virginia

Maryland, Wells Fargo Settle On Adjustable Rate Mortgages

January 5, 2012

BALTIMORE — Maryland Attorney General Doug Gansler has announced an agreement with Wells Fargo relating to allegedly deceptive marketing of adjustable rate mortgages written by companies it acquired in 2008. Gansler said Thursday that the settlement involves mortgages written by Wachovia and Golden West Financial. Gansler says the settlement will create loan modifications for some customers. He also says Wells Fargo has agreed to pay about $940,000 for restitution to “Pick-a-Payment” borrowers who lost their homes in foreclosure. The attorney general’s Consumer Protection Division says Wachovia and Golden West did not fully explain to borrowers who chose a loan with payments that were less than the interest actually due that their minimum payments would not cover the full interest and that their principal debt would actually increase over time.

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Obama’s Latest Moves Face Legal Questions

January 5, 2012

By Jeremy Pelofsky WASHINGTON–President Barack Obama’s appointment of Richard Cordray to head the Consumer Financial Protection Bureau could become entangled in a legal battle over its legitimacy, though history and the Constitution appear to favor him, experts said. The White House said on Wednesday Obama would use his constitutional authority to install Cordray while Congress was not in session, drawing anger and criticism from rival Republicans who insisted Congress was not in formal recess. While the Senate resumes lawmaking only on January 23, it has been holding brief non-legislative “proforma” sessions every three days to try to keep Obama from making recess appointments without its consent. The last, on Tuesday, was for a minute; the next is on Friday. Infuriated Republicans denounced Obama’s action on Wednesday as unprecedented, but history shows similar appointments were made during the presidencies of both Democrat Harry Truman and Republican Theodore Roosevelt. White House lawyers determined the Senate was in recess as long as it was not conducting legislative business and Obama could therefore move ahead with Cordray’s appointment under the Constitution, presidential spokesman Jay Carney said. He said this was also the view during the George W. Bush administration. Also on Wednesday, Obama announced plans to “recess-appoint” three members to the National Labor Relations Board, potentially raising issues for that agency as well. While Republican Senate Minority Leader Mitch McConnell assailed the “uncertain legal territory” of the presidential action, it seemed unlikely the issue would be resolved anytime soon in the courts. Legal challenges of agency decisions often take months, if not years. But the U.S. Chamber of Commerce, which fiercely opposed creation of the consumer protection bureau, said it would not rule out a legal challenge to Cordray’s appointment and it could weigh heavily on future actions by the watchdog. “One of the lawyers we consulted on this said ‘if you are bringing a suit on a rule against this agency and you didn’t raise this issue you could be charged with legal malpractice,’” said David Hirschmann, head of the group’s Center for Capital Markets Competitiveness. Cordray told Reuters he was ready to get down to work and would not be distracted by possible legal challenges. “I can’t be distracted by that,” he told Reuters after flying to Cleveland on Air Force One with Obama. NOMINATION BATTLE The battle over nominations dates back to the Bush administration when Democrats kept the Senate in similar “proforma” sessions to try to block recess appointments by the Republican president, not leaving for more than three days. Under the Constitution, the House of Representatives and Senate must agree on any recess lasting longer than three days. Republicans who control the House have blocked any longer breaks in hopes that would prevent appointments by Obama. The nonpartisan Congressional Research Service said in a report last month the Constitution did not specify how long the Senate must be away for recess appointments to be made but Republicans pointed to a 1993 Justice Department legal brief that said they had to be away longer than three days. One law professor said that brief wrongly referred to the constitutional requirement that the two chambers have the approval from one another to break for more than three days and that the courts will likely be hesitant to intervene now. “There is no minimum time needed to trigger the president’s recess appointment authority,” said Catholic University Columbus School of Law professor Victor Williams, adding that he doubted the courts would look favorably on a legal challenge. “The courts are very reluctant to second guess the political branches when a duty has been given to political branches, explicitly, textually by the Constitution,” he said. The congressional report found two examples of appointments made during recesses of less than three days, though they were done after Congress completed a session and before they began the next one. President Theodore Roosevelt made some 160 appointments in 1903 when Congress was gone for less than a day, and the Truman administration made one appointment in 1949 when the Senate was gone for two days, the report said. “As far as can be determined, no succeeding president has made recess appointments under similar circumstances,” the CRS report said. “The shortest recess during which appointments have been made during the past 20 years was 10 days.” Republicans also pointed to an Obama administration official referring to the three-day recess precedent in a legal argument before the Supreme Court, but the justices did not address that issue and were rather focused on the legitimacy of decisions by a government agency that did not have a quorum of members. One banking industry consultant noted that with Cordray’s appointment, it may speed legal challenges to the financial regulatory reform law known as Dodd-Frank. “The issue is not so much Cordray, or whoever is the director, but the CFPB itself and some of the powers it has been given under Dodd-Frank,” said Bert Ely. (Additional reporting by David Henry in New York, Matt Spetalnick aboard Air Force One, Alexandra Alper and Richard Cowan in Washington. Editing by Howard Goller and Todd Eastham) Copyright 2012 Thomson Reuters. Click for Restrictions .

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Sporadic Health Insurance As Bad As No Health Insurance: Study

January 5, 2012

When it comes to preventative care, having on-and-off health insurance might be as bad as not having it all. A study of diabetics by the Kaiser Permanente Center for Health Research found that patients with breaks in their health insurance coverage were less likely to receive annual preventative tests , according to NPR. The patients avoided getting the tests just as much as someone with no health insurance at all. One reason could be that Americans without health insurance have to pay a small co-pay of five dollars — a sum that could add up for patients that require a bevy of tests on a small income , one of the lead researchers told NPR. Health care costs have weighed on Americans for years now, with rising costs becoming an accepted part of everyday life for many with chronic conditions. By 2008, Americans’ spending on healthcare was more than triple what they spent in 1990 , according to a separate Kaiser report. Overall, health care spending accounted for more than 15 percent of the U.S.’s gross domestic product by that time — one of the highest rates of industrialized countries. The struggle to afford health care was especially evident in 2010 when the total number of Americans with health insurance fell for the first time in over two decades, according to CNNMoney. The number of Americans without health insurance rose to 49.9 million that year , according to data from the Census Bureau. And that number may only be poised to rise. Government analysts expect the health care industry to comprise a fifth of the total U.S. economy by 2020 , or $13,710 for “every man, woman and child.” Fewer California employers offered health insurance to workers last year, according to the California Employer Health Benefits survey. Employees also saw the costs of their insurance plans rise and one-third of employers are considering shifting more of the costs to workers next year, the survey found. Lacking health insurance means that patients skimp on more than just preventative care. Southern states are less likely to have good dental hygiene, according to a September Gallup poll. More than 70 percent of the residents of the top states for dental care have health insurance compared to 56 percent for the bottom 10 states, the poll found. Still, even Americans who have health insurance may end being charged high rates for preventive care. The health care law that President Obama signed into law in 2010 requires most insurers to pay for preventive care, according to USA Today , but some procedures, which are initially billed as preventative — such as colonoscopies — can turn into diagnostic procedures , saddling the patient with the bill.

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Charities See Huge Increase In Foreclosed Home Donations

January 5, 2012

Forget collecting coins in a red kettle — charities are increasingly netting donated homes as a result of the foreclosure crisis. And the trend is likely to to continue. USA Today reports that Bank of America donated 150 homes in 2011 and plans to donate more than 1,200 next year. Wells Fargo donated almost four times as many homes this year compared to last. And Habitat for Humanity almost doubled the number of donated homes that it’s rehabbed in the year ending last June. “It’s a win, win, win” Rebecca Mairone, head of Bank of America’s donation program, told USA Today. Those three “wins” include one for the neighborhood where the house is located, one for the bank, and one for the investor. By donating homes — typically of low value — owners rid themselves of a mortgage and the expenses that go with upkeep, as well as earn tax breaks for their donation. Depending on who the home is donated to, it might be torn down, refurbished or rebuilt completely. In some places home donations are becoming too popular. CrainsDetroit.com reports that in Detroit, nearly 98 percent of homes offered are declined, as many are too rundown. And as home donation inquiries increase, some charities are still figuring out what they can and cannot accept. “We had to kind of look at our policy on accepting house donations,” William Brazier, executive director of the Society of St. Vincent de Paul Detroit, told CrainsDetroit.com . But saying “no” to that many home donations still puts most nonprofit organizations and banks ahead of the game. Nonprofit News reports that Real Estate Donations, a division of the West Dundee, Ill.-based nonprofit Restoration America, is still taking advantage of the upward shift in donations. By November, the group had closed on its 101st donated home of 2011. Charles Konkus, president of Real Estate Donations told the news source that was “way ahead” of the 73 last year.

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Fiat Increases Chrysler Stake

January 5, 2012

DETROIT — Fiat has added 5 percent to its majority ownership of Chrysler. The Italian automaker got the added stake by making a car in the U.S. that gets 40 miles per gallon of gas. With the added shares, Fiat now owns 58.5 percent of Chrysler. The U.S. government, which bailed out Chrysler and funded its 2009 restructuring under bankruptcy protection, gave Fiat a 20 percent stake in Chrysler in July of 2009 in exchange for Fiat’s management expertise and use of its technology. Fiat gradually raised its ownership by meeting performance goals and buying the government’s stake in Chrysler. Chrysler said early Thursday that a pre-production version of the new Dodge Dart compact got 40 mpg in testing by the Environmental Protection Agency in late December. Full testing for the mileage sticker that will go on the Dart’s window has not been finished. The window sticker testing is done under different standards and could be lower than 40 mpg. The added 5 percent stake came from shares held by a United Auto Workers trust fund that pays for retiree health care. The trust still owns 41.5 percent of the company. Chrysler is planning an initial public stock offering, perhaps this year, to help the trust convert its shares to cash. The Dart, to be built at a factory in Belvidere, Ill., goes on sale in the first half of this year as a 2013 model. It will be unveiled next week at the North American International Auto Show in Detroit. It’s based on the same underpinnings as an Alfa Romeo Giulietta. One of the Dart’s three engines will be a Fiat-designed 1.4-liter turbocharged powerplant that also goes into a high-performance version of the Fiat 500. Sergio Marchionne, CEO of both Fiat and Chrysler, said in a statement that the added 5 percent stake is another step in the integration of the two companies.

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Car Service: ‘Surge Pricing’ Shouldn’t Have Been A Surprise

January 4, 2012

WASHINGTON — The CEO and co-founder the smartphone app-enabled Uber car service has a message for all those shocked by their expensive rides home on New Year’s Eve: Get used to it. With its app, Uber lets you arrange pick-ups in fancy black sedans. It’s supposed to be more stylish, comfortable and convenient than conventional taxis. The service arrived in D.C. in December and is also available in New York, Chicago and San Francisco. On New Year’s Eve, Uber instituted a ” surge pricing ” system that was designed to keep cars available for the customers who really, really wanted them, by raising prices as demand grew. But prices went higher than expected for some customers. In D.C., Mark Krieger used the Twitter hashtag #happynewtears to describe his surprise $200 Uber ride on Saturday night. Uber’s CEO and co-founder, Travis Kalanick, is unrepentant. He contends that the surprise cost shouldn’t have been a surprise. Before New Year’s Eve, he blogged about surge pricing, he emailed customers about the pricing as far back as October. And on New Year’s Eve, customers had to click through a screen informing them that their price would be as much as six times the normal price when ordering a ride. Kalanick has made clear he’s open to suggestions about how to handle pricing, but also put up a blog post on Tuesday reiterating how Uber’s “surge pricing” system works . The post is pretty much an aggravated sounding lesson in economics 101: Without a surge pricing mechanism, there is no way to clear the market. Fixed or capped pricing, and you have the taxi problem on NYE — no taxis available with people waiting hours to get a ride or left to stagger home through the streets on a long night out. By *raising* the price you *increase* the number of cars on the road and maximize the number of safe convenient rides. Nobody is required to take an Uber, but having a reliable option is what we’re shooting for. As should come as no surprise, economist-types love Uber . But the company “fails marketing,” according to Venture Beat : Uber’s blog post does a reasonable job of explaining the economic theory behind its surge pricing, even providing an illustration of supply and demand curves. From the standpoint of economic theory, it makes perfect sense. But when people feel ripped off, they don’t want to hear about economic theory or the team of Ph.Ds you have developing optimal supply and demand mechanisms. Most people have a sense of what is “fair”. Study after study has shown that people will make suboptimal economic decisions in the name of fairness. Product and pricing decisions have to take that into account. The National Review got more academic, linking the Uber kerfuffle to economist and former Libertarian North Carolina gubernatorial candidate Michael Munger’s work on price gouging — Munger believes that anti-gouging laws harm consumers by limiting supply : This minor dust-up serves as a reminder of the embeddedness of economic transactions. People feel as though Uber was taking advantage of them, despite the fact that the service leapt in to fill the void created by an overregulated taxi marketplace. One is reminded of Michael Munger’s critique of anti-gouging laws and, more broadly, his work on evolutionary exchange. Relatedly, Munger links to a really thought-provoking essay by the democratic socialist philosopher Michael Walzer on the ethics of competition — it is one of the best critiques of market I’ve ever read, partly because it is so subtle and intelligent. Other critics of the market could learn a thing or two from Walzer. But they probably won’t. Washingtonian Dave Stroup tweeted a slightly more psychological take : “Yup, I like the service a lot; I’d just hate for NYE to be someone’s 1st experience and have it be confusing, etc.” Kalanick summed up his own take on the highs and lows of Uber’s New Year’s Eve emotions and prices in his blog post: The whole experience was at once exhilarating and a bit defeating. We knew to keep cars available, we had to let the price go where it needed to. But the higher the price, the more vulnerable we were to a customer support nightmare. The communications we sent in preparation were out there, (blogs, tweets, emails, etc.), the pricing notification was there, but people are simply not used to paying a lot of money for a reliable ride during a run on cars. Kalanick told The Huffington Post in an email that he thinks “folks will get used to ‘surge events’ on Uber and it won’t be newsworthy the next time around.” Flickr photo by Daquella manera,, used under a Creative Commons license.

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Judith Samuelson: Reducing Consumption in 2012 — An Inconvenient but Necessary Resolution

January 4, 2012

NEW YORK, NY — I was seriously into re-gifting for Christmas this year. Just ask my kids. My daughters, Anna and Sarah, and nieces Rachel and Leah, each received a notebook of favorite family recipes, decorated with old photos and watercolors from vacations past. Rachel loved the never-been-used colander that was taking up precious closet space. As for stuffing the stockings — which I threatened to cut off altogether now that the youngest is graduating from college — it became an exercise in finding a good home for various office supplies and surplus personal goods that were gathering dust. Anna, the diplomat, said the yellow highlighter was just what her boyfriend needed. A few days after Christmas, Sarah and I made up for my Scrooge-like sins by renting a car and driving out of the city for our annual blow-out at the mall, where we had to fight for a parking space. The question on my mind as I consider the year ahead, is whether it is un-American to commit to spending less and buying only what I really need. At this phase in my life, it’s not exactly a hardship to buy fewer things. Yes, some new clothes are needed from time to time, but the book shelves are already filled with books I haven’t yet read, and but for replacing some worn out towels, I am not exactly in a “need to have” phase of life. Our economy however, seems built on a set of habits that would suggest that if we all commit to the same resolution of buying less, the layoffs will only get worse. Welcome to the quandary of sustainable consumption. And yes, indeed we do have a problem — albeit, as Al Gore would say — an inconvenient one. Americans out-consume their neighbors around the world at levels that translate into unsustainable — let’s call it outrageous — over-consumption of energy and other natural resources. The statistic usually offered up is that with only 6% of the world population, Americans consume 25% of the natural resources. It’s time to get a grip. My parents, products of the Depression, valued buying many fewer, but higher quality goods. That would be a step in the right direction that could be good for the economy as well. There are many sources for such high-quality products. One of them is sportswear manufacturer and retailer Patagonia, whose legendary founder, Yvon Chouinard , is so committed to the idea of sustainable consumption that the company is partnering with Ebay to encourage reuse of Patagonia products. Hard to believe, but true. Patagonia sales people seem to have taken the pledge as well. “Dave” from customer service, who chatted with me on-line as I hunted for a pair of yoga pants, wasn’t aware of the partnership I was trying to research, but he agreed with it: Welcome to Backcountry. You are now chatting with Dave.. judith: I heard that Patagonia had started a program that prompts you to consider if your purchase is a “need” or a “want” and to consider buying a used version of your targeted purchase on Ebay. is this true? j Dave: hello there, I hadn’t heard that, but makes sense to me judith: Well, if YOU haven’t heard about it, I assume its not true! I was thinking about writing an article on it. Dave: yah I’d contact Patagonia to be sure, but sounds like an interesting basis for an article. what’s your angle? judith: Time for new year’s resolutions — and I have taken your Patagonia Common Threads pledge about reduce, reuse… etc. but I would like to put in something about the extra commitment by the company to make you think harder at Point of Purchase. Dave: hmm wish I knew more specifics, I know myself I try not to buy any of our products unless I need them. Mindless consumerism is a plague. Wow — I will remember this moment. A customer service rep chatting with a potential customer about “mindless consumerism?” I predict we will see many more retailers dig deeply into the balancing act of selling retail with the planet in mind. It means more investment in design of product for more efficient use and reuse of resources, on-site recycling , and, for the courageous ones, it will also mean pricing that embeds the true cost of the product, and testing some messages that challenge their customers to think about what they are doing at point of purchase. Happy New Year, we can all do our part. Take the pledge here .

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Ellen Bravo: Connecticut Workers Welcome Paid Sick Days

January 4, 2012

This time last year, Desiree Rosado, a school bus driver in Groton, Connecticut, was dreading flu season. “Working without paid sick days, you’re always worried about what will happen if you get sick,” she said. “When my kids caught the swine flu, I missed a week of pay to stay home and take care of them, and I’m still paying off the credit card bills I racked up.” But as of January 1, Desiree and hundreds of thousands of other Connecticut workers will begin to earn paid sick time under a new statewide paid sick days law — the first in the nation. She’ll be able to use that time if her kids are sick, if she herself falls ill, or to see a doctor for preventive care. In the process, Desiree says she’s gained “real peace of mind.” For Desiree and workers across Connecticut, paid sick days are one immediate way to see real economic relief, even in the aftermath of a severe recession. As someone who drives children safely back and forth to school every day, Desiree Rosado knows another benefit of paid sick days. The new Connecticut law, which applies to workers in the service sector, means those who serve our food and care for the young and the frail will not have to put the public at risk when they’re ill. “No one should have to choose between their family’s health and their job, and no one should get fired just for getting sick,” said Jon Green, Executive Director of Connecticut Working Families, a member group of Family Values @ Work Consortium and lead organization in the broad coalition which helped win this new law. “Beginning this year, hundreds of thousands of service workers will be able to earn paid sick days that so many of us simply take for granted. This is an important but modest step towards a smarter, healthier Connecticut.” Research confirms that the lack of paid sick days exacerbates the impact of a health crisis. According to a report by the Institute for Women’s Policy research, during the H1N1 (swine flu) outbreak of 2009, 8 million Americans came to work while infected with the virus, infecting another 7 million people in the process. Environmental health specialists have documented how loss of pay can influence workers to show up on the job even when they have vomiting or diarrhea. Green also emphasized the benefits of the law as a common sense victory for working people. “Now more than ever,” Green said, “we should seize every opportunity to strengthen conditions for people working so hard to support their families.” Connecticut’s win was the first of three in a row last year for paid sick leave proposals. Philadelphia City Council passed a measure a month after Connecticut. Although the mayor vetoed that law, the Council later voted 15-1 for a version that applies to businesses who receive contracts or subsidies from the City. Philly’s coalition plans to re-introduce the broader bill soon. And Seattle City Council overwhelmingly approved a bill adding that city to a growing list of places which recognize the value of ensuring workers can afford to stay home when they’re sick. 2012 will see a wave of similar campaigns across the country — because workers are desperate for relief and because small business owners and policymakers are increasingly seeing paid sick days as a modest step with significant impact that keeps people employed, at a time when holding on to a decent job is especially critical. According to a poll by Quinnipiac University, 72% of Connecticut resident support the paid sick days law. Hart Research Associates found a similar majority believe that tough economic times is exactly the right time to introduce such protections. They agreed with the statement that “workers are vulnerable now and cannot afford to lose income or risk being fired simply because they have the flu or a child needs medical care.”

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Lululemon Added To Goldman Sach’s List Of Top Stock Picks

January 4, 2012

NEW YORK — Lululemon Athletica Inc.’s stock rose more than 5 percent on Wednesday after Goldman Sachs added the Canadian fitness-wear company to its list of top stock picks, citing its sales growth and appealing stock price. Lululemon has been one of the hottest chains in retailing thanks in part to the popularity of its high-priced yoga pants and tank tops. Analyst Michelle Tan said in a client note that Lululemon’s annual revenue rose more than 30 percent and still has room to go higher as it “fulfills a need in women’s activewear apparel that parallels the need that brands like Nike and Under Armour cater to on the men’s side.” Tan said that investors had previously complained about Lululemon’s lofty stock price – which closed above $57 in early November – but that the shares now provide a compelling entry point after a recent pullback. Shares of Lululemon gained $2.54, or 5.4 percent, to $49.57, in midday trading. Over the last year, the stock has traded between $32.65 and $64.49.

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Esther Loewy: The 2012 Investor "UnList"

January 4, 2012

The start of the New Year brings resolutions and to-do lists ranging from personal fitness to career changes. In the investment and start-up arena, much focus has been placed on top trends, predictions and which companies will IPO in 2012. To veer in a different direction, I feel it equally important to cite an investor “UnList” for the coming year. The UnList is a suggested guide for investors on what not to focus on in 2012 when searching for the next groundbreaking technology to invest in. 1. Don’t play games. As a serial entrepreneur once mentioned to me, “a quick no is preferable to a slow maybe.” Investors who either say they’ll respond and don’t or just never make up their mind while requesting additional material from entrepreneurs are doing a disservice to the start-up community. To quote Mike Cassidy of Google, “Speed is the Ultimate Start-Up Weapon.” Mike was mostly addressing the entrepreneurs when he addressed our audience in Istanbul this past November but his comments on acting and responding expeditiously are just as relevant to investors. Decide within two weeks if you’re moving forward and communicate with the entrepreneur if it’s a go or no go. 2. Don’t be hasty. This does not contradict No. 1. Rather, when reviewing the initial executive summary, if something catches your eye but you’re not sure — why not invest in a six-minute phone call? In our BootCamp events, we work with entrepreneurs to design concise, focused presentations in six minutes, which is a sufficient amount of time to gauge initial interest. That could make the difference in the final determination. Bessemer’s “anti portfolio” has often been cited in the VC industry — where six minutes could have made the fund into a believer of Google. The conversation was passed, the opportunity lost, and the rest is history. It’s worthwhile for investors all across the spectrum — angels, strategic and venture capitalists — to reconsider the value of six minutes at the start of this year. 3. Don’t just say no. You’ll never know when that start-up will surprise you and you’ll want to join the next round of capital. Provide some rational to your thinking — it goes a long way in breeding good faith. Spend a few minutes to give a brief explanation on why you think the product, business model or team doesn’t suit your investment strategy. If you can refer them to an industry player, potential adviser or customer — why not? 4. Don’t be afraid. Take a chance. The dichotomy of how venture capitalists are often risk averse has been lamented often by entrepreneurs. This overly cautious state sometimes leads more nimble, non-VC players to jump in where VC’s fear to tread. It’s often ironic that venture capitalists, whose very name infers risk, are often risk averse and prefer to see what their colleagues are focusing on. Makes it hard to identify the next game-changing technology when one is in “follow” rather than “lead” mode. Innovation is the engine that spurs economic growth worldwide. Make 2012 the year to rethink and consider positioning one partner as the “risk” partner; the one to advocate and take that calculated risk when the metrics are aligned. 5. Don’t rule out intermediaries. Especially for non-American start-ups, many founders are primarily tech oriented. In countries such as Israel where great technology often comes from creative technology transfer — whether from the academia or the military — extraordinary and talented entrepreneurs know how to build their product but often need help navigating the capital raising and business development labyrinth. The need is even more apparent in emerging markets where there is a limited pool of both experienced entrepreneurs and available venture capital. There is a reason why Y Combinator, TechStars, SeedCamp, Start-up Lab and others have gained traction for the pre-seed round. Incubators and accelerators have provided a tremendous boost to the start-up ecosystem, but the arena also requires another medium to step in for those accelerator graduates — to help them scale, go global, gain the critical traction. They require help to clarify their business proposition, evaluate their value, identify key partners and of understand the language of investors from multiple geographies worldwide. That’s where companies, such as BootCamp Ventures, tries to step in to help promising tech companies in Israel, Turkey and other emerging markets scale and reach global markets. Esther Loewy is a founding partner at BootCamp Ventures, www.bootcampventures, a global innovation platform for aligning game changing technology start-ups with international investors, partners and customers. BootCamp Ventures provides professional support to early-stage, high-potential, high growth and technology oriented companies in every step of the process from business strategy to financing to help companies accelerate andand compete in the global marketplace. Their 18th global innovation summit will take place in Israel March 27-28, 2012.

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Edward Murray: Nobody Hates the Rich… But Everyone Hates the Bad

January 4, 2012

It seems that those nestled snugly in the crack of our nation’s ultra-wealthy are confused about why they seem to be unpopular in the media. Many are now publicly expressing their support of the financial-legislative complex, but still wondering why thousands of people all across the country are identifying with the Occupy movement. Maybe it has something to do with the disturbing mentality of the elite that asks with arrogantly wide-eyed obliviousness, “Is it too much to ask that everyone just sit down and be nice while we destroy the middle class?” In response to the protests, Chase CEO Jamie Dimon recently stated : “Acting like everyone who’s been successful is bad and because you’re rich you’re bad, I don’t understand it… Sometimes there’s a bad apple, yet we denigrate the whole.” Let’s clarify once and for all that the Occupy protests are not about targeting “successful” or “rich” people. Here, Dimon is twisting the issue by trying to equate “rich” with “I-teabag-senators wealthy.” When I was a kid, I thought my aunt and uncle were rich because they could afford to make their toilet water blue; however, I wouldn’t say that those successful people had anything to do with tanking our national economy. The Occupy protests are about singling out the top 1% that has seen their income triple over the last generation (while other wage classes have remained largely stagnant) and the Houses of Ill Finance that they run. Dimon implies that the economic collapse bugaboo must have been caused by a bad apple. I mean, a trillion-dollar crash snafu couldn’t have been caused by a good apple, right? A good apple would never engage in robo-signing (forgery) on foreclosure notices , or mislead (defraud) investors in a mortgage securities scandal , make illegal payments (bribe) civic officials , or leak false information (lie) when trying to overtake another bank . A good apple wouldn’t probably wonder aloud how in the hell it became the head of a multi-national financial conglomerate before going home to his kiwi. In response to the Occupy protests, John A. Allison IV, ex-CEO of BB&T bank said : “Instead of an attack on the 1%, let’s call it an attack on the very productive. This attack is destructive.” Allison’s words are the destructive force here, as they paint a disturbingly myopic portrait of working-class Americans and ring of class warfare. Allison, whose bank took $3 billion in TARP bailout funds , basically said “You’re an unproductive shlub who punches a timecard. Is that what they’re called? Timecards? Haha! Just kidding! I know what timecards are, I keep a fresh roll of them next to my crapper! And I got a picture of your momma at the bottom of the bowl!” Allison’s aggressively elitist words aren’t those of a good apple, but rather, the words of what is said when you try to hold your tongue and say the word ‘apple.’ Robert Rosenkranz, CEO of Delphi Financial Group defended the 1% by saying : “It’s simply a fact that pretty much all the private-sector jobs in America are created by the decisions of the 1% to hire and invest. Since their confidence in the future more than any other factor will drive those decisions, it makes little sense to undermine their confidence by vilifying them.” Actually, it makes a lot of sense to vilify those who created an unhealthy, unsustainable bubble of predatory lending that has, apparently, given the 1% the excuse to stop investing and hiring, which is clearly exhibited by the doubling of the unemployment rate between 2008 and 2009. (It would also really make sense to jail many of those people, as well, but we’ll explore that at another time.) The 13.3 million people who are currently unemployed and those who have been hit with an estimated 8 million foreclosure filings between 2009-2011 aren’t worried about offending the delicate sensibilities of the 1% or shaking their confidence. Rosenkranz’s defense not only makes him complicit in these matters, but it reeks of oblivious, ivory tower cocktail party chatter. It’s bad when a well-documented philanthropist like Rosenkranz stands up for his cronies rather than the marginalized majority. Leon Cooperman, chairman of Omega Advisors Inc. and former CEO of Goldman Sachs Group Inc. (GS)’s Money-Incubation Unit, recently wrote an open letter to President Obama in which he very thoughtfully and articulately lays out his legitimate concerns for the country. Unfortunately, his heartfelt evaluations boil down to simply chastising the president for framing the debate along partisan lines. The Occupy protests aren’t a partisan issue and the president doesn’t have the ability any more than you or I to make it one. This shows a severe disconnect between the situation as it stands and Cooperman’s perspective. Cooperman also said, without even the slightest hint of irony that he can’t walk through the dining room of St. Andrews Country Club in Boca Raton, Florida, without being thanked for speaking up. I know how he feels; I can’t walk through the dining room of St. Andrews Country Club without being tackled and cuffed with the ol’ Exotic Brownie Shackles. “You’ll get more out of me,” Cooperman said, “if you treat me with respect.” I’m pretty sure that the billionaire is usually treated with a large amount of respect, which means that we’re already maxed out on what we’re going to get out of him. Again, this unfortunate obliviousness from the uber-wealthy shows that even when they speak out on the matter of the protests directed at the economic inequality gap in this country, they present themselves as comically out of touch with exactly what they are trying to address. It’s never a good sign for the health of a culture when the power brokers expose themselves to be woefully disconnected from the society they inhabit. And when Home Depot co-founder Bernard Marcus was asked about the protestors, his response was , “Who gives a crap about some imbecile? Are you kidding me?” Someone should tell Marcus that he’ll get more out of the imbeciles if he treats them with respect. Someone should also remind him those same imbeciles are the ones who made him rich because they thought they could save a few bucks building a backyard deck that was never quite level. Forget the bad apple theory here, Marcus sounds like a bushel of dick apples. I recently saw the film It’s a Wonderful Life for the 2011th time, and I couldn’t help but notice the parallels between the villainous Henry Potter, the richest man in Bedford falls, and the financial titans of today. Mr. Potter devoted his life to squeezing as much blood capital as he could from the stones of the middle class while our current financial heads devoted their lives to artificially inflating a housing bubble with toxic mortgages and then robo-signed millions of foreclosure notices with a complete lack of social conscience. Jamie Dimon, Bank of America CEO Brian T. Moynihan, Goldman Sachs CEO Lloyd Blankfein, as well as a bevy of high-ranking executives from AIG, Citi, Morgan Stanley, etc… are the equivalent of Mr. Potter, the foil to the hard-working George Bailey, and therefore represent the absolute embodiment of evil in American culture. George Bailey’s dad said that Potter was, “Oh, he’s a sick man… sick in his mind , sick in his soul , if he has one.” This statement echoes what many believe concerning those who reap the benefits of fleecing the American people amongst the highest wave of economic inequality since the Great Depression without an iota of humility to split amongst them. Jamie Dimon was right about the “bad apple” but something else he doesn’t understand is that nobody is upset simply with his personal success. It’s just that we, as a culture, are taught to harbor a disdain for people who aggressively exploit the many simply for the sake of material gain. We are taught that the Mr. Potters of the world are bad people. But the Potters of the world aren’t bad because they’re rich. They’re not bad because they’re successful. They’re bad because… they’re just simply bad.

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2.1 Million Fords Sold Last Year

January 4, 2012

DETROIT — Ford Motor Co.’s U.S. sales rose 11 percent in 2011 thanks to strong demand for its trucks and SUVs. Ford sold 2.1 million vehicles last year, a sign of the industry’s continuing recovery. It was the first time the Ford brand has passed the 2 million mark since before the recession in 2007. Strong sellers included the new Ford Explorer SUV, which more than doubled sales from 2010. The Escape small SUV and Ranger small pickup also posted big increases. Ford’s car sales rose 4 percent. Sales of the Fiesta subcompact nearly tripled over 2010, but Ford didn’t get much traction with its new Focus small car. Ford’s Lincoln brand sales were flat. Ford says December sales climbed 10 percent over the same month last year.

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Could Ohio Earthquakes Incite A Fracking Policy Shift?

January 3, 2012

COLUMBUS, Ohio — In Ohio, geographically and politically positioned to become a leading importer of wastewater from gas drilling, environmentalists and lawmakers opposed to the technique known as fracking are seizing on a series of small earthquakes as a signal to proceed with caution. Earthquakes caused by the injection of wastewater that’s a byproduct of high-pressure hydraulic fracture drilling, aren’t new. Yet earthquakes have a special ability to grab public attention. That’s especially true after Saturday’s quake near Youngstown, at magnitude 4.0 strong enough to be felt across hundreds of square miles. Gov. John Kasich, a drilling proponent, has shut down the wastewater well on which the quake has been blamed, along with others in the area, as the seismic activity is reviewed. “Drilling’s very important for our economy and to help us progress as a state, but every single person in the Mahoning Valley felt this earthquake,” said state Sen. Joe Schiavoni, a Youngstown Democrat who on Tuesday called for a public hearing. “I wouldn’t deem it as an emergency, but when you live in a place that you’re not used to earthquakes and you have 11 earthquakes, you’re concerned,” he said. “We need to give them some sort of confidence or security that this is going to be OK.” Fracking involves blasting millions of gallons of water, laced with chemicals and sand, deep into the ground to unlock vast reserves of natural gas, a boon both for energy companies and a public hungry for cheap sources of fuel. That process, though, leaves behind toxic wastewater that must be expensively treated or else pumped deep into the earth. The wastewater is extremely briny and can contain toxic chemicals from the drilling process – and sometimes radioactivity from deep underground. The practice of dumping underground has been controversial in light of scant research done on potential environmental dangers, highlighted by reports of contamination of aquifers in some communities in Pennsylvania and Wyoming. Some states are reconsidering it. A coalition of environmental groups is preparing a protest for next week’s return of the Ohio Legislature. Activists opposed to increased oil and gas drilling activity across Ohio, Pennsylvania, New York and West Virginia – where the Utica and Marcellus Shale formations are believed to hold vast quantities of gas – see trouble with the Ohio injection well. It took wastewater from fracking, as well as other forms of drilling. “What other business or industry isn’t held accountable for its full cradle-to-grave processes?” said Deborah Nardone, director of the Sierra Club’s Natural Gas Campaign. “They need to be responsible for the waste stream that they’ve created.” Ohio’s closure of the well will have little to no impact on drilling, said Travis Windle, a spokesman for the Marcellus Shale Coalition, an industry group based in Pennsylvania. Four of the five wells that Ohio shut down were not operational, Windle said. Pennsylvania’s drillers have turned in recent months to deep-well injection of millions of gallons of wastewater because of a voluntary state moratorium last year on dumping of waste at treatment plants where the partially treated liquids are discharged into rivers and streams that drinking water is taken from. Most drillers in Pennsylvania accepted a voluntary state moratorium last year on dumping of waste at treatment plants, which had discharged the partially treated mix into rivers and streams that supply drinking water. Many drillers now recycle the drilling fluid, and some turned to deep-well injection of millions of gallons of the wastewater. Pennsylvania has six deep injection wells that currently accept fracking fluid, said Amanda Witman, a spokeswoman for the Department of Environmental Protection. But some of its waste is trucked into Ohio, where the geology allows for more injection wells. Ohio’s willingness to accept the fracking leftovers amid a drilling boom in states to the east, south and west worries some residents and environmental advocates who say the science isn’t proven – and point to the earthquakes as evidence. The Ohio Petroleum Council, an industry group, says any public anxiety is misplaced. “Injection wells have worked well to protect public safety for decades, and a situation like the one in question near Youngstown is very rare,” executive director Terry Fleming said in a statement. Kasich told reporters over the weekend that he doesn’t believe the energy industry should be blamed for issues arising from disposal of their byproducts. That would be like blaming the auto industry for improper disposal of old tires, the first-term Republican said. Scientists have known for decades that drilling or injecting water into areas where a fault exists can cause earthquakes, said Paul Hsieh, a research hydrologist with the U.S. Geological Survey in Menlo Park, Calif. “That’s widely documented and accepted within the science community,” he said. “It’s seen all over the world.” Injection wells have also been suspected in quakes in Arkansas, Colorado and Oklahoma. Oklahoma’s sharpest earthquake on record, of magnitude 5.8 on Nov. 5, was centered on a county that has 181 such wells, according to Matt Skinner, a spokesman for the Oklahoma Corporation Commission, which oversees oil and gas production in the state and intrastate transportation pipelines. However, a study by the Oklahoma Geological Survey released earlier in 2011 found that most of the state’s seismic activity didn’t appear to be tied to the wells, although more investigation was needed. “It’s a real mystery,” seismologist Austin Holland said in November. “At this point, there’s no reason to think that the earthquakes would be caused by anything other than natural” shifts in the Earth’s crust. New York state’s Department of Environmental Conservation is wrapping up an environmental impact review and proposed new regulations for gas drilling. Permitting for new gas wells has been on hold since the review began almost four years ago. While the proposed permit guidelines do mention injection wells as a possible means of wastewater disposal, any shutdown of such wells in Ohio would have no effect on New York’s regulatory process, department spokesman Emily DeSantis said Tuesday. James Smith, spokesman for the Independent Oil & Gas Association of New York, said he knows of no drillers in the state who are shipping waste to Ohio and whether they would in the future is a matter of speculation. ___ Associated Press writers Kevin Begos in Pittsburgh, Mary Esch in Albany, N.Y., and Justin Juozapavicius in Tulsa, Okla., contributed to this report.

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Evidence Links Fracking To Ohio Earthquakes

January 3, 2012

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

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‘We’re Just Ruining Ourselves.. Destroying Ourselves’

December 31, 2011

A decade ago, customers flocked to the store in the converted fire station on the east side of Toledo, Ohio, in pursuit of Old Glory. Howard Pinkley established Flags Sales & Repair in 1960, and runs it with his daughter, Wendy Beallas. In days after Sept. 11, 2001, customers lined up outside the door. Americans wanted to show their pride, their determination, their Americanism. It’s all a fading memory now. These days, folks are focused on paying bills. A new flag is a luxury, and the unvarnished patriotism of 10 years ago has been replaced by disgust with government. A recent Wednesday saw just two walk-in customers. Father and daughter have cut their payroll, but talk openly about whether they should give up. They’re no less dispirited than their neighbors. “I go home and I refuse to listen to the news because it’s frustrating,” Beallas says. “To me, it’s not coming together and getting things done.” When Ronald Reagan ran for re-election, his advertisements boasted that it was morning in America. Nearly three decades later, as another presidential campaign begins, it feels like twilight – or, if it is morning, it is the kind of gray winter daybreak when the sun is only a rumor and only an optimist clings to hope that the clouds will break. Listen to Americans in three closely contested states and you’ll hear the same plaintive echoes, not just about politics or the upcoming election, but about the unsettling predicament that is America in 2011. Republicans or Democrats, liberal or conservative, young or old, they lack confidence – in the country’s potential to be great again, in their elected leaders’ ability to do the right thing, in the economy and in themselves. It’s not that they feel incapable of doing what needs to be done, as much as they are uncertain about what that right thing is and whether anything they can do will have any real impact. In Mount Airy, N.C., where a quaint Main Street is merely a reminder of better days: “We need to get back to the `60s and the `50s, and we need to get ourselves back to where we used to be – standing on our own two feet,” says long-haul trucker Harry J. Moore, 57, punching a beefy fist into his open left hand to punctuate each syllable. “We’re losing our pride. Our pride’s gone away.” In North Las Vegas,, Nev., where the bursting of the housing bubble has forced hard choices: “People have lost a lot of spirit,” says Elmer Chowning, 70, who had hoped to slow down in his golden years, but is instead still working in real estate while raising his 8-year-old granddaughter. In Lima, Ohio, where people have seen America’s industrial might falter: “I’m just waiting for China or somebody to take us over. That’s the way it seems,” says Becky Jamison, 36, who has watched her 18-year-old son look unsuccessfully for work for months. “Because we’re just falling apart.” ___ If you look, you can find optimism in Ohio. The Armstrong Air & Space Museum is in Wapakoneta, hometown of Neil Armstrong, the first man to walk on the moon. It stands as a monument to an earlier, more hopeful time, and there are visitors who are convinced that those times can come again. To Stephen Andrasik, a foam salesman from Indianapolis who has stopped in to the museum on his way back home from a business trip, the U.S. remains resilient, facing problems that can be solved by new leaders in Washington who will allow Americans to live up to their potential. “I think we’re still the same people we were back then,” says Andrasik. He studies a display case filled with inventions that were spinoffs of the space program, everything from fireproof clothing to battery-powered hand tools. “I’m assuming it’s going to get better as long as the American people have the ability to do what they want, to invent things, to start new businesses, we’ll be as great as we’ve always been.” But standing before a model of the Apollo 11 command module at the edge of the museum’s parking lot, Jake Retter, a chimney cleaner from Blissfield, Mich., notes the irony of a country that once raced a communist rival to put a man on the moon and now relies on China to buy its debt. Rather than pursuing national goals, politicians chase their own divisive agendas, he says. A nation built on hard work and thrift has lost sight of what really matters. “This country’s been falling apart for the last 50 years. It’s taken time,” Retter says. “It’s not that capitalism is failing us. It’s that we’re failing capitalism.” For many years, this region provided the muscle of American capitalism. Its pride in its talent for making things is evident in Toledo place names such as Jeep Parkway and the Veteran’s Glass City Bridge. The long, slow decline of factory work has been a source of constant sorrow in the Rust Belt. Recent stirrings such as announcements by Chrysler and General Motors that they will add 1,400 new jobs at their plants in Toledo, and Ford’s plans to ramp up engine production in Lima have offered some reason to hope. “I can definitely feel like the forward momentum is there” – jobs at the union hall are picking up, says Kurt Kaufman, 31. A union electrician, he worked steadily until 2006. He has since spent as much as nine months between jobs. Still, he says, “I don’t think it’s ever going to be as good as it was around here.” But a bad economy, some say, is not at the core of what ails northwestern Ohio, and America. There have been hard times before, and there will be again. The real problem, they say, is in Americans and their leaders. “What’s different from this and the Great Depression is that the moral fiber has changed,” says Russ Terry, a retired postal carrier who lives outside Lima and has stopped in for a morning break at The Meeting Place on Market, a coffee and sandwich shop downtown. “The reason we can’t handle this is we don’t have the moral backbone, the stick-to-it-tiveness, the collective people working together.” Terry, who describes his politics as very conservative, blames the federal government for printing too much money in an attempt to stimulate the economy. But at its heart, the country’s failings reflect the will of individuals, he says. “The government is just a reflection of the people, is it not?” Just down the road from Toledo’s GM plant, Martin Ridener says his worries are based on more than 20 years of running a 16-unit apartment building he once thought would pay for his retirement. Instead, a building that used to generate a steady income is now barely covering its expenses, as many tenants lose jobs, fall behind on rent and move out. Ridener, who is 75 and votes Republican, can’t imagine voting for President Barack Obama given the state of the economy, but he can’t see how Republicans taking over the White House will make things any better. “I don’t consider either side wrong in what they’re doing. What I resent is that every Democrat thinks completely one way and every Republican thinks another way. They’re afraid to talk over it and do what’s best for the country.” Across town, most of the red-checked tables are full at the Hungarian hot dog purveyor Tony Packo’s. But between bites, Pat Shupe, a 72-year-old homemaker, says she worries about the world her 3-year-old granddaughter will inherit with seemingly limited opportunities. “I absolutely see no light at the end of the tunnel until something is done in this country to equalize opportunity for people to get a job,” Shupe says. While the 2008 election gave her hope that the country could work through its problems, the gridlock in Washington has robbed her of that brief optimism. “I think we’re just ruining ourselves,” Shupe says, “destroying ourselves.” Not everyone shares that bleak outlook. Terri Leary’s employer eliminated her job as a senior housing manager in 2009, six months after her husband lost work in construction management. Leary, 44, was convinced that her lack of a college degree had made her expendable, so she enrolled at Owens Community College’s campus in Perrysburg. Days before her graduation ceremony in early December, she sat in the commons area of College Hall and described the tough times of the past few years as an opportunity, an outlook entirely decoupled from politics. The job losses and belt-tightening, she is convinced, were “a good thing. It teaches the kids very valuable life lessons, you know, make good with what you have. … We learned we can do more with less and be just as happy.” There are lessons to be learned, agrees 29-year-old Erin Tupper. She and her husband, Marc, have much to be thankful for. They have been married just a week, they have a home of their own (albeit modest and worth less than it used to be), and Marc prizes his job as a police officer. But they look around, and see evidence of an America that has lost its way. Erin, recalling her father’s pride in his work as a truck driver hauling new Jeeps off the Toledo assembly line, says she and her friends talk now of employers who pile on hours while treating workers as expendable. When she drives near her childhood home, she is dismayed by the big homes on what was once farmland, a sign of misplaced values centered on instant gratification and overspending. People seem to be more concerned with themselves and their own narrow interests than in working together for the common good. “We’re learning a lesson,” she says. And if we don’t, “we’ll be right back to where we were.” ___ “Your Community of Choice,” reads the motto on signs spread around the city of North Las Vegas, and for a while it was. Once among the fastest-growing places in the country, the city saw thousands of stucco and tile-roof homes sprout up to accommodate retirees and a middle-class workforce coming for jobs in the booming casino and construction industries. The city added workers, increased revenue and embarked on ambitious plans for redevelopment projects to keep pace with the growth. Today the community is deeply in debt, cutting programs, laying off employees, fending off a possible state takeover and weighing still more difficult decisions that will directly affect the 220,000 people who live here. Talk to people on the street, in the library, at the recreation center, and seemingly everyone knows someone who is out of work. If they own a home, its value has decreased substantially and their neighborhoods are filled with forsaken properties. You can’t watch TV without seeing local commercials for help with loan modifications or from lawyers pledging to keep the banks from your assets. The Neighborhood Recreation Center sits in the old part of town, a lifeline for senior citizens in need and young people whose parents can’t afford fancy gyms. Over the summer, struggling to plug an overall $30 million budget deficit for the fiscal year and unable to reach a deal with police unions over cuts, the North Las Vegas City Council voted to close the center. People who consider it a second home revolted, descending on council meetings with signs and petitions in hand. The facility was saved only after the local police union agreed to defer for six months a cost-of-living increase and distribution of accumulated holiday pay. That was enough to keep the center open through next summer. Recreation supervisor Neil Gallant sits at a desk littered with spreadsheets as he works to find grant money or other ways to subsidize the center’s costs. He talks of his seniors feeling “abandoned” when the City Council voted to close the center and of a sense of disconnection between elected leaders and those they serve. The politicians don’t know the people, Gallant says. “They don’t see them.” That sentiment was echoed by so many in North Las Vegas, but especially Gallant’s struggling older clientele. They are women like Nita Hargis and Maxine Delisle, who live on meager Social Security checks and depend on the center’s $1.50 hot lunch (rising to $3 come January) and the companionship they find in ceramics class. One Thursday, instead of molding candy dishes, they vented about the state of their community and the country, and the overarching theme was one of neglect – a feeling that every level of government is ignoring their needs and has failed them, despite so many promises to do otherwise. For Hargis, a 65-year-old who has lived almost her entire life in North Las Vegas and worked a variety of jobs – painter, gift shop clerk, remodeler – recent efforts to attempt to modify her home loan left her exasperated and in worse shape than she started. “They ran me around for nine months. They ruined my credit. I even got one of these government guys that was supposed to help me, and all he did was say, `Well, call `em back, call `em back.’ He never did anything to help me,” she says. For Delisle, it’s the glaring imbalance between people like her and those in government that leaves her feeling alienated. She notes that there hasn’t been a cost-of-living increase in Social Security for three years, yet it took months of difficult negotiations to get the local police union to agree to forgo its adjustment for just six months. Nineteen-year-old Oscar Corral works the front desk at the recreation center. He’s a philosophical young man with an optimistic smile and outlook. Neither of his parents graduated from high school, and yet his mom is an accounting manager at a local cab company while his father works construction. His dad was laid off not long ago but soon found another job and is “hanging on a thread.” “There’s this thing about humans. When they’re pushed, I guess they go into survival mode and they really work hard,” says Corral, who studies audio production at The Art Institute of Las Vegas. He likens the many problems facing Americans right now to climbing a mountain. “From far away,” he says, “it looks impossible. But when you start getting close up, you see there’s cracks here that I can climb up and you just attack it little by little. … Sometimes we just get caught up in the big problem.” It’s true that in North Las Vegas, as is the case nationally, the problems are so big it’s hard not to get caught up in them. Short-term fixes and eventual union concessions kept the city afloat this fiscal year, but already officials are predicting a $15.5 million deficit for the next budget cycle. Says Elmer Chowning, the real estate agent: “We’re a fast society. We want things to happen. And this is a thing that is lingering, lingering, lingering.” It’s no wonder, he adds, that people have taken to streets and parks in the Occupy Wall Street protests. “There is a tremendous feeling of camaraderie,” he says, but also “hurt and madness.” A couple of weeks ago, North Las Vegas and its residents did their best to put all of that aside for a time. Hundreds gathered on an unusually blustery evening to celebrate the grand opening of a nine-story City Hall – a project launched when the city was flush – and watch as the town Christmas tree was lit. It was a night meant to represent a fresh start, the promise of tomorrow. Nita Hargis was there with some of her friends from the recreation center, wondering aloud why the city felt the need to hand out commemorative tiles and paperweights and what was the cost to taxpayers. The Chownings brought their granddaughter, and stood in the back as a children’s choir sang Christmas carols and ballerinas danced on the shiny new granite floor. Soon they, and everyone, were joining in the carols, applauding the entertainers, sipping hot chocolate. Soon, their worries seemed to fade. At least for one night, anyway. ___ By comparison, Mount Airy is a bit of fantasy in the foothills of the Blue Ridge mountains. The hometown of Andy Griffith, it is Mayberry – America as it used to be, or as we would like to believe it used to be, when the nation’s industrial and military might was unquestioned and seemed unbounded; when a man, even one without a high school diploma, could earn enough to own a house, buy a new car every couple of years and send his kids to college for a better life than even he’d enjoyed. Stroll down Main Street, and you expect to meet characters like Aunt Bea, Goober and Floyd the barber. They’re not here. Instead, you’ll find businessmen and women struggling to survive the recession by selling nostalgia, and real people eager to buy. “They’re looking for what we wish that times could be again,” says Debbie Miles, who moved here with her husband from southern Indiana five years ago and opened Mayberry on Main, where the walls and shelves are lined with items like Aunt Bea’s Kerosene Cucumbers and Otis’s Moonshine Jelly. “That’s the main thing that we hear. `We wish that it could be like that again – like it was on the show.’” Business is down about 10 percent from a couple of years ago. But Miles can’t afford that kind of pessimism. “You know, if you’re an optimistic person, you think there’s nowhere to go but up,” she says with a laugh. “It probably does try everyone, but I think you still have to be optimistic, you know? That’s what Americans are supposed to do – think for the future.” Darrel Miles – who, like his wife, is a registered Democrat but did not vote for Obama – finds it a bit harder to be hopeful. “I think they need to turn the whole upside down in Washington and shake it real good,” says Miles, who worked 32 years for a company that made soda and ice dispensers. “I think we might have the wrong government, the wrong people trying to fix certain things. There’s too many hands in the fire, as you would say. I mean they can’t even come to agreement even within their own parties to fix certain things, you know?” Across the street, at Snappy Lunch, business is down 20 percent or 30 percent over a couple of years ago, says Mary Dowell, whose husband, Charles, has owned the restaurant since 1960. “We still have tourists who come in, but the bus groups have dropped a little bit,” Dowell says over the sizzle of meat for the diner’s “famous pork chop sandwich.” “Last year, I did have to give everybody a day a week off, because we were so slow. And we’ll probably do that this year.” On this sunny afternoon, Jennifer Brown stands outside Snappy Lunch and peers through the window. Her parents, Steve and Diane, both have good jobs in manufacturing. But the 27-year-old Cleveland-area woman, who has an associate’s degree in office management, can’t find permanent employment. “I did telemarketing. I worked at a park. I even worked at a county fair for a week,” she says. “I’m doing side jobs, some retail. But nothing that I wound up being able to keep.” Her mother, whose company was recently bought out by a European firm, can’t help feeling that the U.S. is in decline. “Because the average person can’t graduate from high school and find a job,” she says. “It’s easier for somebody to come from another country and get started than it is for us who grew up here.” “Mmmm,” her daughter nods in agreement. Jennifer Brown motions to the street scene around her. “This is where it needs to go back to,” she says. “Like the American dream. America, not the socialist stuff that’s going on. And where you could just, you can get a job.” Around the corner from the bustle of Main Street, in front of the Andy Griffith Playhouse and Museum, Sheriff Andy Taylor and son Opie stride in bronze, hand in hand, rods over their shoulders, toward an imaginary fishing hole. A plaque at their feet reads, “a simpler time.” Inside the museum, the gauges on two vintage “ethyl” gas pumps are frozen at 17.9 cents a gallon. Oil worker Jeff Zwicker of Vacaville, Calif., poses for a photo with museum founder (and Griffith childhood friend) Emmett Forrest. Zwicker, 55, a 20-year Air Force veteran who served on cargo planes in Operation Desert Storm, is worried about the deficit and American indebtedness to foreign creditors such as China. But if Washington can get those things under control – and he’s confident it can – “I think the future’s great for our country.” “We’re a great nation,” he says. “We have a lot of smart people here, and if we put all the smart people on this and get it going. But you’ve gotta get serious about it, you know? You’ve gotta really do it. You’ve gotta WANT to do it.” Forrest isn’t so sure. The 84-year-old former electric company vice president says Obama has “taken us down the path to absolute ruin” and, if he’s re-elected, “there’ll be no recovery from it.” “Ten or 20 years ago, I think we were the shining star of the world, and our star has dimmed quite a bit,” he says. “I guess I’m just cornpone patriotic. I love this country and hate to see it go down.” But to Pablo Hernandez, these are good times. Hernandez, 45, came here from Mexico in 1987. He traveled the country, picking apples, oranges, tomatoes – “everything” – before landing a job at a chicken-processing plant in nearby Dobson. For the past five years, he and his wife, Salustria, 33, have operated La Sierrita Tienda Mexicana in a strip mall on a bypass outside downtown. They sell everything from black beans and dried chilies to CDs from groups like Los Rancheros and Fortunato y sus Cometas. Sure, Hernandez is concerned about the recent wave of anti-immigrant sentiment in places like Alabama and South Carolina. The couple’s two daughters – Lesley, 13, and Nadia, 6 – were born here, but the parents have their green cards. But he is not a pessimist. The American Dream “is still alive for me,” he says, as Nadia reads a picture book beneath a ceiling dangling with colorful pinatas. “Because I’m still here, you know.” ___ Pauline Arrillaga reported from North Las Vegas, Nev., Allen G. Breed reported from Mount Airy, N.C., and Adam Geller reported from Toledo and Lima, Ohio. They can be reached at features(at)ap.org.

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Office Cleaners, Building Owners Get To Yes

December 31, 2011

New York office cleaners and building owners reached a tentative four-year labor agreement late Friday, averting a potential New Year’s Day strike. The agreement, which covers more than 22,000 New York City office cleaners represented by the Service Employees International Union Local 32BJ, will give the cleaners a nearly 6 percent wage increase over the life of the contract. Each worker will also receive cash bonuses totally $1,100. The contract, which union members must ratify, maintains employer-paid family health care coverage. “The new contract is not just an important victory for office cleaners and their families, but for our economy and our city,” said Hector Figueroa, secretary-treasurer of SEIU Local 32BJ, in a statement. “In these tough times the workers who keep New York City’s corporate offices and landmark buildings clean and well maintained have stood up for the good middle class jobs our economy and our city needs.” Building owners had sought to create a two-tier wage system under which new hires would never earn as much as current union members. They also wanted to eliminate a system of automatic employee contributions to the union’s political fund. Neither proposal is part of the union’s final agreement with building owners, said Kwame Patterson, a spokesman with SEIU Local 32BJ. Unionized building workers clean and maintain about 1,500 buildings in New York, including landmarks such as Rockefeller Center, the MetLife Building, the Empire State Building, the Chrysler Building, Grand Central Station, the Port Authority and the Time Warner Center, along with educational institutions such as New York University and The New School. New York building cleaners had threatened to establish picket lines in major cities around the country and had collected pledges from unionized cleaners elsewhere and other organized labor not to cross those picket lines. Such tactics would have expanded the effects of a potential strike beyond New York City, left thousands of buildings without needed staff and involved at least 100,000 workers. “We are pleased to have reached a tentative agreement with the union that protects workers’ wages and benefits, and provides crucial cost-savings to building owners, who have been battered in this deep recession,” said Howard Rothschild, president of the Realty Advisory Board on Labor Relations, the group negotiating on behalf of building owners with the union. In the last three months, Local 32BJ has reached new, multi-year contracts for more than 50,000 workers in Connecticut, New Jersey and Virginia. In 2012, SEIU is set to renegotiate contracts for another 155,000 cleaners across the United States. With more than 120,000 members, including 70,000 in New York state, SEIU Local 32BJ is the largest property-service workers union in the country and the largest private-sector union in the state.

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Nuclear Power Play Reveals Washington’s ‘Ugly Underbelly’

December 29, 2011

WASHINGTON — A feud at the Nuclear Regulatory Commission, where five presidentially appointed commissioners oversee the safety of the nation’s nuclear power reactors, has broken out into full public view, with Chairman Gregory Jaczko’s fellow commissioners assailing his character and management style, both in a letter made public earlier this month and in the resulting testimony before Congress . Republicans have begun calling for Jaczko’s ouster. “The situation at the NRC sounds dire,” wrote Rep. Ed Whitfield (R-Ky.) in a letter to President Barack Obama , “leaving me very concerned that the Chairman is unable to lead the Commission in the fulfillment of its responsibilities.” On K Street, energy lobbyists have rallied to support the four other commissioners. So far, the White House is standing by Jaczko , one of the least industry-friendly leaders to serve at the Nuclear Regulatory Commission in a generation. For Washington’s tight nuclear policy circle, where scientifically trained political operatives move back and forth between the industry, the NRC, the Department of Energy and key congressional committees, it’s d&eacutej&agrave vu. Interviews with several senior officials who worked on nuclear energy policy in the 1990s reveal that at least two of those operatives — both with strong ties to the nuclear industry — were closely involved in the ouster of an earlier reformist regulator and are now involved in the current drama. What’s unfolding at the NRC is a textbook example of a little-discussed corporate tactic that is employed against public officials in extreme situations. Observers of the way Washington works tend to describe the corruption of the political system and the people within it in terms of action and reward: Do what industry wants, and benefit both professionally and personally. But when carrots aren’t enough, corporations have sticks to swing, too. Susan McCue, who served as chief of staff for Jaczko’s former employer and chief Democratic supporter, Senate Majority Leader Harry Reid (Nev.), wasn’t surprised to see the industry strategy at work. “They have a lot of power, and they wield it,” said McCue. “They can’t tell Chairman Jaczko what to do, and I think that frustrates them.” THE FIRST COUP The Clinton administration’s skepticism of nuclear power — driven in large part by then-Vice President Al Gore — reached its fullest and earliest expression in 1994 with the installment of Terry Lash at the top of the Department of Energy’s nuclear energy program. Lash was a former staff scientist with the Natural Resources Defense Council, a prominent environmental group, and his appointment rankled nuclear industry insiders and their Republican supporters on the Hill. It wasn’t long, say energy policy staffers involved at the time, before Lash’s critics began seeking ways to undermine his position inside the department. They got their chance after the White House struck a broad agreement with Russia, in which the U.S. would help Russia protect its nuclear stockpile. GOP appropriators had zeroed out funding for the program, and they instructed the administration not to use money set aside for other purposes. Lash funded the program anyway and failed to keep congressional appropriators fully apprised of his activity. He was promptly called before a House subcommittee and publicly excoriated for his failure to communicate with Congress. A subsequent investigation by the DOE’s inspector general concluded that Lash, while violating procedure, had not broken any laws. But according to multiple sources who recalled the incident, Lash’s gaffe was clearly being exploited in the service of a coup. These sources identified two men, Bill Magwood and Alex Flint, as being directly involved in Lash’s ultimate downfall. Magwood was Lash’s deputy. He had come to the DOE from the nuclear industry, and he would return to it at subsequent points in his career. Flint, meanwhile, was a clerk for Republican Sen. Pete Domenici, who steered billions of nuclear research dollars to his home state of New Mexico from his perch as chairman of the Senate Appropriations Subcommittee on Energy and Water Development. Democrats in the Senate and DOE who were involved at the time say that the House only found out about Lash’s funding of the Russia program because Magwood, a fellow Democrat, personally alerted Domenici. One source recalled that Magwood went directly to Flint. “I know that he talked to the Hill,” said one former senior Senate Democratic aide who worked directly with Flint and Domenici’s office at the time. “Whether he came to the Hill [physically], that’s how it was brought to Domenici’s attention, was through Magwood.” Lash, realizing too late that he was the likely target of a power play by his own deputy, fought back against Magwood by stripping him of staff. Congressional appropriators then rushed to Magwood’s defense. In an eerie echo of language that would later be used against Chairman Jaczko at the NRC, Rep. Joseph McDade (R-Pa.), who chaired the House subcommittee with nuclear jurisdiction, called Lash’s move against Magwood an “unprecedented action which I believe further demonstrates the willingness of the director to treat this office as his personal playground.” In the end, Lash was not fired from the DOE, but was instead moved to a top adviser position within what is now the National Nuclear Security Administration in May 1998 — evidence that Lash had been the victim of politics rather than guilty of wrongdoing. “The Secretary just felt it was better for Terry to step aside,” given the political pressure, said a former DOE official who worked with both Lash and Magwood. Magwood, meanwhile, took over for Lash as acting director of the Office of Nuclear Energy. When George W. Bush became president in early 2001, he asked for the resignations of top DOE officials. But Magwood had a patron in Domenici, and with the senator’s support, according to people involved at the time, Magwood was made permanent director of the program. The coup was complete. In an interview with The Huffington Post, Magwood denied that he’d orchestrated Lash’s overthrow, insisting that he had never spoken to Flint, Domenici or anyone else on the Hill about his former boss. “No, he did it all by himself,” Magwood said. “The problem back in the ’90s had to do with the allocation of appropriated funds. The House Appropriations Committee was very agitated about that and made a big deal out of that. That’s what led to his issues.” Lash’s career was effectively over. “It does change your life,” he told HuffPost. “It interferes with personal relationships, the ability to work with others who were not what you would call close, personal friends, but who were acquaintances. You could see in their mind that you have become tainted, and it just makes the whole thing less comfortable, and you never know who’s doing what and who believes what at some level.” THE SPOILS Magwood built a reputation at the Department of Energy as a sharp-elbowed operator. “He was a consummate inside player, a bureaucratic power player of the first order,” recalled a former Department of Energy colleague, who, like many others interviewed for this story, requested anonymity because his current work has him interacting regularly with industry clients. But that level of ambition is hard to contain over a long period of time in a relatively small industry. Every source to whom HuffPost spoke for this story referred to other players, whether friends or foes, by their first names. Magwood never understood it’s a small world. “He always struck me as a guy who thought he was playing in a bigger political pond than he was. I mean, there are about 50 people here in town who care about nuclear energy. So it seemed like a lot of politics for no good reason,” said one Democratic lobbyist who worked in the Senate while Magwood served in the Department of Energy. Flint is known as quite the operator as well. “I am telling you this, of all the appropriations clerks, House and Senate, all of them,” said a former senior Democratic aide who worked closely with him, “there was nobody as shrewd or full of guile or as politically calculating as Alex Flint. Before you would look at the tables of what you got in terms of earmarks and count ‘em up, I kid you not, you’d count your fingers, and you walked out of the room.” Three other former top Democratic Senate aides interviewed for this article who worked closely with Flint described him in similar terms. Flint has since put those skills to work in the private sector. The year Bush was elected, Flint left Domenici’s office for the lobby shop Johnston & Associates, which represented a host of nuclear companies, including the Nuclear Energy Institute. In 2001, Flint set up his own operation, racking up $510,000 in lobbying fees from nuclear clients in 2001 and 2002, according to disclosure records filed with the Senate. That came on top of the $2.125 million he pulled in for Johnston & Associates between 2000 and 2002 — including $260,000 from Westinghouse Electric Co., one of Magwood’s employers prior to arriving at the Energy Department. When Republicans retook the Senate in 2002, Domenici assumed the chairmanship of the Energy and Natural Resources Committee, and Flint took a nearly order-of-magnitude pay cut — earning just $150,000 a year, according to the salary tracker Legistorm.com — to return to Domenici’s staff. Meanwhile, the new vice president, Dick Cheney, made nuclear power a top priority, and subsidies for the industry exploded — eventually growing by 59 percent during the Bush administration, while giveaways for fossil fuels stayed roughly flat, the Government Accountability Office reported . Two decades removed from the Three Mile Island accident, a “nuclear renaissance” was under way. With Magwood working the Hill from his new perch at the Department of Energy, Flint pushing the staff effort and Domenici leading a number of Republican nuclear boosters on the Hill, Congress passed the Energy Policy Act of 2005. It included tremendous subsidies for the nuclear industry. Shortly afterward, Flint announced that he’d accepted the top lobbying job with the Nuclear Energy Institute, the largest industry lobbying group — although he stayed with the Senate committee for two more months . He cashed his final Senate paycheck in February 2006, the same month the NEI lists as his start with the group. In his lobbyist bio at the NEI, Flint now claims credit for implementing the very U.S.-Russia agreement that precipitated the Lash affair back in 1998. Magwood temporarily left public service at roughly the same time, stepping down from the DOE in 2005, nuclear subsidies safely in place. He set up his own consulting shop, which he called Advanced Energy Strategies, and began cashing in. Magwood had a wide range of nuclear clients, many of them in Japan, including the Federation of Electrical Power Companies in Japan, IBT Corp., Marubeni Corp., Mitsubishi Heavy Industries, RW Beck, Sumitomo Corp., CLSA Japan Equities Division and the Japan Atomic Energy Agency, according to financial documents Magwood provided as part of a later nomination and confirmation process, which were obtained by HuffPost. As HuffPost reported earlier , Magwood’s client list included the Japanese firm Tepco, which owns the Fukushima nuclear facility that melted down earlier this year following the devastating earthquake and tsunami. He confirmed the connection under Senate questioning. Magwood returned to regulatory work in 2009 — this time at the Nuclear Regulatory Commission. THE SAME PLAY The current fight against NRC Chairman Jaczko began with anonymous accusations that he was improperly asserting his authority to follow an administrative dictate, namely to shut down the planning for the Yucca Mountain nuclear waste repository, and that he’d been heavy handed with fellow commissioners, while failing to fully communicate in the wake of Fukushima — precisely the sort of charges leveled at Lash. An inspector general investigation was launched — step two — and, again, it found that the head of the federal office in question had acted within his legal authority and that he was carrying out administration policy. Step three in the playbook went public on Friday night, Dec. 9. Rep. Darrell Issa (R-Calif.), an industry ally whose fourth-largest campaign contributor is a company that owns a nuclear plant in his district, released a letter signed by Magwood, another Democratic NRC commissioner, and the two Republican commissioners attacking Jaczko. Internal emails released by Rep. Ed Markey (D-Mass.) show that staff for Magwood and Sen. James Inhofe (R-Okla.) closely coordinated the gathering of information damaging to Jaczko, information that the Markey emails later showed to be false. On the Monday after Issa released Magwood’s letter, Flint’s Nuclear Energy Institute issued a statement that echoed it, sometimes verbatim. Both the letter and the statement referenced “a chilled work environment,” and, while the statement didn’t explicitly call for Jaczko’s head, it left little room for doubt, saying that the industry was “confident that Congress and the White House will take the steps necessary.” (Despite the work environment charge, the NRC has routinely been rated as one of the best agencies to work for in the federal government, according to anonymous surveys of government employees.) David Lochbaum, a nuclear engineer and director of the Nuclear Safety Project at the Union of Concerned Scientists, said reformist commissioners at the NRC naturally tend to generate more conflict within the agency. “When you rock the boat and you disturb that status quo, that tends to be more of an irritant than if you don’t make waves,” Lochbaum said, adding that the last time there was this much internal static at the nuclear regulator was in the late 1990s, when Chairwoman Shirley Jackson famously tussled with her fellow commissioners — as well as with Domenici. The issue that most frequently provoked the commissioners under Jaczko, said Lochbaum, who worked briefly for the NRC himself in 2009 and 2010, had to do with the somewhat blurry line between what are considered day-to-day operations — the purview of the chairman — and matters of policy — which are supposed to be the province of the full commission. Who had what power was the animating criticism of Jaczko’s decisions to put the commission on emergency footing to study and upgrade safety at U.S. nuclear plants after the Fukushima disaster and to close out the NRC’s scientific review of the Yucca Mountain facility. The commissioners charged that Jaczko failed to consult them fully. A former senior Democratic aide who has worked with Jaczko, Magwood and Flint sees more political motivations at work behind the attacks on Jaczko. Magwood “and the industry hate Greg because they think he was put on the commission by Reid, who’s anti-Yucca, and he’s gonna be a Reid stooge. And you know what? They’re f*cking right,” the former aide said. “That’s exactly why he was put on there. But that commission and that agency were complete and total captives of the nuclear agency. One and the same. And what’s happening now is Alex is orchestrating this whole thing, and Magwood is.” For all its brazenness, a Democratic lobbyist and former senior Senate aide who worked on nuclear policy with Magwood and Flint sees the attack on Jaczko as a bit cowardly. “This whole thing is just a big proxy fight, where Greg is at the center of a fight where no one wants to take on the actual people you need to fight with, Harry Reid and Barack Obama, on Yucca Mountain. I mean, going after the civil servants, it’s just pathetic,” he said. Lochbaum, though, said he thinks the charge that the NEI is driving the turbulence goes too far, despite its well-known opinion of Jaczko. “The industry would certainly be pleased if Jaczko found another vocation,” Lochbaum said. “But I don’t think they are egging the other commissioners on. A lot of critics try to claim the industry controls the commission, but I really think they’re just smart people, and they feel their abilities aren’t being fully used.” Whether the NEI is leading from in front or behind, step four came the following Wednesday, Dec. 14, when Rep. Issa and fellow Republicans raked Jaczko over the congressional coals at a hearing of the House Oversight and Government Reform Committee. Later that day, the NEI blasted out a transcript of Issa’s hearing to key energy policymakers, according to one person who received it. It was the first time he’d ever received a hearing transcript from the industry. At the hearing, the full force of personal destruction was brought to bear. Magwood dropped an explosive charge that Jaczko had mistreated women at the agency. “These women remain very disturbed by these experiences,” Magwood said, declining to name the women or offer details. “A common reflection they all shared with me was, ‘I didn’t deserve this.’ One woman said she felt the chairman was actually irritated with someone else but took it out on her. Another told me she was angry at herself for being brought to tears in front of male colleagues. A third described how she couldn’t stop shaking after the experience. She sat talking through what had happened to her with her supervisor until she would calm down enough to drive home.” “Senior female staff at an agency like NRC are tough, smart women who have succeeded in a male-dominated environment,” Magwood continued. “Enduring this type of abuse and being reduced to tears in front of colleagues and subordinates is a profoundly painful experience for them. The word one woman used was ‘humiliated.’ I must note that none of these women want to have their names used publicly. As another woman told me, ‘It’s embarrassing enough I went through this. I don’t want to be dragged through the mud before some congressional committee.’” At least three House Republicans at the hearing called for Jaczko to step down. The New York Times led its story on the hearing with a reference to the charge that Jaczko mistreated women. But unlike 1998, Republicans don’t control both chambers. The next day, the five commissioners appeared again before Congress, but this time Sen. Barbara Boxer (D-Calif.), an aggressive environmentalist known for chopping down witnesses, held the gavel. Senate Republicans — including Sens. Inhofe, the ranking member of the Environment and Public Works Committee, David Vitter (La.) and John Barrasso (Wyo.) — hammered away at the abusive-toward-women charges, but Boxer and her allies were quick to deflect the accusations. “Senator Vitter opened up the issue of treatment of women so I’m going to take that up, because what is said here reminds me of the days — gosh, am I dating myself — of Joe McCarthy. ‘I have in my pocket a list of three people who said this and this and they’re anti-American,’” Boxer mimicked. Boxer told the panel that she had queried women at the NRC about Magwood’s claims and heard nothing but warm words from women who worked with Jaczko, who noted at the hearing that 10 of his 15 long-serving personal staff members are women — an unusually high number in a male-dominated field — and none has complained. Susan McCue and another woman Jaczko worked closely with, Carolyn Gluck, both strongly rejected the notion that Jaczko mistreats women. “Anyone who knows Senator Boxer knows she would never defend anyone guilty of mistreatment of women,” said Gluck, who has been with Reid since the ’90s and handles women’s issues for him. “If she thought there was even the slightest possibility any of the claims made about him were true, she would be one of his most vocal critics rather than one of his strongest defenders.” Capitol Hill is dominated by a happy hour culture that often leads to inter-office romances that can last just moments or a lifetime. But not for Jaczko, said Gluck, who shared a fake wall with him when they both worked for Reid. “He met the woman who is now his wife on our staff, but he never even considered asking her out on a date until she left the Senate, because he didn’t want to do anything that could make her uncomfortable or be construed as inappropriate,” Gluck said. At the hearing, Sen. Bernie Sanders (I-Vt.), who challenged Magwood on his connections to Fukushima, compared the charges to the trick question, “When did you stop beating your wife?” He asked the other commissioners if they’d ever lost their temper at work. “No,” said Magwood. “Wow. That’s interesting,” Sanders said. He asked the Republican senators on the committee if they’d ever lost their temper at staff, and several smiled sheepishly. The White House, for its part, isn’t buckling. On Dec. 12, White House Chief of Staff Bill Daley sent a letter to Issa and the commissioners laying out his support for Jaczko and declining Issa’s request to send a witness to his hearing. Daley suggested the commissioners seek mediation. THE UGLY UNDERBELLY Jaczko, through a spokesman, declined to comment for this article, but one former top Democratic Senate staffer suggested the attacks against the chairman are the flip side of the spreading of corporate largesse. “This is the ugly underbelly of large corporate lobbying,” said the former staffer, who has worked with the men at the center of both controversies and is now a corporate lobbyist himself. “It really is by any means necessary.” Gluck, Jaczko’s former colleague, pointed to the accusations about his treatment of women by way of example. “He’s the kind of guy who invites his sister to his bachelor party at a bowling alley because all he really wanted to do to mark the occasion was spend an afternoon with his closest friends,” she said. “I imagine that the fact that his wife, sister and mother have had to witness these outrageous personal attacks has been just devastating for him.” Lash said he knows what Gluck is talking about. “It’s not only hard on the individual. Your family suffers through this infamy,” he said. “People have spouses, they have children, and it’s not always easy to explain this to your family members.” Lash, 69, is now retired. “It’s very hard, and it does take a while,” he told HuffPost, when asked how long it took him to come to terms with what happened in the ’90s. “Maybe I never fully put it behind me.” Magwood, meanwhile, told HuffPost that any suggestion that he and Flint have worked together to smear Jaczko is false and that his work in the nuclear industry has had no influence on his service at the NRC. “I haven’t talked to Mr. Flint in probably three or four years,” he said, adding, “There’s nothing in my background that I believe suggests that I can’t act as an independent agent. I don’t have a special connection with Tepco or other Japanese companies. I did minor things for them, just wrote a couple of reports.” Whatever the full story behind the attacks on Jaczko, Gluck thinks they will backfire. “It’s such an overreach that I think they’ve severely miscalculated,” she said. If Jaczko’s opponents have judged wrong this time, that doesn’t mean there won’t be another attempt. One former Senate Democratic aide turned lobbyist, who followed both coups, marveled at the hubris: “How much trouble can you stir up in one tiny industry?”

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Mainstream GOP Voters Consider Candidate On The Fringe

December 28, 2011

SAN ANTONIO — Ron Paul wants to legalize pot and shut down the Federal Reserve. He thinks the federal government has no authority to outlaw abortion, no business bombing Iran to keep it from acquiring a nuclear weapon, and no justification to print money unless it’s backed up by gold bars. And he might win the Iowa caucuses. The closer the first votes of the 2012 presidential campaign get, the more competitive the Texas congressman has become. It’s a moment his famously fervent supporters have longed for. Plenty of others are asking: What’s Ron Paul about, again? As in his two prior quixotic campaigns for president, Paul has toiled for months as a fringe candidate best known for staking out libertarian positions. As every other Republican candidate lined up to attack President Barack Obama’s health care law and to promise tax cuts, Paul again demanded audits of the Federal Reserve and a return to the gold standard. Leading in some state polls, Paul is getting a look from mainstream voters in Iowa, where the 76-year-old obstetrician has emerged as a serious contender in the Jan. 3 caucuses – and in other early voting states, should he pull off a victory. The sudden rush of attention to Paul’s resume hasn’t been kind. He’s spent the past week disowning racist and homophobic screeds in newsletters he published decades ago, including one following the 1992 riots in Los Angeles that read, “Order was only restored in L.A. when it came time for the blacks to collect their welfare checks three days after rioting began.” “Everybody knows I didn’t write them and they’re not my sentiments, so it’s sort of politics as usual,” Paul said during a recent Iowa campaign stop. Looking to cut into Paul’s support, rivals laid into him on Tuesday. In an interview on CNN, Newt Gingrich said Paul holds “views totally outside the mainstream of virtually every decent American.” And Rick Santorum chided, “The things most Iowans like about Ron Paul are the things he’s least likely to accomplish and the things most Iowans are worried about about Ron Paul are the things he can accomplish.” Paul returns to Iowa on Wednesday, giving his impressive grass-roots organization in the state a last chance to present, and perhaps defend, positions he’s staked out over a long political career and reiterated during the 13 Republican debates held this year. Paul has served a dozen terms in Congress as a Republican, but he espouses views that have made him the face of libertarianism in the U.S. He blames both Republicans and Democrats for running up the federal debt and opposes any U.S. military involvement overseas. He wants to bring home all troops from all U.S. bases abroad. He vows to do away with five Cabinet-level departments – Commerce, Education, Energy, Housing and Urban Development, and Interior – and repeal the amendment to the Constitution that created the federal income tax. He opposes federal flood insurance and farm subsidies and wants to remove marijuana from the federal list of controlled substances while allowing states to decide how to regulate it. He says he’ll cut $1 trillion out of the first budget he offers as president. He doesn’t believe in a border fence but says illegal immigrants shouldn’t get a free education in public schools. He’s reliably described by political pundits as non-establishment, quirky, unorthodox. During a Republican debate in Sioux City, Iowa, earlier this month, Paul defended his views and rejected the idea that they make him unelectable. “The important thing is, the philosophy I’m talking about is the Constitution and freedom, and that brings people together,” Paul said. “It brings independents in the fold and it brings Democrats over on some of these issues.” Paul doesn’t always side with the most extreme conservative proposals. When it comes to Gingrich’s suggestion that judges could be hauled before Congress to explain their rulings, Paul joined other Republicans in dismissing the idea. Paul’s recent surge in Iowa isn’t the first time the GOP establishment has been forced to pay attention to him. A fundraising blitz that netted $5 million in one day in 2008 led Republican operatives to weigh whether he was a bigger threat to siphon votes than previously thought. Now he may be in his best position yet to do more than just steal votes. “I see this philosophy as being very electable, because it’s an American philosophy, it’s the rule of law,” Paul said.

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Will Bankrupt Toll Road Bankrupt The Feds?

December 28, 2011

When federal officials finalized a loan to a consortium building a toll road through open country in San Diego County near the Mexican border in 2003, they had high hopes for the project: the South Bay Expressway. Taking advantage of the Transportation Infrastructure Finance and Innovation Act, the investors behind the four-lane highway sought to prove that the private sector had a role to play in America’s transportation infrastructure. Unlike other so-called “brownfield” acquisitions of existing toll roads like the Chicago Skyway, the South Bay Expressway was supposed to serve as evidence that private industry could build “greenfield” highways with a little help from the feds. The $140 million in federal money loaned to the highway, Bush Transportation Secretary Norman Mineta said at the time, was “a TIFIA success story, demonstrating how innovative federal financing tools can attract private investment to critical transportation projects.” Officially owned by the California Department of Transportation, the road would be leased to a group of private backers until 2042. The toll road’s backers — including an assortment of some of the world’s leading banks and the Macquarie Infrastructure Group, a major player in the burgeoning world of such so-called “public-private partnerships,” (PPPs) — expected that the then-seemingly unstoppable suburban growth near San Diego would repay their investment handsomely. Eight years later, after $635 million in construction costs, disappointing traffic revenue, the housing crash and bankruptcy, the South Bay Expressway is something less than a monument to “innovative” financing methods and private industry. Instead, the the toll road, which emerged from Chapter 11 bankruptcy in April, was officially sold to the San Diego Association of Governments on Dec. 21. Macquarie, the Australian infrastructure investment company, simply wrote the road off as a loss . In the meantime, the bankruptcy tested one of key provisions of the TIFIA program: the so-called “springing lien” that jumps the federal government to the head of the line of creditors looking to recoup their investments. The bank lenders on the project will all lose money, but the federal government, which saw its initial $140 million loan to the company running the toll road chopped down to $94.2 million during the bankruptcy period, says that it will still break even on the South Bay Expressway because of higher interest rates paid on its loan. “I think in the end we were able to construct a deal that was good for both the region and TIFIA,” said Marney Cox, chief economist for the new owners, SANDAG. At the same time, Cox said, negotiations over how to construct the deal in such a way that the federal government wouldn’t lose money were difficult. “To have the first one go bad on you wouldn’t have been a good sign for the program over all,” Cox said. “So I think they were trying to figure out a way to save that program from going under.” Under a new arrangement with SANDAG, the Federal Highway Administration says, it may even have a shot at making more than the original principal and interest it predicted it would when it made the loan in 2003 — as long as traffic exceeds conservative estimates. The road’s tortured history, and especially its journey through bankruptcy court, are enough to convince critics of PPPs that this is one bet the feds never should have made. “Private toll roads are backed by expectations about increased driving volume,” said Phineas Baxandall of the U.S. federation of state Public Interest Research Groups. The decision to build any road is based in part on projections of future traffic volumes, which are notoriously tricky to calculate. In the case of toll roads with private investors, however, when the government gets involved, the government’s ability to break even is dependent on how accurately those private investors have judged the market. Baxandall thinks the Federal Highway Administration should have taken a harder look at the South Bay Expressway’s traffic projections. He also argues that projects like Los Angeles’s “30/10″ expansion of its mass transit program, which promises to build 30-years’-worth of subway and transit expansions in just 10 years, are a better bet for taxpayers. “Local transit projects like LA’s expansion or Denver’s light rail program are backed by local taxes, which are more reliable and can be tweaked to produce more revenue, so they should protect federal taxpayers’ TIFIA dollars better,” Baxandall said. Proposed legislation in the Senate could do away with mass transit’s edge in the TIFIA selection process. In San Diego, critics also raised eyebrows at the $341.5 million that SANDAG, the league of municipal governments, agreed to pay for the roads. That was significantly more than the road’s assessed value of $287 million during the bankruptcy. But Cox said the company in charge of the toll road after its bankruptcy was able to convince SANDAG that its business was worth the larger amount, because of arguments that it might be able to extend its lease on the road, chop executives’ salaries and reduce its property taxes. Carolyn Chase of the San Diego chapter of the Sierra Club said it was a case of misplaced priorities. “They love freeways,” Chase said. “Honestly. When you ask to use money for a better transit system, for instance, they’ll say ‘oh no, we can’t do that.’ But when it comes to a freeway, they find the money.”

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Richard Geldard: Romney’s War on "Entitlement"

December 27, 2011

It’s an old theme by now, going back to Reagan and his war on welfare, but this time it’s Romney’s war on entitlement. His new campaign refrain is to blame the poor for feeling “entitled,” for saying, “They owe me, I’m entitled,” while they sit back with their big screen HDTVs, their delivery pizza, laughing at the poor suckers who are getting up at six and working for a living. It’s Reagan’s campaign theme from 1980: “Send the welfare bums back to work.” This season’s entitlement theme came from a Tea Party sign that read “You Are Not Entitled To What I Earn.” Romney’s handlers took that sign and are running with it, refining Reagan’s equally blunt slogan with more subtle rhetoric : Will the United States be an Entitlement Society or an Opportunity Society? In an Entitlement Society, government provides every citizen the same or similar rewards, regardless of education, effort and willingness to innovate, pioneer or take risk. It’s an obvious distortion of langauge to say that the government provides every citizen the same or similar rewards. “Rewards?” Really? What is he talking about? As a Senior Citizen I have both Medicare and Social Security, one I pay something for and the other I earned by 40 plus years of teaching. It’s not a reward in any shape or form, and I resent the implication. Also, at one point in my life I needed unemployment insurance for a short time, and that wasn’t a reward either. It was help I needed to provide for my family until I could find another position. Romney wants to blame entitlements for our debt crisis and then to tout opportunity as the path to recovery. Well let’s look at opportunity as a theme. I’m all in favor of “America as Opportunity,” but Romney isn’t talking about real opportunity. He won’t talk about what opportunity requires: (1) guaranteeing a level playing field for all citizens to work hard and find success; and (2) having health care for all so that illness doesn’t prevent a person from fulfilling his or her dreams; (3) providing a quality and affordable education for every citizen so that he or she can successfully enter into and succeed in an innovative marketplace; and (4) it means making sure that our vanishing middle class can recover and be the true strength of American leadership in the world. Then and only then will “America as Opportunity” be realized. Every reasonably educated person knows full well what the word “entitlement” signifies to the impressionable electorate, and Romney will use a negative spin to strike fear and loathing into the hearts of those who resent paying taxes to help those who need support and a real opportunity to get ahead. Killing so-called “entitlements” is not a plan for American recovery. Putting the middle class on a solid economic footing is the key to recovery, and that will take a combination of higher taxes for the wealthy and renewed investment, which means getting mountains of cash off the sidelines and into the game and then creating a culture where all Americans have a chance to fulfill their dreams.

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Ann Brenoff: Long-Term Caring Means Insurance

December 27, 2011

This may scare the bejesus out of you. And I hope so. Lately, I’ve been spending too much time in the company of boomers who act like we’re invincible. According to a Met Life survey of long-term care costs , it will take more than $87,000 to spend a year in a nursing home, $42,000 for an assisted living place (plus a myriad of extras if you actually need any assistance with your living) and a death-defying $184,000 a year for home health aides working around the clock in eight-hour shifts if you delusionally think you can keep Mom or Pop at home. Oh, and p.s.: Eight out of 10 people over 85 will need this kind of help. Got that much cash? Didn’t think so; few of us do. What the Met Life study doesn’t say — this is the company whose spokesman is Snoopy, right? — is that getting old is not only hard on the body, but staying alive when the parts start to fail can seriously suck. And a lot of us are now learning this the hard way as we care for elderly parents and relatives who didn’t bother getting long-term care insurance. What were they thinking? That we’d let them die peacefully in their sleep? Sorry, but modern medicine doesn’t really allow for that. We bestow the civility of a compassionate death on our house pets, but insist on employing the full arsenal of the big medicinal guns for the humans we purport to love. No, this isn’t an ode to the memory of Jack Kevorkian, just a friendly reminder that long-term care is an insurance benefit you are more likely to find useful than life insurance since life insurance requires that we actually allow someone to die before a nickel is paid out. So make your own choice here, or better still, as a gift to your children, get yourself a living will and just ponder these numbers, brought to you courtesy of the Long Term Care National Advisory Center. http://www.longtermcareinsurance.org/ By 2030, one in five Americans will be a senior citizen and estimates are that those needing long-term care insurance will skyrocket to more than 23 million Americans. And each one of them is looking at a projected long-term care costs of about $300,000 a year. Those who merely need an assisted living arrangement — where your mom rents an overpriced room in a place and is supposed to be able to make her own way down to the communal dining room — can expect to spend an additional $352 a month on help getting dressed in the morning and another $307 a month for help getting in and out of the shower. Set aside another $530 a month on top of that if she needs help eating or suffers incontinence or needs a helpful arm to get up off the couch. Medication monitoring? Another $370 a month for when the little calendar pill boxes don’t do the trick anymore. Here’s the real catch: While it may be too late for your 80-year-old mother who didn’t take out a policy when she was younger, it likely isn’t too late for you — assuming you are still healthy and can accept the idea that even though you look and feel terrific today, you may not down the road. The insurance isn’t cheap though and as the boomer bulge ages, is getting even less so. The average new policy costs 25% to 30% more than it did five years ago, says the American Association for Long-Term Care Insurance. While no one likes writing a check with a lot of zeroes in it, without a policy, the alternative is that you’ll pay out of pocket until you’ve nearly exhausted your assets and can qualify for Medicaid. That or become a burden to your kids, and too many of us already know what that feels like.

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Woman Arrested After Punching Walmart Employee In The Face

December 26, 2011

People: we know holiday sales are great, but they’re not worth spending the night in jail. A New York woman was charged with two counts of second-degree assault after punching a 70-year old Walmart employee in the face. Jacquetta Simmons, 26, assaulted Grace Suozzi on Saturday night after the Walmart greeter asked to see her receipts, according to authorities. Simmons quickly fled the scene, but employees and customers chased her until she was surrounded. Not long after, police arrived and arrested her. Police reported that when they checked Simmons’ bags, she had receipts for all of the merchandise. WATCH:

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US- Gingrich suffers setback in Virginia

December 26, 2011

(MENAFN – Arab News) Â Presidential hopeful Newt Gingrich may be leading in polls of Republican voters in Virginia, but his name won’t appear on the state’s primary ballot, a significant setback for …

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High School Worker Fired For Porn Launches Own Porn Company

December 24, 2011

After being fired from a school board job she held for nearly a decade, a Quebec office assistant who moonlighted as a porn actress has wholly embraced the industry that got her into hot water in the first place. The woman — who prefers to go by her porn moniker Samantha Ardente — set tongues wagging in the spring when her off-hour escapades came to light after a student recognized her in an adult film. Months after she sparked widely varying opinions on her activities, Ardente started a production house for adult films and starred in the company’s debut flick. “I feel positive about everything that happened,” Ardente said through a translator. “It was a life experience but I came out a bigger and better person.” Founding her own adult film company was a step Ardente took only after gaining the approval of her 12-year-old daughter, who had previously been unaware her mother did porn on the side. “I didn’t have the time to tell my family what happened, they got to know it through the media,” she said, adding that it was hard to deal with the impact her uninvited fame had on her loved ones. “The name of my family was involved in a scandal.” Ardente was suspended from her job at a Quebec City-area high school in March after a student spotted her in a porn video on the Internet. While she didn’t deal with students in her job, the spicy contents of her videos turned her into quite the celebrity among them. School board officials fired Ardente after they were unable to reach agreement on her transfer to another job. They acknowledged Ardente hadn’t done anything illegal but said her cinematic activities don’t correspond with the values being taught at the school. Ardente had initially offered to put an end to her pornography career but said the board also wanted to impose working conditions that she felt would be too restrictive. After filing a grievance she eventually reached an out-of-court settlement with her employer. After a rollercoaster ride encompassing both negative and positive reactions to her previously hidden life, Ardente said her supporters inspired her to push ahead with the very actions that touched off the controversy in the first place. “I just continued with my life,” she said. Ardente said the production company she launched in August currently only makes tasteful “soft core” movies with couples. In her own film, she stars alongside her boyfriend and business associate Derek Tyler, but says she also has other projects with prominent porn stars in the works. Ardente is already featured in a calendar that can be found in select Quebec stores and has plans to launch a lingerie line in the future. “My life has changed in the sense that people who didn’t know me before recognize me in the street as Samantha,” she said. “They say that they’re happy to see I kept my head up and that I kept going forward instead of looking back.”

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New Air Jordans Launch Spurs Shopping Stampedes, Assaults

December 24, 2011

SEATTLE — Fights, vandalism and arrests marked the release of Nike’s new Air Jordan basketball shoes as a shopping rush on stores across the country led to unrest that nearly turned into rioting. The outbursts of chaos stretched from Washington state to Georgia as shoppers – often waiting for hours in lines – converged on stores Friday in pursuit of the shoes, a retro model of one of the most popular Air Jordans ever made. In suburban Seattle, police used pepper spray on about 20 customers who started fighting at the Westfield Southcenter mall. The crowd started gathering at four stores in the mall around midnight and had grown to more than 1,000 people by 4 a.m., when the stores opened, Tukwila Officer Mike Murphy said. He said it started as fighting and pushing among people in line and escalated over the next hour. Murphy said no injuries were reported, although some people suffered cuts or scrapes from fights. Shoppers also broke two doors, and 18-year-old man was arrested for assault after authorities say he punched an officer. “He did not get his shoes; he went to jail,” Murphy said. The mayhem was reminiscent of the violence that broke out 20 years ago in many cities as the shoes became popular targets for thieves. It also had a decidedly Black Friday feel as huge crowds of shoppers overwhelmed stores for a must-have item. In some areas, lines began forming several hours before businesses opened for the $180 shoes that were selling in a limited release. As the crowds kept growing through the night, they became more unruly and ended in vandalism, violence and arrests. A man was stabbed when a brawl broke out between several people waiting in line at a Jersey City, N.J., mall to buy the new shoes, authorities said. The 20-year-old man was expected to recover from his injuries. In Richmond, Calif., police say crowds waiting to buy the Air Jordan 11 Retro Concords at the Hilltop Mall were turned away after a gunshot rang out around 7 a.m. No injuries were reported, but police said a 24-year-old suspect was taken into custody. The gun apparently went off inadvertently, the Contra Costa Times reported. Seventeen-year-old Dylan Pulver in Great Neck, N.Y., said he’s been looking forward to the release of the shoes for several years, and he set out at 4:30 a.m. to get a pair. After the first store he tried was too crowded, he moved on to a second location and scored a pair. “I probably could have used a half a size smaller, but I was just really happy to have the shoe,” he said. The frenzy over Air Jordans has been dangerous in the past. Some people were mugged or even killed for early versions of the shoe, created by Nike Inc. in 1984. The Air Jordan has since been a consistent hit with sneaker fans, spawning a subculture of collectors willing to wait hours to buy the latest pair. Some collectors save the shoes for special occasions or never take them out of the box. A new edition was launched each year, and release dates had to be moved to the weekends at some points to keep kids from skipping school to get a pair. But the uproar over the shoe had died down in recent years. These latest incidents seem to be part of trend of increasing acts of violence at retailers this holiday shopping season, such as the shopper who pepper-sprayed others at a Wal-Mart in Los Angeles on Black Friday and crowds looting a clothing store in New York. Nike issued a statement in response to the violence that said: “Consumer safety and security is of paramount importance. We encourage anyone wishing to purchase our product to do so in a respectful and safe manner.” The retro version of the Air Jordan 11 was a highly sought-after shoe because of the design and the fact that the original was released in 1996 when Jordan and the Bulls were at the height of their dominance. Pulver said they were a “defining shoe in Jordan’s career.” Other disturbances reported at stores in places like Kentucky and Nebraska ranged from shoving and threats to property damage. In Taylor, Mich., about 100 people forced their way into a shopping center around 5:30 a.m., damaging decorations and overturning benches. Police say a 21-year-old man was arrested. In Toledo, Ohio, police said they arrested three people after a crowd surged into a mall. In Lithonia, Ga., at least four people were apparently arrested after customers broke down a door at a store selling the shoes. DeKalb County police said up to 20 squad cars responded. In Northern California, two men were arrested at a Fairfield mall after crowds shoved each other to get in position for the Nikes, police said. In Stockton, Detective Joe Silva said a person was taken into custody at Weberstown Mall on suspicion of making criminal threats involving the shoes. Police also were investigating an attempted robbery in the mall’s parking lot. The victim was wrongly believed to have just purchased Air Jordans. In Tukwila, Officer Murphy said the crowd was on the verge of a riot and would have gotten even more out of hand if the police hadn’t intervened. About 25 officers from Tukwila and surrounding areas responded. Murphy said police smelled marijuana and found alcohol containers at the scene. “It was not a nice, orderly group of shoppers,” Murphy said. “There were a lot of hostile and disorderly people.” The Southcenter mall’s stores sold out of the Air Jordans, and all but about 50 people got a pair, Murphy said. Shoppers described the scene as chaotic and at times dangerous. Carlisa Williams said she joined the crowd at the Southcenter for the experience and ended up buying two pairs of shoes, one for her and one for her brother. But she said she’ll never do anything like it again. “I don’t understand why they’re so important to people,” Williams told KING-TV. “They’re just shoes at the end of the day. It’s not worth risking your life over.” ___ AP Business Reporter Sarah Skidmore contributed to this report from Portland, Ore. AP Writer Michelle Price contributed from Phoenix.

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National Security Advisers To GOP Presidential Candidates Tied To $40 Billion In Federal Contracts

December 24, 2011

National security advisers to the Republican presidential candidates have ties to defense, homeland security and energy companies that have received at least $40 billion in federal contracts since 2008.

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‘Extreme Couponing’ Masters Face-Off

December 23, 2011

Some of TLC’s most ferocious savers from ” Extreme Couponing ” will be put to the test in “Extreme Couponing All-Stars,” a new reality competition series debuting Tues., Dec. 27 at 10 p.m. EST. In the new seven-part series, 12 “Extreme Couponing” veterans go head-to-head. Each episode will feature two couponers as they race around a store trying to get $500 worth of items in 30 minutes. The catch? Nothing can be full price. The couponers will donate their entire haul to a local food bank and the winner will be determined by whoever has the highest percentage of savings. “Saving money can be like a sport these days — taking careful planning and unwavering commitment. The cast of ‘Extreme Couponing’ are very serious about being the best shoppers, and this will be a fun way to see who has what it takes to save the most,” Amy Winter, GM of TLC, said in a statement. In this exclusive sneak peek, Michelle, described as a “buck-hunting super-saver,” takes on Chris. The two have very different shopping methods: Michelle plays quick and dirty and Chris plans meticulously. It’s sort of like “Super Market Sweep” on crack.

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Facebook, Google Get Censored For Offensive Content

December 23, 2011

NEW DELHI (Reuters) – U.S. companies Facebook, Google and Yahoo, and other internet firms, have been ordered by two Indian courts to remove material considered religiously offensive, the latest skirmish in a growing battle over website content in the world’s largest democracy. One court in the capital Delhi on Friday issued summons to 19 companies to stand trial for offences relating to distributing obscene material to minors, after being shown images it said were offensive to Hindus, Muslims and Christians, the PTI news agency said. “The accused in connivance with each other and other unknown persons are selling, publicly exhibiting and have put into circulation obscene, lascivious content, Metropolitan Magistrate Sudesh Kumar said on Friday in the PTI report. India has generally unrestricted access to the Internet for those of its 1.2 billion people who can afford it and are on the electrical and telephone grids. So far only about a tenth of the population uses the Web, but with the number of connections growing fast in the religiously conservative society, concerns about the nature of web content are growing in some quarters, including senior government officials. Another Delhi court earlier this week told the websites to remove photographs, videos or text which might hurt religious sentiments. “We believe that access to information is the foundation of a free society,” a Google spokesman said in an emailed statement. “Where content is illegal or breaks our terms of service we will continue to remove it.” The spokesman told Reuters the company had not yet been officially notified of the courts’ action. The courts and the other companies were not immediately available for comment. Earlier this month, Telecoms Minister Kapil Sibal urged Facebook, Twitter, Google and others to remove offensive material, unleashing a storm of criticism from internet users complaining of censorship. The Delhi court cases were brought by individuals, one by a journalist and the other by an Islamic scholar who runs a website called fatwaonline.org that gives answers to moral questions. Despite rules to remove offensive content, India’s internet access is largely free when compared with tight controls in fellow Asian economic powerhouse China. But in line with many other governments around the world, India has become increasingly nervous about the power of social media. India has 100 million internet users, the third-largest user base behind China and the United States which is forecast to grow to 300 million users in the next three years. (Reporting By Frank Jack Daniel; Editing by Erica Billingham)

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Dems, Reps Agree On Reducing Jobless Benefits

December 21, 2011

WASHINGTON — Republicans and Democrats have clashed frequently over federal unemployment insurance ever since the unemployed first became eligible for 99 weeks of benefits at the end of 2009. Despite the high-profile disagreements, which have repeatedly led to lapsed benefits for millions of people, Republicans and Democrats broadly agree on what to do next: reduce the duration of benefits and make sure their cost isn’t added to the federal budget deficit. But unless Congress reaches a compromise in the next week or so, federal unemployment benefits will lapse again for nearly 2 million people come January. In December, Republicans proposed reducing the number of weeks available by 40. Democrats are willing to meet them halfway by cutting 20 weeks, albeit in a backdoor fashion: Congress would reauthorize the two federal unemployment programs, but the second would automatically phase out in one state after another over the course of 2012. The phaseout would begin under a bill that passed the Senate on Saturday per a deal between Senate Majority Leader Harry Reid (D-Nev.) and his GOP counterpart, Sen. Mitch McConnell (R-Ky.). Democrats in the House of Representatives want the House to pass the Senate bill immediately. Although the Senate legislation would keep the federal programs in place for just two months, the second Extended Benefits program would phase out in 11 states during that time. It’s a “wholly inadequate” outcome, said Rep. Sander Levin (D-Mich.), the top Democrat on the committee overseeing unemployment, because “with very little warning, tens of thousands of long-term unemployed Americans will be cut off unemployment insurance.” Levin did not say, however, that he opposed the bill. The Extended Benefits program, which provides help for up to 20 weeks, kicks in after workers exhaust up to 53 weeks of federal Emergency Unemployment Compensation following 26 weeks of state benefits. The program is restricted to states with high and rising jobless rates. If a state’s jobless rate isn’t significantly higher than its rate three years ago, the program is not triggered. Democrats in both the House and Senate initially proposed reauthorizing Extended Benefits to allow states to extend their “lookback” period to four years ago, which would have meant more states kept the benefits through 2012. Those proposals have been pushed aside. As Republicans have noted, the Obama administration was the first to suggest letting Extended Benefits dwindle in 2012. Cynthia Rogers of Minneapolis received a letter last week telling her that Extended Benefits would end on Jan. 8. Rogers, 55, has been drawing unemployment benefits since September 2010, after she lost her job as a registered nurse due to an injury. She’s currently on the third “tier” of Emergency Unemployment Compensation, which lasts only 47 weeks in Minnesota (the duration of federal unemployment programs varies by state ). Rogers will be eligible for 13 weeks of Extended Benefits starting in January — if Congress renews the program and allows states to change their triggers. Rogers could use the money. “I’d be able to pay my medical premium for another month or two, and my car insurance and my rent,” she said. “But I still need a job.” She said she has already sold her house and is grateful her children are grown. She’s applied for pet store jobs as well as nursing positions. She’s planning to enroll in dog grooming school and launch a new career in Texas as soon as she can. “At age 55, no one wants to hire you,” she said in an email. “So, unless a Christmas miracle happens, I am at the mercy of Congress and the Lord Himself. I place my trust in God, not Congress.” As recently as 2010, Democrats insisted that the cost of federal unemployment compensation not be offset with spending cuts or tax hikes elsewhere in the budget, arguing that deficit spending stimulates the economy. They’ve since abandoned that stance and only disagree with Republicans on how the benefits should be paid for. Another area of agreement: Both parties support making millionaires ineligible for unemployment insurance. If such a policy had been in place in 2009, it would have saved $20 million out of $135.9 billion spent on benefits, according to the National Employment Law Project. The worker advocacy group argued in a recent report that cutting off higher earners could undermine what is supposed to be an entitlement for anyone who loses a job through no fault of his or her own: “[E]xaggerating the extent to which millionaires, a group of potential beneficiaries who garner little or no public sympathy, are drawing UI [unemployment insurance] benefits opens the door to means-testing of unemployment benefits at any level of income by essentially eliminating UI for certain workers at the highest income levels.” Republicans are on their own, however, when it comes to allowing states to drug-test the jobless and require layoff victims who haven’t finished high school to enroll in GED courses as a condition for receiving benefits. Neither Democrats nor Republicans have said they’d be willing to drop extended unemployment compensation altogether, something Congress has never done with a national jobless rate above 7.2 percent. But the latest deal has fallen apart, and most members of the House and Senate have returned to their districts for a Christmas break that ends in late January. As many as 1.8 million long-term jobless will lose assistance over the course of the month. Arthur Delaney is the author of ” A People’s History of the Great Recession ,” HuffPost’s first e-book.

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CU-Boulder Buys Up .xxx Domain Names

December 21, 2011

BOULDER, Colo. — The University of Colorado has snapped up 27 .xxx domain names in an effort to prevent pornographers from exploiting the school’s name and brands, but it failed in acquiring the Colorado.xxx name. The newly created .xxx suffix is the Internet’s adults-only variation on .com. Colorado.xxx, which is a variation of the school’s Colorado.edu domain, was acquired by Las Vegas brothel owner Edward Yeager. Yeager told the Camera that he would offer the name to the University of Colorado for $1,000. University spokesman Ken McConnellogue says he’s unsure whether the school will buy the domain from Yeager. The school spent about $200 on acquiring each domain. Other universities and schools across the country have done the same.

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Small Business Wish List: More Sales

December 21, 2011

Small-business owners are getting in the holiday spirit, revealing their wish lists in a survey from TD Bank . According to the survey, which polled 300 business owners along the East Coast, 61 percent said that increased sales would rank highest on their list. While thirteen percent of owners listed eliminating debt as a top priority, many are in the giving spirit, with 11 percent having hopes of giving raises or bonuses to their hardworking employees. Rounding out the list, 6 percent hoped for new equipment or software, 5 percent wanted more employees and 4 percent were looking to expand to a larger facility. Just 1 percent of business owners wished for a raise or bonus for themselves. “With economic pressures likely to continue in 2012, it will be more important than ever for small businesses to find creative ways to grow sales,” Fred Graziano, TD Bank’s head of regional commercial banking, government banking and small business, said in a statement. Looking forward, the survey also asked small business owners what their New Year’s resolution would be for 2012. Accordingly, many of the “wishes” turned into “resolutions”, with 26 percent of owners planning on spending more time developing marketing and sales strategies and 22 percent planning on eliminating company debt. Other resolutions included developing a better business plan and relying more on employees to handle daily operations.

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Feds Approve New Solar Energy Project

December 21, 2011

PHOENIX — The federal government has approved the Sonoran Solar Energy Project, which will be built on public lands in Arizona’s Maricopa County. Bureau of Land Management officials say it’s the first solar energy project approved on federal public lands in Arizona. The 300-megawatt project is expected to provide enough energy when operating at full capacity to power 90,000 homes. The 2,013-acre project is smaller than what was originally proposed (3,620 acres) and will use a fraction of the water (33 acre/feet a year) than originally envisioned (about 3,000 acre/feet a year). The project site is in the Rainbow Valley east of State Route 85 and south of Buckeye. The area contains wildlife habitat and authorities say burrowing owls will be relocated to other BLM lands.

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Olivier Blanchard: 2011 in Review: Four Hard Truths

December 21, 2011

What a difference a year makes … We started 2011 in recovery mode, admittedly weak and unbalanced, but nevertheless there was hope. The issues appeared more tractable: how to deal with excessive housing debt in the United States, how to deal with adjustment in countries at the periphery of the Euro area, how to handle volatile capital inflows to emerging economies, and how to improve financial sector regulation. It was a long agenda, but one that appeared within reach. Yet, as the year draws to a close, the recovery in many advanced economies is at a standstill, with some investors even exploring the implications of a potential breakup of the euro zone, and the real possibility that conditions may be worse than we saw in 2008. I draw four main lessons from what has happened. First, post the 2008-09 crisis, the world economy is pregnant with multiple equilibria — self-fulfilling outcomes of pessimism or optimism, with major macroeconomic implications. Multiple equilibria are not new. We have known for a long time about self-fulfilling bank runs; this is why deposit insurance was created. Self-fulfilling attacks against pegged exchange rates are the stuff of textbooks. And we learned early on in the crisis that wholesale funding could have the same effects, and that runs could affect banks and non-banks alike. This is what led central banks to provide liquidity to a much larger set of financial institutions. What has become clearer this year is that liquidity problems, and associated runs, can also affect governments. Like banks, government liabilities are much more liquid than their assets — largely future tax receipts. If investors believe they are solvent, they can borrow at a riskless rate; if investors start having doubts, and require a higher rate, the high rate may well lead to default. The higher the level of debt, the smaller the distance between solvency and default, and the smaller the distance between the interest rate associated with solvency and the interest rate associated with default. Italy is the current poster child, but we should be under no illusion: in the post-crisis environment of high government debt and worried investors, many governments are exposed. Without adequate liquidity provision to insure that interest rates remain reasonable, the danger is there. Second, incomplete or partial policy measures can make things worse. We saw how perceptions often got worse after high-level meetings promised a solution, but delivered only half of one. Or when plans announced with fanfare turned out to be insufficient or unfeasible. The reason, I believe, is that these meetings and plans revealed the limits of policy, typically because of disagreements across countries. Before the fact, investors could not be certain, but put some probability on the ability of players to deliver. The high-profile attempts made it clear that delivery simply could not be fully achieved, at least not then. Clearly, the proverb, “Better to have tried and failed, than not to have tried at all,” does not always apply. Third, financial investors are schizophrenic about fiscal consolidation and growth. They react positively to news of fiscal consolidation, but then react negatively later, when consolidation leads to lower growth — which it often does. Some preliminary estimates that the IMF is working on suggest that it does not take large multipliers for the joint effects of fiscal consolidation and the implied lower growth to lead in the end to an increase, not a decrease, in risk spreads on government bonds. To the extent that governments feel they have to respond to markets, they may be induced to consolidate too fast, even from the narrow point of view of debt sustainability. I should be clear here. Substantial fiscal consolidation is needed, and debt levels must decrease. But it should be, in the words of Angela Merkel, a marathon rather than a sprint. It will take more than two decades to return to prudent levels of debt. There is a proverb that actually applies here too: “slow and steady wins the race.” Fourth, perception molds reality. Right or wrong, conceptual frames change with events. And once they have changed, there is no going back. For example, nothing much happened in Italy over the summer. But, once Italy was perceived as at risk, this perception did not go away. And perceptions matter: once the “real money” investors have left a market, they do not come back overnight. A further example: not much happened to change the economic situation in the Euro zone in the second half of the year. But once markets and commentators started to mention the possible breakup of Euro, the perception remained and it also will not easily go away. Many financial investors are busy constructing strategies in case it happens. Put these four factors together, and you can explain why the year ends much worse than it started. Is all hope lost? No, but putting the recovery back on track will be harder than it was a year ago. It will take credible but realistic fiscal consolidation plans. It will take liquidity provision to avoid multiple equilibria. It will take plans that are not only announced, but implemented. And it will take much more effective collaboration among all involved. I am hopeful it will happen. The alternative is just too unattractive. From iMFdirect blog

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Census: U.S. Population Growing At Slowest Rate Since Mid-1940s

December 21, 2011

WASHINGTON — Many states that posted big population gains in the 2010 census are now seeing their decade-long growth fizzle, hurt by a prolonged economic slump that is stretching into larger portions of the South and West. New 2011 estimates released Wednesday by the Census Bureau are the first state numbers since the 2010 count, which found the nation’s population growth shifting to the Sun Belt. As a whole, the U.S. population grew by 2.8 million, reaching 311.6 million people. That growth of 0.92 percent was the lowest since the mid-1940s, hurt by fewer births and less immigration following the recent recession. From 2000 to 2010, the government previously reported the nation grew 9.7 percent, the lowest since the Great Depression. “The nation’s overall growth rate is now at its lowest point since before the baby boom,” said Census Bureau director Robert Groves. Washington, D.C., grew faster than any state in the nation, climbing by 2.7 percent from April 2010 to July of this year. It was the first time the District led states in growth since the early 1940s. Texas was next-fastest growing, followed by Utah, Alaska, Colorado and North Dakota. States that prospered during the real estate boom, such as Arizona, Nevada and Florida, were already beginning to show a drop in growth when their populations were officially counted a year ago. Since then, the slowdown has spread to other burgeoning areas whose populations had previously withstood much of the dampening effects of the sluggish economy. They include Georgia, South Carolina, Utah and Idaho, whose annual growth over the last two years is now the weakest than any time in the last decade. Texas, the big 2010 winner owing to a diversified economy that attracted new residents during the recession, is seeing its growth slow as fewer people move there. In contrast, Democratic-leaning states such as California and New York are losing fewer residents to other states than before. “Record low migration has continued to put a damper on what looked to be a Sun Belt growth explosion just five years ago,” said William H. Frey, a demographer at the Brookings Institution, who reviewed the numbers. “States that seemed immune from the housing bust are now experiencing declining population growth as employment opportunities in a variety of industries contract, and as mortgages seem nearly impossible to obtain.” The Census Bureau released state population estimates as of July 1, 2011. The data show annual changes through births, deaths, and domestic and foreign migration. In all, 38 states showed lower growth in 2010 and 2011 than in either of the previous two years during the recession. Twenty-three of these states are in South and West region. Moreover, 28 states showed either slower in-migration or greater out-migration than in either of the first two years of the recession. These include Nevada and Arizona, but also Texas, Georgia, North Carolina, Tennessee, Colorado and Utah. Three states – Rhode Island, Michigan and Maine – have lost population since the 2010 census. Kimball Brace, president of Election Data Services, said if the 2010 count had been held this year, Minnesota would have lost a seat in the House of Representatives and North Carolina would have picked up one due to the shifting population figures. Based on continuing losses, Rhode Island is now closer to losing one of its seats with just 41,000 people to spare. “It’s definitely not moving in Rhode Island’s favor,” he said. California remained the most populous state, followed by Texas, New York, Florida and Illinois. The slowing U.S. growth comes as foreign immigration has declined since the recession, and fewer people are moving around within the nation’s borders. In the last year, just 11.6 percent of the nation’s population moved to a new home – the lowest since the government began tracking information on movers in 1948. A few bright spots include North Dakota and Alaska, whose thriving energy industries have helped attract residents and buoy employment rates. Both ranked among the top six fastest-growing states for the last two years, ranking higher than Nevada, Arizona, Florida, Georgia and North Carolina. “After years of population decline, it’s welcomed news to see that our economic growth over the last decade continues to keep North Dakotans home,” said Gov. Jack Dalrymple. State demographers attributed the turnaround to an oil boom. The state’s population gain since the 2010 census is nearly one-third as great as that during the entire decade from 2000-2010. Florida, which saw its growth drop off sharply at the end of the last decade, is now showing signs of a slow recovery. From 2007 to 2009, Florida saw more people move out than move in for the first time since the early 1970s; the latest estimates are now showing some rebound in population growth, due to fewer people who are moving to other southern states and greater gains from the northeast. “The worst may be over for Florida,” said Kenneth Johnson, senior demographer and sociologist at the University of New Hampshire. As a whole, the South last year was the only U.S. region with a statistically significant increase in the poverty rate to 16.9 percent, higher than the national average of 15.1 percent. Some economists say huge swaths of the region could face a tough recovery after experiencing dramatic swings of housing boom and bust. In contrast, the District of Columbia’s population has reversed decades of decline in the 2000s as young professionals flocked to the region. It topped 600,000 last year for the first time in nearly 20 years as the relative stability of federal government jobs helped insulate the district from the nation’s economic woes. __ Associated Press writers James MacPherson in Bismarck, N.D., and Ben Nuckols in Washington contributed to this report.

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Labor Board Approves New Rules That May Help Boost Membership

December 21, 2011

WASHINGTON — In a win for organized labor, the National Labor Relations Board on Wednesday approved sweeping new rules that would speed the pace of union elections, possibly making it easier for unions to gain members at companies that have long rebuffed them. Business groups quickly denounced the move, saying it limits the time that employers have to educate workers about the impact of joining a union. The U.S. Chamber of Commerce has already filed a federal lawsuit challenging the rules. The rules, which take effect April 30, simplify procedures and reduce legal delays that can hold up union elections after employees at a work site gather enough signatures to form a union. “This rule is about giving all employees who have petitioned for an election the right to vote in a timely manner and without the impediment of needless litigation,” board chairman Mark Pearce said. Unions say the old rules allowed companies to file frivolous appeals, stalling elections for months or years. The new rules could help unions make inroads at businesses like Target and Wal-Mart, which have successfully resisted union organizing for years. But business groups claim the new plan allows “ambush” elections that don’t give company managers enough time to respond. “This decision erodes employers’ free speech and due process rights, and opens the door to rushed elections that will deny employees access to critical information and time to consider the issues at hand prior to entering the voting booth,” said Katherine Lugar, executive vice president for public affairs at the Retail Industry leaders Association. Most union elections currently take place between 45 to 60 days after a union gathers enough signatures to file a petition. The new rules could shorten that time by several weeks, depending on the situation. Many employers use the time leading up to an election to talk to workers about the cost and impact of joining a union. But union officials claim the lag time is often used to pressure or intimidate workers against forming a union. “It’s good news that the NLRB has taken this modest but important step to help ensure that workers who want to vote to form a union at their workplace get a fair opportunity to do so,” said AFL-CIO president Richard Trumka. While union leaders publicly tried to play down the new rules as a modest development, labor experts called the change significant. Unions have seen their ranks dwindle steadily over the last three decades to 11.9 percent of the work force. “Employers wouldn’t have fought against it so hard if it wasn’t going to make a difference,” said Kate Bronfenbrenner, director of labor education research at Cornell University’s School of Industrial and Labor Relations. One way employers can currently delay union elections is to raise questions about which workers should be included in a bargaining unit. Supervisors aren’t eligible for union membership, and the company and union can spend months litigating that issue. Under the new rules, questions about the makeup of bargaining units are resolved after the election takes place. “This isn’t going to change the world, but it’s one step, and we haven’t had a step towards workers’ rights in a very long time,” Bronfenbrenner said. The rules were approved by the board’s two Democratic members. Its lone Republican, Brian Hayes, has not yet cast his vote, but he is expected to cast a dissenting opinion sometime before the rule takes effect. Hayes is so strongly opposed to the plan that he threatened to quit the commission last month, claiming its Democratic members were ignoring longstanding procedures in their haste to finish the rules. The final rules were scaled back from an earlier version that would have required employers to hand over to union organizers a list of employees’ e-mail addresses and phone numbers. The board rushed to approve the new rules before the end of the year, when the term of Democratic member Craig Becker expires. The board currently has only three members instead of the usual five, and the Supreme Court has ruled that it can’t issue any decisions with less than three members in place. Congressional Republicans have blocked President Barack Obama from filling vacant posts on the board, and lawmakers have used procedural tactics to prevent Obama from bypassing the Senate to make recess appointments. The lawsuit filed by business groups late Tuesday claims the board circumvented its own operating procedures to finalize this rule, and that the rule itself short-circuits safeguards meant to ensure fair elections. “The blatantly partisan purpose of this rule is to ensure that employers have no time to talk to their workers about unionizing, and that the only information workers will get will come from the union,” said Robin Conrad, executive vice president of the U.S. Chamber of Commerce’s public policy law firm, the National Chamber Litigation Center. ___ Follow Sam Hananel on Twitter at http://twitter.com/shananel ___ Online: National Labor Relations Board: https://www.nlrb.gov/

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Jed Kolko: Trulia’s Real Estate Crystal Ball for 2012

December 21, 2011

My crystal ball is never as crystal-clear as I’d like, but I do think that we can expect a gradual economic recovery to move the housing market a few steps back toward normal in 2012. Even so, we still have a long ways to go. As we exit 2011, prices still not have rebounded after their huge declines, inventories are still well above normal, and the foreclosure rate is still far higher than before the bubble. Even the best possible 2012 won’t get us halfway back toward normal. Before getting into the predictions, let me be upfront about what I’m assuming. After 14 months of job gains, I expect the economy to continue its slow but determined recovery. I don’t do my own macroeconomic forecasts, but every single one of the fifty-ish economic forecasters surveyed by the Wall Street Journal expects the economy to grow throughout 2012, and that makes sense to me . Of course, any unexpected severe political or financial crisis could tip us back into recession, and then all bets are off. Here’s to hoping that doesn’t happen. My five predictions for housing in 2012: Delinquencies will go down, but foreclosures will go up. Fewer borrowers will fall behind on their payments next year, thanks to the strengthening economy and refinancings. The share of delinquent borrowers is already down more than a quarter from the peak a couple of years ago. But many borrowers who fell behind on their payments during the housing crisis are still in limbo: last year’s robo-signing controversy threw a wrench in the gears of the foreclosure process. That means that some delinquent loans haven’t yet entered the foreclosure process, and even fewer moved all the way through foreclosure — especially in Florida and other states where foreclosures require a longer legal process. Once a settlement is reached with banks over robo-signing in those states, we’ll see a new wave of foreclosures and foreclosure sales that’s long overdue. It’s a necessary step in getting the housing market back to normal even though it will be painful for people who lose their homes — and will rattle American’s confidence in the housing recovery. Rents will rise — which is a bad thing. With fewer people buying homes and more people losing their homes to foreclosures, the rental market is only going to get tighter especially in older, dense cities like New York , Washington DC and San Francisco . High rents will hold back economic growth if businesses can’t pay workers enough to have a roof over their heads. Squeezed city-dwellers won’t get relief until late 2012: that’s when a wave of new multi-unit construction projects that started late this year will be completed and available for rent. To tackle growth-killing high living costs in the priciest cities head on, local governments need to get rid of height restrictions and arduous permitting processes, which hold back urban construction and push development to the suburbs. Mortgage rates will inch up — which will probably be a good thing. A stronger economy will push Treasury bonds and mortgage rates up because inflation becomes more likely and investors demand higher rates to hold bonds. The Fed’s “Operation Twist” will prevent rates from rising too much, but other forces could push rates up higher or, alternatively, send them falling. If investors think the U.S. government will have trouble paying its debt — which they might if the government can’t agree to raise the debt ceiling or narrow the deficit — they’ll demand higher rates because of that risk; but global economic uncertainty — even here at home — could lower American interest rates if investors think American bonds are safe relative to other investments. Got whiplash yet? You’re forgiven. Lots of factors can push rates up or down. For the housing market, which direction rates go is less important than why. Gradual economic recovery is good news for the housing market even if it means higher mortgage rates — that’s what I think will win out next year. We’ll have higher rates for a reason we can cheer. Government will sit on its hands. In election years, politicians don’t take risks : they’re more talk and less action, so don’t expect any bold housing policy reforms next year. What’s more, with the housing market now recovering, we’re not in enough of a crisis to force political opponents together. The time has passed for bold government action on housing. We’ll look back wistfully on the modest policy wins of 2011: borrowers who’ve kept up their payments can now refinance under the expanded HARP program , and the government is planning ways to sell or rent out vacant homes it owns (which will probably be announced in early 2012). But these targeted policies won’t move the needle on national foreclosures, sales or prices. Smart cities are hot. In 2012, the local housing markets that will enjoy rising prices, new construction or both, are those that start the year with stronger job growth and fewer empty homes holding back the market. Based on these factors, along with other leading indicators, here are my top five cities to watch: Austin, TX , and Houston, TX . The bloom’s not off the yellow rose of Texas . Steady job growth and a construction revival make Austin and Houston two of my five cities to watch. Texas isn’t hung over from the housing boom like the other big states of the South and West, so there’s little to hold back growth. Honorable mention to Fort Worth and San Antonio . San Jose, CA . Wasn’t California at the center of the foreclosure crisis? Didn’t prices there fall more than everywhere else in the country? Yup. But there’s no such thing as the California housing market: California is almost as diverse as the U.S. Even though prices plummeted and foreclosures skyrocketed in inland California, the coast is another world. San Jose’s perennially tight housing market makes it faster to bounce back. The San Jose market — which includes most of Silicon Valley — has rapid job growth and the lowest vacancy rate in the country. Suburbs of Boston, MA . This Cambridge – Newton – Framingham market just west of Boston has a strong jobs engine and, like most of New England, missed the worst of the housing bubble. Honorable mention goes to Worcester , one step further west, and Boston’s northern suburbs around Peabody . These areas all benefit from offering more bang for the buck than crowded, expensive Boston: this is because most people looking to move are searching in more suburban or smaller areas than where they live now. Rochester, NY . That’s my hometown, and knowing what’s happened to Kodak and other pillars of the local economy, I was surprised when Rochester scored on the top 5 list. (I applied the same formula to all cities and did not have my thumb on the scale.) Prices — which fell little during the boom — are stable, and the economy has weathered blow after blow and is expanding. What do these markets have in common? Three — Austin, San Jose, and the area west of Boston — are technology centers. In those three metros, as well as in Rochester, a center of high-skill manufacturing industries, education levels are well above the national average. As the recovery proceeds, smart cities are leading the way. During the housing boom, the go-to cities tended to be lower-skill, lower-education metros. But in 2012, smart is hot: it’ll be the revenge of the nerds. Links to Trulia Insights blog posts: Jobs Report Bodes Well for Housing Asking What Our Country Can Do For Housing Where Construction Activity is Rumbling The Federal Government’s Re-Fi Plan: The Good, The Bad and The Ugly Renting Out Government-Owned Homes is the Right Move – But Probably Wouldn’t Make Any Difference to You Where Vacancies are High

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Report: Sun-Times To Be Sold For More Than $20 Million

December 21, 2011

The Chicago Sun-Times , the city’s second biggest newspaper whose recent financial woes led to a bankruptcy declaration in 2009 and the recent erection of a paywall for most web content , has been sold along with its holding company to a group of investors led by Michael Ferro Jr., CEO of Merrick Ventures LLC, and John Canning Jr., Chairman of Madison Dearborn Partners LLC. The sale includes the newspaper’s suburban daily and weekly newspapers and will reportedly close as early as Monday, with a price tag of more than $20 million , Crain’s Chicago Business reports. The sale is expected to be formally announced Wednesday. The impact of the sale on Sun-Times Media Chairman Jeremy Halbreich has yet to be announced, but the Chicago Tribune reports that Timothy Knight, former publisher and CEO of Newsday , has been tapped as CEO of the holding company. The newspaper’s former chairman, Mesiro Financial CEO James Tyree , died suddenly in March of an embolism, NBC Chicago reports. Tyree’s group bought the failing company in October 2009 for $5 million and absorbed $20 million in liabilities. Some sources are speculating that the sale could be accompanied by a partnership or other new relationship with the Chicago News Cooperative. Ferro and Canning, believed to be investing as individuals, are both board members at the nonprofit, Crain’s reports. Other board members reportedly signed non-disclosure agreements related to the sale. Sun-Times newspaper circulation reportedly dropped between five and 10 percent across the board this year, according to the Tribune . The media group’s average daily circulation ranks 12th overall among U.S. weekday newspapers. Earlier this month, Halbreich told the Tribune that the company was “not for sale, we have never been put up for sale.”

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Ask Rod: Should We Outsource Our Manufacturing?

December 21, 2011

Moving your company’s manufacturing overseas can be a tempting way to trim your budget. But what about the hidden costs? And attracting customers to your website is only half the battle. How do you convince them to be once they’re there? Executive Editor Rod Kurtz — along with special guest, Billy Leroy of Billy’s Antiques & Props , shares his tips on overseas manufacturing and increasing sales. Got a question about your business? We’re here to help! Just send us an e-mail at  askrod@huffingtonpost.com . Or tweet us at  @HuffPostSmBiz .

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RIM Turns Down Amazon Merger Advancements: Sources

December 21, 2011

Research In Motion Ltd. (RIM-T12.90-0.47-3.52%) has turned down takeover overtures from Amazon.com Inc. (AMZN-Q182.523.191.78%) and other potential buyers because the BlackBerry maker prefers to fix its problems on its own, according to people with knowledge of the situation.

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Standard & Poor’s Cuts Credit Ratings Of Ten Spanish Banks

December 15, 2011

(Adds details, background) By Fiona Ortiz MADRID, Dec 15 (Reuters) – Standard & Poor’s cut the credit ratings of 10 Spanish banks on Thursday and said they remained on watch for a possible further cut subject to a review of Spain’s sovereign rating. The banks include Bankia and its holding company, Caixabank MC> and its holding company, Ibercaja, Bankinter , Sabadell and Popular. S&P said the cut came after it applied new ratings criteria and updated its group methodology for banks. The criteria were changed in November to increase clarity regarding hybrid capital instruments. Spanish banks are heavily exposed to bad, and potentially bad, loans after a prolonged housing bubble burst in 2007, and risks remain even after prolonged restructuring and recapitalisation. The economy is stagnant, the banks are depending on the European Central Bank for liquidity, and many of them must raise more capital as well. The incoming government of centre-right leader Mariano Rajoy — due to be sworn in as prime minister on Wednesday — is planning a fresh overhaul of the banking sector, possibly creating a holding company for toxic real estate assets. S&P this month put sovereign debt from the entire euro zone currency bloc on review for possible downgrades due to the deepening economic and credit crisis in the region. The agency said on Thursday that within four weeks of deciding on whether or not to downgrade Spain’s government debt, it will announce decisions on possible further cuts in the ratings of Spanish banks that are on review. Spain’s sovereign debt is currently rated AA- by S&P, an investment grade that indicates a “very strong payment capacity”. (Reporting By Fiona Ortiz; Editing by Will Waterman and David Hulmes)

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Are Women Entrepreneurs Selling Themselves Short?

December 15, 2011

Women in less developed economies are more likely to start or maintain a business venture than those living in developed countries, according to the 2010 Women’s Report released Wednesday by the Global Entrepreneurship Monitor . The study, which surveyed women entrepreneurs in 59 countries, found that when it comes to entrepreneurship, males tend to cite “opportunity” as their main motivator, while women more often start or maintain businesses out of “necessity.” And since there is a higher percentage of people in developing countries whose entrepreneurial endeavors are born out of necessity, the study said, women make up a larger share of the total number of entrepreneurs in less-developed economies than they do in developed economies. But the report also suggests that the global recession, which has its roots in developed, innovation-driven economies, spawned a wave of people in developed economies who have turned to entrepreneurship just to get by. “We saw a great spike in necessity-based entrepreneurship in the U.S. and Ireland in the last year,” said Donna J. Kelley, one of the authors of the study, who is also a professor of entrepreneurship at Babson College. “Entrepreneurship allows people to create jobs when society can’t provide them with jobs due to the economy’s stage of development or market variations.” ( Click here for a PDF of the study. ) The study also found that there are 187 million women actively starting or maintaining a business venture globally. Participation varies greatly across the globe, ranging from 1.5 percent to 45.4 percent of adult women in a single economy. And in only one of the surveyed economies — Ghana — did women entrepreneurs out-number men. The female to male entrepreneur ratio is the highest in Latin American countries with efficiency-driven economies, the report found, while Japan, Korea and Iran showed large gaps between male and female entrepreneurship.

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Security Firm Doubles Its Business By Protecting The 1 Percent

December 15, 2011

The worse the U.S. economy fares and the bigger the income inequality gap grows, the better business seems to get for Paul Viollis and Douglas Kane. Their New York City-based company, Risk Control Strategies , has doubled its revenues this year by providing security services to the affluent. Viollis, who formerly ran one of the nation’s largest police academies and a counterterrorism assault team, met Kane, who served in the FBI as a SWAT team supervisor, in 2003, on a job assessing a large bank that was a possible target for attack. “We clicked,” Viollis says. “Two weeks later, we sat in a bar in lower Boston until about 4 in the morning and, on a stack of bar napkins, wrote up a business plan.” They agreed the wealthy would face increasing risks to their lives and therefore require more security. That idea came years before the collapse of Wall Street, the recession and Occupy Wall Street. Viollis acknowledges the indelicacy of their serendipitous success, and explains why he’s proud of their mission to protect the 1 percent. How did Occupy Wall Street and the economy in general benefit your business? People generally think, “I’m okay, I live under the radar,” and don’t recognize risk, but whenever you see a major event, that’s when our business spikes. Forensically, back in the fourth quarter of 2008, we had the implosion of Wall Street, the AIG collapse, the whole Paulson thing with the banks — that’s really where we had the growth spurt, and we’ve been in critical mass since. The really frightening part is where are we now. It’s what I refer to as a perfect storm of risk: the financial implosion and the banking crisis, the decline of the world economy, the failure of the super committee to effectively strategize a debt solution, unemployment, the Occupy Wall Street movement and the global increase of violent crime against Americans when they travel. What types of clients do you serve? Senior level, C suite execs and entrepreneurs, people who have had significant liquidity events and are now retired investors, and on the institutional side, single and multi-family offices and the advisor community. The majority of our clients are wealthy families, a significant amount are corporations in the financial, manufacturing, technology, pharmaceutical, entertainment sectors — just about every industry across the board. Do you get a sense from these clients that there is a growing culture of fear? No question. Several clients have opted to secure an alternative residence outside the country. Two have actually bought islands. There’s an apprehension right now among the high net-worth community as to are we really safe from terrorism, and where are we economically, as in, are we going to become the next Greece or Italy? There’s a huge vote of no confidence among our clients as far as where the country is headed. And that’s why so many of them are trying to protect themselves. We had a couple of Occupy Wall Street protesters show up at one of our client’s homes in Connecticut, protesting outside while his kids were being brought to school. So you’ve got that, which is not going away. We have this risk that’s circling us right now, and you can only navigate in those waters so long before you either find a solution or have an explosion. Do you attribute the fact that you almost doubled revenue this year to Occupy Wall Street? Yes. People want to make sure they’re preemptively addressing certain risks. It doesn’t help when you have clients getting emails from strangers saying, “I know you have lunch at the Starbucks on Williams and John,” or “That’s a nice house you have in Greenwich.” That kind of spooks you a little bit. It’s not a threat — you can’t charge anybody — but it’s enough to make people stop and say, “Am I really safe or do I now have to look over my shoulder?” Part of our job is to temper that fear, to make sure people aren’t running around terrified unjustly. For us to look at the human race with a jaundiced eye is inaccurate, unfair and unrealistic. For example, someone who’s uneasy might not have to pay me for bodyguards. I take a look at his or her schedule and see how some lifestyle changes might be modified to bring peace of mind. Throwing money at the problem doesn’t necessarily solve it. Do you deal with a lot of paranoia from clients? Part of the job is to hand-hold the client. I spend a lot of time visiting with clients all over the country. If someone is anxious, it helps to look someone in the face rather than communicating over email. And education is key. Maybe they should have better security at their house or have a driver in Dubai rather than catching a cab, but should they spend tens of thousands of dollars on protection detail? The security deliverable must be validated by the probable risk. What’s the oddest request you’ve gotten from a client? The past three to four months, we’ve been inundated with calls from folks who want to get together an Armaggedon plan — in the event of a nuclear attack, terrorist attack, biological test, wanting to get off, say, the island [of Manhattan] to a safe house. That’s not going to happen. What will happen is New York will be shut down. The police department, military, FBI will take over, and you’re not going anywhere. [Some affluent clients] have been told [by security companies], “We have submarines that will take you out — we’ll airlift you,” and charge a truckload of money, for what — to have helicopters on call? That’s distasteful to me — it’s playing off someone’s fear. We cannot accept money from a client for things we cannot do. What type of requests do you more commonly deal with? The main ones are detail background investigations — not background checks — on house staff. Another growth spurt has been our technical surveillance counter measure practice, because of the desire of companies such as hedge funds to verify that eavesdropping devices are not in their offices. Our cyber security practice has grown for building small servers and putting them in people’s homes so they can communicate safely over the Internet. Security architecture for residences is huge. The system we aspire to is a tiered system vs. reactive system. The reactive system is designed to tell you when someone is in your home. But you have an average of 12 seconds from when a person gets in the house to face to face contact. Our system that we design and install ourselves will tell you when someone steps on the property. We have not had one intruder on the property ever proceed to the house. The technology we use at the outer perimeter of the property is body heat-, mass- and weight-sensitive, but you can’t detect or disarm it. So the moment someone steps on the property, lights come on and there’s a prerecorded message saying, “You’re trespassing, you’re being recorded on videotape, the police have been called.” We use high pixel cameras with Infrared illuminators that give you an image at 3 in the morning that looks like 3 in the afternoon. So God forbid, if you do have an intruder, we take a snapshot and send a crystal clear picture to the police department and say” this guy is on the property.” But it’s not like Occupy Wall Street protesters pose this level of threat. I agree with you. The vast majority of people are there because they’re exercising their constitutional right. And they’re entitled to do that as long as they abide by the law. But in any movement in history, peaceful or not, you have your share of zealots. It only takes one to start doing something violent, and all hell’s going to break loose. So when crowds of people by the thousands or ten thousands start blaming certain groups of people for their lot in life, eventually it becomes violent. By guarding the “bad guys,” are you seen as a bad guy yourself? I am — I have no doubt by the feedback I’ve gotten in emails after TV appearances or on articles I’ve been quoted in. But that comes with it. For me, it’s nothing personal. I clearly understand I’m viewed as a guy who’s “protecting the establishment.” Listen, our responsibility is to protect human life. On our website is the Latin phrase “Servare Vitas,” which means to save lives. That’s our job. If protecting people means the majority views me in a bad light, then it is what is. I certainly understand that. Have you had to increase your own personal security as well? I have, yeah. Unfortunately, we field a number of concerning calls and deal with people making threats. I’ve gotten calls from people who are irate, asking, “Why would you protect these people? We thought you were a good guy.” But that’s okay. When you do what we do, you have to feel blessed every day. It’s a good feeling to know that we’re in a position to be able to help as many people as we can. Name: Paul Viollis and Douglas Kane Company: Risk Control Strategies Age: 50, 60 Location: New York City, with offices in Los Angeles; Palm Beach, Florida; Houston, and Nevada Founded: 2004 Employees: More than 80 Revenue: Not disclosed. Revenues projected to double in 2011 and increase by 70 percent in 2012 SEE The 10 Most Memorable Moments Of The ‘Occupy’ Protests

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NYC Probe Finds Internet Is ‘A Vast, Unregulated’ Illegal Gun Market

December 14, 2011

A New York City undercover investigation heralded as the first of its kind has found a “vast and largely unregulated market for illegal guns” on the Internet, and the worst offender is a website that has gotten mixed up with the law before: Craigslist. In the report released Wednesday, entitled, ” Point, Click, Fire: An Investigation of Illegal Online Gun Sales ,” investigators found that sellers on Craigslist agreed 82 percent of the time to sell guns to a purchaser who admitted they probably couldn’t pass a background check. Not that anyone is supposed to be selling guns on Craigslist. The website, which depends on self-policing, claims to ban firearms sales yet thousands of guns were found listed for sale there, according to the report. In contrast, investigators were unable to find a single firearm for sale on eBay, which prohibited gun sales in 1999 and “appears to effectively enforce its policy” by removing weapons listed for sale and threatening to restrict or suspend accounts that violate the rules. The results of the report are set to be announced Wednesday by New York Mayor Michael Bloomberg, a long-time gun control advocate who co-founded Mayors Against Illegal Guns , as well as Police Commissioner Raymond Kelly and other officials. More than 4,000 websites offer guns for sale, according to the Department of Justice. As the new report illustrates, the anonymity of the Internet has spurred huge growth in online sales. “Criminal buyers who once had to purchase in person can now prowl hundreds of thousands of listings to find unscrupulous sellers. Negotiations can be conducted from the discreet remove of a phone call or an email exchange,” it said. Federally licensed firearms dealers are required to conduct background checks on all buyers, whether in person or online. But unlicensed “private sellers” are exempt from conducting background checks. This so-called “gun show loophole,” along with the Internet, now accounts for about 40 percent of U.S. sales, fueling what law enforcement officials say is a huge black market for illegal guns. One online gun dealer was linked to both the 2007 Virginia Tech massacre that killed 32 people and the mass mass shooting at Northern Illinois University in 2008 that left five dead. Guns purchased illegally online also have been linked to police shootings, gun trafficking and sales to minors. The report’s findings could give new meaning to the term ” Craigslist killers ,” a category of criminals who in recent years have found and lured their victims on the popular classified advertising website. In the New York investigation, a team of 15 undercover agents surfed the Internet over a period of 18 days to capture audio and video recordings of online gun sellers blatantly skirting the law that bars the sale of firearms to felons, the mentally ill, domestic abusers and other prohibited buyers. The investigators examined 125 private sellers in 14 states who advertised on 10 different websites. They found more than 25,000 guns for sale on those sites alone. City investigators posing as illegal purchasers asked five sellers to meet in person to exchange cash for guns. All five agreed, selling investigators four handguns and a semi-automatic assault rifle while being recorded with hidden cameras. Among the findings: 62 percent of private gun sellers — 77 of 125 online sellers contacted — agreed to sell a firearm to a buyer who said he probably couldn’t pass a background check. Besides Craigslist, unlicensed sellers also offered arms at alarmingly high rates with no questions asked at Armslist , Gunlistings , Glocktalk and the classified section of Utah news website KSL.com . Sellers in five Southern states — Tennessee, Kentucky, Louisiana, South Carolina and Virginia — were the worst offenders, followed closely by dealers in Arizona, New Mexico, Utah and Texas. Midwest sellers have the best record, with 48 private sellers refusing to make illegal sales. The report recommended Congress pass a long-stalled bill that would close the online and gun show loophole to allow background checks for all gun sales, a measure the National Rifle Association has fought for years. It also said the federal Bureau of Alcohol, Tobacco, Firearms and Explosives should conduct sting operations against online websites that do not require buyers or sellers to identify themselves, and urged the Bureau to better track guns bought online that are later used to commit crimes. Websites such as Craigslist, it said, should tighten self-policing policies.

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US mulls tax break for space ‘burials’

December 14, 2011

(MENAFN – Jordan Times) Americans who want to save money on taxes may want to consider rocketing their ashes into space, according to legislation being proposed in Virginia. The bill, up for debate …

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Caitlin Dally: Let’s Move it All!: Why Universities and Other Institutions Should Participate in Bank Transfer Movement

December 12, 2011

I am a senior at the University of San Francisco, but the greater part of my youth was spent in a small town, rural-esque, quaint community on an island off of Seattle: Vashon Island. When my family first moved to Vashon, the small business community was flourishing; local grocers, restaurants, realty offices, a movie theater, etc. Everything was home grown — including one of my favorite cafés, Fred’s Home Grown. Fred’s is now boarded up, like most of Vashon’s retail space, available for rent because of its inability to maintain business in our current economy. Not only did Fred’s close, my mother’s interior design business and art gallery, which served as a space for community, was forced to close too. The importance and value of local businesses are vital for defining and creating a sense of community. Outside of the old hardware store, now a restaurant, hangs a sign: “Today’s special, so is tomorrow.” Can tomorrow be special without independent and local businesses? Formerly Fred’s homegrown cafe, this storefront space has been vacant for months and is now a place for community members to post bills about events in the town of Vashon. Recently it appears that the American public has recognized the correlation of the demise of such endearing small businesses with the prevalence of corporate banking institutions. When a 27-year-old Los Angeles resident made a Facebook event inviting her friends to move their money into credit unions and other responsible financial institutions, she had no idea that her action would go viral. Together, according to estimates, one million Americans have participated in the bank transfer movement. These citizens moved their money, stating that they would no longer support too-big-to-fail banks but rather invest in institutions, which prioritize community over profit. Bank transfer day was just one day in a movement towards keeping tomorrow special, to create a better financial future for Americans. I was among many college students who were inspired to participate in bank transfer day by moving their money into credit unions. We choose to support credit unions, and community development financial institutions because they function differently from corporate banks. The customer of a credit union is a member who acts like share holder and plays a role in the bank’s decision making. Credit unions often offer higher rates for deposits, lower costs for loans and reduced fees. But most importantly, credit unions work for these small businesses and community organizations offering manageable business loans and fair and maintainable mortgage rates. This past summer I started working for the Responsible Endowments Coalition (REC) because I want to think globally and act locally. At REC, we work to foster social and environmental change by making responsible investment a common practice amongst colleges and universities. I have realized that the bank transfer movement is not just about the action that people need to take individually by independently investing their money in responsible financial institutions. For it to be truly successful institutions must participate alongside citizens. Often, I look at my bank account balance and it is pretty dismal. I know as a college student there’s not much money in my personal checking account. But when I imagine how much money a university possibly has in the bank, it seems infinite. We are looking at millions, if not billions of dollars. The University of San Francisco alone has $213 million in its endowment. These institutions need to start taking their banking decisions seriously. There is no time like the present to build off of the success of Bank Transfer Day. Let’s demand that the institutions, which we are affiliated with, invest in responsible financial institutions. Most universities have a candy-coated, sweet pitch for prospective students and their parents. My university and many other Jesuit institutions uphold a great standard in their commitment to fighting for social justice. Is investing in corporate banks, which foreclose on families who they purposefully target with sub-prime mortgage loans, socially just? I don’t think an institution claiming faith in social justice can maintain their reputation while supporting these current corporate financial institutions. It is imperative that we ask our universities and institutions to act responsibly, to have the maximum possible impact possible. And the time is now. Let’s move our money and keep tomorrow special.

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Finding Coal’s Future Might Require A Look Back At The Past

December 12, 2011

WASHINGTON (Reuters / December 11) – As futuristic projects designed to capture carbon from coal-burning industries and store it underground have failed, the two largest consumers of the fuel, the United States and China, hope answers to limiting emissions blamed for global warming lie in the past. Power-generators, coal miners and policy makers had put faith in projects to capture carbon dioxide from coal-fired plants and pump it directly underground into geologic formations for permanent storage. The great hope was that the technology would prevent much of the world’s largest source of greenhouse gas emissions from reaching the atmosphere. But so-called carbon capture and storage projects have collapsed like a row of dominoes this year in West Virginia, Scotland and Germany. The stumbling blocks have been high costs for the technology and bleak prospects the world will put a high price on emitting greenhouse gases. Fortunately for those seeking to cut emissions from coal, one industry has profited for nearly four decades from socking away carbon dioxide emissions. That industry, enhanced oil recovery, is hungry for more of the gas. Companies including Denbury Resources and Kinder Morgan have piped carbon dioxide from naturally occurring sources into aging oil fields to push out crude that traditional drilling is unable to reach. As natural sources of carbon dioxide run dry, many of these companies are looking to industrial sources of the gas. Power utilities and other coal-burning companies may find it wiser to link up with this mature industry than to plunge ahead with their own versions of carbon capture and storage. Originally, enhanced oil recovery specialists thought aging oil fields could store about 100 billion metric tons of carbon dioxide, or about 5 percent of what would be needed to reduce the threat of climate change. But as researchers learn more about the storage potential of old oil zones, in both China and the United States, they say much more carbon could potentially be stored in these places. “We’ve realized if EOR is going to be a bridge to steep carbon reductions … that bridge is both wider and longer than originally realized,” said Julio Friedmann, the technical program manager at the U.S.-China Clean Energy Research Center, formed in 2009 by U.S. President Barack Obama and China’s President Hu Jintao. Experts say success with enhanced oil recovery could give new life to the entire field of carbon capture by enlarging the market for man-made carbon, helping to build out a pipeline network to move it to market, and helping the business become more efficient in shooting the gas underground. “Without commercial transactions, no one knows the price,” said Deborah Seligsohn, an energy expert based in Beijing with the research group the World Resources Institute. She said enhanced oil recovery “would cause the price discovery and all the other commercial relationships that would need to get developed.” If the world does not widely deploy carbon capture and storage by the 2020s, the cost of limiting global temperatures would rise by $1.1 trillion, the International Energy Agency said last month in its annual outlook. This would put an “extraordinary burden” on other low-carbon technologies including wind and solar power, the IEA said. Experts believe carbon dioxide used in enhanced oil recovery can be stored permanently underground because over time it is absorbed in brine and eventually mineralizes into a more stable form. But there are risks, including pushing up water that contains heavy metals and other pollutants. Still, backers say the water can be re-injected underground. An added benefit of enhanced oil recovery is the extra oil that could be produced in areas that have not traditionally been big petroleum centers such as Ohio, Indiana, and Illinois in the United States and Inner Mongolia in China. As China scours the world in search of new oil supplies, one hope is that the country’s old oilfields in the Bohai Gulf, which also happen to be near chemical plants that burn large amounts of coal, could see a second life. China currently pumps its old oilfields with water, which is scarce, or polymers, which can be expensive. After an initial investment in pipelines and other infrastructure, using carbon dioxide to push out China’s oil could be a viable option. So far, the United States leads China in enhanced oil recovery partly because small U.S. technology companies have been more nimble than China’s big oil companies. “It’s smaller guys that do this cutting edge, creative stuff, and China doesn’t have independent oil companies,” said WRI’s Seligsohn. But China’s Science and Technology Minister Wan Gang recently hosted an international conference on using emissions for coal plants, signaling the government is serious about moving into this industry. And China boasts at least one advantage that even its huge state oil companies are finding hard to ignore: Its fleet of chemical plants that run on coal provide a far purer stream of carbon dioxide than coal-fired power plants do. That type of discovery has made researchers more hopeful the United States and China can work together. “The more we’ve studied it, the better it works,” said CERC’s Friedmann. “The question is how to create a social legal regulatory framework to enable this technology.” (Reporting by Timothy Gardner; Editing by David Gregorio) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Hints Europe’s Crisis May Already Be Taking Toll On Corporate America

December 10, 2011

NEW YORK (Caroline Valetkevitch) – On top of euro zone debt troubles, Wall Street now has to worry about sagging sales from Europe as a recession in the region seems more likely. Warnings from companies such as chemical maker DuPont (DD.N) and chip maker Texas Instruments (TXN.N) suggest the crisis may already be taking its toll on corporate America. While holiday shopping has started on an upbeat note, the corporate warnings could sour the cheer for some investors. “We are now beginning to see the collateral damage of the events in Europe with the earnings guidance cuts,” wrote Peter Boockvar, equity strategist at Miller Tabak & Co. in New York. Fourth – and first-quarter earnings growth estimates for Standard & Poor’s 500 companies have come down sharply since July, underscoring worries about the outlook for companies. Earnings are now expected to increase 10.1 percent for the fourth quarter, down from a growth estimate of 15 percent at the start of October and from an estimate of 17.6 percent in July, according to Thomson Reuters data. The data also showed that negative preannouncements by companies are outpacing positive ones by the biggest ratio since the second quarter of 2001. Late Thursday, Texas Instruments cut its revenue outlook for the current quarter, citing lower demand, while DuPont on Friday lowered its full-year profit forecast. Overseas, German specialty chemicals group Wacker Chemie (WCHG.DE) also cut its outlook, with the industry worried about slower global growth. Among others in technology, Lattice Semiconductor Corp (LSCC.O) cut its fourth-quarter revenue outlook on Friday. Stocks mostly brushed off the bearish news on earnings, focusing instead on Europe after nearly all European Union leaders agreed to build a closer fiscal union to battle the sovereign debt crisis. But the market for months has struggled with the news from Europe, which featured the lack of resolution to the debt crisis, causing high uncertainty for investors. “Today was a positive move forward. Unfortunately European austerity will impact global corporate earnings going into the next year,” said Chad Morganlander, portfolio manager at Stifel, Nicolaus & Co in Florham Park, New Jersey. “European policymakers’ inability to placate investor fears has business decision-makers hesitant to give positive light to the coming months,” he said. Stocks ended with gains for a second straight week, and the profit warnings came on the heels of what has been considered a fairly robust third-quarter reporting period. For the week, the Dow rose 1.4 percent, the S&P gained 0.9 percent and the Nasdaq was up 0.8 percent. Earnings increased 17.9 percent for the third quarter, according to Thomson Reuters data, up from a forecast for 13.1 percent growth in early October. Prospects for profit and revenue growth have been among the chief reasons why a good number of analysts remain optimistic about stocks heading into 2012. Kenneth Fisher, a billionaire investor and author whose money management firm oversees $40 billion in assets, said 2012 “will be a very nice year” for the United States. “Revenue growth, as a function of the economy, is pretty damn gangbusters,” he said at the Reuters 2012 Investment Outlook Summit this week. FORECASTS HIT Still, the aggregate change in consensus earnings estimates has been coming down even over the past month, according to Thomson Reuters StarMine data. All but two S&P 500 sectors — healthcare and consumer staples — show negative earnings revisions to estimates over the past 30 days, the data showed. Materials and financials are among sectors showing the biggest drops in estimates. For the fourth quarter, earnings for the materials sector are now expected to have decreased 1.4 percent from a year ago, while in October earnings were expected to have risen 25.6 percent. Financials, seen as the sector most sensitive to euro zone problems, also have taken a hit. Sector earnings are expected to have increased 18.3 percent for the fourth quarter, down from an October 3 forecast for growth of 26.6 percent. S&P 500 revenue is expected to have increased 6.6 percent in the fourth quarter compared with revenue growth of 11.1 percent in the third quarter, Thomson Reuters data showed. “A lot of companies are talking about Europe,” and its effect going forward, said Greg Harrison, Thomson Reuters earnings research analyst. Also, lackluster trading volumes are going to affect financials here in the United States, he said. Companies seemed more optimistic heading into 2011. Consumer confidence was higher, and the crisis in Europe seemed more contained. Among companies with disappointing outlooks a year ago were Xilinx (XLNX.O) and Jo-Ann Stores, which forecast a weak 2011 profit on Dec 1, 2010 but was bought by a private equity firm in January. (Reporting by Caroline Valetkevitch; Additional reporting by Ernest Scheyder and Nicola Leske; Editing by Kenneth Barry) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Fired RIM Execs ‘Chewed Through Restraints’ In Flight

December 10, 2011

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

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Country Approves Incentive Package For Amazon Warehouse

December 9, 2011

SPARTANBURG, S.C. — The Spartanburg County Council has unanimously voted to give an incentives package to a new Amazon.com Inc. warehouse in Spartanburg, S.C. The county will give the Internet retail giant a 6 percent fee-in-lieu-of-taxes agreement for 30 years and widen the street where the company will build its new million-square foot distribution center. County Councilman David Britt says he expects Amazon to break ground on the new warehouse before the end of the year. County leaders say the warehouse should bring in about 400 full-time jobs, with more workers during season peaks and an investment of $50 million. Amazon built its first distribution center in South Carolina in Lexington County earlier this year.

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Wall Street Finishes Week Higher After EU Deal

December 9, 2011

NEW YORK (Reuters) – Stocks rallied on Friday, finishing the week higher after European Union leaders agreed on a plan to toughen the region’s budget rules to help restore market confidence after a two-year sovereign debt crisis. The agreement went some way to address the structural problems behind the bloc’s debt crisis, but investors said more was now needed to relieve stress in the region’s troubled debt markets. “The fiscal agreement will help, but not for long,” said George Feiger, chief executive of Contango Capital Advisors based in San Francisco. “There is no happy ending to the situation. There are just solutions that are not horrible,” he said. Equities had risen in anticipation of a plan, with the S&P 500 up 6.5 percent since late November. But Wall Street tumbled on Thursday after the European Central Bank dashed hopes for additional bond buying. There are investors who believe the ECB will eventually have to commit to bigger purchases of euro zone sovereign debt to shore up the battered market. At least part of Friday’s rally was a snap-back from the previous session’s losses, traders said. The Dow Jones industrial average ended up 186.56 points, or 1.55 percent, at 12,184.26. The Standard & Poor’s 500 Index was up 20.84 points, or 1.69 percent, at 1,255.19. The Nasdaq Composite Index rose 50.47 points, or 1.94 percent, at 2,646.85. For the week, the Dow rose 1.4 percent, the S&P gained 0.9 percent and the Nasdaq was up 0.8 percent. Banks, which have been pressured by the uncertainty over Europe, rallied after the EU summit. Bank of America Corp rose 2.3 percent to $5.72, while JPMorgan Chase & Co added 3 percent to $33.18. The Financial Select Sector SPDR rose 2 percent. In the latest sign of resilience in the U.S. economy, consumer sentiment rose to its highest level in six months in early December on signs of a better jobs market and an improving economy, according to a survey by Thomson Reuters/University of Michigan. The EU summit failed to secure changes to the EU treaty among all the member countries and investors warned the move was far from a panacea. Indications suggest the region is sliding into a recession and questions about how to bring down high sovereign debt yields are still unanswered. Goldman Sachs suggested that investors short German equities through the benchmark DAX index in a note to clients published late on Thursday. “The European summit seems focused on a set of future priorities for increased fiscal risk sharing and the outlining of some of the needed elements of a new fiscal arrangement, but looks to have little to say about alleviating proximate stresses in Greece and Italy and the European banking system more generally,” Goldman said. Still, Italian bonds reversed losses, with traders citing frequent European Central Bank forays into Italian debt markets throughout the day. Traders also said “fast money” accounts were covering short positions in bonds of so-called peripheral EU countries. Some caution signals were sent by major U.S. companies. DuPont and Co fell 3.1 percent to $45.04 after the Dow component cut its 2011 profit outlook, citing slower growth in some businesses. Texas Instruments Inc cut its revenue outlook for the current quarter, warning of lower demand. The stock ended flat at $29.94. (Reporting By Angela Moon; Editing by Kenneth Barry) Copyright 2011 Thomson Reuters. Click for Restrictions .

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