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Dennis Santiago: FDIC Shutters Banks in Illinois and Indiana

by Dennis Santiago on February 11, 2012

Huffington Post…

On Friday, February 10, 2012 the FDIC shifted bank closure activity from the South to the center of the country this week failing Charter National Bank and Trust in Hoffman Estates, Illinois and SCB Bank of Shelbyville, Indiana. SCB at $200B assets was the larger of the two and began to hemorrhage significantly in the 2nd quarter of 2011. It will reopen as part of First Merchants Bank, National Association on Monday. Charter National Bank and Trust was down to $98M in assets as of 3Q2011 and had been living with elevated stress indications from Institutional Risk Analytics (IRA) since March of 2009. Like SCB, Charter also experienced an increase in operating loss rates beginning around the 1st to 2nd quarter of 2011. Charter will reopen as part of Barrington Bank & Trust Company, National Association on Monday. Complete forensic reports can be found here, Charter National Bank and Trust – Hoffman Estates, IL SCB Bank – Shelbyville, IN

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Dennis Santiago: FDIC Shutters Banks in Illinois and Indiana

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(MENAFN) Air France-KLM said that by the end of 2014, the airline would reduce its debt by USD2.53 billion, reported Gulf News. The Franco-Dutch group added that it would suspend staff salaries, …

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Air France-KLM plans eyes USD2.53b debt slash

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Malaysia’s Trade Rises 8.7% in 2011

February 11, 2012

(MENAFN – Qatar News Agency) Malaysia’s trade hit a record high 1.27 trillion ringgit ($422.6 billion) last year, an increase of 8.7 percent from 2010 as exports rose 8.7 percent to 694.55 billion …

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China, Canada Sign USD 3bn Deals

February 11, 2012

(MENAFN – Qatar News Agency) More than twenty Chinese and Canadian companies on Thursday signed cooperative deals of about 3 billion U.S. dollars on the sidelines of Canadian Prime Minister Stephen …

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China January exports fall 0.5% yr/yr

February 11, 2012

(MENAFN – Saudi Press Agency) China’s exports in January fell 0.5 percent from a year earlier, the official Xinhua news agency reported on Friday, well below market expectations for a rise of 4.8 …

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Switzerland: An icon of endless natural beauty

February 11, 2012

(MENAFN – Arab News) Switzerland does indeed remain a premier icon of natural beauty the world over. A recent trip covered the cities of Montreux, Interlaken and Lucerne, considered by some in the …

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Check Your Statement: Citibank Users Found iPad App Payments Made Twice

February 10, 2012

Customers who use Citibank’s iPad bill-paying app might want to pay closer attention to their bank statements: A technological glitch recently caused the app to charge an undisclosed number of customers twice for bank payments. As early as last summer, Citibank received anonymous complaints, sent to the Apple App Store, about the double charges, according to Andrew Brent, a Citi spokesman. Months later, in late December, the bank detected that its app was to blame for problem. Since then Citibank has alerted affected users and reimbursed them for extra charges and any fees incurred. Brent attributed the lag between when the company first found out about the issue (in July) and when officials began alerting customers (in December) to the small number of complaints involved. One user had anonymously reported in July that a charge was duplicated as a result of double tapping the screen, according to Brent. He added that there was nothing to suggest that the incidents were linked to the iPad app itself. Citi later discovered that the app had been programmed to reattempt any transaction disrupted by a network error on the first try. The bank launched an update to its iPad app on Jan. 31. The glitch was first reported by The New York Times on Thursday. The issue affected less than 2 percent of transactions made via the iPad app, according to Brent. He declined to disclose the number of customers who use the bank’s iPad app and how many people were affected by the glitch. “We take seriously the functionality of our products and services as well as the satisfaction of our clients,” Brent stated in an email. “Upon discovering a technical bug in our Citibank for iPad app had caused a limited number of clients to encounter duplicate payments and/or transfers, we immediately fixed the technical issue. Even more important, we have reached out to clients who were impacted to ensure their individual situations are resolved completely.” Citigroup — which aims to be “the world’s digital bank,” according to Bloomberg — has encountered a series of tech glitches in recent years. Two-hundred thousand Citibank credit card holders fell victim to a hacker attack last June that exposed customers’ personal data. In 2010, Citigroup admitted that the bank’s iPhone app stored users’ confidential information on their phones, making the data vulnerable, according to the Wall Street Journal . The bank subsequently released an updated version of the app that it said patched up the glitch. According to American Banker , 25 percent of all mobile banking apps earned a “fail” rating as a result of security flaws.

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Some States Using Funds From Foreclosure Deal To Close Budget Gaps

February 10, 2012

Well, that was fast. Two states have already announced that they won’t be using all of their share of the $25 billion allocated in Thursday’s historic foreclosure settlement to pay its intended recepients — the homeowners and borrowers who saw the housing market collapse beneath their feet. Instead, in some areas, a share of those dollars is likely to be diverted to state budgets, in a bid to offset some of the massive deficits that states have been struggling with since the economic downturn , according to reports. In Wisconsin, Governor Scott Walker and state Attorney General J.B. Van Hollen have announced plans to use $25.6 million of the settlement money — about 18 percent of the $140 million Wisconsin will get in total — to plug holes in the state’s budget , according to the Milwaukee Journal Sentinel . As the MJS notes, this is a reversal of Walker’s previous opposition to using legal settlements to close budget gaps. Meanwhile, in Missouri, state Attorney General Chris Koster has said that he plans to put $40 million of Missouri’s settlement money — about 20 percent of the total $196 million — into the general state fund , apparently in response to Governor Jay Nixon’s call for a stronger college and university budget, Stateline reported. In the wake of Missouri and Wisconsin’s announcements to use the settlement funds for purposes other than directly assisting borrowers — and with similar announcements possibly forthcoming from other states — critics have begun comparing Thursday’s deal to the 1998 tobacco settlement that saw some of the country’s largest tobacco companies agree to pay $246 billion over the next 25 years to fund public-health initiatives. Much of that money has since been spent on other things, according to the Campaign for Tobacco-Free Kids, which estimates that states will receive $25.6 billion from the tobacco settlement this year, but only use 1.8 percent of it to combat tobacco use . If the news that some of the money from the foreclosure settlement won’t end up in borrowers’ hands is disappointing to some, it won’t be the first time this week that the deal has let someone down. While the settlement involves five of the country’s largest banks — Citigroup, JPMorgan Chase, Ally Financial, Wells Fargo and Bank of America — and an amount of money that has been called one of the largest mortgage settlements in history , many borrowers stand to realize practical benefits that are marginal at best. Some 1 million homeowners will receive material mortgage relief that may help them stave off a default, but another 775,000 borrowers who have lost their homes to foreclosure will receive payments of no more than $2,000 . And the settlement excludes mortgages owned by Fannie Mae and Freddie Mac, the massive mortgage agencies currently in government conservatorship, which means about half the country’s mortgages aren’t covered at all by the deal .

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WATCH: Tilted Kilt Employees File Sexual Harassment Lawsuit

February 10, 2012

Nineteen employees of the Celtic-themed “breastaurant” Tilted Kilt’s Chicago Loop location on Wednesday filed a lawsuit alleging that the eatery’s bar manager sexually harassed them. The lawsuit [ PDF ] contains disturbing details of incidents that allegedly occurred between the manager, the location’s owners and their scantily-clad staff at the restaurant, located at 17 N. Wabash Ave. According to CBS Chicago, Mark Roth, an attorney representing the women, accused the location’s former manager, whom he described as a “predator,” and the location’s owners of making numerous disturbing comments to his clients . “There were requests for sex,” Roth told CBS. “There were degrading comments that were made. Something that no woman should have to put up with anywhere, let alone by their manager in the workforce.” As the Chicago Tribune reports, the women in June filed a sexual harassment complaint with the U.S. Equal Employment Opportunity Commission, upon which they received “right to sue” letters . The women, according to the Tribune , allege a “sexually hostile, offensive, humiliating and degrading work environment” where, among the 30 incidents outlined in the lawsuit, the location’s manager and owners made comments such as “Meow, meow, you’re a dirty kitty” and “You don’t know what I’d like to do to you” to the employees. Women who spoke out against these remarks alleging were giving less busy shifts. According to Fox Chicago, other incidents included grabbing employees’ breasts, putting licking employees’ ears and attempting to kiss the women . The manager and many of the plaintiffs in the lawsuit no longer works at that specific Tilted Kilt location, according to the Tribune. A company spokeswoman said in a statement that Tilted Kilt “does not tolerate sexual or other types of harassment either within its own organization or within its franchisees’ organizations” and pointed out that the company utilizes a franchise model where each location is independently owned and operated , NBC Chicago reports. The chain is no stranger to controversy in its Chicago-area operations. When the chain opened a Schaumburg location, it was met with complaints from several area residents, including one who argued that the restaurant attracted “men that come in there want more than just hot wings .”

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’99 Percent’ Protest CPAC

February 10, 2012

WASHINGTON — The Conservative Political Action Conference drew crowds of protesters on Friday, as members of the Occupy Wall Street movement and labor groups demonstrated against the annual confab as a powwow for the “1 percent.” (CLICK HERE FOR LIVE UPDATES) Inside the Marriott Wardman Park Hotel in Washington, D.C., students affiliated with Occupy silently interrupted a speech by GOP presidential hopeful Mitt Romney. The protesters, wearing “We are the 99%” stickers over their mouths and shirts that read “If money is speech, poverty is silence,” were escorted from the building by security. While leading figures in the conservative movement continued to meet inside, outside the hotel the atmosphere was more raucous, with several hundred people rallying at noon beneath a giant inflatable “fat cat.” They held signs, chanted, and set up a few tents at the bottom of the hotel’s winding driveway. But when protesters began marching up the driveway shortly after noon, several D.C. police officers impeded their path and instructed protesters — and members of the media — that they needed to move back. Police said the driveway was private property and that those still on it risked arrest. The protest began moving back down the driveway as CPAC attendees watched from the sidelines. Police continued to keep protesters and members of the media off the driveway but allowed the protest to spill off the sidewalk, blocking the street. The protest saw a number of outlandish attendees, from the Brooklyn “Tax Dodgers,” a faux baseball team who satirically support former Massachusetts Gov. Romney, to “Candidate Walmart,” aka Ben Waxman, who said he was standing up for a corporation’s right to run for president. It also drew a mix of Occupy protesters, union supporters and members of local groups. “We’re protesting CPAC’s propping up of policies that don’t force U.S. corporations to pay their fair tax share, and really promote obscene income inequality in this country,” said James Adams, a coordinator with Our DC , another group of protesters that focuses on jobs. “The dreams of Americans who make up the 99 percent are being squashed by CPAC and their poster boy, Mitt Romney.” Although protesters expressed concern on issues from hydraulic fracturing, or fracking, to foreign policy, most said they were focused on economic policy. “We’re trying to create more jobs here in the District, and we feel by holding Congress and big corporations accountable for not paying their fair share of taxes, they can create more jobs by doing so,” said Dwayne Devoe, another member of Our DC. “A lot of them are talking about creating jobs, but at the end of the day, what they’re saying doesn’t really relate to their message.” Jeanae Paul, a member of Good Jobs Baltimore, said she was trying to call attention to the plight of the jobless. “I’ve been unemployed for over a year now, and it’s been really hard,” Paul said. “I’ve been going on interviews, but there’s no jobs out there. They’re non-existent. And it’s hard to feed my family, it’s hard to buy clothes, to celebrate the holidays.” Paul said she made the trip to Washington because she wanted the Republican candidates for president to hear stories like hers. “It’s important to let them know that we’re people, too,” she said. “We want to be heard. You know, they need to know the real stories, instead of listening to what their 1 percent is saying. Because we’re the 99 percent.” Brendan Duke, a spokesman for the Service Employees International Union, an organization of 2.1 million members, told The Huffington Post that there were 600 protesters on hand, including 300 unemployed workers from the D.C. area. He said the protest was scheduled to last until 2 p.m. Most CPAC attendees simply walked around the rally, but several stopped to speak with protesters. Byron Sanford, a Catholic University student who supports Rep. Ron Paul (R-Texas), seemed sympathetic. “I agree with Occupy Wall Street on one of the things they stand for — I think corporations are ripping off the American people,” he said, admitting that he was actually more comfortable with the atmosphere outside the conference. “I feel much better out here.” Others were less impressed. “I’ve been to a couple of these things, and it’s pretty typical — it’s the same slogans,” said John Sexton, who writes for Verum Serum, CPAC’s 2012 Blog of the Year. “Individually, they can be very reasonable, but in groups, you’re not thinking.” Another protest outside CPAC is planned for Friday evening. Michael Calderone contributed to this report. CORRECTION: The original version of this story quoted James Adams and Dwayne Devoe as members of Occupy DC. They are part of the group Our DC.

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Hundreds Of Millions More Dollars Of MF Global’s Money Thought Missing

February 10, 2012

The trustee overseeing MF Global’s liquidation said Friday that the shortfall between the funds under his control and the amount customers of the failed brokerage are expected to claim is at least $1.6 billion. The gap estimated by the court-appointed trustee, James Giddens, compares with his previous estimate of $1.2 billion. Giddens said in a statement Friday that the new estimate is based on his investigation and it could change again. Giddens has been combing through the accounts of MF Global since it filed for bankruptcy protection on Oct. 31. The collapse of MF Global, which was headed by former New Jersey Gov. Jon Corzine, was the eighth-largest corporate bankruptcy in U.S. history. Most of the $1.2 billion previously reported missing has been traced to customer accounts and banks. Regulators are investigating whether MF Global tapped money from clients’ accounts as its financial condition worsened. That would violate securities laws. Brokerages are required to keep customer money separate from the firm’s money. Unlike the previous figure, the new estimate of $1.6 billion includes about $700 million in customer money located in Britain. Giddens is in a legal dispute over that money with the administrator in Britain overseeing the liquidation of MF Global’s division in London. The new estimate excludes some customer claims that haven’t been filed yet. It also takes into account some funds that have been recovered since the earlier estimate was made in November. Giddens said about 40 percent of the claims filed by U.S. commodities customers of MF Global came from five states: California, Florida, Illinois, New York and Texas. Around 91 percent of the claims are for less than $100,000, according to his statement. Much of the missing money belonged to farmers, ranchers and other business owners who used MF Global to reduce their risks from the fluctuating prices of commodities such as corn and wheat. Giddens has returned about $3.9 billion to customers.

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Trader Joe’s Relents To Pressure, Signs Fair Food Agreement

February 10, 2012

Trader Joe’s relented this week and signed a Fair Food Agreement with the Coalition of Immokalee Workers (CIW), a community-based organization of mainly Latino, Mayan Indian and Haitian immigrants employed in low-wage jobs in Florida. The agreement requires the grocery store to pay a penny more per pound of tomatoes and to ensure better working conditions for tomato workers. In the past year, protesters have become a common sight at Trader Joe’s locations across the country in response to the chain’s refusal to sign the agreement . Chains like Taco Bell, McDonald’s, Burger King and Whole Foods all signed the agreement years ago. “This is nearly a 50 percent raise for the workers,” Barry Estabrook, the writer behind PoliticsOfThePlate.com and author of the book ” Tomatoland ” (about large-scale tomato agriculture), told The Huffington Post. “These are desperately poor people.” “We are truly happy today to welcome Trader Joe’s aboard the Fair Food Program,” said Gerardo Reyes of the CIW, in a jont press release issued by the coalition and Trader Joe’s. “Trader Joe’s is cherished by its customers for a number of reasons, but high on that list is the company’s commitment to ethical purchasing practices. With this agreement, Trader Joe’s reaffirms that commitment and sends a strong — and timely — message of support to the Florida growers who are choosing to do the right thing, investing in improved labor standards, despite the challenges of a difficult marketplace and tough economic times.” Although jointly issued, the press release did not have a comment directly from Trader Joe’s. The grocery chain told HuffPost via email that it had nothing further to say beyond the release. Estabrook, who last spoke to Trader Joe’s in the fall of 2011, said he found the company’s attitude to be “almost belligerent” when a group of religious leaders tried to present it with a petition in October of last year. But the CIW had a 40-city protest planned for this weekend , and Trader Joe’s may have felt compelled to finally sign on, he said. The protests have now been canceled. “Trader Joe’s presents an image of friendliness and fairness. When you’re doing that, you can’t very well have a group of people demonstrating in front of your stores,” Estabrook said. The CIW now plans to focus its attention on the major supermarket chain Publix, and has a six-day fast planned for next month. Trader Joe’s opened its first Florida store in Naples on Friday, one day after signing the CIW agreement. In a weird twist of fate, the store is located on Immokalee Road.

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S&P Downgrades Huge Number Of Italian Banks

February 10, 2012

MILAN, Feb 10 (Reuters) – Rating agency Standard & Poor’s downgraded 34 Italian banks on Friday, including heavyweights UniCredit and Intesa Sanpaolo, citing a reduced ability to roll over their wholesale debt and expected weak profitability. The move follows S&P’s downgrade of Italy’s sovereign rating last month to BBB+, part of a mass downgrade of nine euro zone countries. In a statement, S&P said its so-called Banking Industry Country Risk Assessment had worsened to group 4 from group 3 — out of 10 groups — reflecting its more negative view on Italy’s banking system. “Italy’s vulnerability to external financing risks has increased, given its high external public debt, resulting in Italian banks’ significantly diminished ability to roll over their wholesale debt,” it said. “We anticipate persistently weak profitability for Italian banks in the next few years, and a risk-adjusted return on core banking products that may not be sufficient for banks to meet their cost of capital. We believe this may be negative for the Italian banking industry’s stability.” Italian banks have borne the brunt of a sell-off in Italian assets since the euro zone’s third-largest economy was dragged into the single currency bloc’s debt crisis last summer. Because of their vast holdings of domestic government bonds, Italy’s top five banks have been asked to find some 15 billion euros by June to meet tougher capital requirements set by the European Bnaking Authority. Lenders have also been effectively shut out of wholesale debt markets and have increased their reliance on cheap funds from the European Central Bank. Italian banks tapped a whopping 116 billion euros of nearly 500 billion euros of three-year funds offered by the ECB last December, easing funding strains. A similar operation will be held at the end of February and analysts expect Italian banks to further increase their borrowing from the ECB. S&P said weak profitability and increased cost of capital could lead Italian banks to write down a large part of the goodwill they booked during a wave of industry consolidation over the past decade. Such writedowns forced UniCredit, Italy’s biggest bank by assets, to announce a 10.6 billion euro loss in the third quarter of 2011. Among the banks downgraded, Banca Monte dei Paschi di Siena and Banco Popolare had their rating cut below that of Italy’s sovereign debt. For a list of the banks affected by S&P’s downgrades, please click on

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Ron Davis: The Republican Nanny State

February 10, 2012

Republicans who support subsidies should stop their mass-manipulation. Rather than hiding behind hypocritical pro-market rhetoric, it is time to admit they have embraced their very own entitlement-boom that rivals the dreams of any European welfarist. Matt Kibbe recently wailed in Forbes about a “tort litigation nightmare” because a court granted a large award to a woman paralyzed from the neck down by a company’s negligence. And last week in the Wall Street Journal , Senator Ron Johnson of Wisconsin decried the EPA and the Department of Labor’s increased regulation because of its “job crushing… cost” to businesses. “Cost” is a strange adjective to describe all these rules when many actually serve to stop current subsidies. Senator Johnson unsurprisingly failed to mention the excruciating economic cost-benefit scrutiny applied to regulations by the Office of Information and Regulatory Affairs (OIRA), recently famous for rejecting the EPA’s smog rules. Both point toward an ironic truth: mainstream Republicanism has rejected market economics in favor of a subsidy-loving conservative nanny-state. Subsidies, as economists tell us, insulate people from the true costs (or consequences) of their behavior. And market efficiencies and the economic growth they create get undermined when people don’t pay full price. Even more disturbing, these handout-loving Republican pundits and politicians regularly and cynically deceive rank and file believers in personal responsibility by using free-market sounding language to distract citizens from their constituents’ reliance on public support. These interest group puppets start by pretending that the only subsidies come from governments. But any economist will tell you this is nonsense. Inefficient subsidies flow from more than just the national treasury. In fact, sometimes only the government can shut off this golden faucet. Economists call these decision-distorting efficiency killers “externalities.” An externality arises when part of the price of my behavior gets absorbed by someone else, forcing that person to subsidize my choice. For example, costs get externalized if a toy factory’s manufacturing process puts toxic chemicals in the groundwater, and the neighbors get stuck paying for part of the toy making process — by shouldering lowered property value, experiencing illness, or getting stuck with the bill for cleaning up the mess. This is one reason why we compensate people through lawsuits — to make sure the toy factory, not its neighbors, pays the full price for its behavior. But Republicans leaders seem bent on forcing their backers’ costs onto others. House Majority Leader Eric Cantor (R-VA) opposes greenhouse gas taxes, arguing they would “cost our economy billions of dollars [and] destroy jobs.” Certainly such taxes do encourage what economists call “creative destruction,” another market miracle where inefficient providers get put out to pasture. But then better providers take their place, which is why markets are good for business. The supposedly job-killing pollution taxes would remove the ventilator from these market-insulated companies and expose them for what they are — corporate welfare queens. When I drive a car, or operate a coal factory, many people pay the price for my emissions. These hurt other consumers and businesses, future citizens who clean up the mess, or Bangladeshis swamped by floodwaters. Whatever one’s position on climate change, we all know that pollution costs something , and when we pollute without paying the full cost — we act like people do on someone else’s dime. We overindulge. No wonder the misery of traffic. If Matt Kibbe had his way, he would eliminate the “tort litigation nightmare.” But doing so would allow a host of externalities, forcing people to subsidize others’ negligence. Consider medical malpractice compensation caps. If an architect makes $200k a year with ten working years ahead of her, and a surgeon commits professional negligence that destroys the architect’s ability to work, that poor architect faces a $2 million loss. But with a tort liability cap of $1 million, the surgeon will only pay for half the cost of his bad behavior. The injured architect would have to subsidize the surgeon’s practice. Systemic risk, also an externality, recently reared its ugly head. If, after Lehman collapsed, the banking sector had failed, its employees and stockholders would certainly have paid a tremendous price. But this would only amount to a fraction of the total cost paid by the rest of the world. Bailouts may have saved world markets from depression, but our citizens have paid dearly — recession, a feeble recovery, and mounds of debt to cover tax cuts and stimulus spending. But we can’t just bill the banks for this mess after the fact because the tab dwarfs bank resources. Unlike the polluting factory or the negligent doctor, a court judgment cannot make the banks face the full cleanup cost. We don’t begrudge banks for trying to turn a big profit, but citizens shouldn’t be forced to subsidize it either. Since we cannot afford to let the financial markets fail, systemic risk must be regulated up-front, rather than paid for after the fact. Those who fight bank regulations designed to minimize systemic risk actually work to preserve mammoth bank subsidies — because the banks can never take on the full risk-cost of their risky behavior. The list goes on. Globalization displaces workers, which means the displaced pick up most of the tab for our economic gains. The rising tide may lift all boats, but it drowns a few people too. When we refuse to compensate them accordingly — through retraining and other assistance — we force them to subsidize our fortunes. Accordingly, last summer, Senate Minority Leader Mitch McConnell (R-KY) threatened to block a free trade deal with South Korea unless the White House dropped the provision for the Trade Adjustment Assistance program, which helps retrain displaced workers. Mr. McConnell apparently believes these workers should subsidize the rest of us. The issues above are, of course, complex along many dimensions not discussed here. But the truth remains: Some kinds of taxes and regulations actually stop subsidies, and market rhetoric frequently hypocritically helps conceal colossal handouts. These Republican leaders are right about one thing. The jobs that rely on subsidies will be killed if externality entitlements get taken away. But they will be replaced by a more efficient, prosperous economy and the jobs that come with it. Forcing companies and people to internalize the costs of their behavior is not bad for businesses in general. Just the ones with their hands in someone else’s pocket.

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Ben Bernanke: Blame Housing For This Lousy Recovery

February 10, 2012

Housing, with some help from Wall Street, got us into the Great Recession, and it is housing that has made the recovery from that recession so slow and painful, Federal Reserve Chairman Ben Bernanke said today. “The state of the housing sector has been a key impediment to a faster recovery,” Bernanke said in a speech at the National Association of Homebuilders International Builders’ Show in Orlando, Florida on Friday. “In the typical economic recovery, a resurgent housing sector helps fuel reemployment and rising incomes,” he added. “But as you know all too well, that scenario has not played out this time.” Bernanke cited economic studies that suggest the collapse in home prices might be shrinking consumer spending, the largest engine of U.S. economic growth, by between $200 billion and $375 billion a year. Underwater homeowners are also unable to move to find better, higher-paying work or borrow against home equity to help with emergency expenses, Bernanke observed. So begins the vicious cycle in which clusters of foreclosed homes lower property values throughout entire communities and hurt property tax revenues, which lead to cutbacks in municipal services that push house prices still lower. Economists have seen evidence lately that the housing market might finally have hit a bottom after a collapse and slump that has lasted more than six years. But home prices and new-home construction are still in a deep pit despite record-low mortgage rates that have made housing theoretically more affordable than ever . The Fed helped push those interest rates to rock-bottom lows in part to support the housing market. But their efforts have mostly been met with frustration. Bernanke suggested the still-weak housing market might be making it hard for low rates to do much good. Banks, suffering from losses on bad mortgages are afraid of taking still more losses so tighten lending standards, making borrowing more difficult even at low rates. “The Federal Reserve, in its supervisory capacity, continues to encourage lenders to find ways to maintain prudent lending standards while serving creditworthy borrowers,” Bernanke said. “But the slow recovery of the housing market and the economy” and other factors are keeping lenders cautious. He also acknowledged that the recovery in housing will continue to be painfully slow, estimating that one million foreclosed homes owned by banks could hit the market each year “for the next few years,” keeping downward pressure on prices. One possible solution, he acknowledged, would be to turn some of these foreclosed properties into rental properties, to help meet rising rental demand. But he also acknowledged there was no silver bullet for housing. Without it, the recovery could stay slow and painful for a while longer.

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Adele Scheele: Making Meetings Mean Something

February 10, 2012

For some companies, the usual Monday morning meeting is becoming unusual. It is revamping itself, becoming a stand-up, short-lived check-in. For those who still endure the old sit-down conference table version, the format is unbearably predictable: the boss unceremoniously starts the meeting by reading the agenda, reciting the latest sales report, warning of anticipated obstacles, and then spends the remainder of the time discussing the pet peeves and projects of the few most vocal employees excluding everyone else. Or else there are the endless arguments over old issues that never get resolved. For many of us, coping with meetings is more stressful than doing the actual work — it often feels like not much is accomplished. Sixty to ninety minutes of tortuous boredom leads to anger, which, in turn, leads to withdrawing to keep from exploding or else becoming a comedian to camouflage emotions. Most of us are stuck in a frustrating situation we feel unable to change. Maybe the only people who don’t bristle during routine, energy-sapping staff meetings are the managers who call them and those unlucky ones whose jobs are even more unbearable than the meetings. Instead of increasing your blood pressure or clenching your jaws, why not try to turn the situation around to our own advantage? Here are some tactics that can lead you to a more effective meeting outcome and better mood: 1. Start by changing your own role. Play host early and greet people by asking each about some recent good news. Share yours too. 2. During meetings, compliment any good idea out loud and suggest ways it might benefit your group. If two ideas offered are similar or complementary, suggest a way to incorporate both. 3. When factual disputes arise, suggest an immediate decision on principle, rather than fact. 4. When the old, unresolved issue rears its ugly head again, suggest a way towards resolution; perhaps a debate. Offer to find someone who can act as a debate coach, working with your group divided into opposing teams. In a short time, perhaps only two hours, a rational decision can be forged to everyone’s relief. 5. When you want to introduce an idea, be strategic. Don’t bring it up by the usual method — flinging it into the middle of the table and hoping that others will respond. Nobody does. Ideas, even good ones, usually fall flat. Instead, prior to the meeting, garner support from your leader and several members of the team so that you are backed up and can ensure better results. 6. Invent more roles to play during different meetings. Ask questions to elicit action or piggyback on a good idea or project. Just don’t play antagonist or devil’s advocate more than once. 7. Summarize what has already been agreed to; note new agenda items from stray conversations for subsequent meetings. 8. After a major project, suggest that each team member tell what he or she has contributed. Then go around again asking them to tell what they would do differently if the project were repeated. Record their remarks from what they’ve learned and see how you can use them next time. Don’t be deterred by flack by others who think you are overstepping; try to get them involved too. You might talk to your manager about how to gather what’s been learned to make the next projects more effective. 9. Of course, not every plan will work every time. But it’s worth a try. More than a try. Not only does trying keep your anger quotient and your blood pressure down, but it gives you a chance to realize what the rest of your group craves — someone willing to change things so that they will work better. Let that someone be you! Make your luck happen!

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Awful Cover Letter To J.P. Morgan Laughing Stock Of Wall Street

February 10, 2012

It takes a lot to get noticed in this town, but there’s a right way and a wrong way to do it. An NYU undergraduate student named Mark has become the laughing stock of Wall Street after his awful cover letter to J.P Morgan made its rounds among NYU Stern alumni, the financial district, and then went viral online. A cover letter can make or break you in the job hunting game and Mark’s letter is a lesson in exactly what not to do. By boasting that he “managed to bench double [his] body weight and do 35 pull ups” while achieving a 3.93 GPA, young Mark invited the inevitable comparisons to the infamous Aleksey Vayner . There’s a fine line between convincing your potential employeer of why they need to hire you, and only you, and coming across as a pompous ass. There is no doubt Mark’s status as a triple major in Mathematics, Economics and Computer Science is impressive on its own, but throw in the fact that he held two part-time jobs, placed-out of two classes and managed to keep himself in top physical shape, and it’s safe to say he crossed the line. Mark’s cover letter also could have used an edit from an English major, who might have advised him to find a different way to express that he “can perform basic office functions with terrifying efficiency.” He ended the letter with a disclaimer asking J.P. Morgan to “Please realize that I am not a braggart or conceited, I just wanted to outline my usefulness. Egos can be a huge liability, and I try not to have one.” Nice. It’s a letter so obnoxious that it’s unclear if Mark sent it as a joke. According to Gawker, Mark is well aware bit of laughter he brought to the bankers on Wall Street. When asked if he’d gotten a job at J.P Morgan, he laughed, telling the website , “No, not at all. Didn’t you see my letter?” Joke or not, Mark is not alone when it comes to terrible cover letters. An applicant for a position as an API Engineer in New York City recently wrote : “I’m super awesome and have incredible experience compared to this — it includes the required experiences below plus I am trained in MMA fighting, am the mayor of multiple Chipotles, Starbucks, and locally famous restaurants in downtown NYC, and I type really fast.” And we can’t forget Roanald Dvorak’s cover letter for a office manager position, where he wrote : “Forget all the other candidates for Aviary, I am the BEST,” and listed his skills in bullet points: “Organizing shit? Check. Calling numbers and shit? Doublecheck. Customer support and shit? Mega-check. Faxing numbers and shit? MOTHERFLIPPING CHECK ALL OVER THAT.” At a time when even the most qualified applicants can’t find jobs , it’s questionable if sending over-the-top or ironic cover letters is a good idea — especially given the fact that there’s no expectation of privacy. Last year, Business Insider even posted 12 of the worst cover letters they received, redacting the names to provide some protection for those who made the list. READ THE COVER LETTER: 1/23/2012 J.P. Morgan Dear Sir or Madame: I am an ambitious undergraduate at NYU triple majoring in Mathematics, Economics, and Computer Science. I am a punctual, personable, and shrewd individual, yet I have a quality which I pride myself on more than any of these. I am unequivocally the most unflaggingly hard worker I know, and I love self-improvement. I have always felt that my time should be spent wisely, so I continuously challenge myself; I left Villanova because the work was too easy. Once I realized I could achieve a perfect GPA while holding a part-time job at NYU, I decided to redouble my effort by placing out of two classes, taking two honors classes, and holding two part-time jobs. That semester I achieved a 3.93, and in the same time I managed to bench double my bodyweight and do 35 pull-ups. I say these things only because solid evidence is more convincing than unverifiable statements, and I want to demonstrate that I am a hard worker. J.P. Morgan is a firm with a reputation that precedes itself and employees who represent only the best and rightest in finance. I know that the employees in this firm will push me to excellence, especially within the Investment Banking division. In fact, one of the supporting reasons I chose Investment Banking over any other division was that I know it is difficult. I hope to augment my character by diligently working for the professionals at Morgan Stanley, and I feel I have much to offer in return. I am proficient in several programming languages, and I can pick up a new one very quickly. For instance, I learned a years worth of Java from NYU in 27 days on my own; this is how I placed out of two including: Money and Banking, Analysis, Game Theory, Probability and Statistics. Even further, I am taking Machine Learning and Probabilistic Graphical Modeling currently, two programming courses offered by Stanford, so that I may truly offer the most if I am accepted. I am proficient with Bloomberg terminals, excellent with excel, and can perform basic office functions with terrifying efficiency. I have plenty of experience in the professional world through my internship at Merrill Lynch, and my research assistant position at NYU. In fact, my most recent employer has found me so useful that he promoted me to a Research Assistant and an official CTED intern. This role is usually reserved for Masters students, but my employer gave the title to me so that he could give me more work. Please realize that I am not a braggart or conceited, I just want to outline my usefulness. Egos can be a huge liability, and I try not to have one. Thank you so much for your time, and I look forward to hearing from you. Best, Mark

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Dennis M. Kelleher: First Bank Fraud, Now Political Fraud

February 10, 2012

First the banks committed massive fraud in originating and packaging mortgages, leaving the country littered with millions of little mortgage time bombs set to explode in the years after they lined their pockets and made their get-away. The poster child for this unconscionable conduct is Countrywide (now owned by Bank of America) and its CEO Angelo Mozilo, but they were just one of many, many culprits. Then when those mortgage time bombs exploded a few years later, those very same banks committed more massive fraud, this time by improperly charging homeowners fees and other costs, commencing unjustified foreclosures, and knowingly and intentionally filing false documents in court to foreclose on people when they never even bothered to check to see if they owned the mortgage they were trying to foreclose on. That is lying, cheating and stealing that would get anyone else in this country thrown in jail for many years. And, this was even worse than that because they filed falsely sworn documents in courts throughout the country as a routine practice. That is perjury (not that any of this is called criminal; no, these crimes are covered up with euphemisms ). This is very, very serious criminal conduct that was engaged in for years by the biggest banks in this country as a routine business practice. People go to prison for many, many years for crimes much less serious than that and these crimes merit long prison sentences and crippling fines. But, not if you’re a big bank. That is why people are so mad in this country. There is one standard for hard-working people and there is another standard for the wealthy, well connected, powerful, and, almost always, the big campaign contributors. The law gets applied to the former, often mercilessly and ruthlessly, but the law doesn’t apply to the latter, who get off time and again for nothing, next to nothing or by paying a window-dressing fine usually with other people’s money. As if that isn’t enough insult and injury to the American people, almost always you have politicians, prosecutors and sundry others racing to the microphones to claim a great victory for “punishing” those wealthy, well connected, powerful, and, almost always, the big campaign contributors. It is as if they think the country is populated by idiots who cannot see through the transparent PR political fraud that they spin to cover the fact that the big shots and their buddies are getting away with it again. Yesterday was no different as 49 state AGs, the U.S. AG and the White House all raced to the cameras to tout their claims that the mortgage settlement with 5 banks was a great victory for victimize homeowners. $26 billion, they all blared, coming to a neighborhood near you. Wahooo! Finally, relief, justice and help to beleaguered homeowners and other victims across the country. The problem is that the facts, the actual terms of the deal, as near as they can be determined from what little information was disclosed, suggest that this great victory isn’t going to help hardly anyone. True, it does appear to be better than nothing, but is that really the standard? And, none of those politicians said it was merely better than nothing. No, they claimed that this is going to help millions of homeowners across the country. First, only $5 billion of the settlement was cash (a mere $1 billion from each mega-bank, which is nothing to them) and the other $21 billion will come in the form of mortgage modifications, which isn’t anything like cash and will cost them almost certainly less than half of that cost. Second, as many have pointed out, $26 billion (even if it was real) isn’t much and won’t help much. For example, as a New York Times story today shows, even if all $26 billion was actually used as claimed, it will help, at most, 10 percent of the 20 percent of homeowners under water and even those homeowners aren’t likely to be helped much. Don’t miss the graph . Nothing beats seeing how little the help will be. There are approximately 11 million homes under water by an average of $50,000. The huge victory will help at most 1 million for an average amount of $20,000. So, nothing for 10 million and the 1 million will get to reduce the amount underwater on average to $30,000. It’s like saying rather than drowning in a lake 50 feet deep, you get to drown in a lake that is only 30 feet deep. And, people are taking victory laps? You don’t believe any of that and still think what the politicians said about punishing the banks was true? If this was a real punishment, then the stock of those banks would have taken a hit. They did not. The announcement had no effect. You could say that was because the settlement had been talked about for some time so the cost was already priced into the stock days before, but there wasn’t any hit during that time either. Thus, the markets confirm the facts of the settlement and rip the PR spin off the political fraud that compounds the banks’ fraud and, once again, victimizes the American people by falsely raising their hopes for relief and dashing — again — the claims that the criminals, liars, cheaters and scammers were finally going to be held accountable. Sadly, this is yet another example of the double standard that has been so painfully obvious to everyone in this country since the 2008 financial crisis: pain on Main Street, bonuses , bailouts , and arrogant whining on Wall Street, and nothing but PR spin from Washington, D.C. and elected officials.

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Nathan Gardels: Democracy Is Not Self-Correcting

February 10, 2012

Recently, I wrote an article posted here about the protests in Italy against the “undemocratic” government of meritocrats in Italy led by Prime Minister Mario Monti. Many responders, following the German philosopher Jurgen Habermas, worry that Europe is entering a “post-democratic” phase, not just because of a government like Monti’s, but because European institutions, such as the appointed European Commission, are seen to be beyond the accountability of the public. Behind such sentiments is a suspicion of delegated authority of any kind in democratic societies. My response is to consider this: The argument against the delegated authority of meritocracy based on experience and expertise is that it can get it wrong without adequate feedback. Without the capacity to self-correct it can end up oppressing the people instead of serving them. The argument for one-person-one-vote democracy always is that it gets is right because, like the free market,it is self-correcting. But that is no truer for democracy than for the market, as we saw in the 2008-09 financial crisis. Democracy, both representative and direct, also has its rigidities (ideology, populism, self-interest of voters, money as free speech). Often the accumulation of individual choices produces unintended consequences against the public good. As I pointed out in my earlier article, after a series of direct democracy initiatives to curb property taxes and punish criminals, California now spends more on prisons than higher education, thus undermining the foundations of its future. What matters for good governance is an open society — freedom of expression and the rule of law to protect feedback — not whether the system is meritocratic, democratic or a hybrid. Is China’s “monitory webocracy,” where the Communist government is acutely responsive to the public clamor over weibo on everything from tainted milk or toys to train wrecks to pollution, any less self-correcting than American democracy where the Wall Street banks that precipitated the financial crisis and were bailed out because they were “too big to fail” are now even larger and remain unregulated?

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Greek Police Union Threatens To Arrest EU, IMF Officials

February 10, 2012

Greece’s largest police union has threatened to issue arrest warrants for officials from the country’s European Union and International Monetary Fund lenders for demanding deeply unpopular austerity measures.

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When The Poor Have Health Care Coverage, The Cost Goes Down For All

February 10, 2012

The concept of support for universal health care is taboo among Republicans who scrutinize the Affordable Care Act — dubbing it the “Job-Killing Health Care Law Act” — and call for its repeal. But a new UC Irvine study challenges the GOP argument that the health care law is too costly, with data illustrating that health care costs on the whole fall when poorer, uninsured patients are provided with insurance. “In a case study involving low-income people enrolled in a community-based health insurance program, we found that use of primary care increased but use of emergency services fell, and — over time — total health care costs declined,” David Neumark, a co-author of the study, said in a release accompanying the findings. The study — which focused on uninsured people in Richmond, Virginia who fell 200 percent below the poverty line — found that over three years, health care costs fell by almost 50 percent per participant, from $8,899 in the first year to $4,569 in the third after they received insurance. Participants who enrolled in health coverage made fewer trips to the emergency room, which are notorious for running up patient bills. Instead, insured participants went for more primary care visits. “A lot of the debate about health care reform surrounds the issue of whether we’re setting up something that’s going to cost us more by increasing use of medical services or something that will cut costs through more appropriate and timely use of medical services,” Neumark said in the release. “[O]ver time, costs can be reduced through increased use of primary care and reductions in emergency-department visits and hospital admissions, but it may take several years of coverage for substantive savings to occur.” Health care spending in the U.S. has been on the rise for years. Americans spent more than three times on health care in 2008 than they spent in the 18 years before, according to a Kaiser report. Low-income, uninsured individuals tend to rack up exorbitant health-care bills because they often rely on emergency room visits instead of primary care. In the long run, these bills are paid by taxpayers. The Affordable Care Act “is set to extend Medicaid benefits to about 16 million uninsured, low-income adults and children by the end of 2014,” according to the study. In an extreme example of the societal cost of leaving some uninsured, New Yorker writer Malcolm Gladwell once chronicled the medical costs of a homeless man in Nevada who “used more health-care dollars, after all, than almost anyone in the state.” “It would probably have been cheaper to give him a full-time nurse and his own apartment,” Gladwell wrote. Mandatory health care already saw some success in Massachusetts last decade, when current GOP presidential candidate and then-Massachusetts governor Mitt Romney signed a health care law that inspired the Affordable Care Act. Today, Massachusetts has the highest percentage of insured residents of any state . Though he initially supported the plan, Romney’s rival, GOP candidate Newt Gingrich, continues to slam Romney for enacting the health care law. “Your plan essentially is one more big-government, bureaucratic high-cost system.” Gingrich said . Gingrich’s views are reflective of a majority of Americans who say they are in favor of repealing the health care law. A repeal of the act could potentially add “at least a trillion dollars to the deficit,” according to HealthCare.gov .

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Weil: A Trader Has To Be ‘A Total Numbskull’ To Get Caught

February 10, 2012

The guilty pleas last week by two former Credit Suisse Group (CS) traders, on charges of falsifying their company’s asset values, revive an age-old question: How dumb do you have to be to get criminally convicted for a fraud you committed while working at a bank deemed too big to fail?

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The Story Of Obama’s Brush With Political Disaster

February 10, 2012

Shortly after four o’clock on the afternoon of Wednesday, April 13, 2011, U.S. Treasury Secretary Tim Geithner walked down the hallway near his office toward a large conference room facing the building’s interior. He was accompanied by a retinue of counselors and aides. When they arrived in the room — known around Treasury simply as “the large” — four people were seated at a long walnut table on the side near the door. Geithner and his entourage greeted them, then walked around to the far side and took their seats.

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Lehman Brothers Suing Citi Over Huge Account

February 10, 2012

NEW YORK — Lehman Brothers Holdings Inc. and its creditors are suing several units of Citigroup Inc. to recover $2.5 billion the failed investment bank transferred to a backup account at Citi months before seeking bankruptcy court protection. In the complaint filed on Wednesday with the U.S. Bankruptcy Court for the Southern District of New York, Lehman claims that Citibank is wrongfully withholding the money as a potential source of funds in a dispute over derivative contracts. Lehman also is asking the court to disallow what it says are $2 billion of “inflated and legally unsupported” claims that Citibank has asserted against it. In a statement Thursday, Citigroup vowed to defend itself and its right to recover losses from Lehman’s collapse. It called the lawsuit unjustified and accused Lehman of trying to renege on its obligations and claw back assets to which it has no right. According to the lawsuit, Citi demanded on June 12, 2008, that Lehman transfer between $3 billion to $5 billion into an account to cover potential overdrafts by Lehman subsidiaries that were using Citi’s clearing and settlement services. Lehman agreed that same day to set aside $2 billion from its account at Citibank into a segregated account, on the condition that the bank would have no lien or other rights to the funds. In its statement, Citi said that it tried to help Lehman prior to its bankruptcy filing, but needed to obtain the guarantees and cash deposits from Lehman in order to protect its shareholders from potential losses. Lehman claims that by holding on to the $2 billion, Citibank is violating the U.S. bankruptcy code, state law and going against the conditions both agreed to when the funds were set aside. In addition, Lehman asserts that Citibank has refused to return another $500 million in cash that was transferred into its broker-dealer subsidiary just hours before Lehman filed for bankruptcy protection. Lehman’s bankruptcy filing in September 2008 was the biggest in U.S. history and triggered more than 75 separate bankruptcy proceedings. The company listed more than $600 billion in debts when it filed. Lehman Brothers Holdings is the company that controls what’s left of the investment bank’s assets. Citigroup shares ended regular trading down 57 cents to $33.66 on Thursday. The stock slipped another 8 cents to $33.58 in extended trading.

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Seven And A Half Things To Know: Income Gap, Whining Wall Street, Charlie Bit The Interwebs

February 10, 2012

Eight days a week are not enough to show I care, but seven and a half things are all you need to know today. Here they are: Thing One: Income Inequality Feeds Itself: There’s an old saying that you’ve got to have money to make money. It typically means you’ve got to be able to blow some money in order to win big jackpots. But The New York Times today reports on a particularly pernicious aspect of the old adage, pointing out that the children of the wealthy are doing increasingly better in school than their underprivileged counterparts, increasing the chances that they will make even more money later in life. The income gap is creating its own fuel to keep growing, in other words. “Education was historically considered a great equalizer in American society, capable of lifting less advantaged children and improving their chances for success as adults,” writes Sabrina Tavernise. “But a body of recently published scholarship suggests that the achievement gap between rich and poor children is widening, a development that threatens to dilute education’s leveling effects.” Thing Two: Wait, Wait, We Really Don’t Like The Volcker Rule: Goldman Sachs CFO David Viniar raised some eyebrows this week when he suggested Goldman could actually make more money because of the scourge of Wall Street, the Volcker Rule, which forbids banks from taking their own money to Atlantic City and play the slots. Now Goldman is downplaying those comments, reports Politico’s Ben White , who says the bank plans to unveil a 50-page screed against the rule on Monday, explaining why it murders capitalism, turns your teeth yellow and makes puppies cry. Thing Three: Barclays Warning: Yesterday it was Credit Suisse, today it’s Barclays: The banking sector’s pain is international. The British bank today reported its worst quarterly results in three years and warned it might miss its target for a key profitability measure. The reason, as it was for Credit Suisse, is the ongoing euro-zone debt crisis, and not Dodd-Frank or the Volcker Rule, as Matt Taibbi discusses in his new piece, ” Why Wall Street Should Stop Whining .” Thing Four: Bachus In Focus: The independent Office of Congressional Ethics is investigating whether Rep. Spencer Bachus (R-Ala.), chairman of the House Financial Services Committee, violated insider trading laws, the Washington Post reports . This comes as the House has just passed a new law gently reining in lawmakers’ ability to trade on inside information. Bachus told the Post he is cooperating with the OCE. Thing Five: Still Waiting For Greece: European stocks and US stock futures are falling this morning because of — wait for it, this will shock you — Greece. Yes, we’re still waiting for a resolution to the latest round of never-ending Greek debt talks. Euro-zone finance ministers withheld a new loan to Greece yesterday, preferring to wait for the results of weekend votes in Greek parliament on new austerity measures, while Germany wagged a wienerschnitzel disapprovingly in Greece’s direction. It seems Greece is not meeting its budget targets! That tends to happen when your economy is dead in the water, which tends to happen when you pass round after round of austerity measures, causing your populace to constantly go on strike . Rinse, repeat, default already. Thing Six: Mind the Trade Gap: At 8:30 a.m. Eastern time, the Commerce Department is due to report on the international trade balance in December. Economists, on average, think the trade gap widened a bit, to $48 billion, from a wider-than-expected $47.8 billion in November. A bigger trade gap sends mixed signals on growth. If we’re buying more imported stuff, then that means consumers might be feeling a little friskier. But a wider trade gap also subtracts from gross domestic product, for whatever that’s worth. Update: The gap was a bit wider than expected , at $48.8 billion. Thing Seven: Consumer Temperature Read: At 10:00 a.m. ET, Reuters and the University of Michigan release their preliminary consumer sentiment reading for February. Economists think the sentiment index rose to 74 from 75 in January. But given the recent rally in the stock market and better approval ratings for President Obama’s handling of the economy lately, economists might be under-estimating consumer sentiment. Anyway, what’s more important is what consumers do, rather than how they feel. Thing Seven And a Half: Charlie Bit The Interwebs: Back when J.C.R. Linklider was dreaming of an “Intergalactic Computer Network” in the 1960s and developing ARPANET, the precursor to the series of tubes that has delivered this post to your eyes, he probably could not have imagined that the most successful product of his great vision would be a video of one kid biting another kid’s finger . But so it goes. The New York Times does a deep dive on the now-famous family that produced the video, which has been seen nearly 418 million times, and asks the question: What makes a video go viral?

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The States Where Companies Are Hiring

February 10, 2012

From 24/7 Wall St.: Companies across the country are hiring more workers, at least if you ask their employees. In 2011, 31 percent of U.S. workers reported that their employers were hiring, according to Gallup’s Job Creation Index . Only 18 percent said that their employers were laying workers off. Of course, residents of some states report much higher rates of job creation than others. 24/7 Wall St. reviewed the Gallup Index, as well as a number of other economic indicators, and identified the eight states where residents think companies are hiring most. Read The Eight States Where Companies Are Hiring To develop the Job Creation Index, Gallup asked those surveyed whether companies are hiring or letting employees go. While the national score reflects that most states believe employers are hiring, 24/7 Wall St.’s analysis suggests that self-reporting by workers may not perfectly align with reality. These states are not experiencing the greatest recoveries — including in employment — as they have little to recover from. The states’ strong economies may be affecting their residents’ perception of the economy. Five of the eight states on this list are among the top nine states on another recent Gallup poll ranking states’ confidence in the national economy. Those who live in states that are doing well see the entire country as doing well. The majority of states where high percentages of workers reported job creation also have extremely low unemployment rates to begin with. Six of the eight states have among the 10 lowest unemployment rates in the country. North Dakota, the state where the largest share of workers reported that their employers are hiring, has the lowest unemployment rate in the country. And while unemployment rates are low, the majority of these states have had relatively low unemployment rates for some time. Most did not have particularly impressive improvements in unemployment last year. Other than Utah and West Virginia — the only states with exceptionally large drops in unemployment — the rest have had low unemployment rates since 2006 and throughout the recession. Housing markets in most of the states where respondents believe jobs are plentiful also have been stable. Seven of the eight states on the list are among the 15 markets that suffered the least from the third quarter of 2006 to the third quarter of 2011. Five of the states actually experienced increases in home prices over this period. These are the eight states where workers say companies are hiring, according to 24/7 Wall St. :

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Another Big Bank Slashes Its Bonus Pool

February 10, 2012

LONDON — Barclays PLC revealed Friday that it is slashing its bonus pool after earnings at its investment banking division fell sharply and dented overall profitability. The bank said it was taking the action as it reported that its profit after taxes fell 15 percent last year to 3 billion pounds ($4.8 billion) from 3.56 billion pounds the year before even though income rose 2.6 percent to 33 billion pounds. Much of the profit decline was due to a 32 percent fall in pretax profit at the Barclays Capital investment banking unit to 2.97 billion pounds. The bank said the average bonus for Barclays Capital employees will be 64,000 pounds ($101,000), down 30 percent from 2010. The total bonus pool was cut by 25 percent and the average bonus per employee will be 21 percent lower at 15,200 pounds. “We need to balance remaining competitive with being responsive to the public mood,” Chief Executive Bob Diamond told reporters after the publication of the results. Bonuses are a highly sensitive political issue in Britain, particularly at Royal Bank of Scotland and Lloyds Banking Group which were bailed out by taxpayers. Lloyds chief executive Antonio Horta-Osorio and RBS CEO Stephen Hester have both waived their bonuses, though Hester did so only after coming under intense political pressure. Barclays said bonuses for executive directors and the eight highest paid senior executive officers would be down 48 versus 2010 on a like-for-like basis. Diamond received a bonus in shares worth 1.8 million pounds last year. Barclays said no one would get a cash bonus of more than 65,000 pounds. A more detailed look at the results show that the bank’s adjusted pretax profit of 5.6 billion pounds fell short of the consensus forecast of 5.8 billion pounds. After initially opening lower, Barclays shares in London were trading 2.9 percent higher after an hour of trading. Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers, said the initial sell-off appeared to respond to the disappointing top line results and that the upturn fed on more positive news within the earnings report. Hunter noted a 48 percent gain in pretax profit in the retail and business banking, a return to profit in the corporate division, a 9 percent hike in the dividend to 6 pence and a “sturdy” Tier 1 capital ratio of 11 percent. Barclays shares are now at their highest level since July. A year ago they were trading at about 330 pence but fell as low as 139 pence in September.

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Sources: GOP Congressman Faces Insider-Trading Investigation

February 10, 2012

The Office of Congressional Ethics is investigating the chairman of the House Financial Services Committee over possible violations of insider-trading laws, according to sources familiar with the case.

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Guess Which Local University Shattered Fundraising Records?

February 10, 2012

SAN FRANCISCO — Stanford University’s latest five-year fundraising drive netted $6.2 billion, the largest amount ever raised in a higher education campaign, school officials said Wednesday. Money from the Stanford Challenge is being used to fund an interdisciplinary approach to teaching and research on areas such as education, environment, human health and international affairs, officials said. “We’ve undertaken a new model in higher education, with experts from different fields joining together,” school president John Hennessy said in a statement. “This kind of collaboration has enabled Stanford to assume a larger role in addressing global problems.” The money is providing funding for more than 160 endowed faculty positions, 360 graduate student fellowships, the construction or renovation of 38 campus buildings, $27 million in seed grants for innovative research and more than $250 million for need-based undergraduate scholarships. The $6.2 billion raised by the Stanford Challenge is the most collected by a university in a single fundraising campaign, said spokeswoman Lisa Lapin, citing the Council for Advancement and Support of Education. That total surpasses the $4.3 billion goal set when the campaign was launched in October 2006. During the campaign that ended Dec. 31, the university received donations from more than 166,000 alumni, parents and community members. The university received contributions of more than $50 million from Stanford alumni such as Yahoo Inc. co-founder Jerry Yang, Nike Inc. co-founder Phil Knight and Silicon Valley venture capitalist Robert King. Stanford is the latest university to announce a successful multibillion fundraising campaign. Last year, Yale University said it had raised $3.9 billion, and the University of Pennsylvania said it collected $3.5 billion. “It’s an impressive drive for funds that most public universities can only dream to eventually match,” said John Aubrey Douglass, a researcher at the Center for Studies in Higher Education at the University of California, Berkeley. “Donors are attracted to the big-name universities, but I worry some that the rich keep getting richer.”

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North Dakota Walmart Evicts Workers Living In Parking Lot

February 9, 2012

Apparently one Walmart isn’t cool with people squatting in its parking lot. Dozens of workers who have flocked to Williston, North Dakota to benefit from the region’s oil boom have been living in tents and trailers for months outside of a local Walmart, but last Monday, the retail chain’s management told the squatters to go or be towed, The Bismarck Tribune reports . Lines of RVs accommodated workers shoulder-to-shoulder but after receiving a variety of complaints, including from female customers who said they feared walking through the camp to shop, Walmart officials say they’ve had enough. “It’s just not appropriate for people to be living in our parking lot,” Walmart spokeswoman Kayla Whaling told The Bismarck Tribune . And it seems that the town’s residents agree. “Walmart is hell. You just don’t want to go there,” said one member of the Nehring family, a group of sisters who have been featured in a reality TV show Boomtown Girls that’s being shopped to networks like TLC and MTV. “You can’t find anything because it’s all cleared out,” another Nehring sister explains. The camp is just one result of a huge population influx into Williston, thanks to a promise of plentiful — and well-paid — work in the oil industry. North Dakota currently boasts the lowest unemployment rate in the nation at 3.3 percent. No doubt because of that, housing has become scarce in the town and the apartments that are available have seen huge jumps in rent , with prices sometimes increasing threefold. More than 1,000 longtime Williston residents have abandoned the town in the past two years due to crowding and the boost in living expenses. The oil rush has had other negative impacts as well. Drunken bar fights have become more common as workers try to blow off steam after long hours. Charges of Driving Under the Influence have also grown more typical, while instances of theft more than doubled in 2011 compared to the year before. Exotic dancing has also become a thriving industry in the town, with some strippers making up to $3,000 per night in tips alone . The popularity of the clubs may be due in part to the low ratio of women to men in the town, which may explain why some are “feeling like a piece of meat” in Walmart’s parking lot, as one Nehring sister put it.

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U.S. Bans Health Insurance Company Fine Print, Allows Baffling Terms

February 9, 2012

The Obama administration aims to demystify shopping for health insurance and has created a standard form that explains in plain language without the fine print what plans actually cover. What they couldn’t do was make health insurance itself less complicated, so consumers will still be confronted by baffling terms including “allowed amount,” “balance billing,” and “usual, customary, and reasonable charges.” The health reform law requires insurance companies to use a new document that presents a uniform summary of deductibles, co-payments and other features so consumers can compare one health plan to another. The new rules also eliminate the fine print: insurers can’t use a typeface smaller than 12 points. Administration officials including Health and Human Services Secretary Kathleen Sebelius unveiled the forms Thursday and companies will have to comply beginning Sept. 23. Consumer groups including Families USA and Health Care for America Now praised the policy as an important step that enhances transparency in the health insurance market. These new summaries of benefits and costs will help people choose the right health plans and are a big improvement over the confusing information and marketing material insurance companies currently use, said Lynn Quincy, a senior policy analyst at Consumers Union who helped develop the new form. The “plain language” isn’t always so plain and the jargon-heavy nature of the form underscores that health insurance is complicated. While the administration will require that insurers provide a four-page glossary of industry terms , shoppers will have to contend with terminology that isn’t always easily understandable. “We don’t want to over-promise here about what a form can do laid over top a very complex product,” Quincy said. “We have to wait and see if the new form actually helps people.” The insurance summary can’t be longer than eight pages and includes facts about a plan such as what its deductibles are, whether benefits are capped at a certain dollar amount every year, and if patients need referrals to visit specialists. Though the administration proposed last year that premiums be listed, that requirement isn’t part of the final rule. The monthly price for a health plan, which may not be available until after an insurance company has reviewed a customer’s application, will be provided separately. The form includes examples of medical expenses, such as the birth of a child, so consumers can estimate how much would be covered by insurance and how much would come out of their own pockets. The administration characterizes this feature as a “Nutrition Facts” label for health benefits. The health insurance industry’s top lobbyist said the rule places too heavy a burden on companies and takes effect too quickly. “The final rule requires an almost complete overhaul and redesign of how information must be provided to consumers,” Karen Ignagni, president and CEO of America’s Health Insurance Plans, said in a statement .

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Janet Murguía: Why the AG Settlement is Good for Communities of Color

February 9, 2012

This is a joint blog post with Marc Morial, President and CEO, National Urban League Today, state Attorneys General (AG) announced that they arrived at a $25 billion agreement with mortgage servicers in response to the “robosigning” scandal that broke 18 months ago. When New York AG Eric Schneiderman, California AG Kamala Harris, or Nevada AG Catherine Masto signed onto the agreement for their hardest hit states, it was a clear indication that this is a strong settlement for our families. We at the National Urban League (NUL) and National Council of La Raza (NCLR) celebrate this significant move as one in a series of enforcement steps that are essential to restoring the public’s faith in our housing system. The closure of these proceedings is incredibly important to healing our families and neighborhoods. The entire nation has felt the burden of the enduring foreclosure crisis. Black and Hispanic homeowners have been especially hard hit. One in four Black and Hispanic borrowers in the U.S. lost homes or are at serious risk of losing their homes, more than half the number of White borrowers. Asian, Black, and Hispanic families were 1.7, 3, and 2.2 (respectively) times as likely as White borrowers to receive subprime loans even after accounting for similar credit profiles. Through foreclosures, our families have battled substantial wealth loss, emotional distress, and an uncertain financial future. The AG settlement will bring relief to our families, with approximately $17 billion dedicated to principal reductions. Writing down principal has proven to be a win for both borrower and lender alike, especially when compared with the costs of foreclosure, property maintenance, and a sheriff’s sale for pennies on the dollar. Up until this point, however, servicers have not made it a priority. This settlement and a recent announcement to increase incentives for principal reductions should compel servicers to help families and clear the logjam on write-downs. Also, we are confident that rapid uptake of these new resources will soon generate the empirical information needed to convince naysayers that write-downs are vital to stabilizing the market. We are encouraged by the AG settlement and plan to do everything we can to ensure that affected families have access to these new resources. Finding homeowners is no small endeavor, especially finding those who have slipped through the cracks. Outreach will be an enormous undertaking in its own right and NUL and NCLR hope to deploy their housing programs to seek out eligible clients. Despite the challenges, we believe this AG settlement will set families up for success and will bring true accountability and systemic improvement to our housing market.

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Morty Lefkoe: Do You Have a Fear of Public Speaking?

February 9, 2012

If you fear public speaking more than going to the dentist, or even death, you are not alone. This fear is so common that surveys indicate that over 50 percent of the adult population of the United States experiences fear when speaking in public. As Jerry Seinfield put it quite accurately on one of his shows: Most people would rather be in the casket than delivering the eulogy. We have had a number of clients whose fear of speaking in pubic was so great that they turned down promotions rather than take a job that required them to speak in public on a regular basis. The saddest call we ever had was from a man who called to say his daughter had just announced to him that she was about to get married… and this news made him petrified. Why? Because he realized he was going to have to make a toast at the wedding. Interestingly enough, there is nothing inherently scary about talking to a few people who are there to hear what you have to say. And why does merely having to introduce oneself at a meeting lead many people to go to the bathroom just before it is their turn. What makes speaking in public so common and so frightful? If you’ve been reading my regular blog posts, you won’t be surprised to learn that my answer is: beliefs. In fact, after helping over 3,000 people eliminate this problem, we’ve discovered the specific beliefs that cause this fear. Let me tell you what they are and why they result in this widespread fear. Here are the beliefs that cause a fear of public speaking in most people: • Mistakes and failure are bad. • If I make a mistake or fail I’ll be rejected. • I’m not good enough. • I’m not capable. • I’m not competent. • What I have to say is not important. • People aren’t interested in what I have to say. • I’m not important. • What makes me good enough and important is having people think well of me. • Change is difficult. • Public speaking is inherently scary. To make it real that these beliefs could cause such terror in so many people, ask yourself this question: Imagine someone, whom you don’t know, who really had all the beliefs I listed above. Do you think she would be afraid to speak in public? In fact, wouldn’t you be willing to wager that she would have public speaking anxiety? Why these beliefs cause a fear of speaking in public I think most people would agree that anyone with these beliefs would fear public speaking. And here’s why: A belief is nothing more than a statement about reality that we feel is true. And if we think it is true that it is bad to make mistakes and if we do we’ll be rejected, and if our sense of importance is dependent on others thinking well of us — then we would have to be terrified when we stand up to speak in front of others because we could make a mistake, leading to rejection, and because we would feel less important if people thought less of us. But you might be thinking: I am afraid to speak in public but I don’t agree with most of these beliefs. Here’s a strange thing about beliefs: It is possible to intellectually disagree with a belief we hold. In other words, early in life we might have concluded as a result of interactions with our parents that it’s bad to make a mistake (because mom and dad got upset when we didn’t live up to their expectations). Now, today, we might realize that innovation is possible only if we are willing to try new things that might not work out. Mistakes are part of the process of doing something new and different. So we “know” that it’s okay to make mistakes and learn from them. But merely knowing that does not get rid of beliefs. If fear is not inherent in public speaking and if the fear is caused by specific beliefs, then eliminating the beliefs will eliminate the fear. Not reduce it or make it easier to deal with. Eliminate it. Research proves eliminating beliefs eliminates public speaking fear A study conducted by the University of Arizona several years ago determined that if the beliefs listed above (and a few conditionings) were eliminated, the mean level of fear of the subjects studied fell from 7 to 1.5 on a scale of 1-10, one being no fear whatsoever and 10 being terror. To prove this to yourself, get rid of three of the 11 beliefs that cause a fear of public speaking (and a bunch of other unpleasant feelings) by using a free belief-elimination process at http://recreateyourlife.com/free . Your fear of speaking in public is not due to “human nature.” You can rid yourself of that terrifying prospect once and for all.

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Steve Blank: Two Giant Steps Forward for Entrepreneurs

February 9, 2012

While entrepreneurship is in the news fairly regularly, I seldom make news myself. Today, however there are two important updates for entrepreneurs everywhere. Let me be brief… The “Startup Owner’s Manual” goes On Press Tuesday 2/14 Two years in the making and literally ten years in development, I’m proud to announce that my new book, The Startup Owners Manual , goes onto the printing press next Tuesday. This 608-page work is, as its subtitle says, “the step-by-step guide for building a great company.” It’s the result of a decade of me learning from 1,000 of entrepreneurs, corporate partners, students and scientists the best practices of what wins in startups. I’ve spent the last two years cramming knowledge into this new book. In brief, The Startup Owners Manual is far more detailed and more readable than Four Steps to the Epiphany, (most of the sentences are even finished!). In fact, you could say that all that remains from my last book are the four steps of Customer Development. Briefly, the new book Integrates Alexander Osterwalders “Business Model Canvas” as the front-end and “scorecard” for the customer discovery process. Provides separate paths and advice for web/mobile products versus physical products Offers a ton of detail and great tips on how to get, keep, and grow customers, recognizing that this happens very differently between web and physical channels. and finally it teaches a “new math” for startups: “metrics that matter. While MBA’s have had a stack of texts to help them “execute” a business model, this book joins the growing library of books for practitioners in “search” of a business model. The Lean LaunchPad Online Class My online Lean LaunchPad class has created a lot of buzz this week. As you may have heard, I was deep into the production of the lectures when I realized I was producing the wrong class. The online class was originally based on my book The Four Steps to the Epiphany . Only when I held the draft of my latest book, The Startup Owner’s Manual , in my hands, did it dawn on me that my online students deserved all the latest best practices of entrepreneurship and Customer Development. Not the stuff I taught a decade ago, but all that I’ve learned teaching the Lean LaunchPad in front of students at Stanford, Berkeley, Columbia and the National Science Foundation in the last year. And I particularly wanted to incorporate I’ve spent two years integrating into The Startup Owner’s Manual . So apologies to all of you who were expecting the class this month. I hope to get the updated version online in the next 60 days. I’ll keep you updated on this blog as we record our lectures. In the meantime, if you want to prepare for the class…or get a jump on your startup competition, you can start reading the “recommended text” for the online class right now by ordering my new book. It is recommended–not required–reading for the free online course, and I believe it will be immensely helpful to the startup community at large. Lessons Learned Startups search for business models, exisitng companies execute them There are tons of texts about execution, but a paucity of practical ones for founders on how to search The Startup Owner’s Manual is the definitive reference book for founders, investors and everyone interested in startups The Lean Launchpad on-line class will be based on the new book Steve Blank’s blog: www.steveblank.com

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Asian Activities Report for February 9, 2012: Pacific Basin Shipping Limited (HKG:2343) Forms Alliance with Crowley Maritime Corporation

February 9, 2012

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp Pacific Basin Shipping Limited (HKG:2343), one of the world’s leading operators of modern handysize and handymax dry bulk vessels and a …

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NCS International Certifies Worlds First Company Against Global Sustainable Biofuels Benchmark

February 9, 2012

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp NCS International (“NCSI”) has certified the world’s first organization against the Principles and Criteria of the Roundtable on Sustainable …

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Blackham Resources Limited (ASX:BLK) Drilling Programme Commences at Matilda Gold Mine

February 9, 2012

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp Blackham Resources Limited (ASX:BLK) is pleased to announce that following the recent publication of its initial resource statement, it has …

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Occupy Y’All Street: Occupy Charlotte Activist Gambles Everything On The Movement

February 9, 2012

This is the fourth in a series of stories and short films on under-publicized Occupy sites. The first is here , the second is here , and the third is here . Stay tuned in the coming days for more from our road trip through the South. CHARLOTTE, N.C. — Vic Suter is looking for Ghost. She sloshes through the slick grass and soggy leaves matting the grounds of the Old City Hall. She and the rest of Occupy Charlotte have called the property home since early October. She knows every sign, every tent in this place. But it’s Ghost’s tent that she wants. A cold rain begins to fall steadily on a camp that’s all but deserted. Vic, 22, doesn’t care. Vic motors past tents sagging under layers of tarp and other jerry-rigged, middle-of-the-night weatherproofing. Dragging a cardboard sign with a bitten corner, she ignores all those tents before finally stopping at a giant beige orb, outfitted with a mesh enclosure that gives off a screened-in porch effect. There’s room for three chairs and what look like wind chimes. Ghost has his shit together. “Hey Ghost?” she shouts, a few feet from his tent. Vic leans into the orb’s entrance. Her face, curtained by her brown hoodie, is pale and expectant. Even at 11 a.m. in early November, she looks game. “Hey Ghost! You in there?” The orb shows no signs of life. “You got to Godzilla people’s tents — shake them, nag them to get up and go on a march,” she explains later. Vic lets out one long “Ghooouuuust!” in a nagging sing-song. She thinks this is funny. She stoner-laughs to herself. The rain sounds like it’s hitting the trees a little harder. Vic fiddles with the orb’s flaps. “Let’s see.” The tent is locked. “No, he’s not here.” Vic finally has to give up. She trudges past the orb in her untied black army boots — shitkickers her stepfather wore when he turned 18 in Vietnam. She says she’s worn them every day since high school. Instead of lockers and jocks, she has to stomp past an empty bucket, empty plastic chairs and more empty tents. Ghost is a memory. She’s looking for James and Bobby, and somebody named Peanut. Vic hits on the last of the tents located at the outer edge of the camp. They’re quiet, too. “Where is everybody?” she asks. A month earlier, the Occupy activists in Charlotte had drawn more than 500 to their first march uptown, a noisy success that included a stop at Bank of America’s North Tryon Street headquarters, where the throngs chanted up its 60 stories. The building — the tallest in the state and a dominant spear in the city’s skyline — had been a force for civic pride. But since the Great Recession, the bank has become one of the country’s great villains. The Wall Street of the South now had its own potent occupation. The early general assemblies could number in the hundreds. The meeting participants were drawn by growing income disparities, rising college tuition costs, the region’s environmental decay. They were among the metro area’s double-digit unemployment rate. They realized they were everybody. Vic had joined on the first night and had been charged with welcoming newcomers and teaching them the movement’s hand signals. Soon she began organizing three marches each day to one spot. This was her work week. Charlotte’s downtown had grown rich with examples of injustice wrapped in glass and outfitted with bad public art. Vic filled up to-do lists with ideas for future marches. For years, she had searched for her place. She tattooed “Restless” in black cursive script on her shoulder. But at Occupy, she thought she might have found her calling, and her very own tribe in the buckle of the bible belt. She fell hard. “When you’re throwing yourself into something,” she explained to us, “you don’t have a lunch break. You don’t have time off. You don’t get a vacation from a long-term protest.” The movement proved it could inspire people like Vic to produce Pastebin manifestos, YouTube gotchas, and a working kitchen. But a month or so in, Occupy began facing an important dilemma that they have yet to resolve. How does a non-hierarchical movement avoid arguing itself into oblivion? How does it sustain the true believers? As the days got colder, and inertia seeped in, the general assemblies got smaller and so did the press stories. Even before the big city camps were razed, a lot of activists had already burned out. But Vic never did. The problem for Vic was that the chants never got old. Vic wants Ghost and Peanut for a march that will begin in a half hour and lead her — and as many willing activists as she can cajole — from their camp, through downtown Charlotte to Duke Energy’s headquarters. Vic chose the energy mega-company for its planned rate hike ; its environmental record and its hold on power in the region and beyond — planners for the Democratic National Convention, to be held in Charlotte, rely on a $10 million line of credit from the company. She is still exuberant about this march — even if it means chanting in the rain to stone-faced security guards in Charlotte’s bank-building canyon. Not everyone in Occupy Charlotte is as charged up. Last night, Vic says she begged three fellow activists to get her up on time for the morning march. Her cell was dying and she couldn’t depend on its alarm. “None of them wake up,” she explains of her neighboring activists. “Thanks guys.” She ended up oversleeping. Vic trudges back toward the camp’s center, first stopping at the information desk’s uncovered table and filing cabinet. A fellow activist shows her his sign — it’s the state outline with a fight-the-power fist punching up through its midsection. Vic approves. “That’s awesome. Right on. Hell yeah.” A small group of guys are standing by a cluster of tents near the kitchen and storage spot where the activists keep their signs. Earlier that morning, the kitchen’s tent started collecting water and nearly caved in. It had to be held up by a broom. The guys watch her. As one of the only female campers, she stands out — a girlie gutter punk with piercings (tribal) and tattoos (personal), a sea-green streak manic-panicked through a mess of matted, light-brown curls piled high above her round face. You don’t want to mess with that. You want to follow that. The guys are waiting for her orders. One is wearing a dress. “You guys want to mic check?” she hollers down toward them. They want to mic check. “IF YOU’RE GOING TO MARCH, WE’RE LEAVING NOW!” Suddenly, stragglers appear and grab signs. They display them for Vic to sign off on. Vic asks for a cigarette. A guy rolls one for her. Vic asks for a light. She leans into the flame and exhales a fat cloud. She eats a banana that someone drops on the ground. She laces up her stepfather’s boots. She tells everyone that marching in untied boots is lazy. Fifteen Occupy Charlotte activists — all men — are ready to join her. And then Vic asks the question she’s been wanting to ask all morning: “Why are we still here?” * * * * * Occupy Wall Street’s most effective recruitment tools were not testimonials from the unemployed or income-inequality charts. The movement grew exponentially with each video that captured police actions against demonstrators. The mass arrest on the Brooklyn Bridge, the maiming of Iraq War Vet Scott Olsen in Oakland, the UC Davis cop pepper-spraying seated students — each jolted the movement’s sense of outrage, and gave the mainstream media fresh footage to endlessly loop. The resulting demonstrations were some of the bigger, more effective marches. None had more impact on Occupy than the videos capturing NYPD Deputy Inspector Anthony Bologna’s close-range pepper-spraying of a group of women penned behind orange police netting. One YouTube video of the incident racked up more than 800,000 views. Another attracted more than 1.5 million. Vic had seen the clips: the white-shirt official firing the stinging spray, the women cooped in, shrieking in horror before crumbling to the pavement. “It was just a catalyst,” Vic says. “It got me going. For the following week after that, I was just sitting there like obsessive at the computer just trying to find out more and more and more.” How long is this going to last? Are they serious? Vic wanted to know. Vic began calling around to the few activists she knew in Charlotte, hoping for any signs that a local occupation might be starting. The odds were against her. The city had no reputation as a rowdy place of political dissent. The big banks held sway over the local economy, the southern conservative mindset over the political discourse. Just days before the occupation started, Mayor Anthony Foxx, a Democrat, defended Bank of America against criticism for wanting to charge customers a $5 monthly fee for using its services: “People who live in this community know how generous our financial institutions have been.” Vic’s last activism had been a silent protest, helping with a letter writing campaign against Monsanto, an agri-business giant. She couldn’t remember the last time she marched or attended a rally. As soon as she heard that Occupy Charlotte would start, she put in her two-weeks notice at the earthy grocery store where she did food prep for $9 an hour. The first day that Occupy Charlotte began its encampment — Oct. 8 — was Vic’s last at the grocery. After her final shift, Vic said goodbye to the group house she’d rented for about $252 per month. Her roommate gave her a ride downtown. She forgot to pack a sleeping bag or pillow. But she did remember to stuff in her backpack a couple journals and books (Emma Goldman, George Orwell, Noam Chomsky, Nietzsche), a re-useable water bottle, extra clothes and a couple blankets. She also packed nonperishable food like granola bars and sunflower seeds, along with a few pieces of fruit. She did not plan on leaving. That first night, Vic joined maybe a dozen strangers. They formed a circle and introduced themselves: the high school dropout, the injured iron worker, the local musician, the college student. They talked about what the movement would mean to them. Vic said she was glad to see people in Charlotte finally not “turning a blind eye to things.” She says she didn’t go to sleep for two days. “It was awesome,” she says. “It came at a good point in her life,” says Vic’s stepfather, Danny Hill, 59. “She needed something to latch onto that would get her focused again … It was just get up and go to work. She didn’t really have much time for herself. This has been her passion all along but she just didn’t know how to go about doing it.” A month before she joined Occupy Charlotte, Vic wasn’t sure where she belonged. She wrote in her journal: “The world is changing quickly or maybe I’m not adapting fast enough. Maybe it’s not changing fast enough for me — or perhaps I’m not changing fast enough for me.” In Charlotte, Vic had a difficult time finding her way. Her beloved older brother Nick moved out before she hit middle school. Her parents put her in a small, private, Christian high school. She graduated an expert on what it felt to be shunned by your own peers. “Being the only out gay person in your school, being someone who graduated from a Christian school who never believed any of it, I was alone,” she says. She’d had to sit through Bible study every day for two years. Vic moved a little more than 90 minutes away, across the South Carolina border, and enrolled in Columbia College. But she quickly found that the all-women’s school wasn’t for her either. “All my peers were busy reading Vogue,” she says. “They were in school to meet their husband and their bridesmaids. I was starving to learn more.” Vic dropped out after her freshman year. For three months, Vic bounced around the Southeast: Athens, Atlanta, Savannah. “I’d hang around somewhere for a week, get bored and then leave,” she says. She’d walk or hitch or jump trains. In Tallahassee she joined up with a friend’s band. In Tampa, she squatted in a warehouse covered in black mold. Her itinerary ended with a return trip to her parents’ house. After a short stint at a community college, Vic enrolled at Winthrop University. But all that came to a chaotic end in October 2009 when she contracted swine flu. That December, she lost her grandfather. She felt overwhelmed and depressed. She decided to withdraw. Vic tried to re-enroll but says Winthrop wouldn’t accept all of her old credits. It became too much of a financial burden. “I was heartbroken that I couldn’t go back,” she says. Instead, she took the grocery job. “It was hard to live one block from my school and walk through campus on my way to work. It was a daily reminder.” Her mother Karen Hill says they couldn’t pay for Vic’s college; they had persistent health problems, and barely enough money to eat on their fixed incomes. Danny Hill has shoulder and lung issues, as well as post-traumatic stress disorder from his tours in Vietnam and the first Gulf War. It is hard for him to walk without having to catch his breath. Karen Hill handled baggage for US Airways, loading and unloading up to 20,000 pounds of luggage per shift, she estimates. After 23 years on the job, she had to have carpel tunnel surgery. She says her doctors soon rushed her back to work; she ended up with nerve damage in both hands. She never was able to get worker’s comp, she says. Her hands swelled up so bad, Vic had to dial for her and cradle the receiver. Vic had racked up her own share of medical debts. She had grown up with lungs weakened by a stubborn asthma that left her immune system vulnerable to attack. Hospital stays were common annoyances. In her journals, she taped a hospital bracelet from this past June. In the corner of the page, she wrote in black: “DIE YOUNG AND SAVE YOURSELF.” As the start of the occupation grew closer, she wrote in her journal: “Clean slate in front of me, bumpy road both behind and before — I’m bursting … I must become as strong as stone.” During the first week Vic lived at Occupy Charlotte, she says someone stole her clothes, her jacket and her ID. She eventually got a tent and a lock. She says she was afraid to leave the camp. She’d only leave for an hour or two a day. “I was always scared — What’s going to happen while I’m gone? What am I going to come back to?” she recalls thinking. “I was just scared that somebody was going to do something stupid and get us shut down and I was going to come back and tents were going to be destroyed.” Despite the setbacks, Vic confessed to her mom just how meaningful it all was. “She told me that this is the most important thing she’s ever done in her life,” Karen Hill says of her finally grown up daughter. “I had to let her go.” It was hard to fathom that this was the same daughter who had come out to her by handing her a note. Hill made sure to drop off an entire wardrobe of clothes. Hill couldn’t march, but she could open her home to her daughter’s new friends. As the seasons changed, she supplied the activists with vitamin c and cold meds. When they needed a break, she invited them over to the house for a hot meal and the use of their washer, dryer and shower. They hardly disturbed the household. “Usually, they would sit on the floor with their computers — and it was Occupy, Occupy, Occupy,” Hill says. But their victories went beyond blog posts and tweets. A group of Latino tenants were facing eviction when the camp decided to take up their cause. The landlord soon backed down. “That’s a concrete thing that they can point to and say ‘Look, this is what we did,’” says Mark Kemp, editor in chief of Creative Loafing, the Charlotte weekly. Luis Rodriguez , a former organizer with Occupy Charlotte, describes Vic as pivotal to whatever success the camp had. “She’s a big motivator,” Rodriguez explains. “She’s very charismatic and she has a way of rallying support to her … You look at her and you see the hair and the piercings and then you get to talking to her and she’s really, really passionate. She does not suffer idleness and she wants everyone else to be constantly moving.” The marches were addictive. Vic says she yelled so much that no one heard her real voice for long stretches. For the first three weeks, her voice was constantly hoarse. But it wasn’t powerful enough to silence the camp’s in-fighting that sometimes got physical. On a few occasions, people got caught bringing drugs into the camp. One leader left in a well-publicized dispute over the direction of the camp. Restraining orders were exchanged, the scope of which banned one of the main organizers from the camp and from participating “directly or indirectly” in general assemblies. There was a fight over who controls the camp’s website. The ousted activist turned one site into an anti-Occupy Charlotte missive. The remaining occupiers had to start a new site. General assemblies became a grind even for Vic. After a particularly intense session, Vic walked away in tears. She thought about quitting. She’d been occupying for about a month. She was tired of seeing too many activists sitting around. She’d sometimes had to barter with them to march: I’ll give you a cigarette if you get out of your tent . She and others even had to march on their own camp to motivate the laziest camp squatters. They’d tromp through the haphazard rows of tents shouting, “Out of the tents and into the streets!” More than once, Vic complained about the camp going slack. Not everyone appreciated her bluntness. Some tent dwellers had taken to calling Vic a “stuck-up bitch.” If an activist quit the camp, others blamed her. She didn’t miss the quitters. There was always the next march to organize. She didn’t care if she could only get a half dozen to march with her. They were an escape from the camp’s drama and bad vibes. The morning of the march on Duke Energy, one man sits in the rain in front of a chess board, expressionless. Later, an activist shouts down a young girl. She doesn’t look old enough to drive. She’d been at the camp before. She had runaway from home and ended up there. She left in a police car that time. The activist isn’t happy that she came back. He bellows at her loud enough for the whole camp to hear. He calls her a “fucking bitch.” The girl asks to borrow one of our cellphones. She needs to get a ride home. That night, the camp is partly illuminated by the city’s police headquarters across Trade. The Occupiers are only a short walk from the heart of downtown Charlotte’s decade-and-a-half building boom, but the tents feel a world away from the gleaming hotels and loud bars. One activist describes it as “a bubble.” It’s kind of quiet inside the bubble. There are no drummers, or old heads moderating debates over the ” Pedagogy Of The Oppressed .” Instead of a friendship circle, there are small cliques hanging by the information desk and around the kitchen smoking cigarettes. They all look young and tired, shivering in jean jackets and hoodies. At the previous night’s general assembly, several activists debated whether another should be allowed to wear a ball cap emblazoned with the words “Fuck the Police.” Zuccotti Park inspired more than a hundred camps just like this one. The tents and general assembly hand gestures may be the same. But camps like Occupy Charlotte’s have had to make their way very much in the dark, without the correctives that constant media attention can bring, without the steady flow of donations and celebrity cameos. Russell Simmons and Michael Moore have not stopped by. Here, it’s up to Vic and her ability to get Peanut to wake up and march. The night before Vic had sat at the information desk until 4:30 a.m. in the hopes of pitching the movement to any stranger that happened to stumble down to this darkened block of Trade. Tonight, she just wants sleep. Vic slinks away from her group and walks carefully past the tree line running along Trade and into the pathless dark, looking for her one-person tent. She unwraps her tent tarp and fiddles with the combination on her padlock. “The weather is ruining this lock,” she complains. Her voice is a rasp. It’s about 10 p.m. when she finally takes her boots off. After little sleep, she wakes up at 7:30 a.m. feeling sick. The first march to a military recruiting center to highlight the plight of veterans will have to be put on hold. Vic wants more sleep. At 10:30 a.m., Vic’s speech is groggy, her eyes bloodshot. “You’re catching me like just waking up,” she says, laughing. “Sorry.” She decided to join a friend’s tent for the conversation and the platonic body warmth. “When it gets cold, you make friends with your neighbors,” she says. “Body heat is a necessity.” Vic spies the camp from the tent’s entrance. Not a soul in sight. “I wish more people were up and moving about,” she says. She insists she will be ready for the next march: “Put my boots on and go.” Vic had one advantage over all the other Occupy activists: her older brother Nick. From an early age, he introduced her to Orwell and Zinn and radical punk bands like Crass and the Dead Kennedys. He’d stand in the doorway to her bedroom and roll his eyes at her record collection. “What is this except for a waste of record space?” he’d sneer. He was eight years older. He left home when she was 10. Even when he moved out to the Midwest, he made sure to heckle her long distance — pushing her toward more alternative culture. “I’ve always looked up to him,” Vic explains. “He never led me astray … He was always there to give me that hint.” Nick had been a part of the anti-globalization protests a decade earlier. He marched against the World Bank and the International Monetary Fund in Washington, D.C. While the movement’s message, tactics and global analysis animated the Occupiers, Nick’s generation faced an ambivalent public and brutal police. Pepper spray was the least of their worries. The press corps only seemed to accept the kettling tactics as a justified use of force. After one infamous mass arrest, The Washington Post headlined its editorial ” Hail to the Chief–and His Cops .” The preemptive roundup would ultimately cost taxpayers millions in civil-suit settlements . No activist got famous on Twitter or ended up as a talking head on MSNBC. Nick remembers the tear gassing and pepper spraying, the times when the police beat him with their nightsticks and stomped on him with their heavy boots. None of it ended up on YouTube. But he could share his war stories with Vic. “I guess I wanted to try to pass on values, a willingness to stand up for what you believe in,” he says. “I didn’t really want to pass on a lot of the stuff I was doing. Nightsticks hurt. And tear gas isn’t fun. I wouldn’t want her to experience that part of things.” Vic had sought counsel from her brother before her planned arrest. Nick recalls telling her to not piss off the cops. Make them work for her arrest but not too much. “Make them pick you up,” he told her. “Ride that fine line between being cooperative and resisting.” Five days after we met her, Vic and three others formed a human blockade in front of the entrance to Bank of America’s headquarters. They stretched out a banner that said “Bank of Coal.” The Charlotte cops didn’t really know what to do at first. The blockade lasted maybe five minutes. “But it felt like an hour,” Vic says. Vic and seven other activists were arrested for blocking the entrance and climbing the flag pole for another banner drop. Vic made sure, her mother says, to take off her piercings, so she’d look more respectable. But Nick had to call to critique her mugshot. “I was kind of let down she wasn’t smiling,” he says. “I thought she would have smiled for it. When I talked to her, I gave her a hard time about it.” He said he was surprised how easy her arrest went down, that the cops didn’t get rough. He had to admit, though, that he was impressed with her commitment — especially her decision to quit her job for Occupy. “I was actually pretty proud of that,” he says. “I wish I had been at a place where I could do the same and join her. It’s an admirable thing. You find something that means that much to you and you’re willing to give up what you have to be a part of it … It’s kind of her taking it to where I wanted to be.” The Bush Administration and its two wars would consume the energy of the U.S.-based anti-globalization movement. As Nick got older, he says the activists organizing the most aggressive actions appeared to migrate overseas. “It kind of hit a point where nothing was happening,” he recalls. “All the meetings started taking place in Europe. You got punk kid from Charlotte — you can’t go over to Italy or those places.” Especially not a punk kid with growing financial debts. Nick, 30, says he needed to find steady employment, which eventually led him to railroad work as a track laborer in Wisconsin. He currently is a train conductor based in Duluth, Minn. — far from his old activist friends. He’s getting married in June. The closest he gets to protesting is participating in union meetings, and calling and texting his sister. When Vic first started, Nick called with some advice. He still remembers the conversation, that he cautioned her not to let Occupy become all consuming. “I didn’t really know what all to say at the time,” he explains. “Just tried to tell her to be careful and don’t make it like work, like a job. I’d seen a lot of people … taking it to a point where it becomes too much work, too stressful.” When the activists deserted the camp during the Thanksgiving holiday, Vic insisted on remaining behind, her mother recalls. “Somebody had to be there,” Vic explains. “I didn’t trust leaving. I was scared. If I left and everyone else did, anything could happen.” What would the media say if they found a ghost town? she wondered. On Nov. 26 she wrote in her journal: “As of today I have been protesting for 50 days straight. Not one day I haven’t marched.” She had watched the camp grow from six tents to more than 40. In mid-December, Vic learned that a friend — not affiliated with Occupy — had died from a heroin overdose. She says she couldn’t handle the funeral. When word spread about a ride to Occupy DC, she took it. She left behind both her tent and an ambitious schedule of marches. She brought with her a backpack full of clothes and $3. Vic says she needed to step away from Charlotte’s small, intense group. She wanted to witness up close how a big city’s Occupy force handles things. She made sure to take a few Occupy Charlotte friends with her. Vic says she spent her first night with Freedom Plaza’s Occupy faction. There was no friendly circle, no introductions, and no all-night bonding session. “It was cold shoulders everywhere I went,” she says. “It was an ‘I’m too busy’ type thing. That was disappointing.” The next day, Vic and a friend moved their shared tent to Occupy DC at McPherson Square, just off K Street. She found a spot under a giant tarp that made up the neighborhood named after Malcolm X. She’d jump into people’s faces: “Hey, I’m Vic.” Vic’s voice eventually grew hoarse in D.C., too. She participated in marches against the National Defense Authorization Act — the recently signed law that allows for indefinite detention of American citizens. She screamed in front of the White House. She’d loved watching others do the same. “You could see it and it was beautiful,” she gushes, when we catch up with her in D.C. But there are fights at the camp nearly every night, she says. There are fights over missing money. There are fights over a missing laptop. There are drunken fights. Even worse than the fights — some days, there aren’t any marches at all, just rumors of marches. Sometimes, when they march, Vic says the organizers seem to get lost. We go to a used bookstore a short drive from the camp. She says she could spend hours there. She could fall asleep in a corner of the literature section. We walk around a bit, looking for a place to eat. Vic seems oblivious to the stores and restaurants. None of it matters. She isn’t protesting them. Vic admits that it had maybe been 24 hours since her last real meal. She is still an outsider at the camp, just an Occupy tourist. She only mentions one Occupy DC activist — a painter she had met on her first day. Her deeper connection is still with Occupy Charlotte. “I was really down about Charlotte and the state of things,” she says. “Coming here helped me get a little respect back for my hometown’s occupation.” Ten days into her stay, Vic develops a cough. “You lay down at night to go to sleep,” she explains, “and it’s just like a chorus of coughing.” We are sitting in a sandwich shop, the closest warm place to the camp that afternoon. Outside, it looks like it might rain. She admits: “I’ve been terrified … If I hear people coughing, I might put my bandanna up.” Vic gives her cough a funny name. She calls it her “Occu-Cough.” She thinks there’s another anti-NDAA march. Maybe it’s at 6 p.m. Maybe it’s at 8. She doesn’t know but she does want to join it. By 6:30, she texts: “No ones marching yet!,” then, “Im trying to see if anyones wanting to march at 8 against the ndaa.” Whatever plans there are wash away with the night’s heavy rains. We find her in her tent in the back of Fort Malcolm. A battery-powered lantern illuminates the small space filled with old clothes, half-empty sugar cereal boxes, and tangles of adapter wires. Vic would rather be marching. “Everybody’s pussing out, man,” she complains, curling up in a fuzzy blanket next to a new friend named Kiki. Even without the march, Vic has a lot on her mind — including her other Occupy Charlotte transplants. “My to-do list keeps growing,” she says. “I have to write three press releases. I have to call my lawyer tomorrow. I have to get Tate to call the lawyer tomorrow because he’s not doing it on his own, same with Jesse. Fucking babysit. I have to find out what’s going on tomorrow as far as marches. I’ve got two meetings tomorrow. It just doesn’t stop.” * * * * * Shortly before Christmas, Vic returns to Occupy Charlotte to address her court case and add a New Year’s Eve march to her to-do list. The planning hits a snag when police catch a couple activists burning American flags late one night and charge them with careless use of fire . One of the culprits claims that the flag burning was done as an attempt to motivate the camp. Instead, they receive a lot of bad publicity, and two well-attended but drama-filled general assemblies that fail to resolve the matter. A small faction of activists who don’t reside at the park walk into Occupy Charlotte and read a declaration that they are no longer working with the campers. Vic finds that the activists have done very little in her absence. They respond with laughter when she asks whether they had kept up the marches. “Is there a purpose in me doing this?” she worries. “I don’t know.” Vic was not on the scene at the time of the flag burning, but at her parents’ house. “We are the pissed off white kids. We need to be so much more,” she complains after hearing the news. “It’s now tarnished everything.” She then utters the previously-unthinkable: “I’m going later today to get my tent.” But Vic decides to keep her holiday march on schedule. She and about two dozen other activists read off her New Year’s resolutions in front of Wells Fargo, Bank of America and Duke Energy. They all begin the same way: “We the people of 600 E. Trade St. as a part of Occupy Charlotte, stand in protest of the injustices brought upon the city of Charlotte.” It is her last march through her hometown. Even before her return, she had planned her exit strategy, what she calls out her “Occu-Hop” — a nine-month tour of still-standing Occupy camps, with visits to friends and family along the way. The first stop would be a return trip to Occupy DC, then she’d travel to Chicago and maybe stop in on her biological father, and then to Duluth to see Nick. Eventually, she’d make her way to Oakland before returning east to Charlotte, in time for the Democratic National Convention in September. Before she leaves for D.C., her stepfather Danny Hill presents her with his Marine duffel bag, which he’d had since 1970. It fits with the boots and the Vietnam-era gas mask he’d given her. When she isn’t looking, he stuffs a $100 into her belongings. “It is different with her in D.C.,” Hill says. “You get a little more worried. You watch things going on there. You can tell it’s on a whole different level … We’d rather her stay here. But at the same time, we understand that’s what she was wanting to do.” On Jan. 4, Vic and her ride leave Charlotte. As they head out through the city, Vic stops at the Occupy site one last time. She still needs to get her old tent. She makes her rounds, too, saying her goodbyes. Some are sad, some are angry that she is leaving. They all tell her to “be safe.” Vic knows the camp may be gone by the time she returns. By the end of the month, it will be — police clear the site after the city passes an ordinance banning camping on public property. It is 1:40 p.m. when Vic finally gets going. “I’ll certainly be worried about the occupation as well as my family within and outside of it,” she texts, “but I’m ready for the road …”

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Employment Rate For Young Adults Lowest In 60 Years

February 9, 2012

Are you young and looking for work? You’re in good company. Just 54 percent of Americans ages 18 to 24 currently have jobs, according to a study released Thursday by the Pew Research Center. That’s the lowest employment rate for this age group since the government began keeping track in 1948. And it’s a sharp drop from the 62 percent who had jobs in 2007 — suggesting the recession is crippling career prospects for a broad swath of young people who were still in high school or college when the downturn began. “They had the misfortune to be born at a time that would dump them into this labor market as young people,” said Heidi Shierholz, a labor market economist at the Economic Policy Institute. “If we stay on the track that we’re on, this cohort is not going to outpace their parents.” The Pew study arrives just days after the Labor Department’s monthly jobs report, which showed the national unemployment rate trending down for a fifth straight month — a change that many took as a sign that the economy is finally beginning to right itself. Yet joblessness is still high, and financial security remains out of reach for millions more people than just a few years ago. Young adults were largely spared the collapse in wealth that many older Americans went through when the housing market imploded. Still, in some ways they have it the worst of any demographic. Besides the historically low employment rate for people in their late-teens and early-20s — which is, incidentally, about 15 percentage points below the general employment rate for working-age adults, according to Pew — the recession has eroded young workers’ paychecks to a far greater degree than any other age group. Among adults ages 18 to 34, more than a third say they have gone back to school in the face of a tough labor market, the Pew study notes. Nearly a quarter have taken an unpaid job or moved back in with parents. One in five have put off having a child or getting married due to economic concerns. Still, the young people surveyed by Pew seem remarkably optimistic. A full 88 percent say they’re either making enough to suit their needs now, or expect to in the future. And 60 percent of people ages 18 to 34 say their children will have a better standard of living than them. That prediction is notably more confident than that of people ages 35 and older, of whom only 43 percent have a similarly hopeful view. Young people are probably correct to say that their earning power will grow as they age, said Shierholz. But a wealth of research suggests that young people who enter the job market during a recession face years of wages that are lower than people who got there slightly sooner and had a chance to establish themselves. People who graduated and kicked off their job search in 2009 or 2010 are likely to experience pay 10 to 15 percent lower than their peers’ , for as much as a decade after leaving school. If all of this seems like grim news for young people, they can at least take comfort knowing that older generations seem to recognize their struggles. The Pew study found that among the general population, 41 percent of people think young adults have it tougher than anyone in the current job market, and a growing number of parents say they believe children should aim for economic independence by age 25, rather than a younger age. Part of that cross-generational commiseration may come from the fact that huge segments of the national population are struggling financially right now. Shierholz told The Huffington Post that the obstacles faced by young job-seekers reflect the muted health of the overall economy. “Things were not so great even before the recession hit,” she said, citing the growth of the wage gap and the decline of labor unions — trends that predate the current slump by several decades — as factors keeping the lower and middle classes from achieving greater economic buoyancy. “If you want to move the dial on what’s going on with young workers’ unemployment, you need to help the labor market more broadly.”

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BMW to recall 2,231 vehicles in S Korea

February 9, 2012

(MENAFN) South Korea’s transportation ministry said that due to malfunctioning cooling pumps, BMW would recall 2,231 passenger vehicles in the country, reported Xinhua News. The ministry added …

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France Q1 growth at zero GDP: CB

February 9, 2012

(MENAFN) The French Central Bank said that the country’s economy in 2012′s first quarter would be expected to record a zero growth, reported Xinhua News. Banque de France added that at the end of …

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Eight Killed in US Drone Strike in Pakistan

February 9, 2012

(MENAFN – Qatar News Agency) A missile attack by an unmanned US drone aircraft in north-west Pakistan has killed eight people, Pakistani security officials said. The missiles struck a camp about …

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Swiss Unemployment Rate Rises to 10-Month High

February 9, 2012

(MENAFN – Qatar News Agency) Switzerland’s unemployment rate rose to its highest level in 10 months in January as companies trimmed staff to cope with slowing demand for their products, data …

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Japan Current Account Posts Biggest Drop in 26 Years

February 9, 2012

(MENAFN – Qatar News Agency) Japan’s current account surplus plunged more than 40 % in 2011, the largest drop in 26 years. The decline came as the March disaster sent the nation’s trade balance …

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Getting caffeine fix as easy as taking deep breath

February 9, 2012

(MENAFN – Arab News) Move over, coffee and Red Bull. A Harvard professor thinks the next big thing will be people inhaling their caffeine from a lipstick-sized tube. Critics say the novel product is …

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Romney still struggles to seal the deal

February 9, 2012

(MENAFN – Arab News) Mitt Romney’s march to a possible Republican presidential nomination just got a lot longer and harder. Front-runner Romney left Tuesday’s round of three nominating contests …

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Bridge southern Europe and the Mediterranean

February 9, 2012

(MENAFN – Arab News) AT the beginning of 2012, Europe faces two simultaneous crises. Alongside the continuing instability of the euro zone lies the risk that the Arab uprisings could implode if …

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More than just Great Firewall awaits Facebook in China

February 9, 2012

(MENAFN – Arab News) When it comes to China, Facebook should consider itself forewarned. Cracking the world’s biggest Internet population might seem an obvious ambition for the social networking …

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Gandhi dynasty scion takes on low caste ‘queen’ in India vote

February 9, 2012

(MENAFN – Arab News) Millions of voters went to the polls in India’s most populous and politically important state on Wednesday, the first stage of an election that tests support for Prime Minister …

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Pamela Yellen: Five Tips for Relationship Fiscal Harmony

February 9, 2012

Money is the leading cause of marital and relationship troubles.  40% of married couples have serious, recurring arguments about money, according to Matt Bell, author of Planning for Fewer Fights with Your Spouse . 49% of those battles have to do with what to buy or not buy, 33% are about debt and 26% about savings. According to a survey by American Express , 27% of those who responded have lied about the amount of a purchase to their partner, and 30% have hidden purchases from their partner. And would it surprise you to learn that some people admitted to knowing their partner’s weight but not their salary? How compatible are you and your partner when it comes to money and finances? Many couples have different values where money is concerned and neglect to take the time to hash out issues that can potentially ruin their relationship. Just in time for Valentine’s Day, I’ve put together five tips for improving the fiscal harmony in your relationship… Tip #1:  Hold a monthly financial discussion night Since so many couples don’t talk openly about money, when money issues do come up, it becomes a sensitive subject and leads to conflict. The solution is to sit down with your partner every month and go over your spending and savings plan.  Look at everything you bought during the past month and everything you’re thinking of buying soon, and ask yourselves, “Is this really a need or a want”?   Awareness is the key to taking control of your spending habits, and asking questions like this one is very powerful. Also discuss and update your long-term and short-term financial and savings goals, and then ask yourselves if the purchases you’re considering will truly move you closer to those goals. Tip :  If you have children over age 6 or 7, include them in your monthly family finance night — it’s a great way to prepare your kids to be financially successful and responsible adults. Learn more about how to teach teens financial responsibility .  Tip #2:  Share responsibility It’s common today for one partner to play the primary role in managing finances.  But both partners should be aware and involved.  Make all decisions about major purchases together. Trap :  Allowing the partner with the biggest income to make major financial decisions alone. Tip #3:  Eliminate debt to outside financial institutions Debt is deadly to many relationships, and a top priority should be to reduce and eliminate debt to banks and credit card companies. One way to speed up that process is to make your spending decisions more consciously.  (See Tip #1 above.) Another key is building an emergency fund that can help you weather life’s emergencies. For tips on creating a rainy-day fund, including how much you should be setting aside, see the video, The Secret to a Financially Stress-Free Life .  Tip #4:  Have a “Plan B” One topic to be sure to cover during your family finance discussion night is what’s your back-up plan if things change.  What if one partner loses their job?  Or what if one partner wants to go back to school?  What if one of you gets a job in another part of the country? Tip #5:  How to take the first step There’s no time like the present to start or deepen the money conversation with your partner.  And here’s a fun, non-threatening way to do that… Begin by taking our Love and Money Financial Self-Assessment . I encourage you and your partner to take the 3-minute assessment , either separately or together, and see how your money values differ from one another.  I think you’ll find this to be eye-opening! As a consultant to financial advisors, Pamela Yellen investigated more than 450 savings and retirement planning strategies seeking an alternative to the risk and volatility of stocks and other investments. Her research led her to a time-tested, predictable method of growing and protecting savings now used by more than 400,000 Americans. Pamela’s book, Bank On Yourself:  The Life-Changing Secret to Growing and Protecting Your Financial Future is a New York Times Bestseller. Learn more at www.BankOnYourself.com

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