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Which Religion Has The Highest Paid Clergy Members?

by Ileana Llorens on January 13, 2012

Huffington Post…

Ever wonder which religious leaders make the most money? Among the leaders of the world’s major religions, rabbis tend to have higher annual salaries than their Catholic, Christian and Muslim counterparts, according to a new report by Slate . Both Reform and Conservative rabbis earn an estimated average annual salary of around $140,000, while the median salary for full-time pastors at Protestant churches was just $40,000, the Jewish Daily Forward reports . Catholic priests and Muslim imams make even less, with average salaries of about $25,000 and $30,000 per year, respectively. In the early 1990s, rabbinical schools across the nation experienced a surge in enrollment as a record number of young people flocked to the training centers, according to The New York Times . Of course, for many, the motive to become a rabbi isn’t necessarily the income. “Nobody does this for the money, but it’s nice to know that Reform rabbis make a good living,” Martha Bergadine Zamek of Evanston, Ill. told the Times shortly after receiving her letter of admission to a rabbinical school in 1991. But the numbers are not always entirely clear, with different surveys showing different results. For instance, a 2011 survey conducted by PayScale discovered that rabbis had an average annual salary of about $80,000 , according to eHow Money. The report points out that the number varies depending on years of experience and where they preach. And salaries for ministers and pastors among Christian denominations, on the other hand, can sometimes be as high as 400,000, according to the Christian Post . Compared to other religious leaders, Catholic priests were paid the least, with the Archdiocese of Cincinnati (Ohio) indicating they pay their priests a $26,884 base salary . Salaries also vary significantly among imams, and, as Slate observes , there isn’t a lot of data on pay rates for the Muslim leaders. However, an imam in Tennessee reported making between $31,000 and $34,000 per year on the online salary site Glassdoor. Similarly, a search of job listing website Simply Hired revealed an average salary of about $41,000 for the career .

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Which Religion Has The Highest Paid Clergy Members?

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Huffington Post…

The new government agency tasked with looking after the best financial interests of ordinary consumers finally has a leader. President Barack Obama defied Republican congressional opposition and used a recess appointment to install his nominee, former Ohio Attorney General Richard Cordray, as the top watchdog at the Consumer Financial Protection Bureau. The move caps six months of combat over the direction of the bureau, but is just the latest chapter in the fight over the shape of Wall Street Reform and Consumer Protection Act, the controversial financial regulation law that Obama signed in 2010 that created the new agency. With Cordray in place, the bureau, which already regulates consumer practices at banks with assets of more than $10 billion, can assume its full powers to make or enforce rules governing certain non-bank financial companies, including payday lenders, mortgage brokers and private student loan companies. Consumer advocates applauded Obama’s move. “For all the ire aimed at banks, there are many serious problems for consumers posed by non-bank financial companies,” said Lauren Saunders, managing director of the National Consumer Law Center. Cordray has said that expanding the bureau’s reach to non-bank financial institutions would be his first order of business . “I’ve got a big job to do,” Cordray told Reuters . A former five-time Jeopardy! champ, Cordray attracted notice as Ohio attorney general for aggressively pursuing some of the architects of the financial crisis, including credit rating agencies. He was also the first attorney general to sue a mortgage servicer over robo-signing. Republicans quickly criticized the recess appointment. “The #CFPB position had not been filled for one reason: the agency it heads is bad #4jobs and bad for the economy,” House Speaker John Boehner (R-Ohio) said on Twitter. But consumer advocates say the decision is good for the most financially vulnerable Americans. “We applaud the president for battling through the dysfunction of a Congress that finds itself in the grip of Wall Street,” said Bart Naylor, a consumer advocate at Public Citizen. Payday lenders, including some banks and credit unions, often make loans at 400 percent annual interest or more. The consumer agency cannot set interest rate caps, but it will have authority to go into payday shops and examine their records and practices, in the same way that regulators do now at banks. It’s not clear what changes the agency could impose, but at a minimum better disclosure to customers about hidden fees and the dangers of compounding interest is expected. The bureau will also oversee “larger participants” in other financial industries, including credit reporting agencies, which Saunders said make frequent and damaging mistakes. “They affect every aspect of people’s financial lives and yet have received little scrutiny,” she said. “It is a nightmare dealing with them.” The consumer agency is currently trying to decide how to define the larger participant mandate. Interestingly, the big banks, which have otherwise opposed the bureau at every step, have sided with consumer advocates who are seeking for as broad a definition –and as such, as many companies — as possible. “Comparable accountability across all providers of comparable financial products and services is a fundamental mission” of the new agency, the American Bankers Association said. Senate Republicans, led by Sen. Richard Shelby (R-Ala.), had held up the Cordray nomination for six months. They promised to continue to block Cordray, who is currently serving as the agency’s enforcement chief, until Dodd-Frank is amended to make the agency more accountable. “No bureaucrat will have more power over the daily economic lives of Americans than this director,” Shelby said from the floor of the Senate shortly before the a vote to move the nomination forward failed last month. Without more oversight, the agency’s actions will lead to bank failures, he said. The Republicans said they wanted more control over the agency’s purse strings and a board of commissioners rather than a single director to oversee the agency — moves that would weaken the bureau, consumer advocates said. The Republican position matched that of Washington’s most prolific lobbying force, the U.S. Chamber of Commerce, which pushed a House bill that would replace the director with a five-member commission. A total of 34 industry groups list the bill as a lobbying priority, according to a Center for Public Integrity analysis of federal records, representing 183 industry lobbyists. At least 86 once worked for the government. The Chamber spent nearly $30 million in lobbying on financial regulation and a host of other issues in the first three quarters of 2011. It tasked 21 lobbyists to work bills that would restructure the agency. In addition to the chamber, the most active opponents of the bureau’s current structure include the American Bankers Association, the Financial Services Roundtable, the Independent Community Bankers of America and the Consumer Bankers Association. Consumer Financial Protection Bureau spokeswoman Jennifer Howard did not respond to a request for comment about the Cordray appointment.

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Kodak Prepares To File For Bankruptcy

January 4, 2012

(Reuters) – Eastman Kodak is preparing a Chapter 11 bankruptcy protection filing in case it is unable to sell its digital patents to raise capital, The Wall Street Journal reported on Wednesday. The once-iconic photographic film pioneer is in talks with potential lenders to secure about $1 billion in debtor-in possession financing to sustain Kodak through bankruptcy proceedings, the Journal reported citing unidentified sources. The Chapter 11 filing could come as soon as this month or early February, the newspaper said. Kodak shares fell about 28 percent to 47 cents on the New York Stock Exchange following the online report, which dampened investors’ hopes that the company could arrange a quick sale of its patents or a financing lifeline to keep it afloat. A spokesman for Kodak declined to comment, saying its policy is not to comment on market rumors or speculation. Kodak warned in November that it might not survive 2012 if it was unable to secure $500 million in new debt or sell its patents. The company’s cash had been shrinking as sales of its consumer products have failed to keep up with its heavy cost base, which includes employees and offices around the globe. Kodak invented the digital camera in 1975 when one of its engineers developed a prototype that was as big as a toaster and captured black and white images. But it failed to capitalize on that innovation, and it was only when Kodak’s film business began to decline a decade ago that it tried to catch up with rivals by launching a mass-market line of digital cameras. The company has been beset by bankruptcy speculation since it drew down a credit line last September. It also hired restructuring firm FTI and confirmed that a law firm known for dealing with bankruptcy was doing work for it. Last week, Kodak announced the resignation of three directors, including two representatives of private equity firm KKR & Co and a professor from the University of California, leading some industry experts to speculate that a Chapter 11 filing was imminent. On Tuesday, Kodak said its stock may be removed from the New York Stock Exchange if the company cannot boost its share price over the next six months. Kodak, which had $862 million in cash at the end of September, down from $1.4 billion a year earlier, is scheduled to report fourth-quarter results on January 26. As part of its efforts to raise cash, Kodak has been looking since last July for a buyer for its 1,100 digital patents, with the help of investment bank Lazard Ltd. The Journal said Kodak is still trying to sell the patents, which could help it stave off a bankruptcy filing. If Kodak does seek Chapter 11 protection, it could try to sell its patents through a bankruptcy auction supervised by a court. (Reporting By Liana B. Baker; editing by Mark Porter and Carol Bishopric)

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Wicker Park’s Crust Pizza Closes Up Shop Amid Financial Struggles

January 4, 2012

Crust Pizza, a self-described organic, green, neighborhood eatery located in Chicago’s Wicker Park neighborhood, served up its last piece of cheese-covered deliciousness on New Year’s Eve. The restaurant’s general manager Todd Feinberg cited “the financial climate” coupled with “the extremely high rent, well above market value,” of their 2056 W. Division St. shop as the reasons behind the sudden closing, Eater Chicago reports. The restaurant, which opened in May 2007, featured an array of pizzas, ranging from classics like Margherita to unique offerings like a “Mexicali Blues” shrimp pizza, organic salads, seasonal antipastos and an expansive menu of beers, wines and cocktails. Their menu emphasized local and organic ingredients wherever possible. ” It’s been a good run. We will miss everyone. Thank you for all the love! ” Crust’s Facebook page read as of Sunday. The restaurant’s flammkuchen (or “flame cake”) pizza was listed fourth among Chicago magazine’s 2010 ranking of the 25 best pizzas in the city , lauded as “so creamy and clean you can’t help but turn up your nose at the greasy muddle that passes for most American pizza.” As NBC Chicago points out , the news follows on the heels of Charlie Trotter’s critically-acclaimed restaurant also preparing to close its doors in August . Feinberg and the restaurant’s owner and chef Michael Altenberg will now, according to Eater, focus their efforts on their French restaurant Bistro Campagne , located in the city’s Lincoln Square neighborhood. Photo by joebeone via Flickr .

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Evidence Links Fracking To Ohio Earthquakes

January 3, 2012

CLEVELAND — A northeast Ohio well used to dispose of wastewater from oil and gas drilling almost certainly caused a series of 11 minor quakes in the Youngstown area since last spring, a seismologist investigating the quakes said Monday. Research is continuing on the now-shuttered injection well at Youngstown and seismic activity, but it might take a year for the wastewater-related rumblings in the earth to dissipate, said John Armbruster of Columbia University’s Lamont-Doherty Earth Observatory in Palisades, N.Y. Brine wastewater dumped in wells comes from drilling operations, including the so-called fracking process to extract gas from underground shale that has been a source of concern among environmental groups and some property owners. Injection wells have also been suspected in quakes in Ashtabula in far northeast Ohio, and in Arkansas, Colorado, and Oklahoma, Armbruster said. Thousands of gallons of brine were injected daily into the Youngstown well that opened in 2010 until its owner, Northstar Disposal Services LLC, agreed Friday to stop injecting the waste into the earth as a precaution while authorities assessed any potential links to the quakes. After the latest and largest quake Saturday at 4.0 magnitude, state officials announced their beliefs that injecting wastewater near a fault line had created enough pressure to cause seismic activity. They said four inactive wells within a five-mile radius of the Youngstown well would remain closed. But they also stressed that injection wells are different from drilling wells that employ fracking. Armbruster said Monday he expects more quakes will occur despite the shutdown of the Youngstown well. “The earthquakes will trickle on as a kind of a cascading process once you’ve caused them to occur,” he said. “This one year of pumping is a pulse that has been pushed into the ground, and it’s going to be spreading out for at least a year.” The quakes began last March with the most recent on Christmas Eve and New Year’s Eve each occurring within 100 meters of the injection well. The Saturday quake in McDonald, outside of Youngstown, caused no serious injuries or property damage. Youngstown Democrat Rep. Robert Hagan on Monday renewed his call for a moratorium on fracking and well injection disposal to allow a review of safety issues. “If it’s safe, I want to do it,” he said in a telephone interview. “If it’s not, I don’t want to be part and parcel to destruction of the environment and the fake promise of jobs.” He said a moratorium “really is what we should be doing, mostly toward the injection wells, but we should be asking questions on drilling itself.” A spokesman for Gov. John Kasich, an outspoken supporter of the growing oil and natural gas industry in Ohio, said the shale industry shouldn’t be punished for a fracking byproduct. “That would be the equivalent of shutting down the auto industry because a scrap tire dump caught fire somewhere,” said Kasich spokesman Rob Nichols. He said 177 deep injection wells have operated without incident in Ohio for decades and the Youngstown well was closed within 24 hours of a study detailing how close a Christmas Eve quake was to the well. The industry-supported Ohio Oil and Gas Association said the rash of quakes was “a rare and isolated event that should not cast doubt about the effectiveness” of injection wells. Such wells “have been used safely and reliably as a disposal method for wastewater from oil and gas operations in the U.S. since the 1930s,” the association’s executive vice president, Thomas E. Stewart, said in a statement Monday. Environmentalists are critical of the hydraulic fracturing process, called fracking, which utilizes chemical-laced water and sand to blast deep into the ground and free the shale gas. Critics fear the process itself or the drilling liquid, which can contain carcinogens, could contaminate water supplies, either below ground, by spills, or in disposed wastewater. Permits allowing hydraulic fracturing in Ohio’s portion of the Marcellus and the deeper Utica Shale formations rose from one in 2006 to at least 32 in 2011.

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Richard (RJ) Eskow: For a Sane Economy in 2012, How About a Little Shame?

January 2, 2012

The other day I was asked what one single thing could do the most to save our economy. What one idea or tool might help us create a more just society? My answer was “shame.” Shame isn’t always a wasted or negative emotion. On the contrary, it can perform an important and socially useful function. Shame enforces our moral values even when legal and political institutions are too broken or corrupt to do so. Our society must learn to develop a “moral economics,” and morality is often enforced through shame. We live in a society where it’s no longer considered shameful to oppose spending $6 billion to save nearly 8 million lives, even though that’s less than $800 apiece. This kind of cynicism is so accepted, in fact, that even the more liberal political party doesn’t dare suggest it. We live in a society where it’s not shameful to let crooked bankers go unpunished while asking everyone else to pay the cost of their illegal enrichment. Nowadays even the lawbreakers aren’t ashamed of themselves! Incredible. Perhaps no single change to our culture could do more to improve our lives than the rediscovery of the shame we used to attach to vile, greedy, selfish, and corrupt behavior. Consider how far we’ve fallen: Not long ago a person would have been ashamed to appear in public if they had shattered the global economy by cheating millions of innocent people, accepted the outstretched hands of the same people they’d cheated by accepting an unconditional bailout, and then cheated them again. Not long ago a politician who accepted the corrupting dollars of known criminal bankers immediately paid a steep price. (See the Keating Five , for example.) Not long ago political figures and pundits were ashamed to openly advocate the deaths of millions of people just to provide tax advantages for the wealthy or ensure more favorable market conditions for predatory corporations. In 2012, it’s time for shame to make a comeback. Where would it be useful? Here are just four examples out of thousands to choose from: 1. We should be ashamed that we don’t give more to fight global AIDS. A new medical study showed that developed nations could save 7.9 million lives in the next eight years by increasing AIDS funding for developing countries by $6 billion. That comes out to about $760 for each human being whose life would be spared. As an added benefit, an estimated 2.5 million people would never be infected with AIDS at all. George W. Bush began the anti-AIDS program known as PEPFAR in 2003, and funding grew steadily every year until President Obama took office. It then flatlined in the first year and dropped in the second year, before increasing slightly in the third Obama budget: Image source: Kaiser Family Foundation An ethical society — not just ours, but of all developed nations — would find it unacceptable to deny these programs the funding they need. Six billion dollars sounds like a lot, but the top 25 U.S. hedge fund managers made $22 billion last year. Taxing them at the same rate they paid under Ronald Reagan would cover the entire amount and would save all those lives. But the Republican Party opposes anything like that, and President Obama hasn’t asked for more. 2. Leaders of serial corporate criminal banks should be ashamed of themselves. Jamie Dimon, CEO of JPMorgan Chase, makes it a habit to publicly express his resentment at the very mild and genteel criticisms that lawbreaking bankers must endure in our society. He does so with a combination of disingenousness and genuine self-deception that is a marvel to watch. In his latest outburst, Dimon complained about Occupy Wall Street by saying, “Acting like everyone who’s been successful is bad and because you’re rich, you’re bad, I don’t understand it. Sometimes there’s a bad apple, yet we denigrate the whole.” Maybe those “bad apples” would provoke a different reaction if executives like Dimon weren’t personally supervising such a large barrelful of ‘em. Shortly after Dimon expressed his outrage, his bank and a number of its employees went on trial in Italy for allegedly deceiving a municipality into deliberately and deceptively purchasing bad investments. And while this Business Week article carefully points out that these alleged crimes took place before Dimon became CEO in 2006, he was already president and COO at the time of the worst allegations As president and COO, Dimon also presided over an institution that paid hundreds of millions of dollars after it bribed municipal officials in Alabama and misled investors in a fund called Magnetar. Under Jamie Dimon’s leadership, JPMorgan Chase (or rather, its investors and insurers) paid a fine for breaking the law while promising not to do it again — and then promptly did, at least three more times. Similarly, GE Capital keeps breaking the law under CEO Jeffrey Immelt. In its latest settlement, a division of GE paid (or rather, its investors and insurers) paid $25 million after being charged with what the SEC described as “fraud for participating in a wide-ranging scheme involving the reinvestment of proceeds from the sale of municipal securities.” This is merely the latest in a GE crime spree that includes misleading investors, bribing Iraqi officials in the “oil for food” scandal, and what the SEC described as “fraud, deceit, or deliberate or reckless disregard of regulatory requirements [that] resulted in substantial loss, or significant risk of substantial loss, to other persons.” And yet Immelt, like Dimon, walks in polite society. He even leads President Obama’s recently renamed “Jobs Commission.” Nobody is saying “because you’re rich, you’re bad.” Nobody’s calling Warren Buffett bad, for example. They’re not even saying that about megamillionaire Jimmy Buffett — and after the 6,000th hearing of “Margaritaville,” that’s pretty damned generous if you ask me. But here’s why words like “bad” get attached to executives like Dimon and Immelt: because they or their subordinates keep breaking the law, and either they don’t care about it or they aren’t competent enough as managers to stop it. Their arrogance and pronounced lack of remorse suggests it’s the former rather than the latter. But either way, they’re in no position to lecture others, especially since the lawbreaking keeps fattening their personal bank accounts. They should be ashamed. 3. Officials and bankers should be ashamed that “too-big-to-fail” banks still exist. As Simon Johnson notes, “Big banks represent the ultimate in concentrated economic power in today’s economies. They are able to resist all meaningful reform that could really change their compensation schemes. Their executives want to get all the upside while facing none of the true downside. But capitalism without the prospect of failure is not any kind of market economy. We are running a large-scale, nontransparent, and dangerous government subsidy scheme for the benefit primarily of a very few extremely wealthy people.” The top U.S. banks now control more of the economy than they did before the Great Recession. The Fed is secretly bailing out Europe’s too-big-to-fail banks as this is being written. And nobody’s doing anything to change that. They should be ashamed. 4. It’s shameful to preach welfare for bankers and austerity for everyone else. Meanwhile, in the great capitals of Europe and North America, the talk is of austerity economics. That means drastic cutbacks in government services that the public has paid for, like Social Security, that form the backbone of a prosperous, fair, and humane society. Leaders are calling these cuts “unavoidable” even as economists warn that they’re already creating a new European recession. It is, as Paul Krugman observes, something that will appear remarkable to future historians (if any history departments survive the austerity cuts to preserve the profession). They’re not prescribing the “hair of the dog”; they’re forcing the entire dead animal down the public’s throat. Why would Europe’s leaders propose a set of policies that is already demonstrably making the economy worse? In part, probably because it’s the easiest way to prop up the current financial system. Comprehensive economic reform would threaten the institutions they feel sworn to protect. Conventional thinking is also a big part of the problem — and conventional thinking makes no room for a “moral economics.” For that they should be deeply, deeply ashamed. The Hall of Shame includes Angela Merkel of Germany, Nicolas Sarkozy of France, David Cameron of Great Britain, and — at times — Barack Obama of the United States. And if they’re not capable of shame, the society around them must express that shame for them. It’s already moved Obama’s rhetoric, and we need more of the same in the coming year. For those who preach the radical dismantling of the government that made our society great — especially the Republicans of the United States — no amount of shame can be enough. And for someone like Mitt Romney, who knows how to read financial reports and clearly knows better, it’s worth noting that the eighth circle of hell is reserved for those who knew better and yet did wicked things anyway. Let’s make 2012 the Year That Shame Returned to the Economic Debate.

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Tom Coburn Singles Out D.C. Pancake Restaurant As Government Waste

December 21, 2011

WASHINGTON — Sen. Tom Coburn (R-Okla.) released his annual “Wastebook” this week and singled out a District of Columbia IHOP restaurant as an example of government waste. According to The Hill : Among the projects listed as wasteful in Coburn’s book are $113,227 for a video game preservation center in New York, $10 million for a remake of “Sesame Street” for Pakistan, $765,828 to subsidize a “pancakes for yuppies” program in Washington, D.C., and $764,825 to study how college students use mobile devices for social networking. Coburn’s report cites a Washington Examiner opinion column by David Freddoso on pancake situation involving Columbia Heights’ IHOP restaurant, which opened to great fanfare in the closing weeks of then-Mayor Adrian Fenty’s administration. Coburn’s report contends: The new IHOP is not located in an — underserved community but a popular Washington D.C. neighborhood. The neighborhood is Columbia Heights, which has become a local shopping hot spot for some and — one of Washington’s more desirable neighborhoods. Other businesses in the area include Target, Bed Bath and Beyond, Best Buy, and Starbucks. IHOP set up shop in a massive Columbia Heights shopping center, part of a major mixed-use redevelopment of a once-vibrant commercial corridor that had been fairly barren even years after a Green Line Metrorail station opened. Last year, Lydia DePillis in Washington City Paper profiled the newly opened IHOP restaurant . The D.C. government set aside $46.9 million in tax increment financing for the massive DCUSA shopping complex and the developer reserved 15,000 square feet for small, local and minority-owned businesses in the building. The IHOP franchise owner is Tyoka Jackson, whose family-owned investment company signed a three-restaurant deal with IHOP. According to DePillis: In some ways, the Jacksons’ IHOP enterprise is a small business. They’ve put in the $1 million for construction, made hiring decisions, and will be the ones to lose their shirts if the place fails. But the Jacksons have a few advantages an independent business could never claim. They get expert business consulting courtesy of the mothership, pooled television advertising, and supplies from a nationwide sourcing cooperative shared with corporate sister Applebees. After the Wastebook report was released, City Paper followed up with Coburn’s office. The senator’s spokesman wrote in reply : “If the D.C. government wants to invest more in IHOP they are certainly welcome to do so. We don’t believe this should be a priority of the federal government when we’re running a $15 trillion debt and our entitlement programs are on the brink of insolvency.”

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Fired RIM Execs ‘Chewed Through Restraints’ In Flight

December 10, 2011

New details are emerging about the rowdy behaviour of two Research In Motion executives who were fired for disrupting a transcontinental flight — including that they managed to chew their way out of restraints and wound up being subdued by other passengers until the plane landed. George Campbell, 45, and Paul Alexander Wilson, 38, each pleaded guilty to mischief for disrupting a Nov. 30 flight from Toronto to Beijing. The plane landed instead in Vancouver, where a court later ordered them to pay $72,000 in restitution. They also received suspended sentences and were placed on parole for a year. RIM fired both men after investigating what happened, but little information has been made public about what was so disruptive about their behaviour. However, court documents obtained by CBC News paint a very chaotic picture. The pair seemed heavily intoxicated from the start of the flight, according to one passenger. They drank, passed out, and woke up to continue consuming alcohol and yelling at one another. Campbell was described as a “rowdy and abusive” passenger who at one point warned that he would “off people when they left the plane,” according to the Crown prosecutor. One of the men also “assaulted a flight attendant and threatened to punch another,” the prosecution said in court. Crew members tried repeatedly to subdue the pair, but they kept struggling to get free, “verbally abusing” people on board and eventually “chewed their way through their restraints.” Diverted to closer airport As the situation escalated, the pilots decided to divert the plane to Anchorage. But the situation become so dire that they opted for the Vancouver airport, which was closer. During the final 80 minutes of the flight, “several flight attendants and a couple of passengers” restrained the two men and the crew initiated a “lockdown situation” so that no one was allowed to leave their seats. The prosecutor in the case called Campbell and Wilson’s conduct “way over the top.” “The repercussions for the company as well as every single person on the plane, both financially and perhaps even emotionally, are going to be huge.” Air Canada pegged its losses for diverting the flight at nearly $200,000 and RIM issued a statement saying that the conduct did not fit with the company’s “standards of business behaviour.” The two men were on a week-long business trip for the BlackBerry maker, but they were arrested after the flight landed in Vancouver. Both men live near Waterloo, Ont., where RIM is headquartered. Campbell refused to comment on the incident when reached by phone on Friday. Air Canada issued a statement but would not answer questions about the case.

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Companies Pull Ads From Muslim Reality TV Show

December 9, 2011

By Omar Sacirbey Religion News Service (RNS) Lowe’s, the national hardware chain, has pulled commercials from future episodes of “All-American Muslim,” a TLC reality-TV show, after protests by Christian groups. The Florida Family Association, a Tampa Bay group, has led a campaign urging companies to pull ads on “All-American Muslim.” “‘All-American Muslim’ is propaganda clearly designed to counter legitimate and present-day concerns about many Muslims who are advancing Islamic fundamentalism and Sharia law,” the Florida group asserts in a letter it asks members to send to TLC advertisers. The show profiles only Muslims that appear to be ordinary folks while excluding many Islamic believers whose agenda poses a clear and present danger to the liberties and traditional values that the majority of Americans cherish,” the FFA’s letter continues. It was not clear whether the companies cited by the Florida Family Association, which has also targeted shows like MTV’s “Degrassi,” stopped advertising on “All-American Muslim” because of pressure or for other reasons. Emails from Home Depot and Sweet’N Low posted on the Florida Family Association’s website suggest the companies had simply bought one commercial spot, and didn’t cancel any commercials. A spokeswoman for Amway, also cited by the Florida group, denied the company pulled advertising from “All-American Muslim,” and said those reports were “misleading” and “falsely named.” Lowe’s acknowledged pulling commercials from “All-American Muslim” following consumer complaints, but denied they came from one group. “We understand the program raised concerns, complaints, or issues from multiple sides of the viewer spectrum, which we found after doing research of news articles and blogs covering the show,” said Katie Cody, a Lowe’s spokeswoman. Cody declined to specify whether the complaints were anti-Muslim, and whether Lowe’s advertises on shows with Christian, Jewish, or other religious characters or themes. “It is certainly never Lowe’s intent to alienate anyone,” Cody said. “Shame on Lowe’s, and shame on every one of these companies if they really did cave in to such bigotry and hatred,” wrote Sheila Musaji, who blogs at theamericanmuslim.org. If the Florida Family Association and other reports are misrepresenting these companies, she added, “then they need to speak up.” The first of eight weekly episodes of “All-American Muslim,” which follows five Lebanese families in Dearborn, Mich., premiered on Nov. 13. A TLC spokeswoman, Laurie Goldberg, said the network could not comment about the alleged advertising defections, but that the show maintained ”strong” advertising. “There are no plans to pull the show. The show is going to continue as planned,” said Goldberg. Check out a slideshow of some of the cast members below.

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Banks May Have Illegally Foreclosed On Nearly 5,000 Military Members

November 29, 2011

Even those people putting their lives on the line for their country may not be safe from the American foreclosure crisis. Ten lenders are reviewing close to 5,000 foreclosures of homes belonging to active-duty service members in an attempt to discover if they were carried out improperly, according to data from the Office of the Comptroller of the Currency, cited by the Financial Times . The OCC’s report is based on projections prepared by the lenders and and their consultants. Bank of America said it is reviewing 2,400 foreclosures of homes belonging to active-duty service members and Wells Fargo said it’s looking at nearly 900 cases. Citigroup is reviewing 700 foreclosures, the bank said. The Servicemembers Civil Relief act aims to protect active-duty members of the military from financial difficulty, including through measures that restrict foreclosures on properties owned by active-duty military members. Still, as the OCC data indicates, thousands of active-duty members of the armed forces have lost their homes while fighting abroad. Bank of America and Morgan Stanley reached deals with the Justice Department earlier this year, agreeing to pay more than $20 million to settle claims that they foreclosed on more than 175 active-duty service members without court orders. They’re not the only ones. JPMorgan Chase also admitted to illegally foreclosing on the families of 27 active-duty military members earlier this year and has very publicly attempted to give the families back their homes or compensate them for damages if the house was sold. The bank also agreed to pay $27 million in cash to about 6,000 active-duty service members who were overcharged on their mortgages, Bloomberg reports. Illegal foreclosures have affected service members like U.S. Army Sgt. James Hurley who lost his house to foreclosure while he was serving in Iraq. Tim Collette said in June that he had been negotiating with JPMorgan Chase since 2008 to save his house from foreclosure while his son was serving in Iraq. Though illegal foreclosures may be some of the most egregious examples of lenders mistreating service members, banks have wronged members of the military in other ways. An October lawsuit claims that 13 banks and mortgage companies charged hidden and illegal fees from veterans trying to refinance their homes.

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Germany, France Exploring Radical Ways To Secure Eurozone Integration

November 27, 2011

BRUSSELS (Luke Baker and Julien Toyer) – Germany and France are exploring radical methods of securing deeper and more rapid fiscal integration among euro zone countries, aware that getting broad backing for the necessary treaty changes may not be possible, EU officials say. Germany’s original plan was to try to secure agreement among all 27 EU countries for a limited change to the Lisbon Treaty by the end of 2012, making it possible to impose much tighter budget controls over the 17 euro zone countries — a way of shoring up the region’s defenses against the debt crisis. But in meetings with EU leaders in recent weeks, it has become clear to both German Chancellor Angela Merkel and French President Nicolas Sarkozy that it may not be possible to get all 27 countries on board, EU sources say. Even if that were possible, it could take a year or more to finally secure the changes while market attacks on Italy, Spain and now France suggest bold measures are needed within weeks. As a result, senior French and German civil servants have been exploring other ways of achieving the goal, either via an agreement among just the euro zone countries, or a separate agreement outside the EU treaty that could involve a core of around 8-10 euro zone countries, officials say. No firm decisions have yet been reached. Reuters exclusively reported on November 9 that French and German officials were discussing plans for a radical overhaul of the European Union to establish a more fiscally integrated and possibly smaller euro zone. “The Germans have made up their minds. They want treaty change and they are doing everything they can to push for it as rapidly as possible,” one senior EU official involved in the negotiations told Reuters. “Senior German officials are on the phone at all hours of the day to every European capital.” While Germany and France are convinced that moving toward fiscal union – which could pave the way for jointly issued euro zone bonds and may provide more leeway for the European Central Bank to act forcefully – is the only way to get on top of the debt crisis, some other euro zone countries are unable or unwilling to move so rapidly toward that goal. Not only Greece, Ireland and Portugal, which are receiving EU/IMF aid, but also Italy and Spain and some east European countries such as Slovakia, would either find it difficult under current economic conditions to meet the budget constraints Germany wants, or simply do not agree with the aim. Consequently, the French and German negotiators are exploring at least two models for more rapid integration among a limited number of euro zone countries, with the possibility of folding that agreement into the EU treaty at a later stage. TWO MODELS One is based on the Pruem Convention of 2005, also known as Schengen III, a treaty signed among 7 countries outside the EU treaty but which was open to any member state to join and was later acceded to by 5 more EU states plus Norway. Another option would be to have a purely Franco-German mini-agreement along the lines of the Elysee treaty of 1963 that other euro zone countries could also sign up to, officials say. “The options are being actively discussed as we speak and things are moving very, very quickly,” a European Commission official briefed on the discussions told Reuters. One source said the aim was to have the outline of an agreement set out before December 9, when EU leaders will meet for their final summit of the year in Brussels. Herman Van Rompuy, the president of the European Council, which represents EU member states, is supposed to deliver a preliminary report on treaty change at the summit. He has held extensive talks with EU leaders in recent weeks to gauge the feasibility of bringing about rapid treaty changes. Sarkozy, who has made two speeches in the past two weeks highlighting the need for more rapid fiscal integration in the euro zone, and has acknowledged that it may be inevitable that a ‘two-speed Europe’ emerges, is due to make another keynote address on December 1 which could provide a platform for laying out in more detail the ideas that he and Merkel are developing. A senior German government official denied there were any secret Franco-German negotiations, but emphasized that both countries saw the need for treaty change as pressing and were exploring how to achieve that in the best way possible. “Germany and France are continuing to focus on proposals for a limited treaty change that can be presented at the EU summit in December,” the official said, emphasizing that there was a need to act quickly to get changes in place. Germany’s Welt am Sonntag newspaper reported on Sunday that Merkel and Sarkozy were working on a new Stability Pact, setting out national debt limits, that could be signed up to by a number of euro zone countries and which would allow the ECB to act more decisively in the crisis. “If the politicians can agree to a comprehensive step, the ECB will jump in and help,” the paper quoted a central banker as saying. The ECB has bought the bonds of euro zone strugglers in intermittent fashion when they have reached crisis point. Economists say it has to act much more radically to turn the market tide but the central bank, and Germany, has opposed any such move. Commitments to binding fiscal rules by euro zone governments may be the cover it needs to change tack. “It would be a real disaster if this strategy which is in fact no strategy, this muddling through, were to continue for some months,” Peter Bofinger, one of the five “wise men” who formally advise the German government on the economy, told Irish state broadcaster RTE. “If this bond run is not stopped it will really endanger the stability of the European and even the global financial system. Bold action by the ECB is definitely needed.” Reuters reported a similar possibility on Friday, with euro zone officials saying that if much tighter fiscal integration could be achieved among euro zone states, it would give the ECB more room to maneuver and buy sovereign bonds. BARGAINING PLOY? While EU officials are clear about the determination of France and Germany to push for more rapid euro zone integration, some caution that the idea of doing so with fewer than 17 countries via a sideline agreement may be more about applying pressure on the remainder to act. By threatening that some countries could be left behind if they don’t sign up to deeper integration, it may be impossible for a country to say no, fearing that doing so could leave it even more exposed to market pressures. “Some of this is just part of the posturing you hear — it’s pressure from Germany to go for treaty change as quickly as possible,” the official involved in the negotiations said. “To some extent you have to see these ideas as part of the bargaining chips that are being put on the table.” The risk for Merkel and Sarkozy is that if they do ultimately decide to push for a sideline agreement involving only 8-10 euro zone states, it would send a clear signal to the markets that the euro zone is split and that some countries are not seen as full members of the currency union. That could either mean that some countries in the euro zone are left with fewer voting rights, even if they still use the euro, or it could mean that some countries decide, ultimately, that they would be better off without the euro — a camp that officials say Greece, the crucible of the debt crisis, could fall into. Copyright 2011 Thomson Reuters. Click for Restrictions .

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Bank Of New York Mellon Backs Off From Its Plans For Deposit Fee

November 26, 2011

(JED HOROWITZ, Reuters) – Bank of New York Mellon Corp, which was derided for a plan to charge some of its large corporate and investment management clients for holding their deposits, appears to have flinched. The bank has not assessed a penny since warning clients about the possible deposit fee in early August, officials told Reuters, although it remains burdened by cash that it cannot profitably redeploy at rock-bottom interest rates. The fee of 0.13 percent was to have taken effect on August 8 for accounts with more than $50 million that had soared well above their monthly averages as clients fled short-term investments for the safety of U.S. banks. “My guess is that the backlash was pretty stringent and they decided not to do it,” said William Gerber, chief financial officer of TD Ameritrade Holding Corp, a cash-management client of Bank of New York. “I can see their problem but I’m not that empathetic considering all the fees we’ve been waiving.” He was referring to hundreds of millions of dollars of money-market mutual fund fees that financial companies have waived over the past two years lest investors realize negative returns on their fund holdings. Unlike Bank of America, which was shamed into withdrawing a plan to charge its customers $5 for debit card transactions after a torrent of articles ridiculing the proposal, Bank of New York said that its super-sized version of its deposit fee is not dead. “We haven’t charged any clients to date, and the policy remains in place as markets remain unsettled and interest rates remain at historic lows,” BNY Mellon spokesman Ron Sommer wrote in an email. The fee, he added, was aimed at “a small number of clients with extraordinarily high and volatile deposit levels.” In its August letter, the bank urged clients to consider cash investment options “to minimize any effect” of the mooted fee. ANXIETY DROVE DEPOSITS The plan was prompted by a flood of deposits from companies, money-market funds and other clients fleeing short-term investments that exposed them in late July to the then-unfolding Greek financial crisis and from U.S. government securities amid a Congressional impasse over raising the U.S. debt ceiling. A source said Bank of New York’s deposits swelled about 39 percent in a period of two weeks in late July and early August to about $250 billion, underscoring the fragility of the global financial system at any sign of panic and creating balance-sheet management challenges for the bank. At the end of September, deposits were 45 percent higher than a year earlier, Chief Financial Officer Todd Gibbons said in discussing third-quarter earnings, though he said the influx had stabilized since earlier in the quarter. Sommer declined to discuss the deposit levels. Bank of New York continues to attract a heavy flow of cash since it has higher ratings from Moody’s Investor Services than trust bank competitors such as State Street Corp and Northern Trust Corp, another official said. Those banks did not match Bank of New York’s deposit fee announcement, although some commercial banks with larger lending businesses that fund loans with deposits have been passing FDIC fees to some of their small-business customers. The policy was initiated under former Bank of New York Chief Executive Robert Kelly, who was ousted in early September and replaced by Gerald Hassell, a 30-plus-year veteran of Bank of New York who some insiders said was more sensitive to client relationships. Kelly took the top role when the New York bank combined in 2007 with Pittsburgh-based Mellon Financial Corp, which he led. “I believe they are backing away from the strategy, Gerard Cassidy, an analyst at RBC Capital Markets, wrote in an email. “Not certain if it is customer backlash or a rethinking of strategy under new CEO.” Custody banks make most of their money from holding securities and other assets for clients worldwide and ensuring that they are properly accounted for and exchanged when clients demand. Bank of New York swapped its 338 retail branches and small business banking businesses in 2006 for JPMorgan Chase & Co’s corporate trust business and $150 million in cash. The deal helped Bank of New York avoid some of the credit problems that continue to depress earnings of more traditional banks, but deprives it of the ability to negotiate on loans and other businesses in return for winning custody activities. Because rates are so low, many custody banks today are less eager to attract new business or are more aggressive about insisting that clients offset the low-return deposit business by using other services, said Anthony Carfang, head of Treasury Strategies, a Chicago-based consulting firm. (Reporting by Jed Horowitz; Editing by Tim Dobbyn) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Overworked, Older Americans Not Using Up Allotted Vacation Days

November 26, 2011

NEW YORK — By year’s end, the average American worker will have accumulated more than a week’s worth of unused vacation days . According to a recent American Travel Behavior Survey, commissioned by the discount travel website Hotwire.com, older Americans tend to have a disproportionate share of unused vacation time. In particular, for workers ages 55 and older, the survey found that nearly 30 percent have between five and 10 vacation days left over at the end of each year. Further, it found that only a quarter of workers 55 and older had used up all of their allotted vacation time by year’s end. “Too many Americans are getting caught up in their everyday routine and are either forgetting to use their vacation or assuming travel for the remainder of the year is too expensive,” said Clem Bason, president of the Hotwire Group, in a statement. In terms of claiming unused vacation time, Bason cited the first two weeks of December as a generally more affordable and cost-effective time to book hotel and airline reservations, since it’s just before the crush of holiday travel. While Manny Avramidis, senior vice president of global human resources at the American Management Association, sees older workers as generally having amassed more vacation time than their younger counterparts, he said the general unwillingness to claim unused vacation time is based on fears related to the economy. “For some people, when they’re present and working, they think they’re showing their boss their value,” Avramidis said. “They fear that when they’re on vacation, their manager will see that the company not only does fine without them, but that they might eliminate their position as a result.” Even still, he cited some organizations where managers are tasked with ensuring that workers take an appropriate amount of time away from the office — be it a long weekend or a two-week jaunt abroad. Forgoing vacation time is not without its own danger. Overworked employees are particularly prone to burn out and can eventually lack the ability to balance their work responsibilities with the other demands of their busy lives. Christiane Turnheim, a life and career coach, strongly encouraged workers of all ages to use unclaimed vacation days — despite the near-constant demands of work. “You’re only considered a good employee if you dedicate your full life to your company, even putting your family and your own health in second place,” said Turnheim, who also teaches psychology at a Boston-area community college. Besides rather obvious benefits of potential stress reduction, Turnheim said recharging one’s batteries is a way to eventually become more productive and more creative. “If you want a workforce that’s on top of their game, you need a well-rested and energized worker,” Turnheim said. She also cautioned would-be vacationers against continuing to manically check their smartphones during all hours of the day. “When you finally go away, it’s essential to turn off your phone and really put your mind somewhere else and focus on something else that’s not work-related,” Turnheim said. “We’re expected to be on and available 24/7, and part of getting away is to actually get away.” BELOW: View five ideal destinations for the Post50 crowd:

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The 14 Most Employable Majors

November 9, 2011

Want to get a job when you graduate? (Who doesn’t?) It might be time to look into college majors that definitively lead to employment in the great wide world. According to census data obtained by the Wall Street Journal , several majors have a 0% unemployment rate, including actuarial science, pharmacology and teaching. Its a really interesting and surprising list. See? We are not all doom and gloom at HuffPost College Check out our slide show of the 14 most employable majors. Then tell us, what do you think of this list? Would you major in any of these courses? Let us know in the comments section.

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Michele Bachmann Blasts Herman Cain’s ‘Devil’ 9-9-9 Plan

October 12, 2011

Herman Cain, as is his wont, defended his 9-9-9 plan during Tuesday night’s Republican primary debate by saying that everyone who’s analyzed it — and that includes economic minds from the left and the right (see Bruce Bartlett ) — is just “wrong” because they’ve started from the wrong set of assumptions. Those same economists struggle to analyze the plan because Cain refuses to show his work. Per ABC News : “The first thing I think is show me the money,” said Joel Slemrod, an economics professor at the University of Michigan. “I want to know whether it adds up and I suspect it doesn’t.” The 9-9-9 plan eliminates the payroll tax and estate tax, which brought in a combined $883 billion in 2010, or about 41 percent of the $2.16 trillion collected by the federal government last year. Cain’s proposal also wipes out taxes on capital gains and repatriated corporate profits. The Tax Policy Center estimates that cutting capital gains taxes alone would allow 23,000 millionaires to pay no income taxes, a move that would add $11 billion to the deficit each year. Cain’s fellow GOP presidential candidates Michele Bachmann, Newt Gingrich and Jon Huntsman also support eliminating the capital gains tax. Cain’s plan to end taxes on corporate profits that are earned overseas and then brought back into America would drop federal revenues by about $80 billion over the next decade, according to the tax center. “Everything he’s talking about is if you just provide tax cuts to rich people we will all fare well,” Mishel said. “But hasn’t that been the theme for 30 years and doesn’t everybody agree that the middle class does not fare well? This is a triumph of amnesia.” And per the Christian Science Monitor : But probably the largest economic impact would be shifting the tax burden. “It’s a huge tax reduction on the very top and a huge tax increase for moderate and low income people,” says Michael Graetz, a professor at Columbia University who has testified before Congress on taxes. For example, economists have a measure called marginal propensity to consume. Low income people tend to spend about 98 percent of their income, middle income people spend 97 percent and high income people spend 90 percent. Thus, Cain’s proposal would result in an individual who makes $20,000 per year, paying $1,800 in income taxes, plus another $1,605 in sales taxes, assuming they spend 98 percent of their income. The combined income and sales taxes would amount to 17 percent of income. By way of comparison, using today’s tax rates, that individual – married filing separately – would pay $2,575 in combined taxes or 12.8 percent of their income, according to the website moneychimp.com. Michele Bachmann blew up Twitter with her ensuing quip, “When you take the 9-9-9 plan, and turn it upside down, the devil’s in the details.” Michele Bachmann is correct!

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Kanye West Visits Occupy Wall Street

October 10, 2011

Kanye West has become the latest celebrity visitor to the Occupy Wall Street protests. The hip hop artist/fashion designer/all around impresario showed up at the rallies in downtown Manhattan on Monday. Russell Simmons, who has been involved with the protests for some time, tweeted a picture of West on his way down. West, of course, became known for his unscripted televised moment in 2005, when he said , “George Bush doesn’t care about black people” during an appeal for aid to the victims of Hurricane Katrina. PHOTO :

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Greece Financial Crisis Creating Serious Health Problems

October 10, 2011

ATHENS, Greece — The Greek financial crisis has become a health hazard. Economically vulnerable Greeks are losing health care access amid dwindling budgets, facing higher risks of HIV infection and sexually transmitted diseases, and in some cases, even dying, according to a study released online Monday by The Lancet, a British medical journal. Citing data from the Greek government, the European Union and other sources, the authors of the report traced an alarming deterioration in health data in the past few years as Greece struggled through annual recessions that have pushed it closer to a default despite international bailout efforts. Greeks are struggling to cope with austerity measures that have triggered strikes and protests. Unofficial data reported in the Greek parliament cite a 25 percent rise in suicides in 2010 over the previous year, and the health minister reported a 40 percent rise in suicides in the first half of 2011 compared with the same period in 2010, according to the Lancet report. One co-authors, Alexander Kentikelenis of the sociology department at the University of Cambridge, said the study reported on issues “we know are directly related to the crisis.” The data noted a sharp rise in HIV infections in late 2010, as well as projections that new infections will rise by 52 percent to more than 900 this year compared with 2010. Half of the increases so far are attributable to infections among intravenous drug users. Data for the first seven months of this year show more than a 10-fold rise in new infections in these drug users compared with the same period last year. Many are infected because of unsafe sexual practices. “The way this is linked to the financial crisis is that injecting drug users do not have access to occasional employment or handouts or pocket money from parents,” Kentikelenis said. Many, he noted, “resort to prostitution to cover the costs of the drugs.” Heroin use has also risen, while budget cuts have led to the loss of some work programs for people living on the street. Kentikelenis said there was a significant lag time in obtaining data on health care, in contrast to some market and other financial data that is available almost immediately. The year 2007 was used as a “pre-crisis baseline” in the study, he said. The report cited data showing that homicide and theft rates nearly doubled between 2007 and 2009, and that the number of people able to obtain sickness benefits declined by around 40 percent during the same period, probably due to budget cuts. The authors of the report, which was subtitled “Omens of a Greek Tragedy,” said there had been significant reductions in alcohol consumption and that police data show incidents of people driving while drunk have dropped. “There is space for government intervention that will make the situation better,” Kentikelenis said. “The situation, we think, is still reversible.” Meanwhile, a leading member of the international team assessing heavily indebted Greece’s progress said the government must undertake even deeper reforms to receive the next batch of its bailout. German newspaper Welt am Sonntag on Saturday quoted Paul Mathias Thomsen, the head of the International Monetary Fund’s delegation in Athens, as saying the adjustment “program won’t work if authorities don’t take the path that requires much tougher structural reforms.” Greece is struggling to meet budget and reform targets to qualify for the next euro8 billion ($11 billion) installment of its euro110 billion package of international bailout loans to avoid bankruptcy. European Central Bank, European Commission and IMF experts will conclude their assessment of Greece’s progress later this month. On Sunday, German Chancellor Angela Merkel and French President Nicolas Sarkozy, leaders of the eurozone’s two biggest economies, they have reached an agreement about how to strengthen Europe’s shaky banking sector amid the region’s debt crisis.

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German Minister Demands Gold Collateral For Future EU Bailouts

August 24, 2011

(MENAFN – Qatar News Agency) In yet a fresh sign of increasing argument in the euro zone over bailouts to peripheral economies, the German Labor Minister and Christian Democratic Union CDU deputy …

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Starbucks CEO Cancels Megachurch Speech, Pastor Denies Anti-Gay Stance

August 12, 2011

NEW YORK — Starbucks CEO Howard Schultz cancelled an appearance at one of the most prominent megachurches in the country after an online petition condemned the congregation as anti-gay – a charge the church denies. Schultz had been scheduled to speak Friday at The Global Leadership Summit organized by the Willow Creek Association, based in South Barrington, Ill. The annual event draws tens of thousands of viewers via satellite. Past speakers have included former President Bill Clinton, GE’s Jack Welch and rock singer Bono. A Starbucks spokeswoman confirmed Schultz would not speak as scheduled, but she declined to say more. However, at the start of the event Thursday, the pastor of Willow Creek Community Church, Bill Hybels, said Schultz had cancelled suddenly after a petition was posted on the Internet a week ago that said his participation would be unacceptable. The petition at Change.org accused the megachurch of “anti-gay persecution” over Willow Creek’s past relationship with Exodus International, a Christian ministry that offers to help gays and lesbians change their sexual orientation. Willow Creek cut ties with Exodus in 2009, church spokeswoman Susan DeLay said. Hybels said that Willow Creek does expect its members to follow biblical ethics and reserve sex for marriage between a man and a woman, but welcomes worshippers of all backgrounds. “To suggest that we check sexual orientation or any other kind of issue at our doors is simply not true,” Hybels said. “Just ask the hundreds of people with same-sex attraction who attend our church every week.” Hybels asked members of the audience to write Schultz “with genuine Christian love” and say he’d be welcome at any future summit. “Buy a cup of coffee in the next couple of days and show some Christian goodwill,” Hybels said.

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Walton Family Foundation Gifts Teach for America $49.5 Million

July 27, 2011

NEW YORK — The Walton Family Foundation announced a $49.5 million grant Wednesday to help double the size of Teach for America’s national teaching corps over the next three years. Teach for America is a program for recent college graduates who sign up to teach in some of the nation’s most under-served schools for a period of two years. The Walton Foundation’s gift marks the single largest private donation to Teach for America in the organization’s more than 20-year history. Later this fall, the organization will send 9,300 corps members to 43 regions across the country. Over the next few years, half of the Walton Family Foundation grant will go towards growing that teaching corps to 15,000 by 2015. “With this critical investment, Teach for America will be able to develop more of our talented recent college graduates and professionals to become longterm champions of educational equity and excellence,” said Wendy Kopp, Teach for America’s founder and CEO, in a statement. “The support and partnership is a vital part of Teach for America’s effort to expand our network of corps members and alumni, who are dedicated to improving educational outcomes for children in our urban and rural communities.” In the world of education philanthropy, the donation solidifies Teach for America’s standing as the recipient of the most grant money directed towards the improvement of teaching and learning, according to a report released earlier this month by a team of researchers from the University of Georgia and Kronley & Associates focused on foundation giving to education. Between 2000 and 2008, researchers concluded that philanthropies donated $684 million specifically towards the improvement of teaching and learning. Of this money, 60 percent went towards 10 organizations. According to their analysis, Teach for America received the most, with more than $213 million in grant money. The report also concluded that 10 foundations accounted for exactly half of all grants given. In the world of education philanthropy, three foundations topped the list: the Bill and Melinda Gates Foundation, the Walton Family Foundation and the Broad Foundation. The Walton Family Foundation, which is overseen by Walmart founder Sam Walton’s three children, focuses the bulk of its giving on the issue of education reform. But it also funds conservative groups such as the Cato Foundation, Americans for Tax Reform and the American Enterprise Institute. In 2008, the foundation distributed more than $168 million in grants . Last year, it gave away $157 million. Since 1993, the foundation has donated more than $22 million to Teach for America. Besides helping to expand the organization’s operations, the other half of the new $49.5 million grant will go towards training and support for corps members in seven communities the foundation states are among its priority areas: Denver, Los Angeles, Milwaukee, Newark, New Orleans, Washington, D.C. and the Delta region of Mississippi, where the Bentonville, Arkansas-based foundation is headquartered. Dorian Warren, a professor of political science at Columbia University’s School of International and Public Affairs and author of a forthcoming book about Walmart, believes the seven communities the Walton Family Foundation is targeting with Teach for America are relevant for another reason: they are all potentially overlap with Walmart’s expansion plans. “Besides six of the seven communities being comprised primarily of people of color, I wouldn’t be surprised if these also happen to be their store expansion targets,” Warren told The Huffington Post. “A lot of their giving is related to their expansion efforts, but I don’t know for certain whether this is one of those instances.” Jim Blew, who leads the Walton Family Foundation’s K-12 education reform efforts, was unavailable to comment. Some wonder whether the Teach for America gift signals an ideological shift in the priorities of the Walton Family Foundation. Jeffrey Henig, a professor of political science and education at Columbia University’s Teachers College, sees a pattern of giving by the Walton Family Foundation. Its philanthropy, he says, while initially focused on hard-core conservative issues like vouchers and privatization has since expanded to include initiatives like charter schools. “While groups like Teach for America have done a good job of blurring partisan boundaries, I can’t help but think of this alliance as a pairing of strange bedfellows,” said Henig. “I keep waiting for what I expect are some serious disagreements on core principles to flare up and bring the implicit tension finally out into the open. But so far, it really hasn’t happened yet.” For Diane Ravitch, a New York University education historian and former U.S. Assistant Secretary of Education, the pairing raises more than a few alarm bells. “The Walton Family Foundation is the most conservative-leaning in the education philanthropy business,” she said. “Their giving is almost entirely to charters and vouchers. So now you have charters and vouchers and Teach for America — or the mainstreaming of their right-wing agenda.” But Rob Reich, a professor of political science at Stanford University, is less convinced that Teach for America is being influenced by Walton’s conservative-leaning stance. Rather, Reich wonders whether the size of the foundation’s donation marks a shift in its own giving trajectory — away from the promotion of vouchers and charters to instead devoting a large chunk of its resources toward developing a pipeline of highly effective teachers. “I see the size of their Teach for America donation as a clear departure from their typical grant-making pattern,” said Reich, who also co-directs Stanford’s Center on Philanthropy and Civil Society. “One way of thinking about the grant is that it’s a tacit admission that school choice as the lever for fundamentally changing education is politically fraught and they’re instead choosing to diversify their portfolio.” Sarah Reckhow, an assistant professor of political science at Michigan State University and a 2002 Teach for America corps member, noted that “of the top education funders, the Walton Family Foundation falls the farthest to the right.” But for Reckhow, the grant shows how well-legitimized an organization Teach for America has become, particularly among a certain sector of policymakers and education reformers. “Giving to Teach for America is now about as mainstream a thing as you can do,” she said.

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Corporation Culture Wars

July 15, 2011

By Nicole Neroulias Religion News Service (RNS) When you buy a pair of shoes, a spicy chicken sandwich, or a gym membership, does that mean you endorse everything about the company — including the CEO’s religious beliefs? It’s a question that has long plagued socially conscious consumers, but sites like Change.org now mobilize grassroots campaigns against companies like Curves fitness centers, whose CEO donates millions to anti-abortion groups, and Chick-fil-A, a fast-food chain that supports faith-based groups opposed to same-sex relationships. While protests haven’t stopped those corporate leaders from supporting conservative Christian agendas, the head of TOMS shoes has felt compelled to apologize for agreeing to a June 30 interview with Focus on the Family president Jim Daly. Blake Mycoskie, 34, an evangelical Christian, founded TOMS in 2006, promising every pair would be made with fair labor and would provide a second pair for a needy child. The for-profit California-based company, which has given away more than a million pairs of shoes, is popular on the West Coast, particularly with young adults attracted to no-frills fashions and social justice activities. After gay-rights and feminist groups criticized Mycoskie and his customers threatened a boycott, the CEO apologized on Saturday (July 9). “Had I known the full extent of Focus on the Family’s beliefs, I would not have accepted the invitation to speak at their event,” he wrote on his Start Something That Matters blog. Comments on his blog and Facebook page doubted that Mycoskie was ignorant of Focus’ activism against homosexuality, especially since some had warned him when the event was first advertised. TOMS could opt to block the radio broadcast of the interview, but as of Wednesday, Focus still hopes to air the 45-minute program this fall, reaching up to 2.8 million listeners. “We approached TOMS because Blake attracts a certain audience and because his story is inspirational,” said Gary Schneeberger, a Focus spokesman. “The idea that out of his faith, as a Christian, he created this company, we thought this was inspiring and was something our listeners would like to hear.” Mycoskie has credited faith as inspiring his business, but the TOMS website proclaims the company is nonpolitical and nonreligious. “While we are happy to work with organizations from all religious and political backgrounds, we prohibit the giving of our shoes from being associated with any religious or political ideology,” the website states. In its application materials, the company requires potential partners to agree they won’t try to convert aid recipients or require them to participate in any kind of religious activity to receive shoes. Companies and their leaders are free to support religious or political causes, but Chris MacDonald, a business ethicist affiliated with Duke University’s Kenan Institute for Ethics, said consumers should take such actions into account. “If you have a sense that your money is somehow, even indirectly, contributing to a cause that you find morally problematic, then it seems somewhere between reasonable and obligatory for you to vote with your dollars,” he said. “Your individual purchasing decision isn’t doing a lot to further the cause of the company’s CEO — maybe just a few pennies — but there’s also symbolic value, and you’re responsible for that.” In the past, consumer complaints over gay issues were more likely to come from conservative Christian groups, with organizations like the American Family Association objecting to the corporate policies of companies like Walgreens, Wal-Mart and Proctor & Gamble. It’s one thing to put your money where your mouth is, but it’s not practical for consumers to avoid doing business with any companies whose policies or leaders support opposing religious or political beliefs, MacDonald said. “A lot of people like the idea of companies being socially involved in their community,” he said, “but if you want big companies to get involved in social issues, what makes you think they’re going to come down on your side?” Gay rights petitions have achieved limited success in the past year: Apple pulled apps for conservative groups like Exodus International and the Manhattan Declaration from its iTunes store, and Chick-fil-A’s president issued a statement that “while my family and I believe in the biblical definition of marriage, we love and respect anyone who disagrees.” The quick, direct apology from TOMS is an anomaly, MacDonald said, speculating that the company’s small size and social responsibility mission made it vulnerable to criticism from its core audience. In comparison, left-wing protests against Whole Foods, whose CEO came out against health care reform two years ago, haven’t had a noticeable impact on the supermarket chain. Focus on the Family is “not unfamiliar with being protested,” but this is the first time that a business leader has felt compelled to publicly apologize and possibly withdraw from its program, Schneeberger said. “People have to make their buying decisions based on their own values and consciousness. That’s America,” he said. “(But) that is a little bit troubling and kind of chilling as we look ahead, because we have to wonder what people will say we’re not fit to do next, if we’re not fit to put shoes on the feet of impoverished children.”

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New Plan To Cut Medicare Gets Cold Reception, But Could Survive

June 28, 2011

WASHINGTON — A new plan unveiled by Sens. Joe Lieberman and Tom Coburn to slash costs in Medicare is getting a cold reception on Capitol Hill. The new effort aimed at bridging the partisan divide over debt reduction aims to cut more than $640 billion from Medicare over the next 10 years, largely by raising deductibles and other costs for beneficiaries. It would require wealthier Americans to pay the full cost of their Medicare premiums, raise the eligibility age to from 65 to 67, create a minimum out-of-pocket deductible of $550 and raise premiums, among other changes. In return for paying more and giving up benefits, seniors would get a cap on out-of-pocket expenses at $7,500 to ensure bankruptcy was less of a threat. Democrats dismissed the ideas out of hand. “It is unfair to ask seniors to get less in benefits and wait longer to get onto Medicare — all while Republicans back tax breaks for Big Oil and corporations that ship American jobs overseas,” said House Minority Leader Nancy Pelosi (D-Calif.) “Just like the Republican plan to end Medicare, this proposal is unacceptable, especially for struggling middle-class Americans.” Republicans did not exactly flock to the idea either. Senate Minority Leader Mitch McConnell merely said the work by the Connecticut independent Lieberman and Oklahoma Republican Coburn underscores “the necessity of doing something serious about entitlement reform.” “We can put our heads in the sand and ignore that, and keep on kicking the can down the road, or we can come together as Sen. Coburn and Sen. Lieberman have with their particular proposal and try to do something about it,” McConnell added. Although the plan met such a chilly reception, reports out of the White House Tuesday suggested President Obama is hunting for a fresh option to trim Medicare costs — a key part of the debt talks — and thinking a lot larger than Democrats have been willing talk about so far. If Republicans agree to revenue hikes President Obama wants, the Lieberman-Coburn plan could offer a bipartisan refuge. But there are political realities that would make it a hard proposition for either side to embrace. For one, Democrats likely would have to give up their relentless hammering of the Republican plans to cut Medicare — which the Democrat-aligned Protect Your Care signled Tuesday it was not about to do. “A plan that slashes Medicare for vulnerable seniors is a plan that slashes Medicare for vulnerable seniors no matter what co-sponsors you put on it,” said Protect Your Care spokesman Eddie Vale. “This so called ‘plan’ is just as dangerous for seniors as the Republican budget that ends Medicare.” For Republicans, accepting the plan would also be difficult because a huge portion of the savings depend on maintaining the health reform law that they have vowed to repeal. “It’s miraculous in a way, because this legislation gets a Republican to embrace ACA [the Affordable Care Act],” one health care lobbyist told The Huffington Post. If the heath reform were repealed, the Lieberman-Coburn measure requires keeping the eligibility age at 65 — costing $124 billion. The ideas are also not likely to go over well with older Americans, who would have to pay 35 percent of the cost of the premiums, instead of 25 percent. Plus, the plan aims to discourage people from going to doctors by raising deductibles. While the plan would also raise money by making wealthier Americans pay 100 percent of their premium costs — and by denying some payments to hospitals — the vast majority of savings come from the pockets of beneficiaries. The bill contains few of the popular cost-saving ideas that many advocates for reform have embraced, such as improving efficiency, allowing Medicare to negotiate drug prices and using generics. AARP, the influential lobby for older Americans, estimated that 95 percent of the savings come from seniors. And while the group liked capping the maximum out-of-pocket expenses, and an effort to stabilize payments to doctors, they opposed it overall. “We believe the right way to strengthen Medicare is to improve the quality and lower the cost of care throughout the health care system,” said AARP’s Nancy LeaMond. “Simply shifting the bill to seniors does nothing to improve health care quality or combat the real problem of rising costs.”

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Sino-Forest’s Largest Stakeholder Bails Out

June 21, 2011

THE CANADIAN PRESS — TORONTO – Sino-Forest’s largest shareholder, Paulson & Co., is reportedly selling off its investment in China forestry company Sino-Forest Corp. (TSX:TRE). Billionaire hedge fund manager John Paulson is the largest shareholder in the company with a 14.13 per cent stake. Shares in Sino-Forest have collapsed in the wake of claims by short seller Muddy Waters Research that it fraudulently exaggerated the size of its assets. Sino-Forest fought back Monday against the allegations by releasing a trove of files documenting much of its holdings and what it has in the bank. But in a statement issued Monday, John Paulson says “due to uncertainty over Sino-Forest’s public disclosures and financial statements, we have sold our stock.” The company, which trades on the TSX but operates in China, is one of Canada’s largest forestry companies by stock value. Sino-Forest shares, which traded for more than $18 last week before the commentary by short seller Muddy Waters Research, were up sharply Monday. The stock closed up 87 cents at $6.10 on the Toronto Stock Exchange at midday, adding back more than $200 million to the company’s market value. Sino-Forest said it has hired an independent law firm to address the allegations and planned to ask securities regulators in Canada and other jurisdictions to investigate trading by Muddy Waters. “The company believes Muddy Waters’ report to be inaccurate, spurious and defamatory,” the company said in a statement. “Muddy Waters’ self-interest is transparent: to make money from the fall in Sino-Forest’s share price on the back of a decline that it itself precipitated.”

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Brazil Earns Credit Upgrade Due To Sound Policies

June 20, 2011

RIO DE JANEIRO (Stuart Grudgings) – Moody’s Investors Service upgraded Brazil’s sovereign credit rating on Monday, giving a vote of confidence to the government’s efforts to prevent Latin America’s largest economy from overheating. Moody’s lifted Brazil a notch further into investment grade status to “Baa2″ and retained its positive outlook, underlining the resilience of its economy compared to some European countries that are suffering debt crises and downgrades. The agency said it awarded the upgrade because Brazil’s policies had successfully dampened overheating pressures that threatened to derail the economy after torrid growth of 7.5 percent last year. It also said the South American nation was less vulnerable to credit risks than many others because of its solid banking system. The authorities were acting to defuse an overheated economy through a combination of fiscal and monetary measures, Moody’s said. But with the pressure on politicians to spend, some analysts questioned Moody’s decision despite promises by President Dilma Rousseff to curtail spending. Kathryn Rooney Vera, senior emerging markets strategist at Bulltick Capital Markets, said Moody’s move was a “bit premature,” given Rousseff’s relatively timid cuts to spending. There have been calls for the government to make bolder cuts to the bureaucracy and public employee benefits. Brazil’s central bank has raised interest rates four times this year to 12.25 percent and taken other steps to curb strong credit growth. Rousseff has also pledged budget cuts of more than $30 billion to curb public spending last year that contributed to 6.55 percent inflation. Monthly fiscal numbers have shown improvement this year. On Moody’s ratings, Brazil is now one notch above India and Ireland. In another sign of improving economic stability in Latin America, Moody’s awarded Colombia its second investment-grade rating in two months in May. Moody’s move follows an upgrade for Brazil by ratings firm Fitch and Standard and Poor’s decision to raise its outlook to positive on its “BBB-” rating, the lowest rung in investment grade territory. “I think investors realize that in terms of returns and in terms of GDP ratios and fiscal balances, many emerging market countries are doing better than the developed world,” said Clyde Wardle, emerging markets FX strategist with HSBC in New York. “There is a lot to continue supporting Brazil.” Alexandre Tombini, Brazil’s central bank chief, said Moody’s decision was a recognition of the “effectiveness of the current economic policy in keeping and consolidating stability.” Brazil’s real reversed losses after Moody’s announcement to rise 0.3 percent to 1.591 reais to the dollar. CREDIT RISKS SEEN LOW Mauro Leos, Moody’s Brazil analyst, said the agency had maintained its positive rating because there was scope for more improvement in the fiscal accounts in the coming year. “There is still a lot that needs to be done on the Brazil fiscal side. We would like to see … the fiscal results to be better during booming times,” he said. “If that were to be the case, that would allow Brazil eventually to go higher in the Baa category and possibly into an A rating down the road.” Brazil first won investment grade status in 2008 after years of solid growth and fiscal discipline, banishing its reputation as a crisis-prone basket case. Moody’s said the Brazilian banking system appeared resilient enough to weather any potential credit shocks. Concerns about a credit bust in Brazil have grown as consumers have gone on a debt-fueled spending spree in recent years and are now facing sharply higher interest rates. Banks’ high capital ratios provide “a sturdy first-line-of-defense against any such event,” Moody’s said. (Additional reporting by Jeb Blount in Rio and Alexandra Alper in New York; writing by Stuart Grudgings; Editing by Todd Benson and Kenneth Barry) Copyright 2011 Thomson Reuters. Click for Restrictions .

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TEPCO’s Credit Rating Reduced To Junk By Moody’s

June 20, 2011

TOKYO – Moody’s Investors Service cut its credit rating on Tokyo Electric Power Co to junk status on Monday and kept the operator of Japan’s crippled nuclear power plant on review for possible further downgrade, citing uncertainty over the fate of its bailout plan. Moody’s said it had lowered Tokyo Electric Power’s (Tepco) senior secured rating to Ba2 from Baa2 and long-term rating to B1 from Baa3, citing rising costs and compensation fees related to the disaster at Tepco’s Fukushima Daiichi nuclear plant after the March 11 earthquake and tsunami, the world’s worst nuclear disaster in 25 years. “The latest downgrade reflects further escalation of costs and damages from the continuing Fukushima nuclear plant disaster and increased concern that government support measures may not completely protect creditors from losses,” Moody’s said. “The continued review for possible further downgrade is due to the uncertainty surrounding the passage of the support plan through the Diet, and the difficulty in estimating the ultimate total for Tepco’s total compensation liability,” it said. The move follows a similar downgrade to junk status by ratings agency Standard and Poor’s, which late last month cut its long-term credit rating on Tepco to B+ from BBB, and the utility’s secured bonds rating to BB+ from BBB. Moody’s said likely damages were now beyond Tepco’s ability to finance without government support, and the ratings agency said it is “very likely that a support program in some form will be legislated eventually due to TEPCO’s role as Japan’s largest provider of electricity.” Tepco is Japan’s largest corporate bond issuer, and its shares are widely held by financial institutions. “A failure to approve the support program would result in a multi-notch downgrade to reflect likely default through some form of debt restructuring, or court-supervised bankruptcy proceeding,” Moody’s said. Even if a support program is enacted on a timely basis, Moody’s said it expected Tepco to remain financially weak for several years. Tepco will likely face rising costs for replacement power, bear higher costs for stabilizing the Fukushima plant, as well as its decommissioning, Moody’s said. “Prospects for passing higher costs onto its customers in timely manner that meets the company’s financial needs are in doubt under the current regulatory regime and in view of the unfavorable economic environment,” Moody’s said. “These factors would together put its equity base under significant pressure. In addition, no losses have yet been booked for compensation claims which size is still uncertain,” Moody’s said. Reactor cooling systems were knocked out by the earthquake and tsunami, causing a meltdown at three of the reactors and forcing the evacuation of about 80,000 residents near the plant. Efforts to restore control over the plant have faced repeated setbacks, with the latest on Saturday, when a rise in radiation halted the clean-up of radioactive water at the Fukushima plant hours after it got under way. Japan’s government last month agreed to set up a fund with taxpayer money to help Tepco avoid insolvency and compensate victims of the radiation crisis at the plant. Japan’s ruling party will extend a session of parliament to approve extra spending needed to rebuild areas ravaged by the earthquake, although it is unclear if the bills will win support from a combative opposition. Besides the extra budget, lawmakers have yet to approve a draft law on compensation to Tepco victims, among others. There is much criticism about the scheme. Japan’s main opposition Liberal Democratic Party (LDP) is not prepared to accept the government’s scheme to help Tepco pay billions of dollars in compensation to victims of its nuclear plant disaster, a LDP lawmaker said on Monday. But the LDP is not united on its own counterproposal to a government bill that would allow the establishment of a fund to help Tepco compensate those affected by radiation leaks, Taro Kono told the Reuters Rebuilding Japan Summit in Tokyo. Tepco’s next shareholder meeting will be held on June 28. (Reporting by Chikako Mogi; Editing by Chris Gallagher) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Lawsuit Could Cost Google $6.1 Billion

June 18, 2011

SAN FRANCISCO (Reuters) – Oracle is seeking between $1.4 billion and $6.1 billion in a patent lawsuit against Google over the lucrative smartphone market, according to a court filing. Oracle sued Google last year, claiming the Web search company’s Android mobile operating technology infringes upon Oracle’s Java patents. Oracle bought the Java programing language through its acquisition of Sun Microsystems in January 2010. A U.S. judge this week ordered Google to make public parts of a court filing that contains details about Oracle’s damage claims. Google complied with that order on Friday, and revealed the damages range sought by Oracle. Google disputes the Oracle damages amount in the court filing, calling it “a breathtaking figure that is out of proportion to any meaningful measure of the intellectual property at issue.” Representatives for both companies did not immediately respond to a request for comment. The case in U.S. District Court, Northern District of California, is Oracle America, Inc v. Google Inc, 10-3561. (Reporting by Dan Levine; editing by Todd Eastham) Copyright 2011 Thomson Reuters. Click for Restrictions

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Ian Fletcher: Why Libertarians Are Wrong on Free Trade

June 18, 2011

I recently gave a podcast interview to Vox Day, a prominent Christian libertarian, explaining why free trade is bad for America. He followed it up with an article making many of the same points. Finally, a libertarian gets it. This did not go over well with some of his followers. I’m not qualified to speak to the “Christian” aspects of free trade — whatever those are — beyond observing that globalism, of which free trade is a part, certainly looks like the Tower of Babel. But as one prominent libertarian has now seen through the free trade delusion that generally grips his fellow libertarians, this is probably a good time to explain what he got and they didn’t. The libertarian defense of free trade can get as complicated as anything in technical economics, but at bottom it comes down to ideas like this, which one can read all over the place in the comments posted after my articles — and now Vox Day’s: “What right do you have to tell me who I may and may not buy things from?” At first blush, that’s quite a challenge. Many libertarians certainly seem to think it’s decisive. It’s certainly a snappy quote. But it’s wrong. Let’s start by noting that I am not claiming any right at all. Protectionism, if implemented, wouldn’t be implemented by me. It would be implemented by the U.S. Government, and would be legitimate — if it is legitimate — for the same reasons all our other legitimate laws are legitimate: We have Constitution and a democratic process, and that’s where laws come from. Some libertarians prefer to call themselves constitutionalists, so it is worth pointing out that Article I, Section 8 of the Constitution explicitly gives Congress the right “to regulate commerce with foreign nations.” The second point in answer to the libertarian challenge stated above is this: This isn’t just about you. Like it or not, even a capitalist economy is a system in which your actions affect other people. Your freedom to swing your fist ends, famously, at the tip of my nose, and what you buy and don’t buy affects other people. Even more importantly, your own economic actions don’t mean anything except in the context of a system that you didn’t create. You don’t enjoy the income you enjoy — which is what gives you the very ability to buy things disputed above — solely because of your own efforts. You enjoy that income because, among other things, you were born into a society which had a per-capita GDP of $47,000 during your working lifetime. If you’d been born in medieval Afghanistan, it would be a very different matter. And not because of anything you personally can claim credit (or deserve blame) for. So you can’t claim that what you’ve got derives solely from your own efforts and that you are therefore entitled to do what you like with it. Robinson Crusoe can claim absolute economic freedom; you can’t. None of this is to deny that a reasonable amount of economic freedom is a good thing. But you get into trouble when you elevate it, like any other good, into an absolute. Try absolutizing national security, traditional values, law enforcement, self expression, religious piety, intellectual sophistication, social order… get my point? Here the plot thickens, because the nature of this economic system we are all a part of is the real key to why free trade doesn’t work even within libertarian assumptions. The libertarian economic model is a model based on free markets. That is, it is based on the idea that free market economics describes both the way the economy is (insofar as it works well) and the way it should be. The key idea of this free market economics is equilibrium. That is to say, free market economics holds that if market forces are allowed free play, then the prices and production of things will reach natural equilibria that are the most efficient outcome that could exist. To a huge (but not total) extent, this is true. (I studied economics at the University of Chicago; trust me, I know this story.) But there’s a catch. Equilibria only balance properly if nobody puts a “thumb on the scale” anywhere in the economic system and distorts it. If that happens, then all bets are off about the outcome being efficient at the level of the system as a whole. All bets are also off — this is the key — about any individual “free” market decision being valid. Why? Because the market isn’t free anymore. You can’t play by free market rules when you’re not in a free market. Try playing fair when the game is rigged. That’s not fairness, it’s suicide. Unfortunately, there are a million “thumbs on the scale” in international trade right now. All of these distort market forces, so even if pure-free-market economics is right (it isn’t, but that’s another story), libertarian economic conclusions don’t follow. How are markets distorted in trade? Don’t get me started. To name just a few ways: China manipulates its currency. So does Japan, Germany, and a few others. China keeps American goods out of its markets. So does Japan, yadda yadda yadda, albeit more politely. China subsidizes (contravening its own WTO treaties) its industries in ways ranging from cheap credit to free land. China steals American intellectual property. (Germany and Japan mostly quit doing this long ago, largely because they now have a lot of intellectual property of their own to protect.) China uses slave labor. Even its non-slave labor is regimented in ways unimaginable in the U.S. As a result, someone who buys cheap foreign goods isn’t exercising a free choice, they’re just taking advantage of someone else’s utterly coercive subsidy. The price system can’t tell the difference — cheap is cheap — and that’s why people make this choice thinking they’re practicing freedom. But the slaves keep on sweating. And the money changers keep cheating. And all the rest of it. Whenever libertarians buy foreign goods that are cheaper because of all these practices, they encourage them. And that actually diminishes, rather than increases, freedom. So even from a libertarian point of view, free trade is a losing move.

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2012 Battleground Littered With Unemployed People

June 13, 2011

Longtime readers are probably aware that I despair over the fact that the only time the media bothers to cover the nation’s massive unemployment crisis is when they can report that it’s a potential problem for the reelection prospects of politicians. It’s a much bigger problem for the people who are unemployed, obviously! But there’s going to be no respite from this jobless phenomenon from here until November 2012, so I suppose I’ll have to lie back and try to be appreciative of articles such as this one by the Wall Street Journal ‘s Sara Murray, titled ” Job Picture Set to Test Obama in Key States .” The nation’s high joblessness, already a problem for President Barack Obama as he seeks re-election next year, is shaping up to be a particular burden in a handful of key swing states where the unemployment rate is above the national average. In four states that may prove key to the Obama re-election strategy — Florida, Nevada, North Carolina and Michigan — the jobless picture is bleak. In three of the four, the rate tops 10%. Congratulations to Florida, Nevada, North Carolina and Michigan! You are in the throes of a terrible downturn, but the good news is that you are part of the battleground. So, you have that going for you. Someone will be coming to tell you that they care, and might you consider voting for them? Of course, if the unemployment rate were, say, 6 percent in those states, they would still be part of the battleground, because these states are always considered battleground states. And, of course, there’s rampant unemployment in places that aren’t considered the “battleground.” So, yes, there’s a certain senselessness to this, but that’s campaign coverage for you! As Murray reports, President Barack Obama is scheduled to make appearances in Florida and North Carolina. Which is nice, I guess? Of course, for the moment, he has other business attend to : Last month, Mr. Obama’s campaign manager, Jim Messina, traveled to New York for back-to-back meetings with Wall Street donors, ending at the home of Marc Lasry, a prominent hedge fund manager, to court donors close to Mr. Obama’s onetime rival, Hillary Rodham Clinton. And Mr. Obama will return to New York this month to dine with bankers, hedge fund executives and private equity investors at the Upper East Side restaurant Daniel. “The first goal was to get recognition that the administration has led the economy from an unimaginably difficult place to where we are today,” said Blair W. Effron, an investment banker closely involved in Mr. Obama’s fund-raising efforts. “Now the second goal is to turn that into support.” Yes, unemployed people, the President is coming to your states but first he has to make sure the people of Wall Street get personal assurances for that time he … um … made them extremely profitable and ensured the passage of only some very light regulation? Oh, well, according to Nicholas Confessore , Obama once referred to these people who nearly destroyed the economy as “fat cats,” so apologies must be made, I guess. As Kevin Drum points out , “After all, even weak financial reforms are more annoying than no financial reforms, which is what Republicans are offering — along with soothing reassurances that Wall Street’s masters of the universe had nothing to do with the financial crisis, no matter what that mean Mr. Obama keeps saying.” Which makes you wonder what the point of courting Wall Street is at all. It looks to me like accepting any form of regulation in order to prevent another financial crisis is only the sort of thing that you’d do if you loved your country, or something. Of course, in the background hovers last week’s “Maybe everyone would accept Raj Date at the CFPB instead of Elizabeth Warren, because Raj used to work at a bank” trial balloon, which tells me that the Obama administration would rather be well-liked than feared. So maybe places like Michigan are “battlegrounds” because a lot of people lost their jobs, in some kind of battle, that’s now over. I guess this is a pretty bad time to be connecting all of these dots, but then, it’s a pretty bad time right now for a lot of people. Would you like to follow me on Twitter ? Because why not? Also, please send tips to tv@huffingtonpost.com — learn more about our media monitoring project here .

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Choosing A Joint Venture Partner For Success

May 31, 2011

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4 Examples Of Successful Joint Ventures

May 31, 2011

Joint venture commercial real estate . 07:51Examples of how rates of returns are increased by using joint ventures in commercial real estate . www.mdcrei.com. Joint Venture . 06:22. Strategic Joint Ventures & learn why your …

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Celebrated Entrepreneur and Philanthropist Red McCombs Named to the Board of Directors of Cinsay, Inc. Following a Significant Equity Investment in Austin-Based eCommerce Technology Developer

May 10, 2011

AUSTIN, TX–(Marketwire – May 10, 2011) – Celebrated Texas businessman, philanthropist and sports team owner Red McCombs has joined the Board of Directors of Cinsay, Inc., the Austin-based new technology company whose proprietary portable web-based video player eCommerce platform has attracted agreements with a wide range of national and international business brands. McCombs’ appointment to the Cinsay, Inc. Board of Directors comes following a strategic investment in the company by McCombs Family Partners. The announcement was made by Christian Briggs, Cinsay Founder and Chairman of the Board.

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Video: Sentinel’s Thwaites Says U.S. Economy `Healthy, Robust’

May 6, 2011

May 6 (Bloomberg) — Christian Thwaites, chief executive officer of Sentinel Investments, David Semmens, U.S. economist at Standard Chartered Bank, and Jeanne Branthover, managing director of Boyden Global Executive Search, talk about today’s report showing American employers in April added more jobs that forecast. Thwaites, Semmens and Branthover also discuss speculation that Greece may withdraw from the euro. They speak with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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State-Owned Firms, Not Currency, Is Biggest Chinese Threat, Business Group Says

May 3, 2011

WASHINGTON (Doug Palmer) – The United States should focus less on China’s currency practices and more on the threat to U.S. companies posed by Beijing’s support for state-owned enterprises, a business group said on Monday. China has used regulatory and other barriers to promote “domestic champions” in high-tech areas such as electric cars, green energy and high-speed rail, officials with the American Chamber of Commerce in China told Reuters. Many state-owned firms are of “a scale now that they can expand internationally and can win business from American companies and other foreign firms, not only in China but potentially overseas,” said Ted Dean, the group’s chairman. Instead of pressuring China to raise the value of its yuan currency against the dollar, the United States should be going after market access barriers that prevent American companies from competing fairly in Chinese market, Dean said. China, for its own internal reasons, already recognizes it need to revalue the yuan even if it is not moving as quickly as the United States would like, he added. The business group is in Washington to meet with members of Congress and the Obama administration before high-level U.S.-China talks next week on economic and geopolitical concerns. U.S. frustrations over China’s exchange rate policies are expected on the agenda, with Congress threatening once again to pass legislation to force Beijing to revalue. Many U.S. lawmakers accuse China of deliberately undervaluing its currency to give its companies an unfair price advantage in international trade. That’s a dangerous preoccupation because “by focusing on that issue they allow China to get away with a hundred other industrial policies that are probably more disturbing for American business,” said James McGregor, a senior counselor at APCO Worldwide who advises the American Chamber. “It takes the focus off the big picture and looks for a simple answer to a complicated question,” McGregor said. China uses a number of discriminatory policies aimed at promoting domestic innovation that prevent foreign companies from competing on a level playing field against Chinese companies, the industry officials said. With China’s entry into the World Trade Organization nearly a decade ago, “it’s past time for China to return to a policy of opening markets,” said Christian Murck, president of the American Chamber of Commerce in China. “With respect to state-owned enterprises, one of the most things would be for them to join the WTO Government Procurement Agreement.” That pact requires countries to treat foreign suppliers of goods and services for the public sector as favorably as domestic companies and requires laws and regulations related to government procurement be transparent and fair. The United States and China should also finish long-delayed talks on a bilateral investment treaty, he said. A major U.S. government effort to boost the competitiveness of American industry would also help, Murck said. (Reporting by Doug Palmer; Editing by Christopher Wilson) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Video: Morales Says Intel Has `Breakthrough’ Tablet Technology

April 20, 2011

April 20 (Bloomberg) — Christian Morales, head of Europe, Middle East and Africa at Intel Corp., discusses the company’s first-quarter profit and development of technology for tablet devices. He talks with Linzie Janis on Bloomberg Television’s “Countdown.”

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Video: Thwaites Says Budget Impasse Testing Patience of Market

April 8, 2011

April 8 (Bloomberg) — Christian Thwaites, chief executive officer of Sentinel Investments, and Ernest Istook, a former U.S. Representative from Oklahoma, talk about the likely impact of a possible shutdown of the federal government on financial markets. They speak with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Video: ECB’s Noyer Says Bank Capital Must Be Global Priority

March 4, 2011

March 4 (Bloomberg) — Christian Noyer, a European Central Bank Governing Council member, talks about banking regulation, protectionism and the outlook for growth in Europe. He speaks with Bloomberg Television’s David Tweed in Paris.

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The Henry Ford Promotes Christian Overland to Executive Vice President

February 25, 2011

DEARBORN, MI–(Marketwire – February 25, 2011) – Christian Overland, Vice President of Collections and Experience Design for The Henry Ford, was named Executive Vice President, it was announced by Patricia Mooradian, president of the organization. 

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Raising Wages Would Be ‘Stupid,’ Europe’s Trichet Says

February 20, 2011

(Reuters) – European Central Bank President Jean-Claude Trichet warned on Sunday against raising wages in the euro zone as inflationary pressures heat up in the bloc. “It would be the stupidest thing to do,” Trichet told France’s Europe 1 radio, asked about pressure in countries like Germany for wage rises as economies emerge from the economic crisis and as higher commodity prices fan inflation. “We can’t do anything about the current rise in fuel and commodity prices but we must do everything to avoid what we call second-round effects, the fact that other prices start moving and settle at a higher level than complies with our definition (of stability),” Trichet said. “I am thinking of the whole range of other prices, including of course, salaries, and we say to employers and unions: remember that we are in a medium to long-term perspective, to maintain price stability.” Trichet was speaking the day after a Paris meeting of G20 finance ministers and central bankers where inflation was a key topic of discussion. ECB governing council member Christian Noyer commented there that pay demands should be limited. Euro zone inflation stands at 2.4 percent, above the ECB’s 2 percent target, and the ECB has warned that its inflation outlook could move to the upside. Meanwhile German Chancellor Angela Merkel and Economy Minister Rainer Bruederle have called for bigger pay rises for workers in 2011 after unions accepted modest increases in recent years as Germany was battling with recession. Trichet said inflation remained the ECB’s top concern and noted that it was those countries in the euro zone that had kept a lid on costs that had managed to reduce unemployment. The Spanish government, keen to convince markets of its long-term growth prospects, is pushing to de-link wage increases from inflation, something Germany wants to make the rule across the euro zone as part of a new competitiveness pact. (Reporting by Catherine Bremer; editing by Sophie Walker) Copyright 2010 Thomson Reuters. Click for Restrictions .

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Don McNay: A Beginner’s Guide to Stopping Payday Lenders

February 18, 2011

Just like last year and the year before, my home state of Kentucky failed to pass a cap on the interest payday lenders can charge their prey. A bill was proposed to put a 36% cap on the amount of interest that payday lenders could charge. It’s identical to the cap that the federal government put on payday lenders who deal with military personnel and their families. I think payday lending is a scummy business. I suspect many people agree with me. A referendum on capping payday lenders at 28% in Ohio got 63% of the vote. Most states don’t offer ballot initiatives and referendums. They elect legislators and ask them to represent us. Dealing with legislators does not seem to work for people fighting payday lenders. I’ve been rooting for the “good guys” for several years. And I’ve been watching them get clobbered for several years. It’s like watching the Harlem Globetrotters play the Washington Generals in basketball. The victories are few and far between for the Generals. Here is my advice for making something happen. Not just in Kentucky, but in any state: 1. Read Gary Rivlin’s book, Broke USA. Then wait a week and read it again. I reviewed Broke USA for Huffington Post and thought it was one of the most influential books to come out in some time. Rivlin is an incredible storyteller, and the rise of the “poverty industry,” where companies make money off the poorest of the poor, is an incredible story. Rivlin tells us how states like Ohio and North Carolina were able to successfully fight the payday industry. It would be easy for other states to model what they have done. I’ve personally given out over 30 copies of Broke USA, but more need to be purchased. I’m always stunned when someone committed to fighting payday lending tells me that he has never read Broke USA. It’s like a Christian minister preaching even though he or she has never read the Bible. Broke USA is a mandatory read for anyone who wants to fight payday lenders. 2. Embrace the “Great Person Theory.” Larry Diamond, who is now at Stanford, started his teaching career at Vanderbilt. He taught his social movement students, including me, a concept called the “Great Man Theory.” The thrust of that theory espouses is that causes are only successful when they have a central leader, like a Martin Luther King or a Gandhi, to be the focal point. In the days of Twitter and Facebook, it is easier to operate without a “Great Person.” But in fighting payday lending, it would help. Many of the groups fighting payday lending are part of larger coalitions with a litany of other legislative interests. Fighting payday lending is merely one of many issues on their plates. The payday lenders are all-in. It’s life or death for them. They hire the best lobbyists. In Kentucky, they hired former Secretary of State Bob Babbage, the state’s highest paid lobbyist. (Disclosure: Babbage is a former business associate and remains a close friend, despite our extreme differences on payday lending.) Payday lenders have a well-organized, well-financed front and that are going to fight to the death with everything they’ve got. They make lots of contributions to all the right people. Unless a “Great Person” steps up to the lead the other side, it’s going to be hard to defeat them. 3. Find a poster child for the payday industry’s ills. In 1998, I was part of a group that made Kentucky the first state to have model legislation reigning in the companies that purchased structured settlement payments. The bill had Harry Moberly, one of the state’s most effective legislators, as it sponsor. It had the backing of the state’s trial lawyers and bar association. But what really “sealed the deal” was a brave young woman, who had been horribly mistreated by a settlement purchasing company, came forward to tell her story. The day I saw her picture on the front of the Louisville Courier-Journal, I knew the battle was over. She put a human face on a back-burner issue and turned it into a front page issue. The bill passed the legislature unanimously. One of the reasons it was easy for Congress to put a 36% cap on payday lending for military people is that it was easy to imagine a soldier, serving in Iraq or Afghanistan, being taken advantage of. The human victim was present. 4. Show the legislatures you have clout. I’ve yet to see an election lost on the payday lending issue. That needs to happen before elected officials will take the opponents seriously. I can see a scenario where the issue could make or break an election, especially if a legislator got big campaign contributions from payday companies. When people wanting to get rid of payday lending get organized and vote out a couple of payday lending supporters, the rest of the legislatures will take them seriously. And, just maybe, pass this long-needed legislation. Don McNay, CLU, ChFC, MSFS, CSSC of Richmond, Kentucky, is an award-winning columnist, structured settlement consultant and Huffington Post Contributor. He is the author of the book, Son of a Son of a Gambler: Winners, Losers and What to Do When You Win the Lottery. He has appeared on the CBS Evening News With Katie Couric along with numerous other television and radio programs. You can read more about Don at www.donmcnay.com McNay has Master’s Degrees from Vanderbilt and the American College and is in the Hall of Distinguished Alumni of Eastern Kentucky University.

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Rakim Brooks: Obama and the King Who Knelt in the Snow

February 9, 2011

On Monday, President Obama spoke to the Chamber of Commerce, the leading business-interest lobby in the United States. The occasion marked the President’s newest attempt to rally business to solve America’s short and long-term economic problems. Unfortunately, it also served to remind the American people that corporate business, not the American people, control the country’s destiny. Mr. Obama’s presentation was civil, even buoyant, but that did nothing to hide the tension between him and the Chamber. Mr. Obama stood in front of men and women who had fought health care reform viciously, spent millions successfully advertising against Democratic incumbents in the 2010 elections, opposed the Employee Free Choice Act, and who now were refusing to spend billions of dollars being held in reserve. He was well aware that many in the room wanted, to quote Rush Limbaugh his Presidency to fail. Yet, rather than “take on the special interests” as he had promised to do so many times in his 2008 campaign and presidency, he played the political version of Mr. Rogers. “I’m here in the interest of being more neighborly,” Mr. Obama told the Chamber. “Maybe if we would have brought over a fruit cake when I first moved in, we would have gotten off on a better foot. But I’m going to make it up.” His speech underscored his enduring desire to work with US businesses to get America back on the right track: “If there is a reason you don’t believe that this is the time to get off the sidelines — to hire and invest — I want to know about it. I want to fix it.” The President stressed that private business would lead America out of the recession and back to global prominence. And in all of this the U.S. government and the Obama Administration would act as a sidekick. It was disturbing to watch Mr. Obama strain to buddy-up with his political enemies, not because it is likely to prove ineffective, but because it made the leader of the free world seem servile and insignificant. With each half-hearted punch line, Mr. Obama became more and more like the king who knelt in the snow. The scene was Europe at the turn of the first century. Pope Gregory VII had attempted to strip Emperor Henry IV of his sovereign right to appoint the clergymen that served the Holy Roman Empire. When the Emperor resisted and, in a show of ultimate defiance, challenged Gregory’s legitimacy as Holy Pontiff, the Pope excommunicated the Emperor, thus severing him from the Holy Church and all of Christendom. The events that followed were pure political spectacle. After a series of diplomatic scuffles, the Emperor chose to apologize to the Pope. And in the most dramatic display of servility, he marched to meet the Pope in Italy. But when he arrived, the Pope refused to grant him entry. The Emperor, determined to regain favor, then stood in the snow, barefoot, praying for forgiveness. For three days, the Emperor was given no quarter or sustenance. Still, he continued to pray without knowing whether his prayers would be heard; the Pope had previously declared the excommunication irrevocable. On the third day, Pope Gregory relented, and the Emperor was received back into the Christian family. But the point had been made. What came to be known as the Investiture Controversy demonstrated the Papacy’s power to kings throughout Europe and, for centuries, sovereign monarchs cowed before the Pope and the Church. I first heard this story in high school, and I’ve never forgotten it because my adolescent mind could not imagine any Head of State, even of the smallest nation, kneeling before a non-state authority. It just served to remind me how different things were now. No President would ever be caught in such a position, I thought. And then I read President Obama’s speech and could only wonder, “How long has the President been kneeling?” Mr. Obama’s remarks suggest that he might have been in this position for a very long time – we are just now beginning to take notice. But what’s worse is that Mr. Obama’s kneeling reveals that American democracy is imperiled. A democratic nation should be ruled by the many, not the few. Yet, the Chamber of Commerce is attempting to determine the economic, and thus political, fate of our nation. Like religious authorities of the first millennium, business has asserted its dominance over the affairs of sovereign men. What is to be done? The responses of both the political Right and Left have been unimpressive. The political right would have us believe that the President has been hostile to business. If he would only be friendlier to business interests and stop confusing them with unnecessary regulations, the economy would jump-start. But the truth is that President Obama has been more than neighborly, to the tune of $700 billion. He’s promised more in his State of the Union, saying the U.S. would focus on infrastructure and technology spending. All this and the Right still thinks that he’s hostile? They must be taking that fruitcake joke seriously! If the Right thinks Mr. Obama has been too hostile, the Left believes he’s been too friendly. They look at his Cabinet and Staff and hold their noses. His inner circle reeks of Wall Street types and centrists like Larry Summers, Timothy Geithner, and new White House Chief of Staff William Daley. Too much money and too little concern for the disadvantaged, critics shout. Cornel West has gone so far as to pose the most existential of questions to the President: “How deep is your love for poor and working people?” The problem with this question is that it could be turned right around and posed to the American Left. This is not to say that Mr. Obama has not clung to the center, but did he have a choice? After 2008, the legions of young, independent, and African American voters that helped Mr. Obama secure the presidency abandoned the Democrats in the midterm elections. When he needed them most, they didn’t turn up to the ballot box and, thus, we saw Democratic majorities shredded in both the House and the Senate. It’s no surprise then that the President compromised with Republicans on extending tax cuts for the rich. He didn’t have the legislative support to do otherwise. But he did secure unemployment benefits for over 14 million Americans who need them. Is that not love? And, if that’s not enough, let’s remember, if raising one child takes a village, it takes more than one man to raise a nation. In short, the Left would rather chastise President Obama than help him to his feet, while the Right would prefer to ask him to lie down flat on his belly and grovel (as though that would help). None of this serves the interests of the American people. What the Right and Left seem to be missing is that this isn’t about one man. The way the Chamber and corporate business interests approach the President speaks volumes about how they treat each of us. It is no wonder then that, as Mr. Obama is being cowed, millions of Americans are unemployed, millions more are underemployed, and states are either going into the red, forcing their citizens to do without vital services, or both. The Nation’s fate is tied to its President’s, and as long as he is kept kneeling, America will not move forward. Corporate business interests have had a strangle hold on Washington for many decades now. And the President’s kneeling reveals that there is no easy way to break this corporate death grip. One thing is clear, however: It is in our interest – Left, Right and, yes, Tea Party – to form a collective bulwark against the Chamber and its attempts to determine our political futures, to tell the Chamber that a free people will not bend before the will of business as man once bent before the will of God. Because, if we fail to stand together, we’ll all be left with cold (wet) feet.

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BP Resuming Pay Of Dividends Seen As ‘A Slap In The Face’ To Oil Spill Victims

February 2, 2011

NEW ORLEANS — BP’s decision to resume paying dividends rankled Gulf Coast residents Tuesday who saw it as another sign the company wants to move on even though many are still suffering from last year’s massive oil spill. Oil stains linger in marshes along Louisiana’s fragile coast and tens of thousands of victims are waiting for final payments from a $20 billion compensation fund, while a large number of people haven’t received any money at all. The 7 cents per ordinary share payable to BP shareholders March 28, or about $1.25 billion overall, isn’t a lot by BP’s standards – it’s half what the company paid investors for the final quarter of 2009 – but Gulf residents frowned on the idea of going back to business as usual. “BP has so much money that we can’t really fathom it, but BP has to take care of its obligations to us,” said Pass Christian, Miss., shrimper Bobby Barnett. Barnett said London-based BP still owes him compensation, which he has filed for, for damages from a shortened season after the spill halted shrimping in some areas for much of the summer. He’s also worried about the long-term effect on Gulf seafood from the dispersants BP used to break up the oil. “This is a slap in the face to the thousands of victims forced to watch BP line its shareholders’ pockets while they struggle to pay their mortgage and put food on the table,” said James P. Roy, a lead attorney for plaintiffs suing BP and other companies over the disaster. U.S. Sen. Mary Landrieu acknowledges that it’s up to BP to decide when and how much it pays in dividends to its shareholders. But, the Louisiana Democrat said, “I intend to hold them accountable for paying every penny they owe to make businesses and families in Louisiana whole again and to repair the damage the spill did to the state’s coast and our seafood industry.” She is pushing for at least 80 percent of the penalties ultimately charged to BP under the Clean Water Act to be returned to the Gulf Coast for long-term economic and environmental recovery. BP announced in June that it would not pay dividends to shareholders for the rest of 2010 as it sought to get a grip on its huge liabilities from the April 20 rig explosion and oil spill that followed. At the same time, BP agreed to commit $20 billion to a fund to compensate victims of the spill. A schedule of payments to the fund called for BP to make an initial contribution of $3 billion last summer and $2 billion in the fall, followed by $1.25 billion per quarter until the full figure is reached. But as of last week – some seven months after the fund was announced – only $3.54 billion of the fund had been spent, according to BP. The administrator of the fund, Washington lawyer Kenneth Feinberg, is preparing to make final payments to individuals and businesses. Any money left over is expected to be returned to BP. The Associated Press reported Monday that the fund has paid a final settlement to just one of the thousands of people and businesses waiting for checks, and that $10 million payout went to a company after the oil giant intervened on its behalf. As of last weekend, roughly 91,000 people and businesses had filed for final settlements. Thousands have received some money to tide them over until a final settlement amount is offered, but only one business listed as paid on the facility’s website has so far received a check. Billy Nungesser, president of oil-soaked Plaquemines Parish, said he’s not opposed to BP giving a return to its shareholders, but he has a problem with the timing considering the company’s unfinished business to restore the Gulf. Such payments only benefit investors – Roy, Landrieu, Barnett and Nungesser said they don’t own any BP stock. “I feel like they think this is something in the past and they want to close the book on it,” Nungesser said.

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Video: Thwaites Recommends Middleby, Li & Fung, Shandong Weigao

December 29, 2010

Dec. 29 (Bloomberg) — Christian Thwaites, chief executive officer of Sentinel Investments, talks about his investment strategy. Thwaites also discusses the outlook for U.S. bond and stock markets. He speaks with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Video: Thwaites Likes Mortgage-Backed Debt More Than Treasuries

December 3, 2010

Dec. 2 (Bloomberg) — Christian Thwaites, chief executive officer of Sentinel Investments, talks about his investment strategy. He speaks with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Video: Swisscanto’s Takushi Sees Yen Rising to 80 on Kan’s Win

September 14, 2010

Sept. 14 (Bloomberg) — Christian Takushi, fund manager at Swisscanto Asset Management AG, talks about Japan Prime Minister Naoto Kan’s victory in a vote for control of the ruling party. He speaks from Zurich with Maryam Nemazee on Bloomberg Television’s “On The Move.”

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D. Michael Lindsay, Ph.D.: How America’s Evangelical Leaders Wield Power

September 12, 2010

As explained in my book Faith in the Halls of Power , evangelicals are the most discussed but least understood constituency in American public life, especially when we’re talking about evangelicals in power. In a study just published in the Journal of the American Academy of Religion , Brad Smith (of Princeton University) and I identify four types of evangelical leaders, based on how they make decisions at work. The research emerged out of a massive five-year study in which I interviewed face-to-face nearly 400 evangelical leaders of major organizations . These evangelicals, it turns out, are a lot like other leaders. Some are bold and brash; others second-guess themselves or try to keep a low profile. The people I interviewed are CEOs of big companies such as Walmart, ConocoPhillips, Johnson & Johnson, and Pepsico. They include cabinet secretaries and college presidents, heads of major nonprofits and leading figures in the arts. But they all share major characteristics that distinguish evangelical Christians from other people: they have 1) a very high regard for the Bible; 2) a belief in the importance of a born-again religious experience; and 3) a desire to bear witness to others through what they say and how they act. Ninety-three percent of the leaders I interviewed said that their colleagues at work know about their Christian faith, either because they have talked about it directly or because word has gotten around. One of the most direct ways evangelicals in power bear witness to their faith is through workplace decisions. Should the company change its policy on domestic-partner benefits? Does the organization fire a senior manager who slept with his assistant? Do you restrict celebrity endorsement deals to those known for moral behavior? Leaders I interviewed have wrestled in their roles as executives with these and other tough questions. If the media caricature of evangelicals is to be believed, one would expect to find these leaders using their powerful positions to proselytize and to foist their religion on others. But as I logged 300,000 miles conducting these interviews and visiting the organizations led by a diverse group of men and women, I found very few instances of evangelical triumphalism. Of course, a few cases do stand out. One CEO had a large placard hanging over his desk that quoted Mark 8:36. No one meeting with him in his office could ignore the big red letters: “What good is it for a man to gain the whole world, yet forfeit his soul?” Then there was General William G. Boykin who framed the U.S. military’s involvement in Iraq and Afghanistan as a battle against Satan. Yet these were not the norm. Our study found four common decision-making postures among evangelicals in power: pragmatic, heroic, circumspect, and brazen. The categories emerge from the intersection of two important dynamics: how evangelicals express their faith at work and how it is received . To understand how evangelicals handle power, you have to assess not only their direct actions but also what scholars call the organizational “ecology” where those actions take place. Pragmatic evangelicals are religiously subtle, and most work in environments hostile to outright religious expression. This hostility can come from within their organizations or from outside forces, such as the state or wider cultural pressures. Sometimes their colleagues are uncomfortable with faith expressions in business decisions. In other instances, the offense is reflected in company policies (such as scrapping “Merry Christmas” for “Happy Holidays”). Dr. Neil Clark Warren represents this pragmatic style. Warren, the likable psychologist who first became a celebrity in Christian circles for his best-selling book Finding the Love of Your Life , applied his 30 years’ clinical experience and started eHarmony in 2000. In just a few years, the internet-based matchmaking service became wildly successful, and while the firm did not screen its customers on religious terms, evangelical Christians were some of its biggest boosters. Warren and his company faced a difficult decision when a man filed a complaint with the New Jersey attorney general in 2005. He claimed that eHarmony was illegally discriminating against him by not offering a same-sex matchmaking service. Despite howls of protest from evangelicals (such as Dr. James Dobson of Focus on the Family), Warren and his colleagues opted in 2008 to settle with the attorney general and launch a second matchmaking site for same-sex couples, Compatible Partners . Warren, like many evangelical CEOs who lead large businesses in our increasingly pluralistic society, had to make a pragmatic decision. In the end, he determined that this was not, for eHarmony, a hill worth dying on. Some other evangelicals take what we call a “heroic” approach. Right or wrong, their actions are staunchly evangelical, even if it costs them dearly. When Marriott purchased a controlling stake in Ritz-Carlton in the 1990s, Horst Schulze, longtime head of Ritz-Carlton, was strongly urged by his new superiors to provide “adult” programming through in-room entertainment systems in his hotels. He refused. Pressure continued to mount, and eventually, Schulze threatened his bosses: “I’m gonna call a press conference and … say, ‘Now [Ritz-Carlton is] in the pornography business.’” Marriott backed down. “I’m a loose cannon,” said Schulze. “I say what I want.” Other evangelicals in power are much more circumspect. These leaders operate in workplace environments more amenable to faith expressions than do the pragmatics, but they are not as comfortable as heroics are in taking explicit stands. Mike Duke, CEO of Walmart, told me, “Faith is a sensitive topic, [one that has] more meaning after a relationship [between coworkers] has been established. … The best way to demonstrate one’s faith is in how a person treats other people.” When asked about the many challenges he’s received from religious leaders criticizing some of his company’s policies (such as low wages and poor benefits), Duke is clearly circumspect, even when pressed: “I don’t necessarily think that I could say that we’re a Christ-honoring company … but I often say we certainly have been blessed by God.” Some evangelical leaders encounter virtually no resistance to their faith expressions at work. Professional athletics is the example par excellence . NFL quarterback Kurt Warner declared at the end of Super Bowl XXXIV, “First things first . I’ve got to thank my Lord and Savior up above — thank You, Jesus!” And NBA superstar David Robinson would lead his teammates in prayer before every game. Evangelical athletes are able to be brazen about their faith without much pushback from fans, coaches, or owners. Encompassing about one third of all U.S. adults, American evangelicalism is a broad enough tradition that every approach has its fans and critics. What one evangelical may see as selling out, another regards as prudent. And as mentioned above, organizational ecology must always be considered. Brazen faith might well shrivel when an evangelical’s job in on the line. Or circumspect faith might have its heroic moment once a certain company policy starts to hit too close to home for a leader.

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Video: Sentinel’s Thwaites Recommends United Technology: Video

August 26, 2010

Aug. 26 (Bloomberg) — Christian Thwaites, chief executive officer at Sentinel Investments, talks about his investment strategy in United Technology Inc. Thwaites speaks with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Video: Baer’s Gattiker Says `Bond Bubble’ Has Yet to Hit Peak

August 17, 2010

Aug. 18 (Bloomberg) — Christian Gattiker, head of research at Bank Julius Baer & Co., talks about his investment strategy for stocks versus bonds. He speaks from Zurich with Maryam Nemazee on Bloomberg Television’s “Start Up.”

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Gulf Oil Spill Investigation: Companies At Fault Will Be In Charge Of Recovering Evidence

August 6, 2010

NEW ORLEANS (AP) — Now that BP appears to have vanquished its ruptured well, authorities are turning their attention to gathering evidence from what could amount to a crime scene at the bottom of the sea. The wreckage — including the failed blowout preventer and the blackened, twisted remnants of the drilling platform — may be Exhibit A in the effort to establish who is responsible for the biggest peacetime oil spill in history. And the very companies under investigation will be in charge of recovering the evidence. Hundreds of investigators can’t wait to get their hands on evidence. The FBI is conducting a criminal investigation, the Coast Guard is seeking the cause of the blast, and lawyers are pursuing millions of dollars in damages for the families of the 11 workers killed, the dozens injured and the thousands whose livelihoods have been damaged. “The items at the bottom of the sea are a big deal for everybody,” said Stephen Herman, a New Orleans lawyer for injured rig workers and others. BP will surely want a look at the items, particularly if it tries to shift responsibility for the disaster onto other companies, such as Transocean, which owned the oil platform, Halliburton, which supplied the crew that was cementing the well, and Cameron International, maker of the blowout preventer. BP and Transocean — which could face heavy penalties if found to be at fault — have said they will raise some of the wreckage if it can be done without doing more damage to the oil well. That would give the two companies responsibility for gathering up the very evidence that could be used against them. But the federal government has said it simply doesn’t have the know-how and the deep-sea equipment that the drilling industry has. And it said the operation will be closely supervised by the Coast Guard. Lawyers will be watching, too, to make sure the companies don’t do anything untoward, said Brent Coon, an attorney for one of the thousands of plaintiffs seeking damages. “I think they would do something in front of their own mother if they could,” Coon said. “But the reality is there are a lot of eyes watching them and a lot of smart scientists who would know if they did anything they weren’t supposed to.” The crisis in the Gulf appeared to be drawing to a close this week when BP plugged up the top of the blown-out well with mud and then sealed it with cement. BP Senior Vice President Kent Wells said crews plan to resume drilling Sunday night on a relief well more than two miles below the seafloor that will be used to inject mud and cement just above the source of the oil, thereby sealing off the well from the bottom, too. The two wells should hook up between Aug. 13 and Aug. 15, Wells said. In other developments Friday, BP said it might drill again someday into the same undersea reservoir of oil, which is still believed to hold nearly $4 billion worth of crude. That prospect is unlikely to sit well with Gulf Coast residents furious at the oil giant. “There’s lots of oil and gas here,” Chief Operating Officer Doug Suttles said. “We’re going to have to think about what to do with that at some point.” Also Friday, BP said Suttles — who has spent more than three months managing BP’s response efforts on the Gulf — is returning to his day job in Houston. Mike Utsler, a vice president who has been running BP’s command post in Houma, La., since April, will replace him. Willie Davis, a 41-year-old harbormaster in Pass Christian, Miss., said he fears his area will be forgotten if BP pulls out too soon. “I’m losing trust in the whole system,” he said. “If they don’t get up off their behinds and do something now, it’s going to be years before we’re back whole again.” Utsler told Gulf residents not to worry, saying the spill’s effects are “a challenge that we continue to recognize with more than 20,000-plus people continuing to work.” Investigations of the disaster began immediately after the rig blew up on April 20. The government alone is conducting about a dozen, including several congressional investigations, criminal and civil probes by the Justice Department, and an examination by an expert panel convened by President Barack Obama. Officials want to find out not only the cause of the explosion, but also how oil drilling a mile or more below the surface can be made safer. A final outcome could be years away, particularly if someone is charged with a crime, said David Uhlmann, former chief of the Justice Department’s environmental crimes team. “Normally an investigation of a case this complicated would take two to three years. This is not a normal case,” he said. “This is the worst environmental disaster in U.S. history.” Any items brought up from the seafloor will be photographed and preserved. Investigators for the government, BP and others who have a stake in the case will try to come up with testing procedures acceptable to all sides. The blowout preventer will probably make it to the surface. The 300-ton mechanism is designed to be placed on a well and brought back to the surface for reuse. It was supposed to be the final line of defense against a catastrophic spill, but BP documents obtained by a congressional committee showed the device had a significant hydraulic leak and a dead or low battery. “That piece of equipment will tell us whether the blowout preventer had a design defect or whether it was mechanical or human error that caused this disaster,” Herman said. The blowout preventer is still attached to the broken wellhead but will be replaced as part of the effort to permanently secure the well, said retired Coast Guard Adm. Thad Allen, who is overseeing the spill response for the government. “In some ways it’s the smoking gun,” said Eric Smith, associate director of the Tulane Energy Institute. “It’s rich evidence. It still won’t tell you exactly what happened at the bottom of the well … but the fact is it didn’t work — and everybody wants to know why.” Coon said the rig might contain “black boxes” that recorded critical data and control panels that could be removed to re-create conditions before the explosion. Transocean has asked the government for permission to test the blowout preventer and hopes to see it raised it in September, company President Steven Newman said. Getting to the exploded rig itself might be harder. It would be impractical to raise the entire structure because of its immensity, twice the size of a football field, Coast Guard Rear Adm. Paul Zukunft said. He would not say whether it would be possible to cut off vital pieces of the structure.

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Video: Swisscanto’s Takushi Says `Time Running Out’ for Sony

July 29, 2010

July 29 (Bloomberg) — Christian Takushi, a fund manager at Swisscanto Asset Management AG, talks about Sony Corp.’s first-quarter profit and the performance of Chief Executive Officer Howard Stringer. Takushi, speaking from Zurich, also discusses Nintendo Co.’s first quarterly loss in more than two years. He speaks with Andrea Catherwood on Bloomberg Television’s “The Pulse.”

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Video: Sentinel’s Thwaites Discusses U.S. Equities, Earnings: Video

July 22, 2010

July 22 (Bloomberg) — Christian Thwaites, chief executive officer at Sentinel Investments, discusses the outlook for the U.S. stock market. (This report is an excerpt. Source: Bloomberg)

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