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THURSDAY, DECEMBER 2, 2010
107TH YEAR, NO. 442 I ÂŠ2010 THE MIAMI HERALD
U.S. blocks files as Interpol hunts for Assange BY MATTHEW LEE Associated Press
JOHN MACDOUGALL/AFP-GETTY IMAGES
between ourselves,â€? Putin said, according to excerpts released by CNN. â€œBut if our proposals will be met with negative answers, and if additional threats are built on our borders, Russia will have to ensure her own security through different means,â€? including â€œnew nuclear missile technologies.â€? Putin said Moscow would like to avoid this scenario.
WASHINGTON â€” The U.S. government is scrambling to prevent future spills of its secrets like the embarrassing WikiLeaksâ€™ disclosures, while ofďŹ cials pondered possible criminal prosecutions and Interpol in Europe sent out a â€œred noticeâ€? for nations to be on the lookout for the websiteâ€™s founder. Meanwhile, Interpol placed Julian Assange on its most-wanted list after Sweden issued an arrest warrant against him as part of a drawn-out rape probe â€” involving allegations Assange has denied. The Interpol alert is likely to make international travel more difďŹ cult for Assange, whose whereabouts are publicly unknown. In Washington, the State Department severed its computer ďŹ les from the governmentâ€™s classiďŹ ed network, ofďŹ cials said, as U.S. and world leaders tried to clean up from the leak that sent sensitive U.S. documents onto computer screens around the globe. By temporarily pulling the plug, the United States signiďŹ cantly reduced the number of government employees who can read important diplomatic messages. It was an extraordinary hunkering down, prompted by the disclosure of hundreds of thousands of those messages this week by WikiLeaks, the self-styled whistleblower organization. The documents revealed that the United States is still confounded about North Koreaâ€™s nuclear military ambitions, that Iran is believed to have received advanced missiles capable of targeting Western Europe and â€” perhaps most damaging to the United States â€” that the State Department asked its diplomats to collect DNA samples and other personal information about foreign leaders. While Assange, the founder of WikiLeaks, taunted the United States from afar on Tuesday, lawyers from across the government were investigating whether it could prosecute him for espionage, a senior defense ofďŹ cial said. The
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PHOTOS BY MARKUS SCHREIBER/AP
LOST AND FOUND: Standing Girl by Otto Baum, left, an unidentified sculpture, center, and Portrait of Anni Mewes by Edwin Scharff are among 11 statuettes unearthed during construction near Berlinâ€™s City Hall.
REDEMPTION AT LAST NAZISâ€™ â€˜DEGENERATE ARTâ€™ RESURFACES IN GERMANY
BY MICHAEL KIMMELMAN New York Times Service
BERLIN â€” The past still thrusts itself back into the headlines here, occasionally as an unexploded bomb turning up somewhere. Now it has reappeared as art. In January workers digging for a new subway station near City Hall unearthed a bronze bust of a woman, rusted, ďŹ lthy and almost unrecognizable. It tumbled off the shovel of their front-loader. Researchers learned the bust was a portrait by Edwin Scharff, a nearly forgotten German modernist, from around 1920. It seemed anomalous until August, when more sculpture emerged nearby: Standing Girl by Otto Baum, Dancer by Marg
Moll and the broken remains of a head by Otto Freundlich. Excavators also rescued another fragment, a different head, belonging to Emy Roederâ€™s Pregnant Woman. October produced yet a further batch. The 11 sculptures proved to be survivors of Hitlerâ€™s campaign against what the Nazis notoriously called â€œdegenerate art.â€? Several of the works, records showed, were seized from German museums in the 1930s, paraded in the fateful â€œDegenerate Artâ€? show, and in a couple of cases also exploited for a 1941 Nazi ďŹ lm, an anti-Semitic comedy lambasting modern art. They were last known to have been stored in the depot of the Reichspropagandaministerium,
which organized the â€œDegenerateâ€? show. Then the sculptures vanished. How they ended up underground near City Hall is a mystery still being unraveled; it seems to involve an Oskar Schindler-like hero. Meanwhile a modest exhibition of the discoveries has been organized and recently opened at the Neues Museum, Berlinâ€™s archaeological +TURN TO NAZIS, 2A
JOHN MACDOUGALL/AFP-GETTY IMAGES
ON DISPLAY: German artist Marg Mollâ€™s sculpture Female Dancer is part of the exhibition â€˜Degenerate Artâ€™ at Berlinâ€™s Neues Museum.
Putin criticizes leaked U.S. remarks on Russia BY ELLEN BARRY New York Times Service
MOSCOW â€” Prime Minister Vladimir Putin of Russia responded sharply on Wednesday to criticism of Russia revealed in United States diplomatic cables published by the whistle-blowing website WikiLeaks, warning Washington not to interfere in Russian domestic affairs. His comments, made in an interview to be aired on CNNâ€™s
Larry King Live, referred to a cable that said â€œRussian democracy has disappearedâ€? and described the government as â€œan oligarchy run by the security services,â€? a statement attributed to the U.S. defense secretary, Robert M. Gates. Putin said Gates was â€œdeeply misled,â€? and said Washington does not welcome critiques of its own political system. In the interview, Putin also
Debt panel releases plan, two senators endorse it BY JACKIE CALMES AND PETER BAKER New York Times Service
chairmenâ€™s plan too hard on the middle class and has put forward her own proposal. â€œThere are no easy ďŹ xes here, so while I do not agree with all parts of the co-chairmenâ€™s ďŹ nal proposal, I will support it because it represents a step forward that we urgently need,â€? Gregg, Republican of New Hampshire, said in a statement on Wednesday, released before the panel began its last public meeting before voting on the proposal, which is now scheduled for Friday. â€œLawmakers in Washington are elected to make the decisions necessary to keep our country safe from harm and on solid economic footing. Inaction on our debt crisis is not an option at this point.â€? The two co-chairmen â€” former Senator Alan K. Simpson, a Republican, and Erskine B. Bowles,
WASHINGTON â€” The Republican and Democratic leaders of the Senate Budget Committee, Judd Gregg and Kent Conrad, said on Wednesday that they endorsed the package of long-term tax increases and spending cuts put forward by the co-chairmen of U.S. President Barack Obamaâ€™s deďŹ cit reduction commission. But their support was offset by several other members of Congress from both parties who indicated their opposition to the plan in advance of a ďŹ nal vote on Friday. The probable opponents include Representatives Paul Ryan of Wisconsin, a Republican who will be the House Budget Committee chairman in the next Congress; Jeb Hensarling of Texas, who will be a Republican House leader, and Jan Schakowsky of Illinois, a liberal Democrat who has called the +TURN TO DEFICIT, 2A
GATES TAKES THE LONG VIEW ON DOCUMENT LEAKS, 3A
warned that Russia would develop and deploy new nuclear weapons if the United States does not accept its proposals on integrating Russian and European missile defense forces â€” amplifying a comment by President Dmitri A. Medvedev in his annual state of the nation address on Tuesday. â€œWeâ€™ve just put forward a proposal showing how all of us, tackling the shared problem of security, could share responsibility
Pentagon chalks out lifting of gay ban BY NANCY A. YOUSSEF McClatchy News Service
WASHINGTON â€” The Pentagon has offered a carefully calibrated plan for lifting the ban on gays serving openly in the military that would allow the military to keep U.S. President Barack Obamaâ€™s vow to end â€œdonâ€™t ask, donâ€™t tellâ€? while accommodating the substantial minority of troops who said repealing the ban would hurt their ability to ďŹ ght wars. In unveiling an eight-monthlong study that included the largest survey of military opinion ever, Pentagon ofďŹ cials stressed that 70 percent of the more than 115,000 soldiers, sailors and Marines who responded said they thought thereâ€™d be no effect or positive effect from lifting the ban, which Congress codiďŹ ed 17 years ago during the administration of former U.S. President Bill Clinton. But that overwhelming support evaporated in combat units, according to the 256-page study, where 48 percent of Army troops
SUSPECTED TERRORISTS ARRESTED IN SPAIN AND THAILAND, 6A
TIM SLOAN/AFP-GETTY IMAGES
DELICATE: Defense Secretary Robert Gates, left, and Chairman of the Joint Chiefs of Staff Adm. Mike Mullen say ending the â€˜don't ask, donâ€™t tellâ€™ policy will require a lot of preparation. and 58 percent of Marines thought lifting the ban would have negative consequences. More than a quarter of Army troops and more than a third of Marines said theyâ€™d consider leaving the military if the ban were lifted.
ECB TAKES CENTER STAGE IN EUROPEâ€™S DEBT CRISIS, BUSINESS FRONT
â€œIn my view, the concerns of combat troops as expressed in the survey do not present an insurmountable barrier to a successful repeal of â€˜donâ€™t ask, donâ€™t tell,â€™ â€? +TURN TO GAYS, 2A
TIGER WOODS RETURNS TO WORLD CHALLENGE, SPORTS FRONT
INDEX AMERICAS..................4A U.S. NEWS...................5A OPINION.......................7A COMICS & PUZZLES.. 5 6B
THURSDAY, DECEMBER 2, 2010
FROM THE FRONT PAGE
THE MIAMI HERALD
‘Degenerate Two senators back debt panel plan art’ from Nazi era resurfaces • DEFICIT, FROM 1A
• NAZIS, FROM 1A
collection, the perfect site for these works. Like the sculptures, the museum lately rose, all these years later, from the ruins of war. In the architect David Chipperﬁeld’s ingenious, Humpty Dumpty-like reconstruction of the building, it has become a popular palimpsest of German history, bearing witness, via the evidence of all the damage previously done to it, to a violence that not even time and several generations have been able to erase. I can hardly express how moving this little show is, unexpectedly so. Its effect ends up being all out of proportion to the objects discovered, which are, in strictly aesthetic terms, ﬁne but not remarkable. They are works of quasiCubism or Expressionism, mostly not much more than a foot high, several newly cleaned but still scarred, inspiring the obvious human analogy. Archeologists have so far determined that the recovered works must have come from 50 Konigstrasse, across the street from City Hall. Among its occupants, German investigators now believe, the likeliest candidate to have hidden the art was Erhard Oewerdieck, a tax lawyer and escrow agent. Oewerdieck is remembered at the Holocaust memorial in Israel. In 1939, he and his wife gave money to a Jewish family to escape to Shanghai. He also hid an em-
ployee, Martin Lange, in his apartment. In 1941 he helped historian Eugen Taubler and his wife ﬂee to the United States, preserving part of Taubler’s library throughout the war. And he stood by Wolfgang Abendroth, a leftist and Nazi opponent, by writing him a job recommendation when that risked his own life. The current theory is that when ﬁre from Allied air raids in 1944 consumed 50 Konigstrasse, the contents of Oewerdieck’s ofﬁce fell through the ﬂoor, and then the building collapsed on top. How the lost art came into Oewerdieck’s possession in the ﬁrst place still isn’t clear. But at least it’s now back on view. Farther down the block the Deutsches Historisches Museum’s current exhibition about Hitler, today’s version of a “Degenerate” show, means to warn viewers about succumbing to what present German law declares morally reprehensible. How could any decent German have ever been taken in? the show asks. That happens to be the question the Nazis’ “Degenerate” show posed about modern art. Many more Germans visited that exhibition than the concurrent one of approved German art. Maybe Oewerdieck was among those who went to the modern show and saw these sculptures in it. In any case, today’s Germany has salvaged them and has organized this display. Redemption sometimes comes late and in small measures.
a Democrat and former chief of staff to U.S. President Bill Clinton — formally released their proposal Wednesday morning, but its broad outlines have been known for several weeks. The report calls for deep cuts in domestic and military spending starting in 2012, and a sweeping overhaul of the tax code to raise revenue, in part by modifying or eliminating tax deductions like the one for home mortgage interest. CRUCIAL SUPPORTER
Though Gregg has inﬂuence among conservatives on ﬁscal matters, he is retiring at the end of the year after decades in Congress. The backing of Conrad, who will remain chairman of the Senate Budget Committee in the next Congress, appeared to be more crucial. “To be clear, I am supporting this plan as a package, because it represents genuine bipartisan compromise, with both Democrats and Republicans making concessions,” said Conrad, who next faces re-election in 2012. “I don’t like everything in this package, but
I like even less where our country is headed without it. It would be much easier to say no and to oppose this plan.” He added: “Anyone watching the spreading debt crisis in Europe over the last few days, in Ireland, Portugal, and Spain, understands the threat we face is real. We can’t afford to wait until the crisis is upon us.” Two members of the 18-member deﬁcit commission who do not hold elective ofﬁce — David Cote, chief executive of Honeywell International, and Alice Rivlin, a former budget director for Congress and later for former Clinton — also announced their support for the plan on Wednesday. That suggested that there would be at least seven votes for the chairmen’s plan, counting Simpson, Bowles and Ann Fudge, a former executive of Young & Rubicam whose support is expected. In all, there are six Republican members of Congress, six Democratic members of Congress and six unelected commissioners on the panel. Under Obama’s February order creating the commission, 14 of the 18 members
must agree in order to send a plan to go to Congress — a supermajority that even some of the commissioners privately do not expect to be achieved. Aside from Conrad and Gregg, most of the dozen members of Congress on the panel — including the three Republicans from the House who will hold senior chairmanships in the next Congress — are expected to vote against the plan. Republicans generally oppose proposed revenue increases, seek deeper spending cuts and want to repeal of Obama’s healthcare law, despite its projected cost savings, a step the chairmen’s report does not recommend. The Democrats generally oppose cutting promised beneﬁts for future Medicare and Social Security beneﬁciaries, which the plan does propose. The potential break between the elected ofﬁcials on the commission and the others underscored the reluctance of either political party to risk angering voters in the short term to pursue the nation’s long-term ﬁscal health. The proposal, revised somewhat since a draft was
released in early November, was originally meant to be put to a vote of the commission on Wednesday, but the chairmen delayed the vote until Friday to give members more time to review the revised plan and themselves more time to line up votes in favor. LAST-DITCH EFFORT The commission pressed ahead with its last-ditch efforts as Obama and Republican leaders opened negotiations on Tuesday in search of what the president called “sensible common ground” in their debate over extending lowered income tax rates from the Bush era. It is the most immediate domestic issue facing them, and a key test of whether the two sides can work together in the new political order. During their ﬁrst meeting since the midterm elections rearranged the power map in Washington, Obama told Rep. John A. Boehner, the incoming House speaker, and Sen. Mitch McConnell, the Senate Republican leader, on Tuesday that he regretted not reaching out to them more in his ﬁrst two years in ofﬁce, and vowed to do better.
Putin criticizes leaked U.S. comments • PUTIN, FROM 1A
“This is no threat on our part,” he said. “We are simply saying this is what we expect to happen if we don’t agree on a joint effort there.” In November, during a NATO-Russia summit meeting in Lisbon, the delegations discussed President Obama’s invitation for Russia to take some role in the future missile shield, perhaps through linkage between Russian
facilities and the European shield. At that meeting, Medvedev proposed “sectoral missile defense,” which would divide the missile defense shield into “zones of responsibility,” and involve deep coordination between the European and Russian sectors, said Dmitri V. Trenin, a military analyst and director of the Carnegie Moscow Center. NATO’s proposals for cooperation are less
ambitious, involving information exchange but not interdependence, and some members remain deeply mistrustful of Russian involvement, he said. In his Wednesday interview, Putin broke from the restrained response that Russian leaders have so far given to the WikiLeaks cables. While a number of the cables refer to Russia, they have so far offered few real revelations about sensitive
topics like corruption or power relationships within the political elite. The comments attributed to Gates, contained in a cable dated Feb. 8, 2010, used the harshest language made public so far. Putin said several U.S. presidents had been elected through the electoral college system even though they did not win a majority of the popular vote, but that Russia does not press the point.
U.S. cuts access to documents; Interpol goes after Assange • WIKILEAKS, FROM 1A
ofﬁcial, not authorized to comment publicly, spoke only on condition of anonymity. There have been suggestions that Assange or others involved in the leaks could be prosecuted under the Espionage Act, but the question could be complicated. Who and what is he and his website? He has portrayed himself as a crusading journalist, and the U.S. Justice Department has steered clear of prosecuting journalists for publishing leaked secrets.
Meanwhile, State Department spokesman P.J. Crowley sought to reassure the world that U.S. diplomats were not spies, even as he sidestepped questions about why they were asked to provide DNA samples, iris scans, credit card numbers, ﬁngerprints and other deeply personal information about leaders at the United Nations and in foreign capitals. Diplomats in the Paraguayan capital of Asuncion, for instance, were asked in a secret March 2008 cable to provide “biometric data,
to include ﬁngerprints, facial images, iris scans, and DNA” for numerous prominent politicians. They were also asked to send “identities information” on terrorist suspects, including “ﬁngerprints, arrest photos, DNA and iris scans.” In Burundi, Rwanda and the Democratic Republic of Congo the requests included information about political, military and intelligence leaders. “Data should include e-mail addresses, telephone and fax numbers, ﬁngerprints,
facial images, DNA, and iris scans,” the cable said. Every year, the intelligence community asks the State Department for help collecting routine information such as biographical data and other “open source” data. DNA, ﬁngerprint and other information was included in the request because, in some countries, foreigners must provide that information to the United States before entering an embassy or military base, a U.S. ofﬁcial said, speaking on condition of anonymity.
The possibility that U.S. diplomats pressed for more than “open source” information has drawn criticism at the United Nations and in other diplomatic circles over whether U.S. information-gathering blurred the line between diplomacy and espionage. “What worries me is the mixing of diplomatic tasks with downright espionage. You cross a border . . . if diplomats are encouraged to gather personal information about some people,” U.N. Secretary General Ban Kimoon said.
Crowley said a few diplomatic cables don’t change the role of U.S. diplomats. “Our diplomats are diplomats. Our diplomats are not intelligence assets,” he repeatedly told reporters. “They can collect information. If they collect information that is useful, we share it across the government.” Defense Secretary Robert Gates played down the fallout from the leaks, calling them embarrassing and awkward but saying they would not signiﬁcantly complicate U.S. foreign policy.
Pentagon plans end of ‘don’t ask don’t tell’ • GAYS, FROM 1A
Defense Secretary Robert Gates told reporters at a news conference to announce the report’s conclusions. “However, these ﬁndings lead me to conclude that an abundance of care and preparation is required if we are to avoid a disruptive — and potentially dangerous — impact on the performance of those serving at the tip of the spear in America’s wars.” Among the steps the military would take to mitigate possible negative impact from a repeal, should Congress enact one, would be a more gradual implementation in deployed units so that commanders’ attention can remain focused on combat, and not on the training and education that the Pentagon says will be needed for successfully incorporating openly gay people into the services. The Pentagon also is proposing limiting housing beneﬁts to married heterosexual couples only, while other military beneﬁts, such as health insurance, would be made available to samesex partners of service members. It was unclear how the report will affect the debate in Congress on repealing “don’t ask, don’t tell,” which has been approved by the House
but faces an uncertain future in the lame-duck Senate. Democrats who previously supported the repeal hailed the report’s ﬁndings. “Today’s report conﬁrms that ending ‘don’t ask, don’t tell’ can be implemented in a manner consistent with maintaining the strong, cohesive military force we have today,” Sen. Carl Levin, D-Mich., the chairman of the Senate Armed Services Committee, said in a statement. Sen. John McCain of Arizona, the senior Republican on the Armed Services Committee, a leading opponent of repeal who has said he is concerned about the impact it would have on troops ﬁghting two wars, offered no opinion Tuesday. He said he and his staff were still studying the report. The report itself concluded that despite the high percentage of opposition within combat units, other survey ﬁndings pointed to the likelihood that gays could serve openly with minimal disruption. The report said the survey found that 69 percent of respondents said they had served with someone they thought to be gay or lesbian and that of those, 92 percent said their experience was good or indifferent. Those percentages were also true of combat units.
12/2/2010 5:00:55 AM
THE MIAMI HERALD
THURSDAY, DECEMBER 2, 2010
Gates takes long view on WikiLeaks BY ELISABETH BUMILLER New York Times Service
DYING OUT: A sharp upsurge in rhino poaching in South Africa by organized crime gangs threatens to wipe out South Africa’s critically endangered black rhinos within a decade.
Rhino poaching is on the rise in South Africa BY ROBYN DIXON Los Angeles Times Service
JOHANNESBURG, South Africa — She has a bullet in her face, another in her leg and every reason not to trust humans. But when Johannesburg Zoo rhino keeper Alice Masombuka calls her name, the wild black rhino ﬂutters her ears delicately and stands alert, gazing in the direction of the voice. “Hey Phila, Phila! Hey big girl, good girlie. Phila!” says Masombuka, leaning against the fence, her singsong voice ﬂoating irresistibly in Johannesburg’s damp spring air. Phila takes a few steps, hesitates, stops, changes her mind, takes a few more steps and halts again fearfully. “Look, she wants to come,” coos Masombuka. Then, as curious and brave as a foal, the rhino trots to the fence. The ﬁrst time Phila was shot by poachers, during the soccer World Cup in July, the bones in her foot were shattered, and she took a bullet behind the shoulder. Another rhino was slaughtered and her horn taken off. Then, six weeks ago, Phila was shot at least nine times; one of the rounds tore through her nasal cavity and left her bleeding for weeks. Poaching for the Chinese and Vietnamese markets, where the horns are believed to have medicinal qualities, has slashed the black rhino population from 70,000 in the late 1960s to 4,000 today. Some 1,500 are in South Africa, many in private reserves that have to meet strict criteria. IMMINENT THREAT About 120 rhinos were poached in South Africa in 2009. This year the number shot up, and it is expected to reach about 300 by year’s end. A group of veterinarians was arrested recently on suspicion that they were involved in the trade. But the poaching incidents go on: Another rhino is killed almost every day. After the ﬁrst shooting, Phila’s owner had the 5-year-old rhino transferred from his reserve to a supposedly secure enclosure on a different property in the northern province of Limpopo. Her horn was removed to discourage poachers, and she spent several months recovering. Then came the second attack. She was in an enclosure, called a boma, of about 10,000 square feet, with a fence of closely spaced poles. “Days before she was due to be released, these guys came back. And for 45 minutes they stalked around the outside of the boma, shooting at her like a ﬁsh in a barrel, in the dark,” said the owner, who asked to be identiﬁed only by his ﬁrst name, Allan, because of concerns about the safety of rhinos on the reserve where he breeds the animals. Panic-stricken, Phila dashed around the boma, crashing into the fence and trees, as the poachers ﬁred at her head. They were willing to kill her for the stump of her sawn-off horn. When police trackers and helicopters arrived, they found no trace of the criminals. When he received word of the attack from his farm manager, Allan said he felt dead inside. He thinks the word “poachers” is too mild to describe the criminal syndicates involved in the business. PRECIOUS HORNS “While rhinos have got horns and it’s a desirable product, they’re on their way to extinction. They’re gone,” he said. “How do you get over this greed, and the criminality that goes with it?” Allan is an unusual rancher, a shy crusader and environmentalist alarmed by the harm humans do to the planet. He doesn’t keep the animals for proﬁt through safari tourism, but for his love of the animal. His breeding program was his own small contribution to saving a species. “Where is the payback? Why bother? What’s in it for me? The short answer is that I needed to have black rhino mainly because it was the right thing to do,” he says. It was difﬁcult when he started in 1998 to persuade his wife and children to let rhinos onto the farm; they wouldn’t be able to just walk or ride horses around the farm like they used to. After the second attack on Phila, Allan didn’t know where to turn, terriﬁed an insider might leak details of her whereabouts. He ﬁnally found what he hoped would be a secure location — with guards — but in October, two helicopters ﬂew low over the boma. (Some poaching gangs use choppers to attack.) “When I heard that, I said to the zoo, ‘Please, you have got to take this animal.’ ” Phila (her name means life in Zulu) will be at the Johannesburg Zoo until she recovers, probably less than a year, after which Allan hopes to bring her home.
WASHINGTON — U.S. Defense Secretary Robert Gates has regularly denounced the whistleblower website WikiLeaks in recent months for its extensive disclosures. As a former director of central intelligence, Gates, who plans to retire in 2011, places high value on secrets. However, at a Pentagon brieﬁng Tuesday, Gates responded to a question about WikiLeaks’ disclosure of diplomatic cables by meandering down a different path.
Here is some of what he said: “Let me just offer some perspective as somebody who’s been at this a long time. Every other government in the world knows the United States government leaks like a sieve, and it has for a long time. And I dragged this up the other day when I was looking at some of these prospective releases. And this is a quote from John Adams: ‘How can a government go on, publishing all of their negotiations with foreign nations, I know not.
To me, it appears as dangerous and pernicious as it is novel.’ “Now, I’ve heard the impact of these releases on our foreign policy described as a meltdown, as a gamechanger, and so on. I think those descriptions are fairly signiﬁcantly overwrought. The fact is, governments deal with the United States because it’s in their interest, not because they like us, not because they trust us, and not because they believe we can keep secrets. Many governments — some governments
— deal with us because they fear us, some because they respect us, most because they need us. We are still essentially, as has been said before, the indispensable nation. “So other nations will continue to deal with us. They will continue to work with us. We will continue to share sensitive information with one another. “Is this embarrassing? Yes. Is it awkward? Yes. Consequences for U.S. foreign policy? I think fairly modest.”
U.S. cool to Blackwater’s pirate-hunt plan BY MARK MAZETTI New York Times Service
WASHINGTON — Besieged by criminal inquiries and congressional investigators, how could the world’s most controversial private security company drum up new business? By battling pirates on the high seas, of course. In late 2008, Blackwater Worldwide, already under ﬁre because of accusations of abuses by its security guards in Iraq and Afghanistan, reconﬁgured a 183-foot oceanographic research vessel into a pirate-hunting ship for hire and then began looking for business from shipping companies seeking protection from Somali pirates. The company asked the U.S. Embassy in Djibouti for help with a promotional event there, according to a secret U.S. State Department cable. But with the Obama administration just weeks old, U.S. diplomats in Djibouti faced a problem. They are supposed to be advocates for U.S. businesses, but this was Blackwater, a company that U.S. Secretary of State Hillary Clinton had proposed banning from war zones when she was a presidential candidate. The embassy “would appreciate Department’s guidance on the appropriate level of engagement with Blackwater,” wrote James Swan, the U.S. ambassador in Djibouti, in a cable sent Feb. 12, 2009. Blackwater’s plans to enter the anti-piracy business have been previously reported, but U.S. government did not show any concern about the endeavor. According to that cable, Blackwater had outﬁtted its ship with .50-caliber machine guns and a small un-
GERVASIO SANCHEZ/AP FILE, 2004
TACIT SUPPORT: The U.S. government showed no concern over reports of private security company Blackwater Worldwide’s plans to enter the anti-piracy business. Above, Blackwater contractors fight demonstrators in Iraq. armed drone aircraft. The ship, named the McArthur, would carry a crew of 33 to patrol the Gulf of Aden for 30 days before returning to Djibouti to resupply. And the company had already determined its rules of engagement. “Blackwater does not intend to take any pirates into custody, but will use lethal force against pirates if necessary,” the cable said. At the time, the company was still awaiting approvals from Blackwater lawyers for its planned operations, since Blackwater had informed the embassy there was “no precedent for a paramilitary operation in a purely commercial environment.”
Lawsuits ﬁled later by crew members on the McArthur made life on the ship sound little improved from the days of Blackbeard. One former crew member said, according to legal documents, that the ship’s captain, who had been drinking during a port call in Jordan, ordered him “placed in irons” (handcuffed to a towel rack) after he was accused of giving an unauthorized interview to his hometown newspaper in Minnesota. The captain, according to the lawsuit, also threatened to place the sailor in a straitjacket. Another crew member, who is black, claimed in court documents that he
was repeatedly subjected to racial epithets. In the end, Blackwater Maritime Security Services found no treasure in the pirate-chasing business, never attracting any clients. And the Obama administration chose not to sever the U.S. government’s relationship with the North Carolinabased ﬁrm, which has collected more than $1 billion in security contracts in Iraq and Afghanistan since 2001. Blackwater renamed itself Xe Services, and earlier this year the company won a $100 million contract from the Central Intelligence Agency to protect the spy agency’s bases in Afghanistan.
Stephen Solarz was Marco Polo of Congress BY DOUGLAS MARTIN New York Times Service
NEW YORK — Stephen J. Solarz, a nine-term Democratic congressman whose concerns went beyond trafﬁc lights and beach erosion in his Brooklyn district, N.Y., to nuclear weapons, the Middle East and his revelation that Imelda Marcos owned 3,000 pairs of shoes, died Monday in Washington. He was 70 and lived in McLean, Va. His death, at a Washington hospital, was caused by esophageal cancer, his wife, Nina, said. When he was elected to the House in 1974, Solarz ﬁnagled a seat on the Foreign Affairs Committee with the idea that he could appeal to his largely Jewish district by attending to the needs of Israel. He immediately threw himself into foreign policy issues, visiting leaders of Israel, Jordan, Egypt and Syria in his ﬁrst month on the job. He soon became a leading voice in the House on foreign affairs. Solarz was defeated in a Democratic primary in 1992 after being caught up in a scandal involving the bank operated for House members and after his district had been redrawn to facilitate the election of a Hispanic candidate. (A Hispanic candidate,
GLOBETROTTER: U.S. Congressman Stephen Solarz, who exposed the notorious shoe stash story of former Philippines President Imelda Marcos, has died at 70. Nydia M. Velazquez, went on to win the primary and the general election.) But his arrival in 1975 was a moment of triumph, both for himself and for his party. A huge class of 75 freshman Democrats forced changes in the seniority system, making newer representatives much more inﬂuential. The public’s interest in global affairs had been heightened by the Vietnam War, and the abuses of presidential power in the Watergate affair had given new steam to Congress. “I was elected to Congress at precisely the moment in U.S. history when Congress decided it would no longer
abdicate its constitutional authority for foreign policy to an executive branch that had lost its claim to presidential infallibility,” Solarz wrote in his preface to Journeys to War and Peace: A Congressional Memoir, to be published in 2011. Solarz would go on to be the ﬁrst congressman to visit North Korea in 30 years; have a nine-hour conversation with Fidel Castro; introduce a nuclear freeze resolution; help alter Reagan administration policies in Central America and Lebanon; and battle many in his own party when he supported the Persian Gulf War in 1991.
Solarz visited more than 100 countries, more than earning his nickname, the Marco Polo of Congress. He once got a standing ovation on the ﬂoor of the Indian Parliament. In his 1986 hearings on the Philippines, Solarz provided irrefutable evidence that the country’s former President Ferdinand Marcos was misusing foreign aid, leading to the uncovering of the vast U.S. real estate empire he shared with his wife, Imelda — not to mention Solarz’s blockbuster disclosure about her shoes. In an interview, Robert Dallek, the presidential historian, praised Solarz’s commitment to building democracy in places like the Philippines, South Korea, Lebanon and Taiwan. “He struck idealistic notes with a lot of his colleagues,” Dallek said. But he was also pragmatic, said Paul D. Wolfowitz, the former deputy defense secretary and World Bank president, who worked with Solarz on Asian issues during the Reagan administration. Solarz, he said, showed that allying with forces ﬁghting repression could be good policy. “Solarz understood that idealism and realism actually go together,” he said.
12/2/2010 5:48:17 AM
THURSDAY, DECEMBER 2, 2010
THE MIAMI HERALD
Leaked cables discuss Cuban spies, U.S. concerns BY IAN JAMES Associated Press
YURI CORTEZ/AFP-GETTY IMAGES
DISMISSED: Ecuador’s President Rafael Correa said that the offer of residency made by Deputy Foreign Minister Kintto Lucas to WikiLeaks chief Julian Assange has not been approved by him.
No offer to WikiLeaks founder, says Correa QUITO — (AP) — Ecuador’s President Rafael Correa has dismissed an offer of residency that a lower level ofﬁcial made to the embattled founder of the online whistle-blower WikiLeaks. The offer by Deputy Foreign Minister Kintto Lucas on Monday “has not been approved by Ecuador’s Foreign Minister Ricardo Patino — or the president,” Correa told reporters. Patino already had indicated earlier in the day that the leftist government was backing away from providing refuge for WikiLeaks founder Julian Assange, saying it “will
have to be studied from the legal and diplomatic perspective.” Lucas had said Monday that Ecuador was open to giving Assange residence “without any kind of trouble and without any kind of conditions.” The 39-year-old Australian, whose whereabouts are not publicly known, has incensed Washington and many other governments by releasing hundreds of sensitive diplomatic cables. He had sought residency in Sweden. But a court there has ordered him detained for questioning on sexual assault allegations. Assange denies the allegations.
Interpol issued a “Red Notice” on Tuesday for Assange based on that arrest warrant. Such notices are not tantamount to international arrest warrants. It is up to individual states to determine whether to act upon them. Attorneys for Assange ﬁled an appeal of the arrest warrant with Sweden’s highest court Tuesday. U.S. government ofﬁcials, meanwhile, say they are studying whether Assange could be charged with espionage. Assange says he is a journalist, and U.S. ofﬁcials have shied away from prosecuting reporters for publishing leaked secrets.
Abuses at Mexican institutes for disabled detailed in report BY RANDAL C. ARCHIBOLD New York Times Service
MEXICO CITY — Ten years ago, a human rights group released a scathing, groundbreaking report on abusive, decrepit conditions in Mexican institutions for the mentally and physically disabled, moving the country to promise change and to take the lead in writing international agreements to protect the disabled. But in a new report released Tuesday, the group, Disability Rights International, working with a Mexican human rights organization, said that a yearlong investigation revealed “atrocious and abusive conditions” that included lobotomies performed without consent, children missing from orphanages, widespread ﬁlth and squalor, and a lack of medical care. At one institution here in the capital, which a reporter visited with investigators from the groups, men walked around halfnaked, feces littered a yard, bedsheets were missing, the smell of urine permeated a dayroom, bathroom faucets malfunctioned and patients lay sprawled on several patches of grass.
At another institution here, CAIS Villa Mujeres, elderly women sat tied to wheelchairs, staff members hustled to clean soiled ﬂoors as investigators moved through and patients and their caretakers could not fully explain how or why they were institutionalized. Eric Rosenthal, director of Disability Rights International, based in Washington, said: “I have witnessed abuses as atrocious as these in the psychiatric facilities and orphanages of some other countries. But only in Mexico have I encountered a system so lacking in protections that children literally disappear and adults remain nameless.” The Mexican Commission for the Defense and Promotion of Human Rights, which helped compile the report, said the “human rights violations being perpetrated against children with disabilities in Mexico are every bit as serious as any this organization has documented over the last 20 years.” Rosenthal said the conditions were particularly galling because Mexico, in response to the earlier report, had championed human
rights for the disabled and helped write international standards. Along with 94 other nations, Mexico ratiﬁed the 2006 agreement it is now accused of violating, the U.N. Convention on the Rights of Persons with Disabilities. Mexico’s ﬁrst report on its progress toward abiding by the agreement is due this year, and the human rights groups said they issued their report as a “shadow,” independent assessment. The Mexican government received the report Monday but as of Tuesday morning had made no comment. The investigators visited 20 psychiatric wards, orphanages, shelters and other public institutions, housing thousands of people, from August 2009 to September 2010, interviewing patients and administrators and reviewing records when possible. The report recommends a host of changes, including a shift toward more community-based services; establishing a foster care system for children with disabilities, and more independent oversight of the system.
CARACAS, — Cuban intelligence agents have deep involvement in Venezuela and enjoy direct access to President Hugo Chavez, the U.S. Embassy said in a 2006 diplomatic cable that was classiﬁed as secret. The document was among several posted online Tuesday by the newspaper El Pais of Spain as a growing list of sensitive U.S. government messages were released by WikiLeaks. The Jan. 30, 2006, cable from then-U.S. Ambassador William Brownﬁeld said that “Cuban intelligence ofﬁcers have direct access to Chavez and frequently provide him with intelligence reporting unvetted by Venezuelan ofﬁcers.” Similar claims have been raised previously by Chavez’s critics, but U.S. ofﬁcials have not publicly aired such concerns. “The impact of Cuban involvement in Venezuelan intelligence could impact U.S. interests directly,” the report said. “Venezuelan intelligence services are among the most hostile towards the United States in the hemisphere, but they lack the expertise that Cuban services can provide. Cuban intelligence routinely provides the (Venezuelan government)
intelligence reports about the activities” of U.S. government ofﬁcials. The embassy cable also said Venezuela’s DISIP domestic spy agency “may be taking advice from Cuban intelligence on the formation of a new intelligence service.” The DISIP has since been replaced by the Bolivarian National Intelligence Service, named after independence hero Simon Bolivar — the inspiration of Chavez’s socialist-inspired Bolivarian Revolution movement. “Cuban intelligence ofﬁcers train Venezuelans both in Cuba and in Venezuela, providing both political indoctrination and operational instruction,” the report said, without citing sources. The cable said U.S. ofﬁcials believed Cubans were training and advising Chavez’s military security detail, but said U.S. diplomats at the time had “no credible reports of extensive Cuban involvement in the Venezuelan military.” It also said there were reports that Chavez’s brother Adan, then the Venezuelan ambassador to Cuba, “may proﬁt illicitly from the loan process” while Venezuela was ﬁnancing food imports through a Havana branch of the Industrial Bank of Venezuela.
Haiti’s opposition accused of sabotage in election BY JACQUELINE CHARLES AND TRENTON DANIEL McClatchy News Service
P O R T- A U - P R I N C E — Breaking its silence after accusations that it tried to steal the vote during Sunday’s chaotic presidential and legislative elections, Haiti’s President Rene Preval’s party accused the opposition of marring the day with “an act of sabotage.” “Anticipating their defeat at the polls, they orchestrated a bold political maneuver in the form of an election coup d’etat,” said Sen. Joseph Lambert, national coordinator for Preval’s INITE [UNITY] coalition.” But even as he denounced opposition presidential candidates’ call for a cancellation of the vote, Lambert left open the possibility that his presidential candidate, Jude Celestin, may not receive enough votes for a runoff. “We are die-in-the-wool democrats. INITE is ready to
accept democratic change,” Lambert said. “If we lose the presidential election as a party, we either will join the opposition or we will form a coalition with the party that wins.” He said the group had full conﬁdence in the CEP and “condemn all initiatives to destabilize the country.” Meanwhile, diplomatic sources said preliminary reports show the turnout in Sunday’s election was 37 percent, down from the 60 percent in the 2006 presidential election. As election workers counted ballots Tuesday, Celestin supporters continued to believe he will become Haiti’s next president, as do those who support musician Michel “Sweet Micky” Martelly and former ﬁrst lady Mirlande Manigat. On Tuesday, vote tallies from 11,181 polling stations continued to trickle into a tabulation center in the quake-battered capital.
The bill approved Tuesday says surrogacy can be carried out only with the authorization of the city’s Health Department. It also asks that parents ﬁrst look for women related by blood to serve as surrogates, although other women can participate. The law also says a
woman can be a surrogate mother no more than twice and she can’t charge for it. Mexico City lawmaker Maricela Contreras, who promoted the initiative, says the law looks to help some of Mexico’s 1.5 million couples with fertility problems.
Irregularities were showing up in ballots from the region that includes Port-au-Prince, sources say. The Organization of American States, which organized an international observer mission along with the Caribbean community, has said the irregularities are not enough to invalidate the vote. Lambert said his platform acknowledges that there were “irregularities” but it, too, was a victim of opposition party’s intentions to steal the vote. In one instance, he said, a busload of supporters heading to the polls were ﬁred upon. Initially, the CEP said only 3.56 percent or 56 out of 1,500 voting centers around the country had problems. On Tuesday, the number had increased to 83, or 5.5 percent, diplomatic sources said. Meanwhile, protests continued in the cities of St. Marc and Gonaives, with supporters of Jean-Henry Ceant now joining in.
Rains leave 21 dead in Venezuela BY FABIOLA SANCHEZ Associated Press
CARACAS — Flooding and landslides unleashed by torrential rains have killed at least 21 people in Venezuela, forced thousands from their homes and idled an oil reﬁnery. The death toll rose as authorities conﬁrmed eight additional deaths in Caracas and nearby states. Vice President Elias Jaua said there had been 21 deaths nationwide since Thursday and about 5,600 people ﬂed their homes. Gov. Henrique Capriles decreed a “state of alarm” in Miranda state, which includes parts of the capital,
aiming to speed aid to ﬂood victims. Capriles, speaking to Venezuelan television station Globovision, called on President Hugo Chavez to declare an emergency in the state. Chavez has already declared an emergency in the western state of Falcon, which has been particularly hard hit, and the military has been dispatched to aid victims. Ofﬁcials said the storms caused a power outage Monday that stopped operations at the Cardon oil reﬁnery in Falcon, and similar problems shut down some units at the adjacent Amuay reﬁnery. Venezuela’s state oil company said it had adequate sup-
Pro-surrogate mothers law passed MEXICO CITY — (AP) — Mexico City lawmakers have approved legislation to allow women in the capital district to be surrogate mothers. The measure is the ﬁrst of its type to be passed in Mexico. It still needs to be signed by Mayor Marcelo Ebrard.
There was no immediate reaction from the Venezuelan government to the leaked documents. Chavez, who has welcomed thousands of Cuban doctors to Venezuela along with military advisers, has made no secret of his close ties to Cuba’s communist government. He has said his mentor Fidel Castro once told him that the thousands of Cubans in Venezuela would come to his defense and ﬁght if ever needed. Before the latest ﬁles were released, Chavez said Monday that U.S. Secretary of State Hillary Clinton should resign over the WikiLeaks revelations and that the documents show the U.S. government is a “failed state.” A secret memo dated Jan. 28, 2010, discussed a biannual counterintelligence meeting “to review current threat levels and countermeasures.” It says that the embassy faced a high espionage threat and that ofﬁcials discussed the need for strict security policies, including in the use of BlackBerry phones. The memo said U.S. ofﬁcials believed tht Venezuelan intelligence agencies “are controlled by the Cuban Intelligence Service” and that they “have the capability, means and desire to monitor and target Embassy staff.”
AMID PANIC: Thousands of people fled their homes due to flooding unleashed by torrential rains in Venezuela. Above, people play dominos in a flooded street.
plies on hand and the problems would not affect fuel shipments. The government says the heavy rains during November, which have continued past the usual end of the wet season, have caused troubles for more than 50,000 people across Venezuela. Those killed in coastal Vargas state near Caracas included the head of a local municipal council, Miguel Zavala, and a police inspector, who were swept away by a swollen river during the night, Gov. Jorge Garcia Carneiro told state television. Flooding rivers and mudslides blocked the coastal highway in Vargas, and crews were working to reopen the road, Garcia Carneiro said. Thousands were killed in the same area in December 1999 when ﬂoods and mudslides thundered down from the mountains in Vargas. In some areas where the deluges destroyed homes, people gathered their belongings and left. “The only thing I remember was a loud clamor and the people screaming,” said 60-year-old Ena Romero, recalling the moment when part of a hillside collapsed in her neighborhood and took other homes with it.
12/2/2010 5:46:29 AM
THE MIAMI HERALD
THURSDAY, DECEMBER 2, 2010
Clinton expects U.S. takes over airline checks leak to cost lives BY ERIC LIPTON
New York Times Service
BY MIKE BAKER Associated Press
GREENSBORO, N.C. — Former U.S. President Bill Clinton said he expects people to lose their lives over this week’s massive leak of diplomatic documents but doesn’t believe the founder of the website that is posting the ﬁles has succeeded in evading U.S. authorities.
STERN: Former U.S. President Bill Clinton says Julian Assange knows the leaks were criminal.
“I’ll be very surprised if some people don’t lose their lives,” Clinton said in a speech in North Carolina. “And goodness knows how many will lose their careers.” Clinton’s wife, U.S. Secretary of State Hillary Clinton, has argued that the website WikiLeaks acted illegally in posting the sensitive ﬁles. Bill Clinton said after the event that it’s clear that WikiLeaks founder Julian Assange is trying to evade the reach of U.S. law because he knows what he did was criminal. “That doesn’t mean that he did succeed in evading the reach of American law,” Clinton said. Interpol has put Assange on its most-wanted list after Sweden issued an arrest warrant against him as part of a drawn-out rape probe involving allegations Assange has denied.
WASHINGTON — Nearly a decade after the 2001 terrorist attacks, the federal government has as of this week completed taking over the task of matching the names of airline passengers against the terror watch list. Ofﬁcials say the change, announced Tuesday by the Transportation Security Administration, should reduce false matches, while also making it somewhat harder for terrorists to carry out an attack. Previously, airlines have been responsible for comparing passenger names with terror watch lists, to identify passengers who must submit to more detailed screening, or the smaller number actually on a “no ﬂy” list who are forbidden to board a plane. Now, under a program called Secure Flight, the federal government will start making the checks that had been done by 127 international air carriers. In June it took over the watch-list checks from about 60 airlines that
ALEX BRANDON/AP FILE
EFFICIENT: Transportation Security Administration chief John Pistole says the change would allow authorities to track airline reservations for flights headed to the United States soon after a ticket is bought. provide domestic ﬂights in the United States. The TSA administrator, John S. Pistole, said the change would allow the authorities to track airline reservations for ﬂights headed to the United States or within its borders, typically soon after a ticket is purchased. Hypothetically, Pistole said, this would allow them to detect when several peo-
ple whose names are on the watch list book tickets to ﬂy on the same day or to the same city. As a result, in addition to making sure these passengers get extra scrutiny, security ofﬁcials could make sure that an air marshal is assigned to the ﬂight. “It is another layer, an intelligence-based layer of security,” Pistole said. “We
have to try to do the most we can before people get to the airport.” Under Secure Flight, about 99 percent of passengers are cleared to print boarding passes at home or at a selfserve kiosk, without being subject automatically to secondary screening. As ﬁrst conceived, the federal takeover of the watch-list checks was going to include broader background checks like examining the credit records of passengers to try to develop proﬁles of possible terrorists, even if they were not on the ofﬁcial watch list. But civil liberties groups objected, resulting in the scaling down of the ambitions for the program and contributing to delays in starting it. As part of Secure Flight, passengers must provide their date of birth, sex and full legal name — information that must match the identiﬁcation they present at the airport. Ofﬁcials hope this requirement will reduce the number of false matches, which lead to intense scrutiny of passengers with similar names.
Two million lose jobless benefits Two Republicans BY TOM BREEN Associated Press
Extended unemployment beneﬁts for nearly 2 million U.S. citizens begin to run out Wednesday, cutting off a steady stream of income and guaranteeing a dismal holiday season for people already struggling with bills they cannot pay. Unless Congress changes its mind, beneﬁts that had been extended up to 99 weeks will end this month. That means Christmas is out of the question for Wayne Pittman, 46, of Lawrenceville, Ga., and his wife and 9-year-old son. The carpenter was working up to 80 hours a week at the beginning of the decade, but saw that gradually drop to 15 hours before it dried up completely. His last $297 check will go to necessities, not presents. “I have a little boy, and that’s kind of hard to explain to him,” Pittman said. The average weekly unemployment beneﬁt in the United States is $302.90, though it varies widely depending on how states calculate the payment. Because of supplemental state programs and other factors, it’s hard to know for sure who will lose their beneﬁts at any given time. But the Labor Department estimates that, without a Congressapproved extension, about 2 million people will be cut off by Christmas. Congressional opponents of extending the beneﬁts say ﬁscal responsibility should come ﬁrst. Republicans in the House and Senate, along with a handful of conservative Democrats, say they’re open to extending beneﬁts, but not if it means adding to the $13.8 trillion national debt. Even if Congress does lengthen beneﬁts, cash assistance is at best a stopgap
measure, said Carol Hardison, executive director of Crisis Assistance Ministry in Charlotte, N.C., which has seen 20,000 new clients since the Great Recession started in December 2007. “We’re going to have to have a new conversation with the people who are still suffering, about the potentially drastic changes they’re going to have to make to stay out of the homeless shelter,” she said. Forget Christmas presents. What the so-called “99ers” want most of all is what remains elusive in the worst economy in generations: a job. “I am not searching for a job, I am begging for one,” said Felicia Robbins, 30, as she prepared to move out of a homeless shelter in Pensacola, Fla., where she and her ﬁve children have been living. She is using the last of her cash reserves, about $500, to move into a small, unfurnished rental home. Robbins lost her job as a juvenile justice worker in 2009 and her last $235 unemployment check will arrive Dec. 13. Her 10-year-old car isn’t running, and she walks each day to the local unemployment ofﬁce to look for work. Jeanne Reinman, 61, of Greenville, S.C., still has her house, but even that comes with a downside. After losing her computer design job a year and a half ago, Reinman scraped by with her savings and a weekly $351 unemployment check. When her nest egg vanished in July, she started using her unemployment to pay off her mortgage and stopped paying her credit card bills. She recently informed a creditor she couldn’t make payments on a loan because her beneﬁts were ending. “I’m more concerned
hint at hope for Russia arms pact BY PETER BAKER New York Times Service
CRISIS: Wayne Pittman looks over unemployment papers as his extended benefits are set to expire unless Congress extends them. about trying to hang onto my house than paying you,” she told the creditor. Ninety-nine weeks may seem like a long time to ﬁnd a job. But even as the economy grows, jobs that vanished in the Great Recession have not returned. The private sector added about 159,000 jobs in October — half as many as needed to reduce the unemployment rate of 9.6 percent, which the Federal Reserve expects will hover around 9 percent for all of next year. “I apply for at least two jobs a day,” said Silvia Lewis, of Nashville who’s also drained her 401(k) and most of her other savings. “The constant thing that I hear, and a lot of my friends are in the same boat, is that you’re overqualiﬁed.” JoAnn Sampson of Charlotte hears the same thing. A former cart driver at U.S. Airways, she and her husband are both facing the end of unemployment beneﬁts, and she can’t get so much as an entry-level job. “When you try to apply for retail or fast food, they say ‘You’re overqualiﬁed,’ they say ‘We don’t pay that much money,’ they say, ‘You don’t
want this job,’ ” she said. Sampson counts her blessings: At least her two children, a teenager and a college student, are too old to expect much from Christmas this year. Shawn Slonsky’s three children aren’t expecting much either. The 44-yearold electrician in northeast Ohio won’t be able to afford presents or even a Christmas tree. His sons and daughter haven’t bothered to send him holiday wish lists with the latest gizmos and gadgets. Things used to be different. Before work dried up, Slonsky earned about $100,000 a year and he and his wife lived in a three-bedroom house where deer meandered through the backyard. Then he and his wife lost their jobs. Their house went into foreclosure and they had to move in with his 73-year-old father. Now, Slonsky is dreading the holidays. “You don’t even get in the frame of mind for Christmas when things are bad,” he said. “It’s hard to be in a jovial mood all the time when you’ve got this storm cloud hanging over your head.”
WASHINGTON — U.S. President Barack Obama’s hopes of winning Senate approval for a new arms control treaty with Russia by the end of the year have received a boost from two Republican senators, including John McCain. McCain, one of his party’s leading voices on national security, said he thought that Republican concerns over missile defense and nuclear modernization could be resolved in time to vote on the so-called New START treaty during the lame-duck session of Congress this month, as Obama has sought. President Dmitry Medvedev of Russia warned Tuesday that a failure by Russia and the West to reach agreement on missile defense cooperation could provoke a new arms race. In the absence of such cooperation, Medvedev said, Russia would be prepared to deploy “new means of attack.” Missile defense has been among Republicans’ concerns with the treaty, which Obama has called his top foreign policy priority for the congressional session. McCain and others have expressed concern the treaty would limit deployment of a missile shield in Europe, although the pact would not directly restrict current plans. During a NATO summit meeting in November, Obama invited Medvedev to explore participating in the missile defense system. The treaty has also been stalled by Sen. Jon Kyl, McCain’s colleague from Arizo-
na and the lead Republican negotiator, who has sought assurances that the Obama administration is sufﬁciently committed to modernizing the aging U.S. nuclear complex even as it reduces the arsenal. “I believe that we could move forward with the START treaty and satisfy Senator Kyl’s concerns and mine about missile defense and others, and I hope that we can do that,” McCain said on Good Morning America on ABC. Asked if he meant this year, he added: “I would hope so. But Senator Kyl’s concerns are very legitimate, and I think that attempts are being made to address them.” Another Senate Republican, George V. Voinovich of Ohio, also indicated for the ﬁrst time that he might vote for the treaty. Voinovich told The Wall Street Journal that his concerns about Russia’s dominance of its neighbors were assuaged by statements of support for the treaty by Eastern European leaders at the NATO summit meeting. “There seems to be a lot of coming together there and a lot more comfort among our friends and allies in Europe,” Voinovich said. “I think I’d be supportive.” Sen. John Kerry of Massachusetts, the chairman of the Foreign Relations Committee, also suggested that the treaty’s chances were improving. “I believe personally that we can do it,” he said Tuesday at a forum sponsored by Foreign Policy magazine. “I think we will get it done, providing a few small pieces come together in the next few days.”
Residents show support for Oregon mosque after fire BY JEFF BARNARD Associated Press
CORVALLIS, Ore.` — In a steady rain residents here attended a candlelight vigil in support of an Islamic center targeted by an apparent hate crime after a teen who occasionally worshipped there was accused of planning mass killings in Portland. Hundreds of people from this small college town came out for the vigil at the Salman Alfarisi Islamic Center. Elizabeth Oettinger, senior minister of the First Congregational Church United Church of Christ, said a number of religious leaders organized the event to show support for the Muslim community after the center’s ofﬁce was set on ﬁre Sunday. Authorities have said the blaze was the result of arson
and they are investigating whether it was a hate crime, set because Mohamed Osman Mohamud, 19, sometimes worshipped at the center. Mohamud was arrested Friday in an FBI sting on charges he tried to set off a car bomb at a Christmas tree lighting ceremony in downtown Portland, authorities said. He has pleaded not guilty to a charge of attempted use of a weapon of mass destruction. Oettinger said residents lit candles at the charred mosque to show their support for its members. “We wanted to surround it in ﬁre and light in solidarity and friendship,” she said. Corvallis police Capt. Jonathan Sassaman told The Associated Press the ﬁre was
apparently started by someone who broke an ofﬁce window and threw in a container of ﬂammable liquid. He said evidence has been shipped to the FBI crime lab in Quantico, Va., in hopes of ﬁnding ﬁngerprints and DNA, and of identifying the type of liquid used. Rabbi Benjamin Barnett noted the vigil outside the mosque came one day before the start of the Jewish celebration of Hanukkah, the festival of lights. “Truly this is a festival of lights right now,” he said. “The Muslim community — Muslim brothers and sisters standing here now outside your holy place — have been dealt a blow of darkness. The question is, what’s the light in response? And I think I’m looking at it right now.”
12/2/2010 3:55:07 AM
THURSDAY, DECEMBER 2, 2010
THE MIAMI HERALD
Terror-linked arrests in Spain and Thailand BY RAPHAEL MINDER AND J. DAVID GOODMAN New York Times Service
MADRID — The police in Spain and Thailand arrested 10 people suspected of operating a counterfeiting network that provided fake European passports to al Qaeda-linked terrorist groups in order to smooth their entry into Western countries, the Spanish Interior Ministry said Wednesday. Seven people — six Pakistanis and one Nigerian — were arrested in Barcelona in raids late Tuesday and early Wednesday, and three more — two Pakistanis and one Thai — were arrested in Bangkok in the same period, the ministry said in a statement. One of the Pakistanis arrested in Bangkok, a 42-year-old named Muhammad Athar Butt, known as Tony, directed the forging operation from Thailand, according to a Spanish security ofﬁcial. Butt was also in charge of cells in Brussels and London, the security of-
ﬁcial said, speaking on condition of anonymity about a current investigation. The arrests struck at “an important passport operation for al Qaeda, weakening its international counterfeiting apparatus, and therefore, its capacity to operate,” the ministry statement said, adding that the raids came after a year-and-a-half-long international investigation, which is continuing. The police said the network was linked to Lashkar e Taiba, the Pakistan-based terror group behind attacks in Mumbai, India, in November 2008 that killed at least 163 people. The network also provided counterfeit passports and other documents to the Tamil Tigers, the Sri Lankan separatist group defeated in 2009 by the government after decades of war, the police said. The terror organizations would request forged passports from the network according to nationality and age, the authorities said. Members of the network
would then steal passports from tourists, mainly in Barcelona, and send them to Thailand where they were forwarded to the terror groups, they said. The ministry statement hinted at how the plot was discovered, saying that ofﬁcials had “detected the transport to Thailand of numerous passports stolen from Spain.” The raids come at a time of heightened concern among U.S. and European ofﬁcials over a possible terrorist strike in Europe. In October, the U.S. State Department in Washington issued an alert for U.S. travelers to Europe to be vigilant about possible attacks. In uncovering a suspected document forging ring, the arrests in Spain and Thailand offer a window into the shadowy nexus between terrorist organizations and loose criminal networks in Europe and Asia that facilitate terrorist activities by helping provide militants with transportation, weapons or logis-
tical support. Some terrorist groups use in-house facilitators — to raise money, for instance — while they outsource other needs for their illicit operations. Counterterrorism specialists say that disrupting facilitators who provide militants valuable services can sharply disrupt terrorist groups, at least until they ﬁnd replacements. The police seized nine passports awaiting shipment to Thailand and another that had already been forged, along with a computer and 50 cellphones in raids on the suspects’ homes in Raval, a downtown neighborhood that is home to a large immigrant community. Spanish television showed footage of one of the arrests, with a man taken away in handcuffs at dawn by police. The man was heard repeatedly saying, “I’m not a terrorist, that is a lie.” SPANISH NATIONAL POLICE/AP An Interior Ministry ofﬁcial familiar with the case TERROR RAID: Seven people — six Pakistanis and one said further arrests could not Nigerian — were arrested in Barcelona in raids late be ruled out. Tuesday and early Wednesday.
Cables show U.S. focus on Pakistan’s military, nuclear material BY KAREN DEYOUNG AND GREG MILLER Washington Post Service
WASHINGTON — During a visit to Pakistan barely a week before U.S. President Barack Obama’s inauguration, Vice President-elect Joe Biden sought reassurance from Pakistan’s military and intelligence chiefs that they “had the same enemy” as the United States and were prepared to take action against insurgent sanctuaries inside their border. The head of Pakistan’s army, Gen. Ashfaq Kayani, told Biden that the two countries were “on the same page,” although there would inevitably be “tactical differences” in their approaches. Lt. Gen. Ahmad Shuja Pasha, the intelligence chief, said he was hurt that the CIA did not appear to trust him, according to one of dozens of private U.S. diplomatic cables released Tuesday by the website WikiLeaks. Nearly two years later, the administration is still asking the same questions. In the meantime, it has plied Pakistan with aid, worried about
LEAKS SHOW U.S. OPPOSED RELEASE OF NUCLEAR DEALER BY DAVID E. SANGER New York Times Service
WASHINGTON — In early 2008, when rumors ﬂoated that Pakistan was about to release from house arrest Abdul Qadeer Khan, the man who created the world’s largest black market in nuclear technology, the Bush administration stayed silent. Struggling to get Pakistan’s help in the war against al Qaeda, it could not risk reminding the world of a case Pakistani ofﬁcials kept saying was the safety of its nuclear arsenal, and tried to keep its civilian government from falling or being overthrown by the military. The documents, most of which date from 2009, revealed some new elements of the always fraught relationship. Pakistan, which has publicly rejected any U.S. military presence be-
closed. In private, it was a different story. Richard Boucher, the top State Department ofﬁcial for South Asia, wrote on April 10, 2008, that the embassy in Islamabad should “express Washington’s strong opposition to the release of Dr. Khan and urge the Government of Pakistan to continue holding him under house arrest.” Releasing him, he wrote, would “undermine” what Pakistan had done to ﬁght proliferation. “The damage done to international security by yond trainers restricted to speciﬁed bases, secretly authorized as many as 12 U.S. Special Operations commandos to work as advisors to conventional army units in operations in 2009 against insurgents in the tribal belt along the border with Afghanistan. An Oct. 9, 2009, cable from the U.S. Embassy in Islam-
Dr. Khan and his associates is not a closed book,” he wrote, noting that the U.S. and others were still dealing with the Khan network’s sale of technology to Iran and North Korea “and possible other states.” The world, he said, was dealing “with the reality that the uranium enrichment technology and nuclear weapons designs that were sold to Libya are now available to other states and non-state actors.” Khan was released 10 months later. abad described the arrangement as a “sea change” in Pakistani military attitudes. It noted that “previously, the Pakistani military leadership adamantly opposed letting us embed our special operations personnel with their military forces.” The U.S. personnel would “provide intelligence, surveillance, and reconnais-
POLICE ARREST 153 DURING LONDON STUDENT RALLY
sance support and general operations advice,” including “a live downlink of unmanned aerial vehicle full motion video” to Pakistan’s 11th Corps, the unit responsible for operations in the tribal areas that are insurgent sanctuaries. It is not clear from the cable how many, if any, of the special forces advisors were put in place. The security of Pakistan’s nuclear arms was a recurring theme in the released cables, beginning with a December 2008 U.S. intelligence brieﬁng to NATO noting, “Despite pending economic catastrophe, Pakistan is producing nuclear weapons at a faster rate than any other country in the world.” In a cable to brief the new Obama administration before Kayani’s February 2009 visit to Washington, U.S. Ambassador Anne Patterson said that “our major concern has not been that an Islamic militant could steal an entire weapon, but rather the chance someone working in [government weapons]
Cables laud French leader despite ‘mercurial’ side BY KATRIN BENNHOLD New York Times Service
Several thousand British students demonstrated in London on Tuesday against proposed university tuition hikes, officials said. Police reported the arrests following a day of cat-and-mouse between demonstrators and riot officers that culminated in a violent standoff in the capital’s Trafalgar Square.
Bitter cold kills 8, hits air traffic in Europe BY FRANK JORDANS Associated Press
GENEVA — Heavy snow and subzero temperatures swept across Europe, killing at least eight homeless people in Poland, closing major airports in Britain and Switzerland and causing hundreds of highway accidents. Gatwick, London’s second largest airport, and Geneva, a major hub for low-cost carrier Easyjet, were forced to shut down Wednesday as staff struggled to clear run-
ways of snow. Edinburgh airport in Scotland, Leeds airport in northern England, and Chambery and Grenoble in southeastern France also were closed. Eurocontrol, the central air control agency, reported severe ﬂight delays in Brussels, Frankfurt and Munich in Germany, Vienna, Prague in Czech Republic and Paris Orly. In Poland, police said eight men died Tuesday night after a bitter cold front
roared in, with temperatures falling to around -4 Fahrenheit. Police spokesman Mariusz Sokolowski said the men, from different parts of the country, had been drinking. The eastern Polish city of Bialystok hit -15 Fahrenheit on Tuesday night. Winter weather caused some 2,000 accidents on German roads Tuesday, ofﬁcials said. In northern Austria, police said a 69-year-old retiree froze to death overnight when he slipped on a
snow-covered bridge on his way home from a funeral and lost consciousness. Ofﬁcials at Gatwick, south of London, said the airport would remain closed until early Thursday, stranding about 600 ﬂights that were expected to leave Wednesday. Gatwick was under ﬁve to six inches of snow Wednesday morning and has seen continuous snowfall throughout the day, said spokeswoman Andrea Hopkins.
facilities could gradually smuggle enough ﬁssile material out to eventually make a weapon and the vulnerability of weapons in transit.” In May 2009, Patterson reported that Pakistan had reneged on an agreement to allow the United States to remove an aging stockpile of highly enriched uranium at a research nuclear reactor. The Pakistanis worried, she said, that the media would get wind of the removal and “portray it as the United States taking Pakistan’s nuclear weapons.” The following month, in a brieﬁng prepared for a visit by then-national security advisor James Jones, Patterson said Pakistan had gone “on the defensive” about its arsenal after international media’s reporting about U.S. concerns. In the cables, Pakistani ofﬁcials complain about a U.S. civil nuclear accord with India, their traditional adversary, and note that its provisions will allow Indians to divert materials to their own weapons program.
PARIS — President Nicolas Sarkozy is an unusually solid French friend of the United States. He is also a “mercurial” man operating in “a zone of monarch-like impunity” surrounded by advisors often too fearful to give honest counsel, according to leaked cables from the U.S. Embassy in Paris. Last December, the U.S. ambassador shared an anecdote with U.S. Secretary of State Hillary Clinton: When the mayor of Paris had the Eiffel Tower lighted in Turkey’s national colors for a visit by Prime Minister Recep Tayyip Erdogan in April 2009, aides to Sarkozy, a staunch opponent of Turkey’s entry to the European Union, rerouted the presidential plane so he would not see it. “Elysee contacts have reported to us the great lengths they will go to avoid disagreeing” with Sarkozy “or provoking his displeasure,” said the cable, signed by Ambassador Charles Rivkin. It was part of a trove of documents obtained by WikiLeaks. Five years of correspondence between Paris and Washington chronicle a spectacular post-Iraq turnabout between one of the West’s most complicated diplomatic couples. Sarkozy, who took ofﬁce in May 2007, was described even in 2009
as “the most pro-American French president since World War II” and a “force multiplier” for U.S. foreign policy interests. But the cables also convey a nuanced assessment of the French leader as a somewhat erratic ﬁgure with authoritarian tendencies and a penchant for deciding policy on the ﬂy. By January 2010, U.S. diplomats wrote of a highmaintenance ally sometimes too impatient to consult with crucial partners before carrying out initiatives, one who favors summit meetings and direct contacts over traditional diplomacy. In general, few foreign policy disagreements surface between France and the United States under Sarkozy. A major difference, however, concerns Turkey, with Washington a fervent supporter of Turkey’s ambition to join the European Union and fretful that Sarkozy’s opposition threatens to “antagonize a strategic ally.” The delight among U.S. diplomats at the arrival of a self-professed pro-U.S. candidate after years of difﬁcult relations with Jacques Chirac was evident in correspondence well before Sarkoy’s election. In 2005, Sarkozy, then the interior minister, told Craig Stapleton, then the U.S. ambassador, that although he would have advised against the Iraq invasion he still felt it “personally when American soldiers die in combat.”
12/2/2010 5:28:36 AM
THE MIAMI HERALD
THURSDAY, DECEMBER 2, 2010
OPINION CHARLES D. SHERMAN, EDITOR-IN-CHIEF
European Union: R.I.P? Moreover, the Germans, who will have to cough up more euros for any new fund to rescue hen communism collapsed the governments and banks of in Moscow, Prague and nations that are neither as conBelgrade at the end of the Cold scientious nor work as hard as War, ethnic nationalism surged they, are fed up with bailing out to the surface in all three na- the La Dolce Vita nations of tions and tore them apart into Club Med. If Merkel does not 24 countries. mirror the mood of her people, Economic nationalism is now her CDU could ﬁnd itself out in resurgent across Europe. And it the cold. is hard to see how a transnational These bailouts come with institution like the Europainful conditions. The pean Union, run by facegovernments rescued less bureaucrats, and the must cut deﬁcits and 16-nation eurozone it credebt, which translates ated long survive. into cuts in public salaAs of Monday, Greece ries and services affecting and Ireland had been the middle classes, stubailed out — Greece with dents, the vulnerable and $145 billion, Ireland with the poor. $89 billion. All eyes have BUCHANAN Yet though the time now turned to Iberia, to of austerity has only just Portugal and Spain, where bond begun, there have been mass proprices are sinking and interest tests in Dublin, riots in France, rates are rising, and investors are anarchist assaults on Tory Party eying the exits. headquarters in London and leThis storm is far from over. thal violence in Athens. And Why cannot a series of bailouts, while austerity may be necescobbled together by the Europe- sary to restore ﬁscal and ﬁnancial an Union and International Mon- health, austerity alone cannot reetary Fund, contain these serial store prosperity. crises? That will take years. Two reasons: populism and a Which returns us to the charreturn of economic nationalism. acter of the people of Europe Consider two telling com- upon whom these stringencies ments from the Irish about the are being imposed. terms of the bailout of their How long will Greeks, Irish, country. Portuguese, Spanish, British, “Senior bank bondholders French and others, facing a savare to be protected, while the aging of social safety nets, accept lowest paid and those most vul- austerity, without searching for nerable people dependent on populist candidates and parties public provision are to be cruci- who will default on the debt and ﬁed,” said trade union leader Jack let banks go under? O’Connor. Why not break free of the dis“I think the government should cipline of the euro, restore the default on the bonds,” said writer old national currency, devalue Valerie Wilson. “We are suffering and stiff the creditors? Argentina so the bondholders don’t suffer. did it. It’s capitalism gone mad.” If one or two of these counTranslation: Put Irish people tries, even the smaller ones, ﬁrst, before any foreigners hold- default, the United States may ing bonds. not be directly affected, as we Angela Merkel, whose Germa- own little of the debt of these ny is fronting much of the bailout countries. But what if the big money, has been demanding that banks of Europe face wipeouts bondholders take a haircut — lose of capital and equity due to some of the face value of their defaults? bonds — in all future bailouts. Are U.S. banks so well insuSunday, the European Union lated from Europe’s that their end agreed to consider it for all bail- of the boat can sink and ours stay outs after 2012. But we may not aﬂoat? The Credit Anstalt crisis get there before nervous inves- of 1931 leapt from Austria to Gertors decide to dump their bonds many to Japan to Britain to the ﬁrst and the European house of United States. cards comes crashing down. How long will Germans play For if bondholders know they the “good Europeans” and use will be among the ﬁrst victims their savings and a solid credit burned in bailouts in 2013, they rating earned through years of may suspect a singeing even be- sacriﬁce to bail out deadbeat nafore then. tions whose welfare states are This will impel them to start more lavish than their own? Afshedding the bonds of any nation ter constant repetition, the Three with deﬁcit and debt problems, Musketeers’ slogan of “all for one, which will deepen those deﬁcit and one for all” can get rather and debt problems. tiresome. While the EU-IMF bailout Having seen how the Asian fund is now sufﬁciently ﬂush to crisis of the 1990s leapt from handle a Portugal, Madrid has an country to country and contieconomy twice the size of Greece, nent to continent, it is hard to Ireland and Portugal combined. believe the European debt-deIf Spain is forced into a bailout, fault crisis stops with Ireland and and Italy, which has a huge debt, Greece. totters, a European panic is on — As Dubya once said, “Boys, and a global panic may not be far this looks like a ﬁve-spiral behind. crash.”
BY PATRICK J. BUCHANAN
Washington Post Service
The fragile community BY DAVID BROOKS New York Times Service
ulian Assange, the founder of WikiLeaks, had moved 37 times by the time he reached his 14th birthday. His mother didn’t enroll him in the local schools because, as Rafﬁ Khatchadourian wrote in a New Yorker proﬁle, she feared “that formal education would inculcate an unhealthy respect for authority.” She needn’t have worried. As a young computer hacker, he formed a group called International Subversives. As an adult, he wrote “Conspiracy as Governance,” a pseudo-intellectual online diatribe. He talks of vast “patronage networks” that constrain the human spirit. Far from respecting authority, Assange seems to be an oldfashioned anarchist who believes that all ruling institutions are corrupt and that public pronouncements are lies. For someone with his mindset, the decision to expose secrets is easy. If the hidden world is suspect, then everything should be revealed. As The New Yorker reported, WikiLeaks has published technical details about an Army device designed to prevent roadside bombs from detonating. It posted soldiers’ Social Security numbers. This week, the group celebrated the release of internal State Department documents with a triumphalist statement claiming that the documents expose the corruption, hypocrisy and venality of U.S. diplomats. For him, it’s easy. But for everyone else, it’s hard. My colleagues on the news side of this newspaper do not share Assange’s mentality. As the various statements from the editors have made abundantly clear, they face a much thornier set of issues. As journalists, they have a professional obligation to share information that might help people make informed decisions.
That means asking questions like: How does the U.S. government lobby allies? What is the real nature of our relationship with Pakistani intelligence? At the same time, as humans and citizens, my colleagues know they have a moral obligation not to endanger lives or national security. The Times has thus erected a series of ﬁlters between the 250,000 raw documents that WikiLeaks obtained and complete public exposure. The paper has released only a tiny percentage of the cables. Information that might endanger informants has been redacted. Speciﬁc cables have been put into context with broader reporting. Yet it might be useful to consider one more ﬁlter. Consider it the World Order ﬁlter. The fact that we live our lives BROOKS amid order and not chaos is the great achievement of civilization. This order should not be taken for granted. This order is tenuously maintained by brave soldiers but also by talkative leaders and diplomats. Every second of every day, leaders and diplomats are engaged in a never-ending conversation. The leaked cables reveal this conversation. They show diplomats seeking information, cajoling each other and engaging in faux-friendships and petty hypocrisies as they seek to avoid global disasters. Despite the imaginings of people like Assange, the conversation revealed in the cables is not devious and nefarious. The private conversation is similar to the public conversation, except maybe more admirable. Israeli and Arab diplomats can be seen reacting sympathetically and realistically toward one another. The U.S. ofﬁcials in the cables are generally savvy and honest. Iran’s neighbors are
properly alarmed and reaching out. Some people argue that this diplomatic conversation is based on mechanical calculations about national self-interest, and it won’t be affected by public exposure. But this conversation, like all conversations, is built on relationships. The quality of the conversation is determined by the level of trust. Its direction is inﬂuenced by persuasion and by feelings about friends and enemies. The quality of the conversation is damaged by exposure, just as our relationships with our neighbors would be damaged if every private assessment were brought to the light of day. We’ve seen what happens when conversations deteriorate (look at the U.S. Congress), and it’s ugly. The WikiLeaks dump will probably damage the global conversation. Nations will be less likely to share with the United States. Agencies will be tempted to return to the pre-9/11 silos. World leaders will get their back up when they read what is said about them. Cooperation against Iran may be harder to maintain because Arab leaders feel exposed and boxed in. This fragile international conversation is under threat. It’s under threat from anarchistic vandals like WikiLeaks. It’s under threat from a Gresham’s Law effect, in which the level of public exposure is determined by the biggest leaker and the biggest traitor. It should be possible to erect a ﬁlter that protects not only lives and operations but also international relationships. It should be possible to do articles on speciﬁc revelations — Is the United States using diplomats to spy on the United Nations? What missile technology did North Korea give to Iran? — without unveiling in a wholesale manner the nuts and bolts of the diplomatic enterprise. We depend on those human conversations for the limited order we enjoy every day.
Significance of the Communist Party in Cuba JAIME SUCHLICKI McClatchy News Service
eneral Raul Castro recently announced that the Cuban Communist Party will hold its sixth party Congress in April 2011. Although legally Congresses must be held every ﬁve years, the last Congress was in 1997. It is signiﬁcant that the announcement was made by Raul, second secretary of the Party and not by Fidel, the ﬁrst secretary. This may indicate the ﬁnal stages of a succession that has been taking place for the last few years. Fidel is likely to announce his resignation before April, opening the door for his brother to become ﬁrst secretary and thus assume all major positions in Cuba’s political structure. But what is the signiﬁcance of the Communist Party in Cuba and why a Congress in 2011? Of the
three institutional pillars of most Communist regimes, the party, the military, and the security apparatus, in Cuba the party seems the least important. Fidel Castro always disliked institutions. His style of leadership was personal, Stalinist, and caudillista, and he viewed institutions as instruments to carry “his” policies rather than as policymaking bodies. He has never been a strong vocal advocate of the party. The Communist Party (the old PSP) played a small role in the revolutionary victory and was victimized by Castro in the early years of the revolution. Castro, unlike European communist leaders, did not rise to power through the party ranks nor did he owe his successes to the party machinery. Even as the new Communist Party of Cuba was organized in 1965, it was a Castro cre-
ation, an attempt to legitimize an already existing Communist regime. Since 1965 the relevance of the party has been limited. While major decisions in Cuba are discussed and made at the Party Politburo, Castro, and his brother have dominated the Party. Congresses have been held at irregular intervals and then only to discuss and ratify preapproved policies. The military, which preceded the party in its organization and development, is now not only independent from the party but superior to it. Neither military personnel policy nor military doctrine and internal control is handled by the party. Increasingly, military ﬁgures have taken key positions not only in the Politburo but in other key party positions. The militarization of the party is consistent with the mili-
tarization of society and the economy. In distinct contrast to his brother, Raul has nurtured the development of the Party and seems to believe that institutions, beyond the military and the security apparatus, are necessary to support his regime and to carry on policies. Especially at this critical and difﬁcult juncture, the party is needed to help the military in implementing the economic adjustments decreed by Raul. The party is an important organization to retrain and channel the more than 500,000 workers being ﬁred by the State. Vigilance, education, and control are functions that Communist parties have traditionally performed in other countries and will continue to perform in Cuba. It is expected that the set of ad-
justments announced by the Cuban government will be adopted at the Congress with little opposition or discussion. One interesting possibility is the appointment of Raul’s only son, Alejandro Castro Espin, to a key Party position. A colonel in Cuba’s Ministry of the Interior and a rising star in Cuba’s hierarchy, Alejandro is young, ambitious and may be being groomed as a future successor. It is yet too early to tell whether the North Korean model is well and alive in Cuba! Jaime Suchlicki is a professor and director at the Institute for Cuban and Cuban-American Studies, University of Miami. He is the author of Cuba: From Columbus to Castro; Mexico: From Montezuma to NAFTA, and the recently published Breve Historia de Cuba.
12/2/2010 12:17:46 AM
THURSDAY, DECEMBER 2, 2010
THE MIAMI HERALD
Miami Existing Single-Family Homes Prices Jump 12 Percent in October In the Miami Metropolitan Statistical Area (MSA), the median sales price of single-family homes in October increased 12 percent to $199,100 from a year earlier, according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS). Miami was one of only three home markets and the only major metropolitan area in Florida posting an increase for median sales price of single-family homes. Compared to the previous month, the median sales price rose six percent. â€œRising median sales prices reďŹ‚ect strengthening and stability of the Miami real estate market,â€? said Jack H. Levine, 2010 Chairman of the Board of the MIAMI Association of REALTORS. â€œMiami continues to outperform the rest of the state and the nation due to strong demand from all types of buyers.â€? Unlike single-family homes, the median sales price of condominiums in the Miami MSA dropped 22 percent in October, to $107,700, compared to the same month last year but increased more than eight percent compared to the previous month.
Home and Condominium Sales
in October decreased a negligible 2.1 percent from the previous year to $273,697 for single-family homes and decreased 17 percent to $195,095 for condominiums. However, compared to the previous month, the average sales increased two percent for single-family homes and 3.4 percent for condominiums. Short sales and foreclosures are continuing to have an impact on median and average sales prices for both single-family homes and condominiums especially in some areas of the county.
Days on the Market and Inventory Levels Continue to Drop The inventory of residential listings in Miami-Dade County dropped 7.1 percent from 26,134 to 24,290 since November 2009, according to the SEFMLS. Compared to last month, the total inventory of homes dropped one percent. Compared to October 2009, the average days a property stays on the market decreased 12.4 percent to 90 for singlefamily homes and 17.4 percent to 106 for condominiums.
The sales of existing single-family homes in the Miami MSA decreased only four percent to 546 compared to October 2009 but were 21 percent higher than they were in October 2008. The Miami real estate market experienced rising residential sales since August 2008, posting increases for 23 consecutive months.
â€œWe continue to observe positive signs in the Miami market, and international buyers continue to fuel market strengthening,â€? said 2010 MIAMI Association of REALTORS Residential President Oliver Ruiz. â€œWhile distressed properties continue to affect home values, especially for condominiums, we expect home values to improve as excess inventory is absorbed.â€?
In the Miami MSA, condominium sales increased 17 percent to 757 compared to October 2009 and 72 percent compared to two years ago, when sales were already rising. This was the highest increase in condominium sales of any major metropolitan area in Florida.
Broward Median Home Sales Price Continues to Rise
Average Home Prices Average sales prices, which have increased consistently over the last few months, decreased in October. According to the SEFMLS, the average sales price of properties that sold in Miami-Dade County
The median sales price of single-family homes in the Fort Lauderdale MSA increased three percent to $217,900 compared to October 2009. The median sales price for condominiums was $67,500, down 19 percent from a year ago.
Home and Condominium Sales Residential sales in Broward County fell in October, but are still stronger than they were two years ago when they began climbing. In Broward County, single-family home sales decreased 28 percent compared to October 2009, according to MIAMI. Condominium sales dropped 20 percent in October, but were a signiďŹ cant 34 percent higher than they were two years ago. The Broward County real estate market experienced rising residential sales for nearly two years, beginning in August 2008. â€œThe current real estate market in Broward offers important opportunities for all types of buyers,â€? said Terri Bersach, 2010 president of the Broward County Board of Governors of the MIAMI Association of REALTORS. â€œRecord affordability, a wide selection of properties to choose from, and the lowest interest rates in decades make now an excellent time to buy a home. Waiting to buy could result in higher interest rates, meaning buyers could end up paying thousands of dollars more for the same property.â€?
Average Home Prices Average sales prices, which have increased consistently over the last few months, rose again in October for single-family homes but dropped for condominiums. According to the SEFMLS, the average sales price in Broward County in October increased 4.5 percent from the previous year to $265,168 for single-family homes and decreased 12.2 percent to $111,865 for condominiums.
â€œDistressed properties continue to impact the Broward County real estate market and home values in the area,â€? said Natascha Tello, president-elect of the Broward County Board of Governors of the MIAMI Association of REALTORS. â€œBut distressed properties are also creating opportunities for buyers who may have been priced out of the market before.â€?
Florida Market According to Florida Realtors, statewide median sales prices decreased three percent to $136,600 for single-family homes and 22 percent to $82,400 for condominiums. Statewide sales dropped ďŹ ve percent to 5,147 for condominiums and 21 percent for single-family homes to 11,888.
National Market Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 2.2 percent from September and are 25.9 percent below October 2009, according to the National Association of Realtors (NAR). Total housing inventory at the end of October fell 3.4 percent from the previous month. MIAMI Association of REALTORSÂŽ Representing 23,000 Real Estate Professionals Property Information in 19 Languages WWWMIAMIRECOM s INFO MIAMIRECOM
Days on the Market and Inventory Levels Decrease The inventory of residential listings in Broward County dropped 8.6 percent from 21,832 to 19,947 since October 2009, according to the SEFMLS. Compared to last month, the total inventory of homes decreased 2.2 percent. The average days a property stays on the market decreased 1.9 percent to 91 for single-family homes and one percent to 101 for condominiums.
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BUSINESS&SPORTS B THURSDAY, DECEMBER 2, 2010
ECB steps up role in debt crisis
THE MARKETS DOW 30
10-YR NOTE CRUDE OIL
Stocks soar on good jobs report
BY PAN PYLAS Associated Press
BY DAVID K. RANDALL AND MATTHEW CRAFT Associated Press
NEW YORK — Stocks started December with a jump. The Dow Jones industrial average rose 249 points Wednesday, its biggest one-day gain since Sept. 1 and the sixth largest this year. An encouraging employment report and hopes that Europe’s debt crisis may ease boosted major indexes on Wednesday, erasing nearly two weeks of losses. Bond prices and the dollar fell as investors moved money into riskier assets. The Dow Jones industrial average rose 249.76, or 2.3 percent, to 11,255.78. It was the largest point gain since Sept. 1, when stocks began rallying on expectations the Federal Reserve would move to lift economic growth. The Dow continued climbing until it hit this year’s high on Nov. 5, two days after the Fed put the $600 billion stimulus plan in motion. Even with Wednesday’s gains, the Dow is still 1.7 percent below its Nov. 5 close. The index is up 7.9 percent so far this year. The Standard & Poor’s 500 index rose 25.52, or 2.2 percent, to 1,206.07. The Nasdaq composite rose 51.20, or 2.1 percent, to 2,549.43. Signs that the U.S. job market thawed in November jumpstarted the gains. More encouraging news followed throughout the day. The Institute of Supply Management said its index of manufacturing activity rose in November for the 16th month. The Federal Reserve then said the U.S. economy improved in 10 of the Fed’s 12 regions. Only the Philadelphia and St. Louis regions reported mixed economic conditions. All 10 industry groups that make up the S&P 500 index were higher, led by energy, industrial and technology companies. And all 30 stocks in the Dow index rose, led by Home Depot, whose shares rose 4.6 percent. United Technologies rose 4 percent and Alcoa 3.4 percent. Rising stocks outpaced falling ones by four to one on the New York Stock Exchange. Consolidated volume was 4.4 billion shares. Bond prices fell sharply, pushing their yields higher. The yield on the 10-year Treasury bond rose to 2.97 percent from 2.80 percent late Tuesday. That yield is a widely used benchmark for loans including mortgages. European stocks got a boost after European Central Bank President Jean-Claude Trichet suggested that the bank could buy bonds issued by countries within the European Union. That, along with a better-thanexpected bond auction by Portugal, pushed the euro higher. The Euro Stoxx 50, which tracks blue chip companies in Europe, rose 2 percent. Stocks rose in Asia on signals that the Chinese economy is growing. A Chinese state index of manufacturing activity indicated that the country’s economy expanded for the 21st straight month. Hong Kong’s Hang Seng rose 1.1 percent. China’s benchmark Shanghai Composite Index rose 0.1 percent. Stocks have fallen in Asia since early November after China raised a key interest rate to combat inﬂation.
SPACE GURU: ‘Living in a small house like this entails knowing what you need to be happy and getting rid of everything else,’ says Jay Shafer, co-founder of the Small House Society.
SMALL WONDERS TINY HOUSES THRIVE AMID REAL ESTATE BUST BY TERENCE CHEA Associated Press
GRATON, Calif. — As the United States downsizes in the aftermath of a colossal real estate bust, at least one tiny corner of the housing market appears to be thriving. To save money or simplify their lives, a small but growing number of U.S. citizens are buying or building homes that could ﬁt inside many people’s living rooms, according to entrepreneurs in the small house industry. Some put these wheeled homes in their backyards to use as ofﬁces, studios or extra bedrooms. Others use them as mobile vacation homes they can park in the woods. But the most intrepid of the tiny house owners live in them full-time, paring down their possessions and often living off the grid. “It’s very un-American in the sense that living small means consuming less,” said Jay Shafer, 46, co-founder of the Small House Society, sitting on the porch of his wooden cabin in California wine country. “Living in a small house like this really
and lived in it full-time until his son was born in 2009. Inside a space the size of an ice cream truck, he has a kitchen with gas stove and sink, bathroom with shower, two-seater porch, bedroom loft and a “great room” where he can work and entertain — as long as he doesn’t invite more than a couple guests. He and his family now live in relatively sprawling 500-square foot home next to the tiny one. Shafer, co-owner of the Tumbleweed Tiny House Company, designs and builds miniature homes with a minimalist style that prizes quality over quantity and makes sure no cubic inch goes to waste. Most can be hooked up to public utilities. The BEN MARGOT/AP houses, which pack a range of WANT NOT WASTE NOT: Stephen amenities in spaces smaller than Marshall, of Petaluma, Calif., some people’s closets, are sold started Little House On The for $40,000 to $50,000 readyTrailer after the real estates made, but cost half as much if market tanked 3 years ago. you build it yourself. Tumbleweed’s business has entails knowing what you need grown signiﬁcantly since the to be happy and getting rid of housing crisis began, Shafer said. everything else.” He now sells about 50 blueprints, Shafer, author of The Small which cost $400 to $1,000 each, House Book, built the 89-squarefoot house himself a decade ago • TURN TO TINY HOUSES, 2B
LONDON — The European Central Bank appears set to keep its special measures to ﬂood banks with cash and could even step up purchases of government bonds to help countries contain a debt crisis that threatens to spiral out of control even after last weekend’s bailout of Ireland. A new boost for the European economy from Thursday’s ECB meeting would be a far cry from what was planned just a week or two ago — and certainly was not on the agenda at November’s gathering. Expectations the bank will step up its efforts, while keeping its benchmark interest rate unchanged at the record low of 1 percent, are one sign of how quickly the debt crisis has sharpened worries that a ﬁnancially weak member of the eurozone such as Portugal might join Greece and Ireland in needing a bailout — and, even more dangerous, that larger countries such as Spain might run into trouble as well. After November’s policy meeting, ECB President Jean-Claude Trichet gave every indication that the central bank was looking at calling time on several props for the ﬁnancial system introduced since the crisis took hold in August 2007. Since Trichet’s last postmeeting press conference on Nov. 4, the markets have dealt the 16-country eurozone a series of blows that have once again called into question the future of the euro currency itself. The market pressure grew more and more acute on Ireland, eventually forcing its embattled government to follow Greece and request a multibillion bailout from its partners in Europe and the International Monetary Fund. The response to its ¤67 billion ($89 billion) bailout has been lukewarm at best as investors fret • TURN TO BANK, 2B
Democrats’ dwindling options on tax cuts BY DAVID LEONHARDT New York Times Service
emocrats have left themselves in a tough spot on the Bush tax cuts. After delaying the issue until after the election and then being trounced in that election, they ﬁnd themselves with little leverage. If they cannot come up with a plan that can win 60 votes in the Senate, which means at least two Republican votes, Republicans can ﬁlibuster any bill. All of the tax cuts would then expire on Dec. 31. When the new Repub-
lican House majority arrives in January, it will be able to make its ﬁrst order of business a retroactive tax cut — forcing U.S. President Barack Obama and Senate Democrats to choose between a purely Republican plan and an across-the-board tax increase. So the big question is whether Democratic leaders can come up with any compromise that centrist Democrats and a couple of Republican senators — Scott Brown, who represents liberal Massachusetts? George Voinovich
of Ohio, who is retiring? — are willing to accept. Much of the recent commentary about the tax cuts has skipped over this political reality. Instead, it’s focused on how tough the Democrats should be and whether they should insist on the expiration of all the Bush tax cuts on income above $250,000 a year. That’s no longer one of their options, though. Unless they believe they will beneﬁt more than Republicans from a standoff in which taxes go up, which is hard to believe with a Democrat in the
White House, their only choice now is among various versions of retreat. A small group of Obama administration ofﬁcials and lawmakers from each party will be negotiating over the next few days, with two possibilities getting the most attention. The ﬁrst is a millionaire’s tax, in which the Bush tax cuts would be extended only on income below $1 million. This would raise only half as much as Obama’s proposal — allowing the • TURN TO TAX CUTS, 2B
Fed papers show breadth of emergency measures BY SEWELL CHAN AND JO CRAVEN MCGINTY New York Times Service
short-term IOUs that corporations rely upon to make payroll and pay their suppliers. During the worst moments of the crisis, in the fall of 2008, even creditworthy corporate borrowers found this source of ﬁnancing had dried up, and had to turn to the Fed for help. While most of the Fed’s commercial paper purchase were made in the ﬁrst few weeks after the program opened on Oct. 27, 2008, the central bank had to buy nearly as much in January 2009 and only slightly less in March 2009. Indeed, the Fed was still supporting the market for commercial paper well into the summer of 2009 — even as the recession ofﬁcially came to an end. In total, the documents released Wednesday on the Fed’s website
WASHINGTON — The Federal Reserve released documents Wednesday showing that its efforts to help stabilize the markets at the height of the ﬁnancial crisis reached far beyond Wall Street and deep into the economy. The disclosures reveal the extent that corporations relied on the Fed to ﬁnance day-to-day operations. The crisis in the market for commercial paper, the lifeblood of daily business, was more extensive and lasted longer than was previously known. Even bedrock corporations like Caterpillar, General Electric, Harley Davidson, McDonald’s, Verizon and Toyota relied on a Fed program that supported the market for commercial paper — the • TURN TO PAPERS, 2B
MIAMI HERALD WIRE PHOTOS
BREATHING LIFE: Even bedrock corporations like Caterpillar, General Electric and McDonald’s among others relied on a Fed program that supported the market for commercial paper.
12/2/2010 5:14:55 AM
THURSDAY, DECEMBER 2, 2010
Couple accused of leaking inside data about firms BY PETER LATTMAN New York Times Service
The U.S. federal government’s crackdown against what it considers illegal insider trading has advanced with one arrest and a lawsuit brought by the Securities and Exchange Commission against a husband and wife formerly employed by the consulting ﬁrm Deloitte Tax. In the lawsuit, the commission accused the couple, Arnold and Annabel McClellan of San Francisco, of leaking conﬁdential information about at least seven mergers and acquisitions to family members living overseas in a conspiracy that netted about $20 million. The SEC is seeking ﬁnancial penalties and the disgorgement of illicit proﬁts. “The McClellans might have thought that they could conceal their illegal scheme by having close relatives make illegal trades offshore,” said Robert S. Khuzami, the commission’s enforcement director, in a statement. “They were wrong.” The Justice Department, working closely with the SEC, indicted McClellan last week on charges that she obstructed the investigation. On Tuesday, the indictment was unsealed and she was arrested. A related criminal case
was brought Friday by the Financial Services Authority of Britain against ﬁve people on the receiving end of the McClellans’ illegal tips, according to authorities. The British authority charged ﬁve people, including Miranda and James Sanders, McClellan’s sister and brother-inlaw, with trading in advance of the deal announcements. In the case against the McClellans, the SEC contends that McClellan, a 51-year-old mergers and acquisitions tax partner at Deloitte, told his wife about pending acquisitions, and she in turn passed them on to the Sanders in London. The Sanders then traded on the information. The scheme gradually snowballed, and Sanders began passing the tips to his father and to colleagues at his trading ﬁrm. McClellan, 38 and previously an employee at Deloitte, received kickbacks from her relatives in Britain on the illicit trades, the complaint says. McClellan worked on a number of prominent deals for marquee clients including Microsoft and the private equity ﬁrm Hellman & Friedman. He is accused of passing on illegal tips about Microsoft’s 2007 acquisition of aQuantive for $6 billion.
THE MIAMI HERALD
ECB takes center stage in crisis • BANK, FROM 1B
about the possibility that other countries will get dragged into the bond market mire and ﬁnd themselves unable to borrow in the money markets. Portugal is most people’s candidate to be the next bailout recipient — if there is one — but the real fear in the markets is that Spain could be vulnerable too. Most analysts think European authorities can handle bailing out the relative minnows of Greece, Ireland and Portugal, but Spain — at around 12 percent of the eurozone economy — would be different matter altogether. It’s this worry primarily that has hit the euro hard over recent days. On Tuesday, it sank to $1.2968, its lowest since midSeptember. At November’s meeting, the euro was trading at a ten-month high of $1.4281 and all the talk in the markets was that the U.S. and China were weakening their currencies — anyone remember talk of a currency war? — squeezing up the value of the euro, to the potential detriment of Europe’s exporters. The hope, at least among those who think that the markets are currently massively overreacting by selling off government bonds, is that the ECB can instill some conﬁdence, or at least some sense of balance. The ECB effort to buy bonds would support prices, and drive down yields — the borrowing costs that governments would face next time they tap the bond market to roll over their debt
GEORGES GOBET/AFP-GETTY IMAGES
AT WORK: European Central Bank President Jean-Claude Trichet conducts a meeting with the European Parliament Committee on Economic and Monetary Affairs in November in Brussels. loads. Excessive yields can effectively cut off a country from borrowing, leaving it staring default in the face unless it gets a bailout. “The hope would be that the ECB will ﬁll the role of air-trafﬁc controller, talking the market down to a soft landing,’’ said Daragh Maher, an analyst at Credit Agricole. As a result, there are expectations that the ECB will refrain from discontinuing special liquidity measures for banks and may actually announce additional liquidity support over a longer period. Markets are looking to see if the ECB will act even more boldly and indicate that it will step up its purchases of government bonds begun in May under its Securities Markets Program
to at least stop bond prices from falling and yields from rising. So far, it has splashed out around ¤65 billion in direct bond purchases. The market impact was already being felt Wednesday — talk of a potential increase in the bond-purchase program has helped ease the pressure on Portuguese, Spanish and Italian bonds and helped the euro clamber up above $1.30. Though the ECB may announce its broad intention, few analysts think it will be as explicit as the Federal Reserve, which last month announced its second major foray into the bond markets. It revealed that it was spending $600 billion over eight months in an attempt to get market yields down.
“The ECB has always refrained from making disclosure about details of the Securities Markets Programme, and we think that greater signs of generalized panic in the market would be required for them to make a U-turn on their purchase strategy,’’ said Marco Valli, chief eurozone economist at UniCredit Bank. A “shock and awe’’ announcement on purchases with a speciﬁc numerical target is also unlikely for other reasons, said Valli. Valli said it would be difﬁcult to reach a consensus on the governing council for that kind of big move, especially as German governing council member Axel Weber recently called for the bond buying program to be stopped. Whatever decisions emerge, they will be announced in the context of a generally growing economy. The ECB staff projections are expected to show higher growth and inﬂation expectations for 2011. Despite the mounting sense of doom that has gripped the eurozone this year, it has posted stronger growth than either the United States and Japan despite big divergences among countries. While Germany, Europe’s biggest economy, has prospered from the rebound in global trade and falls in unemployment, the debt-riddled economies of the periphery are barely growing at all, and in the case of Greece, remain mired deep in recession.
Fed papers reveal emergency measures Tiny houses thrive • PAPERS, FROM 1B
offer insight into the more than 21,000 emergency loans and $3 trillion in liquidity that the Fed provided to investment banks, foreign central banks and a number of other institutions. The bulk of the money went out in 2008 during the peak of the crisis. Those efforts were in addition to the central bank’s use of monetary policy to expand the supply of credit to the economy and lower interest rates. The Fed lowered its benchmark shortterm interest rate, the federal funds rate at which banks borrow from each other overnight, to essentially zero in December 2008. And from that month until March 2009, the Fed purchased some $1.7 trillion in mortgage-related assets and Treasury securities to lower long-term interest rates. On Nov. 3, the Fed announced a resumption of its bond-buying strategy, known as quantitative easing, with plans to purchase $600 billion in Treasury securities through June 2011. The data also revealed the global scope of the crisis that followed the collapse of Lehman Brothers in September 2008. The European Central Bank drew heavily on the Fed’s currency swap lines to support dollar-ﬁnanced money markets in
Europe. But nine other central banks, the data show, also made use of the swap lines: Australia, Britain, Denmark, Japan, Mexico, Norway, South Korea, Sweden and Switzerland. From March 2008 to May 2009. the central bank extended nearly $9 trillion in short-term loans to 18 different ﬁnancial ﬁrms — an amount that is more than half of the national economic output of the United States — to ﬁnancial institutions under a program called the Primary Dealer Credit Facility. Previously, the Fed had only revealed that four ﬁrms had tapped the special lending facility, and did not reveal their identities or the loan amounts. The data seems to conﬁrm that Citigroup, Merrill Lynch and Morgan Stanley were coming under severe strain in the weeks following the Lehman Brothers in September 2008. All three ﬁrms tapped the facility on more than 100 occasions. A quick analysis by The New York Times indicates that Citigroup was the greatest beneﬁciary, drawing on a total of $1.8 trillion in loans, followed by Merrill Lynch, which used $1.5 trillion; Morgan Stanley, which drew $1.4 trillion; and Bear Stearns, which used $960 billion. During the crisis, Merrill Lynch was sold to Bank of America
and Bear Stearns was sold to JPMorgan Chase, as storied Wall Street institutions crumbled under the weight of bad loans and excessive leverage. Despite Goldman Sachs’ insistence that it would have been strong enough to survive without a bailout, the bank borrowed a total of $590 billion on at least 52 separate occasions, according to the Fed data. JPMorgan’s investment bank, by contrast, used the special lending facility meagerly. It borrowed a total of $3 billion and turned to the Fed three times. The U.S. subsidiaries of French, German, Swiss and Japanese banks also relied on the program. BNP Paribas of France borrowed $66.4 billion, UBS of Switzerland about $35.4 billion and Mizuhno Securities of Japan about $42.3 billion. The Fed, which took months to compile the data and release it in electronic form by the Dec. 1 deadline, emphasized that most of the programs closed earlier this year and that taxpayers did not incur losses. “The Federal Reserve followed sound risk-management practices in administering all of these programs, incurred no credit losses on programs that have been wound down, and expects to incur no credit losses on the few remaining programs,” the central bank said.
To an unprecedented degree, the Fed created an alphabet soup of loan programs during the crisis. The Fed lent money to giant ﬁnancial institutions, including Goldman Sachs and Morgan Stanley, which converted to bank holding companies to qualify for Fed assistance. The Fed also purchased $1.25 trillion in mortgage-backed securities to prop up the housing market. Through dollar liquidity swap lines, the Fed helped the European Central Bank and other central banks to stabilize overseas markets. With the economy still so fragile, some Fed ofﬁcials have expressed concern that the release of so much data might roil the markets. The Fed emphasized Wednesday that the institutions that used the loan programs did not necessarily have any underlying problems beyond the liquidity crunch that became widespread in 2008. “As ﬁnancial conditions have improved, the need for the broad-based facilities has dissipated, and most were closed earlier this year,” the Fed said. “These facilities were open to participants that met clearly outlined eligibility criteria; participation in them reﬂected the severe market disruptions during the ﬁnancial crisis and generally did not reﬂect participants’ ﬁnancial weakness.”
amid bust in U.S. • TINY HOUSES, FROM 1B
a year, up from 10 ﬁve years ago. The eight workshops he teaches around the country each year attract 40 participants on average, he said. “People’s reasons for living small vary a lot, but there seems to be a common thread of sustainability,” Shafer said. “A lot of people don’t want to use many more resources or put out more emissions than they have to.” Compared to trailers, these little houses are built with higher-quality materials, better insulation and eye-catching design. But they still have wheels that make them portable — and allow owners to get around housing regulations for stationary homes. Since the housing crisis and recession began, interest in tiny homes has grown dramatically among young people and retiring Baby Boomers, said Kent Griswold, who runs the Tiny House Blog, which attracts 5,000 to 7,000 visitors a day. “In the last couple years, the idea’s really taken off,” Griswold said. Gregory Johnson, who co-founded the Small House Society with Shafer, said the online community now has about 1,800 subscribers, up
from about 300 ﬁve years ago. Most of them live in their small houses full-time and swap tips on living simple and small. Johnson, 46, who works as a computer consultant at the University of Iowa, said dozens of companies specializing small houses have popped up around the country over the past few years. Before he got married, Johnson lived for six years in a small cabin he built himself and he wrote a book called Put Your Life on a Diet: Lessons Learned from Living in 140 Square Feet. Northern California’s Sonoma County has become a mini-mecca for the tiny house industry, with an assortment of new businesses launching over the last few years. Stephen Marshall, 63, worked as a building contractor for three decades before the real estate market tanked three years ago. That’s when he jumped into the tiny house business, starting Petaluma, Calif.,-based Little House On The Trailer. His company builds and sells small houses that can serve as stand-alone homes equipped with bathrooms and kitchens, and others he calls “A Room of One’s Own” that can be used as a home ofﬁce or extra bedroom.
Democrats’ options dwindling in tax cuts tussle with Republicans • TAX CUTS, FROM 1B
cuts to expire on all income above $250,000 — but it would still eliminate roughly 8 percent of the mediumterm budget deﬁcit. A millionaire’s tax would also mean that the tax code would again begin to distinguish between the merely afﬂuent and the truly wealthy, as was the case decades ago. The second, more likely option is to extend all the tax cuts — and to package them with other tax cuts and spending likely to do more to help the economy than the Bush tax cuts. (Remember, after former U.S. President George W. Bush signed the cuts in 2001, the economy lost jobs for the next two years, and economic growth during his presidency was mediocre.) These other measures could include a tax cut for
businesses that added workers, an across-the-board payroll tax cut and an extension of unemployment beneﬁts. Combining the two ideas — using the revenue from the millionaire’s tax to pay for job creation programs — may also be possible. Sen. Mark Warner, a moderate Virginia Democrat, has been pushing a similar idea. The safer strategy is focusing on job creation without involving the millionaire’s tax. Republicans would then be forced to accept additional tax cuts, some of which were originally Republican ideas, or to stand in the way of extending the Bush cuts. Democrats, for their part, could avoid repeating their mistake of early this year, when they assumed a recovery was under way and failed to do enough to help the economy. Today, the economy looks
strikingly similar to the way it did at the start of the year, with the latest numbers again pointing to a recovery. Retail sales over Thanksgiving weekend were strong and the latest jobs report showed more hiring than expected. Yet the outlook remains highly uncertain, partly because of the debt troubles in Europe. The great historical lesson of ﬁnancial crises is they tend to have bigger, longer-lasting effects than policymakers think. Congress and the White House now have a chance to take out an insurance policy against the risk that the recovery will fade in coming months, just as it did over the summer. Because the Bush tax cuts will expire unless new legislation is enacted, they offer a chance to get that insurance policy through Congress. The political argument
for taking a risk and trying to pass the millionaire’s tax is that it will allow the Democrats to cast themselves as friends of the middle class. The economic argument is that such a tax would probably do more long-term good than any of the other remaining options. The country, as you’ve no doubt heard, is facing a huge budget deﬁcit. To reduce the deﬁcit to a level economists consider sustainable, Washington needs to ﬁnd about $400 billion in annual tax revenue and spending cuts by 2015. A millionaire’s tax would be a good start, producing about $30 billion a year. By comparison, Obama’s plan to freeze federal workers’ pay would save about $5 billion a year. A millionaire’s tax would also fall on an income group that, by almost any deﬁni-
tion, can best handle a tax increase. Since 1980, pretax income for households making at least $1 million has more than tripled, after adjusting for inﬂation. Pretax income for households in the dead middle of the income distribution, making roughly $50,000, has risen just 13 percent. At the same time, the wealthy have received a much bigger tax cut over the last three decades than any other group. The total federal tax rate on households making more than $1 million — including the income tax, the payroll tax and others — was above 50 percent in 1980. In recent years, it has been about 33 percent. Finally, a millionaire’s tax would make a distinction between the 400,000th dollar of income and the 40 millionth dollar. Today, the government taxes those dol-
lars at the same rate, which is hard to justify in a country with a progressive tax system and high inequality. Until the 1970s, the highest tax bracket began at more than $1 million a year in today’s dollars. So which route should Democrats take? It depends on whether they think they have any chance of persuading a couple of Republicans to vote for a millionaire’s tax. If the Democrats fail and don’t leave themselves enough time to pass a bill with job creation measures, they will be facing total capitulation — an extension of the high-end Bush tax cuts with nothing in return. And what should the Republicans do? Perhaps, when faced with the ﬁnal choice, a few of them will be willing to vote for either reducing the deﬁcit or helping the economy.
12/2/2010 4:18:03 AM
THE MIAMI HERALD
BUSINESS BRIEFS • INSURER
New York Times Service
JIN LEE/BLOOMBERG NEWS
AIG raises $2B in first bonds since bailout From Miami Herald Wire Service
American International Group, the insurer rescued by the U.S. government, sold $2 billion of bonds in its ﬁrst offering since the bailout in 2008. AIG issued $500 million of 3.65 percent notes due January 2014 that yield 295 basis points more than similar-maturity Treasuries, and $1.5 billion of 6.4 percent debt due December 2020 at a spread of 362.5 basis points, according to data compiled by Bloomberg. “The markets have increased conﬁdence in AIG’s ability to service debt on an ongoing basis, and, by extension, in its feasibility as a sustainable enterprise,” said Clark Troy, a senior analyst based in Chapel Hill, N.C., for Aite Group, a research ﬁrm. Chief executive Robert Benmosche tapped the corporate bond market after announcing on Sept. 30 a plan to pay back taxpayers and regain the ﬁrm’s independence. • FINANCIAL CRISIS PORTUGAL SEES HIGH RATE IN BOND SALE Portugal has had to pay a higher interest rate on a sale of $650 million in treasury bills, though analysts say the auction went better than some had feared amid the debt crisis. The bills, which mature in November 2011, were auctioned off at an average interest rate of 5.3 percent, up from 4.8 percent two weeks ago. The sale attracted a lot of interest, however, and was 2.5 times oversubscribed. SPAIN TAKES MORE STEPS TO AVOID CHAOS Spain’s prime minister says the government will sell off a 30 percent stake in its lottery business and partially privatize airports in Madrid and Barcelona to ease market worries about public ﬁnances. Jose Luis Rodriguez Zapatero made the announcements in Parliament after Spain has been pummeled in recent weeks by investors who fear that the country may need a bailout like those received by Greece and Ireland. The government will also stop paying $549 per month in February to people whose unemployment beneﬁts have expired. • NEW YORK EX-GOLDMAN SACHS PROGRAMMER ON TRIAL A Goldman Sachs programmer stole secret computer code that enables high-speed trading on his last day with the company so he could help develop the same kind of system at a start-up ﬁnancial company, a prosecutor said, while a defense lawyer disputed that his client had committed a crime. Assistant U.S. Attorney Joseph Facciponti said Sergey Aleynikov, a naturalized U.S. citizen who came to the United States from Russia in 1990, was leaving his $400,000 job as a vice president at Goldman Sachs Group to join Teza Technologies, where he was to be paid $300,000 annually, with a $700,000 bonus in his ﬁrst year and a revenue-sharing plan that would pay him an additional $150,000. Aleynikov’s lawyer, Kevin Marino, disputed the portrayal of his client as a spy. “This is not a case of espionage,” Marino said. “It’s not a federal crime.” • AUTOMAKER GM TO HIRE 1,000 TO ENGINEER ELECTRIC CARS General Motors is adding 1,000 jobs in Michigan to develop more electric and hybrid vehicles similar to the Chevrolet Volt, which it ofﬁcially introduced this week, the company said. The jobs, in engineering and research, are the latest commitment by GM to broaden its lineup of energy-efﬁcient models as well as to invest in its home state, which has the second-highest unemployment rate in the United States. GM has already invested $700 million in eight facilities in Michigan in support of the Volt. The company said it would add the jobs over the next two years. • VIDEO GAMES KIOSK GAMING SYSTEM READY FOR PRODUCTION Caribbean Casino and Gaming Corporation has announced that the company’s proprietary Kiosk Gaming System has completed testing and is ready for production. The system, which looks like a slot machine but offers almost all casino games while being integrated into the casino’s Live Video Gaming system, will be distributed throughout convenience stores, bars and restaurants. • AVIATION AIRBUS TO UPDATE POPULAR A320 JET In a bid to defend its best-selling aircraft from competing planes being developed in Canada, China and Brazil, Airbus committed Wednesday to spend as much $1.5 billion to revamp its popular A320 single-aisle jet with new, more fuel-efﬁcient engines and a more aerodynamic wing. The decision, which was more than a year in the making, does not represent a major ﬁnancial risk for Airbus or its parent company EADS, analysts said. But it could still present a challenge for the plane maker in allocating engineering and manufacturing resources at a time when it is still working out assembly-line kinks with its two-deck A380 superjumbo jet and its future ﬂagship, the A350, an all-composite twin-aisle plane scheduled for service in late 2013.
Google bids $6M for Groupon BY EVELYN M. RUSLI AND JENNA WORTHAM
REBOUND: AIG issued $500 million of 3.65 percent notes due January 2014 that yield 295 basis points more than similar-maturity Treasuries.
THURSDAY, DECEMBER 2, 2010
Google’s $6 billion bid for Groupon, an online coupon start-up, is an aggressive move by the company to dominate local online advertising and help with its long-sought move into social networking. Google has offered Groupon $5.3 billion, with the promise of $700 million in performance bonuses for management, according to a person with knowledge about the matter who spoke on the condition of anonymity. Several people close to the deal said Groupon, which is based in Chicago, was expected to approve the acquisition and an agreement could be signed as early as this week. If the deal is completed, Groupon will stand as Google’s largest acquisition, easily topping the company’s $3.1 billion purchase of DoubleClick in 2007. The acquisition would also yield giant checks for Andrew
Mason, Groupon’s 30-yearold founder, and its investors, a group that includes Battery Ventures, Digital Sky Technologies, Accel Partners and New Enterprise Associates. They have invested about $170 million in the company in the last two years. Mason, Groupon’s chief executive, declined an interview request, saying that he would talk “only if you want to talk about my other passion, building miniature dollhouses.” ANXIOUS INVESTORS The deal has made Google’s investors anxious, however, because of the high price and also because of doubts about how effective the company is in generating sales for merchants. Google has compelling reasons for wanting the company, which offers deeply discounted coupons from local stores, restaurants and services. Deal-hungry buyers often mobilize their friends and family through
Facebook and Twitter, which helps the Groupon concept spread. Analysts estimate that Groupon, which says it is proﬁtable, has annual revenue of more than $500 million. The upstart would help Google get into local advertising and give it speciﬁc insight into consumer spending habits. Local online advertising is expected to grow 18 percent, to $16.1 billion, next year, according to the advertising research ﬁrm Borrell Associates. It could also give Google access to a large sales force that knows the owners of the neighborhood pizzerias and bowling alleys. Groupon has 3,100 employees. PROSPECTS Groupon, whose subscriber network spans 300 markets in North America, Latin America and Europe, says it has 35 million subscribers worldwide, with 17 million in North America. Google’s investors, how-
ever, seemed focused on Groupon’s valuation, which was estimated at $1.4 billion during its last fundraising round in April. Google’s bid carries a fourfold premium to that. On Tuesday, some Google investors wondered if the company was paying too steep a price. Shares in Google fell 4.5 percent, to $555.71. The stock was also battered by news that European regulators had opened an antitrust investigation. AMBITIOUS PLANS Google has big ambitions for local services, which include listings of businesses alongside its mapping service, although Google has had only modest success with the program after years of trying. The company has recently stepped up its efforts, promoting a prominent executive, Marissa Mayer, to oversee the local business in October and trying to buy Yelp, the local review site, in 2009.
Social Security is part of deficit plan BY ANDREW TAYLOR Associated Press
WASHINGTON — The members of U.S. President Barack Obama’s deﬁcit commission went on the record Wednesday as they debated politically explosive budget cuts, including proposals to lower Social Security beneﬁts, in a revised plan to wrestle the national debt under control. The new plan by panel co-chairmen Erskine Bowles and Alan Simpson, unveiled Wednesday, faces an uphill slog because of proposals to raise the Social Security retirement age and lower cost-of-living increases, cut Medicare costs, curtail a huge assortment of tax breaks, like the deduction for mortgage interest, and almost double the federal tax on a gallon of gasoline. Though the plan appears unlikely to win enough bipartisan support from the panel to be approved for a vote in Congress this year or next, Bowles has already declared victory, saying he and Simpson have at least succeeded in initiating an “adult conversation” in the country about the pain it will take to cut the deﬁcit. The plan faces resistance from many commission members. House Republicans appear uniformly against tax increases, while liberal Democrats like Jan Schakowsky of Illinois appear unlikely to be able to accept big cuts in federal programs for seniors. Obama named the commission in hopes of bringing a deﬁcit-ﬁghting plan up for a vote in Congress this year, but it appears to be falling well short of the 14-vote
JOBS CUT OUT: Debt Commission co-chairmen Erskine Bowles, left, and former Wyoming Sen. Alan Simpson, second from left, talk with other members Rep. Jan Schakowsky, D-Ill., and Sen. Mike Crapo, R-Idaho, in Washington. bipartisan supermajority needed. A new version of the plan, obtained by The Associated Press on Tuesday, makes mostly minor changes to a draft that whipped up enormous controversy when unveiled earlier this month. Some domestic spending cuts are modestly higher than previously proposed, and health care savings from overhauling the
medical malpractice system would reap less than proposed earlier this month. Unlike their original proposal, Bowles and Simpson stop short of calling for caps on medical malpractice awards. Instead they recommend changes in how awards are made. But other proposals remain the same. Among them are a gradual increase in the Social Security retirement
age to 68 by 2050 and 69 by 2075, using a less generous cost-of-living adjustment for the programs and increasing the cap on income subject to Social Security taxes. The plan also retains a 15-cent-a-gallon increase on gasoline, a three-year freeze on federal worker pay and the elimination of 200,000 workers from the federal payroll through attrition.
FTC proposes ‘do not track’ for Web users BY EDWARD WYATT AND TANZINA VEGA New York Times Service
WASHINGTON — The Federal Trade Commission advocated a plan on Wednesday that lets consumers on the Internet choose whether they want information about their browsing habits to be collected, an option known as “do not track.” The FTC’s proposal, a framework for commercial use of consumer data, would make consumer privacy the default position and would let Web users decide whether Internet sites and advertisers can build proﬁles of their browsing and buying habits as well as collect other personal information. The recommendations, in a report released by the commission that solicits public comment over the next two months, are based on the commission’s belief that current practices regarding privacy protection have not kept pace with the rapid growth of tech-
nology and new business models. Industry self-regulation, the preferred model among advertising companies and many online retailers, has “failed to provide adequate and meaningful protection” for consumers, the report said. Now, the trade commission hopes to adopt an approach that it calls “privacy by design,” where companies are required to build privacy protections into their everyday business practices. That approach would include retaining data on consumer preferences and online browsing activity only as long as needed and deleting data on a regular basis. The report also recommends that companies adopt simpler, more transparent and streamlined ways of presenting consumers with their options rather than the “long, incomprehensible privacy policies that consumer typically do not read, let alone understand.”
And the report recommends that data brokers give consumers “reasonable access” to whatever data they have collected. While the report is critical of many current industry practices, the commission will probably need the help of Congress to enact some of its recommendations. “I do not think that under the FTC’s existing authority we could mandate unilaterally a system of ‘do not track,’ ” David Vladek, the director of the commission’s bureau of consumer protection, said Wednesday at a conference sponsored by Consumer Watchdog, a nonproﬁt group. “There are ways we could coax, cajole and charm industry in that direction,” Vladek said. But, he added, “If the decision was made by Congress that ‘do not track’ should be put in place immediately, it would take an act of Congress.” There is support in Con-
gress for doing so, however, and the House Subcommittee on Commerce, Trade and Consumer Protection will take up the matter at a hearing Thursday that will examine the feasibility of creating a simple and universal method of opting-out of being tracked online. Christopher Soghoian, a privacy and security researcher, said at the Consumer Watchdog conference that most consumers do not have privacy software and that the use of privacy options in most Internet browsers “doesn’t do much.” Because many of the companies that make Web browsers are also supported by advertising networks, “the design decisions are motivated by a desire not to hurt their advertising divisions,” Soghoian said. “The situation right now is laughable,” he added. “There certainly isn’t a single one-stop shop.”
12/2/2010 3:13:22 AM
THURSDAY, DECEMBER 2, 2010
S&P 500 1,206.07
Dow Jones industrials
Close: 11,255.78 Change: 249.76 (2.3%)
30-YR T-BONDS 4.23%
Close: 2,549.43 Change: 51.20 (2.0%) 10 DAYS
11,000 2,400 10,500
10,000 2,100 9,500
DOW DOW Trans. DOW Util. NYSE Comp. NASDAQ S&P 100 S&P 500 S&P 400 Wilshire 5000 Russell 2000
DOI;D7I: 1,992 2,218 1937 751 235 39
Vol. (in mil.) 4,434 Pvs. Volume 4,775 Advanced 2397 Declined 674 New Highs 264 New Lows 12
11007.23 4861.65 391.68 7430.95 2535.19 529.73 1186.60 852.54 12541.05 734.70
11255.78 4971.57 396.23 7603.73 2549.43 541.20 1206.07 870.10 12801.64 743.14
+249.76 +115.79 +4.83 +172.79 +51.20 +11.47 +25.52 +17.51 +260.59 +16.13
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3.25 .13 .15 .19 .26 .51 1.61 2.96 4.23
3.25 .13 .16 .19 .25 .44 1.46 2.79 4.10
... ... -0.01 ... +0.01 +0.07 +0.15 +0.17 +0.13
'OH MA CE GJH 7=E / / / / / / 0 0 1
/ / 0 0 0 0 0 0 0
3.25 .13 .04 .13 .23 .65 2.02 3.27 4.27
/ / 0 0 0 0 0 0 0
D;J'OH 8ED:IO;IJFLI9>=MACEGJH7=E Barclays LongT-BdIdx Bond Buyer Muni Idx Barclays USAggregate Barclays US High Yield Moodys AAA Corp Idx Barclays CompT-BdIdx Barclays US Corp
11276.10 5000.46 396.85 7609.51 2558.29 541.97 1207.61 870.41 12818.14 743.93
Prime Rate Fed Funds Target 3-month T-bill 6-month T-bill 52-wk T-bill 2-year T-note 5-year T-note 10-year T-note 30-year T-bond
The yield on the 10-year Treasury rose to 2.96 percent. Changing yields affect interest rates on consumer loans.
3.86 5.29 2.68 7.90 4.79 1.76 3.79
3.72 5.24 2.68 7.82 4.84 1.65 3.80
+0.14 +0.05 ... +0.08 -0.05 +0.11 -0.01
1 0 0 0 1 0 0
0 0 0 0 0 0 0
0 0 0 1 0 0 0
3.99 5.45 3.15 9.77 5.01 1.94 4.52
The euro rose Wednesday after a report that the U.S. would support the IMFâ€™s giving more money to the European fund thatâ€™s used for bailouts. The U.S. is the IMFâ€™s biggest stakeholder.
9khh[dYo_dKI % B7IJ FH;L$
Argent (Peso) Brazil (Real) Britain (Pound) Canada (Dollar) Chile (Peso) China (Yuan) Colombia (Peso) Dominican Rep (Peso) Euro (Euro) India (Rupee) Israel (Shekel) Japan (Yen) Mexico (Peso) Norway (Krone) Peru (New Sol) So. Africa (Rand) Switzerlnd (Franc) Uruguay (New Peso)
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=beXWbCWha[ji C7@EHI Buenos Aires Argentina Frankfurt DAX London FTSE 100 Hong Kong Hang Seng Paris CAC-40 Mexico Tokyo Nikkei 225 Sao Paulo Brazil Toronto Canada
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MiamiHerald.com Follow the stock markets at MiamiHerald.com/ business: â– Check local stocks â– Track your portfolio â– Customize a watch list â– Calculate returns
IjeYaie\Iekj^ <beh_ZW?dj[h[ij D7C;:?LBWij9^]9^] AMR (AMR) AT&T Inc (T) Alico (ALCO) AmExp (AXP) Assurant (AIZ) AutoNatn (AN) Avatar (AVTR) BB&T Cp (BBT) BE Aero (BEAV) BkofAm (BAC) BankAtl A (BBX) BeasleyB (BBGI) Benihana (BNHN) BenihanaA (BNHNA) Bluegreen (BXG) Carnival (CCL) CatalystPh (CPRX) CerusCp (CERS) Chicos (CHS) CitrixSys (CTXS) Comcast (CMCSA) CnsTom (CTO) Continucre (CNU) CrssCtryHl (CCRN) Darden (DRI) Decoratr (DII) Disney (DIS) Dreams (DRJ) Dycom (DY) eDiets.cm h (DIET) EqtyOne (EQY) FedExCp (FDX) Flanign (BDL) GeoGrp (GEO) HackettGp (HCKT) HarrisCorp (HRS) Heico s (HEI) Heico A s (HEI/A) IntlSpdw (ISCA) IntervalLs (IILG) IsleCapri (ISLE) IvaxDiag (IVD) LadThalFn (LTS) LennarA (LEN) Macys (M) MAKO Srg (MAKO) MarineMx (HZO) Mastec (MTZ) McClatchy (MNI) Mednax (MD) Motorola (MOT) NABI Bio (NABI) NatlBevrg (FIZZ) FPL Group (NEE) OcwenFn (OCN) OfficeDpt (ODP) OpkoHlth (OPK) Parlux (PARL) PerryEllis (PERY) PetMed (PETS) Protalix (PLX) RJamesFn (RJF) RepubSvc (RSG) RylCarb (RCL) Ryder (R) SBA Com (SBAC) SFN Grp (SFN) StJoe (JOE) SeacorHld (CKH) SpanBdc h (SBSA) SunTrst (STI) TIB Fncl (TIBB) TenetHlth (THC) Terremk (TMRK) TevaPhrm (TEVA) Tongjitng (TCM) TradeStatn (TRAD) 21CentHld (TCHC) UltimSoft (ULTI) UPS B (UPS) VectorGp (VGR) Vonage (VG) Watsco (WSO) Winn-Dixie (WINN) WldFuel s (INT)
... 1.68 0.10e 0.72 0.64 ... ... 0.60 ... 0.04 ... ... ... ... ... 0.40 ... ... 0.16 ... 0.38 0.04 ... ... 1.28 ... 0.40f ... ... ... 0.88 0.48 ... ... ... 1.00 0.12f 0.12f 0.16f ... ... ... ... 0.16 0.20 ... ... ... ... ... ... ... 1.35e 2.00 ... ... ... ... ... 0.50 ... 0.52f 0.80 ... 1.08 ... ... ... 15.00e ... 0.04 ... ... ... 0.75e ... ... ... ... 1.88 1.60b ... 2.08 ... 0.15
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CWha[jIkccWho =7?D;HI(EHCEH; D7C;
MercerIns Rdiff.cm WSB Hldgs AdcareH wt GigaTr WaveSys HiSoft n SearchMed Sify lf GT Solar
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A-Power MecoxL n Sycamre rs ZionO&G wt SCmtyII pf UnivTInst NovtlWrls CaroBkHld Motricity n CSVS2xVxS
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-25.5 -18.4 -15.9 -14.5 -13.0 -11.5 -11.0 -10.7 -10.5 -10.4
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Oracle PacCapB h
RschMotn S&P500ETF SeagateT
CRUDE OIL $86.75
6-MO T-BILLS .19%
THE MIAMI HERALD
121.01 +2.52 13.92
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D;J'OH O;IJFLI9>=7=E Unleaded Gas (gal) 2.30 2.19 +.11 2.04 Crude Oil (bbl) 86.75 84.11 +2.64 78.37 Gold (oz) 1387.30 1385.00 +2.30 1199.10 Platinum (oz) 1684.00 1666.40 +17.60 1486.60 Silver (oz) 28.39 28.19 +.20 19.18 Coffee (lb) 2.03 2.01 +.02 1.42 Orange Juice (lb) 1.53 1.49 +.04 1.20 Sugar (lb) 0.28 0.27 +.01 .22
9ecX_d[ZIjeYai DWc[ ABB Ltd ACE Ltd AES Corp AFLAC AGCO AGL Res AMB Pr ASML Hld AU Optron AbtLab AberFitc Accenture Acergy AcmePkt ActivsBliz AdobeSy AdvAuto AMD AdvSemi Advantest AecomTch Aegon Aetna AfďŹ lMgrs Agilent Agnico g Agrium g AirProd Airgas Aixtron AkamaiT Albemarle AlbertoC n AlcatelLuc Alcoa Alcon AlexREE Alexion AllgEngy AllegTch Allergan AlliData AlliHold AlliantEgy AllscriptH Allstate AlphaNRs AlteraCp lf Altria Alumina AlumChina AmBevC AmBev Amazon Amdocs Ameren AMovilL AMovilA AEagleOut AEP AFnclGrp AmIntlGrp AmTower AmWtrWks Amerigas Ameriprise AmeriBrgn Ametek Amgen Amphenol Anadarko AnalogDev AnglogldA ABInBev Annaly Ansys Aon Corp Apache AptInv ApolloGrp Apple Inc ApldMatl Aptargrp AquaAm ArcelorMit ArchCap ArchCoal ArchDan AresCap ArmHld ArmstrWld ArrowEl Ashland AssuredG AstraZen AtlasEngy Atmel ATMOS Autodesk Autoliv AutoData AutoZone AvagoTch AvalonBay AveryD Aviva Avnet Avon AXIS Cap B Comm BB&T Cp BCE g BHP BillLt BHPBil plc BMC Sft BOK BP PLC BRE BRFBrasil s BT Grp BabckW n
BWij 9^] 19.73 59.48 10.92 53.00 44.55 37.20 29.64 34.44 10.08 47.01 50.44 44.00 21.32 53.01 11.97 28.37 66.15 7.51 5.28 20.60 26.51 5.88 29.94 90.41 36.12 82.06 83.06 86.39 61.94 31.28 53.36 55.37 37.28 2.79 13.57 160.54 67.88 76.24 23.01 53.05 66.46 66.16 47.31 36.94 17.90 29.95 50.69 36.93 24.17 7.97 22.77 117.63 136.97 176.55 26.47 29.19 57.43 57.30 16.84 36.40 31.30 42.28 51.03 24.78 47.63 52.98 31.55 61.80 53.52 51.71 67.28 36.66 47.32 56.64 18.21 50.79 41.31 111.26 24.41 34.45 316.40 12.77 46.84 21.83 33.22 90.70 30.22 29.49 16.74 19.06 50.11 32.08 52.05 17.24 47.59 43.01 10.75 30.58 36.57 75.84 46.11 260.56 26.86 111.70 38.59 11.75 31.75 29.36 36.26 31.00 23.75 34.65 85.51 74.31 45.53 47.96 40.62 43.21 15.30 26.66 24.93
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Baidu s 106.81 +1.76 BakrHu 53.82 +1.66 Baldor 63.23 -.08 BallCp 67.94 +2.06 BanColum 63.55 +1.85 BcBilVArg 10.13 +.92 BcoBrades 20.67 +.61 BcoMacro 51.69 +1.78 BcoSantand 10.37 +.75 BcoSBrasil 13.66 +.61 BcSanChile 92.56 +.98 BcoChile 86.73 +1.57 BkMont g 60.24 +1.49 BkNYMel 27.37 +.38 BkNova g 53.27 +1.32 Barclay 16.88 +.74 Bard 85.96 +1.11 BarrickG 52.44 +.79 Baxter 49.34 +.79 BaytexE g 43.15 +1.03 BeckCoult 56.33 +1.62 BectDck 79.82 +1.89 BedBath 44.60 +.86 Bemis 32.12 +.70 Berkley 27.06 +.37 BerkHa A 121100 +900 BerkH B s 80.68 +1.00 BestBuy 42.44 -.28 BiogenIdc 65.37 +1.40 BioMarin 27.15 +.07 BlkHillsCp 31.04 +.69 BlackRock 167.62 +5.62 Blackstone 13.15 +.35 BlockHR 12.69 +.10 BdwlkPpl 30.83 -.17 Boeing 65.72 +1.95 BorgWarn 63.26 +2.92 BostProp 84.91 +1.11 BostonSci 6.52 +.10 BrasilTele 21.31 +.77 BrasTel C 8.38 +.15 Braskem 21.92 +.45 BrigExp 26.37 +1.20 BrMySq 25.56 +.32 BritATob 73.93 +1.03 Broadcom 46.03 +1.54 BrkďŹ‚dAs g 29.93 +.70 BrkďŹ‚dPrp 16.64 +.47 BrwnBrn 23.48 +.61 BrownFA 67.38 +2.14 BrownFB 66.80 +1.38 Buckeye 68.11 +.04 Bucyrus 89.10 -.06 Buenavent 50.66 +.02 BungeLt 61.98 +1.16 CA Inc 23.69 +.80 CAE Inc g 11.29 +.27 CB REllis 19.08 -.11 CBS B 17.17 +.33 CF Inds 124.04 +3.27 CGG Verit 24.57 +1.32 CGI g 15.98 +.30 CH Robins 75.06 +1.35 CIGNA 38.00 +1.19 CIT Grp n 39.75 +.29 CME Grp 300.04 +11.98 CMS Eng 18.21 +.24 CNA Fn 26.30 +.48 CNH Gbl 43.19 +1.77 CNOOC 224.05 +8.75 CPFL En 72.00 +.99 CRH 18.07 +.53 CSX 62.94 +2.13 CTC Media 22.87 +.36 CVS Care 31.87 +.87 CablvsnNY 32.17 +.50 CabotO&G 36.00 +1.03 Calpine 12.28 +.18 CamdnP 51.07 Cameco g 37.36 +1.09 Cameron 49.92 +1.81 CampSp 34.23 +.33 CIBC g 79.86 +2.80 CdnNRy g 65.46 +1.51 CdnNRs gs 40.57 +2.11 CP Rwy g 64.97 +.98 Canon 47.92 +.86 CapOne 38.13 +.90 CardnlHlth 36.62 +1.04 CareFusion 23.57 +.70 CarMax 33.55 +.65 CarnUK 42.21 +.81 Caterpillar 87.45 +2.85 Celanese 38.43 +1.43 Celgene 60.41 +1.03 Cellcom 33.65 +.30 Cemex 9.20 +.16 Cemig pf 17.22 +.14 Cemig 12.67 CenovusE n 29.69 +.92 CenterPnt 15.76 +.13 CnElBrasil 13.65 +.27 CntryLink 43.91 +.92 Cephln 64.26 +.77 Cerner 91.58 +3.72 Cervecer 57.06 +.83 CharterCm 34.38 +.86 ChkPoint 44.07 +1.20 Chemtura n 14.45 +.36 ChesEng 21.41 +.29 ChesUtl 38.35 +.76 Chevron 82.70 +1.73 ChicB&I 29.99 +1.68 Chimera 4.06 +.06 ChinaEA s 29.71 +.40 ChinaLife 65.58 +1.42 ChinaMble 50.49 +.64 ChinaPet 94.52 +1.68 ChinaSoAir 36.02 +.20 ChinaTel 51.50 +1.46 ChinaUni 13.62 +.18
DWc[ Chipotle Chubb ChungTel ChurchDwt Cimarex CinnFin Cintas Cisco Citigrp CitiTdecs n CityNC CliffsNRs Clorox Coach CobaltIEn n CocaCE CCFemsa CCHellenic CocaCl CognizTech ColgPal Comc spcl Comerica CmcBMO ComScop CmtyHlt CBD-Pao s CompSci ConAgra ConchoRes ConocPhil ConsolEngy ConEd ConstellA ConstellEn ContlRes Cooper Ind Copart Copel CoreLab s CornPdts Corning Corpbnca Cosan Ltd Costco Covance CoventryH Covidien Credicp CredSuiss Cree Inc CrwnCstle CrownHold Ctrip.com s CullenFr Cummins DPL DR Horton DTE Danaher s DaVita DeVry DeckOut s Deere DelMnte Delhaize Dell Inc DeltaAir DenburyR Dndreon Dentsply DeutschBk DevelDiv DevonE Diageo DiaOffs DicksSptg DigitalRlt DirecTV A Discover DiscCm A DiscCm C DishNetwk DrReddy DolbyLab DollarGen DllrTree s DomRescs Domtar grs Donldson DonlleyRR Dover DowChm DrPepSnap DresserR Dril-Quip DuPont DukeEngy DukeRlty DunBrad ETrade rs eBay EMC Cp ENI EOG Res EQT Corp EastChm Eaton EatnVan EVTxMGlo Ecolab Ecopetrol EdisonInt EdwLfSci s ElPasoCp ElPasoPpl Elan EldorGld g ElectArts EAndinA EAndinB
BWij 9^] 258.82 57.98 24.30 65.73 83.74 30.81 27.88 19.32 4.30 127.40 55.27 70.46 62.31 56.63 11.55 24.78 81.55 26.40 64.70 66.89 77.23 19.64 37.35 38.60 31.64 31.80 41.65 46.46 21.95 83.45 62.45 43.69 48.75 21.08 28.72 54.99 56.07 33.81 25.18 86.81 44.39 18.04 85.20 13.10 68.31 46.10 26.16 42.94 122.10 37.98 66.78 41.98 31.75 42.73 54.63 100.52 25.70 10.53 45.40 44.12 74.04 42.75 79.94 76.14 18.76 69.98 13.41 13.88 18.84 37.56 31.77 49.85 13.08 72.01 71.81 65.91 35.40 53.23 41.23 18.86 41.34 35.96 18.49 39.33 65.79 32.31 55.92 42.05 78.75 55.69 16.46 56.80 32.42 37.06 39.30 80.40 48.35 17.78 11.42 76.72 15.28 29.26 21.90 41.08 91.63 41.39 81.21 98.89 30.10 10.70 47.88 40.79 37.57 67.58 13.80 32.94 5.08 17.99 15.05 25.26 30.99
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DWc[ EBrasAero EmersonEl EElChile EnbrEPtrs Enbridge EnCana g s EndoPhrm Energen Energizer EngyTEq EngyTsfr Enerpls g Enersis ENSCO Entergy EntPrPt Equifax Equinix EqtyRsd EricsnTel ErieInd EssexPT EsteeLdr EverestRe ExcoRes Exelon Expedia ExpdIntl ExpScrip s ExxonMbl F5 Netwks FLIR Sys FMC Corp FMC Tech FactsetR FamilyDlr Fastenal FedRlty FibriaCelu FidlNFin FidNatInfo FifthThird FstSolar FirstEngy Fiserv Flextrn Flowserve Fluor FocusMda FEMSA FootLockr FordM FordC pfS ForestLab ForestOil FortuneBr Fossil Inc FosterWhl FranceTel FrankRes FMCG FresenM FresM pr FrontierCm GaďŹ sa s Gallaghr GameStop Gannett Gap GardDenv Garmin Gartner GenDynam GenElec GenGrPr n GenMills s GenMot n Genpact Gentex GenuPrt Genworth Genzyme Gerdau Gildan GileadSci GlaxoSKln GlobPay GolLinhas GoldFLtd Goldcrp g GoldmanS Goodrich Google Graingr GtPlainEn GreenMtC s GpTelevisa GuangRy Guess HCC Ins HCP Inc HDFC Bk HSBC Hallibrtn HansenNat HarleyD Harman HarmonyG HartfdFn Hasbro HltCrREIT Heinz HelmPayne HSchein Herbalife Hershey Hertz Hess HewlettP Hitachi Hologic
BWij 9^] 29.32 55.98 57.46 60.60 56.76 28.07 36.70 44.32 71.41 39.92 50.72 29.46 24.06 48.18 71.85 41.05 35.24 79.60 50.67 10.57 63.04 113.21 77.15 84.03 18.43 39.44 26.79 54.95 54.38 71.33 138.96 27.69 80.51 87.15 90.69 50.31 54.94 78.09 15.99 13.68 27.76 12.27 126.74 35.20 56.86 7.37 107.98 59.76 23.27 57.29 19.20 16.46 51.84 32.38 35.21 60.15 68.25 29.24 20.76 117.63 105.49 59.70 50.00 9.31 14.66 28.75 20.27 13.61 21.56 67.38 29.90 33.02 67.62 16.30 15.95 35.64 34.78 14.50 22.21 48.51 12.02 71.14 12.09 30.88 37.20 38.66 42.30 16.72 16.78 46.15 158.45 85.90 564.35 127.27 19.00 36.20 24.05 20.10 47.94 28.53 32.91 185.68 51.50 39.19 52.51 32.26 46.20 11.41 23.26 47.76 45.60 48.67 46.86 58.73 69.23 47.23 12.64 73.14 42.57 48.31 17.22
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DWc[ HomeDp Honda HonwllIntl Hormel Hospira HospPT HostHotls HuanPwr HubbelB HudsCity HumGen Humana HuntJB HuntBnk Huntsmn IAMGld g ICICI Bk IdexxLabs IHS Inc ING ITC Hold ITT Corp Icahn Ent IDEX ITW Illumina ImpOil gs IndoTel Indosat Informat InfosysT IngerRd IngrmM IntegrysE Intel IntractDat IntcntlEx IntCtlHtl IBM IntFlav IntlGame IntPap IntTower g InterOil g Interpublic Intuit IntSurg Invesco IronMtn ItauUnibH IvanhM g JCrew JPMorgCh Jabil JacobsEng Jarden Jefferies JohnJn JohnsnCtl JonesLL JoyGlbl JnprNtwk KB FnclGp KBR Inc KLA Tnc KT Corp KC Southn Kellogg Kennamtl Keycorp KimbClk Kimco KindME KindMM KineticC KingPhrm Kinross g Kohls KoreaElc Kraft Kroger Kubota Kyocera L-3 Com LAN Air LG Display LKQ Corp LPL Inv n LSI Corp LabCp LamResrch LamarAdv LVSands Lazard LearCorp LegacyRes LeggMason LeggPlat LenderPS LeucNatl Lexmark LibGlobA LibGlobC LibtyMIntA LibMCapA LibStarzA LibtProp LifeTech LillyEli Limited LincNat LinearTch LinnEngy LloydBkg LockhdM Loews Logitech Lorillard Lowes Lubrizol lululemn g
BWij 9^] 31.61 37.27 50.88 49.86 56.15 22.44 16.65 21.60 58.69 11.56 24.68 57.09 37.58 6.03 15.36 16.31 52.21 65.65 73.39 9.54 60.84 47.09 33.94 38.46 48.36 61.79 36.76 36.58 29.67 42.27 67.85 42.10 18.04 49.01 21.48 33.84 115.62 18.29 144.41 53.55 15.61 25.49 9.78 76.43 10.73 46.21 266.31 22.46 22.84 23.80 25.60 43.86 38.15 15.47 39.34 30.92 24.94 62.42 37.85 80.39 79.35 34.84 47.59 27.99 38.40 20.50 47.98 49.44 35.23 7.77 62.46 16.84 70.23 63.79 40.54 14.18 17.81 56.02 12.38 30.63 23.86 46.04 102.40 72.04 31.15 17.54 21.94 35.01 5.81 85.48 47.70 38.48 51.34 36.65 89.77 26.02 33.74 21.23 30.26 26.84 37.27 35.75 33.71 15.72 58.66 64.00 31.47 51.46 34.26 34.64 24.52 33.42 36.85 4.00 69.40 37.91 19.93 82.21 23.75 107.19 54.20
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DWc[ Luxottica LyonBas A LyonBas B M&T Bk MDU Res MGM Rsts MSC Ind MSCI Inc Macerich MagelMPtr MagnaI gs MagyarTel Makita ManpwI Manulife g MarathonO Markel MarkWest MarIntA MarshM MartMM MarvellT Masco MasseyEn MasterCrd Mattel MaximIntg McCorm McDrmInt s McDnlds McGrwH McKesson McAfee MeadJohn MeadWvco Mechel MedcoHlth Medtrnic MelcoCrwn MercadoL Merck Methanx MetLife MetroPCS MettlerT Microchp MicronT MicrosSys Microsoft Millicom Millipore MindrayM MitsuUFJ Mitsui MizuhoFn MobileTel s Mohawk MolsCoorB Monsanto MonstrWw Moodys MorgStan Mosaic MurphO Mylan NII Hldg NRG Egy NTT DOCO NV Energy NVR NXP Sem n NYSE Eur Nabors NalcoHld NasdOMX NBkGreece NatFuGas NatGrid NOilVarco NatRetPrp NatSemi NatwHP NatResPtrs Navistar NetServic NetApp Netease NetďŹ‚ix Nevsun g NwGold g NewOriEd NY CmtyB NewellRub NewďŹ‚dExp NewmtM NewsCpA NewsCpB Nexen g NextEraEn NiSource Nidec NikeB NipponTT NobleCorp NobleEn NokiaCp Nomura NordicAm Nordson Nordstrm NorďŹ‚kSo NortelInv NoestUt NorTrst NorthropG NovaGld g Novartis Novlus NovoNord NSTAR NuanceCm
BWij 9^] 26.81 +.24 29.88 +.67 29.87 +.63 78.50 +1.54 20.78 +.34 12.38 +.16 61.89 +1.75 35.21 +1.15 46.67 +.33 56.22 +.22 49.93 +2.29 14.33 36.40 +.11 57.27 +1.32 14.35 +.44 34.15 +.68 353.00 -.49 41.89 -.44 40.22 +1.01 25.77 +.69 88.39 +3.85 20.20 +.92 11.68 +.77 49.60 +.49 248.19 +11.16 25.62 +.61 23.84 +.59 44.40 +.39 19.00 +.67 79.29 +.99 35.03 +.54 65.67 +1.77 46.97 +.12 60.15 +.58 25.61 +.77 24.47 +.99 62.55 +1.23 33.91 +.38 6.14 +.17 66.68 +3.06 35.06 +.59 30.08 +.77 39.30 +1.15 12.40 +.25 145.93 +.75 34.50 +.89 7.39 +.12 44.80 +1.08 26.04 +.78 90.18 +3.40 106.95 26.16 -.09 4.77 +.06 317.59 +4.45 3.21 +.08 21.09 +.12 54.35 +1.81 48.46 +.81 61.73 +1.81 22.97 +.39 26.94 +.11 24.92 +.46 68.49 +.86 69.32 +1.80 19.78 +.21 40.04 +1.28 19.16 -.22 16.24 -.02 13.89 +.20 644.95 +24.97 13.26 +.68 28.18 +.86 22.84 +.75 30.02 +.60 22.57 +1.10 1.89 +.21 64.94 +1.58 43.59 -.40 61.99 +.81 26.29 +.28 13.62 +.27 35.51 -.54 31.25 +.84 54.49 +3.31 13.34 +.06 52.19 +1.26 38.96 +.78 200.14 -5.76 5.97 +.29 9.53 +.15 105.79 -.01 16.87 +.07 17.37 +.60 68.45 +1.62 59.65 +.82 14.07 +.43 15.68 +.44 21.29 +.37 50.93 +.31 17.03 +.30 25.76 +.78 87.64 +1.51 22.74 +.10 34.68 +.76 83.54 +2.29 9.60 +.37 5.78 +.06 25.96 +.09 82.24 +2.81 43.43 +.63 61.52 +1.35 29.66 -.79 31.59 +.49 51.52 +1.22 63.35 +1.67 14.58 +.19 54.11 +.70 31.08 +.93 101.38 +1.96 41.96 +.56 17.90 +.23
DWc[ Nucor NustarEn Nvidia OGE Engy OReillyA h OcciPet Oceaneer OilStates OldRepub Omnicom OnSmcnd ONEOK ONEOK Pt Oracle Orix OwensCorn OwensIll PG&E Cp PNC POSCO PPG PPL Corp Paccar PallCorp PanASlv Panasonic PaneraBrd ParkerHan PrtnrCm PartnerRe Patterson PattUTI Paychex PeabdyE Pearson Pengrth g PnnNGm PennWst g Penney Pentair PeopUtdF PepcoHold PepsiCo PerkElm Perrigo PetChina Petrohawk PetrbrsA Petrobras PetsMart PďŹ zer PharmPdt PhilipMor PhilLD PhilipsEl PhlVH PinWst PioNtrl PitnyBw PlainsAA PlainsEx PlumCrk Polo RL Polycom Popular PortglTel Potash Praxair PrecCastpt PriceTR priceline PrideIntl PrinFncl ProctGam ProgrssEn ProgsvCp ProLogis Prudentl Prud UK PSEG PubStrg QEP Res n QIAGEN Qualcom QuantaSvc QstDiag Questar s QwestCm RPC Rackspace Ralcorp Randgold RangeRs Rayonier Raytheon RltyInco RedHat ReedElsNV ReedEls plc RgcyCtrs RegncyEn RegionsFn ReinsGrp RelStlAl RenaisRe Repsol RschMotn ResMed s ReynAm s RioTinto s Riverbed s RobtHalf RockwlAut RockColl RockwdH RogCm gs Roper RossStrs Rostelecm Rovi Corp Rowan
BWij 9^] 39.22 67.36 14.21 44.99 60.71 90.25 73.05 60.50 12.92 46.47 8.69 51.44 79.74 27.65 43.75 27.70 27.82 47.70 55.17 100.62 79.86 25.58 55.88 46.22 38.55 14.47 101.90 83.19 21.01 78.00 30.25 20.46 29.31 60.88 15.06 13.06 35.48 22.04 33.70 33.51 12.56 18.55 65.63 23.93 61.13 127.38 18.38 30.06 33.32 38.51 16.70 25.14 57.70 55.33 28.15 70.02 41.03 84.27 22.34 61.36 29.00 36.99 110.59 37.63 2.90 12.88 144.93 93.51 140.78 59.46 403.10 31.76 28.16 62.15 44.01 20.56 13.03 51.95 18.84 31.46 98.21 36.45 18.60 47.89 17.80 50.37 16.75 7.05 30.23 30.00 62.08 94.05 42.83 51.49 47.25 34.00 46.23 23.86 32.27 41.05 26.00 5.67 51.02 46.60 60.74 25.35 61.82 32.88 31.87 66.53 34.27 28.82 67.61 57.37 38.49 35.64 73.75 65.59 27.35 54.95 31.06
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BWij 9^] 55.36 12.53 62.16 62.29 52.11 30.91 15.81 47.59 40.95 23.05 18.71 66.08 11.99 51.68 67.06 9.15 47.71 23.33 39.75 144.04 46.90 31.46 15.32 45.77 80.85 15.69 51.00 51.34 32.74 13.92 23.62 67.58 50.55 22.35 27.67 20.63 32.58 75.99 79.30 69.90 15.95 115.62 64.87 40.00 5.30 37.90 99.84 17.31 66.93 50.82 1.39 26.48 46.41 17.78 64.35 54.54 51.46 48.80 33.32 36.47 38.23 43.14 23.99 13.42 35.53 36.88 24.44 3.77 60.44 22.29 31.70 58.42 44.80 20.57 16.36 75.54 9.72 14.65 50.95 6.18 27.72 34.79 40.71 17.14 56.03 26.51 29.40 25.08 17.38 16.94 33.55 45.59 49.18 11.11 19.53 58.02 31.00 48.99 51.50 14.42 24.79 8.18 12.90 10.77 23.96 67.28 16.47 16.64 18.19 17.31 44.25 44.26 41.74 25.37 35.60 34.35 16.81 32.58 22.98 51.55 36.87
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DWc[ 3M Co TibcoSft Tiffany THorton g TW Cable TimeWarn Timken TitanMet TollBros Trchmrk TorDBk g Total SA TotalSys Toyota TractSup s TrCda g Trnsalta g TransAtlH TransDigm Transocn Travelers TrimbleN Tuppwre Turkcell TycoElec TycoIntl Tyson UBS AG UDR UGI Corp UMH Prop URS UltraPt g Ultrapar UnilevNV Unilever UnionPac UtdContl UtdMicro US Bancrp USSteel UtdTech UtdTherap UtdhlthGp UnvHlth s UnumGrp UrbanOut VF Cp Vale SA Vale SA pf ValeantPh ValeroE Validus Valspar VarianMed Ventas VeoliaEnv VeriFone Verisign Verisk VerizonCm VertxPh ViacomB VimpelCm VimpelC n VirgnMda h Visa VivoPart VMware Vodafone Vornado VulcanM WPP plc WABCO WalMart Walgrn WalterEn WarnerCh s WasteCon s WsteMInc Waters WatsnPh WeathfIntl WebMD WeinRlt WellPoint WellsFargo WestarEn WDigital WstnUnion Westpac Weyerh Whrlpl WhitingPet WholeFd WmsCos WmsPtrs WmsSon WillisGp WimmBD Windstrm Wipro s WiscEn WooriFn Wyndham Wynn XL Grp XcelEngy Xerox Xilinx YPF Soc Yahoo Yamana g YanzhouC YumBrnds Zimmer ZionBcp
BWij 9^] 86.05 20.11 62.75 39.99 64.00 30.21 46.04 18.07 18.46 58.89 74.07 49.57 15.28 79.58 43.79 36.24 20.61 51.08 69.18 67.74 54.89 37.98 47.10 17.26 31.93 38.97 16.50 15.52 22.50 30.38 9.60 41.05 47.75 60.13 29.09 28.43 91.42 28.37 2.96 24.21 50.29 78.26 62.45 37.67 41.14 22.20 38.12 83.99 32.84 29.30 26.92 20.16 29.42 33.74 67.72 50.67 26.73 35.90 35.04 30.89 32.35 33.46 39.22 15.78 15.47 26.17 75.22 29.38 83.96 25.87 82.01 41.94 57.02 51.76 54.70 35.67 105.89 19.42 26.23 34.55 78.71 49.78 21.16 51.02 24.05 56.49 27.53 25.20 34.15 18.03 105.55 17.05 74.30 112.22 47.86 23.33 46.89 34.24 32.49 24.50 13.24 13.78 60.27 37.72 29.95 104.79 20.17 23.81 11.76 27.99 39.00 16.15 11.93 28.87 50.41 50.13 19.87
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12/2/2010 5:36:25 AM
THE MIAMI HERALD
THURSDAY, DECEMBER 2, 2010
Tumors’ fuel line new target in cancer research BY ANDREW POLLACK New York Times Service
For the last decade, cancer drug developers have tried to jam the accelerators that cause tumors to grow. Now they want to block the fuel line. Cancer cells, because of their rapid growth, have a voracious appetite for glucose, the main nutrient used to generate energy. And tumors often use glucose differently from healthy cells, an observation ﬁrst made by a German biochemist in the 1920s. That observation is already used to detect tumors in the body using PET scans. A radioactive form of glucose is injected into the bloodstream and accumulates in tumors, lighting up the scans. Now, efforts are turning from diagnosis to treating the disease by disrupting the special metabolism of cancer cells to deprive them of energy. The main research strategy of the last decade has involved so-called targeted therapies, which interfere with genetic signals that act like accelerators, causing tumors to grow. But there tend to be redundant accelerators, so blocking only one with a drug is usually not enough. In theory, however, depriving tumors of energy should render all the accelerators ineffective. “The accelerators still need the fuel source,” said Chi Dang, a professor of medicine and oncology at Johns Hopkins University. Indeed, he said, recent discoveries show that the genetic growth signals often work by inﬂuencing cancer cells’ metabolism. The efforts to exploit cancer’s sweet tooth are in their infancy, with few drugs in clinical trials. But interest is growing among pharmaceutical companies and researchers. One factor spurring interest in cancer metabolism is the intriguing interplay be-
GLIMMER OF HOPE: Although efforts to influence the metabolism of cancer cells are in the initial stages, interest is growing among medical companies and researchers. tween cancer and diabetes, a metabolic disease marked by high levels of blood glucose. The possible link between the two great scourges has garnered so much attention that the American Cancer Society and the American Diabetes Association jointly published a statement this summer summarizing the evidence. People with Type 2 diabetes tend to have a higher risk of getting certain cancers. And preliminary evidence suggests that metformin, the most widely used diabetes pill, might be effective in treating or preventing cancer. It is still not clear if high blood glucose is the reason diabetics have a higher cancer risk. A more likely explanation is that people with Type 2 diabetes have high levels of insulin, a hormone that is known to promote growth of
certain tumors, according to the consensus statement. Even if blood sugar levels fuel tumor growth, however, experts say that trying to lower the body’s overall level of blood sugar — like by starving oneself — would probably not be effective. That is because, at least for people without diabetes, the body is very good at maintaining a certain blood glucose level despite ﬂuctuations in diet. “When a patient with cancer is calorically restricted, the amount of glucose in the blood until they are almost dead is close to normal,” said Michael Pollak, professor of medicine and oncology at McGill University, Montreal. So efforts are focusing not on reducing the body’s overall glucose level but on interfering speciﬁcally with how tumors use glucose.
This gets to the Warburg effect, named after Otto Warburg, the German biochemist and Nobel Prize winner who ﬁrst noticed the metabolism of tumors in the 1920s. Most healthy cells primarily burn glucose in the presence of oxygen to generate ATP, a chemical that serves as a cell’s energy source. But when oxygen is low, glucose can be turned into energy by another process, called glycolysis, which produces lactic acid as a byproduct. Muscles undergoing strenuous exercise use glycolysis, with the resultant buildup of lactic acid. What Warburg noticed was that tumors tended to use glycolysis even when oxygen was present. This is puzzling because glycolysis is far less efﬁcient at creating ATP. One theory is that cancer
cells need raw materials to build new cells as much as they need ATP. And glycolysis can help provide those building blocks. “You can have energy that turns on the lights in your house, but that energy can’t build anything,” said Matthew G. Vander Heiden, assistant professor of biology at the Massachusetts Institute of Technology. Still, as with everything else about cancer, metabolism is complex. Not all tumor cells use glycolysis, and some normal cells do. So it could be challenging to develop drugs that can hurt tumors but not normal cells. Two early efforts by a company called Threshold Pharmaceuticals to interfere with glucose metabolism did not work well in clinical trials. One of Threshold’s drugs, called 2DG, is the same form of
glucose used in PET imaging, but without the radioactivity. Because of a slight chemical modiﬁcation, this form of glucose cannot be metabolized by cells, so it accumulates. Yet another approach is not to starve a tumor of energy but to give it more energy, and that is the idea behind a substance called dichloroacetate, or DCA. Evangelos Michelakis of the University of Alberta, who came up with the idea, says there is a mechanism by which cells that become defective and commit suicide for the greater good of the body. But cancer cells usually do not kill themselves. Michelakis says this could be because they lack sufﬁcient energy. DCA, a simple chemical that is formed in small quantities when drinking water is chlorinated, has long been used to treat certain rare diseases in which lactic acid builds up in the body. DCA inhibits an enzyme called pyruvate dehydrogenase kinase. The effect of that inhibition is to move metabolism away from lactic acid-producing glycolysis and toward more normal oxidation of glucose in the mitochondria, the energy factories of the cell. In 2007, Michelakis and colleagues published a paper showing that DCA, when put in drinking water, could slow the growth of human lung tumors implanted into rats. It seemed the DCA did not affect normal cells. Since DCA is not a novel compound, it cannot be patented, making it unlikely a pharmaceutical company would pay for clinical trials. So Michelakis has been raising money from foundations and governments to conduct larger clinical trials. “We have only assumptions and theoretical excitement,” Michelakis said. Still, he added, “there’s no question that this is a new direction that is logical and very appealing.”
For treatments, NFL players pin hope on acupuncturist BY GREG BISHOP New York Times Service
Stretched out on a massage table in his Long Island City condominium Jets fullback Tony Richardson closed his eyes. Over the next hour, he groaned and grimaced and eventually fell asleep, as Lisa Ripi, the traveling NFL acupuncturist, went to work. Ripi poked and prodded Richardson on a recent Tuesday, using blue and pink needles, until his body resembled aroadmap marked with 120 destinations. SportsCenter provided mood music. Afterward, Richardson said his soreness had mostly vanished. “They always tell me I’m their little secret,” Ripi said. “I feel like the little mouse who takes the thorns out of their feet.” Professional football players partake in a violent game, and as the season progresses, they spend more time in training rooms than on practice ﬁelds. They visit chiropractors and massage therapists, practice yoga, undergo electronic stimulation and nap in hyperbaric chambers. Yet relatively few receive acupuncture, which brings smiles to the faces of Ripi’s clients. They remain ﬁercely territorial. They ﬁght over Fridays because it is closest to their games. They accuse one another of hogging, or trying to steal her. All swear by Ripi’s technique, which she described as closer to Japanese-style acupuncture than to traditional Chinese methods. She focuses less on established points and more on sore areas, using needles to increase blood ﬂow, relaxing muscles tightened in the weight room. Players say her sessions are their most important treatment. They feel
more loose, more ﬂexible. Richardson ﬁnds acupuncture uncomfortable but said it made an immediate 10 percent difference. For sculptured bodies tuned like racecars, 10 percent constitutes a signiﬁcant improvement. As Pittsburgh linebacker James Farrior said: “I’m not the same if I don’t have it. It’s like getting the game plan. You can’t go into the week without either one.” Ripi, 46, travels at least 20 days each month during the season, treating 40 players on ﬁve teams (the Ripi Division: Jets, Giants, Steelers, Bengals and Dolphins). She ﬂies to Miami on Sunday, Pittsburgh on Monday, New York on Tuesday, Cincinnati on Wednesday, back to Pittsburgh on Thursday and back to New York on Friday. She works 96 hours a week and naps mostly on airplanes. By Friday, even her assistant sends “hate texts,” Ripi said. In 13 years of working with NFL players, Ripi said proudly, she never missed an appointment. She did miss dozens of holidays, did have three marriages end in divorce, did make abundantly clear her ﬁrst priority. “Think of the impact she has every Sunday,” Richardson said. “And it’s funny, because she’s not really a football fan, or really recognized. But we know her importance.” Ripi took a winding path into acupuncture: art school, aerobics instruction, massage therapy and body building, in which she qualiﬁed for several national competitions. Despite standing 5 feet 3 inches, she squatted and dead-lifted 250 pounds. In 1996, a friend suggested that acupuncture would alleviate Ripi’s shoulder pain, and after two sessions,
it disappeared. So Ripi went to school for acupuncture and Chinese pharmacology and ﬁnished the ﬁve-year program in four years. Soon after, while visiting another friend in Costa Rica, Ripi met the actor Woody Harrelson, who asked for treatment “posthaste,” she said. She slipped a business card into Harrelson’s luggage, which led to two years of traveling with and treating him, and to other celebrity clients like the singer Mariah Carey. Back in New York in March 1998, Ripi was referred to Jumbo Elliott, an injured offensive tackle for the Jets. She knew nothing about football and assumed Elliott was a body builder until she saw his Jets memorabilia. He later offered to take her to training camp and introduce her to his teammates. She met her core group of clients that summer in Hempstead, N.Y., and as the players switched teams — Farrior to Pittsburgh and Chad Pennington to Miami — her business and travel expanded.
Ripi views the players more as brothers than clients. She saw the world with Cincinnati linebacker Dhani Jones for his Travel Channel show. She stores tables at the players’ houses; travels to training camps, Super Bowls and Pro Bowls; works every Christmas and Thanksgiving. Ripi’s services are not cheap. She charges $220 for one treatment or $1,200 each day, and expenses. She spends roughly 12 hours each Thursday treating at least 10 players at Farrior’s house, where the Steelers hold their men’s “spa night” featuring acupuncture. Ripi cooks dinner for them, and they play cards while they wait turns. She starts with nose tackle Casey Hampton at 3:30 p.m. and ﬁnishes with Harrison roughly 12 hours later. Ripi can tell the position each plays simply on the location of the pain: wide receiver (legs, shoulders), offensive lineman (elbows, back), quarterback (throwing shoulder), defensive lineman (back), running back (hamstring).
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On Sundays, she sometimes watches football. But Ripi’s clients often face one another, prompting conﬂicting emotions, especially when a defensive client mauls an offensive client, and she ponders how she will treat the resulting pain.
“I take what I do seriously,” Ripi said. “It’s a euphoric, spontaneous feeling. They come ﬁrst. Before anything. Before me.” With that, Ripi went home to pack. The traveling NFL acupuncturist had a ﬂight to catch.
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12/2/2010 2:58:21 AM
THURSDAY, DECEMBER 2, 2010
THE MIAMI HERALD
BY JIM DAVIS
For more comics & puzzles, go to www.MiamiHerald.com/comics.
ACES ON BRIDGE
Opening lead — ♠ king
she might have made a simple overcall rather than a weak jump. The normal effect of a ruff Additionally, rising with and sluff is to allow declarer the ace, then discovering later to succeed in an otherwise that the club king was onside, unmakable contract. So how are you to know when the right could cost heavily in the scorWEST EAST ing. Moreover, nobody likes to moment has arrived? In prin♠ A K 10 9 4 2 ♠8 ♥ 10 5 3 ♥ Q J 7 6 4 ciple, it is when declarer can be concede a psychological edge placed with all the missing side- in this way. So South inserted ◆8 ◆Q976 her queen, West captured it, suit honors. ♣K64 ♣753 and believing that there were In this deal, from the 2008 Warren Buffett Cup, Jill Meyers no further plain-suit defensive SOUTH tricks to come, returned anothled her two top spades against ♠J75 three diamonds, then continued er spade. ♥A98 This proffered ruff and diswith the spade deuce, ruffed ◆K432 card was the killer defense. If by Larry Cohen. East dutifully ♣AQ2 returned the club requested by declarer ruffed low in dummy or discarded, East would ruff in Meyers’ suit-preference signal. Declarer, Sabine Auken, was with the nine, forcing South’s Vulnerable: East-West king and ensuring that his at the crossroads. Her oppoDealer: East queen would score a trick. And nents, who numbered among if declarer ruffed with the diathe cream of the world’s playThe bidding: mond jack, East would discard, ers, were well capable of psySouth West North East chic signaling. Auken reasoned establishing a trump trick for Pass himself. that if West held the club king 1◆ 2♠ 3◆ All pass in addition to her spade honors, NORTH ♠Q63 ♥K2 ◆ A J 10 5 ♣ J 10 9 8
BY SCOTT ADAMS
CHESS QUIZ ZITS
BY JIM BORGMAN AND JERRY SCOTT
BY CHARLES SCHULZ
WHITE TO PLAY Hint: Force checkmate.
Solution: 1. Qf5ch! Kc6 2. Qb5 mate. If instead 1. ... Ke1 (or ... Ke2), 2. Qf7 mate.
BY HECTOR CANTU AND CARLOS CASTELLANOS
BY GARRY TRUDEAU
BY RICK KIRKMAN AND JERRY SCOTT
Dear Abby: I’m responding to the letter from “Petless in Maryland” (10/13), who moved without her dog, cat and goldfish, but wants to encourage her son’s love of animals. Your advice was spot-on, but there is a deeper issue that was not addressed. By moving and leaving their pets behind, she has taught her son that animals are “disposable.” An animal is a commitment for life, not an object to be disposed of once one’s lifestyle changes. A pet is a member of the family, the same as a child or other family member. “Petless” should have kept looking until they found an affordable place where they could keep their pets. The shelters are full of pets who have been abandoned by their families due to moves, divorces, etc. “Petless” cannot afford the fees to keep a pet — but I’m willing to bet that she can afford a cell phone, cable TV, etc. She missed a chance to teach her son how to be a responsible pet owner, and how to honor the commitment that was made to those pets. What a shame. Responsible Pet Owner, Reading, Pa.
“kid-tested” dogs that would get along great with her son. It would not only be an excellent way to encourage the boy, but also a wonderful thing for the dogs. Ashley in San Marcos, Calif.
Your point is well-taken, and some readers did agree with you. However, not knowing the woman’s circumstances, I am unwilling to judge her. Other readers did reach out to offer ways to encourage “Toby” to love animals and someday become a responsible pet owner. Read on:
Although I don’t have statistics, I do have testimonials from individuals who have found therapy to be beneficial. I have printed some of them in this column. I do, however, have a suggestion for you: After eight years and “very little progress,” you may be with the wrong person, and you should seriously consider changing therapists.
Dear Abby: How about “Petless” contacting a senior center to see which seniors might need assistance with walking their dogs or with cat care? An assisted-living facility could also use this type of help. It would provide “Toby” a chance to share the love of animals, and the elderly residents would welcome such a sweet helper. Pegeen in Rio Rancho, New Mexico Dear Abby: You frequently recommend readers seek therapy. I have been in therapy for eight years and see very little progress. Do you have any statistics that prove how helpful therapy is? Skeptical in San Francisco
ANSWER TO WEDNESDAY’S PUZZLE:
Dear Abby: There are a lot of options for pet lovers without resources for permanent adoption. “Petless” could contact the local SPCA and other agencies that might be looking for volunteers to have “visits” with pets. There is also a pretty big market for “dog walkers.” There is even a market for pet sitters, who do it to make extra money for their families. Sandi in San Francisco Dear Abby: There are rescue groups that have to put some of their adoptable dogs into boarding while they wait for a forever home. These dogs would love an hour or two of “breaking jail” for a walk or a trip to the dog park. A reputable organization would know the personalities of their dogs and be able to steer the mom toward
HOROSCOPE IF TODAY IS YOUR BIRTHDAY: Count your blessings as the winter unfolds. This month, you should be conscientious about attending to your responsibilities even if they seem dull and unexciting. • SAGITTARIUS (Nov. 22-Dec. 21): You can be aware of flaws in the system without making them an area of contention. • CAPRICORN (Dec. 22-Jan. 19): Kind words and gentle persuasion will fasten the knots of affection more securely than a tough attitude.
• AQUARIUS (Jan. 20-Feb. 18): You can get more than a paper cut if you handle the competitive edge. • PISCES (Feb. 19-March 20): Deal with problems that arise like the rugged campaigner that you wish to be. • ARIES (March 21-April 19): This is not a good time to implement key initiatives because you might be only acting in an effort to buck the system or to prove your independence. • TAURUS (April 20-May 20): Never stand up in a boat and call attention to yourself when the sea is rough. • GEMINI (May 21-June 20): Maintain a fragile balance as you walk the tightrope of relationships. • CANCER (June 21-July 22): Acclimatize to minor changes. It might be wise to mirror someone else’s attitudes to achieve harmony. • LEO (July 23-Aug. 22): Even if your heart says yes, wait for better timing to make an important promise or proposal. • VIRGO (Aug. 23-Sept. 22): It’s getting better all the time. You are feeling more confident and able to fix whatever is wrong with aplomb. • LIBRA (Sept. 23-Oct. 22): Your favorite companions might disapprove of newfangled ideas, or of making changes, but that needn’t hold you back. • SCORPIO (Oct. 23-Nov. 21): Blend opposite viewpoints like paint in a bucket until they are one. It might be time to think things through dispassionately.
CROSSWORD ACROSS 1 Having bristles 6 Sheepish response 9 One of the Obama girls 14 Go from rock to dust 15 Draw away from shore, as a tide 16 Apples, pears and such 17 “Are too!” comeback 18 Priestly attire 19 Bouts of enthusiasm 20 Significant other 23 On, as a kerosene lamp 24 Debtor’s promise 25 Sang on a peak 27 Divers’ protectors 32 Unwelcome word at a china shop 33 Go down the wrong path 34 Dare alternative, in a party game 36 One may do this idly 39 One-sidedness 41 Boy Scouts’ unit 43 Ailment answer 44 Obscure 46 Pacific island nation 48 Air-travel watchdog grp. 49 Cannes canful 51 Forward, as a call 53 The Kansas City Star and Baltimore Sun, for two 56 Socrates’ T 57 Duke’s conference 58 Product-holding plastic 64 Unexciting, low-paying
position, in slang 66 “___ the season to be jolly” 67 Major responsibility for a parent? 68 “___ Ben Jonson!” (misspelled epitaph) 69 “Turn to Stone” rockers 70 Boredom 71 Title giver 72 Letters of distress 73 Oceans, poetically DOWN 1 Clothing junction 2 Humor columnist Bombeck 3 Singer Braxton or Tennille 4 Handsome Greek of myth 5 Spills the beans 6 “___ Geste” 7 Sufficiently skilled 8 “___ Road” (Beatles album) 9 Skimpy swim-meet garb 10 Co. in a 2001 merger with Time Warner 11 What not to sweat 12 Legendary skater Sonja 13 Like gift-box chocolates (Abbr.) 21 Riding whip 22 San Diego attraction 26 Grand in scale 27 “Dragnet” actor Jack 28 Great Lake bordering
New York 29 Commuter’s congestion problem 30 Change color, like leaves 31 Ermine in summer 35 3,600 seconds 37 Hillside in Scotland 38 It’s marked by a ring in a trunk
40 42 45 47 50
Earth in the garden Blather on More smooth-tongued Without weapons Brooks of “Blazing Saddles” 52 Lying face-up 53 He played Private Ryan 54 Capital and largest
city of Ghana 55 Online locales 59 Where fodder is stored 60 General ___ chicken (Chinese entree) 61 Actress Bancroft 62 ___ de grace 63 Kristofferson of “Blade” 65 Metal from a mine
12/1/2010 9:07:06 PM
THE MIAMI HERALD
THURSDAY, DECEMBER 2, 2010
Suit accuses head of IMG of collegiate gambling BY JOE DRAPE New York Times Service
While the sports and entertainment conglomerate IMG Worldwide was representing top college coaches from 2004 to 2007, its chairman, Ted Forstmann, was betting hundreds of thousands of dollars on college football and the NCAA men’s basketball tournament, according to a lawsuit ﬁled in October in Los Angeles County Superior Court. The lawsuit comes at a time when the NCAA is grappling with the continuing problem of gambling among its student-athletes and those involved in college athletics. A 2008 NCAA study of collegiate gambling, for example, found that nearly
30 percent of all male athletes admitted wagering at least once in a year’s time on college or pro sports in violation of NCAA rules. In that same study, 0.9 percent of the responding players in Division I football and 0.6 percent of those in men’s basketball said they had accepted money or some other reward for “playing poorly” in games. One percent to 2 percent of athletes in each sport said they knew of teammates who did so, according to the study. Through a spokesman, Forstmann said the allegations outlined in the lawsuit are inaccurate and IMG said that he has not been involved in the ﬁrm’s representation
of college coaches. Over the years, IMG has become a signiﬁcant presence in the multibillion-dollar business of college sports. Shortly after Forstmann made scores of bets worth nearly $100,000 on the 2007 NCAA men’s basketball tournament, according to the lawsuit, IMG increased its investment signiﬁcantly in collegiate athletics. In May 2007 it bought the Collegiate Licensing, a licensing and marketing company, and followed in November 2007 with the purchase of Host Communications, a longtime NCAA partner offering corporate sponsorships, radio and television programs, Internet, national advertising
Back-scratching with a global reach • FIFA, FROM 8B
since 1966. Lately, Russian money and power has asserted itself, and ﬁnancially strapped Spain and Portugal have been rumored to form a new and special friendship with oil-rich Qatar and the South American voters, giving the United States cause to be quite nervous. For most nations, hosting the World Cup is a dubious prize, as proved by the recent World Cup in South Africa, which mustered great talent and energy but was stuck with new stadiums yawningly empty in the aftermath. Major sports events are often ruinous to the fragile economies of the hosts — Greece after the 2004 Olympics comes to mind. FIFA is on record that it wants to move the World Cup from continent to continent — admirable on one level, risky on another. The United States would seem to be a no-brainer for 2022; it sold a record 3.5 million tickets during a highly successful World Cup in 1994. The United States is proposing to sell an unprecedented ﬁve million tickets in stadiums that are already built, using hotels and roads already in place. Which may not count for much. U.S. fans also bought copious numbers of tickets to the South African World Cup while stay-at-homes packed urban pubs for just about every game. Also, the U.S. national team has played in six consecutive
World Cups, getting past the ﬁrst round three times. Which may be almost as irrelevant as the claim that another World Cup would help build the United States as a soccer power. One impediment to a U.S. World Cup is that FIFA loves U.S. dollars and U.S. vacations, but cannot control U.S. government and U.S. corporations the way it does in other parts of the world. FIFA, ever crafty, noted in its evaluation that the U.S. government had not provided written assurance of ﬁnancial support for 2022. One would like to think FIFA leaders are sophisticated enough to know the United States already has more than enough American football stadiums in place, needing only to remodel the corners to allow for the wider soccer ﬁeld. The United States is not a walkover for 2022. Japan and South Korea, co-hosts in 2002, are probably blocked by China’s potential candidacy for 2026. Everybody loves Australia, but its distant time zones may be inconvenient for television. Then there is Qatar, which has never qualiﬁed for a World Cup but is perfectly willing to build as many as nine new stadiums in a cluster by 2022, and dismantle most of them after the last whistle, and move them to disadvantaged countries. Qatar is talking up a green World Cup, but at the same time is promising to air-condition stadiums against 110-degree Fahrenheit temperatures, which
Woods comes back to World Challenge • WOODS, FROM 8B
four times, most recently in 2007. He did not record a victory in 12 PGA Tour starts in 2010, the ﬁrst time since he turned professional in 1996 that he failed to win a tournament. He said repeatedly he was very excited about the future because of the work he had done on and off the course. On the driving range, Woods has completed a major swing change involving less of a weight shift and more rotation. In his personal life, he has submitted to treatment for an undisclosed addiction and devised a strategy, he said, for steering clear of any relapse. “It’s creating boundaries,” Woods said, “and like I said from the very get-go, there was some boundary failure.” His news conferences remain the same as they were, with Woods in a stilted dance with reporters in which he keeps everybody at arm’s length. He talked about trying to become a little better “each and every day” and spoke of being a “new man,” without elaborating. In His Father’s Son, a recently published book on Woods by Tom Callahan, the golfer’s former swing coach, Hank Haney, is quot-
ed saying he would not have been surprised if Woods had followed the example of Michael Jordan and left his sport after the death in 2007 of his father, a former Green Beret. “When Earl died, I thought there was a strong possibility Tiger was going to give it all up to go in the service,” Haney said. Asked if he had entertained the notion, Woods said, “I didn’t.” When pressed, he added: “Well, I’ve always wanted to become a SEAL. That’s something that I told my dad from the very get-go, either I’m going to become a professional golfer or I’m going to become a Navy SEAL.” Woods continues to view golf as his calling, and it is obvious the sport continues to hold his attention. He was never more expansive than when addressing the mechanics of his swing. Woods’ facial expression softened and his voice took on a less protective, more professorial tone, as he explained: “I’m getting to the same impact position a different way, and that is very different. But also some of the motor patterns when I feel impact, I’ve been here before. So that’s not new.”
somehow does not sound very green. The vote in Zurich will be complicated by celebrity lobbyists, a growing trend. In 2004, the frail Nelson Mandela was forced to ﬂy to Trinidad and Tobago to lobby a World Cup vote from the manipulative delegate Jack Warner. In 2005, Tony Blair, then prime minister of Britain, ﬂew to Singapore and worked the room of Olympic delegates, helping London gain the 2012 Games over Paris. Prime Minister Vladimir V. Putin of Russia attended the subsequent vote for the 2014 Winter Games, and the city of Sochi was chosen over a more prepared region of South Korea. In 2009, Brazil’s president traveled to Copenhagen, Denmark, to support Rio de Janeiro for the 2016 Olympics, and U.S. President Barack Obama ﬂew there to represent Chicago. It was Rio’s time, South America’s time, and only a political opponent could fault Obama for sticking up for a great U.S. city. This time, England will be represented by Prince William, David Beckham and Prime Minister David Cameron. Putin is expected to attend, as is the emir of Qatar, Sheikh Hamad bin Khalifa al Thani, and top ofﬁcials of other countries. Former U.S. President Bill Clinton and the actor Morgan Freeman (who portrayed Mandela in the ﬁlm Invictus) are traveling to Zurich as the face of the U.S. bid.
and signage sales. Now, IMG is the licensing agency for nearly 200 collegiate properties, including the NCAA, the Bowl Championship Series, the Rose Bowl and universities like the University of Kentucky. Wally Renfro, an NCAA vice president, said the IMG provides licensing support, game programs and ancillary events production, including those surrounding the NCAA men’s basketball tournament. The suit contends that Forstmann bet more than $600,000 — in amounts from $2,000 to $23,000 — on the men’s basketball tournament from 2004 to 2007 while IMG was representing college basketball coaches.
“IMG was not representing the NCAA from 2004 to 2007,” Renfro said. “However, as almost everyone knows, the NCAA doesn’t like anyone betting on college sports.” The alleged betting habits of Forstmann, 70, a billionaire and philanthropist, ﬁrst came to light last month in the lawsuit ﬁled by Agate Printing, which alleges fraud, interference with contract and breach of contract. In the complaint, Jim Agate, the head of Agate Printing, is seeking extensive damages for lost business that he said Forstmann had promised him. In the suit, Agate also contended that he placed millions of dollars in bets on behalf of Forstmann — among
IT TAKES TWO TO TANGO
ANDREW YATES/AFP-GETTY IMAGES
FC Red Bull Salzburg defender Rabiu Afolabi, top, vies with Manchester City’s Mario Balotelli during their UEFA Europa League Group A match in Manchester, England, on Wednesday. City won the game 3-0.
Sports training for babies, toddlers • BABIES, FROM 8B
and it comes out some sort of ﬁne arts major,” he said. “There are millions of American parents worried to death that their children might fall behind somebody else’s kid. So the emphasis in youth sports has become more, more, more, younger, younger, younger.” The entrepreneurs behind these businesses — gym teachers, accountants and former professional athletes among them — make no claims about turning today’s babies into tomorrow’s Super Bowl star. In the past, marketing claims for products geared toward babies have caused trouble for companies. Disney, which owned the popular Baby Einstein brand, dropped the
term “educational” after a children’s-rights group objected to contentions that babies who watched “Baby Einstein” were learning. Disney also offered refunds. Most sports-video entrepreneurs promote their products as early intervention for combating childhood obesity. Others say they provide time that parents and children can spend together. “We’re not suggesting your kid will turn pro; we have to be careful about that,” said Gigi Fernandez, a former professional tennis player, who is one of the founders of Baby Goes Pro. Fernandez and a business partner started the company this year. A women’s doubles star in the 1990s and a new member of the Interna-
tional Tennis Hall of Fame, she said she got the idea after an unsuccessful search for a DVD she could play for her twins, Madison and Karson, who will turn 2 in April. “There was one introducing kids to golf that I didn’t care for,” Fernandez said. “It was kids running around a golf course whacking balls. They had a driver on the putting green.” Baby Goes Pro’s Discover Sports video would not likely excite ESPN diehards, but there is a lot for a baby. The $10.95 DVD covers ﬁve sports — baseball, basketball, golf, soccer and tennis — while touching on rules and equipment, and features appearances by an animated monkey named Emkei.
Jeter close to 3000-hit milestone • JETER, FROM 8B
either version of Yankee Stadium has been the host for a 3,000th hit for any player on any team. Perfect games? No problem. Landmark home runs? Absolutely. But a 3,000th hit has been a missing piece. Jeter could provide it, and the notion that he could instead reach the milestone while wearing the uniform of the San Francisco Giants and playing a night game in Arizona seems preposterous. When he does get to
the 70 pages of exhibits are dates, amounts and speciﬁc college and professional games wagered on, a wire transfer from Forstmann, and a transcript of a voice mail allegedly left by Forstmann on Sept. 9, 2007, conﬁrming that he had bet $10,000 each on the Mets and the Boston Red Sox, and $20,000 on the New England Patriots. Forstmann declined to answer questions Tuesday about the allegations or his betting history. He has acknowledged publicly that he bet through Agate, including $40,000 on one of his company’s clients, Roger Federer, in the 2007 French Open men’s ﬁnal. He says he quit betting altogether in 2007.
3,000, Jeter will become the 28th member of the fraternity. Right now, he stands in 36th place on the career list, but when the 2011 season begins, he can move past three Hall of Famers — Al Simmons (2,927), Rogers Hornsby (2,930) and Jake Beckley (2,930) — almost immediately, perhaps against Detroit in the Yankees’ opening series. Barry Bonds (2,935) and Frank Robinson (2,943) are next, followed by Willie Keeler (2,955), Sam Crawford (2,964) and Sam Rice (2,987) before Roberto Cle-
mente greets him right at hit No. 3,000. Since his one injury-delayed season, in 2003, Jeter has averaged 1.27 hits and 4.64 plate appearances per game. If he more-or-less follows that pace in 2011, and if manager Joe Girardi sticks to his promise of sprinkling in more days off for a player who will turn 37 in June, Jeter might well notch his 3,000th hit sometime during the Yankees’ 10-game homestand from June 7 to 16 against Boston, Cleveland and Texas.
NBA EASTERN CONFERENCE Atlantic Boston New York Toronto New Jersey Philadelphia
W 13 10 6 6 5
L 4 9 11 12 13
Pct .765 .526 .353 .333 .278
GB — 4 7 71/2 81/2
Southeast Orlando Atlanta Miami Charlotte Washington
W 13 11 10 6 5
L 4 7 8 11 11
Pct .765 .611 .556 .353 .313
GB — 21/2 31/2 7 71/2
Central Chicago Indiana Cleveland Milwaukee Detroit
W 9 9 7 6 6
L 6 7 10 11 12
Pct GB .600 — .563 1/2 .412 3 .353 4 .333 41/2
WESTERN CONFERENCE Southwest San Antonio Dallas New Orleans Memphis Houston
W 15 13 12 8 5
L 2 4 5 10 12
Pct .882 .765 .706 .444 .294
GB — 2 3 71/2 10
Northwest Utah Oklahoma City Denver Portland Minnesota
W 14 12 10 8 4
L 5 6 6 9 13
Pct .737 .667 .625 .471 .235
GB — 11/2 21/2 5 9
Pacific L.A. Lakers Phoenix Golden State Sacramento L.A. Clippers
W 13 8 8 4 3
L 5 9 10 12 15
Pct GB .722 — .471 41/2 .444 5 .250 8 .167 10
TUESDAY’S GAMES Boston 106, Cleveland 87 Orlando 90, Detroit 79 Philadelphia 88, Portland 79 New York 111, New Jersey 100 Memphis 98, L.A. Lakers 96 Indiana 107, Sacramento 98 San Antonio 118, Golden State 98
12/2/2010 5:27:31 AM
THURSDAY, DECEMBER 2, 2010
THE MIAMI HERALD
SPORTS FOR LATE GAME SCORES, GO TO MIAMIHERALD.COM/SPORTS
Grooming athletes while they’re in the crib
BY KAREN CROUSE New York Times Service
THOUSAND OAKS, Calif. — Tiger Woods jumped on the question by the sportscaster Jim Hill the way Hill, a former NFL defensive back, used to jump on receivers’ routes. “With all the talk about this past year,” Hill began, “are you tired of it or is it . . .” “Yes,” Woods interjected. For the embattled Woods, this week is about getting back to his roots, and that does not mean a return to Buddhism. After a twoyear absence, Woods, a Southern California native, is competing in the Chevron World Challenge, an 18-player invitational beneﬁting the Tiger Woods Foundation. It is Woods’ ﬁrst competitive event in Southern California since 2008, when he won the U.S. Open in San Diego. Woods sat out his tournament in 2008 with a knee injury and was conspicuously absent in 2009, withdrawing because of injuries sustained in a car accident last November that pulled back the curtain on his serial adultery. A year marked by seismic changes in his life — a divorce, a new swing coach, the loss of his No. 1 world ranking — will ofﬁcially end in a place that conjures warm memories of a more innocent time. “This is home,” said Woods, who grew up in Orange County and used to make the hour-long drive here with his father, Earl, as a child to watch Greg Norman’s event. Woods, 30, has known Hill since 1981. As Hill recalled, he did an on-camera interview with Woods, who was 6 at the time, in which he asked Woods why he liked golf so much. Woods did not answer, so Hill repeated the question, at which point Woods turned to his father and told him he had to go to the bathroom. Hill laughed and said he still has the exchange on ﬁlm. Over the years, Hill added, he has playfully threatened Woods with unearthing it. At the end of the 25-minute news conference, Woods stepped from the podium and into an embrace with Hill that, despite being on an impossibly tight schedule, Woods seemed in no hurry to extricate himself from. Woods insisted he is the new old Tiger. “It’s been difﬁcult,” he said, referring to the past year, “but also it’s been very rewarding at the same time. It forced me to look deeper into myself and look where — how I grew up and how those things didn’t match with the person who I am, and getting back to that, getting back to how my parents raised me, basically.” Woods has won this event
AT HOME WOODS FINDS OLD COMFORT LEVEL IN SOUTHERN CALIFORNIA
BY MARK HYMAN New York Times Service
As a ﬁtness coach in Grand Rapids, Mich., Doreen Bolhuis has a passion for developing exercises for children. The younger, it seems, the better. “With the babies in our family,” she said, “I start working them out in the hospital.” Bolhuis turned her exercises into a company, Gymtrix, that offers a library of videos starting with training for babies as young as 6 months. There is no lying in the crib playing with toes. Infant athletes, accompanied by doting parents on the videos, do a lot of jumping, kicking and, in one exercise, something that looks like baseball batting practice. “We hear all the time from families that have been with us, ‘Our kids are superstars when they’re in middle school and they get into sports,’ ” Bolhuis said. Future Robinson Canos and Sidney Crosbys are getting their start in sports earlier than ever. Kindergartners play in soccer leagues and at an annual T-Ball World Series in Milton, Fla. But now children are being groomed as athletes before they can walk. The growing competition in marketing baby sports DVDs includes companies with names like athleticBaby and Baby Goes Pro. Even experts in youth sports seem startled that the age of entry has dipped so low. “That’s really amazing. What’s next?” said Dr. Lyle Micheli, an orthopedic surgeon and founder of the ﬁrst U.S. pediatric sports medicine clinic at Children’s Hospital in Boston. Micheli said he did not see any great advantages in exposing babies to sports. “I don’t know of any evidence that training at this infancy stage accelerates coordination,” he said. One of his concerns, he said, is “the potential for even younger ages of overuse injury.” Bob Bigelow, a former National Basketball Association player and a critic of competitive sports for young children, is also skeptical. “This is ‘Baby Mozart’ stuff; you play Mozart for the baby in utero
‘It’s been difficult . . . but also it’s been very rewarding at the same time. It forced me to look deeper into myself and look where — how I grew up and how those things didn’t match with the person who I am, and getting back to that, getting back to how my parents raised me, basically.’ - TIGER WOODS Referring to the horrific past year
ROBYN BECK/AFP-GETTY IMAGES
• TURN TO BABIES, 7B
In voting for the soccer World Cup, all politics is global Voting will be a triﬂe light in Zurich, Switzerland, because two he United States is overof the 24 potential voters on the whelmingly the best candiexecutive committee have been date to hold the 2022 World suspended for appearing all too Cup of soccer. willing to take gifts from bidding Which may not matter. nations during a sting operated by The U.S. bid will be judged a British newspaper. Four former by FIFA, the world soccer body, FIFA executive members were also whose expressed idealism often suspended. scurries around the corner and On Tuesday, FIFA’s president, merges with crassness. Sepp Blatter, stonewalled the In classic form, FIFA has ensuggestion that FIFA postpone sured that vote-trading is inevithe vote after the BBC reported table on Thursday, when members on Monday that bribes were paid will choose from among four Euro- to three executives, from Brazil, pean entries (two are joint bids) Cameroon and Paraguay, who will for the 2018 World Cup and from be voting Thursday. The money is among ﬁve candidates for the said to have gone through Inter2022 tournament. national Sport and Leisure, the BY GEORGE VECSEY
New York Times Service
defunct marketing arm of FIFA. On Tuesday, FIFA issued a statement that the case was beyond the statute of limitations, a highly reassuring view of FIFA ethics. Putting the two bids in the same process has guaranteed previously unknown alliances among the candidates — England, Russia and joint ventures from Belgium/the Netherlands and Spain/Portugal for 2018; and the United States, Australia, Japan, South Korea and Qatar for 2022. The assumption in recent years was that England — the mother ship of soccer — was due to host the World Cup for the ﬁrst time
• TURN TO WOODS, 7B
Mourinho banned by UEFA NYON, Switzerland — (AP) — Real Madrid coach Jose Mourinho has been banned for one Champions League match for instructing players to get deliberate red cards so they could serve suspensions in a meaningless game. Mourinho also was ﬁned ¤40,000 ($51,990) Tuesday by the Union of European Football Associations for instructing Xabi Alonso and Sergio Ramos to get ejected against Ajax last week. Alonso and Ramos were ﬁned ¤20,000. They already were suspended from Real’s ﬁnal ﬁrstround match, against Auxerre on Dec. 8, but are free to play in the second round. Madrid has clinched ﬁrst
place in Group G. Mourinho also was given a further onematch suspension to be imposed if he is found guilty within the next three years of what UEFA calls “improper conduct.”
• TURN TO FIFA, 7B
For Jeter, 3,000-hit milestone is tailor-made for pinstripes BY BEN SHPIGEL New York Times Service
JETER JULIE JACOBSON/AP
All of the contentiousness surrounding Derek Jeter’s contract negotiations with the Yankees has now inspired a card-collecting blog to depict him in the uniforms of the other 29 major league teams. Wonder no more how Jeter would look with a Braves tomahawk on his chest, or a Chief Wahoo adorning his cap, or in the red pinstripes of the Phillies. Such outcomes seem unthink-
able for a player who has had only one address in his career: the Bronx. And they become doubly unrealistic when a simple fact enters the discussion: Jeter, after 15 full seasons in the major leagues, is 74 hits short of 3,000 for his career. When he reaches that milestone, probably in early June, maybe with a signature ﬂare into right ﬁeld, he will become the ﬁrst player to do so as a Yankee despite the team’s long championship tradition. The achievement will under-
score that consistency is his hallmark, that what Babe Ruth is to home runs and Lou Gehrig is to runs batted in, Jeter is to hits. In the last two seasons, Jeter ﬁrst passed Gehrig for career hits as a Yankee and then Ruth for total hits in a career. Now he is on the verge of a historic accomplishment for the third straight season, and if he can do it at home it will be the ﬁrst time that • TURN TO JETER, 7B
12/2/2010 4:18:37 AM
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