Prime Time

33rd Kennedy Center- Merle Haggard, Jerry Herman, Bill T. Jones, Paul McCartney and Oprah Winfrey.  I think I’ll pass.  Throwball- Vikings @ Eagles finally.  New Nova.  No LoDo (and there was much rejoicing).

A good night for movies.

You mean, let me understand this cause, ya know maybe it’s me, I’m a little fucked up maybe, but I’m funny how, I mean funny like I’m a clown, I amuse you? I make you laugh, I’m here to fuckin’ amuse you? What do you mean funny, funny how? How am I funny?

Come a day there won’t be room for naughty men like us to slip about at all. This job goes south, there well may not be another. So here is us, on the raggedy edge. Don’t push me, and I won’t push you. Dong le ma?

Later-

Dave in repeats from 11/23.  Conan in repeats from 11/10.

Let us not, dear friends, forget our dear friends the cuttlefish… flipping glorious little sausages. Pen them up together, and they will devour each other without a second thought… Human nature, in’it? Ooor… fish nature… So yes… we could hold up here, well-provisioned and well-armed, and half of us would be dead within the month! Which seems grim to me any way you slice it! Or… ahh… as my learned colleague so naively suggests, we can release Calypso, and we can pray that she will be merciful… I rather doubt it. Can we, in fact, pretend that she is anything other than a woman scorned, like which fury Hell hath no? We cannot. Res ipsa loquitur, tabula in naufragio, we are left with but one option. I agree with, and I cannot believe the words are coming out of me mouth… Captain Swann. We must fight.

Evening Edition

Evening Edition is an Open Thread

From Yahoo News Top Stories

1 Ivory Coast’s Gbagbo faces West African ultimatum

by Christophe Koffi, AFP

58 mins ago

ABIDJAN (AFP) – A trio of West African leaders Tuesday tried to persuade Ivory Coast strongman Laurent Gbagbo to stand down, brandishing the threat of force if he refuses to cede power to rival Alassane Ouattara.

The leaders of Benin, Cape Verde and Sierra Leone held talks with Gbagbo at the presidential palace, warning that troops from around the region could be sent to topple Gbagbo from the helm of the world’s top cocoa producer if he remains defiant.

Presidents Boni Yayi of Benin, Ernest Koroma of Sierra Leone and Pedro Pires of Cape Verde also held talks with Ouattara at a hotel where he and his supporters have been holed up during the country’s political crisis.

2 Russia tells West ‘mind own business’ over tycoon

by Anna Smolchenko, AFP

Tue Dec 28, 11:14 am ET

MOSCOW (AFP) – Russia Tuesday brusquely told the West to keep out of its domestic affairs after “unacceptable” criticism by the United States and Europe of the new guilty verdict for jailed tycoon Mikhail Khodorkovsky.

Khodorkovsky is facing the prospect of an additional lengthy jail term after being found guilty in his second trial the day earlier in a verdict that provoked an angry reaction in the West.

The White House said it was “deeply concerned” about the “selective application of justice”. France called for rule of law in Russia, while Germany said the verdict was a step backward for Russia.

3 Nobel laureate Liu marks 55th birthday in prison

by Marianne Barriaux, AFP

Tue Dec 28, 8:31 am ET

BEIJING (AFP) – Jailed Nobel peace laureate Liu Xiaobo marked his 55th birthday on Tuesday in a prison in northeast China, prompting renewed calls from rights groups for his immediate release.

Liu, a writer and one-time professor, was sentenced to 11 years in prison on Christmas Day last year on subversion charges after co-authoring Charter 08, a bold petition calling for political reform in one-party Communist-ruled China.

He was named the peace prize winner in October, sparking fury in Beijing, which equated the Oslo-based Nobel committee’s decision with encouraging crime. A ceremony in Liu’s honour was held in the Norwegian capital on December 10.

4 PepsiCo’s Russia deal wins Putin’s blessing

AFP

2 hrs 42 mins ago

MOSCOW (AFP) – PepsiCo’s big venture into Russia received a major boost Tuesday when Prime Minister Vladimir Putin gave his blessing to the US giant’s takeover of a major local juice and dairy firm.

PepsiCo’s intended purchase of Wimm-Bill-Dann is its biggest acquisition outside the United States and one of the most important deals ever struck outside the Russian energy sector.

The takeover earned a nod of approval from the head of Russia’s anti-monopoly service Monday and still further support from the country’s de facto leader Putin one day later.

5 England close in on Ashes as Australia crash

by Robert Smith, AFP

Tue Dec 28, 7:33 am ET

MELBOURNE (AFP) – England were on the verge of retaining the Ashes after feeble Australian batting left the fourth Melbourne Test at their mercy on Tuesday.

The tourists left the Australians with the huge task of either scoring 415 runs to make England bat again or lasting out eight sessions to secure a draw but the home team showed little fight after their opponents had amassed 513 at the MCG.

Australia were facing probable defeat some time on Wednesday’s fourth day with no rain forecast over the last two scheduled days of the match.

6 Web helps revival of old Arabic poetry in Lebanon

by Rita Daou, AFP

Tue Dec 28, 9:34 am ET

BEIRUT (AFP) – Zajal, an old form of improvised Arabic poetry that enjoyed its heyday in Lebanon before the 1975-1990 civil war, is making a tentative comeback with thousands of fans on Facebook and YouTube.

Traditionally an emotional oratory duel between two men, zajal once drew crowds of tens of thousands who revered its artists as poets of the highest order. It also enraptured fans who sat glued to their black-and-white television sets for the shows.

In the years after the war, however, the art dwindled as more modern forms of entertainment gained popularity and the audience for zajal was relegated to a handful of nostalgic admirers.

7 Consumer confidence slips as home prices decline

By Wanfeng Zhou, Reuters

1 hr 59 mins ago

NEW YORK (Reuters) – Consumer confidence unexpectedly deteriorated in December, while prices of single-family homes fell almost double the expected pace in October, tempering growing optimism on the economy’s recovery.

The latest data was at odds with other signs suggesting the economic recovery is accelerating and a separate report last week showing consumer sentiment in December at its highest level since June.

Concern about the jobs market pushed an index of consumer attitudes to 52.5 in December from 54.3 in November, the Conference Board said on Tuesday. That was below the median of forecasts from analysts polled by Reuters for a reading of 56.0.

8 Apple sued over apps privacy issues; Google may be next

By Supantha Mukherjee and Saqib Iqbal, Reuters

2 hrs 39 mins ago

BANGALORE (Reuters) – Two separate groups of iPhone and iPad users have sued Apple Inc alleging that certain software applications were passing personal user information to third-party advertisers without consent.

In the lawsuits seeking class action, filed in a federal court in California, the plaintiffs sought a ban on passing of user information without consent and monetary compensation, according to case documents.

At some point, both cases may be consolidated into one by the judges presiding over the cases, said Majed Nachawati, a partner at law firm Fears & Nachawati, one of the attorneys for the complainants.

9 Allstate sues BofA, Mozilo over Countrywide losses

By Jonathan Stempel, Reuters

2 hrs 28 mins ago

NEW YORK (Reuters) – Allstate Corp has sued Bank of America Corp and 18 other defendants over alleged losses on more than $700 million of mortgage securities it bought from Countrywide Financial Corp.

The largest publicly-traded U.S. home and auto insurer alleged it suffered “significant losses” after Countrywide misled it into believing the securities were safe, and that the quality of residential home loans backing them was high.

Allstate said that starting in 2003, Countrywide quietly decided to boost market share by approving any mortgage product that a competitor was willing to offer, in a “proverbial race to the bottom.” It said Countrywide then passed on the added risks to investors who bought debt backed by the mortgages.

10 Russia accuses West of meddling in Khodorkovsky trial

By Alexei Anishchuk and Maria Tsvetkova, Reuters

Tue Dec 28, 12:00 pm ET

MOSCOW (Reuters) – Russia accused the United States and Europe on Tuesday of trying to influence the trial of jailed former tycoon Mikhail Khodorkovsky, calling such efforts unacceptable and warning the West to mind its own business.

Moscow’s angry message came as Khodorkovsky, whose imprisonment has been a bone of contention between Russia and the West for years, awaited a new sentence that could keep him in jail until 2017 after being found guilty of theft.

Prosecutors are seeking an additional six-year prison term for Khodorkovsky, the former Yukos oil company CEO who is 10 months from the end of an eight-year sentence imposed after a previous trial during Vladimir Putin’s presidency.

11 Japan output up on Asia demand

By Leika Kihara, Reuters

Tue Dec 28, 3:59 am ET

TOKYO (Reuters) – Japanese factory output rose for the first time in six months in November and manufacturers expect to boost production in coming months, suggesting that firm demand in Asia will help the economy resume a recovery early next year.

But creeping rises in the yen kept policymakers on alert for risks to the export-reliant economy, with the finance minister repeating his warning that the government would take decisive action to stem any sharp yen rises that could hurt growth.

Industrial output rose 1.0 percent in November, matching a median market forecast and marking the first rise in six months, the Ministry of Economy, Trade and Industry said on Tuesday.

12 Microfinance faces hurdles in empowering Afghan women

By Michelle Nichols, Reuters

Tue Dec 28, 3:57 am ET

KABUL (Reuters) – In a dimly lit room at the back of an Afghan house, 21-year-old Zahara is crouched on a plank of wood weaving a large carpet on a loom that she was able to buy using a microfinance loan of $1,100.

Zahara started weaving carpets when she was 10 and did not go to school, but the loan from non-profit development group BRAC allowed her to start her own business about 18 months ago and she has since taken out two more loans of $330 each.

“When I first got the money, the carpets I was making were small and now I can make bigger carpets,” said Zahara, who heard about microfinance loans from her neighbor in Kabul. “Before I made carpets for other people and now I make them for myself.”

13 Twin suicide bombings kill 17 in Iraq’s Ramadi

By Fadhel al-Badrani, Reuters

Mon Dec 27, 1:39 pm ET

RAMADI (Reuters) – Twin suicide bombings rocked a government compound in Iraq’s western city of Ramadi on Monday, killing 17 people, a deputy interior minister said.

It was the second attack this month on the compound, which houses the provincial council ands the police headquarters for Anbar province, and the third bombing there in the past year.

“The death toll is 17 killed and between 50 and 60 wounded,” Lieutenant General Hussein Kamal, a deputy interior minister, told Reuters.

14 NATO disputes Afghan authorities over deadly raid

By Hamid Shalizi, Reuters

Mon Dec 27, 8:23 am ET

KABUL (Reuters) – The NATO-led force in Afghanistan disputed Monday an Afghan government accusation that foreign troops had violated a security deal by conducting a night raid in Kabul in which two guards were killed.

Under the 2008 deal, Afghan authorities have to approve and lead all security operations in the capital. But the Ministry of Interior (MOI) has said that foreign forces ignored the security rules and it was unaware of Friday’s operation.

Raids by foreign forces, deeply unpopular among ordinary Afghans, are a source of friction between the NATO-led International Security Assistance Force (ISAF) and Afghan President Hamid Karzai’s government.

15 Several injured as chairs drop from Maine ski lift

By GLENN ADAMS, Associated Press

24 mins ago

CARRABASSETT VALLEY, Maine – A 35-year-old chair lift set for upgrades or replacement failed Tuesday at one of Maine’s most popular ski resorts, sending skiers plummeting into ungroomed snow far below that fell with the Northeast’s recent blizzard and softened the landing.

The Sugarloaf resort in Carrabassett Valley, about 120 miles north of Portland, said about six people were taken to hospitals after five chairs fell. The resort’s ski patrol evacuated the lift.

The resort said the lift, which went into service in 1975 and recently passed an inspection, was set for improvements but wouldn’t say when.

16 European anarchists grow more violent, coordinated

By NICOLE WINFIELD and DEREK GATOPOULOS, Associated Press

23 mins ago

ROME – A loosely linked movement of European anarchists who want to bring down state and financial institutions is becoming more violent and coordinated after decades out of the spotlight, and may be responding to social tensions spawned by the continent’s financial crisis, security experts say.

Italian police said Tuesday that letter bombs were sent to three embassies in Rome by Italian anarchists in solidarity with jailed Greek anarchists, who had asked their comrades to organize and coordinate a global “revolutionary war.”

Identical package bombs exploded at the Swiss and Chilean embassies in Rome on Dec. 23, badly wounding the two people who opened them. A third bomb was safely defused at the Greek Embassy on Monday.

17 Turmoil in Pakistan as party quits Cabinet

By NAHAL TOOSI, Associated Press

24 mins ago

ISLAMABAD – Pakistan’s U.S.-allied ruling party suffered a fresh blow to its fragile hold on power Tuesday when a coalition partner said it will quit the cabinet, deepening the nation’s political turmoil and potentially distracting Islamabad from helping American forces target militants.

New elections could lead to the emergence of a government not as friendly to U.S. interests and less vocal in opposing the Taliban.

Still, even if the government changes – a prospect that is not at all certain – the country’s new leaders will be faced with the same seemingly intractable challenges as their predecessors: a feeble economy, chronic power shortages and rebuilding after this year’s horrendous flooding.

18 Manatees paddle to warm water to escape Fla. chill

By TAMARA LUSH, Associated Press

19 mins ago

APOLLO BEACH, Fla. – People aren’t the only ones in Florida who don’t like cold weather. Manatees – those giant aquatic mammals with the flat, paddle-shaped tails – are swimming out of the chilly Gulf of Mexico waters and into warmer springs and power plant discharge canals. On Tuesday, more than 300 manatees floated in the outflow of Tampa Electric’s Big Bend Power Station.

“It’s like a warm bathtub for them,” said Wendy Anastasiou, an environmental specialist at the power station’s manatee viewing center. “They come in here and hang out and loll around.”

Cold weather can weaken manatees’ immune systems and eventually kill them. State officials said 2010 has been a deadly year for the beloved animals: between Jan. 1 and Dec. 17, 246 manatees died from so-called “cold stress.” During the same time period in 2009, only 55 manatees died from the cold. In 2008, only 22 manatees succumbed to chilly temperatures.

19 West Africa delegation tells Gbagbo he must go

By MARCO CHOWN OVED, Associated Press

19 mins ago

ABIDJAN, Ivory Coast – West African leaders who came to deliver an ultimatum to Laurent Gbagbo met with him late into the night Tuesday after threatening a military ouster if he doesn’t accept an offer to go into exile a month after the disputed election.

Meanwhile, the U.N. mission said that a peacekeeper had been wounded with a machete when a large crowd encircled a convoy and set one of its vehicles on fire.

The regional delegation led by presidents from Sierra Leone, Cape Verde and Benin held meetings with both Gbagbo and internationally recognized winner Alassane Ouattara, then returned to meet with Gbagbo a second time late Tuesday.

20 700 NATO soldiers killed in 2010; new firefights

By ELENA BECATOROS, Associated Press

1 hr 19 mins ago

KABUL, Afghanistan – A coalition patrol fought off an insurgent attack in mountainous eastern Afghanistan Tuesday, on a day when two servicemen were killed in the country’s troubled south, bringing the death toll for foreign troops in the country 2010 to 700, according to an AP count.

This year is by far the deadliest for the coalition in the nearly decade-long war, as tens of thousands of additional international troops have poured into the country in an effort to suppress a virulent Taliban insurgency. But while NATO and the United States note progress has been made in the militants’ traditional strongholds in the south, they acknowledge gains made remain precarious.

Security has also deteriorated in the north, while many parts of eastern Afghanistan, along the border with Pakistan, remain violent and under militant control. NATO forces often engaging in heavy fighting there.

21 Survey shows consumer confidence slips in December

By ANNE D’INNOCENZIO, AP Retail Writer

1 hr 43 mins ago

Consumer confidence slipped this month as more people worried that the job market is worsening.

The latest survey from Conference Board showed a decline even after reports are showing that people increased their holiday spending at the biggest rate in four years and other indicators suggest the economy is brightening.

The private research group said Tuesday its Consumer Confidence Index fell to 52.5 in December, down from a revised 54.3 in November. Economists were expecting 55.8. The decline reverses two consecutive months of increases. It takes a reading of 90 to indicate a healthy economy, a level not approached since the recession began in 2007.

22 Obama’s economist pick seen as sign of new agenda

By JULIE PACE, Associated Press

1 hr 13 mins ago

HONOLULU – Change is soon coming to the White House economic team, with President Barack Obama set to announce a new top adviser who will have broad influence over the administration’s efforts to jumpstart the struggling economy.

Obama is expected to announce a replacement for departing National Economic Council director Lawrence Summers early in the new year, soon after he returns to Washington from his Hawaiian vacation. The president’s choice is being closely watched for signs of where he wants to take his economic agenda in the second half of his term, and how he looks to bring down the almost double-digit unemployment rate.

Will he tap the business world with a figure such as Roger Altman, an investment banker and Clinton administration alumnus who might carry too much baggage from his association with Wall Street? Will he turn to academia instead, calling on a scholar such Yale President Richard Levin? Or will he go with deeply experienced insiders such as deficit hawk Gene Sperling at the Treasury Department or Jason Furman, the council’s deputy director?

23 Where are the jobs? For many companies, overseas

By PALLAVI GOGOI, AP Business Writer

Tue Dec 28, 7:59 am ET

Corporate profits are up. Stock prices are up. So why isn’t anyone hiring?

Actually, many American companies are – just maybe not in your town. They’re hiring overseas, where sales are surging and the pipeline of orders is fat.

More than half of the 15,000 people that Caterpillar Inc. has hired this year were outside the U.S. UPS is also hiring at a faster clip overseas. For both companies, sales in international markets are growing at least twice as fast as domestically.

24 Baby boomers near 65 with retirements in jeopardy

By DAVE CARPENTER, AP Personal Finance Writer

Mon Dec 27, 9:33 pm ET

CHICAGO – Through a combination of procrastination and bad timing, many baby boomers are facing a personal finance disaster just as they’re hoping to retire. Starting in January, more than 10,000 baby boomers a day will turn 65, a pattern that will continue for the next 19 years.

The boomers, who in their youth revolutionized everything from music to race relations, are set to redefine retirement. But a generation that made its mark in the tumultuous 1960s now faces a crisis as it hits its own mid-60s.

“The situation is extremely serious because baby boomers have not saved very effectively for retirement and are still retiring too early,” says Olivia Mitchell, director of the Boettner Center for Pensions and Retirement Research at the University of Pennsylvania.

25 GOP hopefuls find some issues a hazard early on

By CHARLES BABINGTON, Associated Press

Tue Dec 28, 3:01 am ET

WASHINGTON – This month’s early, under-the-radar campaigning by potential Republican challengers to President Barack Obama is a reminder of something too easily forgotten: Running for president is harder than it looks, and Obama ultimately will stand against a flesh-and-blood nominee certain to make mistakes along the way.

Mitt Romney, Tim Pawlenty and other possible GOP candidates stumbled over health care, taxes and other issues in December, even as Obama coped with the harsh political reality stemming from his party’s “shellacking” in last month’s elections.

No serious contender has officially launched a 2012 campaign. But with the Iowa caucuses less than 13 months away, at least a dozen Republicans are jockeying for position, speaking to groups throughout the country, writing op-ed columns and taking potshots at one another.

26 Mead, drink of vikings, comes out of the Dark Ages

By ALLEN G. BREED, AP National Writer

Tue Dec 28, 1:11 pm ET

PITTSBORO, N.C. – Mead, that drink of viking saga and medieval verse, is making a comeback. But this ain’t your ancestors’ honey wine.

“It’s not just for the Renaissance fair anymore,” says Becky Starr, co-owner of Starrlight Mead, which recently opened in an old woven label mill in this little North Carolina town.

In fact, this most ancient of alcoholic libations hasn’t been this hot since Beowulf slew Grendel’s dam and Geoffrey Chaucer fell in with the Canterbury pilgrims at the Tabard.

27 Farmers, pecan growers say coal plant kills plants

By RAMIT PLUSHNICK-MASTI, Associated Press

Tue Dec 28, 6:48 am ET

BASTROP, Texas – Along a stretch of Highway 21, in Texas’ pastoral Hill Country, is a vegetative wasteland. Trees are barren, or covered in gray, dying foliage and peeling bark. Fallen, dead limbs litter the ground where pecan growers and ranchers have watched trees die slow, agonizing deaths.

Visible above the horizon is what many plant specialists, environmentalists and scientists believe to be the culprit: the Fayette Power Project – a coal-fired power plant for nearly 30 years has operated mostly without equipment designed to decrease emissions of sulfur dioxide, a component of acid rain.

The plant’s operator and the state’s environmental regulator deny sulfur dioxide pollution is to blame for the swaths of plant devastation across Central Texas. But evidence collected from the Appalachian Mountains to New Mexico indicates sulfur dioxide pollution kills vegetation, especially pecan trees. Pecan growers in Albany, Ga., have received millions of dollars in an out-of-court settlement with a power plant whose sulfur dioxide emissions harmed their orchards.

WikiLeaks War Log: Greenwald Takes Two CNN Employees to the Woodshed – Up Date

(2 pm. – promoted by ek hornbeck)

During an interview on CNN, Glenn Greenwald, Salon contributor and Constitutional lawyer, takes to task CNN’s Jessica Yellin and former George W. Bush Homeland Security advisor now a CNN contributor, Fran Townsend, for the misinformation about the release of classified information and the accusations that are being made about Julian Assange. Greenwald makes deeper observations regarding the exchange.

The lack of journalistic neutrality and questioning of government and political figures makes the them “indistinguishable”:

It’s not news that establishment journalists identify with, are merged into, serve as spokespeople for, the political class:  that’s what makes them establishment journalists.

Fran Townsend was everything you would expect from a former Bush apologist and Jessica Yellin may well have been a government plant. Neither was a match for Greenwald.

The transcript is now available thank to an ambitious blogger, hotdog, at FDL

Partners in Crime

Bill Black-

Black: the dominance of unethical banking

Posted by: Jay Kernis – Senior Producer, Parker/Spitzer

December 20th, 2010, 06:17 PM ET

A credit ratings firm couldn’t give a “AAA” rating (the highest possible – the rating that virtually all these toxic derivatives were given) if it looked at a sample of the loans – so they religiously did not kick the tires on the liar’s loans. So we had the farce of “credit rating” agencies whose expertise was supposedly in reviewing credit quality never looking at that credit quality so that they could make enormous fees by giving toxic waste pristine “AAA” ratings.

The investment banks couldn’t sell the financial derivatives loans to others if the investment bankers (whose supposed expertise was evaluating credit risk) were to actually look at credit quality of the underlying liar’s loans. If they looked, they’d document that the loans were overwhelmingly fraudulent. They’d then have three options.

A. They could sell the CDOs to others by calling them wonderful “AAA” investments – while having files proving that they knew this was a lie. This option is the prosecutor’s dream.

B. They could have sued the lenders that sold them the fraudulent liar’s loans. The investment banks typically had a clear contractual right to force the fraudulent loans to buy back the liar’s loans. But there were fatal problems with that option. The lenders that made liar’s loans typically had minimal capital (net worth). If the investment banks had demanded that they repurchase the loans they would have been unable to do so – and the demand would have exposed the investment banks’ bright shining lie that by pooling liar’s loans they could create “AAA” CDOs. Every CDO purchaser from the investment banks would then demand that the investment banks repurchased their CDOs – which would have caused virtually every large U.S. investment bank to fail.

C. They could have gone to the Justice Department and expose the massive fraud that was destroying the American economy and help the FBI investigate the lenders specializing in making liar’s loans, the corrupt appraisers, and the credit rating agencies. But that would have caused the CDO bubble to burst and the investment banks to fail.

That’s why the industry went with the fourth option – “don’t ask; don’t tell.” It’s like the famous fable of the emperor and the fraudulent designer. The designer tells everyone that he has created clothes for the emperor of such beauty that only the most sophisticated people can even see the clothes. The emperor and his cronies all agree that the clothes are glorious. The fraud only collapses when a boy blurts out: “the emperor is naked.” As long as no one engaged in the frauds pointed out that you can’t make a “AAA” rating out of a pool of massively overvalued fraudulent loans the housing bubble could hyper-inflate and the officers of the investment banks and credit rating agencies could become wealthy beyond their dreams.



The federal government has permitted banks to inflate their reported incomes and “net worth” for the purpose of evading the mandatory statutory duty under the Prompt Corrective Action (PCA) law to close deeply insolvent banks. Congress, at the behest of the Chamber of Commerce, the banking trade associations, and Chairman Bernanke, successfully extorted the Financial Accounting Standards Board (FASB) to scam the accounting rules so that the banks could fail to recognize on their accounting reports over a trillion dollars in losses.

When banks understate their losses massively they, by definition, overstate their net worth massively. The PCA’s provisions kick in when net worth falls, so the accounting lies have gutted the PCA. The accounting lies also allow the banks to (once again) report high fictional income when they are experiencing large, real losses. This accounting scam allows the bank executives to collect hundreds of billions of dollars in bonuses. We should end the accounting scam and enforce the PCA.

Congress Threatens to Sow the Seeds of Our Next Banking Crisis

William K. Black, Huffington Post

December 20, 2010 09:29 AM

Representative Paul’s claims epitomize the triumph of ideology over fact: “The market is a great regulator, and we’ve lost understanding and confidence that the market is probably a much stricter regulator.” No, the “market” is not a “great regulator” and the ongoing crisis is only the latest example of that point. Efficient, non-fraudulent markets would be a very good thing. Inefficient, markets with fraudulent participants can be a catastrophically bad thing.

The “market” also does not deal effectively with externalities (and they can be lethal) and with market power. The neoclassical claim that cartels cannot persist and that potential entry solves prevents all serious ills proved false in the real world. Here, however, I will discuss only why control fraud turns “markets” perverse. Accounting control frauds are guaranteed to report high profits in the early years. This is why Akerlof & Romer (1993) agreed with white-collar criminologists that such frauds were a “sure thing.” I’ve explained why the four-part recipe for optimizing fictional accounting income maximizes executive bonuses — and real losses. In the interest of brevity I will merely mention four ways in which accounting control frauds make markets, and “private market discipline” perverse.

  1. The fictional profits fool creditors and shareholders — they are eager to lend to and invest in firms reporting record profits. Rather than discipline accounting control frauds, creditors and shareholders fund their massive growth.
  2. The fictional profits and the large bonuses they drive create a “Gresham’s” dynamic in which bad ethics tends to drive good ethics out of the marketplace. The CFO that fails to emulate the fraud recipe will report far lower profits in the near term and will fear losing his job. More junior executives whose compensation is based on the firm’s reported income have perverse incentives to engage in accounting fraud to ensure that the firm “hits the number” and have reduced incentives to blow the whistle on frauds.
  3. Lenders engaged in accounting control fraud create “echo” epidemics of fraud. They use their powers to hire and fire and create compensation systems to create perverse incentives in other fields: among their employees, “independent” professionals, and agents (e.g., loan brokers).
  4. When several large lenders follow similar fraud strategies they can hyper-inflate financial bubbles.

Anti-consumer control frauds can also turn markets perverse by creating Gresham’s dynamics. Chinese infant formula provides a good example. Dishonest firms drove honest firms from the market — maiming hundreds of thousands of infants’ health.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Bob Herbert The Data and the Reality

I keep hearing from the data zealots that holiday sales were impressive and the outlook for the economy in 2011 is not bad.

Maybe they’ve stumbled onto something in their windowless rooms. Maybe the economy really is gathering steam. But in the rough and tumble of the real world, where families have to feed themselves and pay their bills, there are an awful lot of Americans being left behind.

A continuing national survey of workers who lost their jobs during the Great Recession, conducted by two professors at Rutgers University, offers anything but a rosy view of the economic prospects for ordinary Americans. It paints, instead, a portrait filled with gloom.

Thom Hartman: Cool Our Fever

We live in a democracy and policies represent our collective will. We cannot blame others. If we allow the planet to pass tipping points…it will be hard to explain our role to our children. We cannot claim…that “we didn’t know.”

– Jim Hansen, Director, NASA Goddard Institute for Space Studies1

But during the past decade, as the train rolls along eastward from Frankfurt, I’ve seen a dramatic change in the scenery and the landscape. First there were just a few: purplish-blue reflections, almost like deep, still water, covering large parts of the south-facing roofs as I looked north out the window of the train. Solar panels.

Then, over the next few years, the purplish-blue chunks began to spread all over, so now when I travel that route it seems like about a third-and in many towns even more-of all the roofs are covered with photovoltaic solar panels.

Eugene Robinson Danger ahead for the GOP

It’s been not quite two months since Republicans won a sweeping midterm victory, and already they seem divided, embattled and – not to mince words – freaked out. For good reason, I might add.

Sen. Lindsey Graham captured the mood with his mordant assessment of the lame-duck Congress: “Harry Reid has eaten our lunch.” Graham’s complaint was that the GOP acquiesced to a host of Democratic initiatives – giving President Obama a better-than-expected deal on taxes, eliminating “don’t ask, don’t tell,” ratifying the New START treaty – rather than wait for the new, more conservative Congress to arrive.

It was a “capitulation . . . of dramatic proportions,” Graham said in a radio interview last week. “I can understand the Democrats being afraid of the new Republicans. I can’t understand Republicans being afraid of the new Republicans.”

Oh, but there’s reason to be very afraid.

Cenk Uygur: GOP Not Allowed to Talk About the “Will of the Public”

John Boehner can’t stop talking about the “will of the public” these days. Now that the Republicans have won the House, he keeps saying over and over that the Democrats must go along with Republican plans from now on because they have to listen to the… will of the public.

Well, here’s what I don’t remember — the Republicans giving a damn about the will of the public after the 2008 elections. The American people spoke as loudly and clearly as I have ever seen in any election in my lifetime. They gave the House and the Senate by overwhelming margins to the Democrats. They also gave the Democrats the White House, and along with it, complete control of Washington. And did the Republicans listen to the will of the public, then? No, they blocked that will at every turn.

Richard (RJ) Escow: Samuelson on Social Security: An Artifact From a Strange Year

Historians of the future will look back on this year as a turning point in the drive to dismantle a popular, self-funded program by convincing people that it’s a “big government” initiative that “costs too much.” Ours will be remembered as a time when superstition ruled the land, just as it did in ancient Europe – except that today we make sacrifices on the altar of tax magic, not black magic.

Whenever that day arrives, Robert J. Samuelson’s latest Washington Post editorial will be a useful artifact for students of this demon-haunted time.

Words Matter

Samuelson’s been on a thirty-year quest to destroy Social Security – a program which he clearly despises on a visceral as well as an ideological level – and 2011 may be the year he sees his dream come true. But, like any true believer, he’s never satisfied.

Johann Hari David Cameron’s Anti-Government, Tea Party Agenda Is Built on Lies

The year 2010 began with David Cameron looking into a TV camera and pledging to the British people: “If any cabinet minister comes to me and says ‘Here are my plans’ and they involve frontline reductions, they’ll be sent straight back to their department to go away and think again.” The year ended with him as British prime minister pushing through the most severe cuts to British frontline services — care for the sick and disabled, education, police — in living memory. He promised to be nothing like the Tea Party before the election, and then immediately unleashed a Tea Party wet dream.

It is now clear that David Cameron systematically lied to the British electorate. He said it was “sick” and “frankly disgusting” to say he would end the National Health Service guarantee for cancer patients to be seen by a doctor within two weeks — and then scrapped NHS guarantees, so that the number of patients waiting months before their cancer is detected has doubled. He said hospitals were “my No 1 priority” to be “totally protected” — and then slashed 20 percent from the budget of specialist hospitals across the country. He said he would “protect the poor” from cuts — and then slashed the income of each poor family by £1,000 ($1,500) and began forcing hundreds of thousands from their homes.

More on Title Fraud

I told you we would be revisiting L. Randall Wray’s third piece on Title Fraud, well he’s written a new piece for Bezinga that kind of concisely summarizes the problem-

Time to Audit the Remic Trusts

By L. Randall Wray, Benzinga Columnist

December 23, 2010 12:43 PM

We now know that the “mortgage backed” securities were not backed by mortgages. In reality they are unsecured debt. The “pooling and servicing agreements” (PSAs) that govern securitization require that the mortgage documents (including the wet ink notes as well as a clean chain of title) are transferred in a timely manner to the trustees. This was rarely and perhaps never done, because it was counter to the recommendation made by MERS (Mortgage Electronic Registry System). Instead, notes were either destroyed or held by the servicers to speed the foreclosures that were always envisioned as the end result of the mortgage origination process. Not only does this practice render the securities fraudulent but it also violates the federal tax laws that govern the REMICs-meaning back taxes are due.

But worse than all that, by breaking the chain of title and by destruction of documents, MERS and the servicers have jeopardized the entire system of property rights. Most, perhaps all, foreclosures have been fraudulent, which means that resales of the homes are also frauds. It goes without saying that the original mortgages were frauds from the very beginning-to complete the transformation to the ownership society it was necessary to ensure that by construction, default was inevitable. Either the homeowner would be unable to pay, or the servicer would “lose” the payments. By obscuring the chain of title, it would be impossible for the debtors or the courts to sort things out. Separating home owners from their property was necessary to ensure that we can create Bush’s ownership society. It is the modern form of the feudal foreclosures and seizures of peasant lands that concentrated ownership in the hands of agricultural capitalists-creating the first ownership society.

The scale of the problem is huge. Some estimate that as many as $6.4 trillion worth of home mortgages (33 million of them) are frauds, with destroyed or doctored documents. Probably all of the $1.4 trillion worth of private label residential mortgage “backed” securities violate the PSAs-so are actually unsecured debt. Three state supreme courts have already ruled that MERS cannot be the owner of mortgages, hence, has no standing in foreclosures. MERS contaminated 65 million mortgages-decoupling the mortgages from the notes and destroying the chain of title. A consortium of investors (including PIMCO, Black Rock, and Fannie and Freddie) that owns $600 billion of the private label securities are suing the banks to take them back. One investor action alone against Bank of America concerns $47 billion in fraudulent mortgages-enough to put a serious dent in its purported net worth of $230 billion (which is probably a vast overstatement resulting from cooking the books). A suit in California seeks $60-$120 billion in lost recording fees alone. All 50 states are investigating the servicers for fraud. The top five servicers (Bank of America, Wells Fargo, JPMorgan Chase, Citigroup, GMAC-Ally) have 60% of the business and include the top four banks that account for 40% of the banking business.

REMICs

Real Estate Mortgage Investment Conduits, or “REMICs,” (sometimes also called Collateralized mortgage obligations) are a type of special purpose vehicle used for the pooling of mortgage loans and issuance of mortgage-backed securities. They were introduced in 1987 and are defined under the United States Internal Revenue Code (Tax Reform Act of 1986), and are the typical vehicle of choice for the securitization of residential mortgages in the US.

More Wray-

Anatomy of Mortgage Fraud, Part III: MERS’S Role in Facilitating the Mother of All Frauds

L. Randall Wray, Huffington Post

Posted: December 16, 2010 09:29 AM

Enter MERS — another link in the food chain — created by the banks in 1997 in preparation for the boom and bust. MERS was set up to be a foreclosure mill. It would break the centuries-old custom that protected property rights by requiring every sale of property to be publicly recorded, and requiring that any creditor claiming a right to foreclose to demonstrate clear title, with an endorsed note in the creditor’s name and a record at the county office showing transfer of the property.

The banksters did not want to go through all that paperwork, and needed to subvert the transparency that would shine light on their crimes. Hence, they set up a fraudulent shell corporation that claimed to be the mortgagee; while the original sale would be recorded at the county office, subsequent sales and purchases of the mortgage would be recorded only by an “electronic handshake” between two “members” of MERS. Even that record was considered by the banksters to be purely voluntary — MERS did not require members to actually record transactions. If they found it more convenient to conceal the transfers, that was permitted.



MERS deliberately undermined the legality of the loans and the records. Homeowners could no longer search the public records to find out who actually held their mortgage — the record would show MERS as owner, but MERS was a shell corporation with no real employees. It was not a servicer, so the homeowner could not make mortgage payments to the purported owner. As a result, checks were sent to the wrong servicers; servicers credited the wrong accounts; servicers claimed delinquencies on homeowners who never missed a payment, and piled late fees and delinquencies on the wrong borrowers; sheriffs were sent to break down the doors of the wrong houses, and threw belongings out on the street in front of homes on which there was no mortgage at all. MERS purposely created the mess, at the behest of banksters who do not want mere legal technicalities to get in the way of stealing homes. The undermining of the public records was not a mistake — it was MERS’s business model, created by the member banks.

And MERS helped banksters to defraud securities holders. Banks not only separated the mortgages from the notes, but they even destroyed the notes as they entered the mortgages into MERS’s electronic data base. MERS told servicers that it is “customary” practice to retain notes, not to endorse them over to REMIC trustees as required both by federal tax law and by the PSAs that govern the trusts. This made the securities a “nullity” — as the Supreme Court ruled over a hundred years ago — because a mortgage without a note is unenforceable in foreclosure. At best, the securities are unsecured debt, with no real property behind them.

In any case, the mortgages put into the trusts did not meet the representations made to investors — so even if the notes had been properly endorsed over to the trusts, the securities could be turned back to the banks. By creating a completely fraudulent electronic registry system — in which data would be entered only if banks found it convenient to do so, and in which data could be modified at any time by any member of MERS — MERS made it easy to conceal the securities frauds. Destruction or forgery of the paperwork was absolutely necessary to cover the trail of fraud from origination of the mortgage to securitization and finally to the inevitable foreclosure. Again, destruction of documents was not a mistake. It was the business model.

L. Randall Wray-

On This Day in History: December 28

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

December 28 is the 362nd day of the year (363rd in leap years) in the Gregorian calendar. There are three days remaining until the end of the year.

On this day in 1895, the first commercial movie is screened in Paris.

On this day in 1895, the world’s first commercial movie screening takes place at the Grand Cafe in Paris. The film was made by Louis and Auguste Lumiere, two French brothers who developed a camera-projector called the Cinematographe. The Lumiere brothers unveiled their invention to the public in March 1895 with a brief film showing workers leaving the Lumiere factory. On December 28, the entrepreneurial siblings screened a series of short scenes from everyday French life and charged admission for the first time.

Movie technology has its roots in the early 1830s, when Joseph Plateau of Belgium and Simon Stampfer of Austria simultaneously developed a device called the phenakistoscope, which incorporated a spinning disc with slots through which a series of drawings could be viewed, creating the effect of a single moving image. The phenakistoscope, considered the precursor of modern motion pictures, was followed by decades of advances and in 1890, Thomas Edison and his assistant William Dickson developed the first motion-picture camera, called the Kinetograph. The next year, 1891, Edison invented the Kinetoscope, a machine with a peephole viewer that allowed one person to watch a strip of film as it moved past a light.

In 1894, Antoine Lumiere, the father of Auguste (1862-1954) and Louis (1864-1948), saw a demonstration of Edison’s Kinetoscope. The elder Lumiere was impressed, but reportedly told his sons, who ran a successful photographic plate factory in Lyon, France, that they could come up with something better. Louis Lumiere’s Cinematographe, which was patented in 1895, was a combination movie camera and projector that could display moving images on a screen for an audience. The Cinematographe was also smaller, lighter and used less film than Edison’s technology

The Lumière brothers, Auguste Marie Louis Nicolas (19 October 1862, Besancon, France – 10 April 1954, Lyon) and Louis Jean (5 October 1864, Besancon, France – 6 June 1948, Bandol), were among the earliest filmmakers in history. (Appropriately, “lumière” translates as “light” in English.)

(In) 1862 and 1864, and moved to Lyon in 1870, where both attended La Martiniere, the largest technical school in Lyon. Their father, Claude-Antoine Lumière (1840-1911), ran a photographic firm and both brothers worked for him: Louis as a physicist and Auguste as a manager. Louis had made some improvements to the still-photograph process, the most notable being the dry-plate process, which was a major step towards moving images.

It was not until their father retired in 1892 that the brothers began to create moving pictures. They patented a number of significant processes leading up to their film camera – most notably film perforations (originally implemented by Emile Reynaud) as a means of advancing the film through the camera and projector. The cinèmatographe itself was patented on 13 February 1895 and the first footage ever to be recorded using it was recorded on March 19, 1895.

Their first public screening of films at which admission was charged was held on December 28, 1895, at Salon Indien du Grand Cafè in Paris. This history-making presentation featured ten short films, including their first film, Sortie des Usines Lumière a Lyon (Workers Leaving the Lumière Factory). Each film is 17 meters long, which, when hand cranked through a projector, runs approximately 50 seconds.

 1065 – Westminster Abbey is consecrated.

1308 – The reign of Emperor Hanazono, emperor of Japan, begins.

1612 – Galileo Galilei becomes the first astronomer to observe the planet Neptune, although he mistakenly catalogued it as a fixed star.

1768 – King Taksin’s coronation achieved through conquest as a king of Thailand and established Thonburi as a capital.

1795 – Construction of Yonge Street, formerly recognized as the longest street in the world, begins in York, Upper Canada (present-day Toronto, Ontario).

1832 – John C. Calhoun becomes the first Vice President of the United States to resign.

1835 – Osceola leads his Seminole warriors in Florida into the Second Seminole War against the United States Army.

1836 – South Australia and Adelaide are founded.

1836 – Spain recognizes the independence of Mexico.

1846 – Iowa is admitted as the 29th U.S. state.

1867 – United States claims Midway Atoll, the first territory annexed outside Continental limits.

1879 – The Tay Bridge Disaster: The central part of the Tay Rail Bridge in Dundee, Scotland collapses as a train passes over it, killing 75.

1885 – Indian National Congress a political party of India is founded in Bombay, British India.

1895 – The Lumiere brothers perform for their first paying audience at the Grand Cafe in Boulevard des Capucines, marking the debut of the cinema.

1908 – A magnitude 7.2 earthquake rocks Messina, Sicily killing over 75,000.

1912 – The first municipally owned streetcars take to the streets in San Francisco, California.

1918 – Constance Markiewicz while detained in Holloway prison, became the first woman to be elected MP to the British House of Commons.

1935 – Pravda publishes a letter by Pavel Postyshev, who revives New Year tree tradition in the Soviet Union.

1943 – World War II – After eight days of brutal house-to-house fighting, the battle of Ortona concludes with the victory of the1st Canadian Infantry Division over the German 1st Parachute Division and the capture of the Italian town of Ortona.

1944 – Maurice Richard becomes the first player to score 8 points in one game of NHL ice hockey.

1945 – The United States Congress officially recognizes the Pledge of Allegiance.

1948 – The DC-3 airliner NC16002 disappears 50 miles south of Miami, Florida.

1950 – The Peak District becomes the United Kingdom’s first National Park.

1958 – “Greatest Game Ever Played” – Baltimore Colts defeat the New York Giants in the first ever National Football League sudden death overtime game at New York’s Yankee Stadium.

1973 – The Endangered Species Act is passed in the United States.

1974 – Senegalese marxist group Reenu-Rew founds the political movement And-Jef at a clandestine congress.

1978 – With the crew investigating a problem with the landing gear, United Airlines Flight 173 runs out of fuel and crashes in Portland, Oregon, killing 10. As a result, United Airlines instituted the industry’s first crew resource management program.

1989 – A magnitude 5.6 earthquake hits Newcastle, New South Wales, Australia, killing 13 people.

2000 – U.S. retail giant Montgomery Ward announces it is going out of business after 128 years.

2009 – 43 people die in a suicide bombing in Karachi, Pakistan, where Shia Muslims were observing the Day of Ashura.

Holidays and observances

   * Christian Feast Day:

         o Abel (Coptic Church)

         o Feast of the Holy Innocents or Childermas. In Spain and Latin American countries the festival is celebrated with pranks (inocentadas), similar to April Fools’ Day. (Roman Catholic Church, Church of England, Lutheran Church)

   * King Taksin Memorial Day (Thailand)

   * Proclamation Day, celebration started on the day following Christmas. (South Australia)

   * The fourth day of Christmas. (Western Christianity)

Six In The Morning

Yes, Republicans Are And Always Have Been Hypocritical      



Earmarks Are Pork Barrel Spending So Let Us Pursue Them With Gutso

No one was more critical than Representative Mark Steven Kirk when President Obama and the Democratic majority in the Congress sought passage last year of a $787 billion spending bill intended to stimulate the economy. And during his campaign for the Illinois Senate seat once held by Mr. Obama, Mr. Kirk, a Republican, boasted of his vote against “Speaker Pelosi’s trillion-dollar stimulus plan.”

Though Mr. Kirk and other Republicans thundered against pork-barrel spending and lawmakers’ practice of designating money for special projects through earmarks, they have not shied from using a less-well-known process called lettermarking to try to direct money to projects in their home districts.

Mr. Kirk, for example, sent a letter to the Department of Education dated Sept. 10, 2009, asking it to release money “needed to support students and educational programs” in a local school district. The letter was obtained under the Freedom of Information Act by the group Citizens Against Government Waste, which shared it with The New York Times.

We Really Don’t Want You  Using Our drugs To Execute Prisoners

 

Especially On Those With Mental Health Issues  

British diplomats have complained to the US government about a drug imported from the UK being used in the execution of death row prisoners.

Officials from the British embassy in Washington said they were “dismayed” and “very concerned” that UK-sourced sodium thiopental, a barbiturate injected to induce unconsciousness, would be used in future executions. They have also objected to its use in the execution of Jeffrey Landrigan, a death row prisoner who reportedly suffered from mental health problems.

In a letter sent to the Department of State, a copy of which has been obtained by The Independent, the British officials also warn that it would be illegal for the drug to be used again – such as in the planned execution of Edmund Zagorski in Tennessee – because the imported compound has not been officially approved for use by the Food and Drug Administration (FDA).

China Tells The Pope To Shut It



What Is China’s Government Afraid Of? People Thinking For Themselves Or Just Jealous    

WHILE THERE has been no official response from the communist government to Pope Benedict XVI’s criticism of China in his Christmas message for limiting freedom of religion, a state newspaper came out yesterday with a strongly worded editorial warning the Vatican to stop meddling in Beijing’s business.

“The pontiff sounded more like a western politician than a religious leader . . . before the pope attacks China’s internal affairs, he may want to rethink the Vatican’s so-called role as a protector of religious freedom,” said the Global Times , the English-language edition of the People’s Daily.

Imprisoned Because He Dared To Provide Healthcare to The Poor



Unlike His Government: He Remembered First Do No Harm  

HUNDREDS OF human rights activists demonstrated in India’s capital, New Delhi, yesterday protesting against the harsh life sentence handed down to a highly regarded paediatrician and human rights activist on charges of aiding Maoist rebels.

For decades Binayak Sen (60) worked among tribal communities in India’s central Chhattisgarh province to rally depressed, impoverished and neglected locals to fight for their rights.

He was convicted of waging war against the state by a local court in the state capital Raipur on Christmas Eve.

We The People Really Like Our Ex-Communist Dictator    

 

We Want More Authoritarian Rule  

Venezuelan President Hugo Chavez was one of the first to congratulate “the great European leader” Alexander Lukashenko on his re-election, calling the Belarusian leader’s country a “bastion of dignity and prosperity in the middle of a Europe agitated by the insatiable greed of transnational capital.”

In his congratulatory cable, Iranian President Mahmoud Ahmadinejad referred to “yet another golden chapter of the brilliant history of the great people of Belarus.”

Russian President Dmitry Medvedev also offered his congratulations, though with a touch of a guilty conscience. The election in Minsk, he said, was an “internal affair,” characterizing Belarus as one of the countries that is “closest to Russia, regardless of its political leadership.”

If Not For The Massive Ego Of This Politician There Would Not Be A Crisis  



Power Is More Important Than A Stable Country

Fears of renewedfighting in Cote d’Ivoire have grown, following a threat from West African neighbours to force out Laurent Gbagbo, the incumbent leader, if he does not soon heed international calls to step down from power.

West African leaders are giving Gbagbo an ultimatum this week to step aside, though he has shown no interest in doing so since the demand was made on Friday.

While doubts exist about whether the region could carry out such a military operation, Alassane Ouattara’s camp remains confident that help is coming soon.

“It’s not a bluff,” one senior Ouattara adviser said on Monday on condition of anonymity. “The soldiers are coming much faster than anyone thinks.”

Prime Time

Charlie and the Chocolate Factory.  Glenn Gould on American Masters (he was Canadian dudes), other than that not a lot of premiers.  No Keith this week (nor Jon or Stephen).  No Lawrence! (I never thought I’d be glad for Prison Porn, but some things are worse).  Adult Swim gets an extra hour at 9 pm which they are using for King of the Hill and replacing it at 10 pm with American Dad.

Sure’n I hope that your considerin’ the future Mr. Eastwood.

I think about it all the time.

Later-

Dave in repeats, 12/7.  Alton has a hour long special, Down & Out in Paradise.  Conan in repeats from 11/9

Marty, the future isn’t written. It can be changed, you know that. Anyone can make their future whatever they want it to be. I can’t let this one little photograph determine my entire destiny. I have to live my life according to what I believe is right in my heart.

Evening Edition

Evening Edition is an Open Thread

From Yahoo News Top Stories

1 Russia finds Khodorkovsky guilty in second trial

by Olga Rotenberg, AFP

1 hr 50 mins ago

MOSCOW (AFP) – A Moscow court on Monday found tycoon Mikhail Khodorkovsky guilty in his second fraud trial, a judgement seen as a pivotal moment in Russia’s post-Soviet history that rang alarm bells in the West.

Khodorkovsky and co-accused Platon Lebedev were convicted of embezzlement and money laundering, said judge Viktor Danilkin, dashing the hopes of Russian liberals that the trial would show a new approach from Russian courts.

In a stinging reaction from some Western powers, Germany’s foreign minister said the verdict was a step backwards for Russia while US Secretary of State Hillary Clinton said it would have a negative effect on Russia’s reputation.

2 Bomb at Rome embassy likened to anarchist attack

by Dario Thuburn, AFP

Mon Dec 27, 12:17 pm ET

ROME (AFP) – Italian investigators on Monday said an attempted parcel bombing at the Greek embassy in Rome bore the hallmarks of a similar attack by an anarchist group at the Chilean and Swiss missions last week.

The package was “similar to those that exploded last week in the Chilean and Swiss embassies,” Salvatore Cagnazzo, a police spokesman, told AFP.

“The mail worker at the embassy opened it but it didn’t go off,” he said, adding that the package was then defused by bomb disposal experts.

3 Ivory Coast’s Gbagbo toughs it out as strike falls flat

by Dave Clark, AFP

2 hrs 8 mins ago

ABIDJAN (AFP) – Ivory Coast strongman Laurent Gbagbo’s battle to cling to power suffered a blow Monday when his Paris embassy fell to his rival Alassane Ouattara, but a threatened general strike was slow to take hold.

Ouattara, who is recognised as president by the international community but is besieged in his Abidjan hotel and protected by UN peacekeepers, had urged workers to down tools across the fragile West African state.

At first, the sprawling commercial capital Abidjan, one of West Africa’s biggest ports and the key to the country, was as busy as ever, its streets snarled with traffic jams and its street markets packed with shoppers.

4 PepsiCo’s Russia deal gets initial go-ahead

by Dmitry Zaks, AFP

Mon Dec 27, 10:40 am ET

MOSCOW (AFP) – PepsiCo’s biggest acquisition outside the United States made progress on Monday when the head of Russia’s anti-monopoly service said he looked favourably on the US giant’s takeover of a major local firm.

PepsiCo — which was the first US consumer goods company to break into the Soviet market in 1973 — on December 2 said that it had agreed to pay 5.4 billion dollars (4.1 billion euros) for Russia’s largest dairy and baby food producer Wimm-Bill-Dann.

The takeover would be one of the biggest outside the Russian energy sector and enable PepsiCo to become not only the country’s largest food-and-beverage business but also expand further into eastern Europe and the former Soviet states.

5 Iraq oil production tops 2.6m barrels a day

by W.G. Dunlop, AFP

Mon Dec 27, 11:31 am ET

BAGHDAD (AFP) – Iraq’s oil output has risen to more than 2.6 million barrels a day, its highest level for two decades, Oil Minister Abdulkarim al-Luaybi said Monday after a ceremony to mark his official takeover of the ministry.

“Today, our production is over 2.6 million barrels per day,” Luaybi told reporters after the ceremony. “This figure has not been reached for more than 20 years.”

Luaybi, who was previously a deputy oil minister, took over from Hussein al-Shahristani, who oversaw the signing of billions of dollars in oil deals that paved the way for global energy majors to return to Iraq more than 30 years after Saddam Hussein kicked them out.

6 India’s city-dwellers get angrier as society changes

by Phil Hazlewood, AFP

Sun Dec 26, 4:41 pm ET

MUMBAI (AFP) – With its religious retreats for meditation and yoga, India has long been sought out by Western visitors eager to escape the rat race and return home better prepared to face life’s challenges.

Big cities like New Delhi and Mumbai, however, are becoming anything but havens of spiritual calm and inner peace for ordinary Indians, as the country’s economy grows and more people leave the rural heartlands in search of prosperity.

Anger has become a feature of daily life, with concerns raised about the harmful side-effects of modern, urban living on the nation’s health and well-being.

7 Chinese web users sceptical on inflation-busting moves

by Susan Stumme, AFP

Mon Dec 27, 2:34 am ET

BEIJING (AFP) – Chinese web users on Monday expressed their anxiety about soaring consumer prices, despite a weekend interest rate hike and reassurances on live radio from the premier that inflation can be curbed.

On Saturday, the central bank raised interest rates for the second time in less than three months as authorities ramp up efforts to curb rampant bank lending, rein in property prices and tame soaring inflation.

In a sign of Beijing’s awareness of mounting public concerns, Premier Wen Jiabao addressed the nation via live radio broadcast on Sunday, acknowledging the hardships for everyday citizens but insisting prices could be contained.

8 Spanish auto sector wraps up bleak year

by Katell Abiven, AFP

Sun Dec 26, 4:35 pm ET

MADRID (AFP) – Spain’s auto sector, a key source of jobs, is wrapping up a disastrous year due to a slump in demand from the rest of Europe and the end of a government trade-in bonus scheme at home.

Sales of new cars in the country plunged 25.5 percent in November over the same period last year to 64,515 units, the fifth monthly decline in a row, according to figures from manufacturers’ association Anfac.

While total sales in the first 11 months of the year are up 5.9 percent to 913,073 units, this is due to strong sales during the beginning of the year before the government pulled the plug on the subsidies programme in June.

9 H&R Block’s refund loans hit regulatory hurdle

By Archana Shankar, Reuters

2 hrs 49 mins ago

BANGALORE (Reuters) – H&R Block Inc, the largest U.S. tax preparer, said it will not be able to help customers borrow money against their tax refunds in the coming months, as the bank that was supposed to provide the loans is under a regulatory directive not to.

An inability to offer refund anticipation loans is a big blow to H&R Block, which relies on such loans to attract clients.

H&R Block’s shares fell as much as 10 percent in morning trade on Monday. The stock has fallen 39 percent this year, following regulatory uncertainty concerning refund loans.

10 Strike call fails to hit main Ivory Coast city, ports

By Ange Aboa and Bate Felix, Reuters

2 hrs 55 mins ago

ABIDJAN (Reuters) – Most workers in Ivory Coast’s main city of Abidjan ignored a call by presidential claimant Alassane Ouattara for a strike on Monday to force Laurent Gbagbo out of power, saying they must work in order to survive.

Operations at the ports of Abidjan and San Pedro, through which much of Ivory Coast’s cocoa exports are shipped, were normal on Monday morning. Abidjan’s downtown Plateaux business district was bustling, with shops and offices open.

In the rebel-controlled northern city of Bouake, a bastion of support for Ouattara, some shop owners heeded the strike though banks and public transport were functioning.

11 Twin suicide bombings kill 17 in Iraq’s Ramadi

By Fadhel al-Badrani, Reuters

Mon Dec 27, 1:39 pm ET

RAMADI (Reuters) – Twin suicide bombings rocked a government compound in Iraq’s western city of Ramadi on Monday, killing 17 people, a deputy interior minister said.

It was the second attack this month on the compound, which houses the provincial council ands the police headquarters for Anbar province, and the third bombing there in the past year.

“The death toll is 17 killed and between 50 and 60 wounded,” Lieutenant General Hussein Kamal, a deputy interior minister, told Reuters.

12 [NATO disputes Afghan authorities over deadly raid NATO disputes Afghan authorities over deadly raid]

By Hamid Shalizi, Reuters

Mon Dec 27, 8:23 am ET

KABUL (Reuters) – The NATO-led force in Afghanistan disputed Monday an Afghan government accusation that foreign troops had violated a security deal by conducting a night raid in Kabul in which two guards were killed.

Under the 2008 deal, Afghan authorities have to approve and lead all security operations in the capital. But the Ministry of Interior (MOI) has said that foreign forces ignored the security rules and it was unaware of Friday’s operation.

Raids by foreign forces, deeply unpopular among ordinary Afghans, are a source of friction between the NATO-led International Security Assistance Force (ISAF) and Afghan President Hamid Karzai’s government.

13 Analysis: As China raises rates, don’t forget the yuan

By Kevin Yao and Simon Rabinovitch, Reuters

Mon Dec 27, 8:51 am ET

BEIJING (Reuters) – China was Grinch-like in raising interest rates on Christmas Day, but in fact investors have good reasons to be grateful.

The government provided much-needed reassurance that it was determined to rein in price pressures — and a salutary reminder that more yuan appreciation than the market expects could be in the offing.

The key take-away from the rate increase, China’s second in just over two months, is that Beijing is softly, softly pulling every tightening lever within its reach.

14 Baby boomers near 65 with retirements in jeopardy

By DAVE CARPENTER, AP Personal Finance Writer

37 mins ago

CHICAGO – Through a combination of procrastination and bad timing, many baby boomers are facing a personal finance disaster just as they’re hoping to retire. Starting in January, more than 10,000 baby boomers a day will turn 65, a pattern that will continue for the next 19 years.

The boomers, who in their youth revolutionized everything from music to race relations, are set to redefine retirement. But a generation that made its mark in the tumultuous 1960s now faces a crisis as it hits its own mid-60s.

“The situation is extremely serious because baby boomers have not saved very effectively for retirement and are still retiring too early,” says Olivia Mitchell, director of the Boettner Center for Pensions and Retirement Research at the University of Pennsylvania.

15 GOP hopefuls find some issues a hazard early on

By CHARLES BABINGTON, Associated Press

38 mins ago

WASHINGTON – This month’s early, under-the-radar campaigning by potential Republican challengers to President Barack Obama is a reminder of something too easily forgotten: Running for president is harder than it looks, and Obama ultimately will stand against a flesh-and-blood nominee certain to make mistakes along the way.

Mitt Romney, Tim Pawlenty and other possible GOP candidates stumbled over health care, taxes and other issues in December, even as Obama coped with the harsh political reality stemming from his party’s “shellacking” in last month’s elections.

No serious contender has officially launched a 2012 campaign. But with the Iowa caucuses less than 13 months away, at least a dozen Republicans are jockeying for position, speaking to groups throughout the country, writing op-ed columns and taking potshots at one another.

16 Twin suicide blasts kill 9 in western Iraq

By HAMID AHMED, Associated Press

40 mins ago

BAGHDAD – Two suicide bombers blew themselves up Monday front of a government office in Iraq’s western Anbar province, killing nine people including family members of security officials who were killed in another bombing at the same place less than a month ago, security officials said.

Insurgents frequently go after Iraqi government targets in an effort to destabilize the U.S.-backed Iraqi authorities, as American troops prepare to leave by the end of next year.

The Anbar provincial headquarters has been a particularly favorite target. It has been attacked four times in the span of a year, including an explosion in which the governor lost a leg.

17 Russian tycoon Khodorkovsky again found guilty

By LYNN BERRY and NATALIYA VASILYEVA, Associated Press

2 mins ago

MOSCOW – To Russian prosecutors, imprisoned oil tycoon Mikhail Khodorkovsky is guilty of more crimes: They say he stole nearly $30 billion in oil from his own company and laundered the proceeds. To others, he is a dissident who stood up to the powerful Vladimir Putin.

Whatever he is, Khodorkovsky, once the country’s richest man, could be spending more time in jail. And many here point to one man: Putin.

Khodorkovsky’s conviction on Monday of stealing from his company, Yukos, demonstrated that little has changed under Putin’s successor, President Dmitry Medvedev, despite his promises to strengthen the rule of law and make courts an independent branch of government.

18 Experiments test if implant can block sleep apnea

By LAURAN NEERGAARD, AP Medical Writer

3 mins ago

WASHINGTON – Loud snoring may do more than irritate your spouse: It can signal sleep apnea, depriving you of enough zzzz’s to trigger a car crash, even a heart attack.

Now scientists are beginning to test if an implanted pacemaker-like device might help certain sufferers, keeping their airways open by zapping the tongue during sleep.

Wait, what does your tongue have to do with a good night’s sleep?

19 SC’s governor mum on plans, affair as tenure ends

By JIM DAVENPORT, Associated Press

1 hr 43 mins ago

BEAUFORT, S.C. – Things are looking up for Gov. Mark Sanford as he prepares to leave office on his own terms more than a year after the international affair that derailed his once-promising political career.

He will be replaced by his chosen successor. Tea party supporters across the country have taken up his messages about fiscal responsibility. Friends say his mid-life crisis is over.

Still, the two-term governor says he’s not sure what’s next and talks vaguely about writing a book or going back into business.

20 Ivorians’ reaction to strike highlights divisions

By MARCO CHOWN OVED, Associated Press

Mon Dec 27, 1:41 pm ET

ABIDJAN, Ivory Coast – Ivorians unevenly followed a general strike aimed at pressuring their incumbent leader Laurent Gbagbo to step down, largely sticking to the same fracture lines that marked the West African nation’s civil war eight years ago.

Supporters of Alassane Ouattara, widely recognized as the winner of a Nov. 28 runoff vote against Gbagbo, called for the strike to begin Monday. It turned Bouake, the rebel capital, into a ghost town, but much of Abidjan, Ivory Coast’s largest city, did not follow the strike and Gagnoa, a Gbagbo stronghold, was open for business.

The West African regional bloc ECOWAS has given Gbagbo an ultimatum to step aside, and suggested it would use force if necessary to oust him. Gbagbo has shown no hint that he is close to stepping down, however, and doubts exist about whether the bloc could carry out such a military operation.

21 For Japan, 2010 was a year to forget

By MALCOLM FOSTER, Associated Press

Mon Dec 27, 9:44 am ET

TOKYO – Japan has been overtaken by China as the world’s No. 2 economy. Its flagship company, Toyota, recalled more than 10 million vehicles in an embarrassing safety crisis. Its fourth prime minister resigned in three years, and the government remains unable to jolt an economy entering its third decade of stagnation.

For once-confident Japan, 2010 may well mark a symbolic milestone in its slide from economic giant to what experts see as its likely destiny: a second-tier power with some standout companies but limited global influence.

As Japanese drink up at year-end parties known as “bonen-kai,” or “forget-the-year gatherings,” this is one many will be happy to forget.

22 Miller won’t block Murkowski Senate certification

By BECKY BOHRER, Associated Press

Mon Dec 27, 10:13 am ET

JUNEAU, Alaska – Republican Joe Miller said he won’t stand in the way of incumbent Sen. Lisa Murkowski being certified the winner of Alaska’s U.S. Senate race, but he vowed to continue his legal fight over the state’s handling of the vote count.

Miller’s announcement late Sunday paves the way for Murkowski – a write-in candidate after losing the Republican nomination to Miller – to eventually be declared winner of the race.

Election officials determined Murkowski had the most votes in the November election but were barred from certifying a victory by a federal judge, who issued a stay to give the courts time to rule on Miller’s claims the vote count was mishandled.

23 Suicide bomber kills 3 in south Afghanistan

By TAREK EL-TABLAWY, Associated Press

Mon Dec 27, 9:44 am ET

KABUL, Afghanistan – A suicide car bombing in the southern Taliban stronghold of Kandahar killed three people and wounded 26 others, mostly police, officials said Monday, in an attack spotlighting instability in Afghanistan as the NATO-led fight against insurgents there approaches the start of its 10th year.

The bomber struck in the crowded center of the city, near a police compound and a branch of Kabul Bank, and witnesses described a chaotic scene after the dust and smoke cleared.

“I was sitting near the gate when this explosion occurred. We fell to the ground and we couldn’t see anything for five minutes” due to the dust and smoke caused by the blast, said Noor Mohammad, a policeman who was guarding the bank, adding that police and security guards from nearby buildings and compounds took the casualties to a hospital.

24 Package bomb found at Greek embassy in Italy

By NICOLE WINFIELD, Associated Press

Mon Dec 27, 9:43 am ET

ROME – Bomb squad experts defused a package bomb that was delivered to the Greek Embassy in Rome on Monday, four days after similar mail bombs exploded at two other embassies, wounding two people.

Carabinieri Col. Maurizio Mezzavilla said the bomb was similar to the ones that exploded Thursday at the Chilean and Swiss embassies. An anarchist group with reported ties to Greek anarchists claimed responsibility for those blasts.

“Having been done in the same way, we can just hypothesize that there is the same hand behind it,” Greek Ambassador Michalis Kambanis said at the embassy, although he added that he knew of no specific claim of responsibility.

25 Cheap concert seats due after cruel summer of ’10

By RYAN NAKASHIMA, AP Business Writer

Mon Dec 27, 10:02 am ET

LOS ANGELES – Concertgoers sick of ballooning ticket prices should have some extra pocket change to rattle with their rock ‘n’ roll in the new year.

2010 was tough for the concert business as high prices kept many fans at home. Promoters now say they plan to make shows more affordable in 2011. But they’ll also try to sell more T-shirts and other merchandise to make up for lost revenue.

Heading into last summer, usually the busiest time of the year, prices were set too high despite the sluggish economy. Managers and promoters believed fans would keep paying for the one or two concerts they see on average each year.

26 Ivory Coast general strike called to oust Gbagbo

By MARCO CHOWN OVED, Associated Press

Sun Dec 26, 9:27 pm ET

ABIDJAN, Ivory Coast – Allies of the man who the international community says won Ivory Coast’s disputed presidential election called Sunday for a general strike that would last until the incumbent hanging on to power concedes defeat and leaves office.

It was the latest form of pressure to try to force Laurent Gbagbo from the presidency nearly a month after the United Nations said his political rival, Alassane Ouattara, won the runoff vote. Gbagbo has refused to leave despite international calls for his ouster, and West African leaders say they now will remove him by force if he fails to go.

In an interview with Associated Press Television News on Sunday, Gbagbo said he was not concerned about world opinion, insisting he was duly elected. He said of his detractors: “Maybe they do not want me, I admit it, but I am not looking to be loved by them. I respect and abide by the Ivorians’ vote.”

27 Police arrest 6 in central Nigeria violence

By AHMED MOHAMMED, Associated Press

Mon Dec 27, 2:37 pm ET

JOS, Nigeria – Police have arrested six people in connection with deadly unrest following a series of bombings that killed 32 people in the central Nigerian region’s worst violence in months, authorities said Monday.

Plateau state police chief Abdurrahman Akano said that no arrests have yet been made in connection with the Christmas Eve explosions, but that the suspects had participated in street violence Sunday that left at least three dead and dozens wounded.

Angry youths had barricaded roads and attacked people passing by, and houses and a truck also were set ablaze. Military patrolled the streets of Jos on Monday and security officials cordoned off the areas where the violence had erupted.

28 More farmers’ markets expand to year-round

By BOB SALSBERG, Associated Press

Mon Dec 27, 3:33 am ET

PLYMOUTH, Mass. – A steady stream of customers filled baskets and shopping bags with vegetables, cranberries, cheese, fresh-baked breads and pies while chatting with the dozen or so farmers selling goods in the visitor’s center of a local museum.

It was a bitterly cold, gray December day, but for many, it felt just right for the farmers’ market as live music and a warm fireplace helped set a holiday mood.

A growing number of farmers’ markets are extending their operation into and through the winter months – even in cold-weather states like Massachusetts. The expansion comes as more farmers are prolonging their growing seasons with greenhouses and other methods. It’s also fueled by an increased number of people who aim to eat locally produced food year-round.

29 In Congress, a harder line on illegal immigrants

By SUZANNE GAMBOA, Associated Press

Mon Dec 27, 3:23 am ET

WASHINGTON – The end of the year means a turnover of House control from Democratic to Republican and, with it, Congress’ approach to immigration.

In a matter of weeks, Congress will go from trying to help young, illegal immigrants become legal to debating whether children born to parents who are in the country illegally should continue to enjoy automatic U.S. citizenship.

Such a hardened approach – and the rhetoric certain to accompany it – should resonate with the GOP faithful who helped swing the House in Republicans’ favor. But it also could further hurt the GOP in its endeavor to grab a large enough share of the growing Latino vote to win the White House and the Senate majority in 2012.

30 US Muslims: a new consumer niche

By RACHEL ZOLL, AP Religion Writer

Mon Dec 27, 12:02 am ET

NEW BRUNSWICK, N.J. – In the ballroom of an upscale hotel a short train ride from New York, advertisers, food industry executives and market researchers mingled – the men in dark suits, the women in headscarves and Western dress. Chocolates made according to Islamic dietary laws were placed at each table.

The setting was the American Muslim Consumer Conference, which aimed to promote Muslims as a new market segment for U.S. companies. While corporations have long catered to Muslim communities in Europe, businesses have only tentatively started to follow suit in the U.S. – and they are doing so at a time of intensified anti-Muslim feeling that companies worry could hurt them, too. American Muslims seeking more acknowledgment in the marketplace argue that businesses have more to gain than lose by reaching out to the community.

“We are not saying, `Support us,'” said Masood, a graduate of the University of Illinois, Chicago, and management consultant. “But we want them to understand what our values are.”

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