четверг, 15 марта 2012 г.

Powell: Harvard scholar might have reacted quickly

Former Secretary of State Colin Powell was mildly critical Tuesday of Harvard professor Henry Louis Gates Jr., whose angry response to a Cambridge, Mass., police officer touched off a national debate involving President Barack Obama.

Powell, interviewed by CNN's Larry King, criticized the way Gates dealt with Sgt. James Crowley, a white officer who responded to reports of a possible break-in by arresting the black professor at his home on a charge of disorderly conduct. The charge was soon dropped.

Gates "might have waited a while, come outside, talked to the officer, and that might have been the end of it," said Powell, one of the nation's most prominent African …

Pittsburgh Scores with Penderecki

The Pittsburgh Symphony and its music director Lorin Maazelbrought a meaty program to Orchestra Hall Tuesday night.

Brahms First Symphony, occupying the second half of the program,was hardly a novelty. But it was deftly paired with KrzysztofPenderecki's Adagio (Symphony No. 4 for Large Orchestra, 1989). Thecraggy brilliance of Penderecki and the broad, heavy sweep of Brahmsshowed off the orchestra's impressive range.

The Penderecki-Pittsburgh match seems to be a happy one. Theorchestra has played the Adagio earlier this season on tour, and nextweek in Pittsburgh they give the world premiere of the revisededition of the composer's Fifth Symphony.

They were …

Duquesne falls to No. 17 Pittsburgh 80-69

PITTSBURGH (AP) — Duquesne guard T.J. McConnell said before Wednesday night's game against No. 17 Pittsburgh that if the Dukes couldn't rebound against the bigger Panthers, they couldn't win.

He was more right than he even he imagined.

Despite shooting 52 percent from the field and forcing 23 turnovers, the Dukes fell 80-69 to their crosstown rivals in the annual City Game by getting crushed on the glass.

The Panthers outrebounded Dukes 39-15, pulled down 16 offensive rebounds and scored 18 second-chance points to win their 11th straight in the series.

"If you told me before the game that we'd come in here and force 23 turnovers and shoot 52 percent, I'd be …

Video shows Blumenthal correctly stating service

In the same 2008 speech in which he misstated his military service, Connecticut Senate candidate Richard Blumenthal also correctly said that he "served in the military, during the Vietnam era."

Blumenthal has come under fire for a March 2008 speech at a ceremony in Norwalk.

A video clip from the speech posted by The New York Times shows Blumenthal saying he "served in Vietnam." But a longer version of the video posted by a Republican opponent also shows Blumenthal saying at the beginning of his speech that he "served in the military, during the Vietnam era."

The Democratic attorney general acknowledged on Tuesday that he …

среда, 14 марта 2012 г.

Is Daley Backing - or Elbowing - Hartigan?

He could be the next governor of Illinois.

But with his decision to run for the U.S. Senate in 1996, formerIllinois Attorney General Neil F. Hartigan is passing up his bestchance to win an office that he has wanted for more than 20 years.

Hartigan nearly won the Illinois governorship in 1990. And hewould have been Gov. Edgar's toughest opponent in a '94 rematch. ButHartigan didn't run. With Edgar not expected to seek a third term,Hartigan was a good bet for 1998. Illinois Secretary of State GeorgeH. Ryan is the probable Republican nominee for governor. Hartiganwould have a good chance of beating Ryan.

Why, then, is Mayor Daley's camp promoting Hartigan …

Public Sector ; The department implemented a Teradata data warehouse and associated business intelligence tools to track areas where it could boost its collection of taxes.

Company: State of Iowa Department of Revenue

Annual Return: 1,140%

Project: The department implemented a Teradata data warehouse and associated business intelligence tools to track areas where it could boost its collection of taxes. Prior to the data warehouse, Iowa relied on mainframes with hard-to-combine sources of data. The new system aggregates information from Iowa's 20 systems that handle taxes, human resources and …

Audit: Public shorted on terror prosecutions

Federal prosecutors have spent far less time pursuing terrorism suspects over the past five years than the American people paid for, a new Justice Department audit concludes.

The study released Monday says the government has increased prosecutors' time and other resources devoted to combating health care fraud and drug trafficking.

The audit, which raises questions about how prosecutors around the country allocate their time among top crime-fighting priorities, was issued by Justice Department Inspector General Glenn A. Fine.

It comes amid concerns that the FBI is too strapped by counterterrorism cases to fully investigate financial firms that …

W.Va.'s small businesses face a huge tax hit: ; The $87 billion health care tax will cut jobs and pay

ON any given day, a small business owner has a lot to deal with.Unemployment remains stubbornly high, energy prices areunpredictable, and health care costs are spiraling out of control.

Here in West Virginia, small businesses are the lifeline of thestate's productivity and hiring. In fact, they account for 53percent of private-sector jobs statewide, according to the U.S.Small Business Administration.

The last thing the small business owner, self-employer orentrepreneur needs is another cost.

Unfortunately, ensuring that every employee is covered under aquality health insurance plan without breaking the company's budgetis proving to be …

White House Rebuts Guard Shortage Claim

WASHINGTON - The Bush administration and Kansas' governor started Tuesday pointing fingers at each other over the response to last week's devastating tornado. By lunchtime, both sides had backed down.

With President Bush set to travel to now-razed Greensburg, Kan., on Wednesday to view the destruction wrought by Friday's 205 mph twister, Democratic Gov. Kathleen Sebelius said she planned to talk with him about her contention that National Guard deployments to Iraq hampered the disaster response.

"I don't think there is any question if you are missing trucks, Humvees and helicopters that the response is going to be slower," she said Monday. "The real victims here will be …

Volleyball scraps rule limiting foreign players

Volleyball's governing body abandoned a rule on Thursday that limited the number of foreign players on court during club matches in a move that could affect FIFA's plan for a similar rule in football.

FIVB had intended restricting teams to two overseas players of the six on court _ a so-called "4-plus-2" rule _ by the start of the 2010-11 season.

It shared the same principle as the "6-plus-5" rule promoted by FIFA president Sepp Blatter, which would force teams to start matches with at least six players eligible to play for the national team.

The rules have been promoted as a way to stop wealthy clubs stockpiling talent from …

Noriega got $10 million in drug bribes, court told

MIAMI Former Panamanian leader Manuel A. Noriega took $10 millionin bribes to protect at least 15 tons of U.S.-bound cocaineshipments, a former Panamanian ambassador said Wednesday in pleadingguilty to charges in the case.

Ricardo Bilonick, 44, served as ambassador at large in Washingtonunder Noriega's predecessor, Omar Torrijos, and had an interest inseveral Panamanian airlines.

But his most important role was serving as the representative ofColombia's Medellin cocaine cartel in Panama, Assistant U.S. AttorneyMyles Malman told a federal judge.

"Bilonick has deep, historic ties to the Medellin cartel," theprosecutor said. "Bilonick would act as a conduit …

Health fund launches panel to reassure donors

GENEVA (AP) — A global health fund besieged by criticism after finding its grant money was being used corruptly has turned to an ex-president of Botswana and a former high-ranking U.S. Republican to reassure its donors.

The Global Fund to Fight AIDS, Tuberculosis and Malaria announced Wednesday it has tapped former Botswana President Festus Mogae and ex-U.S. Health and Human Services Secretary Michael Leavitt to lead an outside panel that will examine its finances.

The United States has contributed more than $5 billion to the Geneva-based fund, France has contributed $2.4 billion, Britain almost $1.4 billion, and Japan, Germany and the European Commission have each given more …

Democrats Remind About Bush Iraq Speech

WASHINGTON - Democratic presidential candidates made a point of reminding voters that Tuesday was the fourth anniversary of President Bush's speech declaring an end to major combat in Iraq.

"One of the most shameful episodes in American history," Hillary Rodham Clinton's campaign Web site read in bold type below a photo of Bush standing on the aircraft carrier USS Abraham Lincoln in front of a sign that read "Mission Accomplished."

"Never before has a president pulled a political stunt when so many American lives were and remain in harm's way," the New York senator and former first lady said in a statement. She said the war "will stand as one of the darkest blots on leadership we've ever had in our nation's history."

Clinton and her rivals for the party's presidential nomination seized on the image to promote new leadership in Iraq.

All the Democratic candidates say the war must end and say they would redeploy troops out of Iraq if they were in the White House, while all the leading Republican candidates are backing Bush's troop increase to try to stabilize the country.

White House spokeswoman Dana Perino said the president was aware of the anniversary, although he didn't mention it during a meeting in Florida with military commanders. She said the president has since acknowledged mistakes in Iraq, but Tuesday was a day to thank the commanders for the successes and talk about his new strategy for the war.

Illinois Sen. Barack Obama said the anniversary is a day to grieve for the fallen soldiers and urge the president to bring troops home. Delaware Sen. Joe Biden said the speech is one of several reasons why the president has lost all credibility. Former North Carolina Sen. John Edwards said "photo ops" like the one four years ago couldn't hide Bush's disastrous mismanagement of the war.

Said Connecticut Sen. Chris Dodd: "The time has come for clarity and a new mission: To end the war in Iraq, to bring our troops home, and to begin restoring America's standing in the world."

While the Democratic presidential candidates were united for the day against Bush, Iraq has not been an easy issue for them. They have been pitted against each other over whether Congress should have ever approved the start of the war and over what to do now to stop his troop increase.

The Democratic-controlled Congress sent Bush legislation Tuesday that calls for troops to begin leaving Iraq by Oct. 1, but he quickly vetoed it.

Video posted on YouTube showed Biden telling a voter in South Carolina that Congress should "shove it down his throat." He issued a statement Tuesday calling for a 90-minute presidential candidate debate focused solely on Iraq.

Edwards and Dodd say Congress should cut funding for the war. But Obama and Clinton have not committed to pulling funding without a plan to draw down forces.

Edwards, Biden, Dodd and Clinton voted to authorize the war. All but Clinton have said they regret that vote - she has refused to say it was mistake. And Obama takes every opportunity to remind voters that he was opposed to the war from the start.

"Congress should not back down from this president at all on this issue," Edwards told reporters as Bush prepared to veto the bill calling for withdrawal. "The president is wrong. He's on the wrong course. The American people support what the Congress is doing. They believe that America needs to be withdrawing from Iraq and we should give no ground."

Athletics 4, Mariners 3

Seattle @ Oakland @
ab r h bi @ ab r h bi
ISuzuki rf 4 0 1 1 OCarer ss 4 1 2 1
YBtncr ss 4 1 2 0 KSuzuk c 3 1 1 0
Beltre 3b 4 1 2 0 Cust rf 4 0 1 0
MSwny dh 1 0 1 1 RSwny rf 0 0 0 0
GrffyJr ph-dh 3 0 0 0 Hollidy lf 2 0 1 1
Branyn 1b 3 0 1 1 Giambi dh 4 0 1 2
JoLopz 2b 4 0 0 0 Kenndy 2b 4 0 0 0
Balentn lf 4 0 0 0 Crosby 1b 4 0 2 0
RJhnsn c 4 1 1 0 RDavis cf 4 1 1 0
FGtrrz cf 3 0 1 0 Hannhn 3b 3 1 0 0
Totals @ 34 3 9 3 Totals @ 32 4 9 4
Seattle 200 000 100_3
Oakland 000 000 40x_4
DP_Seattle 1, Oakland 1. LOB_Seattle 6, Oakland 8. 2B_Beltre (11), M.Sweeney (6), Ro.Johnson (4). S_F.Gutierrez.
IP H R ER BB SO
Seattle
Washburn 6 6 0 0 1 4
Batista L,2-1 H,4 1-3 2 4 4 2 0
M.Lowe BS,3-3 1 2-3 1 0 0 1 0
Oakland
Braden W,4-5 7 9 3 3 1 1
Breslow H,3 2-3 0 0 0 0 0
S.Casilla H,5 1-3 0 0 0 0 0
A.Bailey S,2-4 1 0 0 0 0 2
Umpires_Home, Dana DeMuthFirst, Doug EddingsSecond, Hunter WendelstedtThird, Brian Knight.
T_2:27. A_10,371 (35,067).

вторник, 13 марта 2012 г.

MetLife Sells Stuyvesant Town for $5.4B

NEW YORK - MetLife said Tuesday it sold Peter Cooper Village/Stuyvesant Town for $5.4 billion, ending a high-stakes bidding war that included protests from residents who wanted to stop the middle-class apartment complex in Manhattan from falling into the hands of developers.

MetLife Inc., one of the nation's top insurers, sold the complex to Tishman Speyer in a joint venture with BlackRock Realty, the real estate arm of BlackRock, Inc. The sale is expected to close later this year.

The properties together make up the largest apartment complex in Manhattan, totaling over 11,000 units, spread over 80 acres.

The complex was built in the late 1940s as housing for returning World War II veterans, and the vast majority of the units are rent-stabilized, meaning the tenants pay below market value. Peter Cooper Village/Stuyvesant Town has been called the last bastion of middle-class housing in the super-charged real estate market of Manhattan.

"As a business with deep roots in New York City, we have a sincere appreciation for these cherished neighborhoods, and we are honored to become stewards of the property," said Tishman Speyer president and CEO Jerry I. Speyer. "We are committed to working closely with residents, elected officials and community leaders to help ensure a dynamic and vibrant future for this New York community."

Speyer said the residents of rent-stabilized apartments are completely protected by the existing system.

"No one should be concerned about a sudden or dramatic shift in this neighborhood's make-up, character or charm," he said.

City Councilman Daniel Garodnick, who lives in the complex, led the tenant-backed bid of $4.5 billion for the properties. He said the thousands of tenants will work to ensure that its homes remain middle-class, and fight attempts to convert rent-stabilized apartments into luxury, market-rate ones.

"We want to know precisely how they intend to preserve the long-term affordability of the community," Garodnick said.

Tishman Speyer is one of the largest real estate companies in New York City, and its signature properties include Manhattan's Rockefeller Center and the Chrysler Building.

MetLife said it expects an after-tax gain of approximately $3 billion from the deal.

The insurance company announced in July it was evaluating whether it wanted to sell the property, whose units extend from 14th Street to 23rd Street from First Avenue to Avenue C and the FDR Drive.

Thai Coup Leaders Tighten Controls

BANGKOK, Thailand - Thailand's new military rulers tightened their grip Thursday, restricting political activities, assuming legislative powers and detaining some allies of the deposed prime minister.

In announcements broadcast on all television stations, the military said it was banning all meetings by political parties and the creation of new parties. It said it was taking over the duties and responsibilities of parliament, which was dissolved when the coup leaders threw out the 1997 constitution.

The Thai ruling council has also imposed media restrictions, including stationing soldiers at television and radio stations, and ordering the information ministry to stop the distribution of information "deemed harmful" to its agenda.

The moves seemed likely to increase criticism from Western nations and human rights groups, which described Tuesday night's ouster of an elected but unpopular civilian government as a setback to democracy.

In a region where democracies are fragile in the best of times, the coup has also unleashed worries about nearby nations where political unrest is common. Political analysts said images of tanks rolling through Bangkok's streets sent an unfortunate message, but that the chances of a spillover effect appeared remote.

"At a time when many countries are struggling to consolidate their democracy, this is a bad example," and raises questions about stability in the region, said political analyst Dewi Fortuna Anwar of the Indonesian Institute of Sciences.

There was no challenge to the Thai military's authority from the ousted prime minister, Thaksin Shinawatra, who issued his first statement since the coup. The billionaire tycoon said from London that he planned to take a "deserved rest" from politics, and hoped to carry out "possible charitable work for Thailand."

The coup group empowered an auditor to investigate government corruption, which could lead to the confiscation of Thaksin's wealth. Analysts said that proving Thaksin's alleged corruption was necessary to legitimize the coup.

Pasuk Phongpaichit, one of Thailand's most respected political economists, alleged that corruption was "blatant" under the Thaksin government but said a coup was not the best way to handle it.

"A democratic country must have a constitution and adhere to the rule of law," she said. "If the prime minister has done something wrong, he must be tried and he should be judged."

Although Thaksin handily won three general elections, opponents accused him of emasculating democratic institutions, including packing the state Election Commission with cronies and stifling media that were once among Asia's freest.

Bottleneck traffic returned to the streets and Thais went back to work Thursday, with many in Bangkok describing the military takeover the most "friendly" coup this country has seen.

Aside from some soldiers on street corners and tanks at strategic points in and around the city, Thursday was like any other day in the congested Thai capital. Commuters crammed the subways, vendors lined shopping streets hawking handicrafts and grilled kebabs, shops were open and tourists were out.

"It feels like a normal day. Nothing is different," said Nuttawee Chotsawat, 25, who works at a 7-11 store in the downtown business district. "There's nothing to be scared of."

Many Thais appeared relieved at the resolution of political tensions festering since the beginning of the year, when street demonstrations demanding Thaksin step down started growing in size and vehemence. Thailand has had no working legislature and only a caretaker government since February, when Thaksin dissolved Parliament to hold new elections in an effort to reaffirm his mandate.

The coup leader, army commander Gen. Sondhi Boonyaratkalin, has said he would serve as de facto prime minister for two weeks and then the ruling military council will choose a civilian to replace him. A constitution is to be drawn up and elections held in one year's time.

Many Thais view the new regime as a good chance to resolve a Muslim insurgency in the south that has killed more than 1,700 people.

An exiled Muslim rebel leader on Thursday welcomed Thaksin's overthrow by Sondhi, a 59-year-old Muslim in a predominantly Buddhist country.

Thaksin, who used an iron-fisted policy in trying to suppress the insurgency, was widely detested in southern Thailand and many moderate Muslims said the conflict could never be resolved while he was in power.

Sondhi is the "only one who knows the real problems" of the Muslim-dominated south, said Lukman B. Lima, a leader of one of several groups fighting for a separate Islamic state in southern Thailand, and currently in exile in Sweden. Lukman was responding to e-mailed questions from The Associated Press.

Sondhi had proposed several weeks ago opening talks with the separatists, but Thaksin's government vehemently opposed such a move.

Meanwhile, a spokesman for the new military leadership - which Thursday released the official English translation of its name, the Council for Democratic Reform under Constitutional Monarchy - confirmed that four of Thaksin's close associates were being kept in custody.

Office Minister Newin Chidchob and Environment Minister Yongyut Tiyapairat turned themselves in Thursday, while Deputy Prime Minister Chitchai Wannasathit and Thaksin's top aide, Prommin Lertsuridej, were detained earlier.

"During the transition period, every country does this in order for the situation to return to normalcy quickly," said Lt. Gen. Palanggoon Klaharn, a spokesman for the military rulers.

What Ever Happened To Man's Best Friend?

Is it an urban legend - or a cover-up?

Our story begins at approximately 5:30 p.m. on the afternoon ofJuly 23, in front of a company called Federal Marine Terminals on theSoutheast Side. A crew from the Chicago Department of Water had beencalled to the scene earlier in the day to repair a broken water mainand had dug a sizable hole near the entrance to Federal Marine.

Now, there's a friendly neighborhood stray dog that is wellknown to the residents of the area and some of the workers at FederalMarine. They feed him, they pet him, they play with him; he's neverbeen the least bit dangerous.

The dog reportedly wandered near the broken water main on theday in question. For an account of what allegedly happened next, wequote directly from a report filed by an independent security guardwho was on the site at the time.

WHO? Chicago Water Workers.

WHERE? At the front gate of Federal Marine.

WHAT? While repairing a broken water main, a stray dog wastossed in the exposed hole, and buried alive! by city workers.

Whoa.

Says an employee of Federal Marine: "I didn't see the dog go inthe hole, but I did see the workers dancing around out there afterthey had filled the hole in. They were humming something thatsounded like Taps and laughing about it. It was a whole mockfuneral."

Then again, perhaps they were simply bidding farewell to a hardday's work.

"No way. . . . Practically everybody in the neighborhood hasbeen talking about it."

There's no disputing that. Over the past three weeks, fourpeople - none of whom claimed to know each other - called or wrote totell me the story of the dog that was supposedly buried alive. AfterI obtained a copy of the original security report of the incident, Ibegan nosing around to find out what was what.

George Dosen, traffic manager for Federal Marine: "Yes, I'veheard the story, but the security guard is the witness and he doesn'twork for us. You'll have to talk to the security firm."

Vincent Rufallo, president of A&R Security, whose employee filedthe report: "We're not really sure if it happened or not. True, oneof our security guards filed a report about a dog being buried alive,but as it turns out, the guard . . . looked away for a moment. Whathappened was, he saw the dog near the hole, he turned away, then heturned back and the dog was gone.

"Did the dog fall in the hole? We don't know. We can't makethat claim."

Mark Durham of the Chicago Department of Water: "We did get acomplaint on that, and apparently the neighbors in the area have beentalking about it. It's a very bizarre story, a very strange story.In fact, it got to the point where we sent a crew out there to re-digthe hole, but they didn't find anything. We have documentation toverify that they found nothing. The story appears to be totallyunfounded.

"We're very grateful there wasn't a dog down there. You wouldhope that if a dog accidentally fell into a hole, people would try torescue it, not bury it alive."

But in the neighborhood, the talk continues.

"I was there when they came back and re-dug the hole," said aFederal Marine worker who didn't want to be identified. "Let me tellyou something - they didn't dig deep enough. They only scraped thesurface. Then they said, `See, there's no dog down there,' and theycovered it up."

If this were a Stephen King novella, the stray dog would awaken,dig itself out of the hole, shake off the mud and crud and start offin search of the city workers who did him in. That hasn't happened -yet - but everyone involved with this tale agrees on one thing:

Since the day in question, the friendly neighborhood stray dogwho roamed the streets for years hasn't been seen once, not once.

Visit with Richard Roeper and seven other Chicago Sun-Timescolumnists from 11:30 a.m. to 1:30 p.m. tomorrow on the Sun-TimesPlaza, 401 N. Wabash. Comments and questions welcome. Noreservations necessary.

LONDON CALLING Make England's capital affordable via free attractions, walking tours and theater discounts

LONDON -- London isn't one of the world's bargain destinations,and the feeble U.S. dollar makes it all the more daunting forAmerican visitors.

But it's possible to have a day out for less than a "tenner" -- a10-pound note, now worth about $19.

Start with the free attractions: The British Museum, the NationalGallery and National Portrait Gallery in Trafalgar Square, the vastand fascinating Tate Modern gallery across the Thames from St. Paul'sCathedral, the Imperial War Museum, the Victoria & Albert Museum, theNatural History Museum and the Science Museum -- just to name thebest-known among the capital's 200 or so museums and galleries. Mostmuseums will also have special exhibitions that do charge admission.

There's no charge for watching the Changing of the Guard atBuckingham Palace, which happens daily at 11:30 a.m. from Aprilthrough the end of July, and every other day the rest of the year.Check the Buckingham Palace section of the royal Web site,www.royal.gov.uk, for details.

Admission is also free for the Ceremony of the Keys at the Towerof London at 9:50 p.m. each night, but you need to plan ahead.(Visitors may request up to seven passes by writing to: The Ceremonyof the Keys, H.M. Tower of London, London EC3N 4AB.)

A cheap but vanishing essential of any London visit is a ride onone of the double-decker Routemaster buses; they're the ones with theopen platform on the back and a conductor waiting to sell a ticket.The fare is just 1.20 pounds, or $2.25, for a single ride; you canalso get an all-day London Transport ticket, which includesUnderground trains too, for 4.70 pounds, about $9.

If you fancy shopping, London boasts a variety of markets sellingeverything from fresh fish to vintage jewelry. Take a trip on theCentral line tube to Liverpool Street for a day at Petticoat Lanemarket, and trawl through the vintage clothing. Pretend you are ElizaDoolittle and roam through the old and new in the Covent Gardenmarket, and catch some of the street performers.

Many say the best way to view London is by foot. Walking tours area popular way of catching the hidden details, and the guides have awealth of knowledge.

Scare yourself on a Jack the Ripper walk or relive Shakespeare'sLondon. Original London Walks -- www.walks.com -- offers 100 routesat 5 pounds each -- about $9.40.

For the same price, London Mystery Walks -- www.tourguides.org.uk -- offers the Jack the Ripper walk and the Haunted London walk.

The National Theatre on the Southbank -- www.nt-online.org --offers the Travelex 10-pound season, when two-thirds of the seats areavailable for a tenner or about $19.

Web sites such as www.lastminute.com may have some theater ticketsfor the same price.

The Tricycle Theatre, one of London's better-known small theaters,offers 30 to 50 tickets to Tuesday and Saturday matinees on a "paywhat you can" basis. This offer is available to students, seniors andpeople with disabilities. The theater also offers some "early bird"tickets for less than 10 pounds or $19.

Rail lines serving London offer a range of "two for one" deals.Attractions taking in part in the promotion include the Royal BotanicGardens at Kew, HMS Belfast, Dali Universe, Tower Bridge Exhibitionand The London Aquarium. Details at www.london2for1.com; typicallyyou have to produce a train ticket and a voucher from the Web site toqualify.

AP

The economic rollercoaster ride becomes wilder

ECONOMIC REVIEW

I hope your seat belts are fastened. Just when we thought economic conditions were deteriorating sharply, the economic data turned. But after our sighs of relief, the losses from the risk-taking in the financial sector hit home, and major firm after major firm an- nounced large losses. In the midst of all this, the equi- ty markets bounced around, and the Federal Reserve System decided to take out some additional insurance just in case the economy started going south again. In other words, just another month in this long-running, greatly uncertain year.

Because the economic world seems to revolve around the housing market and foreclosures, let's start there. The report on summer foreclosures was awful. According to RealtyTrac, the level rose 30 percent from the spring and was almost double that posted in summer 2006. The pain was spread across the nation - only five states didn't see a rise in foreclosures over the year.

With defaults skyrocketing, it wasn't surprising that home sales and housing starts faltered. New construction was off more than 10 percent in September, and the pace was down 30 percent over the year. "Fire sales" helped generate some demand for new homes, but the existing housing market continued to fall apart.

Still, housing isn't the only part of the economy that matters. Ultimately, it is all about the consumer, and for households, it is jobs and income. Well, that aspect of the economy is doing decently. In October, businesses added 166,000 people to their payrolls. The unemployment rate remained at a fairly low 4.7 percent. Yes, construction and manufacturing were problem areas, but the gains were broad-based. As a consequence, income growth remained decent.

With consumer confidence ebbing, businesses are worried that the holiday shopping season will not be very good. But one thing we have learned is that although people may express concerns, if they are not anxious about losing their jobs and they believe their income will continue to grow, they spend money. The employment situation is decent enough that households will likely spend money this season. It may not be the greatest year for retailers, but it may turn out to be better than feared.

In the face of continued deep housing problems but good job growth, the Federal Reserve met. After having cut interest rates by a half percentage point in August, it was not clear if the rate-setting committee would once again reduce rates. But they did lower rates, this time by a quarter percentage point.

The move by the Fed was debated sharply. With oil nearing an unfathomable $100 a barrel level, fears persist that inflation could reaccelerate. The Fed has done a good job in reducing the inflation rate, and the members don't want to lose that gain.

So, why did the Fed move? Unfortunately, the housing problems have real implications for the economy in general. Large financial institutions invested heavily in mortgage securities and now are looking at significant losses. This reduces the ability of those firms to lend money and could lead to a further tightening in credit. And if credit is reduced, companies of all sizes will suffer, and growth could slow. Therefore, the Fed decided to take out some insurance by cutting rates.

Will it be enough? As long as jobs keep being created, we should be able to withstand the subprime and oil problems.

[Sidebar]

...If (people) are not anxious about losing their jobs and they believe their income will continue to grow, they spend money.

[Author Affiliation]

Joel L. Naroff Is chief economist with Commerce Bancorp of Cherry Hill, N.J. The bank shares the Commerce brand with Swatara Township-based Commerce Bank/ Harrisburg.

EARTH DAY 2003; A tale of two celebrations

Earth Day was founded over 30 years ago as a way for the citizens of the world to celebrate and educate around environmental and conservation ideas. Gaylord Nelson, a founder of Earth Day, wrote in the Environmental Protection Agency's Journal his thoughts about the first Earth Day.

"It was on that day that Americans made it clear that they understood and were deeply concerned over the deterioration of our environment and the mindless dissipation of our resources."

Nelson wrote those words over 20 years ago, before he could have anticipated the further environmental destruction and current weakening of important laws passed during the 1970s. Earth Day continues to be an important day of celebration throughout the world. In Boise, every year Julia Davis Park becomes a focal point for the celebration as the community comes alive in education and participation. This year the annual event will happen with a slew of presenters and performers on April 19 and 20. The crowd will be entertained by a children's carnival, a beer garden, displays by local non-profits and the Idaho Department of Energy and lots of music. Musicians appearing will include Crash Four, Hoi Polloi, Tim Andreae and out-of-towners the Clumsy Lovers.

Also being organized for Earth Day is the Boise City Earth Day Fair on April 22. The event will be held in the lobby of Boise City Hall and will be attended by state, county and city agencies as well as a few corporate groups. Idaho Power will be in attendance to spotlight its Green Power program and hybrid cars from Larry Miller Honda and Peterson Autoplex will be on display.

The addition of a new Earth Day celebration has ruffled some feathers. Several local environmental groups have expressed concerns at being left out of the city's celebration.

"We have not been contacted by the city at all," said Rachel Winer, of Idaho Conservation League. "I think that it was unfortunate that they don't have any nonprofits involved as presenters. We have been invited by BSU to participate in their Earth Day activities and we will be more than happy to participate in that."

Roger Singer of the Sierra Club also felt the lack of environmental groups at the city's event was unfortunate.

"They didn't want to compete with the event at Julia Davis," said Singer. "I was bit surprised that even when I explained that we would be at both events the city hall representative still would not invite to us to the event. The city approached conservation groups to help with the Foothills levy and get it passed and now don't invite us to the city's Earth Day celebration. I find that very curious."

The city downplayed the lack of non-profits at the City Hall event.

"There was never an intent to snub anyone," said Catherine Chertudi, solid waste and ground water programs manager for the city. "We didn't even think along those lines. We wanted to make sure that we didn't compete with those folks (at Julia Davis)."

Chertudi adds that they were asked by Julia Davis Earth Day organizer Scott King to avoid competing with the other celebration. King denies that there was concern over competition saying that he invited the city to participate in the park.

"In no way shape or form did they want to affiliate which kind of bothered me," said King. "The main issue, I was told by the lady organizing it, was that their people didn't want to work on weekends. It should be all one event."