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On Friday, Mayor Ed Lee announced that Salesforce — a global enterprise software company — signed a lease with the City worth nearly $340,000 for 400,000-square-feet of office space on 50 Fremont Street in downtown San Francisco. The agreement marks the biggest long-term lease in the City in a decade. “Salesforce.com’s decision to continue their expansion in San Francisco is positive proof that our City and its workforce are perfect for growing technology and innovation companies,” said Mayor Lee in a statement . “I look forward to watching Salesforce.com’s continued success as we work together to continue to create jobs right here in San Francisco.” (SCROLL DOWN FOR PHOTOS) The new building at 50 Fremont St. is estimated to create space for about 2,000 employees, infusing much-needed jobs into San Francisco. Mayor Lee, who has pushed to expand San Francisco’s business presence with his Start Here, Grow Here, Stay Here campaign, expressed palpable excitement over the lease. Friday’s announcement came as the latest development in Salesforce’s massive expansion plan that now includes campuses in San Mateo, downtown San Francisco and Mission Bay. (Surely soon to be known as the business plan that ate San Francisco.) Though the acquisition of 50 Fremont St. will be a major move for Salesforce, the most impressive details of the company’s expansion plan are at the Mission Bay campus — Salesforce’s Global Headquarters. The 14-acre property (right near the ballpark) is set to include four separate buildings with two million square-feet of offices, retail spaces, plazas, restaurants, childcare, parking and an enormous outdoor television screen to broadcast public programming. Unlike other business campuses, the Salesforce headquarters will be open to the neighborhood, allowing residents to access the businesses, public space and childcare, supplying a major source of revenue for the area. Though the designs are not finalized, architecture firm Legorreta and Legorreta has released the initial plans for the Mission Bay campus. Check them out in our slideshow below:

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PHOTOS: Salesforce’s Massive New Expansion Plans Revealed

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Big Year Awaits In Atlantic City

by AP on January 1, 2012

Huffington Post…

ATLANTIC CITY, N.J. — You know that all-in moment, when you push most of your pile of chips out onto the table, and wait to see where the little white ball lands, or which card flips from the deck, to know whether you’re a winner or a big loser? 2012 is looking a lot like that for Atlantic City. Pummeled by a five-year losing streak brought on by unrelenting competition from casinos in neighboring states and worsened by the sluggish economy, Atlantic City is anxious for the new year to arrive, and with it, the $2.4 billion Revel casino-hotel that should bring new gamblers and new money to the resort. Hard Rock International expects to break ground for its own new smaller “boutique” casino at the opposite end of the Boardwalk, and this will be the first full year that Gov. Chris Christie’s Atlantic City rescue plan – including state supervision of safety, cleanliness and planning in the casino and shopping zones – will be in place. Yet pitfalls lurk as well: the ramping up of New York City’s Aqueduct casino, the continuing financial fragility of the casino formerly known as the Atlantic City Hilton, which has only committed to stay in business through Halloween, and the almost inevitable psychological blow of Pennsylvania passing Atlantic City to become the nation’s second-largest gambling resort in terms of revenues, which should happen sometime in 2012. “It’s a crucial year,” said Tony Rodio, president of the Tropicana Casino and Resort. “I think it’s the beginning of a turnaround; I really do.” The opening of Revel, set for May 15 but likely to happen sooner than that, will be the best thing that has happened to Atlantic City since the Borgata Hotel Casino & Spa opened in 2003. The resort will likely be Atlantic City’s last huge casino-hotel for quite some time. CEO Kevin DeSanctis said Atlantic City should not look at his project as the savior of the city – though that’s exactly how many are viewing it. “Revel is not a silver bullet. That’s never what we set out to be, or frankly, what we are now,” he said. “Revel is another tool in the toolbox for Atlantic City to be successful. We’re adding product to a market that desperately needs it. This market needs to re-establish itself as a regional destination. We will give people another reason to give Atlantic City another try. “I hear people say, `I don’t go to Atlantic City; I go to the Borgata,’ ” DeSanctis said. “That’s clearly a problem. When we open, it will help expand that to `Borgata and Revel.’ As other folks put a little more capital investment into their properties, that will have a positive effect.” Christie wants that to happen, too, and he thinks many casinos will be forced to follow Revel’s lead. “It is an extraordinary facility and it is going to draw tens of thousands of people to Atlantic City just to see it,” the governor said. “And when they do get there, I hope what they’re going to find is a cleaner, a safer Atlantic City. I’m anticipating 2012 to be a comeback year for Atlantic City. “Now it has been on the decline for years so we are not going to come back entirely in 2012, so let’s set appropriate expectations here,” Christie said. “But I think you should start to see a turnaround.” Revel will add 5,000 full-time jobs to a market desperate for them, and has put thousands of construction workers to work at a time when little else was being built. The casino-hotel also plans to make an aggressive play for conventions and group meetings, and will have a 5,000-seat concert hall capable of attracting the biggest names in entertainment. A big question leading up to Revel’s opening has been whether the mega-resort will bring new business to Atlantic City, or merely siphon it off from existing casinos who can ill afford to lose any customers. DeSanctis expects some combination of the two to occur. Michael Pollock, managing director of Spectrum Gaming Group, an Atlantic City-area casino consulting firm, said it would not be surprising to see one or two casinos have to close in 2012 due to the cutthroat competition in the industry amid a still-weak economy. ACH, the casino formerly known as the Atlantic City Hilton, appears to be on the shakiest ground. In November, state regulators approved a plan for the casino to stay open with a fresh infusion of capital from its owners, Los Angeles hedge fund Colony Capital LLC, and a cancellation of its debt. But the casino has committed to staying open only through the end of October, and it’s going after the smallest of small fish in a market that prizes whales. It recently got permission to use table game gambling chips worth as little as 25 cents – the first time Atlantic City has let any casino use a chip worth less than $1. Resorts Casino Hotel also has yet to turn a profit in the first year of new ownership, although it expects to at least break even by the end of 2012. Atlantic City’s casino revenue peaked in 2006 at $5.2 billion; it has since fallen to $3.6 billion at the end of 2010, mostly due to casinos opening in neighboring Pennsylvania and New York, and the poor economy. Many expect revenues for 2011 to be in the range of $3.2 billion. Atlantic City desperately needs new money, Pollock says. “The spigot had been turned off on new capital investment and it’s crucial that that spigot get turned back on again,” he said. “Atlantic City was on its way toward reinventing itself with a new business model” when the bottom fell out of the economy. The Seminole Indians, through their Hard Rock franchise, say they are ready to do just that. They plan to break ground by July 15 on Atlantic City’s first so-called “boutique casino,” a smaller, less expensive gambling hall authorized under a pilot program to jump-start the stagnant casino market here. The first phase of the project, with 208 hotel rooms. will cost about $465 million, and eventually grow to 850 rooms. New Jersey’s state government adopted a number of reforms for Atlantic City in 2011 that will have the chance to bear fruit in 2012. It beefed up the Casino Reinvestment Development Authority and put it in charge of revitalizing the resort, including making sure its streets are clean and safe. But the reform likely to have the most immediate impact is the formation of the Atlantic City Alliance, a private casino-financed nonprofit corporation that will spend $30 million a year for the next five years to promote Atlantic City to the rest of the world. That’s money the casinos were required to pony up to the state’s racetracks in return for keeping slot machines out of racetracks, until Christie intervened and killed the arrangement, much to the delight of the casinos. “What did Revel do in its first year, and what did we do with the $30 million we suddenly had at our disposal to market Atlantic City?” said Rodio, the Tropicana president. “That’s what we’ll be debating next New Year’s Eve.” ___ Associated Press writer Beth DeFalco in Trenton contributed to this report. ___

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Big Year Awaits In Atlantic City

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N.Y. Building Cleaners Poised to Strike

December 28, 2011

Workers who clean more than 1,500 buildings in New York — including iconic facilities such as the Empire State Building, Rockefeller Center and the Time Warner Building — could walk off their jobs and form picket lines as early as Sunday. Contract negotiations are scheduled to end Thursday between the owners of some of the city’s biggest buildings and Service Employees International Union Local 32BJ, a union that represents about 22,000 building cleaners in New York. The union’s contract with building owners expires Saturday, Dec. 31, at midnight. The two sides have been unable to agree on a series of issues related to pay. Building owners say that New York’s unionized building cleaners are the best paid in the nation, earning on average nearly $50,000 in wages and about $25,000 in benefits. An SEIU television commercial airing in the New York area indicates that building cleaners earn about $47,000 a year on average. Building owners also want the union to agree to a two-tier wage system in which new hires would be paid on a different scale. Over time, the lower wage scale would reduce building owners’ labor costs. The United Auto Workers union, long regarded as the nation’s most powerful organized labor group, agreed to a similar two-tier wage scale in 2009, as automakers struggled to compete with foreign automakers and wrestled with the possibility of bankruptcy. A federal government bailout and worker concessions helped to shore up the nation’s top three automakers and, the companies said, and saved about 3 million jobs. Since that time, the system has saved automakers millions, but has also left many auto workers in dire economic straits and bred deep resentments between the union and workers who are paid on the lower tier. In New York, round-the-clock talks between the union and building owners started last Wednesday, the Associated Press reported this week. Building owners say they are grappling with increased vacancy rates and falling rents and cannot afford to continue to pay workers at the same rate. Union officials dispute the owners’ claims that the industry is facing across-the-board distress. New York City also has one of the nation’s highest costs of living. In 2010, a family of two needed to bring in between $54,536 to live in lower-cost Queens and $78,476 to live in lower Manhattan and cover all of its own basic needs including food, shelter and health care, according to an annual measure released by The New York Self-Sufficiency Standard Steering Committee in June . (See Appendix C for additional family types and areas.) The committee is comprised of economic research organizations and agencies that advocate for poor and low-income families. It has been more than a decade since building cleaners last walked off the job over work conditions or pay, WNYC- FM, a New York NPR affiliate, reported Tuesday . The impact of a strike on normal business operations is unclear. The managers of Rockefeller Center and the Empire State Building did not respond to requests for comment late Wednesday. Building owners are preparing for the strike by ordering up needed repairs, making arrangements for workers to handle the duties of security desk attendants and building porters and requesting extra fuel deliveries, as a variety of building staff are also expected to walk off the job in support of the strike, should one occur, the Associated Press reported. Union officials have denied such plans. Many essential business services and functions could be disrupted if a strike occurs, said Matthew Nerzig, a spokesman for SEUI Local BJ32. UPS drivers may refuse to cross a picket line to deliver packages, he said. And sanitation workers may be unwilling to pick up a building’s trash. Some of the buildings that could soon be surrounded by picket lines are not only spaces in which people work and eat, but major tourist attractions. Rockefeller Center houses both NBC News and shows that are taped in front of a live studio audience such as “Saturday Night Live.” The Empire State Building attracted about 4 million visitors, who together payed about $60 million to see the city from the building’s observation tower last year, the New York Times reported Sunday . SEIU Local 32BJ represents more than 120,000 building cleaners, security guards, doormen, porters, maintenance workers, food service workers, window cleaners, bus drivers and their aids in eight states and Washington, D.C. These employees work in public and private facilities, office buildings, schools, theaters, museums, arenas and stadiums.

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Rocky Road: Food Trucks Clash With Downtown Businesses

December 21, 2011

This article comes to us courtesy of SF Weekly . By Jonathan Kauffman When Anamika Khanna and Tim Volkema, two of Kasa Indian Eatery’s owners, learned that the Department of Public Works would start taking applications for food-truck permits on Mar. 7, 2011, they camped outside the office for three rainy nights, joining other food-truck owners eager to claim prime locations. Khanna and Volkema had spent weeks scouting locations for their two unbuilt trucks, and they had specific criteria. “We wanted to not block a storefront, not be near an Indian restaurant, and to observe all the rules around sidewalks and parking places,” Khanna said. Most of the spots they chose were in the Financial District, where they could park for a few hours in a busy area, sell lunch, and leave. They filed their permit applications and paid to send notification letters to all businesses within 300 feet of each site. Soon after, Moneshpal Josan, owner of a Subway and a 7-Eleven on Drumm Street, received his notification that Kasa was applying for spots at 50 California and 61 Beale, both close to his shops. He immediately filed a protest, as did several other restaurant owners and FiDi property managers. At the April 2011 hearing, the DPW granted six of the eight locations Kasa had applied for, including 50 California and 61 Beale. Meanwhile, Josan had received notice of four more permit applications, including a coffee-and-pastry truck applying to park directly in front of his 7-Eleven. “This guy wants to block my front view and steal my customers off the sidewalk, and the city has allowed him to apply,” he fumes. Downtown businesses have decided to fight back en masse against the trucks. An informal coalition of lawyered-up restaurateurs and property managers filed nine separate appeals against Kasa’s two FiDi spots, as well as four more appeals against two nearby spots the city had awarded to Doc’s of the Bay, a hamburger truck. An acrimonious showdown took place Wednesday, Dec. 14, at the Board of Appeals, ending in defeat for both food trucks, despite their having followed the DPW process to the letter. The hearing, a de facto town hall on the validity of the city’s new food truck ordinance, demonstrated the fear that downtown businesses are feeling about the food truck scene — and the considerable flaws in the new ordinance as it has been crafted. With dozens more trucks applying to park on the same blocks, the board’s decision last week may determine the future of food trucks downtown. Before Mar. 7, 2011, a food truck owner wanting to park on the street needed to apply to the Police Department for a permit to park at up to five specific spots. The process was expensive — $9,300 for the initial fee — but straightforward, and did not include public input. In late 2010, then-Supervisor Bevan Dufty, seeking to help out the exploding food truck movement, worked with numerous groups to streamline the permitting process, reduce fees, and move it under the aegis of the DPW. The Board of Supervisors unanimously passed the new ordinance in December 2010. Instead of fostering the food truck scene, the Dec. 14 hearing showed that the supervisors may have made it harder — and ultimately more expensive — for trucks to park on the street. Especially downtown. The two spots Khanna and Volkema selected are blocks of tall buildings, with few street-front businesses and no trucks to date. Most of the existing restaurants serve similar food. “There is an oversaturation of one type of food: sandwiches, soups, and salad,” Khanna says — nothing like Kasa’s kati rolls and curry rice plates. The parking places are one-hour metered spots, some in yellow zones, but that didn’t seem to be a problem to Kasa’s owners — dozens of long-permitted food trucks park in identical spaces. Another nonissue, they thought: the Health Department’s requirement to secure an agreement from an existing business to let Kasa’s employees use the bathroom. Kasa paid $5,000 for the permit that was subsequently contested. It named four locations, one of which the DPW rejected before the first hearing. After the hearing, Khanna and Volkema now only have one approved Mission Bay location left on the permit. If they decide to move or change hours when their year is up, they’ll have to repeat the entire process. While Khanna and Volkema assumed they were bringing something new to office workers, downtown restaurateurs saw the Kasa truck as a direct competitor — one whose operating costs were far below their own. “Downtown restaurants’ rent is $9,000-$15,000 a year, and most are quick-service restaurants,” says Alex Aguilar, owner of Orale Orale, two blocks away from 50 California. Kasa may only have been applying to park near him a few hours a day, but those were the hours when Orale Orale does the bulk of its business. Another group anxious to block downtown food trucks are real estate management firms representing building owners and restaurant tenants. They’re convinced that the onslaught of food trucks is going to drive down rents and, ultimately, the value of commercial real estate. The managers have gained the support of the powerful Building Owners and Managers Association (BOMA), whose San Francisco director of government and public affairs, Ken Cleaveland, came to the hearing to speak in favor of the appellants. “The new legislation was supposed to bring life and vitality to parts of the city that didn’t have established food vendors,” he told the SF Weekly in a telephone interview. “I completely concur with that. But the mobile food facilities have descended on downtown with an overwhelming number of permits.” The DPW says 89 applications have been received since Mar. 7, and each one can include up to seven locations; roughly half cite spots in the FiDi. Only 15 of the first batch of permits have been granted, eight of them for downtown sites. With many more applications in the pipeline and energized opposition, there will be many more hearings like last week’s. The Board of Appeals upheld the appeals based on several technicalities, including a bathroom agreement form that Kasa hadn’t had signed. But board members universally condemned the new food-truck legislation for its vague language and potential for economic harm. While the battles heat up in city hearing rooms and along gossip grapevines, Supervisor Scott Wiener, who has taken on Bevan Dufty’s oversight of the food-truck ordinance, has organized a working group to address some of the challenges and gaps in the new legislation. BOMA is involved in the group, which has met once so far, as are the Golden Gate Restaurant Association, and Matt Cohen, founder of Off the Grid. Being discussed, members say, are critical questions like “Should there be a density cap on food trucks downtown?” and “What should we do about metered parking spots?” Then there’s the quandry of what constitutes fair competition: Are Kasa’s kati rolls distinct from ham sandwiches, or should both be considered takeaway food? Khanna and Volkema say that though they are disappointed in the outcome, they remain “resilient and respectful.” Subway owner Josan, meanwhile, is angry at the city for all the time and money he’s losing fighting off the new trucks. “The city administration has handled this very callously,” he says. “Very irresponsible. That’s harsh, but I’ll use that term.” For more news from around town, follow SF Weekly on Twitter .

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Why Finance Shouldn’t Be New York’s One-Trick Pony

December 21, 2011

Every December, New York’s salespeople dust off the Chateau Petrus and the Mercedes-Benz AMG Roadsters in the hope that St. Nicholas, erstwhile patron saint of the city, will drop big bonus checks into the stockings of local financiers. This year, the jolly old elf doesn’t seem to be spreading his largesse too widely on Wall Street. Yet the city as a whole seems to be weathering the financial decline better than one might have expected, and with luck, New York will emerge from this downturn as a more economically balanced city.

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Laura Kiss: Professor Monti, It Could Be Better for Italy

December 6, 2011

Professor Monti is a smart, prepared, well educated and charming Italian man. Nothing in comparison with what Italians have had to suffer with Berlusconi for the past 17 years. He is one of the best economic brains of Europe and has adopted a very appreciated low profile in running the country. So low that he announced to Italians that, as a personal decision, he is renouncing his salary as Prime Minister and Minister for the Economy. Being so smart, he is also very aware that his government is a technical one and has to look for the approval of the parliament in order to survive. And, as we know, the Italian parliament is not an easy entity with which to deal. In recent days, in order to try to save Italy from default, Professor Monti has tried to assure Italians with three key words: recovery, equity and growth. We had hoped that “equity” would be kept in first place in his financial mesaures contained in the austerity package, but as it has been presented, people have noticed that equity has been left far behind. It is true, all categories of Italians are effected by these measures. The country is so destroyed after Berlusconi that we are all aware that we have lived beyond our means and that something has to be changed. But, excuse me Professor, some distinguo would not hurt. If I have a pension of 1.000 euros a month, or if I have 5.000 euros a month makes a big difference. Not to mention the new law that reintroduces the tax on properties: all houses, no matter if you own 1 or 50, will be taxed. Correct, but what about the Vatican that owns the most valuable properties in this country? Does Professor Monti know that religiouse buildings, convents, institutes, residences are very often being transformed into hotels? That religious orders run regular commercial activities related to tourism and that the revenues of religious tourism are a big part of the Vatican State GDP? And what about the costs of the political system in a country that is facing the worst financial crisis since the second world war? The austerity package makes mention only of the life annuity of parlamentarians (millions of euros every year) which will be a subject for discussion in the next legislature. The number of the councillors at the provincial government level will decrease but not one word about the number of parlamentarians (the second highest in Europe after UK, 951 in Italy, 1477 in UK), or the cost of their salaries and benefits. We know, Professor Monti, that your job is really difficult and we understand that you have to find a decent compromise in order to obtain the parliament vote of confidence. And we also know that the time has expired for Italy if we don’t want to face further recession. But please, for the future of this country, try to be more fair and give us a stronger sign of social justice.

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DOWNTOWN THROWDOWN: Unhappy Neighbor Serves SFMOMA An Appeal

December 5, 2011

While the SFMOMA has been giddily releasing plans about the $500 million expansion project, a potentially party-ruining battle has been brewing with an unhappy neighbor: The W Hotel. As The Huffington Post reported earlier , the hotel spoke out against the museum when the Planning Commission reviewed the expansion’s environmental impact report, but the commission waved the complaint aside. And now the hotel is playing hardball. According to SFGate , the hotel filed an appeal of the environmental impact report, claiming that the museum failed to mention how the plan will affect the flow of traffic in the area. The appeal claims that the hotel will be adversely affected by “the project’s closure of the mid-block area that the W Hotel relies upon for loading/unloading and valet activities,” according to SFGate . “These activities will be moved onto Third Street, Howard and New Montgomery, exacerbating an already congested area.” Anyone familiar with the unbelievable traffic headache that is the Third Street/Howard Street/New Montgomery block can probably understand the W’s gripe. (Have you tried to make a left on Howard lately?) But with unrelenting support of the SFMOMA expansion from both the public and the City, the hotel is painted as a bit of a poor sport in the situation. “They’re going to look out and see a great museum,” said Snohetta’s Craig Dykers to SFGate . “When you live in a city, these things happen. And that’s what makes a city great.” The announcement of the appeal came just days after Snohetta, the firm designing the expansion, released a fresh batch of renderings, a video and details about the plans for the new interior. Check out plans for SFMOMA’s expansion in the video and slideshow below:

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Police Reportedly Went Undercover At Occupy LA Encampment Prior To Raid

December 3, 2011

The Associated Press LOS ANGELES (AP) — Los Angeles police used nearly a dozen undercover detectives to infiltrate the Occupy LA encampment before this week’s raid to gather information on protesters’ intentions, according to media reports Friday. (CLICK HERE OR SCROLL DOWN FOR LATEST UPDATES) None of the officers slept at the camp, but tried to blend in during the weeks leading up to the raid to learn about plans to resist or use weapons against police, a police source told the Los Angeles Times. The source spoke on the condition of anonymity because the case is ongoing. The undercover work yielded information that some protesters were preparing bamboo spears and other potentially dangerous weapons in advance of an expected eviction by the LAPD, none of which were used, according to City News Service which first reported the story. Police downplayed the significance of the undercover work since Occupy meetings were public and easily tracked. LAPD Officer Cleon Joseph declined an Associated Press request for comment on the reports. Occupy L.A. protester Mario Brito told City News Service he was not surprised by the revelation, but said it was “tantamount to 1950s McCarthyism.” Meanwhile, the city attorney’s office filed criminal misdemeanor charges Friday against 27 more of the people who were arrested following the police sweep of the camp. In all, 46 of the 291 people arrested during the raid have been charged with misdemeanor crimes of failure to disperse from an unlawful assembly. Some also were charged with resisting arrest. The arrests came Wednesday during a pre-dawn raid on City Hall Park, where nearly 500 tents had been erected at the peak of an anti-Wall Street protest, City Attorney Carmen Trutanich said. Fifty-eight posted bail or were released by police, Criminal Division Chief Earl Thomas told City News Service. An additional 187 protesters were released without bail and without being charged, because they had no prior criminal records. Bail amounts ranged from $5,000 for most of the defendants to as high as $20,000.

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Occupy LA Remains Defiant Ahead Of Deadline To Vacate

November 27, 2011

By ANDREW DALTON, Associated Press LOS ANGELES — Despite a fast-approaching deadline set by the mayor and police chief, very few of the anti-Wall Street protesters from Occupy Los Angeles had begun breaking down their tents Saturday on the City Hall lawn – and most said they didn’t intend to. The Occupy LA encampment was abuzz with activity, but nearly all of it was aimed at how to deal with authorities come Monday’s 12:01 a.m. deadline. (CLICK HERE FOR LIVE UPDATES) Some handed out signs mocked up to look like the city’s notices to vacate, advertising a Monday morning “eviction block party.” Dozens attended a teach-in on resistance tactics, including how stay safe in the face of rubber bullets, tear gas canisters and pepper spray. Mayor Antonio Villaraigosa announced Friday that despite his sympathy for the protesters’ cause, it was time for the camp of nearly 500 tents to leave for the sake of public health and safety. The mayor said the movement is at a “crossroads,” and it must “move from holding a particular patch of park to spreading the message of economic justice.” But occupiers did not intend to give up their patch of park too easily. Will Picard, who sat Saturday in a tent amid his artwork with a “notice of eviction” sign posted outside, said the main organizers and most occupiers he knows intend to stay. “Their plan is to resist the closure of this encampment and if that means getting arrested so be it,” Picard said. “I think they just want to make the police tear it down rather than tear it down themselves.” But some agreed with the mayor that the protest had run its course. “I’m going,” said Luke Hagerman, who sat looking sad and resigned in the tent he’s stayed in for a month. “I wish we could have got more done.” Villaraigosa expressed pride that Los Angeles has lacked the tension, confrontation and violence seen at similar protests in other cities. But that peace was likely to get its biggest test on Monday. Police gave few specifics about what tactics they would use for those who had no intention of leaving. Chief Charlie Beck said at Friday’s news conference that officers would definitely not be sweeping through the camp and arresting everyone just after midnight. But in an interview with the Los Angeles Times on Sunday, Beck said that despite the lack of confrontations in the camp’s two-month run, he was realistic about what must happen. “I have no illusions that everybody is going to leave,” Beck said in an interview with the Times. “We anticipate that we will have to make arrests.” But he added, “We certainly will not be the first ones to apply force.” Ue Daniels, 21, said as an artist he’s “as nonviolent as they come” but he planned on resisting removal any way he could. “I think we’ll comply as far as putting our tents on the sidewalk maybe, that’s something that’s been going around.” But as far as leaving altogether? “They would probably have to drag me away,” he said. He also suspected that though the general consensus among campers is to stay, he expects many will change their mind once police arrive. “I don’t know who’s going to stay, you can say something, but you never know until you’re in the situation how you’re going to react.”

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Pennsylvania Capital’s Bankruptcy Filing Rejected By Federal Judge

November 23, 2011

HARRISBURG, Pa. — A federal bankruptcy judge on Wednesday dismissed the petition by the City Council of Pennsylvania’s debt-choked capital of Harrisburg, saying it had been legally barred by state law from seeking bankruptcy protection and, in any case, had no authority to file it. Federal bankruptcy Judge Mary D. France issued the ruling after hearing more than two hours of arguments by lawyers as to whether the bankruptcy petition, filed last month by a divided City Council, satisfied various legal issues and could move forward despite the objections of the city’s mayor, Pennsylvania Gov. Tom Corbett, Dauphin County, bond insurers and others. A City Council member said the group will decide whether or not to appeal. In the meantime, the Corbett administration is moving to take over many of the city’s financial operations in a bid to force it to pay down about $300 million in debt tied to the city’s ill-starred trash incinerator. “The fight from our view is far from over,” said Neil Grover, a lawyer who co-founded the taxpayers’ group Debt Watch Harrisburg and argued in support of the bankruptcy petition. “This is the kind of issue that goes to the Supreme Court.” If Harrisburg is forced to pay down the entire debt, the cash-poor city will be just a shell, he said. The City Council voted last month to file the Chapter 9 petition in a bid to thwart the state takeover and force concessions from creditors. Mayor Linda Thompson, who had opposed the filing, and City Council had been unable to come up with a debt repayment plan, sparking an unprecedented takeover by state government as the city fell tens of millions of dollars behind on debt payments and lawsuits piled up. France early in Wednesday’s hearing dismissed many of the arguments made by a lawyer for City Council, but focused debate on two key areas. While admitting that she typically doesn’t consider matters of state and constitutional law, France had questioned Wednesday whether a four-month-old state law designed to temporarily prohibit a bankruptcy filing by Harrisburg had met state constitutional standards that demand transparency in the passage of legislation. In the end, she said it did. She also questioned whether a divided Harrisburg City Council indeed had the authority to go over the mayor’s head and file for bankruptcy. After the arguments, she said it didn’t. The Susquehanna River city of 50,000 is saddled with about $300 million in debt tied to its nearly 40-year-old trash incinerator. Beset by environmental problems and fines for years, U.S. Environmental Protection Agency shut it down in 2003 with about $100 million in debt already piled on it, some of which had gone to finance other city projects. Faced with the decision to abandon it and clean up the site, or finance an overhaul, City Council voted for the latter in hopes that it would one day emerge as a profitable investment. But the renovation went awry, and ended up being far more expensive. Meanwhile, Harrisburg city residents now pay among the highest trash-disposal rates in the nation, while the facility can’t generate nearly enough money to pay the debt.

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With Film Incentive Capped, Michigan’s Movie Jobs Face An Uncertain Future

November 18, 2011

Sean Doerr knows Detroit. He’s been poking around the city since he was 14, exploring its forgotten buildings and learning the names of architects long gone. Now 21 and a senior at the College for Creative Studies, he’s seen Detroit’s parks, its factories, its greasy spoons and everything in between. In the last couple years, Doerr has picked up some part-time work as a location scout for movie producers. The work suited someone with Doerr’s knowledge of the city, and the timing was right, because in 2008, Michigan’s film industry began to boom. “You could definitely tell the city was more vibrant, because there were film crews everywhere,” Doerr said in an interview. “It really seemed to inspire a lot of people.” The film crews were in town thanks to Michigan’s original film incentive program, launched in 2008 under former Democratic Gov. Jennifer Granholm. It was the most generous such program in the country — the state was providing a rebate of up to 42 percent of a production’s expenditures. Soon, television and movie studios were flocking to Michigan. No one expected filmmaking to replace the hollowed-out auto industry or bring the state up to full employment, but at the outset, at least, the movie business seemed to gesture toward two of Michigan’s biggest labor-market concerns: how to keep the young creative class from leaving the state and how to keep members of the large industrial workforce employed. But the momentum didn’t last long. In October of this year, the new state budget capped the film incentive at $25 million a year — a sharp drop-off from 2010, when there was no cap and the state approved $115 million in rebates. With less money to go around, studios are now taking their big-budget pictures elsewhere. “It just instantly deflated,” said David London, president of Parliament Studios, a Michigan video production company founded in 2009. “A lot of people who had kind of pinned their hopes on this industry were just left out to dry.” ‘AN INCREDIBLE TRICKLE-DOWN BOOM’ Blame for the reduction of the film incentive is usually laid at the feet of Republican Gov. Rick Snyder, who succeeded Granholm in January. Snyder could not be reached for comment for this article. But he has said that he views the tax credits as a form of “picking winners and losers” among industries, which he has called an inappropriate role for government to play. Soon after taking office, Snyder began arguing that the percentage-based film incentive was leading the state to give back more in rebates than it was taking in. A study released in 2010 by the state Senate Fiscal Agency seemed to bear this out, concluding that Michigan was getting back only 17.5 cents in taxes for every dollar it spent on studio incentives . But advocates for the incentive program, including people employed in Michigan’s entertainment infrastructure, say the SFA’s narrow focus on tax dollars missed the true business benefits accruing elsewhere. For one, service industries, including hotels, restaurants and car rental facilities, were getting more customers thanks to the influx of filmmakers. In 2008 and 2009, one study found, film crews booked almost 50,000 hotel rooms in metro Detroit and introduced a combined $10 million in revenue and food and beverage spending . Meanwhile, jobs were popping up for Michigan residents, supporters say. Sets needed to be built, lights rigged, makeup applied. There was work for painters, carpenters, electricians, stylists, location scouts and actors — or anyone interested in becoming one of the above. “The film industry in Michigan was causing an incredible trickle-down boom,” said Mort Meisner, president and director of Michigan’s Center for Film Studies. The precise effect of movie-studio cash on the state’s private sector is difficult to quantify, but one widely cited study, from the accounting firm Ernst & Young, found that every dollar spent on film incentives generated nearly six dollars in economic activity for Michigan businesses . The same study found that in 2009 and 2010, film projects had created a total of 6,491 full-time equivalent jobs in Michigan. This was far from enough to fix the state’s unemployment problem — in those same years, the jobless rate in Michigan hovered between 13 and 14 percent , well above the national average. Opponents of the film incentive, including the Michigan-based Mackinac Center for Public Policy, a conservative think tank, contend that job growth created by movie production was too modest to justify what the state was giving away in tax dollars. But advocates for the film incentives say the job growth seen since 2008 was merely a promising beginning, and could have increased if given the chance. Meisner’s organization, the Center for Film Studies, houses one of the numerous training programs that emerged for Michigan residents looking to get involved in the movie industry. According to Meisner, the center has trained and placed hundreds of people in movie-related jobs. Its past students include “laid-off carpenters, electricians and autoworkers,” he said, as well as recent high school graduates “who didn’t have the aptitude, desire or financial means to go to college.” And while the film incentive spurred commercial activity and brought some momentum to Michigan’s torpid labor market, there were also other, less tangible benefits. “It gave the entire region something to hope for, something to look up to,” said Parliament Studios’ London. Michigan isn’t often cited as one of America’s cultural centers, and some of the best-known depictions of the state in film take place against a backdrop of economic calamity (“Roger & Me”) or urban burnout (“8 Mile”). The film incentive was bringing stars to Michigan on a regular basis — stars like Clint Eastwood, George Clooney and Courtney Cox, all of whom have filmed movies in the state since 2008 — and with them a sense of energy and artistic cachet. “Finally we had something cool, something high-profile, something with culture,” said Dayna Polehanski, owner of Detroit Casting Company. “Finally, something we could be proud of.” ‘WHATEVER HAPPENS, HAPPENS’ In February of this year, shortly after Gov. Snyder signaled that he was planning to curb the film incentive in the annual state budget, movie houses started walking away. Marvel Studios, for example, backed out of plans to film some scenes for its tentpole feature “The Avengers” in Michigan, ultimately taking that project to Ohio instead , which offers a film tax credit of up to 35 percent . Marvel also passed on Michigan for its “Iron Man 3″ shoot. The company is planning to take that project to North Carolina next year, and the project will reportedly employ more than 1,500 locals as extras or crew members . Other movies that dropped plans to film in Michigan following Snyder’s announcement include ” Freelancers ,” starring rapper 50 Cent; ” Starbright ,” starring James Earl Jones and Kathy Bates; and an untitled project from “The Bourne Identity” director Doug Liman that had proposed to hire 2,200 people . “Freelancers” and “Starbright” reportedly took their productions elsewhere because it was unclear whether they’d be awarded the amount in incentives they asked for. “Everybody who was about to cast, who was about to make films, just kind of bolted,” said Jenny Feterovich, a managing partner at Parliament Studios. Meanwhile, the Michigan Film Office, which handles studio requests for film incentive funds, is making do with its new, limited budget. The Film Office now faces hard choices about which projects to sign off on, but it has had some time to prepare for these restrictions. Though the $25 million cap was only enacted for the fiscal year beginning October 1, the MFO kept itself to $25 million in fiscal 2011 as well, and approved 21 projects during that time. Among the projects it did not approve was the Doug Liman film, which had alone requested almost $23 million in incentives . “I think there’s this perception that somehow the film industry in Michigan has died,” Michelle Begnoche, communications adviser at the Michigan Film Office, said. “If you look at what we’ve done with the resources we’ve had, we still had a fairly good year.” At the moment, the Michigan Film Office is holding off on considering studio applications for incentives for next year. It will begin looking at those requests if and when the state legislature passes a bill currently being heard in the Michigan House of Representatives. The bill, which could go to Gov. Snyder for a signature by the end of the year, proposes criteria for how the Film Office can allocate its $25 million. It would require that productions spend at least $100,000 in Michigan, and stipulates that projects that employ Michigan personnel would be eligible for greater funding than projects that don’t. These conditions, say the bill’s supporters, will help Michigan turn film activity to its economic advantage. But the bill does not raise the $25 million spending cap, and people attached to Michigan’s film industry have expressed little optimism that business will rise again to its previous levels. “Whatever happens, happens,” said Polehanski, the casting company owner, adding that she expects to lose “tens of thousands” of dollars this year as a result of the incentive cap. “I love having this career,” she said, “but I have resigned myself to the fact that it might completely go away.”

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Day After Zuccotti Raid, Few Occupy Wall Street Protesters Gathering In Park

November 17, 2011

On Wednesday afternoon, a day and a half after the city temporarily evicted protesters from Zuccotti Park, security and media were in large supply. What was largely missing were the occupiers themselves. “Let’s face it, it’s depressing to come down here and see the park naked,” said Michael Fix, a New York filmmaker and core protester with a long history of activism, as he surveyed the 80 or so protesters scattered around the mostly empty space. While protesters were allowed back in the park on Tuesday, they were barred from bringing tents or sleeping bags. An older man with a blue striped umbrella approached Fix. “Excuse me,” he asked, “do you know where everyone is? There’s no meetings or anything?” Fix shrugged. “A lot of people are feeling shell shocked,” he told the man. “People are sleeping.” Fix, like many protesters surveyed, said he had only slept six hours since the pre-dawn raid on the park . For both protesters and observers, questions about the near future outweigh answers right now. Without a geographic center, will people still be able to effectively organize? Without a place to sleep, will the crowd disperse? Will the occupiers retake the park or another space? And if they do not, will the loss of Zuccotti — the birthplace of the movement — prove to be a mortal blow or a temporary obstacle that, in the end, may strengthen the protest instead of breaking it? On Wednesday afternoon, one thing was evident: whatever the future holds, the movement on this rainy afternoon was not in Zuccotti Park. Protesters stood in small groups talking, a few held signs. A man wearing a soaking leather jacket stood on the north side, where the information hub of the park once stood, and shouted with a hoarse voice to a group of about 20 that occupiers should not be restricted from using sound amplification — an issue protesters have tried to work around to varying degrees of success. The crowd drifted away. “People are warn out,” Fix said. The raid was particularly hard, he added, on people new to organizing. “If you haven’t been involved in movement building before, this is a devastating blow.” Tuesday night, an estimated 1,000 protesters streamed past a heavy police presence and through one of the two gaps in the metal barricades that now encircle the park to hold one of the largest General Assemblies — the occupy movement’s evening meeting — yet. The discussion was forward looking: the future of Occupy Wall Street, sleeping arrangements, plans for the two-month anniversary day of action planned for Thursday. Many occupiers said that Wednesday’s diminished public presence was the calm between two storms. But many also acknowledged that beyond Thursday’s rally, the future remains unclear. “Tomorrow is a huge day, so everyone is saving energy,” said protester Max Bean, 29. He lives in New York City, and spent the day catching up on sleep and working from home. “But tomorrow is just an action day, not the future of the movement. I think we don’t know where we’re headed next.” At 60 Wall Street, an open atrium that has served as a central off-site meeting place for working groups (committees focused around issues related to the movement), there was also a radically diminished Occupy Wall Street presence. Before the raid, dozens of occupiers met daily around circular tables, amid potted plants to discuss everything from security issues in the park to alternative currencies. But on Wednesday around noon, only one table was devoted to the occupation. Eight members of the mobile occupation working group — one of several groups devoted to inter-occupation communication and outreach — met to discuss a long-planned road trip from New York City to Florida, with 11 stops at occupations along the way. The night of the raid, Charlie Gonzales, 31, had just finished and submitted his new proposal for the month-long trip. The mobile occupiers had not yet had time to read it. As protesters trickled into the space, they approached the group, hoping for more information about what was going on. “When you sit here, you become an information booth,” Gonzales said. “But we don’t know where anyone is. If you find out, let us know.” Now that Zuccotti Park has been cleared, “there’s a big push for inter-occupation communication,” said Kelly Fragale, a member of the group. Whether they’ll be able to get funding approved by the General Assembly as previously planned remains unclear. But members of the group did not seem worried. “Even if we just went tomorrow without any funding, without the GA’s vote, we’d still be able to get a lot done,” said Gonazales, an MIT trained mechanical engineer and owner of the trip bus, which runs on vegetable oil. “This isn’t the end, it’s really just the beginning.” Many expert observers agree that, despite Wednesday’s weak showing, the movement is not grinding to a halt after Tuesday’s raid. “This thing has not played itself out by a long stretch,” said Jeff Goodwin, a sociology professor at NYU who specializes in social movements and has been involved in a variety of Occupy Wall Street working groups and endeavors. Thursday’s planned day of action, Goodwin said, will be one good test. Whether the protesters will find a new space to camp out in will be another. “Movements that have accomplished something certainly have shown a capacity to bounce back from repression far worse than this and setbacks far far worse than what we’ve seen,” Goodwin said. “There will come a point when some impatience starts to creep in, but that moment is not now. This has got a long life a head of it.”

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Occupy Atlanta Protesters To Risk Arrest In Park, Spokeswoman Says

November 6, 2011

ATLANTA — Dozens of people affiliated with Occupy Atlanta have been gathering in a downtown park and a spokeswoman says they plan to spend the night there, risking arrest. La’Die (lay-dee) Mansfield said Saturday the group will stay overnight after rallying in Woodruff Park, which closes at 11 p.m. The mayor’s office and police have said anyone who stays in the park past closing time will be arrested. The Atlanta-Journal Constitution ( ) reports that the Rev. Jesse Jackson arrived at the park Saturday night to show his support for protesters. He told them that the movement was an extension of Martin Luther King Jr.’s Poor People’s Campaign. http://bit.ly/rUAOTN Police on Oct. 26 arrested more than 50 people they say were violating a city ordinance by staying in the park after the closing time.

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Occupy Protesters Plan To Greet Scott Walker In Chicago

November 3, 2011

Wisconsin Governor Scott Walker will be in Chicago early Thursday to address Chicago’s Union League Club — and Occupy Chicago protesters plan to meet him there. Walker, who made many enemies by stripping unions of their collective bargaining rights, faces a potential recall and dwindling approval ratings in his home state, but he still has some powerful fans. From the Union League Club’s invitation: Faced with mounting deficits and busted budgets, the freshman Governor took on powerful political interests – and won. In this talk, Governor Walker will review the challenges confronting Wisconsin (hint: they will sound familiar to Illinois residents), and what he proposes to overcome them. New realities are overtaking established institutions — meet one of the young governors who is shaping the future of states in our federal system. The breakfast program starts at 7:30 a.m., and protesters from the Occupy Chicago Labor Committee plan to meet outside the Union League Club at 7:15 a.m. “Confront Scott Walker with the truth: His attacks on the middle class aren’t welcome in Illinois,” the Occupy Chicago Labor Committee says on its Facebook page . “When Walker tried to take away collective bargaining rights and divide Wisconsin workers, it was Illinois that took in Wisconsin Democratic Senators with open arms. We say NO to Governor Walker!” More than 150 protesters showed up outside a political fundraiser in West Des Moines, Iowa last week, where Walker was the keynote speaker. Reporters were not allowed into the Iowa event, but were later sent a statement through the Wisconsin Republican Party explaining that Walker was in Iowa to discuss the “successes” of his “recently enacted budget reforms.”

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Occupy Wall Street Protests Heat Up In Texas, Oregon

October 31, 2011

PORTLAND, Ore. — Dozens of anti-Wall Street protesters were arrested Sunday in Texas, where they clashed with police over food tables, and in Oregon, where officers dragged them out of a park in an affluent neighborhood. In New York and many other East Coast cities, it was a snowstorm that was making it difficult for demonstrators to stay camped out in public places. The “Occupy” movement, which began six weeks ago in lower Manhattan to decry corporate influence in government and wealth inequality, has spread to cities large and small across the country and around the world. Demonstrators have spent weeks camped out in parks, wearing at the patience of city officials – even those who have expressed some level of support for their cause. In Portland, Ore., police have allowed protesters to sleep in two parks surrounded by office buildings despite policies outlawing camping, but Mayor Sam Adams warned demonstrators last week that he would not allow them to take over any more parks. Late Saturday, hundreds of protesters gathered in another park – Jamison Square in the wealthy Pearl District – and defied a midnight curfew. About 30 people who had decided to risk arrest sat on the ground as other protesters walked around them and chanted “Whose Park? Our Park!” and “Make No Arrests.” When police moved in around 2 a.m., all but the sitting protesters backed off. An Associated Press photographer said most of those protesters went limp and were carried or dragged away by police. There was no violence during the arrests, which took about 90 minutes. The protesters – all appearing to be in their 20s and 30s with many wearing Halloween-style face paint – were handcuffed and taken away in police vans. “We are the 99 percent,” one arrestee continued to chant. Police said the arrests were made on charges that included criminal trespassing, interfering with a police officer and disorderly conduct. Some protesters said they wanted to camp in the Pearl District because they view its residents as part of the wealthy demographic they’re protesting. Commissioner Randy Leonard had urged them to reconsider, saying in a letter that it would be inappropriate to expand the demonstration into a neighborhood park. “We – the entire city council – are your friends … at present,” Leonard wrote. “However, our friendship and support are now being unreasonably tested by the decision to occupy Jamison Square.” Police in Austin, Texas, made 39 arrests early Sunday as they moved to enforce a new rule banning food tables in the City Hall plaza where protesters have camped out. Some protesters surrounded the tables with arms linked. Most were charged with criminal trespass, Police Chief Art Acevedo said. No injuries were reported. Protesters had been advised of the food table ban on Friday, Assistant City Manager Michael McDonald told the Austin American-Statesman. “We want to facilitate their activities,” he said, “but we can’t allow this to be a permanent campsite.” Some protesters found the ban arbitrary. “On a night where there are hundreds of drunks driving around town, they have all these resources here to take down three food tables,” protester Dave Cortez told the newspaper. Protesters in California, Georgia and Colorado also have been arrested over the last several days. In Tennessee, Republican Gov. Bill Haslam’s administration sent state troopers to haul away Occupy Nashville protesters Thursday and Friday for violating a park curfew, but none were jailed. A local official, Night Court Magistrate Tom Nelson, refused to sign off on the arrest warrants, saying state officials have no authority to set the curfew. On Saturday night, protesters prepared for a third night of arrests but were greeted by only a single trooper on patrol who made no move against them. Safety Department spokeswoman Jennifer Donnals would not say whether the troopers plan to continue the arrests, saying only, “The curfew remains in effect and we urge the protesters to adhere to it.” New York’s Democratic Gov. Andrew Cuomo has been similarly thwarted by local officials in Albany, where Occupy protesters have pitched tents in a city park across the street from the Capitol. Cuomo reportedly asked Albany Mayor Jerry Jennings last weekend to begin enforcing the park’s 11 p.m. curfew. Jennings declined; he told the New York Post, “My counsel said we’d be opening ourselves up to civil liability if we forced them out.” In Britain, clergymen and demonstrators held talks aimed at avoiding a violent confrontation over a protest camp outside London’s iconic St. Paul’s Cathedral. Both the church and the local authority, the City of London Corporation, have launched legal action in the hope of clearing scores of tents from a pedestrianized square and footpath outside the cathedral, which is close to the London Stock Exchange. The protest forced the cathedral to close for the first time since German planes bombed the city during World War II, but it reopened Friday after a week. Britain’s High Court will decide whether to authorize authorities to forcibly clear the camp. Many expect the process to be lengthy and complex. In lower Manhattan, police have not attempted to evict people who have been camped out in Zuccotti Park since Sept. 17, but they recently took away the demonstrators’ generators and fuel, saying they were a safety hazard. In a letter to the fire department, attorneys associated with the New York chapter of the National Lawyer Guild said the seizures were only a pretext for “freezing out” the activists. A nor’easter buried parts of the Northeast in up to 2 feet of snow Saturday. There was far less snow than that in New York, but it quickly turned to a miserably cold and wet slush. At least a few protesters left. Nick Thommen, a 6-foot-4 former Marine who served in Iraq and war-torn regions of Africa, gave fellow protesters lessons on how to endure the rough conditions. “I’m fine here – we trained for months in Norway,” he said. But he said less experienced protesters could easily get hypothermia or frostbite. “I went around waking people up and telling them they have to move – do jumping jacks, or anything,” he said. Though far from the nor’easter, Des Moines, Iowa, also was getting uncomfortable for protesters, with overnight temperatures dipping into the low 30s. Protesters in Stewart Square have bundled up in coats, hats and gloves, and some have surrounded their tents in layers of cardboard, hay bales and trash bags filled with leaves. “I’m equipped to be out here however cold it gets, whether it’s 20 degrees above or 20 below,” protester Bill Lewis said. ___ Associated Press writers Travis Loller in Nashville, Tenn., David B. Caruso and Verena Dobnik in New York, Michael J. Crumb in Des Moines, Iowa, and Terrence Petty in Portland, Ore., contributed to this report.

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LIVE UPDATES: Latest Developments From The Global Occupy Movement

October 20, 2011

Occupy Wall Street, a movement that began as a small band of protesters in Zuccotti Park, soon gained endorsements from major unions and progressive leaders as well as prominent politicians. Within a few short weeks, it began to resemble a movement with more than 900 meetups in 900 cities across the country. On Oct. 15, the cause spread across the globe with Occupy rallies in Australia, London, Madrid and other cities saddled with long unemployment lines, gross income disparities and hapless politicians. Organizers have erected tent cities in town squares and held rallies in front of city halls. Major marches have been held in Las Vegas and Portland, and there have been strong showings in Chicago and Austin as well as a stubborn encampment in Atlanta. (CLICK HERE OR SCROLL DOWN FOR LATEST UPDATES ) It’s unclear just where all these general assembly meetings, Twitter updates and teach-ins are heading. Democratic leaders, including Vice President Joe Biden and House Minority Leader Nancy Pelosi , expressed support for the protesters this week and officials such as U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke have said they sympathize with the protestors’ feelings of anger towards big banks’ role in the financial crisis. Naomi Klein, Michael Moore, Tahrir Square veterans and notable environmentalists have all made cameo appearances. Authors have stepped up and added their names. Organized labor has also backed the protests. This support has not helped relations with the police. The activists have endured pepper spray, a baton-wielding white-shirt and the mass arrest of more than 700 demonstrators on the Brooklyn Bridge. That incident is now the subject of a class-action lawsuit filed in federal court. These incidents will either come to define the movement or simply be blips onto something more substantial and lasting. The protesters’ list of grievances is long, with issues ranging from the foreclosure crisis and work-place discrimination to student loan debt. The protests in New York and other cities focus on income inequality, a theme common in the group’s internet presence, including on a Tumblr that showcases Americans dealing with joblessness and other issues. Even if the protesters were able to narrow their concerns to one easily defined goal, some organizers say that would miss the point. So what comes next? If you’ve been to an Occupy Wall Street event anywhere in the country, we’d like to hear from you. Send OfftheBus your photos, links to videos or first-hand accounts of what you’ve seen for possible inclusion in The Huffington Posts’s coverage at offthebus@huffingtonpost.com . If you would like to sign up to be a citizen journalist through OfftheBus, sign up at offthebus.org .

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Sheldon Filger: "Occupy Wall Street" and Mass Arrests in New York City: Is This the Start of a Revolution?

October 3, 2011

For about two weeks, a seemingly spontaneous protest movement has evolved in the financial district of New York, dubbing itself the “Occupy Wall Street Movement.” Supposedly leaderless, there seems to be a core of ideologically committed individuals utilizing social media to empower a protest movement aimed squarely at the financial oligarchy that dominates the American political establishment, and particularly its economic and fiscal policymaking. The organizers of this self-described “leaderless” movement openly state that their methods are inspired by the protest movement of the Arab Spring. On Saturday, October 1 more than 700 protesters were arrested by the New York Police Department. Previously, the NYPD had been accused by not only the protesters but media observers of engaging in brutality and unwarranted violence against peaceful protesters. It is not likely that the mass arrests will attenuate these protests; the opposite actually seems to be the case. Why is the “Occupy Wall Street Movement” protesting in Manhattan’s financial district? The website of the movement states : Occupy Wall Street is a leaderless resistance movement with people of many colors, genders and political persuasions. The one thing we all have in common is that we are the 99 percent that will no longer tolerate the greed and corruption of the 1 percent. While it is too early to determine the future course of this movement, and whether or not it is a flash in the pan or a self-sustaining phenomenon that could lead to a full-scale national, revolutionary mass protest movement, I think the following observation is in order. The arrest of 700-plus protesters on the Brooklyn Bridge in the brief period of an afternoon is not an everyday occurrence in the United States. The fact that so many middle class and especially younger people are out on the streets openly railing against America’s financial oligarchy is at the very least a concrete manifestation that in the economic depression that has swept the land, the emerging generation of Americans has lost faith in the country’s politicians, feels alienated from the political culture and is increasingly hostile to those it perceives as the wire-pullers of the nation’s economic and political life and dispossessors of the future for the vast majority of Americans. Though the movement describes itself as leaderless, should a leadership emerge this movement has the potential to grow and morph into a revolutionary form of resistance to the ruling circles of contemporary America. If that happens, based on the police response to date, will those who dominate decision-making in America unleash repression to suppress this movement? Time will tell, but as America’s economic situation grows worse and President Barack Obama’s mantra of hope and change becomes increasingly dysfunctional and irrelevant, the potential for massive social unrest in the United States grows and may eventually reach a point of critical mass, leading to unforeseen but potentially radical consequences.

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U.S. Cities Criminalize Homelessness, Violate Human Rights Agreements

August 26, 2011

The challenges poor and homeless Americans often face accessing clean drinking water and restroom facilities violate international human rights standards, according to a report issued by a United Nations investigator this month. Catarina de Albuquerque, a U.N. Special Rapporteur on the Human Right to Water and Sanitation, visited the United States in late February at the invitation of the U.S. government. She found homeless individuals around the country not only struggle to access running water and restroom facilities but increasingly face criminal and civil sanctions when they improvise solutions. The right to safe drinking water and restroom facilities is a part of the Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights. The U.N. report’s findings detail just a few of the ways that U.S. cities and counties are failing to meet these obligations because of how they opt to deal with homelessness, said Eric Tars, human rights program director at the National Law Center on Homelessness & Poverty. The most recent federal homeless count data available is from January 2010. It shows there were 700,000 individuals in the U.S. who were homeless. The Department of Housing and Urban Development report found that homelessness grew very little between 2009 and 2010. But the share of families who lack a place to sleep continued the rapid expansion that began during the recession . Between 2007 and 2010, the number of homeless families grew by 20 percent. The nation’s elevated unemployment rate and the large number of foreclosures have increased demand just as municipal and state budget problems have led to a reduction in services available to the poor and homeless. As a result, many communities — in particular suburban communities where services for the homeless are often nonexistent — are confronting an increasingly visible homeless population forced to sleep in city parks or take up residence in one of a growing number of tent cities, Tars said. Some cities have begun to regulate tent cities issuing temporary permits that allow churches or other organizations to host the homeless for few months. But in many more cities, developers, business district boosters and city councils have clashed with the homeless, encouraging police to issue more frequent tickets for violations such as sleeping in public, loitering, littering or public urination and defecation, Tars said. This year, in Sacramento, Calif., city efforts to discourage homeless individuals and families from taking shelter in a growing tent city have included shutting off the water supply to nearby a fountain and locking or removing public restroom facilities, he said. A spokesperson for the city of Sacramento did not immediately return request for comment Friday. In 2009, Sacramento drew national attention when the “Oprah Winfrey Show” aired a segment describing the number of newly homeless people moving into that city’s homeless encampments, said Amy Williams, spokeswoman for the city manager’s office. But the city has not had problems with homeless individuals misusing public facilities and has not shuttered restrooms of cut water to fountains, she said. In 2009, Sacramento did temporarily close its park restrooms because of a budget problem. At that time, at least one city park’s restrooms were not reopened due to community complaints about the homeless, the Sacramento Press reported . In 2009, a Gainesville, Fla., a developer convinced the city to begin enforcing a nearly 20-year-old ordinance barring some social service agencies from distributing more than 130 meals per day. For two years, one downtown shelter was forced to turn homeless individuals away from its soup kitchen line. The city changed the policy this month to allow soup kitchens to serve an unlimited number of meals during a limited number of hours each day. In 2007 Los Angeles began an initiative to reduce crime downtown, leading police to issue thousands of citations to homeless individuals for things such as flicking the ash from a cigarette onto the sidewalk (cited as littering) to urinating or drinking in public, said Tars. Those citations have been overwhelmingly issued to poor and homeless black people, he said. When downtown art gallery crawls bring to the area upper-income city residents who frequently walk from one gallery to another with full wine glasses in hand, police do not take action, he said. In 2009, the National Law Center on Homelessness & Poverty issued a study of the crackdown and others like it around the country that named Los Angeles the No. 1 ” meanest city ” for its treatment of the homeless. A spokesman for Los Angeles Mayor Antonio Villaraigosa called the report “short-sighted and misleading” at the time, Reuters reported . “Rather than doing good things like providing more housing, more shelter, more assistance, cities are using these measures to push problems out of view,” said Tars. Tars said the National Law Center on Homelessness & Poverty is planning a series of cases to challenge ordinances that criminalize activities — such as using the restroom, sleeping or accessing water — that can not be avoided or handled in private if a person is homeless. “What this [U.N.] report will allow us to do is go into court and argue that these laws violate international standards and amount to what a U.N. investigator said was cruel and unusual punishment,” Tars said. This article has been updated to include comment from the Sacramento City Manager’s Office.

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Rahm Drastically Reins In City Agency Credit Card Usage

July 11, 2011

After his administration reviewed how government-issued credit cards are used in the city, Chicago Mayor Rahm Emanuel announced plans to drastically cut the amount of plastic being swiped by employees of city agencies. While some 500 credit cards have previously been in circulation among the city’s government agencies, that number will now be cut to just 30 , to be distributed evenly between the Chicago Transit Authority, Chicago Housing Authority, Chicago Park District, Chicago Public Schools, City Colleges and the Public Building Commission, the Chicago Sun-Times reports. Also, the cards’ use will now be limited to only top executives, whose spending will be made public on a monthly basis. Petty cash funds will be cut entirely and gifts, flowers, car washes, parking or red light tickets and refreshments for holiday parties or birthdays will also restricted under Emanuel’s new policy. “As public servants, we are employed by the people of Chicago, and misuse of their hard-earned tax dollars will not be tolerated,” Emanuel said of the new policies in a statement . “The City of Chicago must be a judicious steward of these funds, and I commend the Comptroller for his swift and thorough review of the city’s reimbursement policies and ask all department and agency leadership to implement these new policy guidelines immediately.” The move comes after City Comptroller Amer Ahmad discovered some questionable charges to agency cards. The charges, as reported by Greg Hinz at Crain’s , include $21,000 for an “executive coaching” session, $1,098 for a group dinner in Reno, Nev., $5,000 for an “appreciation event” and $34,000 in fuel costs, though the city has its own, separate contract covering gasoline expenses. Ahmad would not disclose which agencies were responsible for those charges. Last month, former CHA head Lewis Jordan, one of the top remaining holdovers from former Mayor Daley’s administration, resigned from his position after a Better Government Association/FOX Chicago investigation uncovered he and his department had misused city credit cards for gift cards, flowers, red light camera tickets and even a United Center suite.

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Matthew L. Skinner: The Spiritual Dimensions Of Work And Unemployment

July 8, 2011

Last week on the radio I heard a summary of what psychologist Martin Seligman has been saying about unemployment and its effects on people’s well being. Seligman, an expert on human happiness, reports : Unemployment is a disastrous event for most human beings. Human beings tend to recover from many bad events. But there is a literature in which, before unemployment you measure people’s life satisfaction, then during unemployment, then after they’ve been re-employed. Unemployment is one of those situations where, once it’s happened to you, you never get back to where you were before. “You never get back.” Certainly this is a generalization and not a rule for everyone who loses a job. Still, for too many, there’s a permanent loss. Seligman likens unemployment to the onset of a physical disability; people after both events tend never to regain their previous levels of well being. How can losing a job create such a deep wound? Then again, how can it not? Unemployment brings spiritual as well as psychological and economic affliction. There’s more at work than shame, frustration, and financial setback. I’ll leave it to others to debate the psychological explanations of the evidence Seligman has seen. I can say, however, that a theological understanding of work is important to consider alongside a psychological understanding, especially as communities of faith look to treat the effects (and causes) of widespread unemployment. A theological perspective considers how the Bible prompts us to consider connections between the work we do and a healthy sense of self and purpose. Various passages in the Bible suggest that work is “productive” not merely because it’s necessary for economic survival. The work we do can be a means by which we participate in the life and activity of God. There are days, of course, when the need to work feels like a curse, and we might be tempted to seek biblical support for such a view in Genesis 3:17-19 , where Adam, having nourished himself with delicious but forbidden fruit, is told from now on he’ll have to toil his butt off to stay alive. But this isn’t the only word concerning human work in the Bible’s ruminations on creation. Earlier, Genesis 2:15 suggests work in Eden is a gift or blessing. Humankind, through its labors, is made to participate in ongoing creative activity. The stuff of Eden — gardening, husbandry — these are nothing less than playing a role in God’s desire to see the world be sustained and remain “good,” as Genesis puts it. Other parts of the Bible likewise affirm the value of our work as a means of partaking in God’s commitment to the world. The prophet Jeremiah wrote a letter to people whom King Nebuchadnezzar had carried into exile from Judah to Babylon. In Jeremiah 29 , instead of saying, “Resist!” or “We’ll find a way to get you home soon!” or “I told you so!” Jeremiah tells them to ignore prophets who are promising a quick return to Judah, to set down roots into their new environment and, speaking on God’s behalf, to: Seek the welfare of the city where I have sent you into exile, and pray to the LORD on its behalf, for in its welfare you will find your welfare. (Jeremiah 29:7 NRSV) What a shocking command, given that “the city” is not the exiles’ own. It’s their captors’. An implication is that not even exile can ultimately imperil the promises of God to the people of God. The Lord’s blessings are not inaccessible away from Jerusalem. They’re found throughout the lives people live. Jeremiah further implies that the exiles’ presence and work in Babylon allows them to play a part in the welfare God seeks for all people. God does not merely command or expect human toil. God becomes present in the work we do. Through our work we have the potential to play a part in the flourishing of creation. To be a blessing to others. No wonder it hurts so much when a pink slip takes this potential away from a person, for either a short or a long time, in at least one arena of his or her life. Several of the Protestant Reformers insisted that all Christians, not only clergy, have callings from God. That is, God is interested in playing a part and being found in all the work that people do, in all spheres of their lives. Employment, then, can be a religious calling. And each person has a constellation of other callings that extend beyond work conducted “for pay.” It’s not just about what we do for a living. God can be encountered in our callings as parents, children, neighbors, students, and citizens. These claims about work say as much about humanity as about God. We are creatures who work, not just to survive, but because in working we find opportunity to connect with the universe’s ultimate purposes. In a way, I’m describing an ideal, which many aspects of our economic and social systems make difficult to realize. (Like any other theological idea, the notion of “callings” can be misused, and has been. The point is not that CEOs get to tell those who clean the office for a living, “It was God who called us each to our own professions. That’s the important thing. Pay no attention to the massive discrepancy between our paychecks.” Workaholism is destructive. Work is hell for too many. Certain forms of work harm others and endanger the flourishing of creation and societies.) Still, a theological outlook on work means, as most religious leaders can probably attest from the ministry they do among their people, that our society’s current unemployment epidemic is, in part, a spiritual crisis. Communities of faith must address it with diligence. The scars resulting from it will, for many, go far beyond prolonged frustration and lost economic vitality. It threatens to distance us from the intentions of a God who seeks to make things new and connects our welfare to our neighbors’.

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Duped: Big Calif. Gold Nugget Actually Aussie

July 7, 2011

NEVADA CITY, Calif. — A 6.2-pound hunk of gold was auctioned for nearly half a million dollars in March after a man claimed he found it on his Sierra Nevada property, but it turns out it was actually dug up decades earlier in Australia. After Jim Sanders’ “find” on his property near Nevada City in California’s Gold Country made news last year, Australian prospector Murray Cox compared pictures of Sanders’ “Washington Nugget” with “The Orange Roughie” he unearthed near Melbourne in 1987, the San Francisco Chronicle reported. They were an exact match, except the Washington Nugget sold for $460,000 in March and Cox originally sold it for $50,000. Cox contacted Don Kagin, a coin dealer, and mining geologist Fred Holabird, who together auctioned the nugget for Sanders. The two investigated Cox’s claims and determined he was right. “The parties have mutually concluded that the nugget was from Australia,” Holabird said Tuesday in a statement. As for how Sanders got his hands on the Aussie gold chunk? The dealers said confidentiality agreements barred them from elaborating. Cox told the Chronicle that he sold the Orange Rougie in 1989 and is not sure how it wound up with Sanders. The person who bought the gold in March has been reimbursed, and the nugget sold for a smaller price to another bidder. Despite duping people as to the nugget’s origin, Kagin said everyone involved has agreed that fraud charges against Sanders are unnecessary. “The whole matter has been concluded to everyone’s satisfaction,” he said. The unusual gold chunk fetched $460,000 at auction because it was believed to be the largest California nugget left in existence. While details of the 98.6-ounce nugget’s new sale price were not available, gold closed at $1,529.20 an ounce Wednesday. ___ Array

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Steve Mariotti: Memories of Flint, Part 1

July 3, 2011

I am from Flint, Michigan and am proud of it. I would not have wanted to grow up anywhere else. Founded in 1855 as a lumber-milling town, Flint had a population of over 200,000 by the time my family moved there in 1963, when I was ten. In 1977, the year that I left, close to 80,000 of its citizens worked for General Motors. It was where GM was founded. Our small but feisty community in the heart of Michigan, surrounded by forests and lakes, manufactured the cars in which Americans traveled and the appliances that made life easier. Flint created livelihoods for many thousands of people while being the most important manufacturing center in the world, the Flint River making it easy to transport supplies. During the 1940s, many people from the South — black and white both — moved to Flint, and it grew to cover almost 40 square miles. Factories replaced farms until, in the early 70s, there were dozens of enormous plants. Most of the facilities were dirty and loud and, until the 1970s, hazardous as well. Weekdays at 3 p.m., sirens would sound and thousands of men would stream out from fortress-like walls and drive home in newly-bought cars — almost all Buicks or Chevrolets — while the next shift would pass them from the other direction on their way to work. Our homes were neat and clean — two or three bedrooms — with multiple cars and a snowmobile out front. The General Motors Institute (now Kettering University) was one of the top engineering and management schools in the country, and every student put in a period of work-study at a local GM plant. The public schools were training grounds for the factories, and were tough and disciplined, with some of the best classroom teachers I ever saw, and the worst. My father would visit the plants once a month, looking for safety violations. Tagging along with him was a highlight of my life. Flint meant character; you were either strong or you were defeated. We would stand and watch the cars come down the assembly line, being washed and buffed over that last ten yards. I remember my father saying: “Look what we build here — cars and trucks for the world!” We would pretend to monitor the line’s progress with a stop watch and the men would laugh and cheer at us, as they kept bending the metal and installing the windows — assembling the cars that made us all money. Being given a Chevrolet T-shirt signed by the workers as we were leaving was a wonderful and memorable moment for me. The schools were assembly lines for the factories. In our Career class, the teacher hung a large organizational chart, entitled Buick Factory, reflecting his 15 years there in mid-level management. If we did poorly in class, he would send us up to the chart with a piece of green tape and we would have to put it on “the factory floor”: “And that is where you are going to end up, Steve!” he would shout. When someone did well in record keeping, he would go up and put a piece of red tape on the “accounting” section of the diagram. “You did great Josh. You will make a great accountant!” This teacher would put his class pets in upper management, symbolized by gold stars. Then we would play a game, in which all the Greens (the workers, like myself) would negotiate against the Golds, with the Reds acting as the judges. It was a great lesson on corporate America. Hard work was the glue that held our community together. Socially, it was divided into three fairly distinct groups: the well-to-do families that lived on Parkside Avenue and in the suburbs of Davidson and Grand Blanc; the working-class people of Flint, who lived everywhere else (but always near the factories); and the small business owners who ran the restaurants, tool-and-die shops, operated lawn-care services, and who lived through-out the community. Blacks and whites lived near each other but not in the same neighborhoods. My town also played a significant role in the labor union movement. The 43-day sit-down strike of December 30, 1936 to February 11, 1937 took place only a mile from where I grew up. This episode has been documented in the film, With Babes and Banners . The eventual victory of the strikers insured the unionization of American auto manufacturing, and provided inspiration to workers in other industries. The fledgling United Auto Workers union knew that GM management had spies in their ranks and so occupied Fisher plant #1 without warning, sat down on the floor and refused to leave, making operations impossible. This facility made crucial dies for most lines of GM cars. The local police acted for management and tried several times to remove the strikers, with bloody consequences. In one famous element of the conflict, strikers’ wives broke factory windows so that police tear gas would escape and lose its effectiveness. The newly elected governor of Michigan, Frank Murphy (later appointed to the Supreme Court), deployed the National Guard — to protect the workers from the violence of the police and company strikebreakers. He refused to use the soldiers to remove the strikers. On February 1, strikers also occupied Chevrolet plant #4, and this crippled GM’s production. On the 11th, capitulated in a terse, one-page document. Within six months, the UAW had a hundred thousand members. The result of this violent interlude was a management-labor partnership that soon made Flint one of the wealthiest cities in America. At one time, all Chevrolets and Buicks were made in Flint. Along with Detroit and Dearborn, Flint ruled the American auto industry, which was foremost in the world. My mother was a special education teacher at Flint Northern and taught a year-long course on the sit-down strike of 1936-37. It was her specialty. She would travel all over the city making her presentation, using slides from newspapers and other visuals to explain to working-class kids their heritage. She had a unique moral to the story: Start your own business; be the employer, not the employee — you can better help the working class that way. And remember: your always in business for yourself.Those lessons were to stay with me. She taught me about fairness, too. My boyhood hero was Mark Whitaker, whose father was a big executive in town. Mark was perfect — straight A’s in school; the state champion in the pole vault, and charismatic. He was wrestling for the city championship against one of my mother’s students — a Deshaun Smith, a kid from foster care. I was rooting for Mark at the dinner table. My mother looked at me and said: “Oh, and if Mark wins, what does Deshaun have?” I never forgot that cheering on a child that never had anything was noble. This is part one of a two-part series.

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Keep Your Filthy Hands Off The Subway: Will Tomorrow’s Commuters Wear Plastic Mitts?

June 20, 2011

Step into a New York City subway and it can seem like you’re witnessing biological warfare. Riders cough and sneeze all over the place, nauseating smells waft through the closed confines of the rail cars and unidentifiable puddles frequently ooze across the floor. That’s the image of rampant disease created by officials at one company that’s marketing a plastic, disposable glove called the MetroMitt as the ultimate defense against the clouds of sickening, invisible germs in the transit system. The company started giving out the mitts for free earlier this week at busy subway stations during rush hour. “Any time you touch a subway pole or handrail in New York City you are contaminated until you wash your hands thoroughly,” said MetroMitt president and co-founder Jason Lipton. “There are thousands upon millions of people touching them every day.” “Now people can come and go on the subway without worrying about transferring that bacteria,” he said. Yet winning the war against germs might mean leaving behind a battlefield of used, germ-laden gloves — even if Lipson and his colleagues encourage customers to recycle the mitts. That concern was on the minds of the Metropolitan Transportation Authority, which runs New York City’s buses and trains. “These ‘mitts’ can possibly end up on the track bed clogging drains or increasing the likelihood of a track fire,” said spokesman Kevin Ortiz. Other obstacles lie ahead for Lipton and his partners if they’re going to use public hypochondria to sell advertising space on the backs of the mitts. Image-conscious New Yorkers might find it more revolting to wear a clear baggie than to put their bare hand on a germ-covered subway pole. “It looks like you’re about to serve french fries,” said New York public interest research group Straphangers Campaign lawyer Gene Russianoff, an advocate for mass transit riders. “New Yorkers are a hearty breed. I predict the same questionable market for them like surgical masks. You see people wear them, but it’s not an everyday occurrence.” There might not be much advantage to wearing the mitts only on the subway, either: Germs lurk in all public places, but they’re not necessarily harmful, said University of Colorado biologist Laura Baumgartner. “I don’t have data on the trains, but that I think this is probably another germaphobe product that might be appropriate for people with serious immune problems but is probably overkill for the rest of us,” she told AOL Weird News. Lipton fought off the criticism like a white-blood cell going after an infection, saying that his company promotes good health for people and even the planet. “As long as people recycle,” he said, “it’s eco-friendly.”

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PHOTOS: 10 Careers Derailed By A Tweet

June 16, 2011

These days, you have to be extra careful what you say on social networks. A single message could jeopardize your career in an instant. Many have been fired over Twitter and canned over Facebook , but only a select few make the high-profile list below, sending hugely controversial tweets that put their careers in disarray. Of course the latest major Twitter debacle has involved Anthony Weiner . But AOL Jobs reports he’s far from the first to misfire a tweet and face an unstable career as a result. [Weiner's] congressional sabbatical may very well culminate in his departure from Congress. This is America, and at 46 years old, Weiner still has a future as something. But as the most famous Twitter casualty to date, his experience reinforces the lesson that all tweets might as well be seen by your boss. In his case, that’s the American people, and public opinion. Here are 10 notable cases in which a career was severely damaged by a tweet. (Of course, Twitter can be used the opposite way too .) Each of these mishaps could have been avoided had the tweet deliverer simply avoided hitting “send” on such a public forum – Twitter .

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Activists Target Target Stores Over Corporate Political Donations

June 7, 2011

There are many fronts in the battle to reign in unlimited corporate spending on political campaigns. One involves using shareholder groups to pressure companies to adopt policies that prohibit such donations. Activists this week are taking aim at Target Corporation, where shareholders on Wednesday are meeting for the first time since the company became the poster child for political-donation blowback. Facing widespread criticism and calls for a boycott , Target was forced to apologize in August after it donated $150,000 from its treasury to a group that ran an ad for a candidate in the Minnesota governor’s race who was an outspoken opponent of gay rights. Target reviewed and revised its policy on political contributions after that incident. Mike Dean, executive director of Common Cause Minnesota, said the Minneapolis-based company took some positive steps, such as requiring the trade associations to which it contributes not to spend its money on campaign contributions. But Dean said that the new rules, which still allow spending directly from its corporate treasury, aren’t specific enough. “Target has really failed to learn the true lessons from this controversy,” he told HuffPost. As a result, citizens’ lobby Common Cause, the United Steelworkers Union and the pro-gay-rights Delta Foundation of Pittsburgh have combined forces to demand at the Target shareholder meeting in the city on Wednesday that the company stop spending any of its corporate funds on political campaigns. And they have brought big gun to Western Pennsylvania: a trustee of a $40 billion public-employee pension fund. Ever since the Supreme Court’s dramatic Citizens United ruling in early 2010 freed companies to spend as much as they want on political advertising, New York City Public Advocate Bill de Blasio, a trustee of the New York City Employee Retirement System, has been lobbying companies to choose to refrain from doing so. He’s had success with companies such as Goldman Sachs , JPMorgan, Citigroup and Morgan Stanley. On Tuesday, de Blasio sent a letter to the New York City comptroller about Target. He suggested that the fund withhold its support from Target directors “in the absence of a change in policy on political spending.” “The company’s experience in political spending, and the lack of effective reforms taken by the company after the controversy surrounding the company’s 2010 corporate political spending make the company a leading candidate to receive a shareholder resolution regard political spending from the funds,” de Blasio wrote. Dean said activists will be at Wednesday’s shareholder meeting in full force. Inside the meeting, which is being held in a new Target store in Pittsburgh, activist shareholders intend to question Target executives about their policies. Outside, there will be a rally. The meeting is scheduled for 1:30 p.m. ET and will be webcast to the public . Target’s policy continues to take a toll, costing the company a sweet deal earlier this year. Pop phenom Lady Gaga decided against an exclusive Target special edition of her latest album on account of the company’s continued political activity. Dean said corporate spending in elections “is bad for our democracy” and he said Target, of all companies, should be aware of “the reputational risk posed by this type of involvement.” Shareholders, he said, should ask: “What is the real reward that Target gets out of making them?” — and then ask if corporate political donations are worth the possible downsides.

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Will success spoil Crown Heights? | Real Estate Foreclosures – For …

June 5, 2011

Will success spoil Crown Heights? Posted On Sunday, 05 Jun 2011 By Everything Real Estate – Crain’s New York Business . Under REAL ESTATE NEWS. Will success spoil Crown Heights? Nizjoni Granville has called Crown Heights home for 30 years, but her time there may be running out. … Laura Shin – Blue Wolf Capital Partners :Charles P. Miller, 50, has joined the private equity firm as a partner , responsible for originating opportunities and managing portfolio companies. …

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Labor costs may change construction industry | Real Estate …

June 5, 2011

Labor costs may change construction industry. Posted On Sunday, 05 Jun 2011 By Everything Real Estate – Crain’s New York Business . Under REAL ESTATE NEWS. Labor costs may change construction industry …. Laura Shin – Blue Wolf Capital Partners:Charles P. Miller, 50, has joined the private equity firm as a partner, responsible for originating opportunities and managing portfolio companies. He was formerly an equity partner at Patton Boggs.Manhattan Moto. …

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Hard Money Lenders From California are Helping Real Estate …

June 4, 2011

STUDIO CITY, CA, May 30, 2011 /24-7PressRelease/ — Many people these days are looking for alternatives to get money to pay their.

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Antonio Villaraigosa: Message to Small Business Community: Los Angeles Is Dedicated to Your Needs

June 3, 2011

As National Small Business Month comes to a close, Los Angeles remains committed to the specific needs of the more than 300,000 small businesses that employ nearly 2 million Angelenos. Los Angeles has long been the destination for entrepreneurs from around the globe to build their dreams from the ground up. However, we cannot rely on the City’s trademark entrepreneurial spirit alone to preserve LA as the place where the world creates and innovates. That is why my office created the City’s first-ever small business team to fight for the interests of entrepreneurs and small firms throughout Los Angeles. For the first time, my office required City Departments to meet specific contract goals for local small businesses as well as women-, minority- and veteran-owned businesses. To foster transparency and accountability for this new system, General Managers are required to post contracting results, the first of which are currently available online. This isn’t just the right thing to do — this is the smart, business-savvy thing to do. A larger pool of qualified bidders will generate healthy competition and savings for the City while empowering our local small business community. If you are a small business owner, I encourage you to go visit Los Angeles Works to find out more about these initiatives and other City resources that are at your disposal to help your company grow and thrive. After all, customer service is the core responsibility of our small business team, and you are our most important customer. Below are the recent initiatives and first-time milestones achieved by the Mayor’s Office and aimed at serving the specific needs of small businesses: Signed a Strategic Alliance Memorandum with the Small Business Administration (SBA) to strengthen and expand small business development in the local area. Partnered with the University of Southern California (USC) to create the MBDA Business Center (MBC), which was awarded $1.8M from the U.S. Department of Commerce’s Minority Business Development Agency (MBDA) to boost job creation and foster economic growth. Hosted the State’s largest Small Business Advocate’s Advisory Group meeting, enabling more than 100 small business leaders to discuss programs, policies and capital projects impacting small business. Posted the first reports on the City’s procurement efforts. These reports track the number and amount of contracts awarded by department and the participation by minority- and women-owned companies. Click here for a fact sheet with more information on the resources available to the small business community.

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Gauntlet Commercial Real Estate Capital Closes $6 Million Dollar …

May 31, 2011

“We are looking for equity investors and property owners in downtown Los Angeles to possibly joint venture with or who are looking to sell,” said Elzufon. Gauntlet Commercial Real Estate Capital is a boutique investment …

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Public Pools Closing Across Country As Budget Crises Loom

May 30, 2011

ANDERSON, S.C. — On those summer days when the temperature soars into the 90s and the haze blurs the horizon, city pools across the U.S. have beckoned people from all over to take a cool dip. But as the Great Recession has drained city budgets across the country, it also has drained public pools for good. From New York City to Sacramento, Calif., pools now considered costly extravagances are being shuttered, taking away a rite of summer for millions. It’s especially hard for families that can’t afford a membership to private pool or fitness club and don’t live in a neighborhood where they can befriend with someone with a backyard pool. Hard times haven’t always meant cutbacks. An author who studied the role swimming pools played in 20th century America found more than 1,000 municipal pools were built as public works projects during the Great Depression. But this time, most governments only see decades-old pools burning holes in already tight budgets. In the past two years, Anderson has closed two pools to the public, one shuttered for good and one hanging on by a thread, run by a swim club only for swim team practices and lessons. In all, four public pools within 20 miles of the city have closed since the economy went sour. “You think about American culture – swimming and summer just go together. A lot of these kids not having the opportunity to swim – it’s just hard to swallow. Not only is it important for safety, but what you should do as a kid is swim and have fun and be active,” said Tommy Starkweather, the swim team coach at the Sheppard Swim Center, which was closed to the public in January. But running a pool is an expensive proposition. The Anderson Swim Club spends $10,000 a month on insurance, operations and maintenance even for the pool’s current limited use. In Grand Traverse County, Mich., the only public pool for the county’s 87,000 residents lost $244,000 last year. “That’s three sheriff’s deputies on the road,” County Commissioner Christine Maxbauer said. Grand Traverse County is also facing a looming deficit of more than $1 million, and commissioners are debating whether it is fair to keep to pool open when other services get cut. “We have to focus on vital services … . Clearly a swimming pool is not a vital service,” said Maxbauer, whose husband is a competitive swimmer. In Sacramento, Calif., the city’s more than 465,000 residents had 13 pools to choose from a decade ago. By the start of the summer of 2012, only three public pools will be open. The city has tried for years to keep from closing any pools completely by shortening hours and closing them only on certain days. But the lingering economic downturn has cut $1 million from Sacramento’s aquatics budget, leaving officials with just $700,000 for pools, said Dave Mitchell, operations manager for the city’s Department of Parks and Recreation. The pool closings and shuttering of other recreation opportunities leaves children with far fewer good choices to occupy their free time during the long summer months, Mitchell said. Pools “are just a safe place to be and be kids, to enjoy summer, to enjoy some times. These opportunities just aren’t going to be there for the youth and it is crushing,” Mitchell said. In Oak Park, one of Sacramento’s poorest neighborhoods, the local pool is scheduled to close next year along with a neighborhood community center. The Rev. Tony Sadler of the neighborhood’s Shiloh Baptist Church said both facilities are a resource for families “just to survive in these economic times.” “In an area such as Oak Park, closing these places would be the equivalent of putting them back in a drug-infested war zone that has trapped our children generation after generation,” Sadler recently told the city council. In an odd twist, the Great Recession may be killing off a city amenity born during the Great Depression, when more than a thousand municipal pools were built across the country as public works projects, said Jeff Wiltse, author of a book called “Contested Waters: A Social History of Swimming Pools in America.” “It democratized pleasurable recreation and leisure. A municipal swimming pool offered to poor and working-class and middle-class American, sort of the trappings of the good life – cooling off in a pool on a hot day. Laying out in the sun,” Wiltse said. The first hiccup for municipal swimming pools came during the civil rights era, when they had to integrate. Pools were an especially sensitive place, considering how little most swimmers wore in the water. Many whites, particularly in the South, refused to share public pools, contributing to a sharp rise in private swim clubs and home pools, Wiltse said. In 1950, there were 2,500 private in-ground pools in the U.S. In 2009, there were 5.2 million backyard pools, according to the National Swimming Pool Foundation. The first major round of pool closings happened during the bad economic times in the 1970s and 1980s. Those that survived now face an uncertain future brought on by the latest economic upheaval, which could end up shuttering one of the few places outside public schools where people from a wide range of economic classes meet, Wiltse said. “We’re a much wealthier country than we were back during the 1930s, yet our reaction now to economic downturns is we need to cut public recreation,” Wiltse said. “I think we in contemporary times we don’t value public recreation as past generations of Americans have.” In South Carolina, an informal poll of swimming pools inspectors found 17 municipal pools have closed in the past five years, said Jim Ridge, recreational water compliance coordinator for the state Department of Health and Environmental Control. “The traditional municipal pool … those are in decline,” Ridge said. “I think the primary reason is economics. They don’t age well.” In their place, more affluent communities are building water parks, where splash pads, water slides and other attractions can bring in entire families and allow parks and recreation departments to charge $7 or $8 a person instead of the $2 or $3 admission more common to a regular pool. And the splash pads are often built in suburbs that boomed over the past decade instead of the city centers where decades-old municipal pools are found, Ridge said. In Anderson, Sheppard Swim Center and another pool, Hudgens Swim Center, opened in the mid-1970s, replacing a series of smaller pools, some carved out of ponds, dotted around the county. The school district owned the pools and split costs with the city, and it sent thousands of fourth-graders to the centers for swimming lessons. But the school system withdrew its money several years ago, leaving the city to pay all the bills. Hudgens Swim Center closed before summer 2009, when city council members decided it would be too costly to fix holes in the roof and clean up a mold problem. Sheppard Swim Center, named for a city police officer who died on duty as the pool was being built, managed to stay open to the public for two more years. But at the end of last year, the city decided it didn’t have the money to keep a 35-year-old pool open. The Anderson Swim Club rallied, persuading the school district to let them keep the pool open for practice and meets as well as swim lessons, holding yard sales and pancake breakfasts to raise the $10,000 a month needed to keep a lease on the center. But the bare-bones insurance policy won’t allow the pool to open to the public. Stagnant water fills a splash zone for kids just outside the indoor pool’s doors. And the school district could take its land back anytime to expand the neighboring middle school. During the public outcry after the closing, the city considered building a new pool, but couldn’t get the county or a private company to help with the costs. “It was a very hard decision. Our community needs public pools. But we just can’t afford them right now. I’m not sure who can,” said Anderson Mayor Terence Roberts, who learned to swim at the Sheppard Swim Center in eighth grade. Kerstin Mensch brings her 7-year-old son to the pool for swimming lessons. As he held on to a boogie board and glided in one lane of the 25-meter pool, she recalled how just about every hot day growing up would be spent at the pool with her friends. “My son really loves to swim and this is the only place to go,” she said. As one of Anderson County’s 187,000 residents, she can’t believe the only public pool in the whole county is a small one in Honea Path, a rural town of 3,700 at least 15 miles away. She would be willing to shift priorities or even pay just a little extra in taxes to have a pool she could take her son to so he could spend a carefree summer day in the water, just like she did growing up. “What are kids going to do over the summer?” Mensch said. “Play video games or just get in trouble, I guess.” ___ Jeffrey Collins can be reached at _ http://twitter.com/JSCollinsAP

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Nuke Plant In ‘Tornado Alley’ Not Fully Twister-Proof

May 27, 2011

WASHINGTON — The closest nuclear power plant to tornado-ravaged Joplin, Mo., was singled out weeks before the storm for being vulnerable to twisters. Inspections triggered by Japan’s nuclear crisis found that some emergency equipment and storage sites at the Wolf Creek nuclear plant in southeastern Kansas might not survive a tornado. Specifically, plant operators and federal inspectors said Wolf Creek did not secure equipment and vehicles needed to fight fires, retrieve fuel for emergency generators and resupply water to keep nuclear fuel cool as it’s being moved. Despite these findings, the Nuclear Regulatory Commission concluded that the plant met requirements put in place after the Sept. 11 attacks that are designed to keep the nuclear fuel cool and containment structures intact during an emergency. Wolf Creek Nuclear Operating Corp., which runs the facility about 150 miles northwest of Joplin, said it would take action to correct the problems. “The issues affected only one of several (emergency) procedures, so we continue to conclude Wolf Creek meets requirements, the same conclusion we’ve reached for every U.S. plant,” said Scott Burnell, a NRC spokesman. Wolf Creek, until recently, was one of three nuclear plants placed on a federal watch list in March for safety-related issues. David Lochbaum, a former nuclear plant engineer who now works on nuclear safety for the advocacy group Union of Concerned Scientists, said the equipment that a tornado could disable is the “backup of backups,” but that potential should raise concern nonetheless. “It’s kind of nuclear safety 101,” Lochbaum said. “It’s kind of stupid for it to be there, where it could help with a tornado, and a tornado takes it out.” Already this year, tornadoes have knocked out power to nuclear power plants in Alabama and Virginia, exposing vulnerabilities. At Browns Ferry in Alabama, storms disabled sirens, meaning that police and emergency personnel would have had to use telephones and loudspeakers in a crisis. At the Surry Power Station in Virginia, documents obtained by The Associated Press show that a tornado badly damaged a fuel tanker used to refuel a backup generator. Those instances, along with the situation at Wolf Creek, highlight a larger problem at the nation’s 104 nuclear reactors: While reactors and safety systems are designed to withstand a worst-case earthquake, flood, or tornado, that doesn’t necessarily mean all emergency equipment or the buildings that house such equipment are disaster proof. Wolf Creek’s location in Tornado Alley means that it was designed to handle the maximum tornadoes possible for the United States, with wind speeds up to 360 miles per hour and a maximum rotational speed of 290 miles per hour. But its fire truck is parked in a sheet-metal building “not protected from seismic or severe weather events,” according to the NRC inspection conducted after the Japanese disaster. Jenny Hageman, a spokeswoman for the plant, said there are other options besides on-site equipment for dealing with fires. “We are absolutely protected from a tornado,” Hageman said. “Is everything protected from a tornado on this job site? No. But we protect the critical elements.” The NRC’s post-Japan inspections found numerous other instances where U.S. nuclear plants kept equipment needed to fight fires or to cope with a loss of electrical power in places that a flood could overwhelm or an earthquake could damage. What sets Wolf Creek apart is that it is at much greater risk of being struck by a tornado than other plants are from natural disasters. Since 1985, when the Wolf Creek plant came on line, six tornadoes have touched down in Coffey County, where the plane is located, according to the National Climatic Data Center. All of those twisters were minor, and caused no injuries or deaths. Over that same time period, the National Weather Service issued 23 tornado warnings in the county. “Before Joplin, we had a tornado in the county next to us that ripped up the city of Redding,” said Coffey County emergency management coordinator Russel Stukey. Stukey expressed skepticism about the NRC’s findings, but acknowledged that “a nuclear plant in Kansas should be prepared for a tornado. I wouldn’t go as far to say Wolf Creek is not.” Despite the close calls, including the recent series of deadly tornadoes in the South and Midwest, a twister never has struck Wolf Creek, Stukey said. NRC records show that those nuclear plants hit by a tornado have emerged largely unscathed: _In June 2010, a tornado ripped off siding off a building housing emergency equipment and knocked out one of two power sources at the Fermi nuclear plant in Michigan. An alert was declared, and the plant was stabilized. _Tornadoes struck the Quad Cities nuclear power plant in northwestern Illinois in 1990 and 1996. In 1990, the plant’s security fence was damaged and the roof of one building blew onto a duct that connects the radioactive waste processing area to a venting stack. No radioactive gas was released. Six years later, a tornado damaged one of the unit’s secondary containment structures, leading to an alert and shutdown. _In 1998, a tornado hit the Davis-Besse plant in Ohio, causing significant damage to electrical distribution systems, sirens and other “unfortified” structures, according to the NRC. There were no adverse effects to public health and safety. Similar problems occurred more recently at nuclear power plants in Virginia and Alabama in the path of tornadoes. After the twister at the Surry plant damaged a tanker truck used to fuel a backup generator, state officials were unsure whether the generator it supplied was needed to run emergency systems. The utility called state officials seeking help, and a contractor supplied the plant with a fuel tanker. “I personally do not want to be that close to disaster again,” said Harry Colestock, the director of operations for the Virginia Department of Emergency Management, in an email directing his staff to hold a follow-up meeting with the company, Dominion. Dominon spokesman Jim Norvelle said an older fuel tanker was at the plant, but utility workers did not believe it could navigate the debris left by the tornado. The company is evaluating how it stores equipment and has agreed to supply a liaison to the state’s emergency operations center upon request. Just over a week later, tornadoes forced the Browns Ferry Nuclear Plant near Athens, Ala., to shut down after severe weather wrecked transmission lines and created problems for a plant in Tennessee. The storms also disrupted siren systems that alert residents living near nuclear power plants to trouble. The sirens, which are connected to the electrical grid, failed during a blackout. Tennessee Valley Authority officials said they are in the process of adding sirens that have battery backups, meaning they would work even during a power outage. At one point, only 12 of 100 sirens in the communities surrounding Browns Ferry worked. A similar problem occurred in the region surrounding the Sequoyah Nuclear Plant in Soddy-Daisy, Tenn., which lost 36 of its 108 sirens. If there had been a crisis at either nuclear plant, emergency officials would have driven vehicles with loudspeakers through affected areas to alert residents. ___ Associated Press writer Ray Henry in Atlanta contributed to this report. ___ Online: Array Array Array

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JOB WANTED: A Recent Grad Looks For Work On A Street Corner

May 26, 2011

NEW YORK — Fueled by equal parts desperation and frustration, Dianez Smith took to the street. During the peak of Washington, D.C.’s Wednesday morning rush-hour commute, Smith, 26, positioned herself at the corner of K and 17th Street. She was armed with a handmade sign that read, “I am a recent graduate searching for employment — résume available.” “I’m a dime a dozen in this city,” said Smith, who wore a blue pinstriped suit and black high heels. In total, she handed out 17 copies of her résume to anyone willing to give her a second glance. “I really need a job. I just need to make a decent living.” Smith, who graduated last May from Arcadia University with a bachelor’s degree in studio art, technically already has a job. She currently sells bicycles at Performance Bike in Rockville, Md. But working full-time at $8 an hour is barely enough to scrape by. Smith is also paying down more than $75,000 in student loans and nearly $3,000 in credit card debt. She currently lives with her grandmother in Silver Spring, Md. Smith is hardly the only recent graduate unable to secure a decent paying job while also struggling with piles of debt. Last week, Carl Van Horn, a professor of public policy at Rutgers University, released a study called “Unfulfilled Expectations: Recent College Graduates Struggle in a Troubled Economy.” Van Horn and his colleagues polled young people who graduated from college between 2006 and 2010. Debt is a pervasive worry. Of the 571 graduates included in the study, nearly 60 percent had borrowed money to finance their education. Research also found that half of 2009 graduates are either unemployed or working in jobs that don’t require a college degree. “The job search requires a combination of tenaciousness and constantly putting yourself out there,” said Paul Oyer, a professor of economics at Stanford University’s Graduate School of Business. “You have to put yourself in a position where luck can happen and give yourself as many options to be in the right place at the right time as you possibly can,” he said. Oyer cautioned that while tenacity is an essential quality, the appearance of being desperate is generally frowned upon. But Matthew Segal, 25, who happened across Smith during yesterday’s commute to work, said that “desperate times call for desperate measures.” More than anything, he was struck by the boldness of Smith’s approach. “She’s the perfect example of someone well-educated and ambitious, yet not too proud to go out and do something that takes an incredible amount of courage and strength,” said Segal, the founder of Our Time , a national membership organization for people under 30. Segal’s office is routinely flooded with young graduates looking for any job they can get. Many complain that employers require three years of work to even be considered. “But how the heck do they ever get three years of experience if they can’t at least get that first, entry-level position?” asked Segal. Smith has wondered exactly that on more than one occasion. “My education is apparently not good enough,” she said, before heading off to work. “A bachelor’s degree used to mean something. It used to mean that you could at least get in the door.” While her mother is a nurse and her father works at Dulles International Airport, where he deplanes aircraft, Smith was raised by her grandmother. At 77, she works as a psychotherapist. After graduating a year ago, Smith landed a paid internship at the Smithsonian Institution. But after the summer was up and the internship ended, she went back to selling bicycles. She’s been looking for better-paying job ever since. On her days off, when she’s sitting in her room at her grandmother’s house, Smith sees vestiges of a life that never came to pass — stacks of interior design books, a drafting table, a container of drawing pens. Her current job in no way relates to anything she studied in school. Yesterday morning, it was precisely that feeling of disappointment that roused her from bed at 5:45 a.m. to make her best case to any stranger willing to give her the time of day. Standing on that street corner, Smith finally got what she had long gone in search of: recognition. “Every time someone said good luck, it lifted my spirits,” recalled Smith, who crossed paths with a woman looking to hire at a local law firm. After going in for an initial interview, she’s been asked back for a second round. “I have no problem working an entry-level job,” she said. “I don’t want to start out at middle management. All I need to do is to make a self-sufficient living.”

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Arizona’s Only Beachfront Resort to Mark Memorial Day Weekend with Opening of State’s Largest Infinity Pool

May 24, 2011

  LAKE HAVASU CITY, AZ — Nautical Beachfront Resort (top left photo) , Arizona’s only beachfront resort hotel, will open the state’s largest infinity pool, “WET,” Friday May 27, just in time for the Memorial Day Weekend.   In honor of the occasion and to kick off the holiday weekend, members of the city’s VFW Post 9401 have been invited to be the first residents to get WET at 4 p.m. “We like to have fun at Nautical Beachfront Resort, but we’re also mindful that Memorial Day is a meaningful holiday,” said Tim Peters , general manager.   “So, we wanted to honor our local veterans by inviting them to christen our pool.   American soldiers are often the first to respond in times of crisis, this time they can be the first ones in on the fun.” WET, a free-form pool roughly the size of a stadium Jumbotron and filled with 108,000 gallons of water, is part of the first wave of property enhancements planned by the resort’s owners, RW Partners LLC of Phoenix.   A new arrival center, scheduled to open later this summer, is also under way.   Media Contact :   Lauralee Dobbins/Chris Daly, 703-435-6293, Lauralee@Dalygray.com

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Art Levine: High Noon: Tuesday Protests Take on "Fully Loaded" Chairman, GOP-Style Dems Over DC Cuts to Poor

May 24, 2011

The scandal-plagued chairman of the DC Council, Kwame Brown, best known for asking city taxpayers to pay for a “fully loaded” Lincoln Navigator worth $2,000 a month, is joining with other GOP-style Democrats to slash city services for the poor. At the same time, they’re opposing the mayor’s proposal to raise $35 million in added taxes from Washington’s richest residents — and, amazingly, the council is moving to give away $19 million in revenue through repealing some taxes for the rich altogether. With the vote scheduled Wednesday, The Washington Examiner reports that a backroom deal was apparently struck Monday evening with Brown when Marion Barry, the former crack-smoking mayor and still a councilman, agreed to reverse his support for tax increases on the rich in exchange for property tax abatements for some churches in his district. The pending budget deal could still cut over $100 million from critical services for the poor, disabled and homeless from the social services budget, roughly two-thirds of all proposed cuts. The safety-net is already so tattered that homeless mothers with infants in tow have been given bus fare to ride the buses all night rather than shelter. As a result , Save Our Safety Net , a group leading a loose coalition of progressive safety-net advocacy organizations, called for protests Tuesday at noon at DC’s City Hall, the Wilson Building. And in the day before the event, they unleashed a series of last-minute videos targeting Kwame Brown, most on the City Council and an otherwise liberal council member, Mary Cheh, for opposing raising taxes on the rich and risking the well-being of the city’s neediest. What wasn’t mentioned publicly is that these same city council members also pay themselves and their staff the most lavish salaries and expenses in the country when measured on a per-seat or per-taxpayer basis: $1.5 million per council seat. The biggest target remains Kwame Brown and his lavish lifestyle contrasted with the poor children, disabled and homeless who could be denied services. The latest video ends with an SUV heading for a crash and the tag line: “Don’t let Kwame run over our most important public services.” Brown has offered what critics see as vague promises to restore $25 million in proposed cuts, but as the S.O.S. group pointed out, following protests last week : After our Wednesday action, we had 7 confirmed Council votes in support of the Mayor’s income tax proposal, enough to pass it. But yesterday we got word that Marion Barry (Ward 8) and Tommy Wells (Ward 6) have decided they no longer support the Mayor’s proposed income tax! We have also heard that Kwame Brown is proposing $25 million in restorations. That is certainly a step in the right direction, but it is not nearly enough. Safety net services are still underfunded by $32 million. By getting rid of the income tax proposal, Chairman Brown, Barry, Wells and other Councilmembers would take away $19 million in resources that could be used to restore funding to critical services. Even though at least 85% of the city residents in a recent poll back raising taxes to preserve social services, most city council members reject that stance and instead are supporting other accounting schemes and alternative revenue measures, including some that the council has rejected in earlier years — such as ending DC’s unique tax break for those who buy out-of-state municipal bonds helping other cities. What’s especially striking is the way these formerly liberal Democrats, echoing a national right-leaning trend in the party, adopt right-wing talking points and even cite the Chamber of Commerce as “evidence” for their views. As recounted in emails about a tense meeting with constituents held by council member and law professor Mary Cheh, who represents the richest and whitest area in the city, Ward 3, liberal voters there aired their complaints that she was abandoning the principles of the Democratic Party and her campaign promises. For instance, as Jessie Sigel, a Ward 3 resident, wrote angrily to Cheh after the meeting: The tax issue aside, I was, quite frankly, shocked to hear someone who professes to be a Democrat, suggest, as her “philosophy,” that anyone one on TANF [Temporary Assistance for Needy Families ] for more than five years doesn’t want to work; that their children don’t have proper role models, followed by righteous professions about the “dignity of work.” The language you used is akin to the old Reagan demonizing of the poor as “welfare loafers” and of the poor “coming to collect their welfare checks in Cadillacs.” If one is going to take a hard line that people should get a job, they need to ascertain that there are jobs — jobs that enable people to pay the rent and feed their children — to be had. When I asked you about jobs programs, child care programs and job training, you didn’t seem to know to what degree they exist in the district. (and, obviously, revenue would be needed to support these sorts of programs)… But embracing a “philosophy” — or as I would call it, a stereotyping of people, without making an inquiry into the group’s situation and options is reprehensible. It is something I would expect of right wing Republicans who have a particular agenda in mind and who are determined not to let logic or others’ needs get in the way. Cheh, like some other leading Democrats who are moving to slash services, used to be considered a progressive, innovative member of the City Concil. Kesh Ladduwahetty, an activist with DC for Democracy , also recounted: Cheh is adamantly against the tax increase, and there’s nothing more substantive in her reasoning than “sending the wrong signal” and small [businesses]. When pressed about small biz, she doesn’t have any data (she’s just repeating Kwame’s rhetoric). Mary Beth Tinker [another DC4D member] called her on the fact that she kept citing the Chamber of Commerce, although nothing specific. Mary Beth also heard her say something to the effect that in order to get some things that she wants done, she has to do some other things (sounds like a blatant statement about trading favors with Kwame). Bottom line: she’s not budging for this vote (not that we can see), but she got the message loud & clear that her progressive base is shocked and disappointed in her. On Tuesday, groups like Save Our Safety Net hope that some in the city’s progressive base will turn out and start calling members of the City Council to support fully funding city services. To that end, some of her young progressive supporters even created a mocking rap video calling on Cheh to respond to the wishes of her constituents on taxes and the safety net:

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Emanuel Announces 1,000 New Chicago Jobs From GE Capital

May 23, 2011

In a first piece of good economic news for Chicago’s new mayor, Rahm Emanuel announced Monday that the financial services arm of General Electric would be adding 1,000 jobs in the city, nearly doubling its Chicago-based workforce. “Pound for pound, Chicago provides a lot of value for us and is a great place to be,” said Daniel Henson, president and CEO of GE Capital, Americas , to the Chicago Tribune . Mayor Emanuel has known the CEO of General Electric, Jeffrey Immelt, for some time, dating back to his days in the White House and as Congressman from Chicago’s North Side. “I called him and asked, ‘While you’re in town, do you want to grab a drink?’” Emanuel said , according to the Chicago Sun-Times . “Now, obviously having that experience and having both his email and his phone number was an advantage.” But he went on to say that GE wouldn’t have made the investment as a favor. “If this didn’t make economic sense to GE and their bottom line, they wouldn’t have done it,” Emanuel said. Both he and executives at GE said that Emanuel’s fiscal plan for the city — which includes addressing a massive $500-plus-million deficit — would take Chicago in the right direction and create a pro-business environment. According to an Associated Press report, the first 500 of the new jobs will come in within the next year , in commercial, regulatory and technical positions. The other half of the jobs will be added over the several years following. In addition to the 1,000 employees already in Chicago, GE Capital has another three thousand elsewhere in the state, WBEZ reports.

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State Legalizes Gold, Silver Coins As Currency

May 23, 2011

SALT LAKE CITY — Utah legislators want to see the dollar regain its former glory, back to the days when one could literally bank on it being “as good as gold.” To make that point, they’ve turned it around, and made gold as good as cash. Utah became the first state in the country this month to legalize gold and silver coins as currency. The law also will exempt the sale of the coins from state capital gains taxes. Craig Franco hopes to cash in on it with his Utah Gold and Silver Depository, and he thinks others will soon follow. The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings. He plans to open for business June 1, likely the first of its kind in the country. “Because we’re dealing with something so forward thinking, I expect a wait-and-see attitude,” Franco said. “Once the depository is executed and transactions can occur, then I think people will move into the marketplace.” The idea was spawned by Republican state Rep. Brad Galvez, who sponsored the bill largely to serve as a protest against Federal Reserve monetary policy. Galvez says Americans are losing faith in the dollar. If you’re mad about government debt, ditch the cash. Spend your gold and silver, he says. His idea isn’t to return to the gold standard, when the dollar was backed by gold instead of government goodwill. Instead, he just wanted to create options for consumers. “We’re too far down the road to go back to the gold standard,” Galvez said. “This will move us toward an alternative currency.” Earlier this month, Minnesota took a step closer to joining Utah in making gold and silver legal tender. A Republican lawmaker there introduced a bill that sets up a special committee to explore the option. North Carolina, Idaho and at least nine other states also have similar bills drafted. At the moment, Franco’s idea would generally be the only practical use of the law in Utah, given the legislation doesn’t require merchants to accept the coins, either at face value – $50 for a 1-ounce gold coin – or market value, currently almost $1,500 per ounce. And no one expects people will be walking around town with pockets full of gold and silver. Matt Zeman, market strategist for Kingsview Financial in Chicago, expects more people will start investing in gold as America’s growing debt and bankruptcies in other countries continue to decrease the value of government-backed money. “You’ve seen gold replacing these currencies as safety instruments,” Zeman said. “If I don’t feel good about the dollar or other currencies, I’m putting my money in precious metals.” Some supporters, including the law’s sponsor, seek to push Congress toward removing the tax burdens that discourage use of the coins, such as a federal capital gains tax. “Making gold and silver coins legal tender sends a strong signal to Congress and the Federal Reserve that their monetary policy is failing,” said Ralph Danker, project director for economics at the Washington, D.C.-based American Principles in Action, which helped shape Utah’s law. “The dollar should be backed by gold and silver, so we have hard money.” The U.S. and many other countries largely abandoned gold-backed money during World War II because they needed to print more cash to pay for the war. Later, during the Great Depression, President Franklin D. Roosevelt took steps that essentially prohibited gold and silver as legal currency to prevent hoarding. In 1971, President Nixon formally abandoned the gold standard. Fifteen years later, the U.S. Mint began producing the gold and silver American Eagle coins, primarily aimed at investment portfolios and allowing people to trade them at market value but with capital gains taxes on profits. Utah is now allowing the coins to be used as legal tender while levying no taxes. Opponents of the law warn such a policy shift nationwide could increase the prospect of inflation and could destabilize international markets by removing the government’s flexibility to quickly adjust currency prices. “We’d be going backward in financial development,” said Carlos Sanchez, director of Commodities Management for The CPM Group in New York. “What backs currency is confidence in a government’s ability to pay debt, its government system and its economy.” Larry Hilton, a Utah attorney who helped draft the law, disagrees and says the gold standard would restore faith in American money at a time when spiraling debt is weakening confidence. “We view this as a dollar-friendly measure,” Hilton said. “It will strengthen the dollar by refocusing policy matters in Washington on what led to the phrase, `the dollar is as good as gold.’” .

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Nation Watches As LA Sues Deutsche Bank

May 22, 2011

LOS ANGELES — A dead dog lies among the knee-high weeds, a sign to Guillermo Elenes that the burned out, boarded up house is being used as a dump. Inside, soiled diapers, fast-food trash and the strewn beer and vodka bottles indicate squatters have been living there. The dumping ground-crash pad serves as a squalid symbol of how the foreclosure crisis is riddling communities with blight because no one wants to shoulder the responsibility of maintaining foreclosed homes. “There’s one on every block,” said Elenes, a community organizer with the Alliance of Californians for Community Empowerment in Watts, a low-income South Los Angeles neighborhood pockmarked with foreclosed homes. “All we want is for the banks to step up and be good citizens.” Communities across the nation have made little progress in getting banks to maintain foreclosed properties, and as the ongoing crisis matures and bank-owned homes fall into advanced stages of disrepair, cities and residents are getting desperate. In a keenly watched move this month, Los Angeles forged a new strategy – it sued one of the world’s major financial institutions, Deutsche Bank, to force it to take care of 166 properties, both vacant and renter-occupied, charging the blue-chip German giant has turned into the city’s largest slumlord. “The buck stops with the owner of record. We’re saying, `You are an owner like any other owner,’” said Julia Figueira-McDonough, deputy city attorney. Not according to Deutsche or other banks. They say they aren’t really the owners, despite the fact that their name appears on the property title. They also say they are not responsible for maintenance. Representatives of Deutsche, as well as U.S. Bank, BNY Mellon and HSBC – three other major lenders that Los Angeles is investigating with an eye to suing, all said that loan servicers are responsible for property upkeep, as well as tasks such as sending default notices, modifying loans, selling homes, and collecting rent and mortgage payments. “We’re there in name only,” said Teri Charest, spokeswoman for U.S. Bank. “We’re trustees. We have a very limited role.” The real owners, the banks say, are the holders of the mortgage-backed securities – financial instruments comprising a pool of mortgage loans that are held in a trust and sold. The banks maintain they are simply distributors of the proceeds from the securities – the payments of a homeowner’s loan principal and interest – to the investors. Although the bank contracts the loan servicer, the bank’s role does not include pressing servicers to properly maintain the trust’s assets on behalf of its beneficiaries, bank representatives said. U.S. Bank, however, has sent notices to loan servicers that they must maintain properties in accordance with applicable laws, a statement said. Loan servicers, however, usually have a contract loophole that allows them an easy out from the maintenance burden. Typically, they’re only required to spend money on upkeep if they believe the outlay is recoverable, according to Laurence Platt, a Washington D.C. lawyer who has represented banks in foreclosure-related litigation. “Who pays for a pig in a poke?” he said. “This is a collateral issue of the whole foreclosure crisis.” Calls to two of the country’s largest loan servicers – Ocwen Financial Services of West Palm Beach, Fla., and Statebridge Co. of Denver, Colo. – were not returned. Houston-based Litton Loan Servicing declined to answer questions from The Associated Press. Many servicers are also owned by Wall Streeters such as Wells Fargo. The issue of loan servicers is an attempt to dodge responsibility, Figueira-McDonough said, because the banks are the owners of record, plus have a fiduciary duty to their trust beneficiaries. Officials in Los Angeles and other cities say they’re infuriated with the back-and-forth finger-pointing while an epidemic of eyesores is devastating neighborhoods. “We’re left holding the bag. Someone has got to be held accountable,” said Robert Triozzi, law director for the city of Cleveland, which unsuccessfully sued Deutsche Bank over different foreclosure-related issues three years ago. “Not only have these institutions caused this mess, they have continued to perpetuate it.” Silvia Lobato of South Los Angeles just wants repairs to the one-bedroom apartment she’s been renting for the past 14 years – named as one of the neglected Deutsche Bank properties in the city’s lawsuit. The kitchen sink plumbing has a leak that has caused the unit to rot and breed worms. The bathroom ceiling is covered with mildew. A city inspector told her the gas connection to the water heater is dangerous. Mice scramble in the walls. Everything was fine until the owner lost the duplex two years ago, said Lobato, who lives in the apartment with her three kids and another mother and her three children. Since then, she’s been unable to get the landlord to make repairs. “I call and call. They say they don’t have the money. I pay $680 a month in rent,” she said. “I worry about the kids in these conditions.” Governments have tried various tactics. Los Angeles, like many cities, last year enacted an ordinance mandating that banks register defaulting properties and pay a $155 fee so the city can track the property and collect funds for expenses. But despite the penalty of $100,000 fines for non-registration, the ordinance hasn’t worked because it relies on banks to self-report the properties. “There’s been minimal compliance,” said Figueira-McDonough. Other cities, including Fort Lauderdale, Fla., have tried to crack down by declaring unkempt homes “public nuisances,” and charging owners, including banks, with the cost of boarding up windows and mowing lawns. In cases where no owner can be found or bills are unpaid, a lien is placed on the property. Residents, incensed about homes on their blocks turning into drug dens, gang hangouts and vermin nests, are galvanizing. Watts resident Lynn Mottley drives around her neighborhood looking for telltale signs of foreclosure, such as chain link fences with no trespassing signs, jotting down the addresses in a notebook she keeps in her car. Mottley, an activist with the Alliance of Californians for Community Empowerment and the Home Defenders League, reports the addresses to the city and to lahoodwinked.com, an activist website that encourages residents to list foreclosed properties so the city can pursue owners for upkeep. Her notebook keeps filling up. “Wow, there’s another one,” she said, driving by a ramshackle bungalow with broken windows and an overgrown, junk filled yard. “Who wants to live next to this? Something has to be done.”

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Gold River Productions Inc. Announced Today That It Has Filled Another Key Managerial/Sales Position

May 20, 2011

SALT LAKE CITY, UT–(Marketwire – May 20, 2011) – John Ohlin, President and Chief Executive Officer of Gold River Productions ( PINKSHEETS : GRPS ) Inc. announced today the hiring of an experienced V.P. of Sales for the patent pending World Home. The V.P., “whose name we are not making public at this time, has vast experience as both a general contractor and in the construction of homes made from a variety of composite materials. In his current position, he has been responsible for both national and international sales and will bring immediate introductions to potential customers within our borders as well as with a dozen foreign countries. Our patent pending World Home ‘is vastly superior to any similar type of product I have ever seen,’ he told me,” Mr. Ohlin stated.

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Nell Merlino: Expanding Into Foreign Markets: Advice, Caution and Building a Strategy

May 19, 2011

Did you know that the word “millionaire” in Hindi is masculine? What does that mean for women in India who wants to grow a multi-million dollar business? I learned about this conundrum from a colleague Nalini Mehta who attended our Make Mine a Million $ Business event in San Francisco last Fall. I often hear from small business owners who are looking for advice on how to break into and navigate international markets like China, India or even Vietnam. It’s a hot economic trend and with good reason. A report released this week by TD Economics revealed that from 2004-2009, exports by small U.S. firms to all countries grew 30%, while exports to China and India doubled. In addition, according to the U.S.-China Business Council, a private, nonpartisan, nonprofit organization of roughly 220 American companies, China has been our fastest growing export market since it joined the World Trade Organization. What’s more, it’s the only major market since 2000 to have averaged the 15 percent growth per year needed to meet President Barack Obama’s goal of doubling US exports by 2014. The Council also reports that America’s small- and medium-sized companies are succeeding in China, but those companies still need more help accessing China’s markets. So I asked my good friend Ned Cloonan, a former vice president at AIG and the current president of Ned Cloonan Associates, an advisory firm focused on international market access, strategic philanthropy and business intelligence, for some of his thoughts. Ned was one of the first in corporate America to seriously invest in gender equity issues around the world (including Count Me In). He’s also been at the forefront of just about every major market opening in the world over the last 15 to 20 years and he has great advice for women wanting to do business abroad. For example: 1. UNDERSTAND THAT THIS IS A LONG-TERM COMMITMENT. It’s going to take time and capital for you to get access and be able to establish a business in countries like China, India or Vietnam. It’ll be longer and cost you more than probably anything you’ve done to date. To be on the safe side, you might want to build the new markets into a long-term business and financing strategy. 2. YOUR BUSINESS, PRODUCT OR SERVICE STANDS THE BEST CHANCE OF BEING SUCCESSFUL IF IT IS RELEVANT TO THE CURRENT ECONOMIC PLANNING AND PRIORITIES OF THOSE COUNTRIES. For example, in China, they have great interest in product or service that can help in energy efficiency or alternative energy. They are also facing an aging population because of the country’s longstanding one child policy, so if you have a product or service that is related to healthcare or healthcare related services that could be of interest to them. You need to offer something that these countries need and want at that time. 3. SPEND TIME AND EFFORT TO UNDERSTAND SOME OF THE DIFFERENCES IN THE WAYS DECISIONS AND POLITICS ARE MANAGED. It’s important to know the difference between local, regional and federal or central government interests. It’s critical for you to know the decision makers in the process in the regional and local governments. To that end, see if you can participate in a trade mission with the governor’s office, state department of commerce, the Asia Society, or U.S./India business council. There’s a wealth of information and knowledge that may help you understand more fully not just the challenges but also the opportunities and maybe some potential partners. Participating in trade missions and reaching out to chambers — both here and abroad — can be a cost effective way for a small business owner to meet more senior decision makers and get better advice and information in these countries. You stand a better chance to “punch above your weight.” 4. POLITICS MATTERS. Your business can easily be affected by the ebbs and flows of the political relationships between the US and those countries. Even if you’re small or medium sized, you can feel the pressure if the relationship is strained or if there’s a desire for the relationship to expand or grow and prosper. M3 awardees receive a one-year legislative membership with Women Impacting Public Policy (WIPP), a non-profit, nonpartisan public policy advocacy organization with over half a million members (including 54 business organizations) educating and advocating on economic issues for women in business. It’s been a valuable resource to those interested in breaking into foreign markets. 5. FIND A PARTNER IN THAT COUNTRY. If you’re small or medium-sized, you’re going to have to find a compatible partner to assist you in navigating through all of the challenges each one of these countries presents to any business that wants to be successful there — particularly a foreign investor. Choosing a partner could include a reference to a model that has worked in the past is finding someone educated here but from there. 6. CONSIDER A “SECONDARY CITY” STRATEGY. In China, for example, the government is encouraging investment in smaller, interior cities, and not just Shanghai or Beijing. So, it’s important to be flexible.

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Art Levine: GOP-Style Democrats Slash DC Budget: Homeless Moms Already Given Bus Tokens, Not Shelter

May 17, 2011

Except for white Republicans in Congress opposed to home rule, few people outside of Washington, D.C. — and even some white liberals who live in the District — bother to pay much attention to Washington’s local political battles. But that changed briefly last month, when Mayor Vincent Gray and six members of the city council were arrested in high-profile protests against a Republican-driven federal budget deal that prevents the city from spending its own funds on abortions for low-income women. Congress has traditionally had authority over the Democratic-run District’s budget, but rarely directly interferes in spending. “Why are we the sacrificial lamb?” Gray had asked. Progressive media outlets praised Mayor Gray for seeming to stand up to Republicans and their distorted budget priorities. Yet Mayor Gray and much of the rest of the city council are moving on their own to make the city’s disabled, youngest and neediest citizens the sacrificial lambs of the proposed new city budget, with two-thirds of the cuts targeting the poor. And those programs make up less than a quarter of all city spending . It’s yet another troubling sign of the rightward shift of state and national Democratic Party leaders. It’s a trend that can be seen everywhere from Democratic legislators in Massachusetts voting to strip public employee unions of the right to bargain collectively to national Democrats meekly accepting until it’s too late GOP messaging on deficit cuts and tax breaks for the rich. Here in Washington, city services are already so strained before the proposed cuts that even families with young children seeking emergency shelter are routinely turned away, and have often been given instead bus tokens to ride the buses all night with their toddlers and infants. As Eric Sheptock, a literally homeless homeless activist working with a donated laptop, described a recent hearing on the crisis: One mother cried as she explained how that she, with her 3 children — ages 5, 3 and less than a year-old — in tow, was told by an employee of the Virginia Williams Family Intake Center that there were no shelter spaces for them and that she was given bus tokens so she could ride the city bus all night with her children in order to stay warm. Other mothers testified that they also were given bus tokens so that they could use the bus as a de facto shelter. (DC Law states that, if there is no shelter space available for a homeless family with small children, then they must be put into a motel room) The Mayor’s proposed budget would essentially close down all shelters for everyone except when the weather falls below freezing. The mayor’s justification? ” In some quarters, we have created a culture of dependency that does not encourage residents to take control of their lives,” he declared in a speech nonetheless proclaiming a vision of a compassionate “One City” uniting all. Unlike the original welfare reform plans passed by President Clinton, though, these new meat-ax approaches to social services don’t provide any transitional assistance. As activist Kesh Ladduwahetty with the all-volunteer DC for Democrac y, a DFA affiliate, asks, “How does turning people out into the streets and eliminating child care programs help residents to take control of their lives, educate themselves, and become self-reliant?” Some councilmembers may seek to restore a portion of the $20 million to be cut in homeless services, but are doing relatively little to fight for $110 million in other vital services on the chopping blok, including mental health and other programs for the nearly one-third of District children who are poor. Prospects for protecting these programs are even worse than in the fights over social programs at the national level, because local safety-net advocacy groups are mostly under-funded, poorly organized and have no media savvy, making it even easier for the mainstream media to largely ignore the devastation these cuts would cause. Journalists here focus, at best, on councilmembers bickering over taxes . The Washington Post , for instance, doesn’t even have a reporter anymore covering the social services beat. The Mayor has asked for a slight rise in taxes for those earning over $200,000, but even that’s being resisted by a deadlocked City Council claiming it would discourage businesses and upscale residents. All told, his revenue-raising proposals could add about $127 million , but other ways to boost revenues as much as $104 million more, including increasing taxes for the very richest and closing tax exemptions for buying out-of-state bonds, are considered by council insiders to be off the table. This same city council spends more on itself — both per resident and per councilmember — than any other city in the entire country, according to the Pew Foundation . As the Washington City Paper reported: “The District came in first in costs in relation to both the number of city residents and the number of council seats. The council has a total budget of $19,434,000, including employee benefits–that averages out to $1,494,923 per seat, and $32.41 per resident.” But they don’t seem to mind kicking a few thousand people from shelters or cutting emergency assistance for the low-income disabled in order to preserve virtually all of their own perks — and keep costs down for the city’s richest citizens. Indeed, at a city council meeting on Monday, council members even opposed raising fees for wealthy Washingtonians who own three cars or to increase downtown parking fees. As the influential Greater Greater Washington blog pointed out: “At times, the discussion became quite heated, particularly when some members were defending the rights of people who own 3 cars and make over $200,000, yet wouldn’t consider driving downtown for dinner if it cost them $4 to park.” Analyst David Alpert added, “In a budget that makes very deep cuts, there was more passion for keeping parking cheap and for keeping taxes on the wealthy low than anything for keeping people off the street and from going hungry.” Yet as one progressive, Mary Beth Tinker, an SEIU pediatric nurse and a DC for Democracy member, pointed out in her testimony (full document here ) last week about the impact of raising taxes modestly on those earning over $100,000: For the price of a cup of coffee, you can save childrens’ lives. That is the increased cost in taxes per week, $1.80, that a DC resident making $125,000 would pay if their tax rate went from 8.5% to 9%. For the price of a latte, you can retain essential services to DC’s children. That is the cost in taxes per day, $3.60, that a DC resident making $350,000 would pay if their tax rate went from 8.5% to 9.5%. You can judge a society by how it treats children… The status of children in DC is a human rights shame by any indicator: infant mortality rates, graduation rates, soaring poverty rates. Amazingly, there are now proposals that would make things even worse: cuts of over $600,000 in programs to high-risk youth, cuts to summer school and grandparents struggling to raise their grandchildren, cuts in substance abuse programs for mothers. And, to put salt on the wound, there is even a proposal to cut $2.5 million in mental health services for traumatized children. But we do have alternatives. We can raise funds for children by reversing the tax break given to upper income earners in 1999. All for the price of a cup of coffee. On Wednesday, an alliance of progressive advocacy groups, including Save Our Safety Net and D.C. for Democracy, are planning a “Safety Net Reality Tour” to protest the cuts — and they’re going straight to the heart of the D.C. government, the Wilson building on Pennsylvania Avenue. The alert asks, ” Engage Councilmembers to remind them that we need additional revenue in order to restore funding to the programs that keep DC residents safe, housed, and healthy.” Yet that perspective gets little attention in the media or among Democratic politicians. Plus, business groups have also opposed plans that would close some loopholes allowing companies to pay lower taxes. And theater groups have opposed a modest 6% sales tax on tickets. Presumably, the extra cost of tickets would somehow deter upscale patrons from attending searing dramas about social injustice. Naturally, the $2.3 million in revenue it could generate would be wasted on sheltering homeless mothers who don’t have the good taste to appreciate Strindberg revivals. The clout of the theater crowd seems well on its way to overwhelming any lobbying by liberal advocacy groups, and council staffers say the proposal to tax theater tickets is all but dead. All these pressures make restoring vital services to the needy even less likely, especially because advocates have to overcome the myth that businesses and residents are over-taxed compared to other jurisdictions. In fact, surrounding affluent suburbanites pay higher total taxes than D.C. residents earning over $150,000 do, and the city’s tax burden is the 25th lowest of major cities. Right-wing leaning reports have also ranked the District as among the least competitive places because of high taxes. But as Natwar Gandhi, the chief financial officer of the city, has observed, ” In the District, almost two-thirds of businesses pay only the minimum of $100 a year. When actual business taxes paid are ranked, the District falls in the middle of the pack.” Amazingly enough, the city population is so liberal and Democratic that a new poll by the DC Fiscal Policy Institute found that 90 percent of taxpayers earning over $100,000 favor raising taxes on the wealthy to help pay for social services. That’s a level of affluent professionals’ supporting raised taxes you’d be hard pressed to find outside of an Upper West Side cocktail party hosted by The New York Review of Books in honor of Naomi Klein, author of The Shock Doctrine . Even so, D.C.’s African-American Mayor has proposed a draconian budget attacking the $330 million deficit that apparently borrows its underlying theme from Rep. Paul Ryan’s GOP budget plan: balance the budget on the backs of the poor. “The similarity of our Democratic politicians with Republicans is that they put a greater emphasis on budget cuts,with the poor bearing the biggest brunt of it — and the safety net is seen as something without value. It’s just seen as a cost with no value,” says Ladduwahetty, a leading organizer with DC for Democracy. This GOP-leaning tilt has been exacerbated by the vacuum of strong leadership coming from the White House and the Democratic Party in recent years defending the importance of government and safety-net programs; instead the ground has been ceded to Republicans on the issue of the deficit and tax cuts for the rich. A startling two-thirds of all the $187 million in D.C. cuts are aimed at programs serving the most vulnerable residents of the city: the homeless, poor kids needing mental health services, working adults who need subsidized child care, the disabled and the very poorest families needing emergency cash assistance. Even before these cuts that could throw nearly 2,400 homeless families and single adults into the street , basic services have already been so shriveled that the city’s primary intake center , the Virginia Williams Family Resource Center, is turning away families seeking emergency shelter — and just calling their relatives on their behalf or giving them bus tokens to ride the buses all night as a way to catch some sleep with their babies in tow. One of those young women is Denise Gibson, a 26-year-old woman who was holding her month-old newborn in her arms when she testified in March at a hearing before Councilman Jim Graham, chair of the human services committee. After surviving as a ward of the state in foster care and other arrangements until 21, she’s been homeless since 2006. “I’ve been a nomad,” she said about her search for housing. Sometimes, she’s able to stays inside her mother’s one-bedroom apartment, but that only allows her to sleep on the floor with her baby boy and she soon has to leave. Most of the time, she explained, “Some nights I stay in my storage place, some nights I stay at the Greyhound like I’m waiting for a bus. Since December, 2010 when I went to Virginia Williams, they told us we can’t stay anywhere [in shelters] unless it’s hypothermia; there’s no room at the shelter. They didn’t bother to find us [temporary] hotels, they just give us bus tokens and send us off.” Earlier, officials at the intake center turned her away when she was pregnant, claiming that they couldn’t help her until she was a single mother. After she gave birth,”They can’t help me now that my son is here.” In his first of month of life, he virtually never slept in a regular crib or bed. Under supportive questioning by Graham, more disturbing details emerged of life for the poor in a city where, as in the White House and Congress located a few blocks away, austerity instead of compassion and job creation is accepted as a political fact of life. But Graham, at least, wasn’t accepting that philosophy and asked, “Where have you been living?” Gibson responded, “I sometimes stay in my mother’s apartment building.” “Do you go to your mother’s apartment?” “No, there’s no security there [ in the building] and and it’s easy for us to stay there. I go to the stairwell, and I have my bags.” The day before the hearing, she stayed all night at the Greyhound station, even after begging a “Miss Croft” at the Virginia Williams center for help in finding an overnight spot for her and her baby. A stunned Graham recapped: “You went to Virginia Williams with a baby, and you’ve been sleeping in a stairwell and a bus station and you spoke to Miss Croft, and there’s nothing to do?” He furiously called in front of him the acting director of the Department of Human Services, the same agency that Mayor Gray once led, and berated her for the agency’s inaction. In typical bureaucratese, the interim director, Deborah Carroll ,explained, “During hypothermia season, any participant who meets the definition of homeless should get shelter. We’ll have to investigate each case.” Of course she left unspoken the reality that if the weather is below freezing the DHS officals feel free to ignore requests for shelter from families, let alone individuals Eventually, after pressure from Graham, a space was found in the city’s one family shelter — but it will be almost certainly closed down except in sub-freezing weather if the Mayor’s budget proposal becomes law. Her dramatic case has, so far,been ignored by all major broadcast and print media outlets in the city, except for the dedicated blogging of Eric Sheptock, the “homeless homeless” advocate working with a donated laptop and cell phone, building thousands of “friends” and “followers” on Facebook and Twitter . But his online advocacy doesn’t start until after he walks or takes a bus each morning to get a breakfast handout four miles away. Sheptock has a stark, up-close perspective on the DC government’s new War on the Poor (as opposed to LBJ’s War on Poverty): “To make a long story short, they want to push the poor out of the city,” he says. “They don’t want a place where the poor and homeless can come.” He adds, “They won’t want to wait to end the culture of dependence: they just want poor people to get out of town. They’re defunding affordable housing , they’re decreasing housing production, they’re shutting down shelters, breaking down encampments. You don’t prevent homelessness, you don’t cure it, you don’t want to shelter them.” As a list-ditch effort in the face of political indifference, he’s starting to try to organize the homeless themselves. He also wonders, “I don’t know why Mayor Gray is so callous.” Yet to today’s new pro-corporate state and national Democrats, reflecting the winner-take-all political trends that have accelerated during the Obama era, “These people are seen as sort of dispensable, and don’t deserve the social safety net. It’s part of an increasingly conservative trend in the Democratic Party,” says Kesh Ladduwahetty. Janelle Treibitz, the chief Campaign Organizer for Save Our Safety Net DC adds, “We’d like council members to take a stronger stance opposing cuts.” A few councilmembers, especially Jim Graham, have been very outspoken, but most of the efforts to restore some cuts are being done behind closed doors with little effort to rally the public behind them. Advocacy groups, including DC for Democracy and Save our Safety Net, have a total of a few thousand supporters, and while they’ve generated hundreds of emails, they haven’t been able so far to deluge the government with phone calls, reframe the debate or garner extensive media coverage. That could start to change next week, when S.O.S. is organizing with its allies next Wednesday, May 18th what it’s calling a “All-Hands-On-Deck-Action Day” inside the DC government main building, the Wilson building. But the harsh realities of the new Democratic politics remains, even in this most liberal of cities. At a hearing on the budget this week, led by by the scandal-plagued Chairman of the City Council, Kwame Brown, best known for demanding a “fully loaded” $1900- a- month leased SUV from city officials, activists challenged his opposition to raising taxes, the deadlocked council’s complacency, and the council leadership that has ignored public opinion favoring preserving social programs. “Some members of this Council have stated their opposition to any income tax increase. They owe the public an explanation as to why they would sooner ask a homeless person to live on the street rather than ask our wealthiest residents to pay taxes in line with their suburban counterparts,” Kesh Ladduwahetty argued. Even an otherwise liberal council member, Mary Cheh, a respected law professor who represents the 70%-plus white Ward 3 that’s the city’s richest, opposes raising taxes even to save social services. While declining to be interviewed for this article, she posts on her website for constituents her GOP Lite opposition to raising taxes, mixed with vague promises to find revenues elsewhere. “It is vital for our continued growth and prosperity that we shed our reputation as a high tax jurisdiction, and we have struggled very hard to do that over the past few years. Increasing the rate on incomes over $200,000 will send precisely the wrong message,” she says. “But, rather than support the income tax rate increase, I am looking at other ways to generate revenue or save money that will allow us to avoid the hike in income tax rates and restore some of the human services cuts.” Jeremy Koulish, who chairs DC for Democracy’s budget committee, directly challenged Council Chairman Kwame Brown and his allies on their allegiance to what used to be Democratic Party values. Noting the poll that showed 85% and above approval for raising taxes, he declared, “Certain politicians and a chunk of the city’s establishment are not listening. Who are you listening to? Grover Norquist? The Chamber of Commerce? The Wall Street Journal editorial page? They’re all powerful forces, but that goes against the concerns of the people who live here. What we’re hearing from you is the kind of rhetoric we hear from Republicans.” And, like the fate of the national budget fight, the ability of local progressive groups to effectively organize will not only determine the outcome of this one local budget, but become a symbol of what’s needed to get even Democratic cities and states to serve people in need, not just corporations. ********************************** This article is updated from a piece that originally appeared on the Truthout.org website.

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WATCH: China’s ‘Ghost Cities’

May 17, 2011

So many new high-rise urban centers have sprouted across China in recent years that you can almost hear the bubble popping. Kangbashi, a city in Inner Mongolia, is the subject of Bloomberg’s first video installment on these underpopulated, but investment-heavy “ghost cities.” And Kangbashi is just one city in the government’s larger plan to create roughly 36 million affordable apartments in the country. Currently, only around 30,000 people live in Kangbashi. But that hasn’t stopped the government from investing $160 billion in the city’s real estate construction in order to provide accommodation for an expected one million people, Bloomberg TV reports. Could China be on the verge of a bubble? Much of the economy has been driven by real estate construction designed for an expected influx of people from rural farming areas to urban industrialized centers. But well-known economist Jim Chanos of Kynikos Associates tells Bloomberg he sure this will happen as planned. Many of the overly optimistic now could be too stubborn to admit it. “People don’t want to think that the Chinese growth model might not have as much to it as they thought,” Chanos says in Bloomberg’s video. See the first installment of Bloomberg’s Chinese “ghost city” series below.

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As Flood’s Path Widens, A Treasured Local Market Goes Under

May 16, 2011

YAZOO CITY, Miss. – At the far end of this sleepy town with Magnolia-lined streets, Hines Grocery has served up heaping plates of smoked pork ribs and homemade sausages for more than a quarter century. It’s the domain of John Hines, 72, and his wife, Eva, who live within eyesight of the wood-paneled meat market. Just down the two-lane highway is their “hog parlor,” where the pigs are raised and fed to supply fresh meat for customers. As of Saturday, the store and the parlor were beneath several feet of river water. The hogs were shipped away to higher ground, and after nearly 30 years of business, the family may be closing up shop for good. “It’s just bad news all around,” said John Hines, sitting on the back of his pickup truck, eyeing the lake across from his house that two days ago was a dry cotton field. “Everything we worked for over the years is going to get wet.” Saturday evening was the first night he and his wife were forced to stay elsewhere. The utility company cut the power to their house. And water from the swollen Yazoo River was lapping at their back porch, bringing logs and debris from miles away into the yard. “We woke up, saw the water and said, ‘It’s time to go,’” Eva Hines said. For now, they’re staying with their son-in-law’s family. But they’re looking for a place to rent on higher ground, as it could be more than a month before the floodwaters begin to recede. The crest of the Mississippi River is supposed to reach Vicksburg, Miss., on Thursday. That’s where the Yazoo River normally feeds in. But the historically high Mississippi has forced smaller tributaries like the Yazoo to essentially flow backwards, spilling over into farmland and low-lying neighborhoods. ( CLICK HERE to see photos of the flooding along the Mississippi ) The fertile, sun-splashed farmlands of Yazoo County have quickly begun to resemble a sea, crisscrossed with an occasional road. Driving around this section of the Delta is a frustrating endeavor, as roads that were open half an hour ago can close on a whim. The Hines home is on a road marked “closed,” as is the grocery store. On Sunday, the couple was enjoying the final few hours before the house and all roads leading to it were submerged. “We’re going to pack up a few more things in the truck and then get to high ground,” John Hines said. “We don’t know what’s next. One day at a time.” Unlike a tornado or a hurricane, which can destroy everything in a split-second, this kind of disaster plays out in slow motion. Excruciatingly slow motion. A few friends drove by on Sunday to check on the couple. “Just watching the water rise,” John Hines said. “It’s almost like watching paint dry.” The submerged Hines Grocery Hines has been a cotton and soybean farmer most of his life. Up until four years ago he still tended to the fields across the road from his home and near where he kept the hogs. But when he first bought his home on the outskirts of Yazoo City in the mid-1980s, he and his wife noticed the abandoned hog stables down the highway nearby. “We decided we might kill a few of them hogs and see if we could sell ‘em,” he said. That grew into the grocery business that has become a favorite among locals, specializing in a range of meats, from smoked pork to deer sausage. All the work is done on site: the meat is processed and smoked in the back of the store. Locals rave about the lunch specials: pork chops on Tuesday; smoked ribs on Friday. “That’s about the best place to eat anywhere around here,” said farmer Zack Killebrew, who works the fields just behind the store and reflected on lunches of ham and pulled pork. Now the store is essentially gutted. The stainless steel cutting machines, tables and dishes are all sitting in an eighteen-wheeler in the Hines’ church parking lot, up in the hills of Yazoo City. “Twenty-five years of it, all in that trailer,” Eva Hines reflected. “We’ve just got to refocus now.” As local spectators drove the near-flooded highways, snapping pictures and video of land giving way to water, John Hines took a seat on the gate of his pick-up truck, while his wife reclined in a lawn chair. “We’ll just sit here and watch the water rise,” he said.

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Video: Ski Lifts May Provide Economic Boost to Rio De Janeiro

May 13, 2011

May 13 (Bloomberg) — A new cable car system in Rio de Janeiro is expected to provide economic benefits as well as a reduction in crime. The cars, similar to ski lifts, are used to transport people through the city’s hilly terrain. Cecilia Tornaghi reports on Bloomberg Television’s “InBusiness with Margaret Brennan.” (Source: Bloomberg)

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Dave Johnson: Sarah Palin and Boeing CEO Tell Government Who the Boss Is

May 13, 2011

What can a democracy like ours do when giant companies say, “Rules? We don’t need no stinkin’ rules! We don’t got to pay you no taxes!” and “We will just move out of your puny country if you try to tell us what to do.” Government is beginning to enforce labor laws again , with the National Labor Relations Board (NLRB) filing a complaint against Boeing for retaliating against employees for legitimate union activities. In response Boeing’s CEO questions government’s “authority” to tell big businesses like Boeing what to do, saying companies like his can just move “overseas.” Sarah Palin echoes the complaint, saying businesses can just move to “more business-friendly countries.” These are direct challenges to the democracy we fought to build. Boeing Threatens “Overseas Flight” Boeing chairman, president and CEO Jim McNerney has an op-ed in the Wall Street Journal in which he challenges the “authority” of our democracy to regulate giant multinational corporations. “The NLRB is wrong and has far overreached its authority. Its action is a fundamental assault on the capitalist principles that have sustained America’s competitiveness since it became the world’s largest economy nearly 140 years ago. We’ve made a rational, legal business decision about the allocation of our capital and the placement of new work within the U.S.” McNerney essentialy confirms that it was union activity that led Boeing to decide to open a plant in anti-union North Carolina, “Among the considerations we sought were a long-term “no-strike clause” that would ensure production stability for our customers, and a wage and benefit growth trajectory that would help in our cost battle against Airbus and other state-sponsored competitors. … Union leaders couldn’t meet expectations on our key issues, and we couldn’t accept their demands that we remain neutral in all union-organizing campaigns…” Like the movie stereotype, poking his finger in your chest, “You got a problem with that?” McNerney goes on to call the NLRB enforcement “brazen regulatory activism” that “could accelerate the overseas flight of good, middle-class American jobs.” There it is, the threat, basically, “We will just move out of your puny country if you try to tell us what to do, and we will take your jobs with us.” Boots On Necks Sarah Palin, in her Facebook post, Removing the Boot from the Throat of American Businesses , blasts President Obama’s “appointees at the National Labor Relations Board (NLRB) who have their boots on The Boeing Company’s neck.” Palin explains that business is the boss now, not We-the-People democracy, writing, Does the President realize the real concern here is not that businesses will choose to locate in one state over another? It’s that businesses will choose to locate in other countries because thanks to the Obama administration’s job killing policies and over-reaching regulatory boards the business climate in the United States is growing toxic. Basically, she says government ought to just get out of the way of the plutocrats, because big, multinational businesses have so much power over democracy that, … eventually every state will suffer when businesses declare “enough is enough” with these tactics and decide to relocate in more business-friendly countries. Once again, the threat: Mess with us and we will leave and take your jobs with us. Whose Boot Is On Whose Neck? To be clear, Palin does not mean this as a call to strengthen democracy and get these companies and their threats under control. She is not complaining that these companies do not want to follow our rules and pay decent wages, offer benefits, protect worker safety and protect the environment. She is saying the United States should change and become more “business-friendly” — like the non-democracies that suppress labor rights, pay low wages, and lock you up if you complain. “Free Trade” has allowed businesses to cross borders to “business friendly” non-democracies to escape the protections democracy offers us. It pits exploited workers in these “business-friendly” countries against our own democracy-protected workers, forcing a race to the bottom in wages, working standards and living standards. And it lets them avoid taxation, defunding our democracy’s ability to enforce regulations and laws If we don’t do what these giant, powerful companies tell us to do, and abandon the protections of democracy that we fought so hard to achieve, they will just pack up and leave and take our jobs with them. Just whose boot is on whose neck? The question is why do we let them do this, and what can we do about it? The following is adapted from April’s post on the NLRB actions, Does Government Know Who The Boss Is? Who Is Boss? Do We, the People have the ability to enforce our laws? Do we have the power to tax corporations and the wealthy? Do we have the power to keep the protections and opportunities our democracy had provided? Democracy provides us with safety protections and fair wages. We fought so hard to build and maintain this democratic society so that We, the People could share the benefits. We passed laws allowing union organizing, as a balance to the immense power of corporations and wealth. We passed laws prohibiting companies from telling workers, “Work for what we give you or don’t eat.” And for a time this built our prosperity. But we let the protections slip , and allowed companies to cross borders to escape the protections democracy offers — to non-democratic countries like China where workers have few rights, where pay is low, environmental protections practically non-existent. Companies locating manufacturing in places like have huge cost advantages over companies located in democracies that respect and protect the rights of citizens. The Threat Against Us Won’t companies just move out of the state/country if we try to enforce labor laws or tax them? Won’t China just stop selling to us or dump our bonds if we apply a tariff to protect democracy, or try to enforce trade laws? Won’t the rich just pack up and move or stop working if we don’t just give them everything they want? Won’t they move even more factories out of the city/state/country if We, the People try to demand our rights? We Still Have The Power Here’s the thing. We, the People still have some power left in our hands. For one thing we still offer a huge, prosperous market to sell into. We still have the power to make demands on those who would like to sell things to us. We can apply a “democracy tariff” to goods made by exploited workers so these goods do not have a price advantage over goods made here. And we can choose to enforce tax laws, and wage laws, and tariffs, and labor laws, and trade laws to protect and strengthen what remains of our democracy. But we can only do this if we decide to stand up for ourselves and do something about what is happening. We have to put our foot down, and demand that our politicians listen to We, the People and do what we say . It is time to get organized, to talk to neighbors and relatives, to show up at town hall meetings and protests. We can demand that news media begin to cover more than just the corporate/conservative viewpoint. We can go out and register others to vote, and get them to the polls, and demand that votes be counted accurately. We can take back our democracy and put We, the People back in charge. This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture . 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PHOTOS: Thousands Of Teachers Swarm Wall Street In Protest

May 12, 2011

Thousands of teachers, social workers, union members and more took part in a march Thursday against Mayor Michael Bloomberg’s plans for wide-ranging budget cuts — and against the Wall Street bankers they blame for the city’s budget woes. Activists reported that the NYPD had arrested several marchers, but the demonstration took on a mostly joyful cast, with colorful signs, raucous chants and even a stilt-walker. The May 12 Coalition ‘s organizers promised a big turnout of more than 10,000 marchers, and while immediately pinning down the crowd’s size proved difficult, at least that number turned out. Demonstrators from the United Federation of Teachers (UFT) alone, which faces more than 4,000 teacher cuts if Bloomberg’s budget is enacted as is, numbered in the thousands. Rev. Al Sharpton, UFT President Michael Mulgrew and an array of city councilmembers and state elected officials laid the blame for the budget cuts squarely at Bloomberg and Wall Street’s feet. “Wall Street recovered, hedge funds got stimulated, and now they want to lay off teachers and close day care centers,” Sharpton said. “We’re going where they sent the money,” he said of the march. Organizers claimed the city could prevent budget cuts by reinstating the state’s “Millionaire Tax,” ending subsidies for large companies that failed to meet job-creation targets and renegotiating city contracts with the big banks . They estimate their proposals could save New York City $1.5 billion and billed the event as a demonstration not just against the Bloomberg budget plan but also as an effort to “make the banks pay.” Randi Weingarten, president of the UFT’s parent organization, the American Federation of Teachers, noted she has traveled the country in the past few months fighting against teacher cuts in states across the nation. “I never expected to come home to see New York act like Wisconsin,” she told the crowd. Weingarten, like many others at one rally stage dedicated to the teacher cuts, disputed the Bloomberg administration’s argument that it cannot dip into a rainy day fund to pay for teachers’ salaries. “There are lots of places across the country where there are real budget crises,” Weingarten said. “New York is not one of them.” Ralliers included more than just teachers. A diverse coalition of groups took part in organizing the event, from the Coalition for the Homeless to the Communications Workers of America to HIV/AIDS advocacy organization VOCAL-NY. Rev. John Magisano, a pastor at a Chelsea church, said he was worried the cuts forecast in the administration’s budget could harm his neighborhood’s seniors and gay community. “Everyone’s feeling the pain but them,” he said of the country’s large banks. The mayor’s spending plan would cut $30 million dollars from programs for the homeless. Advocacy group Coalition for the Homeless attended the march in protest, along with members of the population they serve. “I’m out here because we have no home,” said Kassandra Ward, who pushed her son in a stroller at the rally. She said she lost her job and home as a result of the recession, and was worried that the mayor’s budget would make her situation worse. “The city and the banks, they’re taking out money… they’re not doing anything.” Devon Murphy, a teacher at Passages Academy, said he attended “in solidarity with all the teachers across New York City.” He was not sure if the mayor’s cuts might hit him and his colleagues, but wanted to come anyways. “I don’t have a clue if it’s going to affect me,” Murphy said, “but it will affect some of us. You never know.” Some unions have charged that Bloomberg’s budget, proposed last Friday, serves more as an opening negotiating gambit than a final word on how many jobs and programs the city will cut. Murphy said he was not sure how serious the mayor was about his cuts. “He’s a hard person to read,” he added.

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Marshall Auerback: Revenue Sharing for the States: How It Works, Why We Need It, and Why Nixon Liked It

May 11, 2011

Cross-posted from New Deal 2.0 . Our policymakers continue to believe that they must first ‘get credit flowing again’ to restore output and employment. Unfortunately the reverse is the case: restoring output and employment will restore the flow of credit. Creditworthiness precedes credit. And yet, as we get closer and closer to D-Day on the debt ceiling limit, the negotiations continue to turn on how much income the government should drain from the economy, even as private sector activity continues to stagnate. All moves to date by the Treasury and Federal Reserve have only served to shift financial assets between the public and private sectors. And that includes quantitative easing . Nothing has directly added to aggregate demand (the overall demand for goods and services). The economy has therefore continued to deteriorate, with only the ‘automatic stabilizers’ like unemployment insurance slowly adding financial assets and income to the private sector as the counter-cyclical deficit rises. The rate of federal deficit spending now exceeds around 8% of GDP and seems to have begun moving the economy sideways, but has been insufficient to offset the impacts of the worst recession in over 70 years. Indeed, the combination of a tepid fiscal response — which appears to have been just enough to ward off a second Great Depression — and the premature fiscal withdrawal are largely to blame for the weak and teetering recovery. Worst of all, most of the fiscal packages have been spent. That suggests that in spite of all of the cheerleading by US officialdom and the beneficiaries of this Potemkin prosperity, we will not record significant gains in employment until real output of goods and services exceeds productivity growth. Withdrawal of yet more fiscal stimulus, as the mainstream “experts” (who completely missed the Great Recession of 2008!) continue their call for further cutbacks in government spending, risks a repeat of the error that FDR made when he listened to conservative economic advisers in 1937. He slashed the budget deficit during the Great Depression — causing a renewed surge in unemployment and the extension of the depression. The most immediate crisis, deserving attention before any other, is in the states and cities. Yet assistance to the states is being cut off at a time likely to forestall economic recovery. State and local budgets should not be cut. But how to prevent this? Here’s an idea: By recreating a revenue sharing program for the states, with a pass-through to cities, on a scale sufficient to plug the budget gaps. How much is needed? As James Galbraith has noted , the federal government’s fiscal aid to the states has hitherto only offset the job cuts imposed by falling revenues and balanced budget requirements. He therefore suggests a number of practical measures to enhance this revenue sharing: Federalizing Medicaid may be the most effective and practical way to achieve this. The alternative is open-ended general revenue sharing: on the condition that states neither raise nor lower their tax rates, the federal government should supply the funds required to close their budget gaps and to maintain public services at baseline levels, for the duration of the crisis. President Obama could well point out that revenue sharing has Republican lineage; it ought to be a bipartisan cause today. It was Richard Nixon who first introduced the concept. Nixon viewed the federal bureaucracy as a poor revenue manager and argued that much counter-cyclical spending should go to the states, as they are closer to people’s needs and more directly hurt by falling revenues. But instead of simply cutting taxes, as later conservatives would, he proposed a new system called revenue sharing, which redirected funds to states and municipalities. The federal government would collect taxes and local governments would spend the money. Passed after contentious debate, the State and Local Assistance Act of 1972 initially delivered $4 billion per year in matching funds to states and municipalities. The program, which distributed some $83 billion dollars before it was killed by Ronald Reagan in 1986, proved enormously popular. It is important to remember that a sovereign government with its own currency can always financially afford such a program. By virtue of its position as issuer of the currency, the US Federal government could promote employment, output, income, and private expenditure through the expedient of revenue sharing. By contrast, US states, as users of currency, are reliant on this counter-cyclical fiscal policy to mitigate the destructive effects of economic downturns — particularly unemployment and the suffering it causes. In the words of Erik Dean, the states “cannot run budget deficits without risking credit downgrades and insolvency. Recessions typically diminish revenues for these users of the currency at the very time that their expenditures are most needed.” As an example, consider Hurricane Katrina. True, the rescue package was marred by incompetence, but how was New Orleans able to rebuild, given the underlying financial condition of the state of Louisiana? Simple, as David McWilliams noted in today’s UK paper, “The Independent”: The United States cavalry rode in to save New Orleans and the State of Louisiana. The President declared a state of emergency, Treasury wrote the cheques and the Federal Reserve credited Louisiana’s accounts. They then spent those dollars on cleaning up the city. So the central bank credited the account of the State of Louisiana because emergency economic conditions meant the State needed it. The State issued no bonds; there were no IOUs, except that the deficit of the US rose. There was no effect on inflation. Yes, we have recovered from the worst of the crisis. But it is delusional to believe that economic recovery can really get underway until we have added something close to 10 million jobs. The current level of job growth will not see us get anywhere near that target for at least another 3-4 years. Indeed, in the absence of revenue sharing, we are likely to see more attacks on workers of the kind that has characterized recent budget battles in Wisconsin and Michigan. Wall Street crashed their pensions and created the fiscal crisis now afflicting the states. But this administration is still caught in the grips of that failed economic paradigm. If President Obama were to fight for revenue sharing, he would develop tens of thousands of local government allies. He would also have a very powerful issue with which to fight the next election, as well as a winning economic argument.

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Don Tapscott: The Need to Reinvent Venture Capital

May 10, 2011

The good news about Schumpeter’s creative destruction is that, thanks to the Internet and digital tools, it has never been easier to start a company. One study found that the availability of open source software, cloud computing, and the rise of virtual office infrastructure has driven the cost of launching an internet venture down from $5,000,000 in 1997, to $500,000 in 2002, to only $50,000 in 2008. According to Austan Goolsbee, Chairman of the Council of Economic Advisers, in the past 13 years, start-ups created more than 40 million jobs. One study revealed that over the last 30 years nearly all net job creation in the United States occurred in firms less than five years old. So today’s lower start-up costs should mean lots of new companies leading to lots of new jobs. But that’s not happening. The traditional venture capital system is choking on the sudden ease with which companies can be founded. It actually makes it harder for start-ups to find the money and also the attention they need. That’s because more companies receiving investment means more companies to supervise and more demands on the investor’s attention. After all, VCs usually add a lot more than just money. They also provide a supportive environment, make introductions, assist with strategic sales, help recruit top talent, and find customers. But what happens if you run a $1 billion fund and the companies knocking on your door only want seed funding of $50,000? After all, $1 billion invested $50,000 at a time, would result in 20,000 deals to manage. “The problem,” according to a 2009 report by North Venture Partners, “isn’t the number of opportunities investors are presented with, but it is rather the lack of an efficient means of filtering the options.” Throughput, not supply, argues the report, is placing unnecessary constraints on today’s innovation system. “How do investors find, filter and fund the most promising new opportunities in a deep ocean of possibilities? The truth is they can’t,” the report concludes. So venture funds are trying to move upstream, looking to do seed deals with $40 million plus. But a handful of new companies are exploring a different option. Sean Wise, a management professor and venture capitalist, leads one of a growing number of outfits determined to prove that a form of community-powered venture capital can both filter the global wealth of opportunities and channel more intellectual horsepower into making each investment successful. His new venture fund, called VenCorps, uses mass collaboration at every stage of the process. Just as Wikipedia crowdsourced the publication of expert articles, or Threadless works with customers to design t-shirts, VenCorps is leveraging collaboration. He’s deploying the power of mass collaboration not just to the process of choosing which start-ups to fund, but to help grow those start-up ventures after the investment is made. “For Venture Capital 2.0 to succeed” says Wise, “there will need to be exponentially more people involved.” The money being invested by VenCorps in small companies comes from their own fund, but the choice of where to invest it belongs to the VenCorps’ community. Founders from around the world log on and register their start-up at www.VenCorps.com . There, they can upload a video elevator pitch, share some biographic details and/or post an executive summary. The community at VenCorps (made up of thousands of entrepreneurs, scholars, scientists, angel investors, service providers and government officials) then reviews and ranks each entry using a five-criteria weighted scorecard. During a challenge the top nine start-ups (as determined by the community) go on to the next round, where they can win an investment, typically $50,000. That may not sound like a lot in typical VC-terms, but it’s enough to kick-start a small enterprise as some of VenCorps early successes have demonstrated. Post investment, the community continues to help the startup. The theory is that “many hands, make light work” or as Kevin Kimberlin, Chair of the private equity firm behind VenCorps, puts it: “VenCorps is 21st century barn raising. Instead of relying on three experts to put in 1,000 hours each, you rely on 1,000 people putting in three hours each.” The VenCorps platform uses the web to offer creative new ways to link up start-ups to get them access to not just cash but also to support and prominence. VenCorps uses social networking to give start-ups the keys to succeed, faster, cheaper, and more equitably. While VenCorps is unlikely to challenge major VC firms anytime soon, the company is giving a chance for many more promising ideas to reach the stage where larger VC investment may be warranted. Crowdsourcing venture capital is also a means for the government to assist with job creation. The Boston Innovation District is a good example. The District is a large parcel of the South Boston waterfront undergoing redevelopment, and the city is looking to attract start-ups. “We are creating a hub of knowledge, creativity and inspiration — an Innovation District where new ideas, new businesses and more jobs will come to life,” says Mayor Thomas Menino. So Boston teamed up with VenCorps to run the Welcome Home Challenge. Companies used the VenCorps site to promote their business or business plan. Entrepreneurs, innovators, stakeholders, the general public, funders and organizations were then encouraged to vote on these submissions, supporting those they think are a best fit for the Innovation District. At its core the VenCorps concept is to supplement some of a start-up’s cash capital requirements with community “enthusiasm capital.” VenCorps gives entrepreneurs the ability to engage the community to help launch and develop ideas into start-ups, then into successful businesses and hire people. In the end, this feedback proved as valuable as the cash injection made by VenCorps according to Bill Starr from MyLifeList who won the Boston Challenge. “I am really excited by the opportunity to have VenCorps as a Seed Investor. We came for the cash, but stayed for the community.”

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Google Reportedly Plans Large Office Development in Mountain View, CA

May 9, 2011

Google Inc. has reportedly agreed to pay the city of Mountain View, CA $30 million to lease nearly 9.5 acres near Shoreline Boulevard, where the Internet giant plans to build an office project totaling up to 600,000 square feet. With the Mountain View based company about to embark on a hiring spree, it has hired Ingenhoven Architects, a German firm that specializes in sustainable architecture, according to the San Jose Mercury News. According to…

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Nearly Half Of Detroit Is Functionally Illiterate, Report Finds

May 7, 2011

Detroit’s population fell by 25 percent in the last decade. And of those that stuck around, nearly half of them are functionally illiterate, a new report finds. According to estimates by The National Institute for Literacy , roughly 47 percent of adults in Detroit, Michigan — 200,000 total — are “functionally illiterate,” meaning they have trouble with reading, speaking, writing and computational skills. Even more surprisingly, the Detroit Regional Workforce finds half of that illiterate population has obtained a high school degree. The DRWF report places particular focus on the lack of resources available to those hoping to better educate themselves, with fewer than 10 percent of those in need of help actually receiving it. Only 18 percent of the programs surveyed serve English-language learners, despite 10 percent of the adult population of Detroit speaking English “less than very well.” Additionally, the report finds, one in three workers in the state of Michigan lack the skills or credentials to pursue additional education beyond high school. In March, the Detroit unemployment rate hit 11.8 percent, one of the highest in the nation, the U.S. Bureau of Labor Statistics reported last month. There is a glimmer of hope, however: Detroit’s unemployment rate dropped by 3.3 percent in the last year alone. Detroit Mayor Dave Bing and Michigan Governor Rick Snyder have been aggressively attempting to reinvent the once-great Motor City. Last year, the Wall Street Journal reported that then newly-elected Mayor Bing planned to tear down 10,000 of the city’s 90,000 abandoned properties.

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