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WEDNESDAY, MARCH 9, 2011 108TH YEAR I ©2011 THE MIAMI HERALD
SLIMMING: Dr. Lionel Bissoon consults with an hCG patient in his office in New York. The hCG weight loss diet, a pregnancy hormone, involves taking the hormone injections daily, while eating 500 calories a day.
U.S. role in Libya grows complex BY DAVID E. SANGER AND THOM SHANKER
New York Times Service
WEIGHT-LOSS NIRVANA? SOME CLAIM HORMONE HELPS MAINTAIN NEAR-STARVATION DIET WITHOUT FEELING HUNGRY BY ANEMONA HARTOCOLLIS New York Times Service
Every morning, Kay Brown engages in a ritual similar to a heroin addict’s, or a diabetic’s: She sticks herself with a syringe. Only hers contains hCG, a pregnancy hormone. Brown, 35, is not taking hCG to help her bear a child. She believes that by combining the hormone injections with a 500-calorie-a-day diet, she will achieve a kind of weight-loss nirvana: losing fat in all the right places without feeling tired or hungry. “I had a friend who did it before her wedding,” Brown said. “She looks great.” Women like Brown are streaming into doctors’ ofﬁces and weight-loss clinics all over
the United States, paying upward of $1,000 a month for a consultation, a supply of the hormone and the syringes needed to deliver it. More than 50 years after a doctor at a Roman clinic began promoting hCG as a dieting aid, it is as popular as ever, even though there is scant evidence that it makes any difference. The regimen combines daily injections with a near-starvation diet, and patients, mostly women, are often enticed by promises that they can lose about a pound a day without feeling hungry. Perhaps even more seductively, they are frequently told the hCG will prompt their bodies to carry away and metabolize fat that has been stored where they least want it — upper arms, bellies and thighs.
Priests accused of abuse live unmonitored in U.S. BY GILLIAN FLACCUS Associated Press
LOS ANGELES — The charges of child molestation came too long after the abuse to send Carl Sutphin, a Roman Catholic priest, to prison. Now he is spending his days in a doublewide mobile home, a short walk from day care centers and two elementary schools. “I won’t say I deny it. I do not deny it, no,” Sutphin, 78, said in a frail voice as he leaned on his walker. There are dozens of accused priests like him, from California to Maryland. To victims’ advocates, that is dangerous. They say church ofﬁcials should monitor them in the same way that police track sex offenders and that the church should create special housing to keep predator priests away from children. “Essentially, you have admitted or credibly accused child molesters walking free among unsuspecting families — and bishops are doing little or nothing,” said David Clohessy, national director for Survivors of those Abused by Priests. Advocates’ calls raise questions
TALKS TO RESOLVE IMPASSE IN WISCONSIN FLOUNDER, 3A
FREE: Retired priest Stephen Hernandez, seen at his home in California, pleaded no contest in 2004 to sexual abuse charges and was sentenced to probation. about how far the church can go in monitoring people who have never been convicted, or even charged with a crime. • TURN TO PRIESTS, 2A
18 KILLED IN GUNBATTLES IN NORTHEASTERN MEXICO, 4A
PHOTOS BY ROBERT CAPLIN/NEW YORK TIMES SERVICE
In response to inquiries stirred up by the diet’s popularity, the Food and Drug Administration warned in January that “homeopathic” forms of hCG, like lozenges and sprays, sold over the Internet and in some health food stores, are fraudulent and illegal if they claim weight-loss powers. The injectable, prescription form of hCG, human chorionic gonadotropin, is approved as a treatment for infertility and other uses, and it is legal for doctors to prescribe it “off-label” for weight loss. But the FDA has also reiterated a warning, ﬁrst issued in the mid-1970s, that is required on hCG packaging: It has not been shown to increase weight loss,
to cause a more “attractive” distribution of fat or to “decrease hunger and discomfort” from low-calorie diets. Brown’s physician, Lionel Bissoon, a well-known society doctor with an ofﬁce off Central Park West, charges $1,150 for his hCG program, which covers an examination, injection training, a month’s supply of the hormone and syringes, and blood work to monitor for possible trouble. “From an anecdotal point of view,” Bissoon said, “physicians all around the country have seen people losing a tremendous amount of weight with this stuff, and you cannot afford to ignore that.”
WASHINGTON — Nearly three weeks after Libya erupted in what may now turn into a protracted civil war, the politics of military intervention to speed the ouster of Col. Moammar Gadhaﬁ grow more complicated by the day — for both the White House and Republicans. U.S. President Barack Obama is attempting to raise the pressure on Gadhaﬁ further by talking about “a range of potential options, including potential military options” against the embattled Libyan leader. Despite another Obama statement on Monday, interviews with military ofﬁcials and other administration ofﬁcials describe a number of risks, some tactical and others political, to U.S. intervention in Libya. On Tuesday, forces loyal to Gadhaﬁ seemed to be gathering momentum as they renewed their onslaught on both the eastern and western fronts, threatening the western city of Zawiyah and conducting airstrikes in the east after taunting rebels with ﬂyovers and bombing runs near an oil reﬁnery in the coastal city of Ras Lanuf. Of most concern to the president himself, one high-level aide said, is the perception that the United States would once again be meddling in the Middle East, where it has overturned many a leader, including Saddam Hussein. Some critics of the United States in the region — as well as some leaders — have already claimed a Western conspiracy is stoking the revolutions that have overtaken the Middle East. “He keeps reminding us that the best revolutions are completely organic,” the senior ofﬁcial said, quoting the president. At the same time, there are a range of persistent voices — in Congress and even inside the administration — arguing that Obama is moving too slowly. • TURN TO LIBYA, 2A n London explains botched Libya venture, 6A
• TURN TO HORMONE, 2A
A rare bipartisan call on budget BY JACKIE CALMES
New York Times Service
RICHMOND, Va. — While the Obama administration and congressional Republicans ﬁght in Washington over cutting a small slice of the federal budget, deﬁcit hawks from both parties have taken to the road to persuade the public that the only way to really ﬁx the U.S. federal ﬁnances is to shrink the growth of popular entitlement programs and to raise revenues. Two U.S. senators — Mark Warner, D-Va., and Saxby Chambliss, R-Ga.— held an unusual bipartisan forum here on Monday before an overﬂow crowd of more than 200 Virginia business leaders. They will hold a similar event next month in Atlanta. While the senators made their pitch for a far-reaching debt-reduction plan requiring some sacriﬁce from eceryone, including businesses, the co-chairmen of U.S. President Barack Obama’s bipartisan ﬁscal commission — Alan Simpson, a former Senate Republican leader from Wyoming, and Erskine Bowles, a chief of staff to former U.S. President Bill Clinton — were speaking in New York, stepping up their campaign to keep alive the recommendations of the commis-
RUSSIA GAINS FROM FEARS OVER MIDEAST OIL, BUSINESS FRONT
CASEY TEMPLETON/NEW YORK TIMES SERVICE
UNITY: Sens. Saxby Chambliss, left, and Mark Warner hold a bipartisan townhall meeting in Richmond, Va., on Monday. sion’s majority to cut the debt by $4 trillion through 2020. To that end, on Tuesday Bowles and Simpson were to be on Capitol Hill to announce a nonproﬁt organization, the Moment of Truth Project, which will seek to educate the public and lawmakers about the scale of tax and spending changes needed. While the White House is aware of their efforts, ofﬁcials say
the administration has neither discouraged nor encouraged them. Warner and Chambliss will continue working privately with four other senators — two from each party, all former members of the Bowles-Simpson commission — to write legislation based on the panel’s recommendations. • TURN TO BUDGET, 2A
MESSI LEADS BARCELONA INTO QUARTERFINALS, SPORTS FRONT
INDEX U.S. NEWS.....................5A WORLD NEWS ...........6A OPINION........................7A COMICS & PUZZLES...6B
3/9/2011 5:35:25 AM
WEDNESDAY, MARCH 9, 2011
FROM THE FRONT PAGE
THE MIAMI HERALD
U.S. role in Libya grows more complex • LIBYA, FROM 1A
They contend that there is too much concern about perceptions, and that the White House is too squeamish because of Iraq. Furthermore, they say a military caught up in two difﬁcult wars has exaggerated the risks of imposing a no-ﬂy zone over Libya, the tactic discussed most often. The U.S. military is also privately skeptical of humanitarian gestures that put the lives of troops at risk for the cause of the moment, while being of only tenuous national interest. Some of these critics seem motivated by political advantage. Others, including the chairman of the Senate Foreign Relations Committee, John Kerry, warn of repeating mistakes made in Iraq Kurdistan, Rwanda, and Bosnia and Herzegovina by failing to step in and halt a slaughter. The most vocal camp, led by Sens. John McCain and Joseph Lieberman, says the central justiﬁcation for establishing a no-ﬂy zone over Libya is
that rebel leaders are seeking military assistance to end decades of dictatorship. But even the critics acknowledge the best outcome would be for the United States to join other nations or international organizations, in particular NATO, the Arab League or the African Union. Lieberman and others argue that the risks of waiting may be far greater than the risk of an early, decisive military intervention. He acknowledged that as in Iraq, the United States might unleash an uncertain future of tribal rivalry and chaos, in a country that has no institutions prepared to ﬁll the vacuum if Gadhaﬁ is driven from power. Yet, he argued: “It’s hard to imagine any new government growing out of this opposition that is worse than Gadhaﬁ.” Administration ofﬁcials make the case that the focus on no-ﬂy zones is overdone. “No-ﬂy zones are more effective against ﬁghters, but they really have limited effect against helicopters or the kinds of ground operations
ON GUARD: A rebel holds an anti-aircraft missile as he watches for pro-Gadhafi planes in the oil town of Ras Lanouf, Libya, on Sunday. we’ve seen” in Libya, Ivo Daalder, the U.S. ambassador to NATO, said Monday. It is possible that the mere talk of no-ﬂy zones had some effect. Pentagon and military
ofﬁcials conﬁrmed that sorties by aircraft loyal to Gadhaﬁ had dropped by half over the past three days. There was no explanation for the change; it could have to do
with maintenance, or a decision to ﬂy helicopters, which are less provocative and harder to track. The biggest voice of caution has been Defense Secre-
tary Robert Gates, who laid out last week the strongest case against intervention — a case that some in the White House say privately may have been overstated to make a point about how military actions that look easy can quickly become complicated. Gates forcefully warned that the ﬁrst act in imposing a no-ﬂy zone would be an attack on Gadhaﬁ’s air defenses, and that the step should only be taken if the United States was ready for a prolonged military operation that could cover all of Libya. He cautioned it might drain resources that are already overstretched in Afghanistan and Iraq, because Libya is such a large territory. Gates is also concerned, Pentagon ofﬁcials say, about the political fallout of attacking yet another Muslim country. He is cognizant of the No. 1 lesson of Iraq: that once the United States plays a major role in the ouster of a leader, it bears responsibility for whatever emerges in its place.
Accused priests live unmonitored Does hormone aid weight loss?
• PRIESTS, FROM 1A
Plaintiffs’ attorneys in Los Angeles worked with private investigators since October to compile a list of the priests’ addresses, the most comprehensive accounting of the whereabouts of more than 200 clergy accused of abuse in civil lawsuits in that archdiocese. They hope to use it Thursday to persuade a judge to recommend the release of all church ﬁles for every priest or religious brother ever accused of sexual abuse in the sweeping litigation. Those conﬁdential ﬁles are at the center of a heated dispute that has raged between the church and plaintiffs’ lawyers since the United States' largest archdiocese reached a record-breaking $660 million settlement nearly four years ago. Plaintiffs want the ﬁles — which could include internal correspondence, previous complaints and therapy records — released, saying it’s a matter of public safety. The church is pushing for a limited release of information. The list of addresses, obtained by The Associated Press, contains nearly 50 former priests and religious brothers from the Los Angeles Archdiocese who live in California, unsupervised by law enforcement or the church.
Another 15 are scattered from Montana to New York, while 80 more cannot be located despite an exhaustive search by attorneys representing those who have sued them for abuse. The vast majority of the men have not been convicted — in some cases because the charges came too late — and are therefore not required to register with state sex offender databases. It’s a situation that has long bothered alleged victims of sex abuse, who have called on the church to do more to monitor former priests even after they have been expelled from ministry or have been laicized. In Los Angeles, the archdiocese listed 211 names of credibly accused priests — a term the church uses to describe allegations that it believes are likely to be true — or those who had been named in civil lawsuits in a 2004 report to parishioners about clergy abuse. The list did not include the priests’ past assignments or current whereabouts. Twenty-three other dioceses nationwide have published similar lists, but don’t list current addresses, Clohessy said. Like Los Angeles, victim advocates in Boston have complained that the archdiocese there has not done
enough to inform the public about priests who were accused of abuse but never charged criminally. In January, Mitchell Garabedian, a lawyer for Bostonarea clergy sex abuse victims, released a list of accused abusers, including previously undisclosed names of 19 Catholic priests, brothers and one deacon. They were among those accused in hundreds of cases his ﬁrm settled with the church over the last 15 years, Garabedian said. At the time, the archdiocese was working to disclose more information, but was concerned about giving priests whose guilt had not been established their due process, said Kelly Lynch, a spokeswoman for the Boston archdiocese. Alleged victims, including those in Clohessy’s organization, have nevertheless pressed the church to create special, church-controlled housing for credibly accused priests so they can be monitored — even without convictions. “Bishops want to do the absolute bare minimum with predator priests, so they suspend them on the advice of defense lawyers and insurance companies and that’s it, the priests are free to live and sometimes work and sometimes volunteer wherever they want,” Clohessy said.
Church ofﬁcials say it’s not fair to expect them to monitor the priests, especially those who are no longer in active ministry. The archdiocese policy has been to remove any credibly accused priest, said Michael Hennigan, archdiocese attorney. Most of those men have been laicized, are in the process of being laicized or have been removed from public ministry, he said. Laicization is the Vatican process for ousting a man from the priesthood. Local bishops can also bar an abusive cleric from public ministry, which means he technically remains a priest but cannot participate in any public church work, such as celebrating Mass in public. The archdiocese has no more responsibility for a laicized priest than a school district would have for tracking a teacher who was ﬁred with cause, Hennigan said. He dismissed the idea of church-run housing for accused priests and religious brothers as impractical and unenforceable. “We obviously don’t have a police force and our mission has been to cleanse the priesthood, and we think we’ve done that effectively and well,” he said Monday. “You think we should have a police force or a prison system?
• HORMONE, FROM 1A
Another New York doctor, Scott Blyer, offers the hCG diet as an adjunct to his cosmetic surgery practice, working with Jacqueline Fulop-Goodling, an orthodontist. Fulop-Goodling does not prescribe hCG, but she counsels patients. They charge $800 for a 40-day course of therapy, half-price for repeat rounds; they also require an EKG to make sure the patient has no heart trouble. One of Blyer’s patients, a 30-year-old business consultant named May, who asked that her last name not be used, described herself as an “emotional eater”. She is 5-foot-3 and 130 pounds, but said she hoped to shed 20 pounds in time to be a bridesmaid at an April wedding. “So I have just six weeks,” she said. Blyer reassured her that she would lose weight in her stomach. The hCG, Blyer said, “tricks your body into a state of pregnancy; it burns off fat so the fetus can get enough calories, but it protects muscle.” May eventually decided not go through with the diet.
Blyer’s explanation of how the hCG diet works resembles a theory ﬁrst popularized in the 1950s by A.T.W. Simeons, a doctor in Rome who said he had used it on more than 500 patients, and published a paper about it in The Lancet, the British medical journal, in 1954. In 1995, a Dutch study in The British Journal of Clinical Pharmacology tried to resolve the question of whether the hCG diet really worked by analyzing 14 randomized clinical trials of the diet. Only two, including one co-authored by an advocate of the diet, found that people on hCG lost more weight, felt less hunger and had an improved body shape, compared with people on the same diet who received a placebo, like saline injections. But several studies concluded that the ritual of the daily injection and the instant gratiﬁcation of quick weight loss helped motivate people to stay on the diet. However arcane the theory, some doctors say it is theoretically plausible that hCG would create a more toned body, because it can induce production of male hormones and increase muscle mass.
Senators propose a bipartisan budget • BUDGET, FROM 1A
Such efforts face a hard slog not only on Capitol Hill, but among the public. Polls consistently show that U.S. citizens want the White House and Congress to rein in long-term federal debt. Yet by large majorities they oppose many speciﬁc proposals to reduce future costs of Medicare and Medicaid and to ensure Social Security’s long-term solvency. Warner and Chambliss acknowledged the hurdles but insisted that U.S. citizens were ahead of their elected ofﬁcials in being ready to take the necessary steps. And they criticized the positions of many in their own parties. While Republicans are adamantly anti-tax, Chambliss said, “We’ve got to close the revenue gap.” Warner said Democrats in Congress would have to be willing to further restrain Medicare and Medicaid and to reduce projected Social Security beneﬁts for future generations, perhaps by raising the retirement age over a period of decades. Both criticized the negotiations between the Obama administration and Congress for cutting only from the discretionary domestic spending that makes up 12 percent of the federal budget. Republicans have proposed $61 bil-
lion in cuts for the balance of the ﬁscal year, slashing education, law enforcement, energy programs and more. The White House and Democrats have countered with a plan to cut $10.5 billion. “If we cut all of that” part of the budget, “we still couldn’t solve the problem”, Chambliss said. Reducing entitlement programs, which make up over 40 percent of the budget, would not be enough, he added, “and you can’t raise taxes enough to get us out of this problem. So obviously you have to have all three of those issues up for dialogue.” Warner and Chambliss propose overhauling the tax code to eliminate some of the more than $1 trillion in annual tax breaks for individuals and businesses, and to use the revenues both to lower tax rates and to reduce deﬁcits. Yet underscoring the political difﬁculty, the senators declined to say when or if their group might agree to compromise legislation. “We won’t be able to” agree on everything, Chambliss said. The goal, he added, is to agree on concepts for tax and spending changes that leave the details to the congressional committees. Beyond the six members, he said, 25 other senators are potential allies.
3/9/2011 5:27:19 AM
THE MIAMI HERALD
WEDNESDAY, MARCH 9, 2011
Little progress in Wisconsin talks BY MONICA DAVEY
New York Times Service
APPREHENSIVE: John Rodriguez and his wife Nicola, aboard their yacht in the Strait of Gibraltar.
Yachts avoiding pirate waters after string of hijacks BY KATHARINE HOURELD Associated Press
NAIROBI, Kenya â€” The ďŹ rst time John Rodriguez tried to sail around the world a hurricane sunk his boat. His second attempt failed because of a scourge bedeviling mariners in the Indian Ocean, the Arabian Sea and the Gulf of Aden: pirates. Rodriguez is among thousands of sailors who once steered their yachts across the warm Indian Ocean without a second thought, but are now rerouting, hiring replacement crews, packing their boats aboard cargo ships and contracting armed guards, or canceling their dream voyages altogether. With Somali pirates seizing vessels and killing hostages in an area as vast as the continental United States, boatyards, restaurants and other establishments among the yachtersâ€™ routes have seen business fall, with some of their customer base scared off. Rodriguez, a 44-year-old Briton, sailed from his homeland to Florida with his wife and two children. But the family didnâ€™t push on through the Panama Canal. They knew their around-the-world route would eventually take them past waters infested by Somali pirates, who in 2009 kidnapped a British yachting couple, the Chandlers, near the Seychelles and held them for 388 days under often brutal conditions. â€œWe bought our charts the day before the Chandlers got taken,â€? Rodriguez said. â€œThree months of angst followed while we tried to decide what to do â€” itâ€™s an enormous effort to do a trip like that and you donâ€™t get the opportunity very often.â€? Somali pirates killed four U.S. yachters last month and kidnapped a Danish family aboard their 43-foot sailboat last week. A South African couple taken off their sailboat in October are still being held. IMPACT OF LATEST ATTACKS The European Union Naval Force has done its best to warn yachters of the danger, said spokesman Wing Cmdr. Paddy Oâ€™Kennedy. But from their blog posts, it appeared the Danes felt safe enough because of the presence of warships on antipiracy patrol in the area. â€œThe latest attacks have certainly changed the game completely,â€? said Paul Gelder, the editor of Yachting Monthly. In posts on the magazineâ€™s website forum Scuttlebutt, worried sailors discuss canceled or rerouted plans and trade frightening stories of witnessing attacks. Yachts trying to sail from Asia to Europe through the Suez Canal face tough choices. They canâ€™t sail in the other direction because the winds arenâ€™t right. Bigger yachts can go around the southern tip of Africa, but the Cape of Good Hope is notorious for storms and shipwrecks. For those who live aboard their boats and want to get home, few choices remain: shell out big money to ship home their yacht or hire guards â€” or run the Somali gauntlet. Over the past six months, Peters & May, a company that specializes in shipping boats and yachts, has seen a roughly 300 percent increase in inquiries from captains interested in shipping their vessels rather than risking going through pirate-infested waters, said managing director Angus Bruce Jones. PRIVATE SECURITY Another option is to use a company like Naval Guards, a private security outďŹ t based in Britain whose guards escort vessels on speedboats. They sent the ďŹ rst of their three boats to the region in September, and are now working at full capacity, said chief of operations Thomas Jakobsson. On Wednesday, six Naval Guards employees fought off six pirates who had attacked and boarded the Capricorn, a yacht crewed by a Dutch couple, Jakobsson said. But some yacht owners canâ€™t or wonâ€™t pay for expensive shipping or guards. Instead, they might hire a crew to take the risk for them, said Mat Sandys-Winsch of Direct Yacht Deliveries. His company used to sail three or four yachts a year through the Indian Ocean to deliver to owners who would meet them in the Mediterranean. But since Christmas, the company has suspended sailing between India and the Suez Canal because of pirates. â€œThe attacks had spread north to the Omani coast. They had basically blocked off the route we were taking,â€? he said, adding that many in the yachting community donâ€™t take pirates seriously enough. â€œThe feeling is that it is a big wide ocean and no one can touch you,â€? Sandys-Winsch said. â€œThatâ€™s not true.â€? Rene Tiemessem, who is organizing a rally from Thailand to Turkey, said the people on his convoy through the Indian Ocean live on their yachts and donâ€™t have the spare cash for guards or shipping. Heâ€™s asked for an escort from the international warships ďŹ ghting piracy off East Africa. But the only vessels who get those are the ones delivering food aid to war-ravaged Somalia, whose lawless shores are dotted with pirate camps. Navies say they are too thinly stretched already to start escorting everyone. â€œThereâ€™s no alternative for usâ€? than to sail this route, he said. â€œPeople feel abandoned.â€? With many yachtsmen abandoning the region altogether, industries dependent on the routes are being devastated.
CHICAGO â€” More than two weeks after Wisconsin lawmakers split over a bill that would vastly curtail collective bargaining for public workers, even negotiations over the negotiations have become matters of division, fury and dueling public critiques. Scott Fitzgerald, the Republican leader in Wisconsinâ€™s Senate, described the progress of talks with 14 Senate Democrats who left the state last month to block a vote on the bill as â€œnegotiating with Jell-Oâ€?. And in a letter about the talks to his Democratic counterpart, Fitzgerald questioned his colleagueâ€™s â€œgrasp of realityâ€?. Chris Larson, one of the Senate Democrats, accused Fitzgerald and Gov. Scott Walker, the Republican who proposed the measure, of misleading the public, trying to shift blame to the Democrats, and of â€œthrowing people who were negotiating in earnest under the busâ€?. And it was only Monday. While those on both sides of Wisconsinâ€™s partisan split over collective-bargaining rights say they have in recent days engaged in private
discussions over the matter, little progress toward compromise has emerged. If anything, the Republicans and Democrats in Wisconsin appeared further apart than ever over a matter that has eclipsed all other work in the state Capitol and become the most visible in a series of such battles in statehouses around the country. That said, at least two Democrats said that an end to the standoff in Wisconsin may be drawing near, even if it means returning to the state and allowing a vote to take place on an unchanged and, in their view, unacceptable measure to cut collective bargaining rights â€” a measure that is expected to pass in the Republicandominated State Senate once a quorum is met. â€œYou reach a point where you say, â€˜If our goal was to enlighten the public, weâ€™ve done it,â€™ â€? Bob Jauch, one of the missing Democrats who took part in negotiations as recently as Sunday, said Monday evening. â€œThereâ€™s a time â€” and the time seems to be drawing near â€” where our usefulness is wearing thin.â€? Timothy Cullen, another of the Senate Democrats,
said, â€œThis is a movement thatâ€™s bigger than us so itâ€™s time to go home and debate and make the case on other issues.â€? Other Senate Democrats said Monday that they were still determined that the collective bargaining cuts in Walkerâ€™s plan be rewritten. A spokesman for Mark Miller, the Senate Democratic leader, said no ďŹ nal decision had been made about how soon to return to Wisconsin. â€œThey meet every day,â€? the spokesman, Mike Browne, said, â€œand they discuss how to get back.â€? Most of Indianaâ€™s House Democrats remained at a motel in Illinois on Monday, having also left their state last month to prevent a quorum on legislation related to collective bargaining rights and education. In Wisconsin, where Novemberâ€™s election brought one of the most signiďŹ cant ďŹ‚ips from Democrats to Republicans, a week of negotiations clearly had fallen apart by Monday, and blame was being spread everywhere. The opposing sides traded pointed letters, which they also shared with the news media. They traded conďŹ‚icting versions of who
had tried to talk to whom about what. By midday Monday, Walker, who has been governor since January, described an early morning request from Miller, the leader of the Senate Democrats, for a resumption of discussions somewhere near the Wisconsin-Illinois border as â€œridiculous.â€? In a news conference where he was ďŹ‚anked by Scott Fitzgerald and Jeff Fitzgerald, the Republican speaker of the state Assembly (and the brother of Scott Fitzgerald), Walker described to reporters his view of negotiations in recent days. After talks last Wednesday with several Democrats at a McDonaldâ€™s in Kenosha, not far from the Illinois border, Walkerâ€™s aides had been buoyed by the possibility of a substantive deal, Walker said, only to have Miller â€œďŹ rmly standing in the way.â€? The Republicans said the Democrats were divided over the negotiations, and that leadership was murky at best. The Democrats, meanwhile, said Walker had shown little real interest in shifting from his position that curtailing collective bargaining was needed to solve the stateâ€™s budget woes.
Sen. Ensign wonâ€™t seek reelection BY CARL HULSE
New York Times Service
WASHINGTON â€” Sen. John Ensign, the two-term Nevada Republican caught up in a sex and ethics inquiry, has announced that he would not seek reelection in 2012 to avoid what he predicted would be an â€œexceptionally uglyâ€? campaign. â€œAs I have learned through the mistake that I made, there are consequences to sin,â€? Ensign, 52, said at a news conference in Las Vegas on Monday as his wife, Darlene, stood at his side. Once considered a future presidential contender, Ensign has seen his political fortunes plummet since he admitted in 2009 to an affair with a former campaign staffer who was also the wife of a top aide. A Senate Ethics Committee investigation, still under way, began after disclosures that Ensignâ€™s parents paid $96,000 to the aide, Douglas Hampton, who also said the senator had helped him line up lobbying clients after Hampton left his Senate job. Ensign, who had previously insisted that he intended to run again, is the eighth senator and third Republican to announce that he will not be on the ballot in 2012, a reďŹ‚ection of the turbulent political atmosphere and frustration some lawmakers feel about the inability to ďŹ nd consensus in a highly partisan Congress. More retirements are likely, freeing some senators from typical political consid-
WIN McNAMEE/GETTY IMAGES
UNDER SCANNER: Sen. John Ensign has seen his political fortunes plummet since he admitted in 2009 to an affair with a former campaign staffer. erations as they face tough decisions about federal spending and the deďŹ cit. Ensignâ€™s decision opens the door to another high proďŹ le Senate race in Nevada, where Sen. Harry Reid, a Democrat who is the majority leader, was able to hold off a strong challenge last November. Republicans were relieved by Ensignâ€™s decision, viewing him as badly damaged politically by the disclosures about the affair. Among Republican contenders, Rep. Dean Heller had been readying a campaign even if Ensign ran
again and is considered the current front-runner. Sharron Angle, who lost to Reid last year, has also been mentioned as a potential candidate for the Ensign seat, though she could also seek Hellerâ€™s House seat. Among Democrats, Rep. Shelley Berkley is a likely contender and other names were being ďŹ‚oated Monday. Federal prosecutors announced last December that they would not pursue criminal charges against Ensign, a move that surprised some congressional watchdogs who said the senatorâ€™s work to line up lobbying contracts
for Hampton might have violated federal law covering contacts between lawmakers and former staffers. But the Senate ethics investigation of Ensign is expected to continue as long as he remains in the Senate. One Senate ofďŹ cial said Monday that the committee was moving as quickly as it could to resolve the matter. Last month, the committee announced that it had appointed a special counsel to help with its investigation, an indication that it was serious in pursuing the matter and might be preparing to ďŹ le formal charges.
Ahmadinejad opponent loses powerful role BY ALI AKBAR DAREINI Associated Press
TEHRAN, Iran â€” Former President Akbar Hashemi Rafsanjani lost his position on Tuesday as the head of a powerful clerical body charged with choosing or dismissing Iranâ€™s supreme leader. Rafsanjani is a bitter enemy of hard-line President Mahmoud Ahmadinejad, and tacitly supported his rival, Mir Hossein Mousavi, in Iranâ€™s bitter dispute over the 2009 presidential elections. Hardliners and supporters of Ahmadinejad had lobbied hard in recent weeks to push Rafsanjani out of the post and supported Ayatollah Mohammad Reza Mahdavi Kani to replace him as the head of the Assembly of Experts. Kani is a moderate conservative not seen as a supporter of the opposition. The Experts Assembly monitors the all-powerful
supreme leader and picks a successor after his death. That makes it potentially one of the most powerful institutions in Iran. Rafsanjani told the assembly that he wouldnâ€™t seek reelection to â€œavoid RAFSANJANI divisionâ€? if Kani ran for the post, and Kani got 63 votes as the sole candidate for the post. Rafsanjani, who had chaired the assembly since 2007, will remain a member of the 86-member assembly. The 77-year-old Rafsanjani â€” who served as president from 1989-97 â€” still heads the powerful Expediency Council â€” a body arbitrating between legislators and the Guardian Council, the hardline constitutional watchdog
that approves candidates for parliament, president and the Assembly. The Assemblyâ€™s real clout kicks in after the supreme leader is gone â€” a sort of Iranian version of the Vaticanâ€™s College of Cardinals when they gather to pick a new pope. The assembly has done that only once since the 1979 Islamic Revolution. In 1989, it picked Ayatollah Ali Khamenei to succeed his late mentor, the Islamic Revolution patriarch Ayatollah Ruhollah Khomeini. Rafsanjani has long been an elusive inside player in Iranâ€™s clerical leadership. He has supported a policy of improving relations with the West including the United States and has tried to play a bridging role between hardline extremists and themarginalised reformist opposition. But Rafsanjani has been losing power gradually over
the years step by step. His son, Mohsen, resigned as the head of Tehran subway system after 17 years in ofďŹ ce on Friday, citing lack of support from the government. Mohsen Hashemi said Ahmadinejadâ€™s government had ulterior political motives in withholding a $2 billion budget for the subway system that was approved by parliament.
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3/9/2011 1:34:35 AM
WEDNESDAY, MARCH 9, 2011
BY RICARDO GONZALEZ Associated Press
Members of Salgueiro samba school parade on a float during carnival celebrations at the Sambadrome in Rio de Janeiro on Tuesday.
Absent police chief fired in Mexico New York Times Service
MEXICO CITY — An experiment in law enforcement in a drug-ravaged border town ended with the ﬁring of a 20-year-old police chief after she failed to turn up for work. The police chief, Marisol Valles Garcia, a criminology college student, had been hired in October after nobody else would take the job. She did not carry a gun or wear a uniform, and made it clear that she would leave major crimes to higher authorities. Last week, she had asked
for a three-day leave to care for her baby son, and there was speculation that she had been threatened. But when she did not show up for work Monday, the mayor of Praxedis G. Guerrero, near Ciudad Juarez, ﬁred her. Nobody knows for certain where she is, or whether there were threats against her. Andres Morales Arreola, the municipal secretary, said she appeared to have left town with her family. Gustavo de la Rosa Hickerson, the local ombudsman for the Chihuahua state Human Rights Commission, said a witness saw her safely
cross a bridge into El Paso last week. But noting the threats law enforcement ofﬁcials face — a previous police chief had been beheaded — he criticized the mayor for “an act of abandonment.” Town ofﬁcials, however, were not alarmed. “We’re conﬁdent that she is safe in some place,” Morales said. “If there were some kind of situation, we would have known about it. That kind of news just ﬂies.” In its statement, the mayor’s ofﬁce said it “wished her the best in any future projects she may take on.”
Friend of bomb victim testifies in Posada’s trial BY JUAN CARLOS LLORCA Associated Press
EL PASO — The friend of the Italian tourist killed in the 1997 bombing of the Copacabana Hotel in Havana, Cuba, gave a harrowing account of the explosion and the death of his friend during the U.S. trial of a former CIA operative accused of immigration fraud, perjury and the obstruction of justice in a terror investigation. With the help of an interpreter, Enrico Gollo, 45, told the jury Monday how he and his then wife were having a drink in the lobby bar of the Copacabana with his friend Fabio di Celmo when the bomb went off. Cuba-born Luis Posada Carriles, 83, is accused of lying to immigration ofﬁcials during citizenship hearings in El Paso about how he sneaked into the United States in March 2005, and of failing to acknowledge plan-
ning the bombings of Cuban hotels and a top Havana tourist restaurant in 1997. Tuesday’s testimony was also expected to focus on the Havana bombings. Gollo recounted in detail the moments that followed the blast. “The ﬁrst thing I can remember was a big noise, I didn’t immediately understand what was happening. My ears were ringing, there was lots of smoke,” said Gollo recalling the Sept. 4, 1997, attack. A bomb, placed inside a metal ashtray in the lobby bar sent shrapnel ﬂying through the air, slicing di Celmo’s jugular. “He was all covered in blood, near him a big lake of blood, there was a lot of blood coming out of him,” Gollo added. Di Celmo was then taken in a private car to a nearby clinic where he was pronounced dead upon arriving, Gollo said. Twelve
other people, including Gollo’s wife, were injured that day. Both Italians met as teenagers in the town of Pegli, Genoa — where Gollo is from — and had a 17-yearlong friendship that ended with di Celmos’s death. Posada told The New York Times in 1998 that he was behind the bombings, which he said were meant to cripple the Cuban tourism industry. He has since recanted those comments. The Cuban militant spent decades traversing Latin America, often backed by Washington, working to destabilize communist governments. He is Public Enemy No. 1 in Cuba, considered former President Fidel Castro’s personal nemesis, and his attorneys say the Cuban government is bent on seeing Posada dead or incarcerated.
LATIN BRIEFS • COLOMBIA
23 oil workers kidnapped From Miami Herald Wire Services
Assailants have kidnapped at least 23 local oil contractors working for Canada’s Talisman Energy in a remote part of Colombia’s southeastern jungle, ofﬁcials said. The Colombian workers were abducted from an oil camp in the municipality of Cumaribo, about 300 miles east of the capital, Bogota, Vichada state Gov. Juan Carlos Avila said. The area is accessible only by helicopter. “Three unknown subjects entered the camp and forced the 23 people there to go with them, to an unknown destination,” Avila said by telephone. He said the abductors could have been Revolutionary Armed Forces of Colombia guerrillas, who are present in the area. A brief statement released by Colombia’s army said that “it appeared” the FARC was
THE MIAMI HERALD
18 killed in gunbattles in northeastern Mexico
RIO CARNIVAL 2011
BY ELISABETH MALKIN
behind the kidnapping, adding that troops had deployed to the area to search for the oil workers. Talisman acquired a 49 percent stake in the British Petroleum concession in Colombia last year, with Colombian state oil company Ecopetrol holding the remaining 51 percent. Neither Talisman nor Ecopetrol immediately commented on the situation. • DOMINICAN REPUBLIC OPPOSITION NOMINATES CANDIDATE The Dominican Republic’s main opposition party says it has nominated former President Hipolito Mejia as its presidential candidate for 2012. The Dominican Revolutionary Party says that Mejia won 53 percent of delegates’ votes at a weekend convention, clinching the nomination. The results are being challenged by a second would-be candidate, construction magnate and former Public Works Minister Miguel Vargas Maldonado, who received nearly 47 percent of the votes. He alleges that voters belonging to President Leonel Fernandez’s ruling party inﬂuenced the contest.
CULIACAN, Mexico — Gunbattles between rival gangs killed 18 people in a northeastern Mexican town, a day after seven police ofﬁcers and an inmate died in an ambush of a convoy transporting prisoners in western Mexico. The ﬁghting in the town of Abasolo erupted Monday morning and left at least 18 people dead, the Tamaulipas state government said in a three-sentence statement that offered no details. It said state and federal security forces had arrived in the town to restore order and investigate. The incident came a month after shootings in the nearby town of Padilla also killed 18 people, several of them innocent bystanders. Tamaulipas has been wracked by a turf war be-
tween the Zetas and Gulf cartels, and information on violence in some of the smaller towns is notoriously scarce. Often ofﬁcial conﬁrmation does not come for hours or days, leaving residents to cower in their homes and communicate through social media. Tamaulipas residents sent Twitter messages about Monday’s shootings hours before the government conﬁrmed the bloodshed. Some tweets warned people to stay indoors and others demanded ofﬁcial information. Under constant threat from drug gangs, the Tamaulipas state media often ignore drug-gang violence completely. In northwestern Sinaloa state, meanwhile, gunmen swarmed a convoy transporting two prisoners, shredding three police vehicles with bullets and killing seven of-
ﬁcers and one inmate, Sinaloa state Attorney General Marco Antonio Higuera said Monday. Six ofﬁcers and the second inmate were wounded. Attackers traveling in about 20 vehicles caught the police convoy in a crossﬁre Sunday near the city of Guasave, Higuera said. “The patrol vehicles were destroyed. It was practically a massacre,” Higuera said. “Initial reports indicate there were 1,200 shell casings at the scene.” The three state police patrol vehicles were traveling to the state capital of Culiacan when they came under ﬁre from attackers who apparently lay in wait on a highway. Higuera said the ofﬁcers fought off a ﬁrst attack but were later caught in concentrated ﬁre from a larger number of vehicles.
N.Y. judge extends order blocking Chevron judgment BY LARRY NEUMEISTER Associated Press
NEW YORK — A federal judge has extended his temporary order banning collection of an $18 billion judgment by the courts in Ecuador against Chevron, saying the oil company could face irreparable harm because it appeared that lawyers for Ecuadoreans who sued over rainforest contamination were going to try to quickly collect the award. U.S. District Judge Lewis Kaplan said evidence had established that lawyers for 30,000 Ecuadoreans planned to move swiftly to pursue multiple enforcement actions and asset seizures around the globe, including in areas where Chevron would not be immediately able to challenge the actions. He said that without his order, “Chevron would be forced to defend itself and litigate the enforceability of the Ecuadorean judgment in multiple proceedings. There is a signiﬁcant risk that assets would be seized or attached, thus disrupting Chevron’s supply chain, causing it to miss critical deliveries to business partners.” The judge said such a disruption would also damage a business reputation and
relationships the company had developed over the past 130 years. Kaplan ordered Chevron to post a $21.8 million bond to cover the cost of any delay in enforcement of the award should it be determined that the damages are legitimate. Kaplan’s ruling came after Chevron sued lawyers and others involved in the Ecuadorean litigation, saying they violated racketeering laws by manipulating Ecuadorean courts into issuing an unfair judgment against the company. After the lawsuit was ﬁled, Ecuadorean Judge Nicolas Zambrano issued his award last month. Karen Hinton, a spokeswoman for the Ecuadoreans, called Kaplan’s ruling “a slap in the face to the democratic nation of Ecuador and the thousands of Ecuadorean citizens who have courageously fought for 18 years to hold Chevron accountable for committing the world’s worst environmental disaster.” She said Kaplan’s failure to consider key evidence or schedule a hearing to learn more facts was a “trampling of due process” and “an inappropriate exercise of judicial power.” She said Kaplan had dis-
regarded Zambrano’s “scholarly and comprehensive” 188-page opinion and ignored key evidence that Chevron had committed a series of frauds in Ecuador to “cover up its unlawful conduct.” In a 127-page opinion of his own, Kaplan cited evidence of what he described as possible misconduct by an U.S. lawyer for the Ecuadoreans. Yet, he said, neither the lawyer “nor any of the other key actors has denied Chevron’s allegations or attempted here to explain or justify under oath their recorded statements and written admissions.” The judge said there was “a great deal of posturing on both sides” and added that “a good deal of the rhetoric and argument in this case — must be viewed with a critical eye.” Kaplan said he solicited the views of the U.S. Department of State on Feb. 9 but the department politely declined to express any view. Chevron, which has never operated in Ecuador, found itself a party in the litigation after acquiring Texaco in 2001. Lawsuits had accused Texaco of contaminating Ecuadorean land during three decades of oil exploration and extraction.
Prominent senator and businessman convicted of bribery in Puerto Rico BY DANICA COTO
SAN JUAN — A jury convicted a prominent Puerto Rico senator and an island businessman of bribery in a high-proﬁle trial that featured allegations the lawmaker accepted a trip to Las Vegas to see a boxing match in exchange for political favors. On Monday, jurors found Sen. Hector Martinez and businessman Juan Bravo Fernandez guilty of one count each of bribery. The verdicts came at the end of the ﬁrst full day of deliberations in the U.S. federal court trial. The judge dismissed one count of conspiracy against Martinez, who was found not guilty of obstruction of justice and of interstate travel in aid of racketeering. Sentencing is scheduled for June 7. Each bribery count carries a maximum penalty of 10 years and a $250,000 ﬁne. Judge Francisco Besosa initially said both men should be detained, stating, “We cannot have any tolerance for government corruption.” But he later agreed to a conditional release with support from prosecutors and following an outcry from both defense attorneys. Martinez’s attorney, Abbe
D. Lowell, said he is conﬁdent the sole charge on which the senator was convicted will be dropped because the jury found him not guilty on the other charges and because the conspiracy charge was dismissed. “It’s a legal impossibility,” he said. “The one count that is left makes no sense.” He said he will ﬁle an appeal by March 14. If the judge does not rule in his client’s favor, he said, the case will be taken to the court of appeals. “We are only in the ﬁfth inning,” Lowell said. Prosecutor Peter Koski declined comment. Luis Fraticelli, special agent in charge of FBI operations in Puerto Rico, expressed satisfaction with the verdict. “The jury spoke, and that’s what matters,” he said. “There is still a long way to go. — What’s important is that justice was served.” Senate President Tomas Rivera Schatz said he will not ask Martinez to step down as senator. “I am convinced that Hector Martinez did not violate the law,” he said. Martinez stood by his side with tears in his eyes. He declined to comment. However, Gov. Luis Fortuno later issued a statement saying Martinez should re-
sign and abandon all his responsibilities as a senator. Prosecutors accused Martinez of accepting an all-expense-paid trip to Las Vegas to watch a boxing match in 2005 shortly after he submitted a bill that allegedly favored the business of Bravo, who owns one of the island’s largest private security ﬁrms. Bravo also was found guilty of conspiracy and of interstate travel in aid of racketeering. Bravo was the former chief executive and president of Ranger American, which provides security services at Puerto Rico largest shopping malls and has an armored car division. Prosecutors alleged he reserved hotel rooms in Miami and at the Mandalay Bay Resort and Casino in Las Vegas. They said he also spent $1,000 on tickets for the boxing match the day Martinez submitted one of the bills. One of the bills called for private security companies to obtain a private detective license, which companies competing with Ranger American did not have. The other bill required shopping centers to establish codes of conduct to be enforced by private security ﬁrms. Neither bill was approved.
3/9/2011 5:33:52 AM
THE MIAMI HERALD
WEDNESDAY, MARCH 9, 2011
21 priests suspended in Philadelphia BY KATHARINE Q. SEELYE
New York Times Service
The Archdiocese of Philadelphia announced Tuesday that it had placed 21 priests on administrative leave from active ministry in connection with credible charges that they had sexually abused minors. The mass suspension was one of the single most sweeping in the history of the sexual abuse scandal in the Roman Catholic Church in the United States. It follows a damning grand jury report issued Feb. 10 that accused the archdiocese of a widespread cover-up of predatory priests stretching over decades and that said as many as 37 priests remained active in the ministry despite credible allegations of sexual abuse against them.
The church apparently found no credible charges against eight of the priests. As for the rest, three were already placed on administrative leave, and ﬁve others would have been subject to leave but were no longer active. Two of those ﬁve no longer serve in the archdiocese but are members of a religious order; the archdiocese said it had notiﬁed the superiors of the religious order as well as the bishops of the diocese in which they live. Church ofﬁcials, including Cardinal Justin Rigali, the archbishop of Philadelphia, have spent the last few days informing the priests of their status after an initial review of their cases by Gina Smith, an outside lawyer hired by the church to reexamine their cases
in light of the grand jury report. The cardinal said the suspensions were interim measures, pending fuller investigations of their cases. He also apologized for the behavior of abusive priests. “As we strive to move forward today,” Cardinal Rigali added, “I wish to express again my sorrow for the sexual abuse of minors committed by any members of the church, especially clergy.” “I am truly sorry for the harm done to the victims of sexual abuse, as well as to the members of our community who suffer as a result of this great evil and crime,” he said. The announcement Tuesday was a major embarrassment for Cardinal Rigali, who, in response to
the grand jury report, had initially said that there were no priests in active ministry “who have an admitted or established allegation of sexual abuse of a minor against them.” The district attorney immediately indicted ﬁve people — two priests, a former priest, a parochial school teacher and a high-ranking church ofﬁcial. Within 10 days of the grand jury report, Cardinal Rigali placed three other priests whose activities had been detailed by the grand jury on administrative leave. The archdiocese said that the cases against the priests on administrative leave involved a range of charges, “from allegations of sexual abuse of a minor to boundary issues with minors.” It did not elaborate.
IN CUSTODY: Suspected serial rapist Aaron Thomas being escorted from the courthouse after an arraignment hearing in New Haven, Conn., on Monday.
Rape suspect surprises police with his demeanor BY MARIA GLOD AND JOSH WHITE Washington Post Service
FIERY: Lava erupts from the Pu’u O’o crater on Kilauea Volcano in Hawaii on Sunday.
Volcanic eruption rocks Hawaii BY SARAH WHEATON
New York Times Service
New cracks in Hawaii’s surface are continuing to spew lava in the latest punctuation of Kilauea Volcano, the mythical home of the Hawaiian ﬁre goddess Pele. Beginning over the weekend, the ﬁssures along the chain of craters that make up Kilauea’s East Rift Zone, on the southern end of Hawaii’s Big Island, created what resembled rivers of ﬁre through the forest. Splatters of molten lava reached peaks of more than 80 feet on Sunday, according to the U.S. Geological
Survey’s Hawaiian volcano observatory, reaching over the trees. In aerial photographs, incandescent ﬂows of red and orange — colors produced by temperatures as hot as about 2,000 degrees Fahrenheit — left veins of ash grey as they churned through the green forest, before cascading into another deep crack in the earth. The eruption also caused more than 150 detectable earthquakes in the area, which continued through Monday morning, though with decreasing frequency. The ﬁssures prompted the closing of parts of Ha-
waii Volcanoes National Park, including Chain of Craters Road and other trails and a campground in the area. The observatory also warned of lethal levels of sulfur dioxide near the vents. But because the eruptions are in a “very remote area” of the park, they do not pose a threat to people or towns, said Janet Babb, a geologist with the observatory. The ﬁssures are between the rift zone’s easternmost craters, Napau and Pu’u O’o. Pu’u O’o was formed in 1983, when Kilauea’s current eruption ﬁrst began. The volcano is thought
to be among the most active in the world. The lava ﬁssures coincided with a collapse of 380 feet in the crater ﬂoor of Pu’u O’o. The magma that ﬂows upward from inside Earth and supports the ﬂoor was apparently diverted, Babb said. However, she added, geologists were working to determine if the ﬁssures were the result of that diverted ﬂow. The lava lake inside Halema’uma’u, a crater on the opposite end of the rift zone near Kileau’s peak, also receded over the weekend, and its collapsing walls produced visible plumes of dust.
The detectives who had been hunting the East Coast Rapist for 14 years ﬁnally walked into an interview room in Connecticut to confront their suspect late last week. They were ready to face a combative, ruthless predator. What they found, instead, was a mild, passive, talkative and even weak man, according to several law enforcement ofﬁcials. Serial rape suspect Aaron Thomas talked about “uncontrollable urges” that he said led him to commit the crimes but did not indicate any sense of responsibility for more than a dozen attacks allegedly linked to him by DNA he left behind, the ofﬁcials said. He told detectives he had been following media coverage of the case and suspected police were closing in. After his arrest Friday in New Haven, Conn., a prosecutor said in court, Thomas had asked, “Why haven’t you picked me up sooner?” “You’re expecting this big confrontation,” said Mark Pfeiffer, a Fairfax County, Va., detective who began working on the case in 1999 and interviewed Thomas after his arrest. “You always try to envision what he’s going to be like. Then you see this weak person.” Thomas, 39, an out-ofwork truck driver, appears to have had few close relationships in his life, detectives said. Much about him remains unknown, but he was living with a girlfriend in Connecticut, has a young child and often visited family in Virginia. Police say they have used DNA to link Thomas to 12 rapes and other attacks on women since 1997. The crimes spanned four states, including Virginia and Maryland. Most of the assaults occurred within a few miles of where Thomas lived at different points in his life. Detectives said they believe Thomas could be responsible for many more attacks, including some that were never reported. Authorities said Monday that they are tracing Thomas’s travels over the past 14 years and examining records from Vermont to Geor-
gia, where he is known to have worked as a long-haul trucker and deliveryman. A combination of oldfashioned detective work, a high-tech police database culling millions of records, and a tip from someone who knew Thomas in Prince George’s County led to his arrest and could unveil more crimes. “There’s no doubt that an offender like this will have twice as many [victims] as he is usually linked to,” said Fairfax Detective John Kelly, who led the task force that hunted the rapist. “Obviously, he didn’t have boundaries in his crimes.” On Monday, Fairfax police chief David Rohrer and other law enforcement ofﬁcials asked those who know Thomas, or women who may have been victimized by him, to contact them. “We are still seeking information about Mr. Thomas and any victims who wish to come forward,” Rohrer said. But police did not release a photograph of Thomas, citing ongoing investigative efforts in Connecticut. Prince George’s Capt. Michael Straughan said the arrest is hardly the end of the case. Detectives will try to determine whether there are unsolved attacks that could be linked to Thomas. “We have a lot more work to do,” Straughan said. Detectives described Thomas as more slight and less menacing than they had expected — he is listed in court documents as being 5-foot-6 and weighing 175 pounds. But they noted that the East Coast Rapist surprised his victims and used a weapon. And police said he probably changed his appearance numerous times over the past decade and a half. They said Thomas was keenly aware of media coverage of the East Coast Rapist and left Northern Virginia for New England sometime last year after reading an investigative report in The Washington Post that detailed the series of crimes. The most recent rape attributed to Thomas was on Halloween in 2009, when three teenage trick-or-treaters were forced into a woods in Prince William County, Va., and two of them were sexually assaulted.
Within GOP, abundant fanfare but little commitment for 2012 BY JEFF ZELENY
New York Times Service
WAUKEE, Iowa — The 2012 U.S. presidential campaign is beginning, whether the candidates are ready or not. Republicans have been far more eager to criticize U.S. President Barack Obama than to formally jump into the race and start jockeying for the right to challenge him. But their hesitation, or strategic patience, has done little to slow the early stages of the party’s nominating contest. Things reached a preseason high Monday when six prospective Republican contenders — at least three of whom are viewed as long shots — were drawn to Iowa. An evening candidates’ fo-
rum was billed as the ﬁrst such gathering of the year, ﬁlling a church auditorium with Republican activists and a crush of reporters so large that it seemed like election eve. A curious trend is emerging in the early days of the 2012 presidential race: Republican voters are searching for candidates far more aggressively than candidates are searching for voters. Four years ago, nearly all of the candidates from both parties were already in the race by now. This time around, none of the big names have plunged fully in yet. Newt Gingrich, the former House speaker, kind of sort of dipped a toe in last week, but kept his op-
tions open, a tease that left some Republicans wondering whether he was truly committed to, and ready for, a campaign. Whether it is because they see Obama as a more formidable candidate than they expected, or because they want to avoid for as long as possible the media scrutiny that comes with a formal declaration, or because they want to see the ﬁeld gel before making any ﬁnal decisions, the most prominent of potential candidates are remaining coy for now. But coming off the big Republican gains in November and with the Tea Party movement helping to energize the party at the grassroots level, the entrepreneurial spirit of
Republican activists in earlyvoting states is alive and they are going to great lengths to try to jump-start the race. At Point of Grace Church, which sits on a sprawling campus in this western suburb of Des Moines, more than 1,000 Republicans turned out to begin taking a measure of some of the party’s contenders at a forum sponsored by the Iowa Faith and Freedom Coalition. The evening at the megachurch took on the feeling of a religious service, including passing the envelope for attendees to make contributions to the group. The event not only marked the unofﬁcial opening of the Iowa caucus campaign, it also provided an early window into the balance
that candidates will seek to strike as they navigate the demands of ﬁscal and social conservatives. Some of the biggest names in the Republican Party were not on hand, which left some in the audience wondering if the party was taking too leisurely an approach on the difﬁcult task of defeating a sitting president. “Iowa voters want to meet the candidates,” said Gov. Terry Branstad, a Republican. “They want to be able to ask them the tough questions; they want to make their own evaluation and decision.” Gingrich, former Gov. Tim Pawlenty of Minnesota and former Sen. Rick Santorum of Pennsylvania delivered their pitches, pledging to keep social issues like op-
posing abortion rights and gay marriage central. But the slow-to-develop race has also created an opening for an array of political ﬁgures and celebrities to enjoy a moment in the spotlight. Sarah Palin, Mike Huckabee and Mitt Romney declined invitations to come to Iowa on Monday. But Herman Cain, a former chief executive at Godfather’s Pizza, and former Gov. Buddy Roemer of Louisiana made their debuts on the 2012 campaign stage in an evening that was broadcast live on C-Span. “I have a breaking news announcement for President Obama,” Cain said. “The United States of America is not going to become the United States of Europe — not on our watch.”
3/9/2011 5:03:29 AM
WEDNESDAY, MARCH 9, 2011
THE MIAMI HERALD
Gates says U.S. ‘well positioned’ to start Afghan pullout BY ELISABETH BUMILLER
New York Times Service
KABUL — U.S. Defense Secretary Robert M. Gates has said that the United States was “well positioned” to begin withdrawing some U.S. troops from Afghanistan in July, but he said that a substantial force would remain and that the United States was starting talks with the Afghans about keeping a security presence in the country beyond 2014. At a joint news conference on Monday in the Afghan capital with President Hamid Karzai, Gates said that no decisions had been made about the number of troops to go home. His remarks were tempered with enough caveats, however, to suggest that the July drawdown promised by U.S. President Barack Obama could be minor. “As I have said time and again, we are not leaving Afghanistan this summer,” Gates said.
Currently about 100,000 U.S. troops are in the country. Gates also used the news conference to offer an extended apology to Karzai for the mistaken killings last week of nine Afghan boys. Karzai accepted the apology. On Sunday Karzai had rejected an apology for the killings from Gen. David H. Petraeus, the top U.S. commander in Afghanistan. “This breaks our heart,” Gates said as he stood beside Karzai in the Afghan presidential palace. “Not only is their loss a tragedy for their families, it is a setback for our relationship with the Afghan people.” One boy who was wounded but survived described a helicopter gunship that hunted down the children as they gathered wood outside their village. The gunners apparently mistook the children for insurgents who hours earlier had ﬁred on a
MANDEL NGAN/GETTY IMAGES
CORDIAL: U.S. Defense Secretary Robert Gates, right, meeting with Afghan National Police officers during a visit to Kandahar on Tuesday. U.S. base. The boys were 9 to 15 years old. Karzai, after responding that civilian casualties were at the heart of tensions between the United States and Afghanistan, said of Gates that “I trust him fully when
he says he’s sorry.” Gates, who was on an unannounced two-day trip to Afghanistan, spoke more positively than he had in recent months about what he cited as progress in the nearly decade-old war.
“The gains we are seeing across the country are signiﬁcant,” he said, citing improvements in security in Helmand and Kandahar provinces in the south, as well as some progress on Afghanistan’s eastern border with Pakistan. Gates made similar remarks to U.S. troops at Bagram Air Base earlier in the day, when he told them that “you’re having success, there’s just no question about it.” He added, “I know you’ve had a tough winter, it’s going to be a tougher spring and summer, but you’ve made a lot of headway, and I think you’ve proven with your Afghan partners that this thing is going to work.” Despite the optimism in Gates’ remarks, U.S. commanders in the east and north have seen continued violence in 2011 and two of the most lethal suicide bomb attacks in nearly two years occurred
in the last four weeks. One in the eastern city of Jalalabad killed 40 people and another in Kunduz province in the north killed 32. On Monday, a bomb blast in Jalalabad killed two more people and injured 19. Although fewer U.S. troops are dying this year than last, commanders say it is hard to tell whether that is because of a weakening in the Taliban offensive or the traditional winter hiatus in ﬁghting. But if Afghan troops prove able to keep the violence under control, that could signal a growing ability to protect difﬁcult patches on their own. As for a U.S. military presence in Afghanistan beyond 2014, Gates said a U.S. team would be in Kabul next week to begin negotiations on what he called a security partnership, which he predicted would require a “small fraction” of the U.S. forces in Afghanistan today.
Support for monarchy’s ouster grows in Bahrain London explains botched Libyan venture
MANAMA, Bahrain — (AP) — A senior opposition leader said Tuesday he would support demands to oust Bahrain’s monarchy if that becomes the overwhelming sentiment of protesters whose chants have increasingly targeted the 200-year-old dynasty. The statement by Hassan Mushaima appeared to open the door for a more hard-line approach by key opposition factions that have not yet uniﬁed their stance on how deeply to press for reforms. It also could further complicate appeals by Bahrain’s rulers to hold negotiations to ease the three-week-old unrest, which has left seven people dead and protesters staging daily marches in the strategic island kingdom — which hosts the U.S. Navy’s 5th Fleet. Mushaima, who returned to Bahrain last month after self-exile in London, said it’s up to the “people on the streets to decide” on the scope of the demands. The broad options include: toppling the monarchy or allow it to survive in a diminished form with most of its political powers transferred to the elected Parliament. “We are not trying to prevent any alternative,” Mushaima told The Associated Press. “It’s up the streets.” Mushaima, who leads a group known as Haq, was among 25 Shiite activists charged with trying to topple the Sunni leadership. The case has been dropped, but the sectarian rifts remain a prominent feature of the unrest. Bahrain’s majority Shiites — about 70 percent of the population — have long complained of discrimination and pro-Sunni policies that include granting citizenship and jobs to Sunnis from other Arab countries and South Asia. “Our demands will be
BY SARAH LYALL
New York Times Service
DISCONTENT: Women shouting anti-government slogans during a march in Manama, Bahrain, on Tuesday. what the street demands,” said Mushaima. “We can’t impose any demands on the street — not me or any leader of the opposition. It’s the people protesting on the streets who will unite with demands.” Increasingly, demonstrators have chanted slogans calling for the downfall of the Sunni monarchy, which is closely backed by neighboring Saudi Arabia. Gulf Arab leaders have issued strong pledges of support to Bahrain’s embattled king, fearing that any crack in Bahrain’s ruling system could embolden other challenges to the family dynasties that hold power through the region. Many Sunnis also worry that political gains by
Bahrain’s Shiites could open the way for greater inﬂuence by Shiite powerhouse Iran. On Monday, hundreds of Bahraini Shiites protested outside the U.S. Embassy in Manama to appeal for Washington to back their campaign for greater political freedoms. The Embassy said staff met with the protesters and reiterated the Obama administration’s commitment to the “partnership with the government and the people of Bahrain.” The opposition supporters claim that Washington is showing less support for the revolt in Bahrain than it did for the uprisings in Tunisia and Egypt that brought down the countries’ presidents.
Uproar in Netherlands over royal visit to Oman THE HAGUE, Netherlands — (AP) — Dutch opposition lawmakers are demanding Prime Minister Mark Rutte explain why Queen Beatrix is ﬂying to Oman for a private dinner with the country’s ruler just days after a state visit was postponed. The government called off a three-day state visit by Beatrix to Oman last week after social unrest roiling parts of the Arab world spread to the strategic Gulf state.
Beatrix is due to have a private dinner with Sultan Qaboos bin Said on Tuesday night before heading to Qatar on a state visit. The government’s decision to allow the dinner to go ahead has drawn ﬁerce criticism from lawmakers who believe the monarch could be trying to secure an order from Oman for four Dutch-built navy vessels. They say she should avoid a country in social upheaval.
Egypt court rejects Mubarak’s appeal on fund seizure BY HAMZA HENDAWI Associated Press
CAIRO — An Egyptian court on Tuesday rejected an appeal by ousted President Hosni Mubarak and his family against a top prosecutor’s move to seize funds that could total in the billions of dollars. The decision clears the way for a criminal investigation and a possible trial of Egypt’s ousted leader. Mubarak stepped down Feb. 11 at the end of 18 days of massive protests demanding his ouster after nearly 30 years in power. He, his wife, two sons and their wives have also been banned from travel abroad. Judicial ofﬁcials described the decision in closed court to The Associated Press on condition of anonymity because they were not authorized to speak to the media. There are no ofﬁcial ﬁgures on the funds held by
Mubarak and his family but many believe they run into the billions, with much of it held overseas. The ofﬁcials said presiding judge Makram Awad rejected a defense request for more time to prepare the defense and decided instead to reject the appeal. The opposition that ousted Mubarak has pushed for a criminal investigation and a possible trial for members or all of the family. Prosecutors’ actions suggest that they would be willing to pursue that course of action. Egypt’s attorney general froze the assets of the Mubaraks on Feb. 20 and ordered the family’s funds seized eight days later. Authorities also prevented Mubarak’s wife and son from ﬂying out of the Red Sea resort of Sharm el Sheikh, where they are thought to be staying. During the pro-democracy uprising, unconﬁrmed re-
ports that Mubarak and his family might have amassed billions, or even tens of billions of dollars, over their three decades in power, fueled protesters already enraged over massive corruption and poverty in Egypt. Mubarak, top leaders of his one-time ruling party and other cronies, as well as the powerful military have all proﬁted richly from the corrupt system while nearly half of Egypt’s 80 million people live under or near the poverty line set by the World bank at $2 a day. Mubarak, 82, is suspected of turning a blind eye to corruption by family members and their associates, while many of the allegations of wrongdoing centered on the business activity of his two sons, Alaa and Gamal, as well as Gamal’s wife and her family. Unlike other Arab leaders, particularly those in the oil-
rich Gulf nations, Mubarak was far from ostentatious. Whatever wealth he and his family may have had was rarely — if ever — ﬂaunted. But that did not stop Egyptians from swapping stories about the size of their wealth and the alledgedly corrupt methods they used to amass it. The most prominent symbol of their presumed fortune that has surfaced was a townhouse in London’s exclusive Knightsbridge district, which is listed under Gamal Mubarak’s name and where he was said to have lived while working as an investment banker in the early 1990s. The townhouse has become a focal point for many in Egypt as foreign governments begin to either enact, or consider freezing the family’s assets. Gamal Mubarak was the ousted leader’s one-time heir apparent, although they
never conﬁrmed the plan and remained evasive on the topic almost until the very end. The younger Mubarak rose rapidly through the ranks of his father’s National Democratic Party, or NDP, over the past decade to become the country’s most powerful politician after the president. In the NDP, Gamal Mubarak surrounded himself with mega-rich businessmen who sought political careers to promote their business interests. Between them, they introduced far-reaching economic reforms that beneﬁted the businessmen. But any prosperity Egypt ever enjoyed never trickled to the impoverished majority. Several of those businessmen are now in prison and subject to criminal investigations as the ruling military pushes ahead with a campaign to cleanse the country from the corruption of the ousted regime.
LONDON — The British government has revealed embarrassing details about a British mission that was apparently meant to reinforce relations with opposition leaders in eastern Libya, but ended with eight Britons being handcuffed and detained on a military base for two days. In a statement to the House of Commons, Britain’s Foreign Secretary William Hague said Monday that because of a “serious misunderstanding” over the role of the Britons — six soldiers and two Foreign Ofﬁce ofﬁcials — in eastern Libya, the eight had left the country. They were on their way to Malta. “Last week I authorized the dispatch of a small British diplomatic team to eastern Libya, in uncertain circumstances which we judged required their protection, to build on these initial contacts and to assess the scope for closer diplomatic dialogue,” Hague said, speaking of the Interim National Council, based in Benghazi and made up of opposition leaders. “They were withdrawn yesterday after a serious misunderstanding about their role, leading to their temporary detention,” he added. Libya’s foreign minister, Moussa Koussa, seized on the episode as proof that the Western powers were trying to split Libya. “The English are yearning for the colonial era of the past,” Koussa said. “The ﬁrst nations who started getting in touch with the secessionists were the English, also the French and the Americans.” The Labour opposition was also quick to criticize the government of Prime Minister David Cameron. The weekend’s mission was meant to make contact with opponents of the Libyan government. But according to British news reports, soon after the group entered the country by helicopter, its members were accused of being mercenaries, seized, handcuffed and taken to an opposition military base. The government has denied claims that the men were intelligence ofﬁcers. To make the situation worse, the British ambassador’s pleading exchange with a spokesman for the opposition council was intercepted. The Libyan government provided copies of the conversation to the BBC, which broadcast it Sunday, and to about 130 members of the foreign press in Tripoli.
3/9/2011 3:23:43 AM
THE MIAMI HERALD
WEDNESDAY, MARCH 9, 2011
CHARLES D. SHERMAN, EDITOR-IN-CHIEF
The importance of monogamy BY ROSS DOUTHAT
New York Times Service
ocial conservatives can seem like the perennial pessimists of U.S. politics — more comfortable with resignation than with hope, perpetually touting evidence of family breakdown, social disintegration and civilizational decline. But even doomsayers get the occasional dose of good news. And so it was last weekend, when a study from the Centers for Disease Control and Prevention revealed that U.S. teens and 20-somethings are waiting longer to have sex. In 2002, the study reported, 22 percent of U.S. citizens ages 15 to 24 were still virgins. By 2008, that number was up to 28 percent. Other research suggests that this trend may date back decades, and that youngsters have been growing more sexually conservative since the late 1980s. Why is this good news? Not, it should be emphasized, because it suggests the dawn of some sort of traditionalist utopia, where the only sex is married sex. No such society has
ever existed, or ever could: not in the 1950s (where, as the feminist writer Dana Goldstein noted last week, the vast majority of men and women had sex before they married), and not even in Mormon Utah (where Brigham Young University recently suspended a star basketball player for sleeping DOUTHAT with his girlfriend). But there are different kinds of premarital sex. There’s sex that’s actually premarital, in the sense that it involves monogamous couples on a path that might lead to matrimony one day. Then there’s sex that casual and promiscuous, or just premature and ill considered. This distinction is crucial to understanding what’s changed in the United States since the sexual revolution. Yes, in 1950 as in 2011, most people didn’t go virgins to their marriage beds. But earlier generations waited longer to have sex, took fewer sexual partners across their lifetimes, and were more like-
ly to see sleeping together as a way station on the road to wedlock. And they may have been happier for it. That’s the conclusion suggested by sociologists Mark Regnerus and Jeremy Uecker in their recent book, Premarital Sex in America. Their research, which looks at sexual behavior among contemporary young adults, ﬁnds a signiﬁcant correlation between sexual restraint and emotional well-being, between monogamy and happiness — and between promiscuity and depression. This correlation is much stronger for women than for men. Female emotional well-being seems to be tightly bound to sexual stability — which may help explain why overall female happiness has actually drifted downward since the sexual revolution. Among the young people Regnerus and Uecker studied, the happiest women were those with a current sexual partner and only one or two partners in their lifetime. Virgins were almost as happy, though not quite, and then a young woman’s likelihood of depression rose steadily as her number of partners
climbed and the present stability of her sex life diminished. When social conservatives talk about restoring the link between sex, monogamy and marriage, they often have these kinds of realities in mind. The point isn’t that we should aspire to some Arcadia of perfect chastity. Rather, it’s that a high sexual ideal can shape how quickly and casually people pair off, even when they aren’t living up to its exacting demands. The ultimate goal is a sexual culture that makes it easier for young people to achieve romantic happiness — by encouraging them to wait a little longer, choose more carefully and judge their sex lives against a strong moral standard. This is what’s at stake, for instance, in debates over abstinencebased sex education. Successful abstinence-based programs (yes, they do exist) don’t necessarily make their teenage participants more likely to save themselves for marriage. But they make them more likely to save themselves for somebody, which in turn increases the odds that their adult sexual lives will be a source of joy rather than sorrow.
It’s also what’s at stake in the ongoing battle over whether the federal government should be subsidizing Planned Parenthood. Obviously, social conservatives don’t like seeing their tax dollars ﬂow to an organization that performs roughly 300,000 abortions every year. But they also see Planned Parenthood’s larger worldview — in which teen sexual activity is taken for granted, and the most important judgment to be made about a sexual encounter is whether it’s clinically “safe” — as the enemy of the kind of sexual idealism they’re trying to restore. Liberals argue, not unreasonably, that Planned Parenthood’s approach is tailored to the gritty realities of teenage sexuality. But realism can blur into cynicism, and a jaded attitude can become a self-fulﬁlling prophecy. Social conservatives look at the contemporary sexual landscape and remember that it wasn’t always thus, and they look at current trends and hope that it doesn’t have to be this way forever. In this sense, despite their instinctive gloominess, they’re actually the optimists in the debate.
The new humanism BY DAVID BROOKS
New York Times Service
over the course of my career, I’ve covered a number of policy failures. When the Soviet Union fell, the United States sent in teams of economists, oblivious to the lack of social trust that marred that society. While invading Iraq, U.S. leaders were unprepared for the cultural complexities of the place and the psychological aftershocks of Saddam’s terror. The United States had a ﬁnancial regime based on the notion that bankers are rational creatures who wouldn’t do anything stupid en masse. For the past 30 years we’ve tried many different ways to restructure our educational system — trying big schools and little schools, charters and vouchers — BROOKS that, for years, skirted the core issue: the relationship between a teacher and a student. I’ve come to believe that these failures spring from a single failure: reliance on an overly simplistic view of human nature. We have a prevailing view in our society — not only in the policy world, but in many spheres — that we are divided creatures. Reason, which is trustworthy, is separate from the emotions, which are suspect. Society progresses to the extent that reason can suppress the passions. This has created a distortion in our culture. We emphasize things that are rational and conscious and are inarticulate about the processes down below. We are really good at talking about material things but bad at talking about emotion. When we raise our kids, we focus on the traits measured by grades and SAT scores. But when it comes to the most important things like character and how to build relationships, we often have nothing to say. Many of our public policies are proposed by experts who are comfortable only with correlations that can be measured, appropriated and quantiﬁed, and ignore everything else. Yet while we are trapped within this amputated view of human nature, a richer and deeper view is coming back into view. It is being brought to us by researchers across an array of diverse ﬁelds: neuroscience, psychology, sociology, behavioral economics and so on. This growing, dispersed body of research reminds us of a few key insights. First, the unconscious parts of the mind are most of the mind, where many of the most impressive feats of thinking take place. Second, emotion is not opposed to reason; our emotions assign value to things and are the basis of reason. Finally, we are not individuals who form relationships. We are so-
cial animals, deeply interpenetrated with one another, who emerge out of relationships. This body of research suggests the French enlightenment view of human nature, which emphasized individualism and reason, was wrong. The British enlightenment, which emphasized social sentiments, was more accurate about who we are. It suggests we are not divided creatures. We don’t only progress as reason dominates the passions. We also thrive as we educate our emotions. When you synthesize this research, you get different perspectives on everything from business to family to politics. You pay less attention to how people analyze the world but more to how they perceive and organize it in their minds. You pay a bit less attention to individual traits and more to the quality of relationships between people. You get a different view of, say, human capital. Over the past few decades, we have tended to deﬁne human capital in the narrow way, emphasizing IQ, degrees, and professional skills. Those are all important, obviously, but this research illuminates a range of deeper talents, which span reason and emotion and make a hash of both categories: Attunement: The ability to enter other minds and learn what they have to offer. Equipoise: The ability to serenely monitor the movements of one’s own mind and correct for biases and shortcomings. Metis: The ability to see patterns in the world and derive a gist from complex situations. Sympathy: The ability to fall into a rhythm with those around you and thrive in groups. Limerence: This isn’t a talent as much as a motivation. The conscious mind hungers for money and success, but the unconscious mind hungers for those moments of transcendence when the skull line falls away and we are lost in love for another, the challenge of a task or the love of God. Some people seem to experience this drive more powerfully than others. When Sigmund Freud came up with his view of the unconscious, it had a huge effect on society and literature. Now hundreds of thousands of researchers are coming up with a more accurate view of who we are. Their work is scientiﬁc, but it directs our attention toward a new humanism. It’s beginning to show how the emotional and the rational are intertwined. I suspect their work will have a giant effect on the culture. It’ll change how we see ourselves. Who knows, it may even someday transform the way our policymakers see the world.
RONDA CHURCHILL/BLOOMBERG NEWS
DWINDLING: The average amount of time college students spend studying has dropped by more than 50 percent since the early 1960s, a study shows.
College, the easy way BY BOB HERBERT
New York Times Service
he cost of college has skyrocketed and a four-year degree has become an ever more essential cornerstone to a middle-class standard of living. But what are U.S. students actually learning in college? For an awful lot of students, the answer appears to be not much. A provocative new book, Academically Adrift: Limited Learning on College Campuses, makes a strong case that for a large portion of the United States’ seemingly successful undergraduates the years in college barely improve their skills in critical thinking, complex reasoning and writing. Intellectual effort and academic rigor, in the minds of many U.S. college students, is becoming increasingly less important. According to the authors, Professors Richard Arum of New York University and Josipa Roksa of the University of Virginia: “Many students come to college not only poorly prepared by prior schooling for highly demanding academic tasks that ideally lie in front of them, but — more troubling still — they enter college with attitudes, norms, values, and behaviors that are often at odds with academic commitment.” Students are hitting the books less and partying more. Easier courses and easier majors have become more and more popular. Perhaps more now than ever, the point of the college experience is to have a good time and walk away with a valuable credential after putting in the least effort possible. What many of those students are not walking away with is something that has long been
recognized as invaluable — higher order thinking and reasoning skills. They can get their degrees without putting in more of an effort because in far too many instances the colleges and universities are not demanding more of them. The authors cite empirical work showing that the average amount of time spent studying by college students has dropped by more than 50 percent since the early 1960s. But a lack of academic focus has not had much of an effect on grade point averages or the ability of undergraduates to obtain their degrees. Thirty-six percent of the students said they studied alone less than ﬁve hours a week. Nevertheless, their transcripts showed a collective grade point average of 3.16. “Their GPAs are between a B and a B-plus,” said Arum, “which says to me that it’s not the students, really — they share some of the blame — but the colleges and universities have set up a system so that there are ways to navigate through it without taking difﬁcult courses and still get the credential.” The book is based on a study, led by Arum, that followed more than 2,300 students at a broad range of schools from fall 2005 to spring 2009. The study (available at highered.ssrc.org) showed that in their ﬁrst two years of college, 45 percent of the students made no signiﬁcant improvement in skills related to critical thinking, complex reasoning and communication. After the full four years, 36 percent still had not substantially improved those skills. The development of such skills is generally thought to be the core function of a college education. The students who don’t develop them may leave college with
a degree and an expanded circle of friends, but little more. Many of these young men and women are unable to communicate effectively, solve simple intellectual tasks (such as distinguishing fact from opinion), or engage in effective problem-solving. “This is a terrible disservice, not only to those students, but also to the larger society,” said Arum. “I really think it’s important to get the word out about the lack of academic rigor and intellectual engagement that’s occurring at colleges and universities today.” While there are certainly plenty of students doing very well and learning a great deal in college, this large increase in the number of students just skating by should be of enormous concern in an era in which a college education plays such a crucial role in the lifetime potential of the United States’ young people. It can leave the United States at a disadvantage in the global marketplace. But, more important, the students are cheating themselves — and being cheated — of the richer, more satisfying lives that should be the real payoff of a four-year college experience. “You have to ask what this means for a democratic society,” Arum said. “This is the portion of the population that you would expect to demonstrate civic leadership in the future, civic engagement. They are the ones we would expect to be struggling to understand the world, to think critically about the rhetoric out there, and to make informed, reasoned decisions. “If they’re not developing their higher order skills, it means they’re not developing the attitudes and dispositions that are needed to even understand that that’s important.”
3/9/2011 3:33:47 AM
WEDNESDAY, MARCH 9, 2011
THE MIAMI HERALD
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BUSINESS & SPORTS B BUSINESS&SPORTS WEDNESDAY, MARCH 9, 2011
EU nations agree on need for more discipline
BY STEPHEN CASTLE
10-YR NOTE CRUDE OIL
Bank stocks push indexes higher
New York Times Service
BRUSSELS — The 17 countries that use the euro have agreed on all key elements of a new pact designed to inject more discipline into their currency zone — except for measures that would bring Europe’s corporate tax systems closer together. A meeting of ofﬁcials from the eurozone countries Tuesday gave broad agreement to a new text of the so-called pact for competitiveness, according to diplomats speaking on condition of anonymity due to the sensitivity of the discussions. However, the idea of aligning
the base on which corporate taxes are levied remained divisive and looked likely to provoke a dispute among leaders of the eurozone nations when they meet in Brussels on Friday. At Tuesday’s preparatory meeting, Ireland, and at least four countries, spoke out against the plans for corporate tax. Many nations guard jealously the right to take decisions on taxes in their own national capitals and see the initiative as a ﬁrst step toward harmonizing tax rates. But France led a group of countries which wanted to strengthen — not weaken — the text on corporate tax. Germany and France want agree-
ment on the pact for competitiveness, which covers issues ranging from raising retirement ages to adopting debt brakes, on Friday. It is designed to inject more ﬁscal discipline into the eurozone and, once agreed to by the 17 countries, the 10 remaining EU members outside the euro would be invited to join. Berlin sees a deal on the pact as a precondition for bolstering the €440 billion, or $608 billion, backstop fund for eurozone countries and making it permanent, and possibly more ﬂexible. The latest paper says that countries should announce concrete commitments to improve several aspects of their own economic per-
formance within the next 12 months. These targets should be announced on March 24 if possible or, for countries unable to do so, in June. By giving countries the ability to choose the detail of the measures, the latest drafts of the pact have defused many of the fears that it would impose rigid ﬁscal discipline on the eurozone. The newest paper also softens the sense of obligation on governments by referring to a “set of possible measures,” and weakens a passage which, in earlier drafts, called for a review of wage-setting arrangements. This followed objections from countries including Belgium.
BY CHIP CUTTER AND DAVID K. RANDALL Associated Press
NEW YORK — Financial companies pushed stock indexes higher Tuesday on signs that banks may soon raise their dividends. The Dow Jones industrial average gained 124.35 points, or 1 percent, to 12,214.38. The S&P 500 rose 11.69, or 0.9 percent, to 1,321.82. The Nasdaq composite rose 20.14, or 0.7 percent, to 2,765.77. Bank of America gained 4.7 percent, the most of the 30 stocks that make up the Dow Jones industrial average, after chief executive Brian Moynihan told an investor’s meeting that the bank could earn more money over the next two years as its business stabilizes. That led analysts to note that large consumer banks may raise their dividends. Banks slashed dividends during the 2008 ﬁnancial crisis to cut costs. Financial stocks in the S&P 500 index rose 2.2 percent, the most of any of the index’s 10 company groups. American Express gained 3.5 percent, and JPMorgan Chase gained 2.6 percent. Falling oil prices also helped stocks move higher. Oil prices dipped 0.5 percent to $105 a barrel after Kuwait’s oil minister said that OPEC members are in informal talks about raising oil output as the conﬂict in Libya continues. “Rapidly higher moving oil prices can substantially impact demand,” said Oliver Pursche, president of Gary Goldberg Financial Services. It’s something OPEC members are “very, very much aware of and want to avoid.” Oil prices have risen 9 percent so far this month. That has pushed stocks lower as investors worry that higher gas prices will dampen the economic recovery. Energy companies were the only group in the S&P index to fall, losing 0.6 percent. Bond prices fell, pushing yields higher. The yield on the 10-year Treasury note rose to 3.54 percent from 3.51 percent late Monday. Brown-Forman rose 4.7 percent after the liquor company said its net income rose 30 percent in the latest quarter thanks to growing international sales and a strong performance by its ﬂagship Jack Daniel’s brand. Urban Outﬁtters fell 16.7 percent after the retailer’s earnings missed Wall Street’s expectations due to higher expenses. Netﬂix fell 5.8 percent after Facebook announced that it will allow members to stream movies through its pages, a direct competition to Netﬂix’s popular on-demand offering. Three stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 4.3 billion shares.
JIM WILSON/NEW YORK TIMES SERVICE
BRIGHT IDEA: Paul Holland, left, and Molly Davis, producers of a new documentary, Something Ventured, that gives an admiring look at innovators and investors from the past. BY MICHAEL CIEPLY
New York Times Service
LOS ANGELES — At the South by Southwest festival in Austin, next weekend, moviegoers can see what might be the rarest bird in the documentary world: a genuine love story about capitalism. The ﬁlm, Something Ventured, is a frankly admiring look at those who went out on a limb to back upstarts like Atari, Cisco Systems, Genentech and Apple. How the documentary fares may help tell whether a society that has been leery of big business since the ﬁnancial collapse of 2008 is ready to soar with the entrepreneurs once again. “This ﬁlm is one of the green shoots after a long winter,” said
A CAPITAL IDEA A FILM ABOUT CAPITALISM, AND (SURPRISE) IT’S A LOVE STORY
Paul Holland, an executive producer of Something Ventured. Holland, who is a partner at the venture ﬁrm Foundation Capital, spent years developing the ﬁlm with fellow producers and the directors Dan Geller and Dayna Goldﬁne, who made the dance documentary Ballets Russes. The idea, said Holland, was to create what Geller termed “ Reds for capitalism.”
It can be tart. The music includes four versions of the song Money (That’s What I Want), including a sassy, era-appropriate 1979 cover by the Flying Lizards. But the ﬁlm’s beating heart is captured by Tom Perkins, whose Kleiner Perkins Cauﬁeld & Byers company backed the gene-splicing technology of Genentech, among other things. “It’s great if you can make money and change the world for the better at the same time,” said Perkins, who appears at one point in a lavender shirt, black T-shirt and silvery striped jacket that look suitable for attending discos that no longer exist. Other stars of Something
Reds, a paean to old Bolsheviks, was directed by Warren Beatty and received 12 Oscar nominations in 1982. The stories in Something Ventured are told by and about a clutch of investors and innovators whose encounters in the 1960s, ’70s and ’80s made Silicon Valley and its environs a hotbed of technological change, business growth and job and wealth creation. )TURN TO CAPITALISM, 2B
Russia gains from fears over Mideast oil Curious
accusations in SEC case
BY ANDREW E. KRAMER
New York Times Service
MOSCOW — Whatever the eventual outcome of the Arab world’s social upheaval, there is a clear economic winner so far: Vladimir Putin. Russia, which pumps more oil than Saudi Arabia, is reaping a windfall from the steep rise in global energy prices resulting from instability in oil regions of the Middle East and North Africa. Riding the high oil prices, the Russian ruble has risen faster against the dollar this year than any other currency, which is helpful because it will curb consumer inﬂation during an election year. Russian stocks are buoyant, too: The Micex index closed last week at 1,781, up nearly 6 percent since the beginning of the year. But the Russians could not step in to offset any potential big drop in global production, because Russia does not have any oil wells standing idle that would allow it to increase production. Right now Russia is pumping oil at its top capacity. But at last week’s closing of $114, the price of each of those barrels of Ural crude, the country’s main export blend, has risen
BY ANDREW ROSS SORKIN New York Times Service
enment as the two discussed, just short of gloating, the beneﬁts to Russia of a global oil panic. “Mr. Kudrin, budget revenues have become considerable,” Putin said matter-of-factly.
he fact pattern looks bad, very bad. Seconds after Rajat K. Gupta, then a director of Goldman Sachs, ﬁnished up a board call during which he learned that U.S. billionaire Warren Buffett had agreed to invest $5 billion in the ﬁrm, he picked up the phone and called his friend Raj Rajaratnam, regulators contend. Minutes later, Rajaratnam placed bets on shares of Goldman Sachs that netted his ﬁrm, the Galleon Group, $900,000. The Securities and Exchange Commission, which accused Gupta of insider trading last week, says this happened not once, but repeatedly. He did the same thing to Procter & Gamble, where he was also a director, the SEC claims. Exactly what was said on these phone calls remains unknown. But if the SEC proves its case, then Gupta, a respected management
)TURN TO RUSSIA, 2B
)TURN TO SEC, 2B
DMITRY BELIAKOV/BLOOMBERG NEWS
TURNING IT ON: A worker carries out safety checks at an oil refinery in Urengoy, Russia. 24 percent since the beginning of the year. Last week, the prime minister, Putin, sat down for a televised meeting with Russia’s ﬁnance minister, Aleksei L. Kudrin, which was nationally televised on state news channels for the public’s enlight-
WEDNESDAY, MARCH 9, 2011
THE MIAMI HERALD
Curious charges in SEC case • SEC, FROM 1B
STAN HONDA/AFP-GETTY IMAGES
COMPETITION: The decades-long rivalry between the New York Stock Exchange and Nasdaq is intensifying.
Exchanges duel for customers BY GRAHAM BOWLEY
New York Times Service
Last fall, when Continental and United Airlines were merging and deciding where to list the new company’s shares, the New York Stock Exchange offered to sponsor ceremonies for airline executives at the open and close of trading in Paris and New York. It also agreed to buy advertisements in the airline’s magazine to herald the listing. The airline chose the New York Stock Exchange over Nasdaq. In 2009, when DreamWorks Animation, which already listed its shares on the Big Board, was introducing Shrek the Musical on Broadway, Nasdaq promoted the show on its big screen on Broadway in Manhattan and handed out Shrek ears in Times Square.
DreamWorks transferred its listing to Nasdaq. Even as the two dominant New York exchanges are widening their horizons — with the Big Board agreeing to merge with Deutsche Boerse of Germany and with Nasdaq thought to be seeking its own merger partner — at home, their decadeslong rivalry is intensifying. As revenue from stock trading declines because of increasing competition from smaller electronic exchanges, the Big Board and Nasdaq are taking advantage of regulatory changes that make it easier for them to poach listings from each other. In many prominent cases, the seductions are working. New competition is not the only threat to their businesses. The number of listings on the exchanges has
also declined, because of mergers, fewer initial public offerings and the deaths of so many technology companies that went public a decade ago. Bruce Aust, who has run Nasdaq’s listing business since 2003, said Nasdaq became attractive to companies as they realized that its faster electronic systems were handling more and more trading volume for shares listed on the Big Board, where trading was traditionally done by traders on the ﬂoor. That led some companies to view Nasdaq as a more liquid market, and a more lucrative one, though it has also lost some of its own volume to younger electronic exchanges trying to beat Nasdaq at its own game. As part of its offensive to steal listings from others,
Nasdaq began helping its clients with investor relations. It hosts webcasts for company reports and provides a newswire that companies can use to send out announcements. Another service helps companies learn more about who is buying and selling their shares. The most visible support services are focused on marketing, including publicity on Nasdaq’s big screen in Times Square. When Tesla Motors introduced its shares on Nasdaq last year, for example, it promoted its ﬂeet of cars in front of Nasdaq’s headquarters there. “We give companies tower time when they ring the opening bell,” Aust said. He said Nasdaq was now in the business of helping companies with their branding, providing “great visibility for a public company”.
guru who once ran McKinsey and advised the Bill & Melinda Gates Foundation, was routinely “disclosing their most sensitive and valuable secrets”. Yet there is something curious about the accusations against Gupta, which came just days before Rajaratnam’s criminal trial, which is set to begin on Tuesday. Given the seriousness of the claims — insider trading by an executive who had reached the upper echelons of corporate America — why not bring criminal charges against Gupta? “This is very unusual. It’s a red ﬂag,” Kip Weissman, a partner at Luse Gorman Pomerenk & Schick in Washington and a former SEC enforcement lawyer, said of the case. Not only has the Justice Department not brought a criminal case, at least not yet, but the SEC decided to bring its case in front of an administrative law judge instead of in a Federal District Court, where a defendant has full discovery rights. “It’s a little easier from an evidentiary perspective,” Weissman said for the SEC to bring the case in front of an administrative judge. “The evidentiary standard is lower,” he explained. “It’s certainly noteworthy that the SEC brought the case in this forum.” Indeed, statistically, it is notable: Of the 26 Galleonrelated cases the SEC has brought, all have been brought in federal court. None has been brought in front of an administrative judge. As Weissman asked, somewhat rhetorically, “Why?” The SEC’s laundry list of allegations against Gupta raises some important questions: Since the government had
tapped Rajaratnam’s phones, were any of the conversations with Gupta that were cited by the SEC recorded? It appears not. Stranger still, nowhere in the SEC’s ﬁling does it contend that Gupta received any form of compensation for passing along insider trading tips to Rajaratnam. If that’s right, why would Gupta pass the information? (The SEC does not have to show that Gupta beneﬁted ﬁnancially to prove its case.) None of this is to suggest that the circumstantial evidence isn’t powerful. But it does raise red ﬂags among legal experts trying to handicap exactly what the government has up its sleeve. The running narrative among defense lawyers is this: The SEC brought its case in front of an administrative judge to discredit Gupta to help the criminal case against Rajaratnam. But you have to imagine that if the evidence was truly overwhelming against him, Gupta might have sought to become a government witness in order to save himself. (People close to the case suggest that such a settlement offer had been on the table.) Having said all that, there is something mystifying in the statement that Gary Naftalis, Gupta’s lawyer, made the day he was sued. “Mr. Gupta has done nothing wrong,” Naftalis said. “There is no allegation that Mr. Gupta traded in any of these securities or shared in any proﬁts as part of any quid pro quo.” Read those words again. He didn’t say Gupta didn’t pass on material nonpublic information or that he didn’t breach his ﬁduciary duty. All he said was that his client wasn’t getting paid to do so. Maybe Naftalis was going only for a short sound bite, but it is odd.
YouTube makes acquisition to move beyond home videos BY CLAIRE CAIN MILLER
New York Times Service
SAN FRANCISCO — YouTube, the video site owned by Google, formally announced that it had acquired Next New Networks, a Web video production company, in its biggest effort yet to move beyond short, quirky home videos to professionally produced content. The acquisition of Next New Networks, which produces original programming and helps video creators dis-
tribute their ﬁlms and make money, is YouTube’s biggest leap into creating its own programming. But that will be minimal, the companies said. Original programming has taken a back seat at Next New Networks, and Google has shied away from producing its own content. “We want to make as clean a line as possible for us to build the platform on YouTube and then let the content production happen with our partners,” said Tom Pick-
ett, director of global content operation at YouTube. Google will pay less than $50 million for the company, according to two people briefed on the terms of the deal, which The New York Times ﬁrst reported YouTube’s interest in the company in December. The companies declined to comment on the price. Improving its original programming is crucial for YouTube, which faces competition from Web video ser-
vices like Hulu, iTunes and Netﬂix. For its part, Google, which is trying to popularize its Google TV service, needs more Web video that people will watch for hours at a time. “There’s still a lot of YouTube that’s about the single video experience right now,” Pickett said. “We want to think about sets of videos and program experiences. That’s where we’re heading and we think this team is going to help us get there.”
Many video creators on YouTube “are making money and doing great, but as a group they have not added up to shake the foundations of the way people watch content,” said James L. McQuivey, a digital media analyst at Forrester Research. The company also said Monday that it was creating a program called YouTube Next that will help the video makers with whom YouTube shares ad revenue to produce more professional content
by giving them grants and training. Next New Networks, which attracts 2 billion views a month, compares itself to cable networks, which do not own all their programming but package and broadcast other people’s shows. It helps video creators with advertising, distribution of their shows to various websites, and in building an audience by including shows as part of a programming package.
A love story on capitalism Fears about oil in Mideast and Libya pay off for Russia
• CAPITALISM, FROM 1B
Ventured include Nolan Bushnell of Atari; Sandy Lerner of Cisco; Jimmy Treybig of Tandem Computers; and a string of venture capitalists, among them Don Valentine, Dick Kramlich, and Arthur Rock. Many who appear joined dozens of other businesspeople to ﬁnance the picture’s roughly $700,000 cost with contributions of a few thousand dollars each, Holland said. In becoming involved, several participants said they wanted to rekindle an entrepreneurial spirit that had either waned or changed since the rough-and-tumble years when, by the ﬁlm’s telling, Atari was started with $250 but needed capital to push Pong, and Bushnell passed up a chance to own a third of Apple, started by his employee Steve Jobs, for $50,000. “The target audience I hope for is every high school senior, kids about to choose a college,” said Valentine, who still works through Sequoia Capital (which did back Apple). Valentine, who spoke Sunday, said entrepreneurship had not ended — his company was a force behind Google — but it is less often coming from those born in
the United States. “You don’t understand what you have here” is a constant refrain, he said, from Southeast Asian and Indian innovators who are sometimes mystiﬁed by a U.S. disdain for its own business culture. Kramlich, who also spoke Sunday, speculated that overreaching during the dot-com boom tarnished the venture business in the eyes of many. “We’re just getting back to that old-time religion,” he said, pointing toward social networking as an example of innovation still being born. Interviewing potential ﬁlmmakers for his project was initially awkward, said Holland, given the disdain for big business that has been a mainstay of documentaries like Enron: The Smartest Guys in the Room, from Alex Gibney; The Greatest Movie Ever Sold, from Morgan Spurlock; Inside Job, from Charles Ferguson; and Capitalism: A Love Story, from Michael Moore. “Here I am, dealing with fairly typical ﬁlmmakers, with very liberal sensibilities,” Holland, who shares executive producing credits with Molly Davis, said of his conversations. Goldﬁne and Geller, who are married, were concerned
that movers and shakers like Rock and Valentine, linchpins of the ﬁlm, might be too wrapped up in wealth and business to be watchable. “Would they be vulnerable? Would they open up?” Geller said he wondered. In fact, most did. A turning point in the documentary involves Lerner’s emotional recounting of her ﬁring from Cisco, a company she co-founded. On camera, Valentine, one of those who ﬁred her, said he did not believe he had ever been forgiven. On Sunday, he said he had struggled to keep Lerner in the company, but was cornered by an employees’ rebellion. “She was too tough a grader,” he said. Such will be the tensions on display in Texas, and later, in commercial theaters, when Zeitgeist Films releases Something Ventured. No release date is set. Holland, raised in Virginia, became fascinated with the venture crowd when he was introduced to many of them in the early 1980s by his wife, Linda Yates, who was acquainted with the oldschool investors through her family. He later became a board member of the Western Association of Venture Capitalists, a connection that helped the ﬁlm.
• RUSSIA, FROM 1B
Kudrin agreed, noting that if prices hold Russia will be able to resume contributions to its sovereign wealth funds for the ﬁrst time since the summer of 2008, when the global recession began. One of those sovereign investment vehicles, the Reserve Fund, could reach $50 billion by the end of the year, Kudrin reported. Just a few months ago Russian ofﬁcials planning the 2011 budget had anticipated the fund would be depleted. “Good,” Putin responded to Kudrin’s account, nodding with satisfaction. “The upheavals taking place in a number of the oiland gas-producing countries now send a signal to investors to come to Russia,” Total’s chief executive, Christophe de Margerie, said in a meeting with President Dmitry A. Medvedev announcing the deal. Margerie said his company was committing about $4 billion to the venture. “Russia offers a much safer environment for investment,” he said. Oil experts say that because global production capacity for oil is still far larger
than world demand, the runup in prices is being fueled by fear more than by reality. The concern is that the violence in Libya could spread to other member states of the Organization for the Petroleum Exporting Countries, which are primarily Arab nations. Russia is not only outside OPEC, and thus free from the cartel’s production restraints, but also, with its formidable secret police apparatus and a population bulge among the elderly rather than the young, is seen as less vulnerable to an outbreak of social unrest. Russia has long jockeyed against Saudi Arabia, a member of OPEC, to be the world’s top oil-producing nation. Although the Saudis have more production capacity and vastly more reserves, Russia is pumping more oil. And if oil and natural gas are considered together, Russia is the largest energy-exporting nation. Which country is in ﬁrst place for oil at any given moment depends on how the Saudis wield their swing production capacity, the cushion of unused wells and pipelines the Saudis can turn on to tamp down global prices. As the biggest OPEC member,
Saudi Arabia is the cartel’s enforcer and enabler, with the power to inﬂuence global prices or to moderate global disruptions by how much of its production capacity it chooses to put to work. The British oil giant BP cited Russia’s relative stability compared with OPEC regions, when BP in January announced a $7.8 billion deal to invest in the state-owned Russian oil company Rosneft and jointly search for oil in the Arctic. Later that month, Exxon Mobil, the biggest U.S. oil company, signed a deal with Rosneft to explore offshore in the Black Sea. Unrest in North Africa is also strengthening Russia’s bargaining position with Europe on natural gas exports and pipeline politics — although Russian ofﬁcials have used delicate phrasing to make this point. Aleksei B. Miller, the chief executive of Gazprom, in a visit to European capitals late last month, suggested that Europeans reconsider their opposition to new Russian pipeline proposals, in light of the “external situation” in North Africa, a region that competes with Russia to export pipeline gas to Europe.
3/9/2011 3:45:00 AM
THE MIAMI HERALD
LVMH paves way for Bulgari’s growth
• CRUISE LINE
BY MICHAEL J. de la MERCED AND LIZ ALDERMAN New York Times Service
CARNIVAL CRUISE LINES
PRECAUTION: Carnival ships will replace Mazatlan with additional calls in Cabo San Lucas and Manzanillo in Mexico.
Carnival cancels calls to Mexican resort From Miami Herald Wire Services
Carnival has become the latest cruise ship operator to suspend stops in Mazatlan, citing violent incidents in the Paciﬁc coast resort city. Carnival Cruise Lines called the decision a precautionary measure, noting that “there have been no incidents involving cruise passengers.” “We are working closely with the Mexican government and local ofﬁcials to review their plans to improve security in all of the main tourist areas,” Carnival said. “Once we are comfortable with their plans and implementation, we expect to return to Mazatlan.” The Carnival Splendor and Carnival Spirit ships will replace Mazatlan with additional calls in Cabo San Lucas and Manzanillo, the statement said. • TECHNOLOGY MICROSOFT TO PAY NOKIA $1 BILLION IN ACCORD Microsoft will pay Nokia more than $1 billion to promote and develop Windows-based handsets as part of their smartphone software agreement, according to two people with knowledge of the terms. Nokia will pay Microsoft a fee for each copy of Windows used in its phones, costs that will be offset as Nokia curtails its own budget for software research and development, said one of the people, who declined to be identiﬁed because the ﬁnal contract hasn’t yet been signed. The agreement runs for more than ﬁve years, the people said. • ENERGY OPEC IN TALKS ON OIL OUTPUT, KUWAIT SAYS Kuwait’s oil minister said Tuesday that OPEC members are in informal talks about raising oil output, but have yet to make any decisions about adjusting supply. The 12-nation Organization of the Petroleum Exporting Countries has so far held its ofﬁcial output quotas unchanged, even as massive protests across the oil rich Middle East have pushed global oil prices to their highest levels since late 2008. An uprising in OPEC member Libya has stoked supply concerns and the producer bloc is facing increasing pressure to pump more oil into the market to ease prices. • ECONOMY GREECE RAISES $2.3 BILLION AFTER RATING CUT Greece raised ¤1.625 billion, or $2.28 billion, in an auction of treasury bills Tuesday, though the higher interest rate it has to pay revealed investor unease a day after the country’s credit rating was downgraded sharply. The sale, originally for ¤1.25 billion in 26-week bills, had a yield of 4.75 percent, up from the 4.64 percent interest rate for a similar auction on Feb. 8, the Public Debt Management Agency said. The auction was 3.59 times oversubscribed, compared with 4.59 times in February. CENTRAL BANKERS FOCUSED ON INFLATION The world’s leading central bankers say they are keeping a keen eye on inﬂation as global growth picks up, driven mainly by faced-paced markets in China, Brazil and India. European Central Bank chief Jean-Claude Trichet said Monday the bankers’ common aim is “to continue to anchor solidly inﬂation expectations.” He spoke Monday on behalf of central bankers that meet in Switzerland every other month and represent four-ﬁfths of the world’s economy. Trichet shocked markets last week by saying eurozone interest rates could be raised in April to keep inﬂation in check. • ROBBERY 83-YEAR-OLD WALMART GREETER CHARGED Police in Statesville, N.C., say an 83-year-old man who worked at a Walmart store as a greeter is in jail, charged with donning a disguise and robbing the store at gunpoint. George Plane Jr., of Mooresville, N.C., was charged with robbery with a dangerous weapon and discharging a ﬁrearm inside the city limits, police say. According to police, Plane was working Sunday evening in his job at the Walmart store. Sometime before 7 p.m., police say, Plane went out to his car. Minutes later, a man wearing a disguise returned to the store and allegedly pointed a gun at an employee, demanding money. Police say the gunman then ﬁred at least one shot into the air, escaped with money, got in his car, and drove off. • DOMINICAN REPUBLIC EXPORTS TO HAITI RISES 35 PERCENT SINCE QUAKE Ofﬁcials in the Dominican Republic say the nation’s exports to Haiti increased 35 percent last year due to the earthquake that hit the neighboring country. The Dominican Republic’s investment promotion agency says ofﬁcial business with Haiti reached $869.6 million in 2010. That was nearly $225 million more than in 2009. Agency spokesman Eddy Martinez said that new statistics show formal sales to Haiti represented nearly 16 percent of all Dominican exports in 2010. He says food exports shot up 94 percent and industrial exports, including construction equipment, increased 26 percent.
transaction, the Bulgari family will swap each of its shares for LVMH stock, valuing its holdings at ¤12.25 each, a 61 percent premium to Friday’s closing price. LVMH will also pay minority shareholders in Bulgari ¤12.25 in cash for each of their shares. The transaction will make the Bulgaris the second-largest group of family shareholders in LVMH, behind Arnault and his relatives. It will also elevate Trapani from the Italian company’s chief executive position to a new level, overseeing LVMH’s jewelry and watch businesses. Perhaps more important, the sale provides Bulgari with
a better platform for selling its million-dollar baubles in rapidly growing markets like China. The Italian company had never recovered from the global recession, a downturn that forced it to cut costs. Still, it posted a 15 percent increase in revenue last year, to ¤1 billion. “They realize they need stronger managerial skills to take advantage of long-term growth, and they see LVMH as the best partner to bring them to the next level,” Davide Vimercati, an analyst at the Italian bank UniCredit, said of the Bulgaris. The takeover, which will roughly double LVMH’s pres-
ence in the lucrative market for jewelry, is an important victory as the conglomerate battles with another hallowed name in high fashion, Hermes. The clan that controls the French handbag-maker has waged war with LVMH, arguing a sale would erase the company’s essential identity. By comparison, the Bulgaris saw LVMH as critical to helping their company thrive. “On the one hand, we get to keep our personality and independence,” Trapani of Bulgari said in a telephone interview. “On the other hand, we get to take advantage of their stronger organization.”
The Bulgari family’s long quest to ﬁgure out the future of its 127-year-old jewelry and watch business ended last Thursday at a dinner overlooking the Roman skyline. The leaders of the Bulgari clan — Paolo and Nicola Bulgari and their nephew Francesco Trapani — sat down with Bernard Arnault, the chairman and chief executive of LVMH Moet Hennessy Louis Vuitton, who had desired their company for years. The meeting was so important that Arnault, whose aggressive deal streak had stocked LVMH with 60 of the world’s most exclusive brands, even skipped part of Paris Fashion Week to attend. Convinced that the LVMH chief would safeguard Bulgari’s identity and culture, the three decided to sell. “You could feel that the vibes were very right,” Antonio Belloni, LVMH’s group managing director, who attended the dinner, said in a telephone interview. “It was by far the most decisive moment and crowned a mutual friendship between us.” By Monday, LVMH announced that it would buy the family’s stake in Bulgari — and set up an eventual takeover of the entire jeweler — for ¤4.3 billion, or $6 billion, including debt, in one of the biggest luxury deals in recent memory. It also raised the prospect of similar transactions, propelling shares in independent fashion houses like Burberry TONY CENICOLA/NEW YORK TIMES SERVICE of Britain higher. Under the terms of the LUXURIOUS: The revamped Bulgari store on Fifth Avenue in New York.
Sheen enters a new world of advertising BY JAKE COYLE
WEDNESDAY, MARCH 9, 2011
NEW YORK — It isn’t just “tiger blood” fueling Charlie Sheen’s tweeting: There’s a new world of social media advertising hidden behind his micro-blogging, too. Shortly before Warner Bros. Television announced Monday that it had ﬁred Sheen from the CBS hit sitcom Two and a Half Men, the actor tweeted that he wants to hire an intern to assist him. But the tweet also was a paid-for endorsement from the year-old website Internships.com, which claims to be the world’s largest internship marketplace. “I’m looking to hire a winning INTERN with TigerBlood,” read the message, with a link to the site. The job posting on Internships.com describes the position as a paid, eightweek job for the summer to “work closely with Charlie Sheen in leveraging his social network”. The partnership was arranged by startup ad.ly, which connects celebrities with advertisers for social media ads. Sheen ofﬁcially signed on with ad.ly after the Beverly Hills, Calif.-based company consulted with him to familiarize him with Twitter. Ad.ly earlier helped Sheen join Twitter and get his account immediately veriﬁed so that users could separate the real Sheen from the many copycat accounts. Sheen took
little more than a day to reach 1 million followers, a record. He had more than 2 million followers as of early Tuesday. All the attention has brought a huge amount of exposure to the business of social media advertising. Though companies have been working advertisements into Twitter and Facebook for more than two years, it’s a sometimes unnoticed practice. “A lot of people know about the business now,” says Ad.ly chief Arnie Gullov-Singh. “It’s a validation of the business that we’re building and the overall industry changes that we’re a part of.” Micro-endorsements can net a celebrity anywhere from $1,000 to the low ﬁve ﬁgures per tweet, with ad.ly’s top celebrities earning about $10,000 per tweet. Ad.ly and Internships.com declined to discuss the ﬁnancial arrangements of the deal with Sheen. Pricing is frequently structured on the number of clicks an advertiser gets via the ad, with $1 to $2 per click. Ad.ly’s roster of celebrities with whom it has worked includes Mariah Carey, Kim Kardashian, Chris Brown, 50 Cent, Paris Hilton and soccer star Cristiano Ronaldo. In the last year, it has placed 24,000 endorsements for 150 brands and raised more than $6 million in venture capital. Last year, ad.ly was behind a tweet sent by Snoop Dogg, sponsoring Toyota: “These
homies know the deal. Wonder if this swagger wagon can ﬁt 22’s? SPINNIN!” A staff of 22 includes several workers who specialize in writing such tweets in the voice of the respective celebrity. Gullov-Singh says he sees celebrities as “the driving force of social media”. “Brands want to get their arms around social media, and celebrities are social media,” Gullov-Singh says. “So that’s where we set off to connect the dots and create value.” Asked whether Internships.com had any reservations about partnering with Sheen, chief executive Robin Richards replied, “Charlie Sheen is an A-list actor for seven years in a row.” “We thought we could really highlight and help students and companies realize that this resource was available for them,” says Richards, who also is an ad.ly board member. There are several other start-ups with a similar focus, including Izea, Assetize and Magpie. But it’s also not only a specialized business, with many individuals and companies making arrangements without third parties. The Orlando, Fla.-based Izea, founded in 2006, put together a 12-day campaign for Microsoft with Sean “Diddy” Combs sending a Microsofttagged message once a day for a week on Facebook and
Twitter. It included giveaways, charity donations and an Xbox contest. “It’s got to be relevant to someone’s fans or someone’s followers,” says Dan Rua, chairman of Izea. “The driving effort is really: Make sure the conversation is relevant to the people involved. If you’re giving quality, relevant content that gets people excited, then you’re going to do all right.” Advertising in social media, though, has its risks. One of social media’s most popular characteristics is its seemingly unfettered access to celebrities. Though ads are required to be disclosed, any relationship becomes less personal once someone is hawking Toyotas. But at the same time, entertainers supply a wealth of content to their fans on social media for free. “There’s always a group of people that think everything should be free. That’s just naive,” Gullov-Singh says. “When we started ad.ly, our friends at Google looked at us scornfully and said, ‘How can you be polluting the stream?’ We said, ‘Dude, look in the mirror. Look at your company. Your entire business is based on putting ads on everything.’ ” Celebrities are creating content and have a right to “monetize it”, Gullov-Singh adds. “Otherwise,” he says, “why should they do it?”
Debit card fees prompt a push near deadline BY EDWARD WYATT
New York Times Service
WASHINGTON — It seemed a good idea last year, when the ﬁnancial crisis had turned banks into Public Enemy No. 1 and lawmakers were looking for ways to reward consumers still bitter about billion-dollar bailouts and executive bonuses. Without much warning or debate, the Senate passed an amendment directing the Federal Reserve to reduce the hidden “swipe fees” that banks collect from retailers each time a customer makes a purchase with a debit card. Merchants, who had complained that the $20.5 billion in annual fees were biting into their proﬁts, were elated. Banks were stunned. Their lobbyists tried to reverse the
move, but when the overhaul of the nation’s ﬁnancial regulation was passed by Congress last July, the debit card cut survived. Now, as the Fed faces a deadline in April to write the rules for the lower fees, banks and debit card companies are engaged in an all-out assault on Capitol Hill, enlisting a growing cadre of lawmakers and lobbyists to push for changes, delay or outright repeal. Banks contend the proposed cut in fees — to 12 cents per transaction from an average of 44 cents — will leave many of them unable to afford to issue debit cards to customers or will force them to raise other consumer banking charges to cover the costs. They also claim retailers will reap unfair proﬁts.
The lobbying has been intense over the last year with the card companies and banks hiring, among others, Sam Geduldig, a former advisor to Rep. John A. Boehner, R-Ohio, the House speaker, and Regina Mahony, formerly a senior advisor to Rep. Steny H. Hoyer, D-Md., according to OpenSecrets.org, which tracks lobbyists. Representatives of the retailers include the former Republican Sen. Don Nickles of Oklahoma, and Sheryl Cohen, a former chief of staff for Christopher J. Dodd of Connecticut, the Democratic senator who sponsored the ﬁnancial regulation bill and is now retired. This debate is but one area where the consequences — intended and not — of the
sprawling Dodd-Frank ﬁnancial regulation law are coming to light. In an interview with CNBC on Friday, Alan Greenspan, the former Fed chairman, predicted that portions of the law would have to be reversed. The law requires the Fed to limit debit fees to the “reasonable and proportional” cost of each transaction, and the Fed proposed a rule that did not yet include the cost of fraud protection. Banks encourage consumers to use debit cards by signing for their purchases, rather than entering a personal identiﬁcation number at the cash register. Card companies and banks earn higher fees on signature-debit transactions, but they also incur higher rates of fraud.
3/9/2011 2:42:21 AM
WEDNESDAY, MARCH 9, 2011
S&P 500 1,321.82
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IjeYaiH[YWf NYSE Vol. (in mil.) 4,312 Pvs. Volume 4,171 Advanced 2308 Declined 743 New Highs 148 New Lows 11
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%CHG. +1.03% +2.57% +0.94% +0.68% +0.73% +0.89% +1.15% +0.93% +1.53%
WK 0 0 0 0 0 0 0 0 0
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Interestrates TREASURIES 3-month T-bill 6-month T-bill
The yield on the 10-year Treasury note rose to 3.54 percent Tuesday. Changing yields affect interest rates on consumer loans. PRIME RATE YEST 3.25 PREV 3.25 WK AGO 3.25
1YR WK MO QTR AGO
10-year T-note 30-year T-bond
NET 1YR PVS CHG WK MO QTR AGO
Barclays LongT-BdIdx 4.35 Bond Buyer Muni Idx 5.68 Barclays USAggregate 3.08 Barclays US High Yield6.81 Moodys AAA Corp Idx 5.19 Barclays CompT-BdIdx 2.32 Barclays US Corp 4.03
FED FUNDS .00-.25 .00-.25 .00-.25
4.30 5.67 3.08 6.81 5.17 2.29 4.03
+0.05 +0.01 ... ... +0.02 +0.03 ...
0 0 0 1 0 0 0
COMMODITY CLOSE PVS. Unleaded Gas (gal) 2.95 3.01 Crude Oil (bbl) 105.02 105.44 Gold (oz) 1426.90 1434.10 Platinum (oz) 1802.60 1820.40 Silver (oz) 35.65 35.85 Coffee (lb) 2.87 2.81 Orange Juice (lb) 1.79 1.78 Sugar (lb) 0.31 0.30
Argent (Peso) .2485 Brazil (Real) .6042 Britain (Pound) 1.6160 Canada (Dollar) 1.0294 Chile (Peso) .002104 Colombia (Peso) .000526 Dominican Rep (Peso) .0266 Euro (Euro) 1.3903 Japan (Yen) .012098 Mexico (Peso) .083295 Uruguay (New Peso) .0515
+.0002 -.0003 -.0042 +.0016 -.000006 -.000003 -.0000 -.0065 -.000055 +.000287 -.0000
1 1 1 1 1 1 1
0 0 0 1 0 0 0
%CH. -1.90 -0.40 -0.50 -0.98 -0.56 +2.21 +0.56 +2.37
%CHG. +.08 -.05 -.26 +.16 -.29 -.57 -.00 -.47 -.45 +.34 -.00
4.40 5.29 3.41 8.85 5.29 2.33 4.52
%YTD +20.1 +14.9 +0.4 +1.7 +15.3 +19.4 +3.7 -4.4
.2534 -.0109 .5802 +.0445 1.5480 +.1088 .9648 +.0563 .002010 +.000138 .000553 -.000001 .0271 -.0009 1.2724 +.0270 .011908 +.001026 .076834 +.004350 .0481 +.0007
S&P 500 Frankfurt DAX London FTSE 100 Hong Kong Hang Seng Paris CAC-40 Tokyo Nikkei 225
1321.82 +11.69 7164.75 +2.82 5974.76 +0.98 23711.70 +398.51 4015.91 +25.50 10525.19 +20.17
+0.89% +0.04% +0.02% +1.71% +0.64% +0.19%
0 1 0 0 1 1
MO QTR 1 1 1 0 1 1
0 0 0 0 0 0
+5.10% +3.62% +1.27% +2.94% +5.55% +2.90%
IEKJ>7C;H?97%97D7:7 Buenos Aires Merval 3467.72 Mexico City Bolsa 36688.12 Sao Paolo Bovespa 68012.10 Toronto S&P/TSX 14012.97
... +84.82 ... -79.38
...% +0.23% ...% -0.56%
0 1 0 1
1 1 0 0
0 1 1 0
-1.59% -4.83% -1.87% +4.24%
ASIA Seoul Composite 1996.32 Singapore Straits Times 3103.84 Sydney All Ordinaries 4902.50 Taipei Taiex 8747.75 Shanghai Shanghai B 321.05
+16.05 +37.32 +6.60 +33.96 +0.26
+0.81% +1.22% +0.13% +0.39% +0.08%
0 0 1 0 0
1 1 1 1 0
0 1 0 0 0
-2.67% -2.70% +1.15% -2.50% +5.49%
12-MO NAV CHG %RTN NAME
American Funds AMCAPA m 19.72 +.14 +16.1 BalA m 18.53 +.10 +14.5 BondA m 12.15 -.02 +5.3 CapIncBuA m 50.98 +.18 +11.3 CapWldBdA m20.58 -.04 +5.6 CpWldGrIA m 36.77 +.19 +12.9 EurPacGrA m 42.56 +.13 +14.4 FnInvA m 38.61 +.20 +18.0 GrthAmA m 31.84 +.18 +15.3 HiIncA m 11.55 ... +15.7 IncAmerA m 17.21 +.07 +15.2 InvCoAmA m 29.19 +.25 +14.2 MutualA m 26.32 +.18 +15.6 NewPerspA m29.64 +.10 +16.5 NwWrldA m 53.92 +.20 +15.3 SmCpWldA m 39.18 +.24 +21.2 WAMutInvA m28.61 +.26 +17.5 Artio Global IntlEqIII 12.55 -.02 +10.3 Artisan Intl d 22.31 +.07 +13.1 MdCpVal 21.70 +.24 +21.9 BlackRock BasicValA m 27.26 +.28 +16.8 BasicValI 27.44 +.29 +17.2 GlbDynEqA m 12.99 +.05 +16.2 GlbDynEqI d 12.99 +.05 +16.5 GlobAlcA m 20.00 +.04 +12.6 GlobAlcC m 18.66 +.04 +11.7 GlobAlcI d 20.10 +.05 +12.9 Columbia AcornZ 31.27 +.31 +24.6 DFA EmMktValI 35.29 +.27 +18.4 IntSmCapI 18.00 -.03 +22.1 USLgValI x 21.73 +.16 +22.9 USSmValI 27.30 +.47 +27.6 Davis NYVentA m 35.53 +.21 +13.8 NYVentY 35.91 +.21 +14.1 Delaware Invest GrowOppA m 23.77 +.25 +45.5 Dimensional Investme IntlSCoI x 17.87 -.07 +26.5 Dodge & Cox Bal 73.76 +.51 +14.6 Income 13.35 -.01 +6.7 IntlStk 36.80 +.04 +16.6 Stock 114.50 +1.06 +16.6 Eaton Vance LrgCpValA m 18.80 +.18 +10.6 Fairholme Funds Fairhome d 35.56 +.53 +15.8 Fidelity AstMgr50 15.84 +.04 +14.3 Bal 18.89 +.07 +15.4 BlChGrow 47.36 +.24 +21.8 CapInc d 9.82 +.02 +19.6 Contra 70.58 +.21 +19.9 DiscEq 23.69 +.18 +11.9 DivGrow 29.98 +.21 +23.0 DivrIntl d 31.29 -.02 +15.5 EqInc 46.87 +.59 +18.4 FF2015 11.68 +.02 +13.4 FF2035 11.96 +.05 +17.4 FF2040 8.36 +.04 +17.7 Free2010 13.99 +.04 +13.2 Free2020 14.26 +.04 +15.0 Free2025 11.95 +.04 +16.2 Free2030 14.31 +.05 +16.5 GNMA 11.43 -.03 +5.1 GrowCo 87.72 +.53 +23.6 HiInc d 9.19 ... +15.1 IntlDisc d 33.87 -.01 +15.5 LowPriStk d 40.34 +.22 +20.2 Magellan 75.54 +.40 +16.4 MidCap d 30.12 +.31 +19.9 Puritan 18.64 +.08 +15.9 ShTmBond 8.46 -.01 +2.8 StratInc 11.19 ... +10.4 TotalBd 10.74 -.01 +7.1 USBdIdx 11.27 -.02 +4.5 Value 72.95 +.76 +22.6 Fidelity Advisor BalB m 15.42 +.05 +14.1 NewInsI 20.95 +.06 +19.2 Fidelity Spartan IntlIdxIn d 36.85 ... +14.2
12-MO NAV CHG %RTN NAME
USEqIndxAg 46.92 +.42 +18.4 USEqIndxI 46.92 +.42 +18.3 First Eagle GlbA m 47.72 +.11 +18.2 FrankTemp-Franklin CA TF A m 6.61 ... -.9 Fed TF A m 11.31 ... +.1 Income A m 2.25 ... +16.3 Income C m 2.27 ... +15.6 FrankTemp-Mutual Discov A m 30.31 +.19 +12.2 Discov Z 30.68 +.19 +12.5 Shares Z 21.82 +.14 +13.3 FrankTemp-Templeton GlBond A m 13.64 +.02 +8.9 GlBond C m 13.66 +.02 +8.4 GlBondAdv ... +9.2 Growth A m 18.84 +.08 +15.1 GMO QuVI 20.80 +.10 +9.6 Harbor Bond 12.20 ... +6.7 CapApInst 38.20 +.18 +15.4 IntlInstl d 62.75 +.11 +17.6 Hartford CapAprA m 35.59 +.32 +13.9 CpApHLSIA 44.26 +.38 +18.7 INVESCO CharterB m 16.41 +.12 +10.4 EqIncomeA m 9.02 +.06 +14.2 Ivy AssetStrA m 25.11 +.16 +14.1 AssetStrC m 24.38 +.16 +13.3 JPMorgan CoreBondSelect11.42 -.02 +5.8 HighYldSel d 8.36 ... +15.8 ShDurBndSel 10.96 -.01 +2.3 Janus OverseasJ d 51.76 +.61 +16.2 PerkinsMCVJ 23.62 +.18 +15.4 RMCrJ d 13.94 +.16 +20.9 John Hancock LifBa1 b 13.34 +.05 +14.7 LifGr1 b 13.34 +.08 +17.0 Lazard EmgMkEqtI d 20.89 +.11 +16.0 Longleaf Partners LongPart 30.69 +.20 +24.0 Loomis Sayles BondI 14.49 -.02 +12.6 BondR b 14.44 -.02 +12.3 Lord Abbett AffiliatA m 12.19 +.13 +16.2 Manning & Napier WrldOppA 9.06 ... +14.9 Masters’ Select SmallerCos d 13.80 +.12 +23.5 Oakmark EqIncI 28.66 +.06 +9.7 Intl I d 20.29 -.03 +19.6 Oppenheimer DevMktA m 35.24 +.25 +22.5 DevMktY 34.87 +.25 +22.9 GlobA m 63.97 +.34 +19.6 IntlBondA m 6.48 -.02 +6.4 PIMCO AllAssetI 12.33 +.01 +14.0 ComRlRStI 9.77 -.05 +32.5 HiYldIs 9.50 ... +14.1 LowDrIs 10.43 +.01 +4.3 RealRet 11.46 ... +8.1 TotRetA m 10.87 -.01 +6.7 TotRetAdm b 10.87 -.01 +6.9 TotRetC m 10.87 -.01 +6.0 TotRetIs 10.87 -.01 +7.2 TotRetrnD b 10.87 -.01 +6.9 TotlRetnP 10.87 -.01 +7.1 Permanent Portfolio 46.99 -.03 +19.8 Pioneer GlobHiYA m 10.83 ... +18.1 Schwab S&P500Sel d 20.64 +.19 +18.3 Scout Interntl d 33.52 +.04 +16.6 T Rowe Price BlChpGr 40.25 +.24 +21.0 CapApprec 21.23 +.12 +15.4
12-MO NAV CHG %RTN
EqIndex d 35.70 +.32 +18.1 EqtyInc 24.99 +.26 +18.0 GNMA 9.87 -.02 +4.7 GrowStk 33.63 +.16 +20.9 HiYield d 6.95 +.01 +15.7 IntlStk d 14.52 +.02 +15.7 MidCapVa 24.89 +.24 +18.1 MidCpGr 62.57 +.38 +29.9 NewHoriz 35.75 +.39 +34.8 NewIncome 9.44 -.01 +5.4 Rtmt2020 17.09 +.08 +16.7 Rtmt2030 18.07 +.10 +18.6 SmCpStk 36.53 +.46 +32.0 Value 24.95 +.25 +20.0 Templeton InFEqSeS 21.12 +.02 +15.2 Thornburg IntlValA m 29.11 ... +18.2 IntlValI d 29.76 -.01 +18.7 Vanguard 500Adml 122.18 +1.10 +18.4 500Inv 122.15 +1.10 +18.3 AssetA 25.43 +.16 +17.5 EmMktIAdm d39.37 +.27 +17.5 EnergyAdm d135.60 -1.29 +25.6 EnergyInv d 72.21 -.69 +25.5 Explr 77.92 +.89 +28.5 GNMA 10.69 -.03 +5.2 GNMAAdml 10.69 -.03 +5.4 HYCorAdml d 5.82 ... +13.9 HltCrAdml d 54.45 +.31 +9.7 HlthCare d 129.03 +.73 +9.7 ITGradeAd 9.90 -.01 +8.3 InfPrtAdm 25.88 +.01 +7.3 InfPrtI 10.54 ... +7.3 InflaPro 13.18 +.01 +7.3 InstIdxI 121.32 +1.10 +18.4 InstPlus 121.33 +1.10 +18.4 InstTStPl 30.13 +.29 +19.9 IntlGr d 19.73 +.02 +17.7 IntlStkIdxAdm d27.19+.05 NA IntlVal d 33.38 +.02 +12.6 LifeCon 16.72 +.05 +11.3 LifeGro 22.94 +.14 +17.0 LifeMod 20.16 +.09 +14.3 MidCpAdml 97.83 +.90 +26.0 MidCpIst 21.61 +.20 +26.1 MuInt 13.29 -.01 +1.2 MuIntAdml 13.29 -.01 +1.3 MuLtdAdml 10.99 ... +1.3 MuShtAdml 15.86 ... +.8 Prmcp d 68.84 +.43 +16.2 PrmcpAdml d 71.43 +.45 +16.3 STBondSgl 10.53 ... +2.9 STCor 10.78 ... +4.1 STGradeAd 10.78 ... +4.2 Star 19.66 +.06 +12.9 TgtRe2015 12.77 +.05 +13.1 TgtRe2020 22.81 +.11 +14.2 TgtRe2030 22.53 +.13 +16.2 TgtRe2035 13.65 +.08 +17.2 Tgtet2025 13.07 +.07 +15.2 TotBdAdml 10.52 -.02 +4.6 TotBdInst 10.52 -.02 +4.7 TotBdMkInv 10.52 -.02 +4.5 TotBdMkSig 10.52 -.02 +4.6 TotIntl d 16.26 +.03 +15.2 TotStIAdm 33.32 +.31 +19.9 TotStIIns 33.32 +.31 +19.8 TotStIdx 33.31 +.32 +19.7 WellsI 22.17 +.04 +11.1 WellsIAdm 53.72 +.09 +11.2 Welltn 32.30 +.15 +13.3 WelltnAdm 55.80 +.26 +13.4 WndsIIAdm 48.43 +.53 +14.4 Wndsr 14.35 +.15 +17.7 WndsrII 27.28 +.29 +14.3
3/9/2011 5:27:17 AM
THE MIAMI HERALD
WEDNESDAY, MARCH 9, 2011
NEW DIRECTIONS BY PATRICK HEALY AND KEVIN FLYNN
New York Times Service
NEW YORK — The producers of Broadway’s Spider-Man: Turn Off the Dark are negotiating with their director, Julie Taymor, for her to work with a newly expanded creative team to ﬁx the critically derided, $65 million musical or possibly leave the show, according to people who work on Spider-Man or have been briefed on the negotiations. The artistic direction ahead for Spider-Man — twice as expensive as any show in Broadway history
— involves more decisions than just Taymor’s future, according to these people, who spoke anonymously because the producers have insisted that no information be disclosed about the talks. The producers and Taymor and her co-creators, Bono and the Edge of U2, are also discussing how extensively to overhaul the script and music; how many outside consultants should be hired, and who; and when to open the show, which set a record at its Sunday matinee for the most preview performances ever, its 98th. (The previous record was
MARCUS YAM/NEW YORK TIMES SERVICE
TO BE OUSTED? Julie Taymor, left, director of Spider-Man: Turn Off the Dark, backstage with comedy legend Joan Rivers in New York.
set in 1969 by Jackie Mason’s A Teaspoon Every Four Hours.) Ken Sunshine, one of the spokesmen for the production, said in response to several questions on Monday night: “We are not commenting on speculation.” The opening night for Spider-Man has already been delayed ﬁve times; the current opening date, March 15, seems all but certain to fall, since as of Monday night theater critics had not been invited to review it (normally invitations are sent about two weeks before). The people who spoke about the negotiations all said that the producers now viewed a March 15 opening as unlikely. Many critics, in fact, already issued reviews after the previously scheduled opening night of Feb. 7; Ben Brantley, the chief theater critic of The New York Times, wrote that Spider-Man may “rank among the worst” musicals in history. For all the decisions to be made, the role of Taymor is the most freighted one. A Tony Award winner for the musical blockbuster The Lion King and regarded in some quarters as a visually creative genius, Taymor was recruited in 2002 as director by Bono and the Edge. The three have stuck together through the thrills of giving fresh life to the
SARA KRULWICH/NEW YORK TIMES SERVICE
‘SPIDER-MAN’ DIRECTOR JULIE TAYMOR MAY BE REPLACED
Spider-Man story in their dialogue-writing sessions, the near-bankruptcy of the show in 2009, and through the long preview period, which was marred by serious injuries to two actors during performances in December. The people who spoke about the negotiations said that, throughout Monday, they were not sure if Taymor would stay or go as director. One person briefed on the negotiations said that Bono, who has been away for much of the period during which the show has been in previews, has taken a direct role in the talks. What is certain, the people said, was that the producers see the potential for major changes to the musical — which they
In Paris, ovations where merited BY CATHY HORYN
New York Times Service
PARIS — It might have seemed stagey, bringing out the white-coated seamstresses and tailors of Dior’s ateliers to take the bow, but considering everything — the turmoil and publicity of the past week, but, above all, the high place that skilled hands have in French fashion — the gesture was sincere and was received with a cheering ovation. If there is a stranger episode in the history of fashion than the sudden fall of John Galliano, who faces charges of anti-Semitism, it is hard to think what that might be. But it was clearly the aim Friday of Dior and its chief executive, Sidney Toledano, to bring off the show, at the Musee Rodin, with professional tact and dignity. Beforehand, Toledano spoke from the runway in French, his ﬁrst public comment on the incident that has shaken the 64-year-old house. He said, “It has been deeply painful to see the Dior name associated with the disgraceful statements attributed to its designer, however brilliant he may be.” He called such statements intolerable and said that it was “our collective duty to never forget the Holocaust and its victims,” recalling, too, that Christian Dior’s sister had been sent to Buchenwald. There could be no segue to the business at hand, the
showing of tweeds and damsel chiffon, but to acknowledge the people who work behind the scenes at Dior, “the heart of the house,” he called them. With the street outside jammed with more than 300 spectators, holding cameras but curiously subdued, as if for a funeral, and extra police, U.S. retailers said Dior handled everything as well as could be expected. The clothes reﬂected the pattern of recent Galliano seasons — say, a gutsy suede coat or knitted jacket contrived to look careless and cool, with romantic fur, little checked shorts or knickers, and over-the-knee platform boots. The collection sketched a pretty view of autumn, in Bordeaux, olive and teal, with boucle knits, sugary organza dresses and a feverish light gray fur jacket that moved to and fro as the model walked. But the show also had, inevitably, that mechanical quality of a bad dream being enacted. It must have felt that way to the people backstage as well, so used to the energy of Galliano for some 15 years. Next week, Toledano will begin focusing on ﬁnding a new designer. One person mentioned, at least in the front row, is Alber Elbaz of Lanvin, a talent and a commercial success story. But Elbaz said backstage Friday: “I’m not going anywhere. I’m staying here.”
He added, trying to make a wallﬂower joke, “And, anyway, nobody has called.” Elbaz knows how to refresh a brand, the way a gardener snips-snips-snips, and things begin to grow again. His simple but powerful idea for fall was a three-piece wool ensemble along straight lines, in dark camel or gray, hemmed above the knee and shown with plain low-heeled shoes. One look consisted of a trim cape worn with a sleeveless smooth-ﬁtting jacket and skirt. He ﬁlled out the starkly feminine silhouette with a black wide-brimmed hat. It’s a different look than we’ve seen from anyone this season, and from Lanvin. And isn’t that the point? Lapels were trimmed in thin gold metal, and there were chunky metal rose cuffs and coiled rose necklaces, a motif repeated in blown-out silk prints. The collection had a brisk youthfulness, with a blast of rose-red gazar for evening and off-the-shoulder looks in wool or washed faille that were essentially sexy T-shirts. Roland Mouret also had a good show Friday, with a lot of polished sportswear. Among the best looks were an olive wool blouson with a slim black stretch crepe skirt with a slit front, wide indigo trousers, and a lovely violet halter-neck blouse with grayﬂecked cuffed trousers.
hope to mount for years in productions around the world — and that Taymor either needed to accept help in making those changes or face a different outcome, potentially her exit from the show. The names of multiple directors, choreographers and playwrights have been ricocheting around the Broadway community for days now; it was not clear on Monday who would be hired. By turns frustrated and determined, exhausted and engaged, Taymor has also alternated between acknowledging that the production has serious artistic ﬂaws and insisting that she have more of a chance to improve it, the people who spoke in interviews said. Taymor, in one of her
few public comments about Spider-Man since her last stretch of interviews in mid-January, said in a speech on Wednesday that she felt “in the crucible and the ﬁre of transformation” with Spider-Man. Addressing more than 1,000 people at the TED 2011 conference in California, Taymor indicated that she planned to continue working on the show, describing the creative process as a “trial by ﬁre” for herself and her company. She did not suggest that she might depart the production. Of Spider-Man, she said in her speech, “Anyone who creates knows — when it’s not quite there. Where it hasn’t quite become the phoenix or the burnt char. And I am right there.”
From the Miami Herald International’s London Bureau Chief comes
IQ: How Psychology Hijacked Intelligence
Out in Paperback, from Duckworth Press
‘Zestily polemical’ Guardian ‘Engaging and lively…a page-turner’ Independent ‘Well-informed…consistently interesting…powerful’ John Carey, Sunday Times Should you wish to order a copy at the promotional rate, please contact firstname.lastname@example.org www.stephenmurdoch.com
3/9/2011 2:52:26 AM
WEDNESDAY, MARCH 9, 2011
THE MIAMI HERALD
BY JIM DAVIS
For more comics & puzzles, go to www.MiamiHerald.com/comics.
ACES ON BRIDGE
Opening lead — ♥ six
NORTH ♠J4 ♥ 10 8 3 ◆ A J 10 9 8 ♣J65
BY SCOTT ADAMS
Every so often a play comes up that you see only in books. Cover up the EastWest hands and we’ll find out what you’ve been reading WEST EAST ♠K95 ♠ 10 8 7 3 these days. In three no-trump on a ♥A976542 ♥J ◆— ◆ K 7 6 5 4 3 heart lead, you play low from dummy and capture East’s ♣KQ7 ♣ 10 2 jack. At trick two you run the diamond queen, West SOUTH discarding a low spade and ♠AQ62 East ducking. How do you ♥KQ continue? ◆Q2 With no dummy entry ♣A9843 to the diamonds and all the missing black-suit honors Vulnerable: East-West marked with West, it looks Dealer: West bad. But there is a way out: Play a second diamond to the The bidding: ace, then a third diamond, South West North East discarding your last heart! 1♥ Pass Pass What you have done is creatDbl. 2♥ 3◆ Pass ed a heart stopper in dummy. 3 NT
If the opponents want to play hearts, dummy is going to take a trick in the suit. In practice East won the diamond king and shifted to a club ducked to West’s queen. West didn’t have much choice, so he did his best by playing the ace and a heart, putting dummy on play. Dummy’s two remaining diamonds were cashed, and now everyone was down to four cards. Dummy had the jackdoubleton of both black suits; West, the guarded king of both black suits; and South, the ace-doubleton in clubs and the A-Q of spades. South now played the ace and a second club, giving up a trick to West’s king, but took his eighth and ninth tricks with the A-Q of spades. So, did you prove yourself to be a bookworm? —BOBBY WOLFF
CHESS QUIZ ZITS
BY JIM BORGMAN AND JERRY SCOTT
BY CHARLES SCHULZ
WHITE WINS THE QUEEN Hint: Get the queen cheaply. Solution: 1. Be3ch! (not Rxb5ch) Kc6 2. Rc3ch Kd7 3. Rxb5 [Svetushkin-Landa ’11].
BY HECTOR CANTU AND CARLOS CASTELLANOS
BY GARRY TRUDEAU
BY RICK KIRKMAN AND JERRY SCOTT
Dear Abby: I am a 50-year-old gay man. On New Year’s Eve, there was a block party on the street I live on. My neighbors, “Tim” and “Marie,” are a good-looking 30-ish couple. I was watching the fireworks when Marie sat down next to me and said, “Tim and I would like to get to know you better. How about we drop by for drinks some night after we put the kids to bed?” She said this while stroking my upper thigh with her hand. I find the idea of being intimate with her husband appealing, but I have never “been with” a woman and I don’t think I want to be. It seems to me the most prudent approach would be to pass on this opportunity, but how do I do it without offending or causing embarrassment for one of my neighbors? Caught in the Fireworks, Houston Does this neighbor know your sexual orientation? If the answer is no, just thank her and tell her you’re not into threesomes. Because it has taken you so long to give her an answer, she probably won’t be surprised that a liaison is not your cup of tea. However, if she does know, tell her with a wink: “Thanks for the offer — I’m not into threesomes. But you can send Tim over anytime.”
you will have more experiences you can discuss. Also schedule some diversions you can enjoy together that don’t involve conversation. How about a movie or a play, or a volunteer activity you can both be involved in? If this doesn’t help, then consider counseling. Dear Abby: I don’t understand why people need others to take sides in an argument. If someone is upset and wants to cut someone out of his/her life, why does that person expect family and friends to do the same — even if the disagreement had nothing to do with them? Some of them lie to force the issue. I just don’t understand — especially because we’re talking about adults. Puzzled in Coon Rapids, Minn. They do it to punish (and isolate) the person they’re mad at. However, if you make plain to the manipulator — because that’s what the person is — that you will not be dragged into the middle of something that’s not your business, you’ll be better off. P.S. What makes you think that all adults ACT like adults? Surely I’m not the only person who has seen a grown-up behave like a 5-year-old.
Dear Abby: After 30 years of marriage, my husband is more interested in watching politics on TV than interacting with me. We are, by mutual consent, no longer intimate — but he totally ignores me. He will talk to anyone who looks his way, but he doesn’t talk to me. His idea of doing something together is driving around the countryside for four hours looking at the scenery. He’ll lie on the couch and watch TV or read while I’m a few feet away and not say more than a dozen words to me all day. I can’t do this much longer. What do you suggest? Neglected Wife in Greenville, S.C.
ANSWER TO TUESDAY’S PUZZLE:
Perhaps you should spend less time with your husband. Couples who spend a lot of time together can find conversation difficult because they have nothing fresh to bring to it. Do some things with female friends so you won’t feel so shut in and isolated. This way
HOROSCOPE IF TODAY IS YOUR BIRTHDAY: Because you only tend to see what you want to see, someone could sell you the Brooklyn Bridge this month. Don’t make any commitments of your heart, money or time until early April. • PISCES (Feb. 19-March 20): Family time is quality time. Enjoy harmony and bliss your experience with loved ones today. • ARIES (March 21-April 19): Don’t let your love life become just another daily routine. Keep the sparks burning or they may flicker out.
• TAURUS (April 20-May 20): Keep the home fires burning. Set aside some extra time to spend with your loved ones. • GEMINI (May 21-June 20): Know your enemy. If you find yourself with the wrong crowd, you could be in for a confrontation. • CANCER (June 21-July 22): Keep apprised of the goings-on in your household — and if there are problems, take the time to discuss them and search for solutions. • LEO (July 23-Aug. 22): Weave a tapestry of romance. You and a loved one are in perfect sync and able to achieve cosmic bliss. • VIRGO (Aug. 23-Sept. 22): Plot the next move. Going the extra mile at work on your own initiative is likely to earn you raves. • LIBRA (Sept. 23-Oct. 22): Give peace a chance. Avoid confrontation at all costs, even if it means making a personal sacrifice. • SCORPIO (Oct. 23-Nov. 21): Don’t let the pressure get to you, especially if the pressure is only in your head. • SAGITTARIUS (Nov. 22-Dec. 21): Roll with the punches. Don’t let the little things bother you. • CAPRICORN (Dec. 22-Jan. 19): Check the books. It is likely that you have made an error — but, surprisingly, the error works in your favor. • AQUARIUS (Jan. 20-Feb. 18): The lightbulb can’t choose what type of moths it attracts. Nor can you choose which companions will be drawn to your charms.
CROSSWORD ACROSS 55 Vessel with two 1 Dr. Salk’s conquest tiers of oars 6 Country that hosted the 57 Held a conference 2008 Summer Olympics 58 Singer DiFranco 11 Skimming target 59 “Lemon” attachment 14 Rigel’s constellation 60 Pea-sized machine part 15 Payroll augmenter 64 Salt source 16 Rock salt may 65 Willow twig be used on it 66 Spirit in a bottle 17 American purchase 67 Performer yukking it up 19 That vessel 68 Tattooed lady of song 20 Years and years 69 Title in Turkey (Var.) and years 21 Soccer shutout score DOWN 22 Was a gossip 1 John, Paul and 24 Barbecue shack snack John Paul 27 “I think we should!” 2 Lowermost ship deck 28 Verb ending? 3 Tropical vine 29 Type of professor 4 Tiny charged particle 33 Old battle clubs 5 Zen goal 36 Airport guesses, briefly 6 Cook-off dish 37 Santa ___, Calif. 7 Sot’s involuntary sound 38 Hubbub 8 Rattle one’s cage 39 White-flowered iris 9 Unnecessary 40 Give some gas 10 More Bohemian 41 Some toothpastes or 11 Exaggerated account shaving creams 12 Word with “head” 43 Six-stringed fiddle or “heart” 44 Orange ghost 13 ___ off (miffed) in Pac-Man 18 Item in a car trunk 46 Needy 23 Work a wok 48 Pond carp 25 Agile deer 26 Promise in marriage 49 Ruler of old 30 Drop in a letter box 50 Fox chaser
31 32 33 34 35 36
Type of car Use a piggy bank Wise trio Arabian Peninsula port Skin cleanser ___ Brockovich (Julia Roberts title role) 39 Scrambled alternative 42 Small, medium or large
44 Cozy home 45 Sue Grafton’s “___ For Lawless” 47 Tiptoe through the tulips 48 Midleg point 51 Blackest part of a shadow 52 Stephen King’s state
53 54 55 56
Sharpshooter Oakley Neighbor of Libya Strike a crushing blow “Hey, what’s the big ___?” 61 Hamper part 62 Necklace given upon deplaning 63 Type of sleep cycle
3/8/2011 9:17:55 PM
THE MIAMI HERALD
Mets’ sponsor considers stake in team • METS, FROM 8B
his company has its headquarters in Westbury, on Long Island, less than 20 miles from Citi Field. He has often marketed the company by starring in his own commercials. With his company showing a net loss of $4.2 million in the ﬁscal year that ended in June on revenue of $668 million, it is unclear how much McCann might be willing to contribute to a potential bid by his investment group. Joseph Pititto, a spokesman for the company, would not conﬁrm McCann’s interest in the Mets. “The only thing I can tell you is he’s a very close friend of Fred and Jeff Wilpon’s and knows them very well,” Pititto said, adding that McCann “has a strong afﬁnity for the Mets.”
WEDNESDAY, MARCH 9, 2011
Shakhtar Donetsk reaches quarters • SOCCER, FROM 8B
Champions League with eight goals this season. “We lost against a very good Barcelona side,” Wenger said. “But we have many regrets tonight because we didn’t expect to lose the game like that.” Barcelona had 68 percent possession and completed 738 passes to Arsenal’s 199. But the Gunners had one late chance. With Arsenal needing only to score once to tie the aggregate and win on the away-goals rule, substitute Nicklas Bendtner’s late run on goal was thwarted by Javier Mascherano’s tackle as the Gunners were eliminated from the Champions League by Barcelona for the second straight season. “Wenger told me to congratulate the referee,” Barcelona coach Pep Guardiola said. In the night’s other game, Ukraine’s Shakhtar Donetsk beat visiting Roma 3-0 and advanced on 6-2 aggregate to reach the quarterﬁnals for the ﬁrst time. Tomas Huebschmann scored in the 18th, Willian in the 58th and Eduardo da Silva in the 87th. Shakhtar has not lost at home in more than two years. Roma defender Philippe
FURIOUS: Arsenal’s Robin van Persie, left, reacts after referee Massimo Busacca shows a red card. Mexes was ejected in the 40th for his second yellow card, for a foul on Luiz Adriano. It was the 10th red card of the Frenchman’s career. Willian’s curled shot in
the 58th and a neat ﬁnish from Eduardo in the 87th rounded off an impressive victory for Shakhtar. Trailing 1-0 on the night and 4-2 overall Roma
needed to take all of its opportunities. However, Roma missed a penalty in the 27th after Marco Borriello had been pulled down by Henrikh
Mkhitaryan as the ball was crossed from a corner. Borriello took the penalty himself but his shot was stopped by goalkeeper Andriy Pyatov’s dive to his left.
Star in the making in McEnroe’s academy Testimony by players • TENNIS, FROM 8B
which was created last year to develop tennis players in his unorthodox image. McEnroe believes that Florida’s live-in tennis academies have created an assembly-line sameness to young U.S. players and contributed to the country’s inability to produce big winners on the professional tours. In starting the academy, he envisioned talented boys and girls from not only the New York metropolitan area but also around the country and abroad coming with their families to “the most stimulating city in the world.” Here they would lead normal lives while learning to embrace their individuality and creativity in a sport that demands it at the very highest levels. Thus far, McEnroe’s academy has mainly attracted New York-area players. Even Ingrid Neel has a local connection. Her mother, Hildy, grew up on Long Island, a McEnroe fan, and trained for college tennis (at Long Island University) at the Port Washing-
ton Tennis Academy years after the young McEnroe’s time there. One of her instructors was Claude Okin, the managing partner of Sportime New York, which teamed with McEnroe to create a stay-athome urban alternative to Florida’s live-in academies. After reading about their initiative, Hildy Neel offered Okin Ingrid’s truncated biography: took up tennis at 6; progressed quickly to the point where she was too good for girls her age; is ranked ﬁrst in her section in the 18-and-under group; and recently created a stir in upper Midwest tennis circles by announcing she would compete this year against boys. “John was such the quintessential New Yorker and a tennis genius,” Hildy Neel said. “I thought that there was the potential that he and Ingrid would connect.” If being a natural iconoclast was not enough to make Ingrid the dream McEnroe student, there was also the disclosure that she had patterned her approach to the game after his. In an era of
CRICKET WORLD CUP 2011
• HEAT, FROM 8B
Ross Taylor smashes century as Kiwis win By The Associated Press
Ross Taylor smashed a career-best unbeaten 131 on his 27th birthday as New Zealand crushed Pakistan by 110 runs in a World Cup Group A match on Tuesday. Taylor hit seven towering sixes and eight fours in his 124-ball knock to propel New Zealand to 302-7. Fast bowler Shoaib Akhtar twice found the edge of Taylor’s bat — on 0 and 4 — but wicketkeeper Kamran Akmal stood still on the ﬁrst and a ball later the keeper ﬂoored a regulation catch. Pacemen Tim Southee (3-25) and Kyle Mills (2-43) rocked the top order and Pakistan was bowled out for 192 in 41.4 overs at the Pallekele International Cricket Ground near Kandy. New Zealand and Pakistan both have six points after four matches each.
STANDINGS GROUP A Mat 4 4 4 3 3 4 4
Won 3 3 2 2 1 1 0
Lost 1 1 1 0 2 3 4
Tied 0 0 0 0 0 0 0
N/R 0 0 1 1 0 0 0
Pts 6 6 5 5 2 2 0
Mat 3 4 3 3 3 3 3
Won 2 2 2 2 1 1 0
Lost 0 1 1 1 2 2 3
Tied 1 1 0 0 0 0 0
N/R 0 0 0 0 0 0 0
Pts 5 5 4 4 2 2 0
GROUP B Teams India England West Indies South Africa Ireland Bangladesh Netherlands
academy programs directed by Gilad Bloom, a former pro tour player from Israel. “It would be ironic if I coached a girl to be the best, or one of the best, whatever,” McEnroe said. Attracting sponsors (beyond Nike) to underwrite his academy has been a problem, but there has been no shortage of local parents willing to have McEnroe lecture their offspring about their ﬁrst step toward the ball. Last summer, McEnroe and his staff awarded full and part-time scholarships from a ﬁeld of several hundred players at an open tryout. One beneﬁciary, Sabrina Xiong of Queens, the 12-year-old daughter of Chinese immigrants, recently won a sectional tournament. Yet McEnroe knows that his academy will pose no threat to the brand names of tennis instruction — the IMG Bollettieri Tennis Academy in Bradenton, Fla., and the U.S. Tennis Association programs run by his brother Patrick — until it lands its share of talented players like Neel.
allowed in Bonds trial • BONDS, FROM 8B
ﬁrm and a former federal prosecutor who is not involved in the case, said it was logical for the defense to try to keep the athlete witnesses off the stand. “The fact that they were so intent at moving to strike that evidence shows that they know it’s a focal point of the government’s case,” Rosengart said. “It’s a very good strategy.” Last week, Ruby sent a letter to Illston that included excerpts from the grand jury testimony of six of the seven athletes on the government’s witness list, including Jason Giambi, Jeremy Giambi and Bonds’ former teammates Bobby Estalella and Benito Santiago. In the snippets of testimony, the athletes are asked about the substances they received from Anderson. They answer that Ander-
As Heat struggles, Pat Riley looms
• NEW ZEALAND V PAKISTAN
Teams New Zealand Pakistan Sri Lanka Australia Zimbabwe Canada Kenya
determined baseline slugging, Neel watched McEnroe on video and was fascinated by his knack for taking the ball on the rise, his attacking style and his contortionist’s ability to hit volleys and half-volleys of all angles. “I loved the way he played because my favorite part of tennis is coming to the net,” she said. “When I go to Florida and other places to play and I come in, a lot of my opponents don’t expect that because they never see it.” Hildy Neel said Ingrid — who, unlike McEnroe, is right-handed — was never instructed to move forward. “That’s what she would do when she was little — hit and move in,” Hildy Neel said. “She would always play in no man’s land, and her coach would never say, ‘Back off.’ That takes a certain attitude, and that’s what she and John seem to share.” After hitting it off with McEnroe, Ingrid had a recent encore visit, accompanied by her mother and her coach, Brian Christensen. Over several days, she participated in
should the Heat bomb in the playoffs. Contemporary history speaks to the value of a coach with his own stardust coating when it comes to maximizing the production of the most gifted and talented. Phil Jackson coaxed three titles from the contentious marriage of Shaquille O’Neal and Kobe Bryant in Los Angeles. After taking a critical beating for removing Van Gundy, Riley persuaded O’Neal to defer to the young Wade during the title run while some news media cheerleaders were still promoting the big man for most valuable player. After James’ lefty layup attempt over the spidery Joakim Noah nearly cracked the backboard and the Heat lost a 1-point game to Chicago on Sunday, he stood up and promised his teammates he would not continue failing them at the ﬁnish. Implicit in the vow was that he would continue getting the ball in those make-or-break moments. So who will notify him when the time comes (if not now) to try someone or something else with the game on the line? Who will tell him to go be the league’s richest decoy and crash the offensive boards? In his eight seasons, James has not had a coach with more clout
CLUELESS: LeBron James reacts after the loss to the Chicago Bulls. than him. A month into his time with the Heat, when the team stumbled out of the gate and Spoelstra reportedly scolded him for wasting time at practice with long trick shots, James “accidentally” bumped the coach on the way to the bench. He is perhaps the league’s best all-around player and the most physically imposing noncenter ever — and one of the most predictable stars to defend in a half-court set at the end of a game.
Approaching what could be the career midway point, James has not mastered a reliable midrange jumper, as Michael Jordan did on the ﬂy. He has not developed a go-to move in the post, as Magic Johnson did when he cultivated a version of Kareem Abdul-Jabbar’s sky hook. His options often are a long jump shot or a mad dash to the rim. Meanwhile, Bryant can beat single coverage anywhere on the offensive end. Boston’s Pierce turns defenders into marionettes with his head and shoulder feints. You could name a dozen NBA stars with more variety and whom you would rather see with the ball within countdown of the ﬁnal buzzer — including Wade and possibly even Bosh. It is one thing to talk about holstering one’s ego for the sake of the collective. Maybe James thought this would be easy because he assumed — correctly thus far — that the major sacriﬁces would be made by Wade. But if that must change, who has enough courtside juice on a nightly basis to help him grasp the axiomatic logic that everyone will eventually be better off when less of him becomes more? That would be Riley, the creator, who in most cases outranks the King.
son never speciﬁcally told them he was giving them steroids. Ruby said that the excerpts were consistent with the rest of those athletes’ testimonies. Santiago was asked, “Did he ever tell you that the things he was giving you were steroids or had steroidlike effects?” He answered no. He was then asked: “So, I’m sorry I have to ask, you injected those items into your body, but didn’t know exactly what they were. Is that correct?” He replied, “Believe it or not.” Still, Illston ruled that the government could use the athletes’ testimonies to try to prove that Bonds knew Anderson was giving him steroids and other p e rf o r m a n c e - e n h a n c i n g drugs.
NBA EASTERN CONFERENCE Atlantic x-Boston New York Philadelphia New Jersey Toronto
W 46 33 32 19 17
L 15 29 30 43 46
Pct .754 .532 .516 .306 .270
GB — 131/2 141/2 271/2 30
Southeast Miami Orlando Atlanta Charlotte Washington
W 43 40 37 26 16
L 20 24 26 37 46
Pct GB .683 — .625 31/2 .587 6 .413 17 .258 261/2
Central Chicago Indiana Milwaukee Detroit Cleveland
W 44 27 23 23 12
L 18 35 38 41 50
Pct GB .710 — .435 17 .377 201/2 .359 22 .194 32
WESTERN CONFERENCE Southwest San Antonio Dallas New Orleans Memphis Houston
W 51 46 37 36 33
L 12 17 29 29 32
Pct GB .810 — .730 5 .561 151/2 .554 16 .508 19
Northwest Oklahoma City Denver Portland Utah Minnesota
W 39 37 36 33 15
L 23 27 27 31 50
Pct GB .629 — .578 3 .571 31/2 .516 7 .231 251/2
Pacific L.A. Lakers Phoenix Golden State L.A. Clippers Sacramento
W 45 32 27 24 15
L 19 29 35 40 46
Pct GB .703 — .525 111/2 .435 17 .375 21 .246 281/2
x-clinched playoff spot MONDAY’S GAMES L.A. Clippers 92, Charlotte 87 Portland 89, Orlando 85 New York 131, Utah 109 Chicago 85, New Orleans 77 Memphis 107, Oklahoma City 101 Dallas 108, Minnesota 105 Houston 123, Sacramento 101
3/9/2011 5:36:40 AM
WEDNESDAY, MARCH 9, 2011
THE MIAMI HERALD
FOR LATE GAME SCORES, GO TO MIAMIHERALD.COM/SPORTS
MESSI MAGIC BARCA BEATS ARSENAL TO ENTER QUARTERS
JOSEP LAGO/AFP-GETTY IMAGES
DOUBLE DELIGHT: Barcelona’s Lionel Messi, top, scored twice against Arsenal during their Champions League round of 16 second leg match at Camp Nou stadium in Barcelona.
BARCELONA — (AP) — Lionel Messi scored twice and Barcelona took advantage of Robin Van Persie’s ejection to beat Arsenal 3-1 Tuesday night and reach the Champions League quarterﬁnals on 4-3 aggregate. Messi scored in the third minute of ﬁrst-half injury time when he was played clear into the area by Andres Iniesta, then ﬂicked up and over onrushing goalkeeper Manuel Almunia before volleying the ball into the net. Almunia had replaced injured
goalkeeper Wojciech Szczesny in the 19th minute. Despite being outshot 19-0 in the game, Arsenal tied the score 1-1 when Barcelona defender Sergio Busquets headed Samir Nasri’s corner kick into his own net in the 53rd. Van Persie received his second yellow card in the 56th, assessed by Swiss referee Massimo Busacca for time wasting. The Dutch forward motioned that he shot because he didn’t hear the whistle due to noise from the crowd
of 95,486 in Europe’s largest stadium. “One-second — it’s a joke,” Van Persie said of the time between the whistle and his shot. “He’s been bad all evening, whistling against us. I don’t know why he’s here tonight,” Van Persie said. “We feel betrayed a bit, when it was 1-1 it was all to play for and in my opinion this referee killed the game.” Xavi Hernandez tied the aggregate score 13 minutes later on a shot that deﬂected off an
Arsenal player, collecting the ball after David Villa guided Iniesta’s short pass onto his path. Messi, the two-time FIFA player of the year, converted a penalty kick in the 71st after Pedro Rodriguez was fouled by Laurent Koscielny. Busacca gave ﬁve yellow cards to the Gunners and none to the Blaugrana. Van Persie was given his ﬁrst yellow card in the 45th minute for knocking over Daniel Alves.
Arsenal manager Arsene Wenger thought the ejection changed the match. “I just spoke to UEFA people, and they are shocked as well,” Wenger said. “You promise a fantastic football match, but what for? How he did it, frankly, it’s embarrassing for the game.” Messi has 45 goals this season and a Barcelona-record 33 in European competition, two more than Rivaldo. He leads the • TURN TO SOCCER, 7B
Girl may embody McEnroe’s vision Judge allows testimony by players in Bonds’ trial
BY HARVEY ARATON
New York Times Service
NEW YORK — For John McEnroe, a man of impassioned and instantly expressed emotions, hitting with Ingrid Neel was almost a case of love at ﬁrst tennis stroke. To introduce herself, Ingrid drew him to the net with a deft drop volley. Then she dared to lob the great Johnny Mac, lofting the ball inches from the baseline. OK, McEnroe thought, so this is how you want to play with a fourtime U.S. Open and three-time Wimbledon champion? He retaliated with his own drop-shot winner, stepped toward the net, pointed at his audacious new adversary and gave her a look that said, “You cannot be serious!” But McEnroe could plainly see that yes, absolutely she was. “The way she played, the look in her eye, made me think that maybe it was the 2011 version of what I would look like now, only a girl,” he said. A 12-year-old girl with freckles, standing short of 5 feet and weighing less than 100 pounds. But McEnroe, now 52 and in the business of discovering and de-
BY JULIET MACUR
New York Times Service
YANA PASKOVA/NEW YORK TIMES SERVICE
BRIGHT PROSPECT: Ingrid Neel, 12, from Rochester, Minn., practicing at Sportime club on Randalls Island, N.Y. veloping future U.S. stars, was smitten. “I said, ‘OK, that girl is the real deal, someone I would like to work with,’ ” he said. This was last October, and
McEnroe was getting ahead of himself. Ingrid had come from Rochester, Minn., to his academy at the Sportime club on Randall’s Island, • TURN TO TENNIS, 7B
testify at the trial. Bonds is facing charges of knowingly lying to a federal grand jury in 2003 about his suspected use of steroids and other drugs that helped his performance. In a ruling ﬁled Monday, Illston wrote that the athlete witnesses would provide evidence that “is relevant to the question of guilt or innocence in this case.” Prosecutors say those witnesses will testify that Anderson gave them performance-enhancing drugs, told them how to use those drugs and explained the efﬁcacy of those substances. At the trial, the prosecutors plan to argue that Bonds, like Anderson’s other clients, was “not unwittingly duped into taking steroids”. Allen Ruby, Bonds’ lead lawyer, said he had “no reaction” to the ruling. Prosecutors did not return a phone call for comment. Mathew Rosengart, a partner at the Manatt, Phelps & Phillips law
Despite repeated efforts by Barry Bonds’ lawyers to bar the testimony of several current and former major league players in Bonds’ perjury trial this month, those athletes will be allowed to take the stand, a federal judge has ruled in San Francisco. Bonds’ defense team had asked Judge Susan Illston of U.S. District Court to reconsider her ruling to let the players testify about their connection to Greg Anderson, Bonds’ former trainer, at the trial, which begins March 21. Those lawyers said the jury was likely to apply “guilt by association” to Bonds when other athletes talk about their dealings with Anderson, who prosecutors say dealt performance-enhancing drugs to those ballplayers — and to Bonds. But on Monday Illston ruled — again — in the government’s favor, which becomes important because Anderson has refused to • TURN TO BONDS, 7B
Mets’ sponsor considering As Miami Heat struggles, Pat Riley looms bid to buy stake in team BY HARVEY ARATON
New York Times Service
BY PETER LATTMAN AND ALISON LEIGH COWAN New York Times Service
to see the Mets’ books and is awaiting approval in a week or so, the two people said. For now, the group is not seeking a controlling stake in the team and is positioning itself as a friendly investor. That is not surprising given McCann’s connections to the Mets and Fred Wilpon, who with Saul Katz owns the team. McCann’s company has for years sponsored the Kiss Cam promotion at Mets games. Mets fans have also received promotional discounts to buy ﬂowers through the company. McCann, 59, a former social worker, grew up in New York, and
The New York Mets are looking for buyers for at least 25 percent of the club, and at least one potential bidder may come bearing ﬂowers. James F. McCann, the founder and chairman of 1-800-Flowers. com, is a lead investor in a group seeking to buy a piece of the team, according to two people with knowledge of the group’s interest. McCann is teaming with, among others, Anthony Scaramucci, a managing partner at SkyBridge, an asset-management company. The group has submitted an application to Major League Baseball • TURN TO METS, 7B
To ﬁx the Miami Heat basketball team, somebody is going to have to ﬁgure out what exactly is wrong with it. Are the Heat’s mounting failings against quality opponents merely a matter of unrealistic expectations created by a summer of free-agent hysteria and grandiose muscle-ﬂexing that had more to do with celebrity culture than championship basketball? Was the union of LeBron James, Dwyane Wade and Chris Bosh an inherently ﬂawed project, conceived in the image of the Boston Celtics’ Big Three while ignorant of the evidence that Kevin Garnett, Paul Pierce and Ray Allen formed a far more complementary
trio? Is there something in James’ makeup — or more likely, his skill set — that in end-game situations reduces him to less than the sum of his wondrously athletic parts? The answer to what ails the Heat might well be found in all of the above but someone is going to have to break RILEY down the percentages and ﬁgure out the solutions. Like it or not, the most logical and credentialed candidate is El Presidente, Pat Riley. We are not suggesting that Riley immediately reprise the in-house coaching coup that unseated Stan Van Gundy much earlier in the
2005-06 season, leading to Miami’s ﬁrst and only NBA championship. Not yet, anyway. It is still premature to dismiss the Heat as a title contender in a season in which it has already been declared the second coming of the 1995-96, 72-victory Chicago Bulls (preseason), an overrated ﬂop (late November), a budding dynasty (late December) and recently a South Beach bully capable of kicking sand in the face of only NBA weaklings. By most accounts, Erik Spoelstra is a capable young coach who deserves to see this season through. But there will be a case to be made for Riley to again appoint himself coach — reluctantly or otherwise —
• TURN TO HEAT, 7B
3/9/2011 5:18:28 AM