore, we’re talking about bone,” said Debra Miller, director of health policy for the Council of State Governments. “All revenue is looked at as revenue for the highest priority programs. … They aren’t ignoring the whole idea of tobacco cessation and the public health issues, the budgets are just such a problem right now. Thirty-three states and the District of Columbia are spending less than a quarter of the amount recommended by the CDC. Only one state, Alaska, is meeting or exceeding its CDC recommendation for the year, spending $10.8 million this year. Connecticut, Nevada, New Hampshire and Ohio did not allocate any funding for tobacco prevention programs this fiscal year. Neither did the District of Columbia. “At a time when they’re getting as much revenue as ever … they’re spending less than ever,” said Danny McGoldrick, vice president of research at the Campaign for Tobacco-Free Kids. “It’s really a penny-wise, pound-foolish decision because we’re going to pay for it (in the long-term).” States on average have never spent as much the CDC would like, but the total has declined dramatically in recent years, McGoldrick said. States have cut funding 36 percent in the past four years, the report says. In contrast, tobacco companies spent $10.5 billion to market their products in 2008, the most recent year tracked by the Federal Trade Commission. About 46 million Americans smoke, while more than 3 percent of American adults use smokeless tobacco, according to the CDC. Smoking-related health care costs $96.7 billion annually nationwide, the report says, and tobacco-related diseases are responsible for about 443,000 deaths a year in the U.S. Tobacco companies agreed in 1998 to settle lawsuits several states brought over smoking-related health care costs by paying them about $206 billion over more than two decades. States first received full payments under the settlement in 1999. The largest U.S. tobacco company, Altria Group Inc. – based in Richmond, Va., and maker of Skoal smokeless tobacco and top-selling Marlboro cigarettes – pays a majority of that. States should use more of the settlement money for youth smoking prevention and health-related initiatives, said Altria spokesman David Sutton. “The money’s there and that’s one of the primary reason it was put in place was for these very type of programs,” Sutton said. Many states also have raised tobacco taxes in order to increase revenue and supplement funds provided by the tobacco industry. ___

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Illinois House Blocks CME, Sears Tax Break Bill

November 30, 2011

SPRINGFIELD, Ill. — What a state takes away, it also can give back. Less than a year after raising personal and corporate income taxes, Illinois officials are pushing a $250 million package of tax breaks for several prominent businesses threatening to leave the state, including Sears and the Chicago Mercantile Exchange. To make the measure more palatable, individual taxpayers also would get a dollop of relief. The measure suffered a setback Tuesday when the House rejected it, but legislative leaders said they were determined to reach a deal in the coming days or weeks. The idea of giving tax breaks to companies is a hard sell in the state Legislature when many families are struggling and the Occupy Wall Street movement is reflecting anger at corporate interests. But advocates say if Illinois doesn’t take action, the businesses and their thousands of jobs will be lured away by states that are eager to take advantage. “If we don’t do it, another state will. That’s the reality of the world in which we live,” said Rep. John Bradley, a Marion Democrat who is chairman of the Illinois House Revenue Committee. The Senate approved the proposal Tuesday in a special session, but the House balked, sending lawmakers into further negotiations. “We are prepared to come back as soon as there is an agreement, as soon as we are able to work this out,” said Bradley, who has overseen negotiations. “Unfortunately, that day is not today. Whether it’s tomorrow or the next day or next week, we are prepared to come back as soon as this is settled.” Illinois’ tax dilemma is a collision between two different goals: Balancing the budget and avoiding the image of a state that’s bad for business. And in the process, officials want to avoid being exploited by companies making threats, perhaps empty ones, to flee Illinois. When 2011 began, the state faced a deficit projected to hit $15 billion. The Democratic governor and Democratic majorities in the Legislature decided an income tax increase had to be part of the response to that gap. They bumped the individual tax rate to 5 percent, up from 3 percent originally, and the corporate rate to 7 percent, from 4.8 percent. The increase, most of which is temporary and will expire in stages over the next 15 years, is supposed to generate about $6.8 billion in its first year. Other states pounced. New Jersey, Indiana, Wisconsin and more began promoting themselves to Illinois businesses. They succeeded in drawing some companies away, despite protestations from Illinois officials that the state still has a low overall tax burden. In the months since then, the same Democratic governor and Democratic legislators have passed measures to cut business costs for workers’ compensation and unemployment insurance costs. Now the package of tax breaks is on the table. Doug Whitley, president of the Illinois Chamber of Commerce, sees the proposal as acknowledgement that officials went too far with the January tax increase. “They overreached,” Whitley said. “They’re trying to bring the pendulum back to a more middle ground and they’re trying to send a strong message to employers that elected officials are not oblivious to their outcry.” The tax package would renew a $15 million income tax credit and a break on local property taxes for Sears Holdings Corp., which has its headquarters in the Chicago suburbs. The proposal also cuts income taxes about $85 million for CME Group Inc. and CBOE Holdings Inc., which run the Chicago Mercantile Exchange and the Chicago Board Options Exchange. The companies complain that they are still taxed on every transaction they handle, as if all business is still conducted by shouting men on trading floors, when most of their trades are now done electronically by buyers and sellers who have no connection to Illinois. The legislation being discussed would tax the exchanges on only 27.54 percent of their revenues. Some legislators question whether Sears, CME and CBOE would really uproot their operations and leave Illinois. They worry that giving the companies what they want will encourage similar demands from other businesses. “What’s going to stop the next big company from putting a gun to our head with the same type of threat?” said Rep. Mary Flowers, a Chicago Democrat. The package includes a raft of tax breaks that apply to Illinois businesses in general: renewing a research-and-development credit, changing the way losses can be applied to tax bills, exempting more assets from the estate tax and extending a variety of existing credits for five more years. Families would get a little help, too – roughly $110 million in tax relief. The standard personal exemption on income taxes, now $2,000, would be bumped to $2,050 and then increase with the rate of inflation in future years. The state version of the earned-income tax credit for poor families would rise to 10 percent of the federal credit, up from 5 percent. Gov. Pat Quinn’s office denies the package is a response to the earlier tax increase. His spokeswoman, Brooke Anderson, said that despite headlines about the effect of the increase, Illinois is still adding jobs and ranks highly in some assessments of the best places to do business. She said the tax package is about making the state’s system fairer for everyone. More than 30 states have raised taxes since the recession began, said Jon Shure, director of state fiscal strategy at the Center on Budget and Policy Priorities. Some of those have gone on to offer tax breaks to businesses, but Shure said he sees no evidence of a direct link. That is, states don’t seem to be cutting business taxes out of a sense that they were wrong to raise taxes in the first place. Shure said cutting state business taxes doesn’t help create jobs, but it can suck money away from education, infrastructure and other important state obligations. “If you cut taxes to address the political perception that it creates jobs, what you’ve really done is take money away from the things that really do create jobs,” Shure said. “In the long run it’s detrimental to economic recovery.” ___

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America Still A Huge Importer Of Energy

November 30, 2011

It’s true that the United States has recently been importing lower volumes of refined petroleum products and exporting higher volumes. It’s even true that shale oil and fracking have increased U.S. production of crude oil and gas in recent years, and that, combined with the Great Recession, means that net imports of all petroleum products have declined sinced 2005.

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Echopass Announces Appointment of Executive Vice President and Chief Quality Officer

November 30, 2011

Industry Respected Veteran of Accenture and The Hartford Financial Services Group to Join Echopass

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Retroficiency Closes $3.32M Investment Led by Point Judith Capital; Acquires Clean Energy Solutions Division of Nexamp

November 30, 2011

Acquisition and Related Hires Bring Key Talent and Software IP to Expand Capabilities for Energy Service Providers and Target the Utility Market With New Solutions

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Marketing Executive Tom Murphy Joins Bradford Networks

November 30, 2011

Chief Marketing Officer Brings Extensive Enterprise IT Experience to Network Security Leader

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Private Sector Job Growth Picked Up In November

November 30, 2011

The pace of job growth in the economy’s private sector accelerated in November, with U.S. employers adding 206,000 jobs, a report by a payrolls processor showed on Wednesday. The ADP National Employment Report surpassed economists’ expectations for a gain of 130,000 jobs, according to a Reuters survey. October’s private payrolls were revised up to an increase of 130,000 from the previously reported 110,000. The report is jointly developed with Macroeconomic Advisers LLC. “The ADP news is very good news. The private sector is adding jobs,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. U.S. stocks index futures added to gains immediately after the data, though investors were also focused on an announcement of coordinated actions from major central banks to provide liquidity to the global financial system. Treasuries prices extended losses after the data. The ADP figures come ahead of the government’s much more comprehensive labor market report on Friday, which includes both public and private sector employment. That report is expected to show a rise in overall nonfarm payrolls of 122,000 this month and a rise in private payrolls of 140,000. Economists often refer to the ADP report to fine-tune their expectations for the payrolls numbers, though it is not always accurate in predicting the outcome. (Reporting by Leah Schnurr, additional reporting by Ryan Vlastelica; Editing by Padraic Cassidy) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Goldman Raises Hundreds Of Millions To Invest In Start Up Hedge Funds: Report

November 30, 2011

Goldman Sachs (GS.N) has raised $600 million from clients such as pension funds, wealthy families and large institutions for a new fund that would provide start-up money to hedge-fund managers, the Wall Street Journal said. Goldman plans investments in eight to 10 new hedge funds, to get them up and running, the Journal said, citing people familiar with the matter. Each hedge fund can expect to receive between $75 million and $150 million from Goldman’s fund, which is expected to raise about $1 billion in total, the WSJ said. Goldman stands to gain fees on the total amount managed by the fund, and also from business the hedge funds will do with the bank’s trading unit, the report said. Goldman Sachs representatives declined to comment to the Journal. The bank could not immediately be reached by Reuters for comment outside regular U.S. business hours. (Reporting by Sakthi Prasad in Bangalore; Editing by Vinu Pilakkott) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Apple Loses Ruling To Tablet Rival

November 30, 2011

SYDNEY — Samsung Electronics Co. is closer to selling its new Galaxy tablet computer in Australia after a court on Wednesday overturned a ruling that sided with Apple’s allegations Samsung had copied its iPad and iPhone. The Federal Court’s decision is a victory for Samsung in its bitter, international patent war with Apple Inc., and might be just in time for the Suwon, South Korea-based company to capitalize on the Christmas shopping season in Australia. The ruling Wednesday said evidence fails to show that the Galaxy tablet infringes Apple’s touch screen patent and that Apple Inc. would be unlikely to win if the case went to a trial. It blasted the earlier decision in Apple’s favor as “clearly wrong.” In October, Federal Court Justice Annabelle Bennett granted Apple’s request for a temporary injunction against sales of Samsung’s Galaxy Tab 10.1 in Australia, preventing Samsung from selling the device in the country in its current form. Samsung quickly appealed that decision, and on Wednesday, the court agreed to lift the injunction and allow Galaxy sales to go ahead. Still, Samsung will have to wait a few more days before it can begin selling the Galaxy, after Apple indicated it would appeal to the nation’s High Court. Federal Court Justice Lindsay Foster agreed to keep the injunction in place until Friday while that issue is pending. The battle began in April, when Cupertino, California-based Apple sued Samsung in the United States, alleging the product design, user interface and packaging of Samsung’s Galaxy devices “slavishly copy” the iPhone and iPad. Samsung responded by filing its own lawsuits that accused Apple of patent infringement of its wireless telecommunications technology. The fight has spread to 10 countries, with courts in several nations – including Germany and the Netherlands – ruling in favor of Apple. It has highlighted the perception that Samsung – the global No. 1 in TVs and No. 2 in smartphones by sales – is more of an imitator of clever technologies than an innovator in its own right. Apple, by contrast, is generally viewed by consumers as highly original and inventive. In her October ruling, Justice Bennett said she was siding with Apple in part because she felt the company had a sufficient likelihood of winning at trial against Samsung. But on Wednesday, a full bench of the Federal Court argued that Bennett did not include in her written decision any assessment of the strengths of Apple’s case, as she was required to do before granting the injunction. “In our view, her decision was clearly wrong and should be set aside,” the panel wrote. The justices also said they believed Apple was unlikely to succeed at trial, writing that current evidence fails to show that selling the Galaxy in Australia infringes on Apple’s touch screen patent. In a statement, Samsung said it was pleased with the court’s decision and said it would soon announce when the Galaxy would be available in Australia. “We believe the ruling clearly affirms that Apple’s legal claims lack merit,” the company said. Apple representatives did not immediate respond to requests for comment.

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S&P Downgrades Last Triple-A Rated Bank

November 30, 2011

Dutch cooperative bank Rabobank lost its cherished triple-A rating from Standard & Poor’s as the global banking crisis finally caught up with the only bank still holding the top rating. The unlisted bank had long prided itself on its triple-A rating. It said in the 2007/08 financial crisis it was not tempted to snap up a bargain if it put the rating at risk, and maintains a conservative capital and liquidity stance. Rabo is a major Dutch lender and operates in 47 other countries, with many of its 10 million customers in agricultural areas, echoing its origins as a provider of loans to farmers. But S&P cut its long-term rating on the bank to AA from AAA as part of a sweeping overhaul of its ratings. Credit ratings influence how much a bank pays to borrow funds, and offers a guide to financial health. Some 15 big names were cut, including HSBC and UBS, but Rabo was the only bank in Europe to fall by two notches. “The one that jumps out is Rabobank’s downgrade by two notches, which is more significant given that it was triple-A,” said Carlo Mareels, credit analyst at RBC Capital Markets. Rabobank remains the highest rated privately owned bank in the world, according to S&P. Moody’s still has a Aaa rating on Rabobank, but with a negative outlook, and Fitch rates it AA+. “We are shedding a small tear for Rabobank, which is hanging onto its one remaining triple-A from Moody’s,” analysts at CreditSights said. S&P’s new ratings method puts more emphasis on the health of the banking industry in the countries where the banks operate and reduces the implicit support they get, as countries have said they are less likely to bail out banks in the future. “S&P did not say it literally, but they communicated that a bank can no longer have a triple-A rating,” Rabobank’s Chief Financial Officer Bert Bruggink told Dutch TV program RTL Z on Wednesday. “Nothing is risk free. Even the best countries prove not to be risk free. In that respect I think S&P’s conclusion is a right one,” Bruggink said. (Reporting by Steve Slater, Sarah White and Gilbert Kreijger. Editing by Jane Merriman) Copyright 2011 Thomson Reuters. Click for Restrictions .

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As Seen On TV, Inc. Closes $12.5 Million Equity Financing, Adds to Executive Team, Board of Directors

November 30, 2011

Capital Enables Company to Accelerate Commercialization and Product Development Efforts; Jeffrey L. Schwartz Appointed to Board; Dennis Healey, Experienced Financial Executive, Named CFO

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Doug Bell Appointed Chief Commercial Officer at Selectica

November 30, 2011

Brings Deep Experience Marketing Cloud Software

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eDiets.com(R) Enters Into $500,000 Private Placement and Appoints Berke Bakay to Board of Directors

November 30, 2011

FORT LAUDERDALE, FL–(Marketwire – Nov 30, 2011) – eDiets.com, Inc. ( NASDAQ : DIET ), a leading provider of convenient at-home diet, fitness and healthy lifestyle solutions, today announced that it has entered into a private placement with BBS Capital Fund, LP and has appointed Berke Bakay to its Board of Directors.

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LXI Consortium Elects Board of Directors and Officers for 2012

November 30, 2011

NIWOT, CO–(Marketwire – Nov 30, 2011) – The LXI Consortium has elected its Board of Directors and officers for the fiscal year 2012, which begins this month. The three Strategic Member companies appointed their directors for next year, and the sixteen Participating Member companies elected two directors for the Board.

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LXI Consortium Elects Board of Directors and Officers for 2012

November 30, 2011

NIWOT, CO–(Marketwire – Nov 30, 2011) – The LXI Consortium has elected its Board of Directors and officers for the fiscal year 2012, which begins this month. The three Strategic Member companies appointed their directors for next year, and the sixteen Participating Member companies elected two directors for the Board.

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Japan Jobless Rate Posts First Rise for Three Months

November 30, 2011

(MENAFN – Qatar News Agency) Japan’s unemployment rate climbed to 4.5 per cent in October, the first rise in three months, and lifting it off the previous month’s three-year low of 4.1 per cent, the …

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S. Korean President Signs Bills to Implement FTA with US

November 30, 2011

(MENAFN – Qatar News Agency) South Korean President Lee Myung-bak on Tuesday signed off on a package of bills needed to implement South Korea’s free trade agreement with the United States, moving a …

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Obama Says US Stands by Europe in Debt Crisis

November 30, 2011

(MENAFN – Qatar News Agency) US PresidentBarack Obama has said his country stands ready to do its part to help Europe solve its deepening debt crisis, following a summit with EU leaders at the White …

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US AMR Corp seeks bankruptcy protection

November 30, 2011

(MENAFN) AMR Corp., the parent company of American Airlines, said that due to growing debt, the US third largest carrier filed for bankruptcy, reported AP. The airline added that the company’s …

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Americans in November more confident about economy

November 30, 2011

(MENAFN – Saudi Press Agency) Americans’ confidence in the economy in November rose to its highest level since July, accord to a report by a private research group, AP reported. The Conference …

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Hungary’s central bank hikes base interest rate to 6.5%

November 30, 2011

(MENAFN – Saudi Press Agency) The Hungarian National Bank hiked its base interest rate by 50 basis points from 6 to 6.5 per cent Tuesday in response to a weakening currency and a worsening economic …

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ABM Resources NL (ASX:ABU) Chairman Address and Managing Director Address to Shareholders at 2011 Annual General Meeting

November 30, 2011

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp ABM Resources NL (ASX:ABU) is pleased to release the following Chairman’s address and Managing Director’s address to shareholders at 2011 …

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Asian Activities Report for December 1, 2011: Asahi Group (TYO:2502) to Acquire Australian Bottled Water Company Mountain H2O Pty Ltd

November 30, 2011

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp Asahi Group Holdings Ltd (TYO:2502) has conditionally agreed to acquire Mountain H2O Pty Ltd, a bottled water company in Australia that …

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Bandanna Energy Limited (ASX:BND) Updates on Abbot Point Terminal Expansion at South Galilee Coal Project

November 30, 2011

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp Bandanna Energy Limited (ASX:BND) wishes to advise that the South Galilee Coal Project Joint Venture, of which it is a 50% participant …

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Acer sees profits coming back in Q3

November 30, 2011

(MENAFN) Taiwan’s Acer Inc expected to return to profit in the third quarter, after clearing excess inventory problems which led to losses in the previous two quarters, Bloomberg reported. Jim …

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Eurozone inflation reaches 10.3% in October

November 30, 2011

(MENAFN) European Union’s statistics office (Eurostat) said that Euro zone’s inflation remained at 3 percent in November, Bloomberg reported. Eurostat also unveiled in a separate report the …

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