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Huffington Post…

LOWELL, Mass. — A new national poll released Sunday shows neither Wall Street nor Occupy Wall Street conjuring up strong favorable impressions among the American public. But protesters fared better than their wealthy corporate targets in the poll conducted for the University of Massachusetts at Lowell and the Boston Herald. Among 1,005 adults surveyed, 35 percent had a favorable impression of the protest movement that began in New York City and gained support worldwide. Only 16 percent could say the same for Wall Street and large corporations. Twenty-nine percent had a favorable impression of the tea party movement and 21 percent of government in Washington. Knowledge Networks conducted the survey, asking participants their impressions of the four groups. Wall Street and large corporations tied with Washington government in unpopularity, with 71 percent of those polled saying they had an unfavorable impression of big business and Washington. The tea party got a 50 percent unfavorable response and Occupy Wall Street 40 percent. The group surveyed was selected randomly and the poll conducted online from Oct. 28 through Nov. 1. It had a margin of error of 3.8 percentage points, meaning the results could go up or down by that amount. Last month, an Associated Press-GfK poll showed some 37 percent supported the Wall Street protesters. Fifty-eight percent said they were furious about America’s politics, up from 49 percent in January.

Originally posted here:
Americans Favor Protesters Over Wall Street, Washington

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The Depressing State of Housing

by on May 31, 2011

Five years ago, practically anyone could get a mortgage and no one believed real estate prices would ever stop rising. Now, hardly anyone can get a mortgage and no one knows when home prices will stop falling. It’s gotten so bad that for many young couples a key element of the American dream — buying a home of their own — has been put on hold in favor of renting. It just makes more financial sense right now. “Not too long ago rent used to be a four letter word,” said Mike Larsen, a real estate analyst with Weiss Research.

The Return Of ‘Made In The USA’

May 5, 2011

NEW YORK (Nick Zieminski) – The “Made in the USA” label may be poised for a comeback, a new study argues. The next few years will bring a wave of reinvestment by U.S. multinational manufacturers in their home base, as rising wages and a strong yuan currency make China a less attractive production center, the paper by the Boston Consulting Group (BCG) predicts. The study, published on Thursday, says U.S. reinvestment will accelerate as the United States becomes one of the cheapest locations for manufacturing in the developed world. If it came to fruition, such reinvestment could speed up a delicate economic recovery that has yet to gain much traction. There is evidence the trend has already started: * Caterpillar Inc has repatriated manufacturing of construction excavators, boosting investment in facilities in Texas, Arkansas and Illinois. * NCR Corp brought back production of automatic teller machines to Georgia, creating 870 jobs. * Toymaker Wham-O moved production of Frisbees and Hula-Hoops from China and Mexico to the United States. More such announcements are likely over the next year or two, BCG says, citing conversations with clients. “If you work the math out using today’s numbers. you’d still say it’s a good idea to go to China,” said Hal Sirkin, a senior BCG partner and lead author of the study. “(But) around 2015, you get to a point of indifference between producing in the U.S. and producing in China.” Wages in China are still a fraction of what U.S. workers earn. Direct pay and benefits for production workers in the United States are about $22 per hour, versus only about $2 in China, roughly 9 percent of the U.S. cost. But that difference is expected to narrow, with the Chinese worker earning about 17 percent as much as his or her U.S. counterpart four years from now. Factoring in higher U.S. productivity rates, the weaker U.S. dollar and other factors, such as shipping costs, that difference could narrow further. “MADE IN THE USA” The study predicts China will remain a major global player — just less of an exporter to the United States. China will still export to Europe, whose workers are less able to move for jobs than U.S. workers are. U.S. wage advantages could eventually reach the point that European automakers will export U.S.-made cars to Europe, the study said. The appeal of a shorter supply chain and fewer headaches from issues like intellectual property will also help encourage jobs and production to come back to the United States, BCG said. Policy could also nudge manufacturers to make the move. High unemployment is driving state incentives to attract factories, while unions are becoming more flexible. Still, the study’s thesis is based on assumptions that may not play out. One is that supply and demand of labor in China are increasingly moving out of balance. Another is that demand from a growing Chinese middle class will raise costs, as factories shift to producing for domestic consumption and workers demand more pay to pay for goods that were out of reach before. Also, the yuan’s rally could reverse. Since China first loosened restrictions on trading the yuan, its value has steadily strengthened from more than 8 yuan to the U.S. dollar in 2005 to fewer than 6.5 per dollar now. The expected U.S. reinvestment, meanwhile, will affect some industries more than others. Shoes or clothing are work-intensive and do not require highly skilled labor. But higher-value goods made in lower volumes, such as home appliances and construction equipment, are more likely to bear the “Made in the USA” label in coming years — especially if they are large and expensive to ship. General Electric Co’s example supports the study’s contentions. GE’s appliance unit is in the middle of a four-year, $600 million plan to build up its manufacturing presence in Louisville, Kentucky, adding some 830 new jobs. “The default has been to say: ‘Let’s put the next plant in China,’” Sirkin said. “We’re saying: ‘Sit back and think through your options.’” BCG is a management consulting firm that advises large manufacturers on issues ranging from strategy to operations. (Additional reporting by Scott Malone in Boston, editing by Gerald E. McCormick) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Official: Fed Prepared To Fight Inflation, Just Not Yet

May 5, 2011

LAS CRUCES, New Mexico (Pedro Nicolaci da Costa) – Inflation remains well under control, despite the spike in oil prices, but the Federal Reserve stands ready to raise interest rates if price pressures appear to be getting out of hand, top Fed officials said on Wednesday. John Williams, in his first speech as president of the San Francisco Fed, argued that the recent spike in commodity costs will likely be transitory. “The economy today faces many pitfalls, but I don’t believe that runaway inflation is one of them,” Williams said, adding that he would not prejudge a possible need for additional bond purchases in the future. In response to evidence of economic weakness last summer, the U.S. central bank in November announced it would buy some $600 billion in Treasury bonds in an effort to keep long-term borrowing costs low and support the recovery. In some of the first public speeches by Fed officials since a policy meeting April 26-27 at which the central bank said it would complete those purchases on schedule by the end of June, policy makers who spoke on Wednesday explained why they are in no rush to pull back ultra-loose monetary policy soon. Eric Rosengren, the dovish president of the Boston Fed, who is a voter this year on the policy-setting Federal Open Market Committee, struck much the same note as Williams, saying a return to 1970s-style inflation was not likely. He said tame wage growth and high unemployment are helping cushion some of the inflationary impact of higher food and energy costs, by keeping consumer inflation expectations under control. A rise in inflation expectations can be self-fulfilling if it leads workers to demand higher wages. But with high unemployment, workers have little power to demand higher wages because they can easily be replaced. JOB MARKET HEALING SLOWLY Another U.S. central bank official, Atlanta Fed President Dennis Lockhart, saw steady but modest job growth of about 200,000 jobs per month through the rest of this year after a slow spell. “It may take three years before the size of the nation’s work force reaches prerecessionary levels,” he said in a speech in Atlanta. The U.S. Labor Department will report figures for April nonfarm payrolls on Friday. Economists expect that 186,000 jobs were added in April, according to a Reuters poll. Rosengren said increases in overall U.S. inflation due to supply shocks since the mid-1980s have generally been temporary, a pattern that should play out again. “We should expect the impact on inflation to be transitory — and that total inflation will converge back to core inflation, which remains well below 2 percent,” he said. The U.S. consumer price index jumped 2.7 percent in the year to March. But so-called core CPI, which excludes more volatile food and energy costs and is a gauge of underlying price trends, climbed just 1.2 percent. The Fed’s informal target is 2 percent. Not all Fed officials are equally sanguine about inflation. Richard Fisher, the Dallas Fed’s hawkish president and also an FOMC voter this year, cited worries about rising prices. “The headline (inflation) numbers have gotten a little stout,” he told reporters after a speech. “We have to carefully monitor” how inflation expectations evolve. Still, he stopped well short of calling for near-term interest rate hikes. And Lockhart, of the Atlanta Fed, said no tightening of monetary policy is imminent. “It’s a bit premature now to anticipate it’s going to happen right away,” he said. The sequence and pace of steps that the Fed takes when it is time to reverse its easy money policy will depend on economic conditions at the time, Lockhart added. READY TO FIGHT INFLATION If inflation does begin to act up, officials said the Fed has both the tools and the will to attack price threats by bringing up interest rates quickly. “I am committed to responding decisively, and as forcefully as necessary,” the Boston Fed’s Rosengren said, “to ensure that long-term inflation expectations remain stable and that food and energy prices are not passing through to other prices.” In response to the worst recession in generations, the Fed slashed official borrowing costs to effectively zero and implemented an array of unorthodox lending facilities to heal frozen credit markets. Many of those measures have been shuttered as market conditions improved, but the controversial buying of assets to keep down long-term rates has continued. “Should it prove necessary to counter inflationary pressures, I will be among the first to advocate the unwinding of some of the stimulus we have provided,” Fisher said. Fisher cited a rebound in manufacturing and capital goods orders as not only a positive short-term indicator of economic momentum but also potentially a sign that the U.S. economy was finally moving away from an overreliance on consumer spending. “They are harbingers of needed rebalancing,” he said. (Additional reporting by Ros Krasny in Boston, Ann Saphir in Los Angeles, and Joe Rauch in Atlanta; additional writing by Mark Felsenthal; Editing by Leslie Adler) Copyright 2011 Thomson Reuters. Click for Restrictions .

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SHIFT Communications Taps Amy Lyons as President

April 4, 2011

Former Managing Director of Boston to Lead Company Nationwide

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Video: Williams Says Fed Needs to Provide More Timely Data

April 1, 2011

April 1 (Bloomberg) — Mark Williams, a former Federal Reserve bank examiner who is now an executive-in-residence at Boston University’s School of Management, discusses the Fed’s release of data on “discount window” lending during the financial crisis and prospects for transparency at the central bank. Williams speaks with Erik Schatzker and Lizzie O’Leary on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Video: Rampolla Says Coconut Water Is Alternative to Gatorade

March 25, 2011

March 24 (Bloomberg) — Mark Rampolla, chief executive officer of Zico Beverages LLC, talks about the company’s Zico Pure Premium Cocunut water, its relationship with Coca-Cola Co. and Zico spokesperson Boston Celtics forward Kevin Garnett. Rampolla speaks with Bloomberg’s Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Video: Fier Says Conifer `More Bullish Now Than Last Month’

March 23, 2011

March 23 (Bloomberg) — Michael Vogelzang, president and chief investment officer at Boston Advisors LLC, and Rick Fier, a trader at Conifer Securities LLC, talk about the impact of the U.S. housing market, the European sovereign debt crisis and corporate earnings on stocks. They talk with Matt Miller, Carol Massar and Julie Hyman on Bloomberg Television’s “Street Smart.” Sheila Dharmarajan also speaks. (Source: Bloomberg)

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Robert Lenzner: The Next Bubble May Be Bonds, Stocks, Commodities, China

February 16, 2011

The prime example of a bubble that really hurt was the parabolic ascent of the NASDAQ Composite Index from a rational level of 2200 in early 1999 to the ridiculously irrational 5000 15 months later. That was vertical mania by investors out of their mind. By the end of 2002 the value of these mostly technology issues had collapsed in panic selling that was more extreme than the buying. That was a bubble worth trillions popping. So, too, was the mania in housing, where all reasonable expectations were obliterated by leverage upon leverage in mortgage-backed securities and derivative contracts. This bubble was a systematic and dangerous departure from economic fundamentals into the chaos of evaporating home prices.. We are still suffering four years later from that extinguishment of household wealth — a massive damaging loss for ordinary Americans quite soon after the Nasdaq stock market bubble. Get the idea? Bubbles are serious when they are massive. The rule for spotting bubbles before they destroy you, says Harvard economist Ken Rogoff, is to “look for large rapid surges in leverage and asset prices, surges that can suddenly implode if confidence fades.” By this measure, then, the deterioration in Treasury bond prices, in tax-free muni bond prices and fright from the anxiety about some European sovereign bonds, like Greece and Portugal, are more signs of a rationally-proceeding bear market than a panicky bubble. At least so far. Orderly retreats are not bubbles by my standard. Same with gold, where speculation in futures contracts have been substantially reduced (lots of leverage in futures contracts) while bullion prices are trading in a fairly boring range, since confidence in the gold bubble has eased. If gold were a bubble, it wouldn’t matter what the dollar was doing. Investors would just be blown away with the urge to buy gold. Long-term gold investors believe this mania will be triggered by a sudden aversion to dollars, a plunge in their value — and a corresponding spike to unrealistic levels for gold. They will all be trying to get out at the same time. Good luck. Commodities are a better candidate for a bubble, as we had one in the summer of 2008 when oil popped at $147 and fell unmercifully, taking with it some food and metals prices. Since then oil has rebounded by 21 percent, food by 35 percent, copper by 108 percent, gold by 73 percent and silver a pretty bubbly 222 percent. It was, of course, George Soros who called gold the ” ultimate bubble ” when it was selling for about $1,000 an ounce. Since then, we have had plenty of volatility in commodity prices and a generally accepted opinion that the demand from emerging market nations would push prices ever higher. What could pop the bubble would be China’s failure to restrain inflation and its subsequent hard landing. The China bubble clan is watching to see if the People’s Bank of China fails to prevent the bubble, in the same manner as the Federal Reserve failed to restrain the housing bubble in the US by its too massive monetary easing and low interest rates. Ignoring asset bubbles “is a very painful way to show your disdain for macro concepts and a blind devotion to your central skill for stock picking,” says Jeremy Grantham, founder of GMO, the highly reputed Boston investment manager. Grantham “unabashedly” worships bubbles, reckoning it is absolutely mandatory to identify “hugely mispriced major sectors or asset classes among equities.” He suggests that short-term interest rates should remain low for 8 more months, until say August or September, in his Quarterly Letter of January 2011. The signal for an equity bubble would be the S&P 500 index rising to 1500 and rising short term interest rates. “I still don’t understand how the U.S. could have massive numbers of unused labor and industrial capacity yet still have peak profit margins. This has never happened before.” The real quandry, my friends is: When does an overpriced market become a bubble? After all the investors shifting out of Treasuries into common stocks finally rebalance their portfolios, only to get killed again?

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Unitiv Welcomes Boston-Based Sales and Engineering Team

February 16, 2011

ALPHARETTA, GA–(Marketwire – February 16, 2011) – Unitiv, a professional provider of enterprise IT solutions, today announced the addition of five new team members in their Boston-based sales office.

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Unitiv Welcomes Boston-Based Sales and Engineering Team

February 16, 2011

ALPHARETTA, GA–(Marketwire – February 16, 2011) – Unitiv, a professional provider of enterprise IT solutions, today announced the addition of five new team members in their Boston-based sales office.

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Hilco Targets Distressed Loans, REO Assets

February 11, 2011

Hilco Real Estate launched a new operating group to service lenders and investors on deeply distressed real estate loans and REO assets and hired Jerry T. Hudspeth (pictured) as its chief executive officer. The Hilco Real Estate Managed Asset Resolutions unit will initial be based in Chicago, Boston and Atlanta, and handle every property category, from raw land parcels to large commercial and residential developments. Hudspeth is a 25-year…

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The Big Problem For Young Workers: Getting A Full-Time Job

February 7, 2011

NEW YORK (By Kristina Cooke) – Shanee Greenidge of Boston has been searching for full-time work since she dropped out of high school in 2009 and took a string of part-time jobs to help her mother pay bills. “I’m looking for any type of full-time job. I don’t care what it is, I really need something,” said Greenidge, 20. Her situation is typical of millions of young Americans caught up in the aftermath of the country’s deepest economic crisis since the Great Depression. Greenidge has held a number of part-time jobs in the past two years, including work as a landscaper, but nothing to put her on a permanent career path. Even for part-time retail jobs, she said, she is competing with people with college degrees or years of experience. “There’s a lot of competition. It sometimes feels like I don’t stand a chance,” she said. The number of Americans working part-time because they cannot find a full-time job or because their hours were cut more than doubled from around 4 million in 2007 to more than 9 million in 2009. The number is edging lower, but as of January 2011, 8.4 million were still working part-time because of the weak economy, according to U.S. payrolls data issued on Friday. The U.S. unemployment rate has fallen to 9 percent, but if involuntary part-time workers and people who are not actively looking for work are counted, it stands at 16.1 percent, according to government data. Andrew Sum, an economics professor at Northeastern University in Boston, said past recessions suggest it will take several years to make a significant dent in the number of underemployed Americans. “It takes really strong three or four years of growth until you get a big push down in this number,” he said. “There are a large number of employers who are not sure about future demand. So they want to keep the cost down.” But the cost of being underemployed is “huge,” both for those desperate for more work hours — who tend to be young adults, less-educated and blue-collar workers — and the broader economy, Sum said. Most part-time employees work half the hours of full-time employees and often do not have benefits such as health insurance and pensions, Sum said. That puts a strain on already stretched public services. Underemployed workers tend to get less training at work and earn less in the future than full-time colleagues, he said. These lower earnings hold back their spending on goods and services, which drives the U.S. economy. Part-time workers on low incomes are also more likely to need social services such as food stamps, even as their lower wages and expenditures reduce their tax contributions, adding to U.S. fiscal strains. Neil Sullivan, executive director at the Boston Private Industry Council, said the difficulty young people have getting a firm foothold in the job market is especially worrying. “Disconnected youth are the ones that do the most harm to themselves and the community,” Sullivan said. “You can find them on the street corners all around urban America and there are few prospects for them apart from part-time retail.” NO EXPERIENCE, NO JOB Melissa Rodrigues, 25, who recently graduated with a bachelor degree in sports sciences, works part-time looking after children at an after-school club while she looks for a permanent job. Many peers who graduated with her, she said, are waitressing or going back to school. “I’ve applied to a lot of places, but they want experience. They want two years, for everything,” she said. Even those with more experience can find it tough to regain their footing in the labor market. Beth Tarbell, 46, was laid off from her job writing procedures and safety manuals for the restaurant industry in Austin, Texas, last spring and since then has been working part-time, off and on. “I’m getting a bit nervous now,” she said. “I know people who are sleeping on other people’s couches and I am hoping I don’t become one of them,” she said. “I’ve had a former boss tell me, ‘I wish we could afford to bring you on full-time but we can’t.’” Copyright 2010 Thomson Reuters. Click for Restrictions .

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Robert Lenzner: Why The Financial Crisis Could Not Have Been Prevented

January 29, 2011

The multi-trillion dollar meltdown of financial markets in 2007-09 could not have been prevented. It was absurd speculation on the part of the special Presidential Commission to even suggest this impossible nirvana. No way Jose! Let me tell you why. As my esteemed friend Jim Stone, chairman of Plymouth Rock Assurance, headquartered in Boston, puts it so succinctly; “We have wagered our place in history on our relative strength in finance. Bad bet.” The financial markets crisis could not have been prevented because Alan Greenspan, chairman of the Federal Reserve Bank, for 18 long years the power center in the nation for monetary policy, did not believe in reining in the animal spirits on Wall Street. He chose to ignore pleading from wise titans like Loews Corp. Laurence Tisch, and Wall Street great John Whitehead, who begged him to turn off the spigot of easy money and rock-bottom interest rates. Yeah, it could have been prevented if Greenspan had actually taken steps to dampen down “irrational exuberance,” his description of the craziness that began in the mid-1990s– and continued to accelerate until mid-2007. Regrettably, Greenspan’s utter and naive faith in free market ideology, makes him look a fool– not the God-like figure we all created. Yeah, it could have been prevented if the Clinton administration led by Robert Rubin and Larry Summers had not blithely agreed to deep-six the discipline of the Glass-Steagall Act- which in 1933 wisely separated the activities of the investment banks and the commercial banks– and had ensured relative stability on Wall Street for over half a century. Sure, the meltdown could have been prevented if these very same chaps in cahoots with the SEC and some conservative members of Congress had not ambushed an attempt to regulate the fastest growing financial market in the world– the explosion in the use of derivatives– from being regulated in any way, shape or form. The leverage unleashed by these new securities was never understood or considered to be a danger despite warnings from wise heads like Warren Buffett. Ignorance ruled the day. Yeah, the meltdown could have been prevented in 2004 if SEC Chairman Bill Donaldson and 2 of the other 4 Commissioners had not buckled under to Wall Street’s demand that the ceiling on the use of leverage– borrowed money– be raised to unimaginably dangerous levels like being able to borrow $30 or $40 for each $1.00 of capital the banks held. So was endangered the entire financial system with the verdict applied from Washington, DC. Yeah, the meltdown could have been prevented if only Tim Geithner, then President of the New York Federal Reserve Board, had only carried out the duties handed him to oversee, i.e. regulate the money center banks like Citigroup. He did nothing to protect the system before the crisis exploded and the financial system was threatened. I’ve been dying to ask Geithner if he ever reviewed Citigroup’s financial statements to recognize just how dangerous to its survival were the excessive off-balance sheet operations that were not at all in the “shadows” of the shadow banking system– but were right there in front of him. Need I remind you that Citigroup shares fell from $60 to 97 cents in 2009? Yeah, maybe the panic that ensued in September, 2008 might have been prevented if Hank Greenberg– while he was CEO and Chairman of AIG– had liquidated the $240 billion of risky credit default swap contracts on his balance sheet– or if his successors had comprehended the hari-kari they were committing by doubling the 100% leveraged book of insurance to over $500 billion of disaster waiting to happen. And I could go on. But, I’ll leave you with this uncomfortable and disturbing thought. The absurdity of this commission’s conclusion is expressed so bluntly by Douglas Holtz-Eakin, the Chicago economist, who revealed yesterday that the majority Democrats on the commission and the Republican minority were so alienated from each other they weren’t even communicating– well before the reports were even written. All this sordid and tragic mess that Wall Street made for itself with the passive lack of assertion by those responsible for cleaning up the mess. And how ironic it comes in the wake of hedge fund operator John Paulson making for himself some $5 billion in one year of operation– an unbelievable multiple of what the chairman of Goldman Sachs, Morgan Stanley, JP Morgan Chase earn– which is not chump change either. So, I turned to a financier I highly respect, Jim Stone, chairman of the CFTC in the Carter administration, now the CEO and Chairman of a private insurance company in Boston, Mass.– Plymouth Rock Assurance– a hardy competitor to Berkshire Hathaway’s Geico. Here’s what Stone sent me; It’s definitely food for thought. “I think the crash would have been easy to prevent: leverage limits of 5 to 1(or even less) would have done that. Cut leverage and we can all relax a bit” ” A society can be judged by whom it chooses to reward most highly. The closer the reward scale is to the contribution scale, the better for the nation’s future. A trader may be brilliant and honorable, as many are, but their work is not of the sort that will keep America a great, strong nation. That problem is not so easily correctable. We have wagered our place in history on our relative strength in finance. Bad bet.”

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JetBlue Expects Fare, Fee Hikes To Continue

January 27, 2011

NEW YORK — JetBlue is tacking on surcharges on flights to the Caribbean to cover its rising fuel bill, and said airlines should continue to pass these costs on through higher fares. The New York airline said in a conference call after the release of its fourth-quarter earnings that it’s glad to see that airlines are raising fares to cover the price of fuel, their largest expense. JetBlue expects to pay 17 percent more for fuel in the first three months of the year than it did in the fourth-quarter. Fuel jumped 16 percent in the October-to-December period from the year before. The airline raised ticket prices by about 4 percent in the fourth-quarter and recently added a $35 fuel surcharge for flights in or out of Puerto Rico and $45 for Caribbean destinations. JetBlue hopes to get 20 percent more in fees this year. Passengers on average paid $20 apiece in extra fees in the fourth-quarter, mostly for more spacious seats. For all of last year, travelers paid $85 million to sit in seats with “Even More Legroom.” The airline was tripped up by higher costs, mostly for fuel, in the fourth-quarter. That drove net income down 18 percent. A massive winter storm in December walloped its home base of New York and slammed operations in Boston, where it is the biggest domestic airline by passengers. , JetBlue estimated that the storm cost $30 million in lost revenue. The airline canceled around 375 flights on Wednesday and Thursday after another big storm rolled into the Northeast. The New York airline earned $9 million, or 3 cents per share, in the October-to-December period. That compares with a year-ago profit of $11 million, or 4 cents per share. Revenue rose 13 percent to $940 million. Costs rose 15 percent. The results fell short of Wall Street’s expectations. Analysts polled FactSet Research expected a profit of 6 cents per share on revenue of $948.3 million. Traffic improved by about 10 percent from a year ago. Most other major airlines posted a profit in the last three months of the year – which includes the important holiday travel period – as demand improved and they were able to raise ticket prices. Only American Airlines and United-Continental lost money in the last three months of the year. For all of 2010, the airline posted a profit of $97 million, or 31 cents per share, compared with $61 million, or 21 cents per share, in 2009. JetBlue plans to expand the number of available seats it offers, or capacity, by about seven to nine percent this year. That will mostly be through continued expansion in Boston and the Caribbean, where JetBlue has been aggressively adding service while bigger airlines have pulled back. JetBlue increased flights in Boston by 30 percent in 2010 over 2009, and expects to reach 100 daily flights there by this summer. It predicts that about one-quarter of its flights will be in and out of the Caribbean this year. The company has 600 daily flights. It says its efforts to lure more business travelers, especially in Boston, are paying off. The airline made changes last year to make its flights more attractive to corporate customers, who tend to pay more. That included adding an early boarding option for those who paid more for extra legroom seats, adding more convenient flight times and offering refundable fares. In midday trading JetBlue shares rose 2 cents to $6.50.

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Mathematica Leases 125,000 SF in DC

January 24, 2011

Mathematica Policy Research inked a 15-year, 125,429-square-foot lease for commercial office space at 1100 First St. NE, Tishman Speyer’s new LEED Gold certified building in the NoMa submarket of Washington, DC. The Princeton, NJ-based education policy firm has a local office at the Capital Gallery East Building, Boston Properties’ 10-story, 396,894-square-foot structure at 600 Maryland Ave. SW. Mathematica will join the U.S. Department of…

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Video: Zuckerman Says U.S. Home Values `Dead Weight’ on Lenders

January 14, 2011

Jan. 14 (Bloomberg) — Mortimer Zuckerman, chief executive officer of Boston Properties Inc., talks about the outlook for the U.S. housing market and economy. Zuckerman, speaking with Betty Liu on Bloomberg Television’s “In the Loop,” also discusses the U.S. fiscal deficit and implications for the credit rating. (Source: Bloomberg)

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Kevin Connor: The Foreclosure Fraud Scandal Just Got Harder to Ignore

January 7, 2011

The Massachusetts Supreme Court issued a major decision against the banks on the issue of foreclosure fraud earlier today. In US Trust vs. Ibanez , the court ruled that the banks in the case did not have standing to foreclose when they failed to assign the mortgage prior to foreclosure. The case carries significant implications, as many foreclosures may be declared invalid in Massachusetts, and the ruling could influence other state courts. The decision has already sent bank stocks down. Now that the Massachusetts Supreme Court has identified a fundamental problem with the mortgage securitization and foreclosure process, Wall Street bankers and their friends in Washington may also have a harder time working hand in glove to stamp out the foreclosure fraud firestorm. Last October, when foreclosure fraud started capturing national headlines, the Obama administration joined the banks’ PR offensive and helped spin illegal foreclosure as a minor clerical issue. At a critical point in the process, White House adviser David Axelrod appeared on Face the Nation to say that he regretted that there was “uncertainty” in the housing market, that the administration was working closely with financial institutions, and that they hoped the issue would be resolved quickly.  He also said that the administration opposed a nationwide moratorium due to the fact that some foreclosures were valid. At the time, Yves Smith said that the comments revealed “astonishing” priorities on the part of the Obama administration . We do not know whether Bank of America wrote Axelrod’s talking points, but we do know that he was partying with the bank’s top public relations strategist a few days later. Axelrod attended an epilepsy research fundraiser in Boston later that week that was co-chaired by Bank of America executive Anne Finucane . The other co-chair, along with Finucane’s husband? Axelrod’s wife, Susan , a co-founder of Citizens United for Research in Epilepsy. Other prominent attendees are listed here . In  one picture from the event , David is standing next to an amused Finucane, a huge, clownish smile on his face, trademark mustache and brow in full effect, with one arm extended as if he is about to shake the hand of the photographer. Obama’s point man on foreclosure fraud could not possibly look like a bigger corporate tool, arm in arm with Bank of America’s top public relations strategist at the height of the foreclosure fraud mess. The “foreclosure fraud as inconsequential clerical error” argument has always been spin meant to mislead the public, put forward by Wall Street with help from government cronies like David Axelrod. Zero Hedge calls these folks the “kleptocratic banker mafia syndicate,” and they come together at events like the Axelrod-Finucane fundraiser to further strengthen their social ties. But did they forget to invite the judge? When the foreclosure fraud scandal hits the front pages again, and threatens to hurt powerful financial institutions — rather than just the foreclosed, unemployed, and powerless — will the syndicate keep pushing the paperwork canard? Will Obama dispatch another Wall Street flack to the Sunday circuit, to say that the issue needs to be resolved quickly? And will talking points matter when court cases keep piling up? It will be interesting to see how this plays out.

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Ex-HP CEO Mark Hurd Fights To Keep Letter Confidential

December 28, 2010

WILMINGTON, Delaware (Reuters) – Hewlett-Packard Co’s former chief executive, Mark Hurd, asked to intervene in a Delaware shareholder lawsuit as he tries to keep private a letter tied to his abrupt departure. In court documents filed on Tuesday, Hurd asked to become a party to a lawsuit brought by a shareholder against Hewlett-Packard for the narrow purpose of keeping under wraps a letter sent to him. Both the shareholder and the company have said they do not believe the letter should be considered confidential. Hurd, who has since joined Oracle as president, resigned suddenly from Hewlett-Packard in August, stunning investors and sparking an investigation by regulators. The letter at the center of the Delaware Chancery Court fight was sent by attorney Gloria Allred on behalf of Jodie Fisher, a contractor for Hewlett Packard. Allred was attempting to mediate a dispute between Hurd and Fisher, who has said the letter in dispute contained “many inaccuracies,” according to court documents. Fisher sparked an investigation that eventually led to Hurd’s departure. The shareholder lawsuit was brought by Ernesto Espinoza, who sued the company to inspect its books. Attorneys for Hurd did not immediately return a call for comment. Officials with Oracle and HP declined comment. The case is Ernesto Espinoza v Hewlett Packard Co, Delaware Chancery Court, No. 6000. (Reporting by Tom Hals and Jim Finkle in Boston; Editing by Gary Hill) Copyright 2010 Thomson Reuters. Click for Restrictions .

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Bonnie Kavoussi: Unemployment Crisis Taking Enormous Toll On Low-Income Teens

December 23, 2010

Nyeka Alston-Orisakwe, 18, of Boston, dressed as a nurse at her family’s Halloween party, but without a job, she has not been able to stanch the financial bleeding at home. Her single, unemployed mother, Dominique Alston, 36, postponed paying the cell phone bill to pay for the Halloween party instead. Alston receives only $1,700 in unemployment benefits and child support per month to take care of four children–far below the federal poverty level. Alston’s unemployment benefits are scheduled to expire in January, though she plans to apply for a 17-week extension: her last chance before bumping against the 99-week maximum. Alston-Orisakwe’s experience typifies the job searches of millions of teenagers. It’s been the worst year for teenagers to find employment since the government started keeping track in 1948, according to the Center for Labor Market Studies at Northeastern University. In the down economy skilled adults are applying for the same entry-level positions that students typically fill. As a result, it’s next to impossible for many low-income teenagers to find work. Federal stimulus money for teen jobs expired at the end of June and the prospect of new federal funding for teen jobs is unlikely. That has left a group of idle low-income teens, often with unemployed parents, unable to develop professional skills and step in to support their families. “If it comes between my children being happy or the choice being late on the bill, I’ll make my children happy,” said Alston, who has been unemployed ever since her temporary administrative job at Children’s Hospital Boston ended in June. “I wish I could just snap my fingers, and she gets a job.” Nyeka Alston-Orisakwe has applied to more than 15 retailers around Boston, ranging from Dunkin’ Donuts to Old Navy and movie theaters, without a single interview for a long-term job. (Pictured: Nyeka Alston-Orisakwe, 18, of Boston, in her room.) The only store that called her back: an Aeropostale looking for temporary work during Black Friday weekend. A line of about ten people stood behind her as she was interviewed at the cash register. Aeropostale did not call her again. There were 12.5 million U.S. teens without a job on an average month this year, up from 10.4 million in 2005 and 8.7 million in 2000, according to Northeastern’s Center for Labor Market Studies. The average percentage of teenagers with jobs nationwide has been nearly cut in half since 1999 to 26 percent. There were 28 applications for every hiring in the retail sector–jobs that teens typically go after — between January and November of 2010, according to the Kronos Retail Labor Index. “Nationally, it’s devastating,” said Neil Sullivan, executive director of the Boston Private Industry Council. “A whole generation is going through their teenage years without any paid work experience.” Low-income minorities are at a particular disadvantage when searching for jobs because they live in neighborhoods with fewer jobs and have fewer connections and less access to transportation, according to Northeastern’s Andrew Sum. 
Nationwide, he said, only 13 percent of low-income African-American teenagers and 17 percent of low-income Hispanic teenagers are employed. By contrast, 35 to 37 percent of upper-middle-class white teenagers are employed. “Kids who really need help the most and could raise their family incomes the most are getting the work the least,” he said. Year-round jobs are more beneficial than summer jobs, Sum added, because the opportunities are more varied, and there is enough time for teenagers to interact meaningfully with mentors in the workplace. But Boston’s city government has devoted the vast majority of those resources to summer jobs. The city government’s Boston Youth Fund funded 3,200 youth jobs this past summer, while the Boston Youth Fund is funding only 500 part-time teen jobs during the school year. “To come up with money to pay young people all year-round–that is hugely expensive,” said Conny Doty, director of the Mayor’s Office of Jobs and Community Services, who described summer and year-round jobs as equally valuable. “It’s just not realistic.” During an interview at her home in Dorchester, Boston’s largest neighborhood, Alston-Orisakwe said she became more responsible and self-confident when she worked at Boston’s Franklin Park Zoo. She earned $8 per hour there for the past three summers through the city’s Boston Youth Fund and through the zoo’s Teen Ambassadors program during the previous school year. She used to cry when other teenagers made fun of her, and temporarily dropped out of high school during her freshman year because other students mocked her about her clothes and short hair. Then, after learning to answer zoo visitors’ questions about animals, she started to speak with poise and self-confidence. “Back then, you say one bad thing to me, I’d cry,” she said. “Before, I never liked talking to people… The zoo helped me talk to people. Now I’m not afraid to answer you if you had a question. If you had a question now, I’d be proud to answer.” Then her job ended in August. “I need a job,” she said. “It’s my senior year, and I need to save money for school and a car and to help my mom out.” But she’s had no luck so far. When she asked a local Halloween costume store whether she might get a call back after she had applied, a cashier said it depends on her availability. Then she knew she was not going to get a call. “They have to realize people are in school, so not everyone is available from 9 in the morning to 9 at night,” she said, sitting on a chair in her family’s living room, her arms crossed against her pink jacket. “They don’t want to even at least call you to try for an interview. They don’t even want to do that, which is stupid.” Now, Alston-Orisakwe spends much of her time at home, watching television, hanging out with friends, sleeping, or lying on her bed listening to music, gazing at posters of Marilyn Monroe in her room. Inspired by the TV show “Project Runway,” she dreams of someday moving to California and becoming a fashion stylist. If she is accepted and can pay for tuition, she hopes to study fashion and retail management next year at the New England Institute of Art. But glamor is out of reach for now, as she shops only occasionally now. Outside, she can hear neighbors arguing, cursing loudly, and sometimes having fist fights. Alston-Orisakwe said she is not going to bide her time waiting for employers to call her back. “I’m going to start calling up places and start harassing them,” she said. “That’s what you got to do now. I’m just going to keep applying until I get a job.” Her mother, Dominique Alston, said that employers are opting for older workers with more experience, but if teenagers never get hired then they will remain at a disadvantage. “If somebody doesn’t give them that chance, they never get it,” she said.

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Employed But Struggling: Report Finds 1 in 3 Working Families Near Poverty

December 21, 2010

Michelle Feliz, a single mother living in Boston, can’t afford day care for her one-year-old son. She can’t afford new clothes for her teenage daughter. Late last year, she applied for food stamps. Unlike many Americans increasingly seeking public assistance, Feliz, 35, is employed. Yet what she earns in her job as a secretary does not cover even her most basic needs, leaving her scrambling to keep food on her table. In the aftermath of the worst economic downturn since the Depression, much attention has been focused on the 15 million people who are officially out of work, yet even among those who have jobs, livelihoods and living standards have been substantially downgraded. Growing numbers of employed people live in near poverty, struggling to make ends meet. Almost a third of America’s working families are now considered low-income, earning less than twice the official poverty threshold, according to a report released Tuesday by the Working Poor Families Project . The recession, which has incited layoffs and wage cuts, reversed a period of improvement: Between 2007 and 2009, as the recession set in, the percentage of U.S. working families classified as low-income grew from 28 percent to more than 30 percent. Workers who once focused on career advancement now live paycheck to paycheck. The American middle class, in effect, is eroding. “They’re no longer working actively, with a chance to advance and gain more experience and skills,” said Brandon Roberts, manager of the Working Poor Families Project and a co-author of the report. “They’re just putting pieces together to stay afloat, to meet basic needs.” Last year, 45 million people, including 22 million children, lived in low-income households, according to the report. As breadwinners lost jobs or suffered pay cuts, the report notes, the number of low-income families grew to 10 million last year, an increase of almost a quarter-million from 2008. The problem is worse among minorities: 43 percent of America’s working families with a minority parent are low-income, the report finds, compared to 22 percent of white working families. Feliz, who is Latina, has a job. But she’s barely scraping by. “I had to take this job because it was the only thing I could find,” Feliz said. “I was making more money than I’m making now.” Once an officer manager at Oficina Hispana, an English language education program, Feliz was laid off in 2007 when her employer didn’t get a crucial grant. She collected unemployment insurance for half a year, she said. The week before the benefits expired, she got her current job as a secretary at the University of Massachusetts Boston. Her annual salary dropped from $42,000 to $37,000. And her dream of opening a shelter for female victims of domestic violence was deferred. “Career-wise, that set me back a lot,” she said. She now struggles just to put food on the table. She applied for food stamps in November of last year, she said, but was denied because her salary was just above the cutoff. So she began clipping coupons. When her son came down with a bad fever recently, she feared she would have to make a difficult choice: stay home and risk losing her job, or take him to prohibitively expensive day care. Fortunately, her parents, who also live in Boston, were able to look after him. “I’m afraid to stay home,” Feliz said. “If I take too many days off, I could lose my job.” Feliz, who has an associate’s degree from Roxbury Community College, is taking classes in human services and management at UMass Boston, and her employer agreed to help foot the bill. She hasn’t given up on her dream, but her focus right now is on preserving her income. “I’m doing at least three people’s jobs,” she said. “It’s hard.” Her son’s father, who pays child support, is similarly struggling to keep two part-time jobs, Feliz said. The crisis extends beyond the struggling breadwinners. Children in low-income families suffer from diminished educational opportunities and compromised health care, according to the new report. Nationwide, 35 percent of children in working families are living in low-income households, the report finds, and childhood poverty tends to persist into adulthood. “That has serious implications for children, not only today, but as they look to the future,” Roberts said. “The odds are being stacked against them.” Living in a low-income family can take a psychological as well as financial toll. Feliz has striven to raise her children’s spirits, pushing her daughter to do well in school. “I want her to be able to get a good job,” she said, “to have things I’m not able to give her.”

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More Property Sales Expected in More Markets In 2011 As Investors Work Up Appetite for Risk

December 16, 2010

Institutional investors have remained notoriously selective about the types of commercial real estate assets and markets they buy during the country’s choppy economic recovery in 2010, with little tolerance for properties with high vacancies — or any, outside a handful of core markets for that matter. Well-leased, steady income-producing commercial buildings for sale in Washington, D.C., New York, Boston, and San Francisco have fetched huge prices…

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Fallon/Cornerstone JV Sells Boston Multifamily for $194M

December 14, 2010

A joint venture between The Fallon Co. and Cornerstone Real Estate Advisers LLC sold a 465-unit apartment complex in Boston, MA, to institutional investors advised by JP Morgan Asset Management for $193.8 million, or nearly $416,800 per unit. In…

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Fallon/Cornerstone JV Sells Boston Multifamily for $194M

December 14, 2010

A joint venture between The Fallon Co. and Cornerstone Real Estate Advisers LLC sold a 465-unit apartment complex in Boston, MA, to institutional investors advised by JP Morgan Asset Management for $193.8 million, or nearly $416,800 per unit. In…

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Americans’ Wealth Grows, Lifting Hopes For Economy

December 10, 2010

WASHINGTON — Gradually but steadily, Americans are recovering their vast loss of wealth from the recession, thanks to larger stock portfolios. Household net worth grew 2.2 percent in the July-September quarter, fueled by a rally on Wall Street that catapulted stock prices. And stocks have risen more since the new quarter began Oct. 1, further boosting wealth. Those increases are lifting hopes for the economy, especially because Congress seems about to pass a package of tax cuts for most Americans. Both factors help: The stock gains make people feel wealthier. And the tax cuts put more spending money in their pockets. Consumers’ confidence and access to cash are vital because their spending fuels about 70 percent of economic activity. Last quarter, Americans boosted their spending at the fastest annualized pace in nearly four years. Net worth is the value of assets such as homes and stocks, minus debts like mortgages and credit cards. It totaled nearly $55 trillion last quarter, the Federal Reserve said Thursday. The increase from July through September occurred even though the value of people’s real estate holdings sank 3.7 percent. U.S. net worth has risen far from its bottom during the recession: $49 trillion in the first quarter of 2009. Yet it would still have to rise an additional 20 percent to regain its pre-recession peak of $66 trillion. That’s a reminder of the magnitude of wealth Americans lost to the recession. And despite the latest gains, economists think it will take at least until the middle of the decade for people to regain all their lost wealth. In part, that’s because they expect homes and other real estate values in many areas to decline further. “Home prices are going to get weaker over the next year as more foreclosed homes get dumped on the market,” said Scott Hoyt, senior director of consumer economics at Moody’s Analytics. Average household wealth rose to $425,177 last quarter. Adjusted for inflation, the average U.S. household’s net worth has risen nearly 8 percent from its early-2009 bottom. But it’s still about 23 percent below its peak of $553,685 three years ago. Net worth had suffered a setback in the April-June quarter, when it fell 2.6 percent. That was the first quarterly decline since early 2009. At the time, investors’ fears over the European debt crisis had diminished stock portfolios. Since then, stocks have surged. Last quarter, the value of households’ stock portfolios reached $7.8 trillion. That’s an increase of nearly 14 percent from the April-June quarter. In Naugatuck, Conn., David Savage, 51, a manager of a demolition equipment company and a married father of two teenagers, has seen his family’s net worth rise about 5 percent in the past year. The increase is due mostly to investment gains from mutual funds. “I am happy to see my mutual funds finally recovering from some horrible returns over the last couple of years,” Savage said. The value of Savage’s 401(k) account has risen, largely because of his employer’s contributions. Yet his family’s net worth is still well below where it stood before the financial crisis. Even so, Savage plans to put some of his money to work in the stock market. “I’m looking at it as buying at a discount,” he said. Driven by its strongest September since 1939, the stock market’s performance last quarter was by far its best quarterly showing in a year. The Standard & Poor’s 500, a broad gauge of the market’s performance, jumped 10.7 percent. The last quarter to produce a higher return was the July-September period of 2009 – midway through a 13-month bull rally – when the S&P 500 soared about 17 percent. It all translates into more money for the roughly half of U.S. households that own stocks or stock mutual funds. Stock values gained $1.4 trillion in value during the quarter as measured by the Dow Jones U.S. Total Stock Market Index. And they’ve recovered $1.2 trillion more since Sept. 30. About $15 trillion is invested in U.S. stocks, based on the Dow Jones U.S. Total Stock Market Index. The current quarter is further buoying hopes for the economy because stocks have so far risen 8 percent, with three weeks left in the year. As much as savings were shrunk by the market’s plunge in 2008 and early 2009, most investors are whole again in their retirement accounts – thanks to higher stock prices and their continued investment in the accounts. According to estimates by Jack VanDerhei of the Employee Benefit Research Institute, 86 percent of people with 401(k) retirement savings plans now have more money in their accounts than at the market peak in October 2007. That figure doesn’t tell the whole story, though. Recovery has been much slower for older workers, who lost more in the downturn. Nearly a third of workers with 20 or more years in retirement plans still have less money in their accounts than they did three years ago, according to the EBRI’s data. The S&P 500 remains 21 percent below its 2007 highs. Still, many analysts foresee higher stock prices as the economy improves further. “We expect household net worth to keep its momentum,” said Gregory Daco, senior economist at IHS Global Insight. “Financial gains should offset real estate losses resulting from lower housing prices and very weak sales.” The stagnant values of homes and other real estate holdings are limiting the improvement in Americans’ wealth, the Fed’s report showed. The value of those holdings fell 3.7 percent last quarter. That followed a scant 0.5 percent rise in the prior three months. The outlook for housing remains dim. Homes are most people’s biggest asset. But their values are still depressed in many markets. Most economists expect home prices nationally to decline 5 percent to 10 percent by the middle of next year. In some markets, declines will likely be steeper. Most economists think consumer spending, led by the wealthy, will rise further in the months ahead. But they still don’t think most shoppers, especially low- and middle- income Americans, will spend lavishly. Shrunken home equity, scant wage gains and high unemployment will keep spending in check. More Americans are building up savings and paring debt. That’s helping repair their personal finances. But it doesn’t help fuel the nation’s economic growth. Consumers saved 5.8 percent of their disposable income last quarter. That was down slightly from 6.2 percent in the April-June quarter. It’s still much higher than the 1-percent-plus rates just before the financial crisis. People are steadily trimming debt. The Fed said overall household debt dipped to $13.4 trillion in the July-September period. That’s a 3.5 percent drop from a peak in early 2008. Households, on average, are carrying around $43,321 in debt, ranging from mortgages and credit cards to auto loans and home equity lines. Debt now accounts for 122 percent of Americans’ disposable income – down from a peak of 135 percent in late 2007. ___ Carpenter reported from Chicago. AP Business Writer Mark Jewell in Boston contributed to this report.

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Industry Veteran John Ward to Join Hatteras and Cabo Yachts Leadership Team

December 9, 2010

LAKE FOREST, IL–(Marketwire – December 9, 2010) – Hatteras Yachts and CABO Yachts are pleased to announce that John Ward has accepted the position of senior vice president, global sales & marketing. Ward was most recently president of Boston Whaler.

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Tim Schiek to Lead Boston Whaler, Brunswick Commercial and Government Products

December 9, 2010

LAKE FOREST, IL–(Marketwire – December 9, 2010) – Brunswick Boat Group today announced that Tim Schiek has been named president of Boston Whaler and Brunswick Commercial Government Products (BCGP), effective immediately. Schiek, a 15-year Brunswick veteran, will report to Andy Graves, president – Brunswick Boat Group (BBG).

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CoStar’s People of Note (Nov. 28-Dec. 4)

December 3, 2010

This week’s People of Note includes the following markets: Boston, Chicago, Northern New Jersey, San Diego and San Francisco. NORTHERN NEW JERSEY Top Producer Joins Newmark Knight Frank Top landlord/agency and tenant broker Jamie Drummond joined…

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Video: Kramer Says Chance of `Real’ Deficit Cuts `Near Zero’: Video

December 2, 2010

Dec. 2 (Bloomberg) — Orin Kramer, general partner at Boston Provident Partners LP, talks about U.S. fiscal policy and the Federal Reserve’s latest round of quantitative easing. He speaks with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Video: Shaich Says Recession Didn’t Really Affect Panera Bread: Video

November 19, 2010

Nov. 18 (Bloomberg) — Ronald Shaich, chairman and founder of Panera Bread Co., talks about the performance of the company’s restaurants. Shaich talks with Carol Massar at the MIT Sloan CFO Summit in Boston on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Video: Shaich Says Recession Didn’t Really Affect Panera Bread: Video

November 19, 2010

Nov. 18 (Bloomberg) — Ronald Shaich, chairman and founder of Panera Bread Co., talks about the performance of the company’s restaurants. Shaich talks with Carol Massar at the MIT Sloan CFO Summit in Boston on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Video: Caterpillar’s Rapp Says China `Is the Next Frontier’

November 19, 2010

Nov. 18 (Bloomberg) — Edward Rapp, chief financial officer of Caterpillar Inc., talks about the company’s acquisition of Bucyrus International Inc., the firm’s efforts to move into the Chinese market, the business and political climate in Washington, and challenges facing Caterpillar. Rapp talks with Carol Massar at the MIT Sloan CFO Summit in Boston on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Video: Hoguet Expects `Orderly’ Resolution of Irish Debt Crisis

November 19, 2010

Nov. 18 (Bloomberg) — George Hoguet, global investment strategist at State Street Global Advisors, talks about the outlook for resolution of the Irish debt crisis and China’s economy. Hoguet speaks with Carol Massar at the MIT Sloan CFO Summit in Boston on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Tom Johansmeyer: Five Ways Corporate Bloggers Can Use Twitter Blackbird Pie

November 16, 2010

With the relatively new plug-in available for WordPress, Twitter Media’s Blackbird Pie feature is now available for both WordPress.com and WordPress.org users. The tool, which allows you to embed tweets in blog posts with a similar look and feel to how they appear on Twitter, has been around for several months, yet it didn’t work well on WordPress blogs. Now it’s out, and as with any social media tool, it doesn’t take long for the marketers to think about how to use it. Let’s take a look at a few ways Twitter’s Blackbird pie can be used in a social media marketing setting: 1. Cross-Promote Your Social Media Environments: The links in the embedded Tweets are clickable, so you can use Blackbird Pie with a corporate blog to drive traffic to a company or employee’s Twitter feed. This is a great way to turn one-time visits from search engines or referrals (for example) into ongoing members of your social media community. How Continuous #Marketing Widens Your Margins http://ht.ly/2W3Y7 less than a minute ago via HootSuite enter:marketing entermarketing 2. Capture and Amplify Customer Sentiment: Use positive feedback on Twitter as a promotional tool on your corporate blog. For example, you could create a Top 5 Customer Reactions of the Week post with embedded tweets: this is effectively a dynamic testimonial environment you can use to bolster your brand. Really cannot recommend @ FSHotelHouston enough for its excellent customer service and pure quality! #customerservicewin less than a minute ago via ÜberTwitter Ty Francis welshwonder 3. Be Brutally Honest about Your Brand: Post the bad news, too. Open an article on your corporate blog with a negative tweet from a customer or other stakeholder about your company. Then, turn it into a case study and highlight the resolution. You can convert an unhappy moment into a strong promotional opportunity. @ crifdogs #customerservicewin u guys just took a tricky situation over the phone & handled it masterfully. less than a minute ago via HootSuite Tom Johansmeyer tjohansmeyer 4. Support Your Business Partners and Complementary Companies: Embed tweets by important companies in your supply chain, joint venture partners and other companies with strategic relationships into your corporate blog. Support the companies that support yours. By using Blackbird Pie to embed their tweets into posts on your corporate blog, you can drive followers to them and add value to your existing relationships. RT @ firstnight : @ FirstNight 2011 button unveiled last night by @ scottlistfield , @ wbz anchors at @ Colonnade http://bit.ly/FN2011button less than a minute ago via HootSuite Colonnade Boston Colonnade 5. Reinforce Your Message: Has someone you follow on Twitter let fly 140 characters that help you make a point? Have you received an “@ reply” message that exemplifies a concept you’re trying to convey? You can use this stuff! Embed these tweets in a post on your corporate blog to get the same effect as a blockquote but in a much more powerful manner. Come back soon! RT @ loriannelacey : It will be sad to not wake up to this #view tomorrow @ Curtain_Bluff #Antigua http://plixi.com/p/56943783 less than a minute ago via TweetDeck Curtain Bluff Curtain_Bluff Tom Johansmeyer is the Sr Content Director at enter:marketing . His opinions are strictly his own.

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Joel Epstein: How the Unions Can Help LA Pay for the Wilshire Subway Extension

November 12, 2010

With the Democrats licking their wounds and the Republicans and Tea Partiers licking their chops, it is time to trot out some old ideas for funding the construction of public transportation in LA. There are no new ideas, just recycled old ones. Inspired by the mid century unions which built housing for their members, my latest epiphany concerns the feasibility of using union and public pension fund money to fund LA’s overdue public transportation projects. For starters I passed the idea by LAANE’s executive director, and the chief deputy to María Elena Durazo , Executive Secretary — Treasurer of the Los Angeles County Federation of Labor. Both seemed to think I’m a crackpot. Maybe so, but good ideas come from all over, and several other local civic leaders have encouraged me to keep at it. If you care about LA and mobility around the region you have probably heard something about the 30/10 Initiative and the 12 transit projects the Mayor, Metro , and others have been working to realize for a year or more through some combination of federal transportation grants and loans. Let’s face it, after the midterm election we’re in a new world. Even though the new Congress is sure to include public transportation enthusiasts from both sides of the aisle, advancing 30/10 has just gotten that much harder. In all likelihood, support for the plan will now come at best in piecemeal fashion, leaving many Angelenos gasping for the hoped for mobility solutions that 30/10 promised. What is more, the public remains divided over anything that is going to cost them more at tax time. It is true that County voters passed the half cent transportation sales tax known as Measure R in 2008, but who is to say they will support another tax or surcharge or whatever name we slap on it to accelerate the 30/10 projects. This reality presents no small obstacle to 30/10 and frankly always did. But what if the big unions in LA and elsewhere stepped up and said they are going to invest some of their pension money in Metro’s building project? Every investment needs a quid pro quo and with unemployment in LA still at near record highs, jobs are the quid — or is it quo? — in this deal. Sure, some will say Big Labor is just creating higher priced union jobs for their members with this idea. Yes, that’s one of the outcomes and perhaps the key reason the LA Labor Federation’s Durazo and national labor leaders like AFL-CIO President Richard Trumka should care about and look into it. But that is not the only thing the plan does. With more public transportation projects funded sooner, the plan benefits all of us who long for the day we can ride the Wilshire Subway from downtown to the VA, light rail from the South Bay to Figueroa or some form of fast public transportation from the San Fernando Valley to the Westside. Union and public pension fund investment in public transportation may be the economic shot in the arm LA needs, but President Obama and a divided Washington just can’t, or won’t, deliver. To understand the feasibility of all of this I spoke with an investment management advisor from the Union Labor Life Insurance Company (Ullico) . Founded in 1927, Ullico offers insurance, commercial lines of credit and other investment products and services. As of 2008, Ullico’s J for Jobs Fund, a product of the company’s Real Estate Investment Group had invested $2.3 billion in a variety of union labor real estate construction projects. According to REIG News these investments include LA Live-Phase II, the Red Building in West Hollywood and Horizon at Playa Vista; as well as hotels, casinos and office buildings in New York, Las Vegas and elsewhere. Though I am still struggling to find out what sort of returns investors actually realized on this pooled real estate investment fund, given the slump in the market I’d be surprised if the unions saw the promised and hoped for mid-teen percentage returns. Ullico told me they are just now starting to raise money for a new $750 million to $1 billion infrastructure fund and that in principle this fund might include public transportation infrastructure investment. Ullico says “might” because frankly other sorts of infrastructure investments like power plants may produce better investment returns than public transportation, which tends require a subsidy to operate once built. And this is to say nothing of investors’ well founded concern that large infrastructure projects tend to run over budget as in the case of NY/NJ’s ARC transit tunnel, New York’s Second Avenue Subway and Boston’s Big Dig. One seasoned Wall Street municipal finance expert told me that while he likes my idea, Wall Street or the unions or whoever is investing needs details and a set of real cost projections. In other words, the deal has to pencil out or there is none. Well no one ever said doing 30/10 or a union funded investment in public transportation infrastructure construction would be easy but isn’t it worth a try? On a recent conference call with the Mayor and the Deputy Mayor for Transportation both said my idea wouldn’t work. But when I persisted, asking whether they had actually approached Labor’s Durazo with the idea of using union pension money to help finance part of 30/10 the Mayor responded, “no.” While I can appreciate the unions wanting the largest possible return on investment, if you don’t have a job generating income to invest in your pension then the issue of higher returns is moot. In this idea I see an opportunity to put thousands of union workers back to work building stuff that LA needs, as opposed to another casino on the Las Vegas strip. Even if those Las Vegas construction jobs are union work, no LA union member needs to be investing in them. Industry practice says lower interest paying infrastructure projects like the Wilshire subway can be bundled together with other projects paying better returns, for a decent average return. Who knows? Maybe if done right, the projected returns of my Union Public Transportation Investment Fund (UPTIF) will appeal to non-union investors as well. Durazo and Trumka, I hope you are reading. UPTIF is an idea worth considering.

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Brad Feld: Selecting Co-Founders

November 12, 2010

Having been involved directly or indirectly in hundreds of early stage software and Internet companies, I believe the optimal number of founders for a software / Internet startup is between two and four. Starting a company by yourself is incredibly difficult. It can be done, but it’s the exception not the rule. It’s rare that a startup follows a clean and predictable trajectory – if you are alone as a founder, you’ll need to navigate this yourself. That’s a lonely and thankless task. At the minimum, having other co-founders along for the journey will give you peers to talk to when you want to beat your head against the wall with frustration. Observing over 70 companies that have gone through the various TechStars programs in Boulder, Boston, and Seattle has resulted in another insight for me – the best founding teams are “product leaning” with at least 50% of the founders focused on the product This doesn’t necessarily mean that they are software developers, but it does mean that they spend all of their time thinking about, working on, and obsessing about the product. So – if you have two founders, at least one should be product obsessed. If three founders, then at least two should be product obsessed. For four co-founders, you can split it two and two but I always encourage three product obsessed founders in this case (two devs and one product person.) Being “obsessed with the product” doesn’t mean doing this in a vacuum. The best software / Internet companies follow a customer facing and rapid iteration model such as the Lean Startup Methodology popularized by Eric Ries and Steve Blank. In this context, being product obsessed means “in the context of the customer”, which requires the product leaning people to interact frequently with prospective customers and users early and continually in the product development process. In our book, Do More Faster (http://www.domorefasterbook.com), TechStars CEO David Cohen and I have an entire theme on “People”. One of our favorite chapters is by Dharmesh Shah, the co-founder and CTO of Hubspot, titled ” Avoid Co-founder Conflict.” In this chapter, Dhramesh describes a series of conflicts that often arise between co-founders and gives suggestions for resolving them One of the most common questions I hear is “how do I find a co-founder?” Ironically, you probably all ready know your co-founder – it’s either a friend, someone you work with, or a colleague of a friend. Aggressively use your network as a starting point as the chance of finding a fit through someone you are already connected with is much greater than trying to recruit, learn, and team up with someone you don’t yet know. Selecting co-founders and building a lasting and effective professional relationship is challenging. If you recognize this going in and invest real time up front in the partnership it will pay off many times over.

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CoStar’s People of Note (Nov. 7-13)

November 12, 2010

This week’s People of Note includes the following markets: Boston, East Bay, Houston, Los Angeles, Salt Lake City, San Francisco and South Bay. HOUSTON Transwestern, Page Partners Form Retail Mgmt. Joint Venture Transwestern formed a strategic…

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Andrew Sum: Those Recent Payroll Job Figures and the Continued Blue Collar Depression in America

November 10, 2010

The recent release of the October 2010 job figures by the U.S. Bureau of Labor Statistics revealed that the national economy was generating net new jobs (151,000) for the first time in recent months, with the private sector responsible for all of the net job growth. A careful look at the breakout of the job growth figures by major industrial sector revealed a very high concentration of growth in just four sectors: temporary help services, retail trade, fast food and other eating/drinking places, and health care/social services. Employment in the nation’s goods producing industries (mining, construction, and manufacturing) as well as transportation services and utilities, the nation’s key employers of blue collar workers, was basically flat. Since the national recession officially ended in June 2009, the U.S. economy still has not added any net new wage and salary jobs in its goods producing industries or in transportation services. Total employment in the construction, manufacturing and transportation industries combined was still 540,000 below its level in June 2009. There has been no recovery in these industrial sectors to date. Given their above-average concentration in the above industries, the nation’s blue collar workers (construction, installation and maintenance, production, and transport operators) remain trapped in a labor market depression, 16 months after the end of the recession. Between the fourth quarter of 2007 and the fourth quarter of 2009, 17% of all blue collar workers’ jobs in the US were eliminated while the combined number of professional and management-related jobs were left unchanged. Over the June-September period of this year, we estimate that 17 to 18 percent of the nation’s production workers and transportation operatives/material movers were left either unemployed or underemployed — as were 28 percent of all construction and extraction workers. In comparison, only 4 to 6 percent of professionals and 6 to 7 percent of managers were facing one of these labor market problems. The dire circumstances in which the nation’s blue collar workers have found themselves in recent years can also be gleaned from a careful analysis of the findings of the recent BLS dislocated worker survey, which tracked permanent job losses over the 2007 to early 2010 period. Over this three year period, 15.4 million workers 20 and older were displaced from a job, equivalent to about 11% of all U.S. workers, the highest rate of job displacement in the approximate 30 year period for which such data are available. Over 5 million of these dislocated workers were employed in blue collar jobs at the time of their displacement, representing a near 17% dislocation rate. Nearly 16% of transportation operatives/ material movers, 17% of production workers, and 21% of construction workers were displaced. These job displacement rates compare to only 4-6% of professional workers and eight per cent of those holding managerial jobs. The re-employment rate of these dislocated blue collar workers was only 44% at the time of the February 2010 survey, and fewer than two-thirds of those regaining employment were able to find a new blue collar position. Thus, overall, under three of every ten displaced blue collar workers were reemployed in blue collar jobs in early 2010. Those who had to switch occupational groups to become reemployed experienced an average 25% decline in their weekly earnings. Their lower weekly earnings will reduce their families’ abilities to maintain consumption at prior levels, holding down aggregate spending, and thereby stalling the recovery. The ARRA stimulus efforts and the private recovery in jobs have so far had little impact on employment prospects of the nation’s blue collar workers. Other nations, including Denmark, Germany, Japan, and South Korea, implemented other workforce strategies, especially work sharing and training for part time workers who were kept on the firm’s payrolls, to maintain the employment of blue collar workers and enhance their technical skills. Each of them were far more successful than the U.S. in avoiding steep declines in employment and sharp rises in their unemployment rates, especially for men and blue collar and service workers. The U.S. can learn from them on more effective policies to preserve jobs and prepare our workers for future job demands. Prepared by: Andrew Sum and Mykhaylo Trubskyy, Center for Labor Market Studies at Northeastern University in Boston, Massachusetts.

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DataXu Expands Executive Leadership Team to Lead Next Phase of Growth

November 10, 2010

Moves Corporate Headquarters to Boston’s Innovation District to Accommodate Accelerated Expansion Plans

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DataXu Expands Executive Leadership Team to Lead Next Phase of Growth

November 10, 2010

Moves Corporate Headquarters to Boston’s Innovation District to Accommodate Accelerated Expansion Plans

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Wolf Greenfield Names MacDougall Business Development Manager

November 1, 2010

BOSTON, MA–(Marketwire – November 1, 2010) –  Wolf, Greenfield & Sacks, P.C., a Boston intellectual property law firm, has named Ryan MacDougall senior manager, business development.

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Video: Vogelzang Says U.S. GDP Data Shows Recovery `Anemic’: Video

October 29, 2010

Oct. 29 (Bloomberg) — Michael Vogelzang, chief investment officer at Boston Advisors LLC, and Brian Tehako, a trader at TNT Group, talk about the outlook for the U.S. economy and their investment strategies. They speak with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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CoStar’s People of Note (Oct. 24-30)

October 29, 2010

This week’s People of Note includes the following markets: Atlanta, Baltimore, Boston, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Houston, Jacksonville, National, North Carolina, San Francisco, Southwest Florida, Tampa and Virginia. Colliers…

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GlaxoSmithKline To Pay $475 Million To Settle Charges From Tainted Drugs

October 26, 2010

BOSTON — British pharmaceutical company GlaxoSmithKline PLC will pay $750 million to settle allegations that it knowingly manufactured and sold adulterated drugs, including the popular antidepressant Paxil, federal prosecutors in Massachusetts said Tuesday. U.S. Attorney Carmen Ortiz announced that the London-based company will pay $150 million in criminal fines and $600 million in civil penalties related to faulty manufacturing processes at its plant in Cidra, Puerto Rico. The company allowed several drugs to be adulterated between 2001 and 2005, including Paxil CR, a skin-infection ointment called Bactroban, and an anti-nausea drug called Kytril, and a diabetes drug called Avandamet, Ortiz said. GlaxoSmithKline said in a statement that it regrets operating the plant in a manner that violated good manufacturing practices. The company said the plant closed in 2009 due to declining demand for the medicines made there. Executives disclosed a $750 million charge to the company’s second-quarter 2010 earnings on July 15 in connection with the agreement. Ortiz said that no patients appeared to have been harmed by the quality problems at the plant, which included failing to ensure that Bactroban and Kytril were free of contamination from microorganisms and causing Paxil controlled release tablets to split, causing the potential distribution of tablets that did not have any therapeutic effect. The investigation began after Cheryl Eckard, the company’s global quality assurance manager, went to the Puerto Rico plant in August 2002 to lead a team of scientists and quality experts to correct manufacturing violations cited by the FDA. Eckard discovered numerous violations, including a contaminated water system and an air system that allowed for cross-contamination between different products being made there. She reported the problems to her superiors and the company’s compliance department, her lawyers said. Eckard eventually went to the Food and Drug Administration to report the problems and later filed a whistleblower lawsuit. Eckard, who worked at the company’s offices in North Carolina, said she was fired in 2003 after repeatedly reporting the problems to the company. “This is not something I ever wanted to do, but because of patient safety issues, it was necessary,” she told reporters after the settlement was announced Tuesday. As a whistleblower under the federal False Claims Act, Eckard will receive $96 million of the settlement paid by the company. The $600 million civil penalty will be paid to the federal government and the states to cover false claims submitted to the Medicaid program and other health care programs. The agreement between SB Pharmco Puerto Rico Inc. – an indirect subsidiary of GlaxoSmithKline – is the fourth-largest amount ever paid by a pharmaceutical company to the government to resolve civil and criminal allegations, said Tony West, assistant attorney general for the civil division at the U.S. Department of Justice. “At the end of the day, consumers have a right to rely on the representations companies make about the products they sell,” said West, who joined Ortiz at a news conference in Boston to announce the settlement.

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Top Fed Official On Government’s Foreclosure Prevention Efforts: ‘Three Years Of Failed Policies’

October 25, 2010

One of the Federal Reserve’s top economists denounced the Obama administration’s approach to stemming the growing foreclosure crisis, saying it’s part of “three years of failed policies” intended to help homeowners avoid losing their homes. “We can’t prevent millions of foreclosures using the tools people are currently using,” Paul S. Willen, a senior economist and policy adviser in the research department of the Federal Reserve Bank of Boston, said Monday during a mortgage and housing finance conference held at the Federal Deposit Insurance Corporation in Arlington, Va. Those tools — government programs that did little to change the fundamental incentives driving mortgage companies, lenders and investors — have been “the roadmap for three years of failed policies,” said Willen, an expert in household finances and home mortgages. “The lenders foreclosed on borrowers because it’s in their financial interest to do it. Modification is an expensive and ineffective medicine,” he added. To the experts in the audience, Willen’s statements did not come as a surprise. The Obama administration designed a $75 billion program to ease the pain of the housing crisis by promising to pay mortgage companies, mortgage owners and the homeowners themselves if they successfully modified the terms of a delinquent borrower’s mortgage. The Home Affordable Mortgage Program (HAMP) is the biggest part of that plan. Obama promised in February 2009 that the program would help three to four million homeowners. Rather than allowing millions of homeowners to lose their homes, the administration tried to stem the rising tide of foreclosures by getting mortgage companies to lower borrowers’ monthly payments. If borrowers have a more manageable payment obligation, the logic goes, they’re more likely to stay current, or become current, because the mortgage is no longer seen as unattainable. But it hasn’t worked. Many have called it a “failure.” Obama’s foreclosure plan has been widely panned by industry experts. If anything, it’s likely to prolong the pain by stretching out the housing crisis, they say. And for most homeowners, it’s made things worse. More homeowners have been kicked out of HAMP than have benefited from lower monthly payments. The vast majority of these homeowners now owe more on their home than when they signed up for Obama’s plan, because of the fees and surcharges that have been rolled into the mortgage. For those who successfully navigated HAMP and ended up with five years of promised lower monthly payments, they, too, now typically owe more on their mortgage than they did before. In fact, the typical homeowner in HAMP is “underwater,” meaning they owe more than their home is worth, and were pushed further underwater by HAMP. Homeowners who are underwater are far more likely to default on their mortgage than other homeowners, academic and government research shows. By stretching out the crisis, hoping all the while it will self correct, many have termed Obama’s plan a giant ” extend and pretend ” scheme, in which the administration extends the time line to achieve success. Willen said that calling on mortgage companies to voluntarily modify mortgages would not even make a “modest dent” in the foreclosure crisis. He did, though, offer a different solution: “To prevent foreclosures we must pay lenders or borrowers a lot of money or force lenders to modify loans even when they don’t want to,” the Fed researcher said. “The idea we can go forward and all we need to do is tweak things a little or change a rule here or there or even change a lot of rules and give some incentive payments — that is not enough. “If we want to prevent foreclosures, and that is a…political consideration, not really an economic consideration, then we know how to do it. In essence what I’m trained to say is we know how to prevent foreclosures. We just need to be prepared to spend the money and to decide who we think needs that money and who we think deserves help rather than trying to come up with some way we can do something for free [that] helps all of the right people and punishes all the wrong people.” If the administration chooses instead to pursue what many believe to be the only viable solution — widespread mortgage principal writedowns — then policymakers had better be ready to restructure the nation’s largest financial institutions, said Adam J. Levitin, a professor at Georgetown University Law Center who’s served as special counsel to the Congressional Oversight Panel, a watchdog created to keep tabs on the bailout. Making the nation’s biggest banks forgive mortgage principal would force them to recognize losses. The losses would be so enormous that the government would likely have to step in and take over the lenders. “Whether we have the courage as a country to bite that bullet, I don’t know,” Levitin added. ************************* Shahien Nasiripour is the business reporter for the Huffington Post. You can send him an e-mail ; bookmark his page ; subscribe to his RSS feed ; follow him on Twitter ; friend him on Facebook ; become a fan ; and/or get e-mail alerts when he reports the latest news. He can be reached at 646-274-2455.

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Video: Harvard Meets Wall Street on Charles River for Regatta: Video

October 22, 2010

Oct. 22 (Bloomberg) — Bloomberg’s Michele Steele reports on this weekend’s Head of the Charles Regatta, taking place on the Charles River in Boston near Harvard University’s campus. It bills itself as the world’s largest regatta, with 8,800 rowers competing in so-called head races against the clock. Bloomberg’s Michele Steele reports. (Source: Bloomberg)

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Video: Bredbury Says Manchester Utd. May Sell Rooney in 2011

October 18, 2010

Oct. 18 (Bloomberg) — Tim Bredbury, a former Liverpool soccer player, talks about Wayne Rooney’s relationship with his club Manchester United. He also discusses the outlook for Liverpool after the club was sold to John W. Henry and Tom Werner’s New England Sports Ventures LLC, the operator of the Boston Red Sox. He speaks from Hong Kong with Linzie Janis on Bloomberg Television’s “Global Connection.”

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Video: O’Rourke Sees Disconnect Between Fed, Markets on Easing: Video

October 15, 2010

Oct. 15 (Bloomberg) — Michael O’Rourke, chief market strategist at BTIG LLC, talks about Federal Reserve Chairman Ben S. Bernanke’s remarks today in Boston and the outlook for the U.S. economy. O’Rourke speaks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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