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MONDAY, MARCH 14, 2011
108TH YEAR I ©2011 THE MIAMI HERALD
Japan fights to stop nuclear meltdown Quake death toll estimate soars BY MARTIN FACKLER AND MARK McDONALD New York Times Service
PHOTOS BY KYODO NEWS/AP
A woman sits on the rubble of her home in Ofunato, Iwate prefecture, northern Japan on Sunday. BY HIROKO TABUCHI AND MATTHEW L. WALD New York Times Service
reactor there, Japanese nuclear ofﬁcials said Sunday that operators at the plant had suffered a setback trying to bring the second reactor thought to be in partial meltdown there under control. The operators need to inject water to help cool the reactor and keep it from proceeding to a full meltdown, but a valve malfunctioned on Sunday, hampering their efforts for much of the day. Pressure at the reactor rose during the delay, leading to increased worries of an explosion. At a latenight press conference, ofﬁcials at Tokyo Electric Power, which runs the plant, said the valve had been ﬁxed, but said water levels had not yet begun rising. Until late Sunday, the government had declared an emergency at only two nuclear plants, Daiichi and the nearby Fukushima Daini. Then, the International Atomic Energy Agency announced that Japan had added a third to the list
TOKYO — Japanese ofﬁcials struggled on Sunday to contain a quickly escalating nuclear crisis in the aftermath of a devastating earthquake and tsunami, saying they presumed that partial meltdowns had occurred at two crippled reactors, and that they were bracing for a second explosion, even as problems were reported at two more nuclear plants. That brings the total number of troubled plants to four, including one that is about 75 miles north of Tokyo. The emergency at the hardest hit plant, Fukushima Daiichi Nuclear Power Station, appeared to be the worst involving a nuclear plant since the Chernobyl disaster 25 years ago, and at least 22 residents near the plant showed signs of radiation exposure, according to local ofﬁcials. The crisis at that plant, which is much further from • TURN TO MELTDOWN, 2A Tokyo, continued late Sunday. A day after an explosion at one n Assessing degree of radiation danger, 6A
Patients at the lobby of Red Cross Hospital in Ishinomaki.
Residents are evacuated from areas surrounding the Fukushima nuclear facilities and checked for radiation.
Gadhafi drives rebels from stronghold BY PAUL SCHEMM AND ZEINA KARAM Associated Press
ritory in the east. Gadhaﬁ’s forces seem emboldened by their string of victories but their supply lines are increasingly stretched and they depend on artillery, airstrikes and naval attacks that are more difﬁcult to launch at night. The rebels have been pleading for Western powers to protect them with a no-ﬂy zone, and on
Monday their leaders meet in Paris with U.S. Secretary of State Hilary Clinton, who plans to assess their capabilities and intentions. The Arab League asked the U.N. Security Council on Saturday to impose a no-ﬂy zone. But
BENGHAZI, Libya — Moammar Gadhaﬁ’s forces swept rebels from one of their ﬁnal strongholds with hours of searing waves of strikes from warships, tanks and warplanes on Sunday but the in• TURN TO LIBYA, 2A surgents claimed that they moved n U.S. could enforce a no-fly zone, 3A back in after nightfall. One rebel said that after their initial defeat, opposition forces destroyed armored vehicles and captured dozens of ﬁghters from Gadhaﬁ’s elite Khamis Brigade in the oil town of Brega, driving others back into the town’s airport. Another opposition ﬁghter told The Associated Press by telephone that celebrations had broken out in the nearby city of Ajdabiya, and celebratory gunﬁre, honking and shouting could be heard in the background. “We are on our way to Brega to celebrate with our brothers there,” he said. The opposition has seen a series of reversals in its battle for control of Libya’s main coastal GIANLUIGI GUERCIA/AFP-GETTY IMAGES highway, which runs from Gadhaﬁ’s western stronghold in the Libyan rebels man an anti-aircraft machine gun at the last capital, Tripoli, to rebel-held ter- rebel-held checkpoint of Brega on Sunday.
CUBA GIVES 15-YEAR PRISON TERM TO U.S. CONTRACTOR, 4A
MARYLAND HOUSE KILLS BILL TO LEGALIZE SAME-SEX MARRIAGE, 5A
CNN’S LATIN SISTER LOOKS TO GAIN A NEW MARKET, BUSINESS FRONT
SENDAI, Japan — Japan faced mounting humanitarian and nuclear emergencies Sunday as the death toll from Friday’s earthquake and tsunami climbed astronomically, partial meltdowns occurred at two crippled plants and cooling problems struck four more reactors. In one town alone, the port of Minamisanriku, a senior police ofﬁcial said the number of dead would “certainly be more than 10,000.” The overall number is also certain to climb as searchers began to reach coastal villages that essentially vanished under the ﬁrst muddy surge of the tsunami, which struck the nation’s northern Paciﬁc coast. Prime Minister Naoto Kan told a news conference late Sunday: “I think that the earthquake, tsunami and the situation at our nuclear reactors makes up the worst crisis in the 65 years since the war. If the nation works together, we will overcome.” The government ordered 100,000 troops into relief roles in the ﬁeld — nearly half the country’s active military force and the largest mobilization in postwar Japan. An U.S. naval strike group led by the nuclear-powered aircraft carrier Ronald Reagan also arrived off Japan on Sunday to help with refueling, supply and rescue duties. Amid the despair and mourning, amid the worry over an unrelenting series of strong aftershocks, there was one bright moment on Sunday morning as Japanese naval forces rescued a 60-year-old man who had been riding the roof of his house for the past two days. Hiromitsu Arakawa’s tiny home in the town of Minami-soma was torn from its foundations by the ﬁrst wave of the tsunami that crashed ashore Friday afternoon, the defense ministry said. Arakawa saw his wife slip away in the deluge, and he clung to the roof as • TURN TO JAPAN, 2A
For partisans, disguise is a part of journalism BY JEREMY W. PETERS New York Times Service
chief executive, Vivian Schiller. So far, politicians have been quick to celebrate the ends even as they tiptoe around the question of whether the means are appropriate. Sen. Jim DeMint, R-S.C., has limited his comments to calling for an end to federal ﬁnancing for NPR. Rep. Eric Cantor of Virginia, the Republican majority leader, issued a statement saying, “This video clearly highlights the fact that public broadcasting doesn’t need taxpayer funding to thrive.” Rep. Doug Lamborn, R-Colo., also cited the O’Keefe video speciﬁcally in talking to The Daily Caller about cutting funding for public broadcasting. “Their arrogance and condescension,” he said, is “just amazing”. None of the three mentioned O’Keefe by name. When asked about O’Keefe’s tactics, a spokeswoman for Cantor was circumspect: “Congressman Cantor has been working to ﬁnd ways to
The reporter in disguise has largely faded from mainstream U.S. journalism. But the tactic is alive and well in the hands of passionate partisans. As their pursuit of the “gotcha” moment has become part of the cost of life in the public eye, one question is how willing politicians will be to advance their agendas on the backs of these muckrakers 2.0. In just the past month, surreptitiously recorded conversations have embarrassed National Public Radio and Planned Parenthood, organizations long under assault from conservatives, as well as Gov. Scott Walker of Wisconsin, a Republican and target of the political left for his anti-union stance. The latest incident came this week, when the conservative provocateur James O’Keefe released a video that included an NPR fundraiser who makes disparaging remarks about the Tea Party. This led to the resignation of the radio network’s • TURN TO DISGUISE, 2A
NFL SHUTDOWN PUSHES FIGHT INTO COURTROOM, SPORTS FRONT
INDEX NEWS EXTRA...............3A WORLD NEWS.............6A OPINION........................7A COMICS & PUZZLES...6B
3/14/2011 4:59:32 AM
BUSINESS & SPORTS B BUSINESS&SPORTS MONDAY, MARCH 14, 2011
Crisis over, but where’s the fix?
Japan’s nuclear crisis stirs wider concerns
BY FLOYD NORRIS New York Times Service
hen the ﬁnancial system began to crumble more than three years ago, the world rushed to rescue it. Country after country went deeply into debt to keep banks aﬂoat and prevent a deep recession from turning into something worse. It worked. This week was the second anniversary of the nadir of the crisis. Most stock markets around the world are at least 75 percent higher than they were then. Financial stocks, which led the markets down, have also led them up. At the time, rescuing seemed more important than reforming. The world economy was breaking down because of a lack of ﬁnancing. Trade ﬂows collapsed, and companies and individuals stopped spending. It seemed clear that halting the slide was critical. But the world has changed since then. The economic recovery in most developed countries is stuttering at best, and governments are struggling with their own ﬁnances. It is time for remorse and second-guessing. A surprising citadel of that second-guessing is at the International Monetary Fund, where researchers this week concluded that the rescues “only treated the symptoms of the global ﬁnancial meltdown.” The researchers, Stijn Claessensand Ceyla Pazarbasioglu, warned that “a rare opportunity is being thrown away to tackle the underlying causes. Without restructuring ﬁnancial institutions’ balance sheets and their operations, as well as their assets — loans to over-indebted households and enterprises — the economic recovery will suffer, and the seeds will be sown for the next crisis.” There have been reforms, of course. The Dodd-Frank law in the United States is now being put into effect, albeit by regulators that the new Republican majority in the House of Representatives seems determined to starve of resources to do the job. Banking regulators around the globe have agreed that much more capital is needed by banks, but stricter requirements are coming very slowly out of fear that abrupt changes will reduce bank lending when it is needed the most. More capital is clearly needed, but it may not be nearly enough. “If we ask them for more capital, and they are
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New York Times News Service
and the network’s new strategy, whose rollout began on Nov. 22 and will continue throughout the spring, is aimed at redressing that imbalance. “This is probably the most signiﬁcant makeover and push in the channel’s history, and there obviously has been a lot of strategic planning involved,” said Alan B. Albarran, director of the Center for Spanish Language Media at the University of North Texas, outside Dallas. “And it’s smart of them to approach it as a longterm project, because there’s no way this can happen overnight.” CNN en Espanol has long operated bureaus in Mexico City and Buenos Aires and had correspondents in nearly every Latin American capital, as well as in global ﬂashpoints like Jerusalem. Now the network is beeﬁng up its Los Angeles and New York bureaus, and it recently opened the studio in Miami, which contributes three hours of live programming daily and provides experts and commentators for shows that originate from Atlanta. “Part of what these bureaus have done is to inject more
The explosion and radiation leaks at an earthquake-damaged nuclear plant in northern Japan will raise fresh questions about the country’s ambitious plans to develop nuclear energy, despite its troubled history there and years of grassroots objections from a people uniquely sensitive to the ravages of nuclear destruction. The damage to the Fukushima Daiichi Nuclear Power Station in Japan could also stir wider doubts in a world that, while long skeptical of nuclear energy’s safety, has increasingly accepted it as a source of clean energy in a time of mounting concerns about the environmental and public health toll of fossil fuels. In France, for example, green parties and environmental groups have called on an end to the dependence on nuclear power. A failure of the 40-year-old Fukushima plant’s cooling system apparently caused the explosion, which destroyed a structure surrounding the reactor. The reactor was unaffected, government ofﬁcials and the plant operator, Tokyo Electric Power, said. They described the resulting radiation leak as small and decreasing. Foreign experts have concurred with their assessment so far, although Japanese plant operators have minimized past accidents, wary of public reaction. James M. Acton of the Carnegie Endowment for International Peace said the accident had unquestionably dealt a blow to the nuclear industry. While Japan may close the Daiichi plant, one of its oldest, and point to the safety of its newer facilities, that may not satisfy public concerns in Japan and elsewhere, he said. Decades ago, after the Chernobyl and Three Mile Island accidents, Acton said,
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ERIK S. LESSER/NEW YORK TIMES SERVICE
The CNN en Espanol studio in Atlanta. The cable news giant has reconfigured its content to provide a better service to the growing Hispanic population in the United States.
LATIN MAKEOVER CNN EN ESPANOL LOOKS TO CAPTURE A BOOMING MARKET BY LARRY ROHTER New York Times Service
ATLANTA — New programs, new talent, new sets, a fancy new studio in Miami and a new logo featuring an outsize, stylized tilde. In an effort to broaden its appeal to Hispanic viewers in the United States, CNN en Espanol, the Spanish-language branch of the cable news giant, is undergoing a fundamental reconﬁguration of both its content and image. Gone is the repetitive traditional half-hour hard-news block that has been the Spanish network’s sustenance since it began broadcasting 14 years ago this week, replaced by informational, magazine-style shows meant to reinforce the new slogan “Live the news.” Three of those programs made their debuts last week: a business, investment and money-management show called CNN Dinero; a late-night wrapup called Conclusiones; and a live, three-hour morning show called Cafe CNN. “We started this network very much focused on Latin America, and that remains a priority market for us,” said Tony Maddox, executive vice president and managing director of CNN International.
But it’s also “clear that the Hispanic population of the United States is growing, and growing at a rapid rate, and that it is a market underserved by the kind of news service we can provide.” CNN en Espanol is available in 30 million homes “from Alaska to Patagonia,” as the network’s executives like to say. But fewer than 5 million of those households are in the United States,
RICHARD PATTERSON/NEW YORK TIMES SERVICE
From left, CNN en Espanol anchors Mariela Encarnacion, Ismael Cala and Mercedes Soler, in Miami.
When to buy or sell? Don’t trust your instincts BY PAUL SULLIVAN New York Times Service
Anyone watching television commercials could easily conclude that trading stocks is something a baby can do from a crib. But new research into 17 years of call records at a boutique investment advisor shows that the baby in all of us is likely to buy or sell at the worst possible time. Philip Z. Maymin, an assistant professor of ﬁnance and risk en-
gineering at Polytechnic Institute of New York University, studied comprehensive records kept by the investment ﬁrm Gerstein Fisher from the ﬁrm’s founding in 1993 to mid-2010. The ﬁrm has more than $1 billion in assets. Gregg S. Fisher, the ﬁrm’s president and chief investment ofﬁcer, said the database began out of practicality. “In the ﬁrst few months early in my career, I was using index cards to keep track of
clients,” Fisher said. “I decided that wouldn’t be scalable.” He gave Maymin access to every contact between clients and all the ﬁrm’s advisors, 1.5 million interactions by phone, e-mail or letter — or what the study calls “touches.” “It turns out we could do an awful lot by counting the sheer number of touches,” Maymin said. Nonessential communications, like mass e-mails and New Year’s greetings, were removed from the study, he said.
The study, which will be published in the spring edition of The Journal of Wealth Management, found that the value of investment advisers was not in the stocks or mutual funds they recommended but in their ability to restrain investors from aggressively trading at the wrong time. It cites data showing that aggressive orders by individuals can cost them about !TURN TO TRADING, 2B
U.S. initiates investigation into military family foreclosures BY DIANA B. HENRIQUES New York Times Service
The Justice Department is investigating allegations that a mortgage subsidiary of Morgan Stanley foreclosed on almost two dozen military families from 2006 to 2008 in violation of a longstanding law aimed at preventing such action. A department spokeswoman conﬁrmed Friday that the Morgan Stanley unit, Saxon Mortgage Services, is one of several mortgage and lending companies being investigated by its civil rights division. The inquiry is focused on possible violations of a federal law that bars lenders from foreclosing on active-duty service members without a court hearing. Mark Lake, a Morgan Stanley spokesman, declined Friday to comment on the investigation. However, in the ﬁne print of a recent regulatory ﬁling, Morgan Stanley disclosed that it was “responding to subpoenas and requests for information” from vari-
ous government and regulatory agencies concerning, among other issues, its “compliance with the Service members Civil Relief Act,” the law that governs the actions creditors can take against service members on active duty. The investigation came to light in a document that Saxon’s lawyers ﬁled Tuesday in federal court in Grand Rapids, Mich., during a trial to assess damages against Saxon and two co-defendants after a federal judge ruled late last year that they had illegally seized and sold the home of Sgt. James B. Hurley, a Michigan National Guard member who lost his home while he was serving in Iraq in 2005. That case was ultimately settled Thursday. In the document ﬁled Tuesday, one of Saxon’s lawyers characterized the investigation as “merely a preliminary investigation based on unproven allegations, for which no liability or wrongdoing has been found.” The ﬁling also suggested that
ERIK HOLLADAY/NEW YORK TIMES SERVICE
Sgt. James Hurley’s home was foreclosed while he was serving in Iraq in 2005. According to people present in Saxon was negotiating a settlement, but neither Morgan Stanley the courtroom, the discussions of nor the Justice Department would the Saxon ﬁling indicated that as many as 23 military foreclosures comment on any talks.
were under scrutiny in the Justice Department investigation. Under the civil relief act, a judge must hold a hearing at which the service member is represented before granting a lender the right to foreclose on the service member’s home, even in states where a court order is not required for civilian foreclosures. Hurley was one of the service members affected by a violation of the act. The case dragged on until late last year, when Judge Gordon J. Quist of U.S. District Court ruled that the foreclosure and sale of the Hurley home had violated the civil relief act and ordered a jury trial to determine damages. On Thursday, the ﬁfth day of that trial, Hurley settled with all the defendants in the case for an undisclosed sum, according to Col. John S. Odom, a retired Air Force lawyer who represented the Hurley family. The terms of the settlement are conﬁdential, Odom said.