nutrition

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Still riding the holiday shopping high, Americans are feeling more optimistic about the economy than they have in almost a year, according to data released Friday. Yet with credit card spending on the rise and unemployment still high, it’s unclear whether this cheer is anything more than blissful ignorance. According to the most recent Thomson Reuters-University of Michigan survey, the consumer sentiment index rose to 74 in early January, up from 69.9 in late December, as Dow Jones reported . This is the highest level the index has reached since February 2011. The index, which is calculated bi-monthly, surveys consumers’ assessments about the overall state of the economy, as well as their own personal finance and spending habits. One big reason people may be feeling optimistic is the recent dip in the unemployment rate to 8.5 percent in December . With the new-found security of a paycheck, it’s easy to dream about all the things you will buy. What’s not clear is whether consumers will actually be able to afford these dreams. Unemployment is still high by any standard, and much of last season’s happy holiday purchases were done on credit cards. Consumer borrowing jumped up $20.4 billion in November , the biggest monthly change in 10 years, according to data released Monday by the Federal Reserve. In the upcoming months, it’s possible that bliss will turn sour when bills start arriving. December retail sales were also not spectacular. Overall sales were up only 0.1 percent from November , and usually-sparkling electronics and online stores were some of the lower performing categories. Many of the retailers who did see strong sales in December did so through deep discounting. Such discounts are not likely to continue into the year, leaving even less reason for shoppers to spend money and boost the economy in 2012.

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New Survey Shows Consumers Are Possibly Blind To Economic Realities

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Huffington Post…

Medicare recently announced new regulations that authorize reimbursement for obesity management counseling by physicians. That’s good, assuming the counseling is good. We are a long way from being able to count on that, however. With a nod to my many colleagues who are genuinely expert in weight management counseling, and have long addressed it well — and especially to those who taught me to do so — I must acknowledge that the track record for the large majority of our clan is not pretty. Historically, there have been two ways physicians have mucked up weight management counseling: by providing it, and by not providing it. The problem with not providing it is pretty self-evident. If a patient presents who is clearly severely overweight — perhaps even huffing and puffing just to settle into the exam room — not to address it is both ludicrous and an abdication of clinical responsibility. It would be as if a patient walked into the office with a spear sticking out of their chest, and left in the same condition with no mention of it in between. But bad counseling can be worse than none at all. When the best a doctor can do is blame the victim — “don’t you know that being so fat is bad for you?” — the net effect can range from an erosion of the patient’s self-esteem, to outright estrangement of the patient from the medical system. The former is bad enough — making a patient feel about an inch tall (note that if height goes down while weight remains constant, BMI actually goes up; talk about counter-productive!). The latter, however, can actually be life-threatening , when patients eschew vital preventive services, such as Pap smears or mammograms, or neglect essential care to avoid the associated denigration. This may sound like melodrama, but I have first hand knowledge of cases in which bad obesity counseling ultimately proved lethal, and other cases in which it was nearly so. It is in this context that the new Medicare regulations must be assessed. The change is good in that lack of reimbursement has long been cited as one of the impediments to weight management counseling . Extending this line of reasoning, the case can be made that lack of reimbursement means lack of counseling; lack of counseling means lack of experience with, or dedication to, counseling; and lack of experience and dedication in turn mean that such counseling as does occur will tend to be poor. If this were the whole story, then reimbursement might fix everything. But it’s not the whole story. Docs don’t tend to get much training in nutrition , and while this has been oft lamented, it is difficult to fix due in part to the intense competition for real estate in the crowded landscape of medical education. There is, it seems, ever more to cram into those four years. Even if time for robust nutrition education were claimed, it would only be a start. Training in behavior modification also tends to be limited, and would need to be upgraded considerably. Perhaps less daunting than these, additional training would be required for effective promotion of physical activity as well, along with the proper ways to measure and monitor not just weight but body composition. And because in unity there is strength, approaches to weight control that engage the whole family are best. One person on a diet is weak; a family seeking health together is strong. So good counseling should address all household members, another area in which physician training (with the possible exception of family practitioners) is limited. Were all such upgrades to occur in medical education, formidable challenges would still remain. The first is obvious: those notorious “15 minute encounters,” which are in fact often less, don’t allow time for conventional behavior modification counseling even by those who know how to provide it. The second, obvious to those of us in the medical trenches, is apt to be less so for others. The time-honored adage to describe medical education is “see one, do one, teach one.” If trainees don’t see their mentors practicing weight management counseling, they will be dissuaded from doing so. Getting beyond the impasse requires concurrent incentives for docs in practice — which the new reimbursement scheme may provide — and improvements in training so that the next generation of practitioners can do this job better. There are ways to address these issues. One is to enhance medical school and medical residency curricula in these areas. That struggle is underway all around the country. Another is to deliver relevant material in time-honored ways, such as textbooks . Yet another is interactive on-line training specific to weight management in clinical practice, and incentivized with continuing medical education credits. CME credits are required to maintain medical licensure, and thus serve as a potent goad. But even if all of this were to move forward in tandem, physicians would still be struggling to allocate time to weight management counseling and away from other matters. The solution to this is for physicians to initiate the counseling, and then defer to others better suited to address the details. Dietitians are the obvious choice . In some cases, health coaches could play this role as well. But for this strategy to work, there would need to be reimbursement for that counseling as well. Another, and perhaps even better option, is for clinicians to be able to direct patients into well-established weight management programs. There is a lot to a comprehensive weight management program , and it’s unlikely that even a highly skilled and motivated physician could address all of this on his or her own. Two very compelling recent studies ( 1 , 2 ) suggest that Weight Watchers does a far better job at this than primary care — so linking the two is attractive. But again, the reimbursement model does not yet correspond. Another challenging issue is the linkage of reimbursement to outcomes. On the one hand, it is quite appropriate to ensure that we are “getting what we are paying for.” And of course, we are paying — since ultimately, Medicare and Medicaid resources derive from taxpayers. We should all want to know that counseling is actually working. The danger in this is that weight change is the obvious measure of success, but not the right one. A physician might counsel well, and yet a patient with many other challenges in their life might not comply. Should a physician who takes care of especially challenging patients be financially penalized? Even more compelling is the fact that two patients might be equally diligent about improving diet and activity, but one might lose weight and the other not — due to genetic factors and other causes of relative weight loss resistance . Should that good faith effort by physician and patient alike — an effort likely to improve health even if weight does not change — be dubbed a failure? Pay-for-performance might more reasonably focus on behaviors individuals do control directly — such as dietary choices and activity pattern — than on weight, which they do not. While good quality counseling may help with weight management, we should not get carried away with that idea. The metabolic complications of obesity are bona fide clinical problems, but weight gain over time is quite another matter. Weight gain is a result of more calories in than out, and that in turn is largely the result of a modern, obesigenic environment and the ways in which a majority of us interact with that environment. It is about daily use of feet and forks. It is about food marketing and food processing; suburban sprawl and drive-throughs; vending machines and video games; long days and labor-saving technology. Medical school does not provide a fix for any of these! The origins of prevailing weight gain and obesity are not clinical — they are not about physiology run amok- they are societal . Fixing obesity will thus require a societal response. It will require solutions populating the settings where people spend most of their time, and make relevant decisions about the use of feet and forks — home, school, and work; supermarkets and shopping malls; online, in church, and so on. Empowering programming can be devised to populate all such settings – and physicians can guide patients to its use. One national physician organization has endorsed a supermarket-based nutrition guidance system to that end. Many more such linkages between enlightened clinicians and empowered patients will help us get to the prize. So what , exactly, does reimbursement for obesity counseling give us? It can help make physicians a part of a comprehensive solution. Being a part of the solution is far better than being a part of the problem. So reimbursement for counseling is a good start- assuming we can make sure the counseling is consistently good. But we clinicians, at our best, can never be more than a modest part of the comprehensive solution epidemic obesity requires. We will see the toxic tide of epidemic obesity turn when, and only when, we fix the problem at its many sources in our society — and make eating well and being active the norm, rather than the exception. When health is found along the path of lesser resistance, rather than the road less traveled. The promise of that day is great. We have miles to go to get there from here! -fin Dr. David L. Katz; www.davidkatzmd.com www.turnthetidefoundation.org

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David Katz, M.D.: How Can Doctors Become Part Of The Obesity Solution?

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Mayor Bloomberg’s Ex Sells NYC ‘Bachelorette Pad’

November 22, 2011

We know that Mayor Bloomberg lives in the lap of Old World luxury in his string of East Side townhouse, but his ex, Susan Bloomberg, has a roost rivaling the mayor’s Baroque maison, as well? Or at least she did.

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Sid and Mercedes Bass Split!

October 7, 2011

FORT WORTH — Mercedes and Sid Bass, anchors of the city’s business and philanthropic world, announced their divorce Thursday, ending 23 years of marriage. Through a lawyer, they released a joint statement that they “mutually agreed to end their marriage” and that they “continue to love each other and remain good friends.”

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For-Profit College Chain In Kentucky Accused Of Cheating Students Out Of Financial Aid

July 27, 2011

The Kentucky Attorney General filed suit Wednesday against a chain of for-profit colleges in the state, claiming that administrators at Daymar Colleges have consistently deceived students by making false promises about the ability to transfer course credits and have forced them to purchase textbooks and supplies at substantially marked-up rates. Attorney General Jack Conway (D), who is leading a multi-state investigation into for-profit colleges with top prosecutors from 18 other states, alleged that Daymar Colleges violated state consumer protection laws by engaging in “unfair, false, misleading and deceptive acts and practices” involving financial aid and recruitment of students. The suit seeks damages and restitution for approximately 5,000 students who were allegedly swindled by the schools. The for-profit college industry, which has tripled in size over the past decade, is facing increased scrutiny on a national scale as evidence mounts that some schools are aggressively recruiting unsuspecting students and capturing disproportionate shares of federal student aid dollars as revenues. Many students leave the schools with unmanageable debts and little in the way of job prospects, leading to a high rate of federal student loan defaults . Although Conway has been conferring with other state attorneys general from around the country, the case against Daymar Colleges is confined to Kentucky. Daymar operates 16 campuses in Kentucky, Ohio and Indiana, along with an online program. The schools have among the highest student loan default rates in the state, with nearly 37 percent of students at one of the Daymar schools defaulting on loans within three years of leaving the institution, according to data from the Department of Education. The court filing states that administrators at Daymar purposely force students to purchase textbooks and other supplies from the school itself, instead of through third-party vendors that would charge substantially less. Instructors and other employees tell students that they must purchase textbooks from the school in order to use their financial aid dollars, according to the filing. “We’re alleging that this was a sophisticated and systematic effort on the part of Daymar to deny students access to their financial aid funds so that they could receive the benefit of marking up the books,” Conway said. Administrators tell employees not to provide students with serial numbers or other information about textbooks, intentionally shrink wrapping the books to hide information that students could use to purchase the materials through another bookstore or the Internet. “Defendants are engaged in a sophisticated practice of deceiving and misleading students about their textbooks and financial aid so that students will be forced into purchasing their textbooks and supplies from Daymar College at prices substantially higher than other vendors,” the filing reads. “Defendants have engaged in unconscionable conduct in causing students to incur additional educational costs and interest charges.” A spokesman for Daymar, Tom Nunez, said the company has not had a chance to review the specific allegations in the lawsuit, but said the company will defend itself “vigorously” in court. Conway would not say how much the school was marking up the textbooks for students. Other allegations in the lawsuit involve issues of transparency and misrepresentation during the recruiting process. The investigation found that employees at Daymar are not transparent up front about the amount of tuition and other costs that students will incur. Recruiters also make unfair promises about the value of the courses, according to the complaint, engaging in a practice of “enrolling and retaining students with false assurances that their credits will transfer to public or traditional schools, when, in fact, the credits do not transfer in most circumstances.” In addition to the multi-state probe into for-profit colleges, Conway’s office in Kentucky is investigating six other colleges in the state over potential misrepresentations about job placement and misleading recruiting tactics that violate state consumer protection laws. “We need to make sure that these institutions … are just as interested in taking care of students and finding them a job and educating them as they are in getting their hands on public taxpayer money via student loans,” Conway said.

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How Do You Like Them Apples? McDonald’s In Health Food Push

July 27, 2011

TORONTO – McDonald’s Canada is adding dairy and trimming some of the fat from its Happy Meals as part of a broader health push. By the beginning of next year, the children’s meal boxes will come with a serving of strawberry yogurt and a smaller, 31-gram serving of fries that contains 100 calories. The changes come as the fast food industry faces criticism from health officials and others, who blame the chains for childhood obesity and other health-related problems. Louis Payette, a spokesman for McDonald’s Canada, said the initiative will be tested in the fall and rolled out at the end of the year. “It’s all part of our menu evolution, which is an ongoing process,” said Payette. “We’re continuing to listen to our customers and trying to meet their needs. People are asking us for more variety, more choice, and we’re glad to provide it to them.” McDonald’s Corp. in the U.S. also announced changes to its Happy Meal on Tuesday. It plans to include a half-order of apples and a half-order of fries, with all fries or all apples available on request. Customers can already choose between apples and fries, but only about 11 per cent of U.S. customers were ordering apples, the restaurant said. Michelle Obama applauded the restaurant for taking a positive step toward solving childhood obesity. But critics wasted no time complaining that the U.S. changes don’t go far enough. Kelle Louaillier, executive director of a group called Corporate Accountability International, said McDonald’s is just trying to get ahead of impending regulations that will restrict the marketing of junk food to children and require restaurants to post nutrition information on menus, among other changes. “McDonald’s is taking steps in the right direction, but we should be careful in heaping praise on corporations for simply reducing the scope of the problem they continue to create,” said Louaillier. McDonald’s says the new directives are “absolutely not” related to impending U.S. regulations that will force the industry to curb the marketing of junk food to children and post nutrition information on menus. Rather, the changes are a response to what customers were asking for, said Cindy Goody, McDonald’s senior director of nutrition. “We’ve been in the nutrition game for over 30 years in providing nutrition information to our customers,” Goody said. “Now what we’re doing is we’re adding more food groups and … creating nutritional awareness.” McDonald’s in the U.S. is also launching a nutrition-focused mobile phone app and pledging to reduce sugars, saturated fats, sodium and calories in its menu items by 2020. By 2015, it will reduce sodium by 15 per cent. But the fast food giant did not provide details on how it will do so, saying only that it will use “varied portion sizes, reformulations and innovations.” The nutrition talk also has helped McDonald’s grab business from other fast-food restaurants, even as the recession forced people to cut back on eating out. McDonald’s has worked to paint itself as a healthy, hip place to eat, offering wireless access in restaurants and introducing smoothies and oatmeal, moves that other fast-food companies are now trying to replicate. Goody said the change is indicative of “incremental lifestyle modifications.” Asked why McDonald’s didn’t eliminate fries, she said that “all foods fit when consumed in moderation.” This isn’t the first time the world’s largest burger chain has tried to paint itself as an emissary of nutrition. In the ’80s it created a fitness program for middle schoolers featuring gymnast Mary Lou Retton. A decade ago, McDonald’s used spokesclown Ronald McDonald to encourage parents to get their children immunized and to tell kids to drink milk. In 2004, McDonald’s christened Ronald a “balanced, active lifestyles ambassador” and passed out pedometers to encourage exercise.

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Steve Mariotti: How to Start a Non-Profit, Part Four

June 24, 2011

This is the fourth of four articles on starting a non-profit enterprise. Read Part one here and part two here . Here are some more issues and topics that will come into play when you begin a non-profit organization. Again, much of this advice would be useful in a for-profit startup, as well. Document Your Program You should document everything you do. For the first ten years, put half your money into programs and the other half into research and development. Explain to funders that you are looking for breakthrough ideas that will greatly expand and facilitate your mission. Always keep your research budget separate from your program budget; if they are combined, it will skew your cost-per-change unit. Try to have one set of funders to finance your research and another group fund the programs. Media There is nothing you can do to help your mission more than getting widespread media attention. Get the story right by demonstrating positive change in individuals involved in your program (as Jan Legnitto, formerly of 60 Minutes told me once). Developing a story based on improved conditions or behavior (depending on your mission) due to your program will be the key to attracting media notice. It is usually worth it to hire a public relations expert. Tell the Truth Do not exaggerate your program results. If you tell the truth, you will have nothing to be ashamed of. People will admire you for it. Develop an Earned-Revenue Strategy It is a good idea to have a product or service that you can sell directly to the public, rather then rely wholly on donations and grants. However, this scenario should not be developed for several years, until you are fully established as a non-profit. For one thing, it can derail you and your team from your primary mission. Also, if you are successful in raising revenue through a product or service, people will wonder why you became a non-profit in the first place, and be reluctant to donate money. Growth Can Kill Uncontrolled growth can destroy your organization. Don’t think that because your program has suddenly taken off and is expanding you can just let it go without careful supervision. If you’re not careful there will be a decline in the quality of the delivery of benefits to your target audience. My experience is that growth over 25% is unmanageable in a non-profit venture. Establish a Reserve Fund From day one, put a modest percentage of each dollar you raise into a reserve fund. It will keep you afloat if your top donors withdraw their funding (as they almost certainly will, eventually). If supporters question your development of a reserve fund, and try to prevent you from achieving financial independence, they are not your friends. Do not forget that you are dependent on your donors’ wealth. Becoming financially independent may not be one of their goals for you. But it should be your goal for yourself and your organization. Hire the Best People Hire the best people you can get. Compensate them as well as you can, and give them incentives to make bonuses. Even in non-profit environments, money matters – people have families to support and their personal aspirations. Be clear about what your employees have to achieve to earn bonuses and raises. Open Book Management Jack Stack’s Open Book Management is a must-read. In it he argues that letting people see the financials of an organization is absolutely critical for success. At NFTE, every aspect of our financial circumstances except salaries is open for inspection. Continue Strategic Research Hire a top researcher from a college or university that specializes in the area you are working on. Often, a professor will find a graduate student to do a Ph.D. thesis on your program. Develop a research design based on your unit of change. Whenever possible use the “random assignment” method in comparative studies, rather than just a control group. Think Globally A local problem is usually a global one as well. Food, shelter, health, education, environment – make a breakthrough locally and it will help people everywhere. Final Thoughts… I originally founded NFTE as a for-profit. I wanted to make money and solve a social problem at the same time. My primary motivation was split. I wanted to do both, but since the audience I wanted to reach — low-income youths and their parents — could not afford the products and services I wanted to develop, I established a non-profit instead. I realized that if NFTE were successful I would never be able to sell the company, and thus make a financial return on my investment, but I thought I would be paid in the personal satisfaction of having made a difference in the lives of many deserving individuals. And I was right.

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U.S. Manufacturing Orders Rose Last Month, Easing Fears Of Slowdown

June 24, 2011

New orders for U.S. manufactured goods and a gauge of business spending plans rose in May, easing fears of a sharp slowdown in factory activity. Durable goods orders increased 1.9 percent after dropping 2.7 percent in April, the Commerce Department said on Friday. Economists had expected orders to rise 1.5 percent in May. Durable goods orders are a leading indicator of manufacturing health. An improvement across the board in May and revisions to April’s figures, which showed smaller declines than previously reported, pointed to underlying strength in a sector that has powered the economic recovery. The report came as a relief to investors after recent regional factory data had shown some signs of fatigue. Supply chain disruptions after the March earthquake and tsunami in Japan are constraining manufacturing. The report was “a little better than you might have expected given the gloomy news that’s coming out of the manufacturing surveys. So that’s a small plus,” said Nigel Gault, chief U.S. economist, IHS Global Insight in Lexington, Massachusetts. U.S. stocks extended gains on the data, while prices for Treasury debt fell. The report also supported views the sluggish economy would regain momentum in the second half of the year. The economy grew at an annual rate of 1.9 percent, the department said in another report, up from the previously estimated 1.8 percent. The revision was in line with economists’ expectations. The economy expanded at a 3.1 percent rate in the fourth quarter. Orders were a buoyed by a 36.5 percent jump in volatile aircraft bookings. Boeing received 27 aircraft orders, up from just two in April, according to information posted on the plane maker’s website. Motor vehicle orders rose 0.6 percent after plunging 5.3 percent the previous month, suggesting some improvement in auto production, which has been hit by a shortage of parts from Japan. Excluding transportation, durable goods orders increased 0.6 percent after a revised 0.4 percent decline in April, previously reported as a 1.6 percent fall. Economists had expected this category to rise 0.9 percent. Outside of transportation, orders for machinery, primary metals, capital goods, computers and electronic products all rose. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, rebounded to increase 1.6 percent last month after a revised 0.8 percent fall in April. Economists had expected a 1.0 percent increase from a previously reported 2.3 percent drop. Shipments of non-defense capital goods orders excluding aircraft, which go into the calculation of gross domestic product, increased 1.4 percent after falling 1.5 percent in April. (Reporting by Lucia Mutikani; Editing by Neil Stempleman) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Cheerios, America’s Top Cereal, Turn 70

June 24, 2011

BUFFALO, N.Y. — Here’s a little quiz for the breakfast table: What is the most popular cereal brand in American grocery stores? Hint: It’s been General Mills’ top name since 1951. Another hint: If you’re a parent, you’ve vacuumed it from the minivan and under the high-chair cushion by the cupful. The answer, of course, is Cheerios. The iconic cereal, known by its distinctive yellow box, is 70 years old this year and still a force on the breakfast cereal market. One out of every eight boxes of cereal to leave the shelf in America carries the Cheerios name. “They’ve been around since the beginning of man, right?” said Kathy Scott in Cape Coral, Fla. For her, the cereal’s linked to memories of childhood Saturday morning cartoons. “My mother was very old-fashioned, a stay-at-home mom,” Scott, 50, said, “She made breakfast every morning, but on Saturday morning we were allowed to have cereal. Throw some fruit in there, sit on the floor and watch cartoons.” The tradition repeated itself with her own two children. “Saturday morning cartoons and Cheerios,” she said. To make Cheerios, balls of dough are heated and shot out of a “puffing gun” at hundreds of miles an hour, according to General Mills. The company’s waterfront plant in Buffalo has been firing them off since 1941, often cloaking the city with a distinctive toasty-with-a-sweet-finish aroma and inspiring T-shirts announcing “My city smells like Cheerios.” More than 10 shapes and sizes were considered before the makers settled on little Os. Since then, the company’s introduced several new flavors, starting with Honey Nut in 1979 and last year, chocolate. In 2009, sales of Honey Nut Cheerios surpassed the original flavor for the first time and remain in the top spot today. But Kathleen Dohl, 30, sticks to the originals, the ones she refers to as the “old-school, yellow box, plain Jane” variety. She buys it in bulk at Sam’s Club to keep her 6- and 3-year-olds happy. “That’s one of the first `real people’ foods that they ate,” the Chester, Va., mother said. “They know when we’re having a morning where we’re running late, they’re like, `can I get a snack bag of Cheerios?’” she said, “because it’s something I can’t say no to. I can say no to chips. I can say no to candy. I can say no to a dozen other things, but a snack bag of Cheerios? How can you say no to that?” So yes, she’s cleaned them out of the car seats. “At least they’re not sticky,” she said, “so that’s a plus. And they’re not so colorful. Once you grind them in they just look like the rest of the dirt, they don’t look neon-colored.” Minneapolis-based General Mills began advertising Cheerios (first called Cheerioats) as a first food for toddlers in 1974. Since 1999, the company has focused on promoting the cereal as healthy; it’s made from whole-grain oats, with 3 grams of fiber and 1 gram of sugar per serving. But in 2009, federal regulators took issue with the cereal box’s claim that it was “clinically proven to help lower cholesterol.” In a warning letter, the Food and Drug Administration said only FDA-approved drugs can make such a claim. General Mills, in its response, stood by the claims and said the FDA’s complaints dealt with how the language appears on the box, not the cereal itself. The case is still open, an FDA spokeswoman said. “I went through a phase in high school where I drank Coca-Cola and carried around a box of Cheerios in my back pack,” said Dohl, whose course schedule and yearbook duties often kept her at the computer and in her car through meals. “That’s literally what I ate for breakfast, lunch and dinner,” she said. “…At least I felt like it was healthy.” Since cereal is the major source of fiber for Americans, something most people shortchange themselves on, Cornell University nutrition expert David Levitsky said it’s actually not a bad idea to eat cereal as a relatively low-calorie lunch or dinner once in a while, even the sugar-sweetened variety. “They’re seducing kids to eat it,” he acknowledged. “It’s a technique that breakfast food companies have learned and it works… but it’s got a good aspect because that’s where they’re getting their fiber in the morning,” he said. “And all these cereals are enriched.” Americans spent $6.4 billion on ready-to-eat cereal in the 52 weeks ending May 15, according to SymphonyIRI Group, a Chicago-based market research firm that tracked sales at supermarkets, drug stores and mass merchandise outlets, excluding Walmart. In honor of Cheerios’ 70th Buffalo’s Citybration Festival highlighting its assets will include a June 26 Cheerios breakfast in sight (and smell) of the General Mills facility. “Cheerios are actually a more iconic food to Buffalo than even the ubiquitous chicken wing,” said festival organizer Marti Gorman. (The spicy Buffalo wing came along in 1964.) “There just must be something so gently appealing about the product,” said Dave Hassett, a school counselor whose Born in Buffalo site sells the Cheerios T-shirts online and at local festivals. Along with his 4-year-old daughter, he said he eats a bowl daily. “I hope they stick around for 70 more years and beyond.”

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Chris Christie Has Some Advice For Obama

June 24, 2011

TRENTON, N.J. — New Jersey Governor Chris Christie says he thinks President Barack Obama should follow his lead and personally engage in budget talks with lawmakers. Speaking on NBC’s “Today” show on Friday, Christie said “you can’t negotiate through a second person.” The Republican suggested the first thing Obama do about debt ceiling talks is “show up.” “Everybody needs to bring skin to the game,” said the New Jersey governor. Christie’s comments come one day after reaching a compromise with Democratic leaders to require public employees in New Jersey to pay more for health and pension benefits. In an interview with The Associated Press, Christie called the deal his greatest accomplishment since taking office in 2010. During the one-on-one, the GOP governor who was elected into office last year was asked about sharp remarks he recently directed toward a voter after she asked him about where his children go to school in the context of where he stands on education policy. “You don’t send your children to public schools,” a woman said to the governor, according to CBS New York. She continued, “You send them to private schools, so I was wondering why you think it’s fair to be cutting funding to public schools?” Christie’s response : “It’s none of your business. I don’t ask you where you send your kids go to school, don’t bother me about where I send mine.” Host Matt Lauer told Christie that even he was “surprised” by the governor’s comments before playing a clip of the exchange that had gone down. He asked the Republican governor if his remarks were “a little harsh” even for someone known not to mince words. Christie said, “No it’s not, because her point is completely ridiculous. I shouldn’t be able to make decisions about budgetary issues that relate to public schools because my children go to private school, that was the question. And, it’s none of her business where I send my kids to school.” WATCH: Visit msnbc.com for breaking news , world news , and news about the economy

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Paper or Plastic? Neither, At New Grocery Store Without Packaging

June 24, 2011

Austin, Texas is already home to Whole Foods, but that won’t stop a group of entrepreneurs from founding a new grocery store right in the natural food behemoth’s backyard. While the new store In.gredients will also specialize in local and organic ingredients, there’s one major difference between this venture and its hometown competion: In.gredients promises to be the country’s first ever “package-free, zero waste grocery store.”

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Mark Bourrie: Canada’s New Bills Won’t Change Old Financial Habits

June 24, 2011

In a drawer somewhere, I have a nickel-sized coin of the Roman emperor Gallienus (ruled 253-268 AD). Gallienus is long-forgotten, but he shouldn’t be. He is one of the true fathers of inflation, and there should be a statue to him on the Acropolis in Athens and in the lobby of every government’s central bank. Gallienus was a victim of bad timing. Plagues and invasions had weakened the Roman Empire. Big chunks of it were seceding and rebelling. Gallienus rarely visited Rome. He spent most of his reign on the road, hunting down various barbarian hordes and rebel legions. And he fretted over his finances. Because of the wars and the decline of trade, (along with hoarding by nervous Romans), silver disappeared from circulation. Coins were almost impossible to come by. Gallienus’ money guys came up with a solution to this problem. They got the mint to stamp his coinage in copper. Then they put a silver wash on the coins. Gallienus paid his army with it. The resulting carnage left Gallienus and his entire family dead, his statues smashed and his monuments pulled down. Geneologists re-wrote family histories to erase Gallienus. I bring up poor Gallienus just hours after seeing Canada’s new polymer $100 bills. I was at a news conference where these bills were handed out to reporters. We had to give them back, but, while we had them, I went at mine with every intention of seeing if it really could not be torn or mutilated, as the Bank of Canada’s people said. Some of the people around me reacted in horror at the disrespect I showed to my little piece of plastic, as though “money” — even a piece of holographed chemistry that no one would accept as money right now — was somehow sacred. Money is what people think it is. A “dollar” used to be the same everywhere: one ounce of silver, give or take a small nip. A dime was 1/10 of an ounce of silver. A “penny” was, for hundreds of years, 1/240 of a Roman silver pound, which was 12 troy ounces. A British pound morphed from those 12 ounces of silver to ¼ ounce of gold, which was also about the size of a U.S. $5 gold piece. A U.S. $20 gold piece was just under one troy ounce of gold. A century ago, Canadians were very familiar with the big British copper penny, which was about the size of a loonie and had about the same purchasing power. But now money is all numbers, articles of faith. Canada’s paper money used to bear the words “The Bank of Canada will pay to the bearer on demand…” the number of dollars on the bill. The bill was a promise to pay money. By sleight of hand, the bill somehow became money. Money and governmental jiggery-pokery have always been intertwined. Henry VIII’s subjects called him “Old Copper Nose” because he watered his silver coins down with so much copper. I have a $50 trillion Zimbabwe note around the house somewhere, one of the last bills issued by Robert Mugabe’s regime before the German printers stopped the presses until their account was settled (in Euros). Somewhere else, I have a stash of billion-mark bonds issued by Germany’s Weimar Republic in 1923. That inflationary trick, which conned some of my gullible relatives and wiped out the bond-holding German middle classes, helped seal the German republic’s fate. (The company that printed the German bank notes in the worst weeks of the inflation submitted a bill to the government for 32,776,899,763,734,490,417.05 marks.) Sound currency issuers: Elizabeth I, Julius Caesar, Constantine the Great, Napoleon, George Washington, Sir John A. Macdonald, Otto von Bismarck. Unsound currency issuers: Richard Nixon, Jimmy Carter, unlamented Gallienus, the Soviet Union, Communist China, Robert Mugabe (and Abraham Lincoln, just to throw a wrench into my own argument. But war is hell on currency). We’re in for a reckoning about money, not because we’ve physically debased it, but because we don’t understand it. The yuppie who stiffs a waitress on a tip has no problem bidding up a house by $50,000 over its asking price, which already reflects a speculative “value” that has no basis in intrinsic costs. Politicians in Canada hold a five-week election campaign to argue about economics, then pass $275 billion in spending, some 800 pages of estimates, in far less time than it takes to read them. Each Canadian family has, on average, some $180,000 in mortgage and personal debt. Take out the renters, the people making minimum wage, people with bad credit, the elderly who have the sense to be debt-free at retirement, people who abhor debt or have religious scruples about usury, and the small number of people who are so rich that they rarely borrow, and you have a skilled working class and a professional middle class in deep, deep financial trouble. The CMHC, which insures most of the worst of Canadian mortgages, has more risk on its books than the amount of the federal debt. We also hide debt by spreading it among pension plans, provinces and municipalities. Our statisticians play with numbers to try to convince us that inflation is much lower than it actually is. Our allies and friends are already showing us the future. In Greece, revolution is in the air because the government is worse than broke. In the U.S., public debt levels are above the ability of most people to comprehend. It’s like trying to calculate the number of stars in the universe. Eventually, things will work out. People will need stuff. People will make stuff. People will carry stuff around and sell it. Barter is far less efficient at setting prices than a cash economy, so people will create good money out of necessity. But the road between now and then could be pretty rough. I doubt the new plastic currency will help, though I did find that if you do pull really hard, you can stretch the new bucks. You just can’t stretch them far enough.

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Deutsche Fired Top Trader After Complaints Of ‘Substantial’ Anomalies

June 24, 2011

NEW YORK (Matthew Goldstein) – In the fall of 2009, Deutsche Bank quietly fired one of its top derivative traders in London after a colleague in New York complained about finding “substantial trading anomalies” in a multibillion dollar portfolio of high-risk credit default swaps managed by the German-based bank, Reuters has learned. The bank dismissed Alex Bernand after a quick internal investigation prompted by the employee’s complaint led to the discovery of improper trading in one of Bernand’s personal brokerage accounts, according to documents seen by Reuters and interviews with people familiar with the situation. The documents, part of a Sarbanes-Oxley whistleblower action filed against Deutsche in May 2010 by the employee in New York, also reveal that the Securities and Exchange Commission opened an inquiry last year into a related allegation that some of the assets in the derivatives portfolio overseen by Bernand may have been improperly valued in order to hide trading losses. Deutsche bank spokeswoman Renee Calabro declined to comment on Bernand’s dismissal. But she said the allegation that some assets in the bank’s derivatives book had been improperly valued was investigated by the bank and is “wholly unfounded.” The SEC investigation and Bernand’s October 2009 firing, neither of which has been previously reported, come as Deutsche is aggressively winding down the portion of its derivatives trading business that Bernand had overseen. Earlier this month, the bank reported in an investor presentation that its plan to unwind its “high-risk” credit correlation portfolio “is well ahead” of schedule. The bank first announced a plan to begin “de-risking” some of its derivatives trading desks in late 2008. In January, Deutsche settled the whistleblower case by agreeing to pay $900,000 to trader Matthew Simpson and promoting him to managing director shortly before he voluntarily agreed to leave the bank in April. It was the largest Sarbanes-Oxley whistleblower settlement for a complaint filed in 2010. Simpson, who now works for Rochdale Securities in Stamford, Connecticut, did not return a phone call seeking comment. UNFOUNDED ALLEGATION “This complaint, which is over a year old, has been the subject of a thorough investigation, and we believe that any allegations about financial misreporting are wholly unfounded,” said Calabro, who declined to comment on the terms of the settlement with Simpson. “The bank is cooperating with the SEC on its review of the matter.” An SEC spokesman declined to comment. Bernand, who lives in France, also declined to comment. On his LinkedIn profile, Bernand describes himself as an “independent philanthropy professional.” Simpson’s and Bernand’s names were redacted from the whistleblower documents seen by Reuters, but their identities were confirmed by two people familiar with the situation. In its settlement agreement with Simpson, Deutsche also denied “any wrongdoing in connection with the matter.” In light of the settlement, the U.S. Department of Labor in February closed its investigation into Simpson’s claim that he had been retaliated against by some of his superiors for bringing the allegations of improper trading to the attention of the bank’s compliance department. The firing of Bernand, a one-time rising star in the derivatives world, is something of an embarrassment for Deutsche. In 2006, the bank issued a press release to trumpet his hiring from Bank of America as its global head of credit correlation. At BofA, Bernand had pretty much built the Charlotte, North Carolina-based bank’s structured credit trading business from scratch. Inside Deutsche, the portfolio that Bernand oversaw from London was called the “exotics book,” because many of the derivatives in the portfolio were tied to complex securities. At its peak, the portfolio was one of the largest on Wall Street with the assets underlying the trades valued in the tens of billions of dollars. ILLUSORY PROFITS The bank’s credit correlation desk specialized in using credit default swaps to make proprietary trades that were aimed at hedging some of the bank’s exposure to potentially risky corporate bonds, leveraged loans, currencies, indexes and commercial paper. Many of the trades put on by correlation traders involve synthetic collateralized debt obligations (CDOs), financial instruments that use credit default swaps to get exposure to various bonds and other assets. Some have blamed credit default swaps — a type of derivative that is supposed to provide a level of insurance against an underlying asset going bad — with exacerbating the global financial crisis because they increase the level of risk on balance sheets of the world’s major banks. However, the synthetic CDOs traded by the correlation desk were not like the more popular variant of CDOs which were stuffed with subprime mortgage securities. Janet Tavakoli, a Chicago-based derivatives consultant who has written several books on credit derivatives and structured products, said many bank managements did not fully appreciate the illusory nature of the trading profits being generated from derivatives correlation desks before the financial crisis. She said those profits often disappeared and turned into losses when the underlying assets turned south. “The thing about correlation desks is that it will appear you are making a lot money from trades, but it is all money at risk,” said Tavakoli. “I call this kind of trading an invisible hedge fund.” In an early 2010 regulatory filing, Deutsche attributed some of the rise in the bank’s value-at-risk, or VAR, at the end of 2009 to a “recalibration of parameters in the Group’s credit correlation business.” On Wall Street, VAR is one metric used by a bank to estimate how much money it could conceivably lose in a day if all of its trading bets and hedges went awry. It’s an imperfect measurement, but one followed by most industry analysts. A person familiar with Deutsche said the bank is winding down the credit correlation desk to both reduce its risk profile and better comply with the so-called Volcker Rule’s ban on proprietary trading in the United States. The bank’s internal investigation into Simpson’s allegations was overseen by the big New York law firm Fried Frank. The revelation that the SEC is investigating the valuations used for some of Deutsche’s derivatives portfolio comes at an awkward time. Over the past few months, the bank has taken some high-profile lumps for its role in contributing to the financial mess. A Senate report released in April faulted Deutsche for continuing to churn out collateralized debt obligations and other securities backed by subprime mortgages even as the housing market in the United States was starting to crumble. The report from the Senate’s Permanent Subcommittee on Investigations said Deutsche aggressively marketed CDOs to its client, “despite the negative views of its most senior CDO trader” about the failing health of the housing market. Just last month, federal prosecutors in New York filed a civil suit against Deutsche, claiming its MortgageIT subsidiary repeatedly lied about the quality of the mortgages it was issuing to obtain federal guarantees on those iffy home loans. The government seeks to recoup some $1 billion in losses it incurred from insuring the mortgages. Deutsche contends most of the problem loans were issued before the bank acquired MortgageIT in 2007. Before filing his whistleblower complaint last May, Simpson had built a long track record at Deutsche. Over the dozen years he worked for the bank in New York, he held positions in finance, risk management and then trading. He joined the firm’s correlation trading group in 2008 and was responsible for trading derivatives tied to bonds and currencies. In his whistleblower complaint, Simpson said when he reported his concerns about trading improprieties to Deutsche’s compliance department he “expressed concerns for future retaliations.” Among the acts of retaliation that Simpson alleged were being passed over for a promotion in February 2010 and later “stripped” of all his trading and management responsibilities. Calabro said the bank denies Simpson’s claim of retaliation. (Reported by Matthew Goldstein; Editing by Michael Williams and Claudia Parsons Copyright 2011 Thomson Reuters. Click for Restrictions .

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Man Fired After Disclosing Wife’s Cancer To Employer

June 15, 2011

Cancer is an awful thing for any family to deal with. It’s even more of a problem when it gets you fired. When Carl Sorabella, of Massachusetts, told his employer that he would need to take some medical leave in order to deal with his wife’s cancer, he thought it was a reasonable request. But according to ABC News , when he walked into work on Monday, he found a note on his desk saying that he had been fired. “When I told my boss, she said ‘We were thinking about laying you off.’ I thought, ‘You can’t do that,’” Sorabella told WCVB 5 in Boston. Sorbella’s wife of 23 years, Kathy, had learned she had stage 4 untreatable cancer in April. But according to the report, the request for a modified schedule in order to deal with the problem was too much for his employer, Haynes Management, a real estate company in Wellesley Hills, Mass. According to ABC , Sorbella feels he was wrongfully terminated: “Ultimately she said don’t worry about it and come in on Monday, and when I came in on Monday I got a letter that I would be laid off,” he said. Sorabella said the letter stated he was being laid off due to “workforce modifications.” But one week after he was fired, he says he saw a listing for his job on the company website. “She said, ‘It’s business. I’m running a company here, and I need to make sure the department runs.’ And I argued that I would make sure the company runs,” Sorabella said. While there are laws in place to protect employees from this sort of thing, The Family and Medical Leave Act only applies to companies with 50 or more employees. As a result, many small business employees are left with few legal options. For video, click here for more from ABC.

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10 States Where Food Stamp Usage Is Soaring

May 13, 2011

Of all the disastrous consequences of the economic crisis, perhaps the most devastating is the idea of even more Americans struggling to feed their families. Recent statistics from the USDA indicate that 14.2 percent of the U.S. population was using food stamps in February 2011, or around 44.2 million total, up from 33 million just two years before in 2009. In 2006, the year before the financial crisis, 26.5 million people participated in the program, officially titled the Supplemental Nutrition Assistance Program (SNAP) . The increased rate of food stamp participation has led, in turn, to a significant increase in the amount of money SNAP spends on food benefits. In 2010, the total cost of food stamp redemption in the U.S. rose 29 percent from the previous year, totaling around $64 billion, according to the USDA’s 2010 annual report . And use of food stamps still varies widely by state. New York , for one, saw an 11 percent increase in food stamp participation last year, and the cost of redemptions in the state rose to $5.1 billion from $4.3 billion. Today, around 15 percent of New York’s population collects food benefits. States with smaller populations participate in food stamp programs most often, particularly in the South, where as many as 20 percent of the population is found to use food stamps. Below are the ten states with the highest percentage of population using food stamps.

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Ocean Nutrition Canada limited announces strategic alliance with Wilmar

December 15, 2010

Ocean Nutrition Canada limited announces strategic alliance with Wilmar

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Food Stamp Usage Soars Among Working Families

October 22, 2010

HONOLULU — Lillie Gonzales does whatever it takes to provide for three ravenous sons who live under her roof. She grows her own vegetables at home on Kauai, runs her own small business and like a record 42 million other Americans, she relies on food stamps. Gonzales and her husband consistently qualify for food stamps now that Hawaii and other states are quietly expanding eligibility and offering the benefit to more working, moderate income families. Data from the U.S. Department of Agriculture reviewed by The Associated Press shows that 32 states have adopted rules making it easier to qualify for food stamps since 2007. In all, 38 states have loosened eligibility standards. Hawaii has gone farther than most, allowing a family like Gonzales’ to earn up to $59,328 and still get food stamps. Prior to an Oct. 1 increase, the income eligibility limit for a Hawaii family of five was $38,568 a year. “If I didn’t have food stamps, I would be buying white rice and Spam every day,” said Gonzales, whose Island Angels business makes Hawaiian-style fabric angel ornaments, quilts, aprons and purses. Eligibility for food stamps varies from state to state, with the 11 most generous states allowing families to apply if their gross income is less than double the federal poverty line of $22,050 for a family of four on the U.S. mainland. The threshold is higher in Alaska and Hawaii. With more than 1 in 8 Americans now on food stamps, participation in the program has jumped about 70 percent from 26 million in May 2007, while the nation’s unemployment rate rose from 4.3 percent to 9.2 percent through September of this year. “We’ve seen a huge increase in participation due to the economic downturn,” said Jean Daniel, a spokeswoman for the USDA’s Food and Nutrition Service. “That’s the way this program was designed.” In addition to helping alleviate economic pressures, many states embrace the popularity of food stamps because their cost – $50 billion last year – is paid entirely by the federal government. States are only responsible for paying half of their programs’ administrative costs. Food stamps have been blasted by some Republicans in this midterm election season as just another federal entitlement program, with former House Speaker Newt Gingrich framing the vote as a choice between “the party of food stamps” and Republican policies that create jobs. Participants in the food stamp program, technically called the Supplemental Nutrition Assistance Program, receive a per person average of $133 per month to buy staples including milk, bread and vegetables. Shortly after Hawaii announced it was raising its eligibility limits starting this month, three carloads of 10 seniors drove to the Kauai Independent Food Bank to ask if they qualified. Nine of them did, said Judy Lenthall, executive director for the food bank, which helps people apply for food stamps. “We saw an immediate and overwhelmingly wonderful response,” Lenthall said. “It surprised us how fast it’s spreading.” States that have relaxed food stamp eligibility did so by moving to a system where applicants could qualify based on their income, and their other assets such as real estate, vehicles and savings accounts could be ignored. Basing food stamps on income alone allows the newly unemployed and the elderly to seek government food aid without having to first sell their property or exhaust every dollar they’ve earned, said Sue McGinn, director of the food stamp program in Colorado, which will expand eligibility beginning in March. “They won’t have to wipe out their savings to apply for benefits,” McGinn said. Many of these states also raised income limits, although applicants still have to show they’re essentially living at the poverty line after accounting for allowable deductions, including elder medical expenses and child support. “It helps moderate and low-income people who are struggling,” said Stacy Dean of the Washington-based Center on Budget and Policy Priorities. “They’re doing everything we want: they’re working, paying all their bills, taking care of their kids, and they still don’t have enough money at the end of the month to put food on the table.” Since 2000, the only states that haven’t enacted the lower food stamp eligibility requirements are Alaska, Arkansas, Indiana, Iowa, Kansas, Missouri, Nebraska, South Dakota, Tennessee, Utah, Virginia and Wyoming. In Hawaii, where everything from milk to gasoline is typically the highest in the nation, the changes are welcomed by Gonzales and others. “As long as my kids have good food, that’s all I care about,” Gonzales said. “It makes a tremendous difference.” ___ Online: Food and Nutrition Service: http://www.fns.usda.gov/snap/

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Kevin O’Connor: Don’t Make the Solution Part of Your Problem

September 15, 2010

The problem I’ve always been intrigued with innovation and how it can be forced. As an entrepreneur, my job is to create new products and companies; I can’t just sit around waiting for the light to go off while playing Halo. As an executive, I have also been part of a lot of painful strategic planning processes. In one instance, we hired a consultant who took us through an eight month ordeal costing more than $1 million. In the end, we agreed on a strategy that we came up with on the first day. I’ve noticed this happen time and time again. From my experiences working with companies to solve various problems, I’ve noticed a few “truths” that almost always occur when groups try to solve problems: The answers are already in the room. If you assemble a group of smart people who know your industry, they have already assimilated the mass of information from customers, employees, market research and elsewhere. The answers are in the room and not on some manufactured spreadsheet. Most of the time spent trying to solve a problem is typically wasted discussing options that don’t really matter. There are 98 things you could , but shouldn’t, be doing, but in reality there are only two things you need to do as a business to be successful. People often waste time talking about all the things that don’t really matter. Personality trumps. Unfortunately, there isn’t much correlation between speaking skills and quality of ideas. Most people are afraid to share their ideas for fear of looking stupid. But then there are the less deserving people who through force of personality get their way. In order to actually implement the solution, you need consensus and these meetings rarely build lasting consensus. The solution As executives, our goal is to generate as many ideas as possible, identify the top ideas and make a decision while building consensus. But how can you most effectively do that? Just follow these steps: State the problem clearly. Write at the top of the white board the problem you are trying to solve. For example: “How can we improve productivity?”, “What are the biggest problems facing our customers?”, “Which Sports & Recreation topics are best for comparison?” Brainstorm. Ask people to state their ideas succinctly — usually two to three words. Do not allow any discussion or comments on the idea. You want people to play off other people’s ideas and to feel free to say crazy ideas without fear of ridicule. Keep the flow going but don’t beat a dead horse — stop when the flow of ideas has ended. Lobby. As you are numbering each proposed idea, allow people to lobby or clarify their ideas. Make sure you combine similar ideas. Vote. Take the total number of ideas and divide by three — this is the number of votes each person gets. For example, if you have 30 ideas, each person gets 10 votes (30 ideas/3 = 10 votes). The next step is to read off each idea, count the number of votes each idea receives and write the total number of votes next to each idea. Select Top Ideas. You should (hopefully) see a coalescing of votes for the top two to five ideas. Focus your attention on these top ideas and forget about the rest. Here’s a recent example of a brainstorm we just had at FindTheBest . We are constantly coming up with dozens of new Comparison App ideas, but having only limited resources, we only focus on the top ideas. We brainstormed new App ideas and came up with the following (partial) list: E-Readers (5 votes) Fast Food Nutrition (6) Colleges (5) Yogurt Nutrition (1) Venture Capital Firms (5) Planets (1) Designers (0) Empires (1) Travel by Country (3) Future Jobs and Careers Forecast (7) Pulitzer Prize Winners (5) Cosmetics Brands (1) War Statistics (4) State Facts (1) US Presidents (2) Energy Drinks (3) Dating Websites (3) Vegas Hotels (3) Golf Courses (4) Pokémon (5) After voting, we narrowed down our 60 App ideas to the seven most popular ones (the ideas that received 5 votes and higher) and focused on developing those Apps. This efficient and collaborative process provides a platform for all ideas to be heard and for the top ideas to be carried out. After trying this process out, you’ll realize that you’ve just condensed a four hour meeting into 30 minutes and actually found the best solution to your problem. But aside from finding the best solution to your problem, you’ve built consensus between everyone within the company because each person was involved in creating the solution. I’ve used this system many times to help create business and product ideas and strategies resulting in tremendous success. So go out and try this method and let me know how it works or if you need help. Please post a comment with your results.

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Kevin O’Connor: Don’t Make the Solution Part of Your Problem

September 15, 2010

The problem I’ve always been intrigued with innovation and how it can be forced. As an entrepreneur, my job is to create new products and companies; I can’t just sit around waiting for the light to go off while playing Halo. As an executive, I have also been part of a lot of painful strategic planning processes. In one instance, we hired a consultant who took us through an eight month ordeal costing more than $1 million. In the end, we agreed on a strategy that we came up with on the first day. I’ve noticed this happen time and time again. From my experiences working with companies to solve various problems, I’ve noticed a few “truths” that almost always occur when groups try to solve problems: The answers are already in the room. If you assemble a group of smart people who know your industry, they have already assimilated the mass of information from customers, employees, market research and elsewhere. The answers are in the room and not on some manufactured spreadsheet. Most of the time spent trying to solve a problem is typically wasted discussing options that don’t really matter. There are 98 things you could , but shouldn’t, be doing, but in reality there are only two things you need to do as a business to be successful. People often waste time talking about all the things that don’t really matter. Personality trumps. Unfortunately, there isn’t much correlation between speaking skills and quality of ideas. Most people are afraid to share their ideas for fear of looking stupid. But then there are the less deserving people who through force of personality get their way. In order to actually implement the solution, you need consensus and these meetings rarely build lasting consensus. The solution As executives, our goal is to generate as many ideas as possible, identify the top ideas and make a decision while building consensus. But how can you most effectively do that? Just follow these steps: State the problem clearly. Write at the top of the white board the problem you are trying to solve. For example: “How can we improve productivity?”, “What are the biggest problems facing our customers?”, “Which Sports & Recreation topics are best for comparison?” Brainstorm. Ask people to state their ideas succinctly — usually two to three words. Do not allow any discussion or comments on the idea. You want people to play off other people’s ideas and to feel free to say crazy ideas without fear of ridicule. Keep the flow going but don’t beat a dead horse — stop when the flow of ideas has ended. Lobby. As you are numbering each proposed idea, allow people to lobby or clarify their ideas. Make sure you combine similar ideas. Vote. Take the total number of ideas and divide by three — this is the number of votes each person gets. For example, if you have 30 ideas, each person gets 10 votes (30 ideas/3 = 10 votes). The next step is to read off each idea, count the number of votes each idea receives and write the total number of votes next to each idea. Select Top Ideas. You should (hopefully) see a coalescing of votes for the top two to five ideas. Focus your attention on these top ideas and forget about the rest. Here’s a recent example of a brainstorm we just had at FindTheBest . We are constantly coming up with dozens of new Comparison App ideas, but having only limited resources, we only focus on the top ideas. We brainstormed new App ideas and came up with the following (partial) list: E-Readers (5 votes) Fast Food Nutrition (6) Colleges (5) Yogurt Nutrition (1) Venture Capital Firms (5) Planets (1) Designers (0) Empires (1) Travel by Country (3) Future Jobs and Careers Forecast (7) Pulitzer Prize Winners (5) Cosmetics Brands (1) War Statistics (4) State Facts (1) US Presidents (2) Energy Drinks (3) Dating Websites (3) Vegas Hotels (3) Golf Courses (4) Pokémon (5) After voting, we narrowed down our 60 App ideas to the seven most popular ones (the ideas that received 5 votes and higher) and focused on developing those Apps. This efficient and collaborative process provides a platform for all ideas to be heard and for the top ideas to be carried out. After trying this process out, you’ll realize that you’ve just condensed a four hour meeting into 30 minutes and actually found the best solution to your problem. But aside from finding the best solution to your problem, you’ve built consensus between everyone within the company because each person was involved in creating the solution. I’ve used this system many times to help create business and product ideas and strategies resulting in tremendous success. So go out and try this method and let me know how it works or if you need help. Please post a comment with your results.

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Sen. Blanche Lincoln: The Time Is Now

June 25, 2010

My constituents want Washington to work for us, not the special interests like Wall Street banks. That’s why I stood up for Main Street banks, small businesses and working families in my home state by proposing the toughest reforms for Wall Street of anyone in either party, including the administration. One of my reform proposals would make the $600 trillion over-the-counter derivatives market fully transparent where today it is completely in the dark, with no regulation, no oversight and no public disclosure. Early this morning, the Senate-House Conference Committee on Financial Regulation passed landmark legislation that included the most important provisions of my original proposal. When I first unveiled my plan in mid-April, it was dismissed by many as a political stunt that would never see the light of day. Well, I’ve been underestimated before. What matters to me, and to the retirees, small businesses and local bankers that I represent, is that we expose risky trading by the big Wall Street banks to the light of day. Now my colleagues in the Senate and the House need to know that you stand behind this reform. I have launched a petition and I hope you’ll add your voice to the growing chorus of Americans who support strong financial reform. When my committee, the Senate Committee on Agriculture, Nutrition and Forestry, adopted my bill with bipartisan support, the big banks sent hundreds of lobbyists to Capitol Hill. Most of them promised it wouldn’t be included in the overall Senate Financial Reform bill. When Senate reform became the Dodd-Lincoln Substitute with my derivatives provision intact, there were numerous articles predicting that my provision did not have enough support to defeat amendments to strip it from the bill. However, it’s most significant threat failed with only 39 votes. When the Senate passed comprehensive financial reform with my provision unchanged, the headlines predicted that it would be removed in the conference committee of Senate and House members. This morning, the conference committee ended an all-night session by adopting historic financial reform that offers unprecedented protections for consumers and includes the bulk of my provision. The riskiest trading practices by Wall Street banks that nearly blew up the world economy will have to be moved to an affiliate within two years. While we are changing the way Wall Street does business, the real story is how reform will benefit Main Street by helping families save for college, protect retirees, ensure that small businesses can get loans and most importantly create new jobs. We are not over the finish line. You may still hear opponents using the same tired claims and worn out, catch-all defenses of “unintended consequences” or “driving business overseas” in an attempt to stop our reform efforts. But with momentum on our side, the strong reform that America’s small businesses, community banks, and families need is within our grasp. It’s time we proved the naysayers wrong once again and pass historic financial reform. I hope you add your name to the petition today so that my colleagues in Washington know you want to change the financial system so families have the protections they deserve.

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Genital Herpes Virus Infects One in Six Americans, Study by U.S. CDC Finds

March 9, 2010

By Tom Randall March 9 (Bloomberg) — Genital herpes, a condition that produces painful sores and increases transmission of AIDS, has infected one in six Americans, according to a U.S. survey that shows prevention efforts haven’t stopped outbreaks. The study, conducted from 2005 through 2008, found the infection rate didn’t change significantly from a previous report from 1999 to 2004. It was released today by the U.S. Centers for Disease Control and Prevention in Atlanta. There’s no cure for herpes, which has two forms. Herpes simplex virus type 1 typically causes blisters known as cold sores near the mouth. Type 2 forms blisters near the genitals. Most infected people don’t know they have the virus and spread it to partners through sexual contact even when they’re not experiencing symptoms, according to the CDC . “This study serves as a stark reminder that herpes remains a common and serious health threat,” said Kevin Fenton , director of the CDC’s National Center for STD Prevention. “We are particularly concerned about persistent high rates of herpes among African-Americans, which is likely contributing to disproportionate rates of HIV in the black community.” The data were taken from the National Health and Nutrition Examination Survey, a federal report that draws from questionnaires and medical records. GlaxoSmithKline Plc’s Valtrex pill, approved to treat symptoms and reduce the frequency of outbreaks, had sales of $1.29 billion last year. The London-based company also makes an over-the-counter cream called Abreva, which shortens healing time and soothes infections. The amino acid lysine, available as a dietary supplement, has been found in studies to reduce symptoms and outbreaks. To contact the reporter on this story: Tom Randall in New York at trandall6@bloomberg.net .

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Child Obesity Rate Doubled in U.S. Before Showing Signs of Easing Off

February 16, 2010

By Molly Peterson Feb. 16 (Bloomberg) — The rate of childhood obesity and chronic health problems doubled in the U.S. from 1988 to 2006 with fewer cases toward the end of the study consistent with a recent leveling off, researchers found. Children ages 8 to 14 showed an obesity rate of 15.8 percent at the end of 2006, compared with 8.3 percent in a similar period that ended in 1994, according to a study published online today in the Journal of the American Medical Association . The overall rate of chronic childhood health conditions including obesity, asthma and behavioral or learning problems increased to 26.6 percent from 12.8 percent during the same years. The report comes a week after first lady Michelle Obama began a nationwide campaign against childhood obesity, urging American youths to get more exercise and develop healthier eating habits. Another study published by the U.S. Centers for Disease Control and Prevention in January reported the rise in U.S. obesity levels for children, while high, may have leveled off in the decade ended in 2008 at about 17 percent. “We can speculate that because of the increased attention to obesity in recent years, children may actually be making better food choices, have better nutrition, exercise more and spend less time in front of the television and the computer with video games,” said Jeanne Van Cleave, the report’s lead author. Not Permanent For most of the 5,001 children tracked in today’s research, the chronic health conditions weren’t permanent, Van Cleave, a pediatrician at MassGeneral Hospital for Children in Boston and Harvard Medical School, said in an interview. “Half of all children in the U.S. will have a chronic condition during childhood,” she said Feb. 12 in a telephone interview. “But a lot of these conditions resolve over time.” Today’s study analyzed data collected during six-year periods from three consecutive groups of children who participated in a U.S. Bureau of Labor Statistics survey that began in 1979. The study began tracking the first group in 1988, the second in 1994 and the third in 2000. For all of the groups combined, less than 38 percent of the children who had chronic conditions at the beginning of the observation period still had them after six years. “Many conditions in children tend to wax and wane,” Neal Halfon, director of the University of California at Los Angeles’ Center for Healthier Children, Families and Communities, said in an interview. “Even those that get better can, down the line, end up having problems because of the nature of the issues.” Plateau Another study from CDC found U.S. obesity rates may have hit a plateau toward the end of the decade ended in 2008. That study found about 17 percent of children ages 2 to 19 were obese, with the heaviest boys ages 6 to 19 continuing to gain weight over the decade while others leveled off. “The leveling off really speaks to increased attention to childhood obesity recently,” Van Cleave said. President Barack Obama signed an executive order Feb. 9 directing federal departments to come up with a plan within 90 days on how to make federal nutritional and health data more accessible to the public. The same day, Michelle Obama announced a new federal Web site, www.LetsMove.gov , that emphasizes physical activity and more healthful meals in schools. The site also offers tips to help parents choose more nutritional foods for their children. Highlight “I think she’s trying to highlight that it’s not just all about eating or exercise,” Halfon, who co-authored an editorial that accompanied the study in the journal, said of the first lady’s initiative. “It’s about having places where people can exercise. It’s not just about individual behaviors, but about the systems we have in place — the health system, the education system, the nutrition system.” Companies such as Orexigen Therapeutics Inc. of La Jolla, California, Vivus Inc. of Mountain View, California, and San Diego-based Arena Pharmaceuticals Inc. are developing weight- loss drugs. Orexigen has said it plans to seek U.S. approval of its Contrave medicine in the first half of 2010. In December, Arena Pharmaceuticals submitted an application for its obesity drug lorcaserin and Vivus submitted an application for its treatment Qnexa. Japanese-based Shionogi & Co. is also developing a weight loss drug. Today’s study was funded by the Robert Wood Johnson Foundation and the CDC. To contact the reporter on this story: Molly Peterson in Washington at mpeterson9@bloomberg.net

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JPMorgan May Lose $3 Billion in Revenue on Derivatives Rules, Analyst Says

December 2, 2009

By Elizabeth Hester Dec. 2 (Bloomberg) — Revenue at JPMorgan Chase & Co ., the second-largest U.S. bank, may drop by as much as $3 billion should most derivatives trades be moved to exchanges, a Sanford C. Bernstein & Co. analyst said. That could mean a reduction in earnings per share of up to 20 cents in a “worst case” situation, analyst John McDonald said today in a research note after meeting Steven Black , vice chairman of the investment bank. Derivatives made up about 8 percent of revenue from 2006 to 2008, he said, without providing a comparative figure if trading is shifted. JPMorgan, which had $77.3 billion in net revenue in the first nine months of this year, is among firms that face new regulations as Congress considers legislation that may restrict trading in the contracts. The proposals generally would require dealers and large investors to trade the most common derivatives on exchanges or regulated trading platforms. JPMorgan “sees the largest risk from legislation mandating that all derivatives be traded on an exchange as opposed to through the OTC market, limiting the company’s ability to create customized products,” McDonald wrote, referring to the over- the-counter market. He declined to comment beyond the note. He said earnings estimates for the New York-based bank represented a “worst case” in which the “most severe regulatory changes take place.” McDonald didn’t include gains in volume or capital relief that may come from having the majority of contracts standardized and cleared on exchanges. Fed Pressure Dealers have been under pressure from the Federal Reserve to loosen their control of how the markets are run. The gross amount of outstanding contracts reached $605 trillion at the end of June, according to the Bank for International Settlements in Basel, Switzerland. The contracts carried a gross market value of $25.4 trillion, BIS data show. Derivatives traders profit from the so-called bid-ask spread, the gap between what they charge customers and what they pay to hedge the trades. They can charge more on derivatives that aren’t actively traded, are customized or considered riskier. The more actively traded the contracts become and the more transparent prices get, the narrower the spread. Banks also could lose trading revenue from the extra fees they effectively charge clients by extending them leverage on derivatives transactions, said Brian Yelvington , head of fixed- income strategy at Knight Libertas LLC , a Greenwich, Connecticut-based broker-dealer. Geithner’s Testimony “You’re able to drive more bid-ask income through because of the fact that you have a certain financing relationship,” Yelvington said in an interview today. “If the product moves to an exchange, your financing flexibility is hampered.” Treasury Secretary Timothy Geithner reiterated his call that clearinghouses should initially determine which derivatives contracts are cleared, during testimony today to the Senate Committee on Agriculture, Nutrition and Forestry. He also said he was willing to consider some exemptions for end-users of derivatives as long as oversight loopholes aren’t created. JPMorgan’s investment bank is also awaiting compensation guidelines including the mix of cash and stock they will be able to award, and the required vesting period, McDonald said. He said the firm was trying to balance retaining employees and paying them for a profitable year while taking into account regulatory and public opinions. The firm isn’t likely to repeat its record fixed-income trading results in 2010 as credit spreads tighten and more competitors enter the market, wrote McDonald, predicting a 12.5 percent decline in revenue next year. The decline will probably be offset by higher investment banking fees and lower provisions for loan losses. JPMorgan has made “significant” investments in its commodities, equities and emerging markets businesses, especially Asia and Latin America, McDonald wrote, citing Black. The firm is planning a three-year overhaul of its technology and operations to consolidate trading platforms and employees in the division. To contact the reporter on this story: Elizabeth Hester in New York at ehester@bloomberg.net .

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`Bad’ Cholesterol Drops by One-Third in U.S. Adults Aided by Drugs, Diet

November 18, 2009

By Nicole Ostrow Nov. 17 (Bloomberg) — Levels of “bad” cholesterol in the U.S. fell by one-third from 1999 to 2006 as more people took cholesterol-lowering drugs, U.S. researchers reported. The number of adults who had high levels of low-density lipoprotein, or LDL, cholesterol dropped to 21 percent in 2005 to 2006 from 32 percent in 1999 to 2000, according to a study published today in the Journal of the American Medical Association. About 13 percent of those in the study were taking cholesterol-lowering medicines such as Pfizer Inc. ’s Lipitor, the top-selling drug in 2008, and Merck & Co.’s Zocor, compared with 8 percent in the earlier period. The drop in the rates of high levels of LDL cholesterol may be a result of more people taking cholesterol-lowering medicine , eating a better diet and getting more exercise, said the study’s lead author, Elena Kuklina, in a telephone interview today. Even with that improvement, too many people have elevated levels, said Kuklina and other researchers at the Atlanta-based U.S. Centers for Disease Control and Prevention. “Even though it’s decreasing over time, we still have a high prevalence,” said Kuklina, an epidemiologist in the CDC’s division for heart disease and stroke prevention. “If we want to address this problem, we have to work in all different directions and at different levels like screening, diagnosis and treatment.” Up to Date Today’s study is the most up-to-date look at the number of Americans with high LDL cholesterol, Kuklina said. Cholesterol is a fat-like substance that occurs naturally in the body. Too much of it can stick to the walls of arteries, clogging them and increasing a person’s chance of developing heart disease, according to the American Heart Association. Cholesterol includes LDL and “good” or high-density lipoprotein, HDL, which in high levels may protect against heart attacks. High levels of LDL cholesterol can cause plaque to form in the arteries of the heart and brain, which may result in a heart attack or a stroke, according to the heart association. Medicines that regulate cholesterol levels generated $33.8 billion in 2008 global sales, the second largest class of drugs behind cancer treatments, which had sales of $48.2 billion, according to research firm IMS Health Inc . Researchers in the study looked at how many people in the U.S. ages 20 or older had been screened for cholesterol, how many used cholesterol-lowering medicines and checked their LDL levels over four time periods using data from the National Health and Nutrition Examination Survey . The survey assesses the health status of adults and children in the U.S. and combines interviews with physical examinations. Greatest Prevalence The study found that the greatest prevalence of high LDL levels occurred in those who were considered high risk, meaning they had at least a 20 percent chance of developing heart disease within the next 10 years. In that category, high LDL levels declined to 59 percent in 2005-2006 from 69 percent in 1999-2000, the study found. Researchers also saw that among those with high LDL cholesterol levels, 36 percent had not been screened for cholesterol before participating in the survey, 25 percent had been undiagnosed and 40 percent were untreated or inadequately treated for cholesterol in 2005-2006. Among all risk groups, the proportion of people screened for high cholesterol remained less than 70 percent during the study periods, below the 80 percent target set by Healthy People 2010 , the U.S.’s national health objectives. An editorial accompanying the study called the 70 percent screening rate “disappointing.” ‘Lot of Room’ “We still have a lot of room to go identifying people who should be treated and treating them appropriately,” J. Michael Gaziano , a cardiologist at the VA Boston and at Brigham and Women’s Hospital who wrote the editorial, said today in a telephone interview. Gaziano blamed the screening rate on the complexity of guidelines that doctors use to determine when patients should be checked and treated. “I find these results alarming,” said W. Douglas Weaver , immediate past president of the American College of Cardiology, in a statement. “Although we are making great strides in cholesterol management in patients with known heart disease, this study shows that many patients who could benefit from lipid-lowering medications and changes in their lifestyle and diet are still going unrecognized, and untreated.” To contact the reporter on this story: Nicole Ostrow in New York at nostrow1@bloomberg.net .

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