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Mass. panel to study black market tobacco trade

Written By Unknown on Sabtu, 19 Oktober 2013 | 22.26

BOSTON — A special commission charged with studying the economic fallout of the illegal cigarette and tobacco trade in Massachusetts is preparing to hold its first meeting.

The commission was created by state lawmakers to determine the magnitude of the black market tobacco trade.

The nine-member panel, which will meet Monday, is also expected to recommend legislation, enforcement actions and penalties. One goal of the commission is to help strengthen the collection of tobacco excise and sales taxes.

Revenue Commissioner Amy Pitter said tobacco smuggling is a growing problem in Massachusetts and other states and can be found at the local, state and international levels

Pitter said the commission will also look at how other states combat counterfeit tax stamps and underground distribution rings.

The commission is expected to make its recommendations next March.


22.26 | 0 komentar | Read More

Harvard Square's iconic Upstairs to close

For more than three decades, it has been a fixture in Harvard Square, first as UpStairs at the Pudding and, since 2002, as UpStairs on the Square — in both its incarnations, a place that drew celebrities and locals alike for its eclectic menu and its Alice in Wonderland decor.

But on New Year's Eve, the iconic restaurant that Mary-Catherine Deibel and Deborah Hughes founded will close its doors for the last time after a grand finale fete with dancing and champagne to celebrate UpStairs' storied history.

"It's been a long and fruitful 31 years," Deibel said last night. "Now it's pedal to the metal so we have a great three months."

News that their landlord has decided to sell the building at 91 Winthrop St. came as a shock to those who have come to see it as a local landmark.

The restaurant opened in 1982 for Harvard's Hasting Pudding Woman of the Year, Ella Fitzgerald, and went on to host other celebrities over the years, including Bono, Tom Cruise, Julia Roberts and James Franco.

"The restaurant has always been beautiful and fun, with its zebra prints, hot pink walls and chandeliers," said Denise Jillson, executive director of the Harvard Square Business Association. "It could make something as simple as a roast chicken dinner memorable. It will be sorely missed."

UpStairs had a particular appeal for young professional women who could meet there after work for drinks, Jillson said. Her personal favorite was the Jackie O'.

"I have no idea what was in it," she said. "I can only tell you that it was very effective."


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RI sales tax panel to hear from Boston researcher

PROVIDENCE, R.I. — A special task force examining ways to change Rhode Island's sales tax is set to hear from a Boston-based researcher who studies how sales taxes affect the economy.

The sales tax commission is scheduled to meet Monday at the Statehouse for a presentation from Paul Bachman, director of research at the Beacon Hill Institute, which is a research group affiliated with Suffolk University in Boston.

Bachman has studied how changes to sales tax rates affect local economies.

The commission was formed after a lawmaker called for the repeal of the 7 percent tax. While that idea is unlikely to pass, lawmakers say it's time for a broader look at ways to make the tax less of a burden on consumers and businesses.

The commission includes lawmakers and business owners.


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ABC and Univision's love child bursts to life

MIAMI — The long-awaited DNA exchange between ABC and Univision emerges from the test tube this month, aiming to stretch the limits of traditional network programming. The English-language television network, called Fusion, will target millennial Hispanics and their BFFs as it attempts to capitalize on a generation for which cultural fusion is the norm and digital media is king.

The network will provide something of a grab bag: a mix of hard news, commentary, sports and irreverence aimed at 16- to 30-year-olds. Sure, there will be nightly news programs, but also an animated puppet news and entertainment show by David Javerbaum, former head writer of "The Daily Show with Jon Stewart." Think Comedy Central, the hipster online magazine Vice.com, ABC and Univision, all in one.

"Not everyone will get it; and that's sort of the point," Univision News President and now Fusion CEO Isaac Lee wrote in a memo to staff earlier this month.

To "get" what Fusion is attempting, it helps to tour its home and meet the players:

THE STARTUP

The green and blue mood-lighting of the warehouse-turned-news hub known as Newsport suggests Miami Beach club over newsroom. Like millennials who can't afford to move out on their own, Fusion shares the cavernous space with Spanish-language parent Univision News. Senior staff members gather for brainstorming sessions in brightly painted and glass-walled rooms overlooking the newsroom.

On a recent afternoon, Lee strode across the floor like the head of a Silicon Valley startup, sketching flow charts of Fusion's evolution. As he talked, one millennial staffer wrestled a ping pong ball from the mouth of Chocolate, Lee's brown Labrador. Others chimed in on the essence of the network that goes live Oct. 28.

As befits a project geared to a generation used to downloading the latest mobile update, Fusion has been beta testing in plain view. In 2011, Lee brought together a group of recent journalism school graduates to work on an English-language Tumblr for Univision. The young journalists created original news, curated stories and produced short documentaries.

Lee learned what worked (humor) and what didn't (direct Univision translations). The approach bought him time to win over holdouts at Univision, a company that built its brand on Spanish-language affinity.

THE PROS

"I hate ties. They are really useless. Why do I have to have a piece of cloth hanging from my neck every day?" fumed Jorge Ramos, the silver-haired veteran Univision anchor with piercing blue eyes, one of a handful of senior journalists to join Fusion.

As Ramos jogged up the stairs, he yanked the offending garment out of his bag and held it up to his neck. "This is my Univision uniform," he said, then dropped his arm and grinned, "and this is Fusion."

Ramos, who co-hosts Univision's popular nightly newscast with Maria Elena Salinas, will pull double duty. He frankly acknowledges his own millennial kids don't watch his Univision newscast, or any other. He is also blunt about the limits of his native language.

"It is very frustrating many times to have a great interview on the Sunday news story, and no one (in Washington) is paying attention simply because it's in Spanish," he said.

Ramos doesn't plan to dumb things down. He does plan to mention Mexico — the country sharing 2,000 miles of the United States' southern border — almost as much as he mentions Syria. One of his first interviews is with Maricopa County, Ariz., Sheriff Joe Arpaio, who earned attention and a U.S. Department of Justice investigation for his aggressive attempts to crack down on illegal immigration.

THE FEMALE FACTOR

Alicia Menendez describes her new Fusion show as a mix of sex, money and politics.

Isn't everything?

"Yes, but most people won't admit it," Menendez shot back. The 30-year-old gained early exposure to politics as the daughter of U.S. Sen. Robert Menendez, D-N.J. She's anchored programs for HuffPost Live and Sirius XM but says Fusion is the first network to speak to her generation.

Her first show: millennials' lack of monogamy and how self-inflicted singledom affects home purchasing.

Fusion describes itself as "Championing a smart, diverse and inclusive America." But Menendez's show notwithstanding, when it comes to gender, Fusion resembles Silicon Valley startups more than its tagline: it's stocked with talented women on the news floor but has virtually none on its senior creative and executive team.

THE PARTNERSHIP

ABC News President Ben Sherwood compares Fusion to the web of highways California built back in the 1950s.

"No one could understand why you would build a freeway with six lanes. But the visionaries of California knew that if you built these freeways, people would come," he said.

Like California's freeway system, the plan is to scale up, starting with 20 million homes and expanding to 60 million in the next few years.

It was a logical move for the Disney-owned ABC, which has no cable news counterpart and provides Fusion broad distribution through its cable and satellite contracts. It can also share news content with minimal investment. ABC has sent staff to work with Fusion on content and production, and Fusion's vice-president of news Mark Lima came from ABC's "Nightline."

For Univision, Fusion poses a greater risk, but the company has the financial wherewithal to weather initial bumps. Its prime-time broadcasts ruled July sweeps ahead of the other four major networks among coveted 19-49 viewers. In Fusion, it's looking ahead to the second- and third-generation Latinos who get their news in English. Nearly two-thirds of the 52 million Hispanics living in the U.S. are native born.

Still, the experiment hasn't been without awkward moments. As Fusion prepared to go live, top staffers were quoted sniping about the ages of their older counterparts at Univision.

THE COMPETITION

Fusion has competitors. Participant Media launched Pivot TV this summer, promoting social advocacy among millennials. Sean Combs' new music focused Revolt TV debut's this month.

Still, Morley Winograd, a University of Southern California fellow and author of books on media and millennials, says Fusion has the right ingredients for success and a huge potential market for advertisers.

"The two earliest cable channels specifically targeted at millennials were the ABC Family Channel and the Disney Channel," Winograd said. "It's not surprising then that a 'Fusion' of Univision and ABC decided upon Latino millennials as their market. Each side of the partnership knows a great deal about one half of that audience combination."

Lee insists Fusion will take some time to find its footing. MSNBC took years to settle on its left-of-center brand. Fox News Channel wasn't the nation's most popular cable news network out of the gate.

"Nobody's doing what we are doing," he said, "so there's one way to find out what works and what doesn't."


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Growing Cape OysterFest charges fee for first time

WELLFLEET, Mass — The Wellfleet OysterFest has a new feature this year that might be unwelcome: People have to pay to get in.

The Cape Cod Times reports (http://bit.ly/1atTl36) that for the first time ever people will be charged to get into the festival Saturday and Sunday. The cost for anyone over 12 is $5 or $8 for a two-day pass.

The festival manager says the money will help improve safety and support future festivals.

The Wellfleet OysterFest started as a small hometown event in 2002, but it's grown over the years, along with the costs for sanitation, insurance and paid staff. Attendance recently reached 25,000 over its two-day span, a size that the Times reports has turned off some locals.

The event is sponsored by the Shellfish Promotion and Tasting nonprofit in Wellfleet.


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Boston hospitals get $12M NIH grant

Written By Unknown on Jumat, 18 Oktober 2013 | 22.27

Two local hospitals are using a federal grant to form the Boston Biomedical Innovation Center, the latest effort by nonprofit hospitals to play a role in transforming medical research into commercially viable products.

The seven-year, $12 million grant — one of three nationwide from the National Institutes of Health — will ensure that scientific advances at Brigham and Women's Hospital and Massachusetts General Hospital will "rapidly lead to new drugs, medical devices and diagnostic tools that can help improve — and even save — the lives of patients everywhere," said Dr. Anne Klibanski, chief academic officer at Partners HealthCare.

"The purpose is to help bridge the chasm in realizing the benefits of many discoveries," said Dr. Joseph Loscalzo, chairman of the department of medicine at Brigham and Women's and a Harvard Medical School professor.

As government funding grows more difficult to secure, hospitals are turning to industry to establish joint projects, said Michael Pistone of the Center for Technology Commercialization at Cincinnati Children's Hospital, which spends $1 million annually to advance research to the point of commercial viability.

Boston Children's Hospital has joined with a California diagnostics equipment maker to form a company to develop tests for pediatric diseases. And, Mass. General is teaming with AstraZeneca to find the best matches between patients and treatments.

"It's obvious you need to have partnerships in order to make medical progress," said Edward Abrahams, president of the Personalized Medicine Coalition, an education and advocacy group. "We need to break down the barriers."


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HSBC unit ordered to pay $2.46B, plans to appeal

NEW YORK — A division of Europe's HSBC bank has been ordered to pay about $2.46 billion in a class action lawsuit claiming that it violated federal securities laws.

The lawsuit named consumer mortgage lender Household International Inc., which is now HSBC Finance Corp., and former executives William Aldinger, David Schoenholz and Gary Gilmer. It claimed that the company fraudulently misled investors about its predatory lending practices, the quality of its home loans and its financial accounting from March 23, 2001 through Oct. 11, 2002. HSBC acquired Household International in 2003. The acquisition made HSBC the biggest subprime lender in the U.S. at the time, but resulted in billions of losses to HSBC leading up to the financial crisis of 2008.

Lawyers for the plaintiffs said that the judgment, which includes $1.48 billion in damages and nearly $1 billion in prejudgment interest, was the biggest ever following a securities fraud class action trial. HSBC Holdings PLC, Europe's biggest bank by market value, said in a statement on Friday that it will appeal, noting that it was "the next step in an 11-year-old case and we believe we have a strong argument."

The judgment "shows that the fraud committed by Household International and the individual defendant officers will not go unpunished, and we look forward to having the judgment affirmed on appeal," James Glickenhaus of Glickenhaus & Co., one of the three lead plaintiffs appointed by the court in 2002 to represent the class, said in a statement.

A jury in Chicago found in favor of the plaintiffs in May 2009. In the final judgment entered in the U.S. District Court Northern District of Illinois Eastern Division on Thursday, Household International, Aldinger, and Schoenholz are held jointly and severally liable for the judgment. Gilmer is held severally liable for 10 percent of the judgment.

HSBC's U.S. shares shed 32 cents to $54.84 in morning trading. They are up less than 2 percent for the year.


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Facebook to profit, but teens pay cost

Facebook has just made it a bit easier for members of Generation TMI to mess up their lives.

Mark Zuckerberg & Co. 
announced Tuesday that teens are now allowed to post public updates and photos to their Facebook profiles. This is due to two undeniable truths: It's better for business, and Facebook doesn't give a hoot about your kids, their future or their 
safety.

Teens are major consumers, with their disposable income and susceptibility to marketing and fads. Advertisers want greater access to them, and Facebook was reeling from recent research showing the current generation is starting to view the service as unhip. But make no mistake: 94 percent of teens on social media have a Facebook account, according to the Pew Research Center. And an estimated 5.6 million children under 13 have lied about their date of birth to get around the site's age requirement and sign up.

Though cyberbullying is a huge issue, Facebook's newly relaxed privacy rules are more likely to impact things like college acceptance and employment. University admissions offices now admit to checking social media profiles of prospective students. Like it or not, employers have a huge interest in the social media footprint of 
employees, too.

The American Academy of 
Pediatrics now warns that parents should talk to their kids about social media just as they should talk to their kids about drugs. That's not as hyperbolic as it sounds. The part of our brains that anticipates the consequences of our behavior isn't fully developed for women until age 25 and men until age 30. The notion of teens going down a rabbit hole of bad social media should be treated with the same vigilance as drug addiction.

We need to teach kids in elementary school that when they post something on the Internet, they are adding to a body of research that will become their memoir. Every status update, tweet and comment by a friend is a sentence in your yet-to-be-written biography. Evidence suggests this is literally true. Decades from now, biographers won't be sifting through attic boxes for handwritten letters and interviewing elders, they'll have programs that automatically crawl through social media archives and Internet 
archives.

Social media is akin to the greatest generation gap since rock 'n' roll. The only difference is, it's got actual potential for harm, and Facebook just amplified the risk.


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The Ticker

Boston Scientific to pay $30M to feds

The Justice Department said Boston Scientific Corp. and its Guidant subsidiaries will pay $30 million to settle allegations that Guidant knowingly sold defective heart devices that health care facilities implanted in Medicare patients from 2002 to 2005.

Boston Scientific is headquartered in Natick and acquired Guidant in 2006.

The Justice Department said that while Guidant took corrective action to fix the defects, the company continued selling its remaining stock of defective versions of the implantable defibrillators used in patients at risk of cardiac arrest due to an irregular heartbeat.

Google shares reach all-time high

Google's shares soared to new heights yesterday after the company reported sales and profit that topped Wall Street expectations.

The stock jumped nearly 8 percent in after-hours trading, near $955.50 a share — well above the stock's all-time high of $928 set in July.

Sales from both Google-owned sites and its network of partner sites both jumped by almost a quarter over the year. Search makes up 92 percent of Google's business.

Sovereign Bank becomes Santander

The third largest bank in Massachusetts changed its name yesterday.

Sovereign Bank will be known as Santander, one of the nation's 25 largest retail banks. It operates mostly in the Northeast and Mid-Atlantic. It has 700 branches in the United States.

The bank is part of the Spanish banking firm the Santander Group, which operates in countries across the globe including in Europe, South and North America.

THE OUTLOOK

Today

  • Conference Board releases leading indicators for September.
  • General Electric Co. reports quarterly financial results before the market opens.
  • Morgan Stanley reports quarterly financial results before the market opens.

THE SHUFFLE

  • ProEx, a physical therapist-owned private practice specializing in orthopedics, spine and sports medicine, has announced Elizabeth "Liz" Kilzi has been named an exercise technician, operating from its Boston location in the Financial District.
  • Rodman & Rodman, P.C., an independent accounting and tax firm with a specialty practice in clean technology and renewable energy, has named Janine L. O'Connor as an accountant. She will provide accounting, tax and financial statement preparation services to Rodman & Rodman's business clients and individuals throughout New England.

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Downtown evolves as a neighborhood

No longer do the sidewalks roll up after 6 p.m. in the Financial District.

The Hub will see twice the number of new housing units during this cycle than it did last cycle. And it is well-positioned to absorb the housing spurt, as there is a shift toward more urban living.

Accompanying the new housing are more amenity retail options and a different vibe in office tenancy in Downtown Crossing and the Financial District — an area we now just call downtown.

Greg Vasil, CEO of the Greater Boston Real Estate Board, said the lines for the two districts were artificially drawn — one a retail area and the other an office area — but now it is all one.

"The Downtown Crossing area was always the place to shop, and as a natural progression over time, the area is going from a retail district to a mixed-use district," Vasil said. "Downtown Crossing is on its way to becoming another 'living district,' where you have the amenity retail, such as the Walgreens superstore, Roche Brothers grocery store, as well as more fitness centers, retail and restaurants."

David Begelfer, CEO of NAIOP-Massachusetts, a commercial real estate association, said Boston has evolved, both commercially and residentially.

"It is no longer the sense if you are looking for residential you look only to the Back Bay or the South End, you are looking at options that go across the city," Begelfer said. "Same thing goes for office, it is no longer just the Financial District; it is Back Bay, the Seaport, Allston, Brighton and Fenway that are showing very strong life for office development, not a usual situation."

Over the past 13 years, the topography of Greater Boston's commercial tenant landscape has shifted significantly.

To keep talent, companies are moving into the city. Many of these non-financial companies want to be in an urban location with some street vibe to it, said Peter Farnum, senior managing director and principal at Cassidy Turley.

"PayPal, with its move into the fifth and sixth floors of One International Place, and Technip, with its relocation from East Cambridge to One Financial Center, are just two of the recent technology and innovation firms to move into the downtown market," Farnum said.

A significant step forward in changing the face of downtown is Millennium Partners' $630 million complex of new offices, stores and 450 luxury residences on the former Filene's site at the corner of Washington and Summer streets.

Advertising giant Arnold Worldwide and its sister agency, Havas Media, will occupy about 125,000 square feet in the project.

Several other housing developments already are underway in the downtown, including the recently opened 256-unit condo building at Millennium Place and a 381-unit apartment tower by Kensington Investment on Washington Street.

With its AAA bond rating, Boston is on its way to becoming a world class city.

Jennifer Athas is a licensed real estate broker. Follow her on Twitter @Jenathas.


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Bankers urge fed help with flood ins. regs

Written By Unknown on Kamis, 17 Oktober 2013 | 22.26

New legislation to cap the amount of flood insurance lenders can require could help homeowners with small mortgages, but ultimately a solution to the dramatic increases many face due to the Federal Emergency Management Agency's new flood zone maps must come at the federal level, the Massachusetts Bankers Association said yesterday.

The legislation, filed by Attorney General Martha Coakley and House Speaker Robert DeLeo, would prohibit creditors from requiring homeowners to purchase flood insurance that exceeds the outstanding mortgage balance. That would help those with small mortgages, but not people buying a home with a traditional mortgage for about 80 percent of the purchase price, said Jon Skarin, the association's senior vice president.

"A solution to the (increases people face as a result of FEMA's new flood zone maps) really needs to come at the federal level," he said. "States don't have the ability to do much in terms of setting rates or making changes to the overall program. But anything that can push Congress in the direction of finding a solution is positive."


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Budget battles bad for business

Even though there's a short-term deal to reopen the government and raise the debt ceiling, the never-ending cycle of budget fights are hurting consumer confidence and creating uncertainty about the economy, business leaders and an economist said.

"All of the surveys show that consumers are cautious," said Jon Hurst, president of the Retailers Association of Massachusetts. "It couldn't have come at a worse time," Hurst said of the 16-day showdown.

With just over a month before the holiday shopping season gets going, lower confidence could lead to lower spending at a key time, he said.

The bipartisan legislation put together by the Senate lets the Treasury borrow through Feb. 7, and funds the government through Jan. 15. The Senate and later the House both passed it last night. The White House said President Obama signed the bill early today, hours after the House gave final approval.

"We fought the good fight. We just didn't win," House Speaker John Boehner said.

The White House budget office has already instructed federal workers to plan to return to work this morning.

"We'll begin reopening our government immediately and we can begin to lift this cloud of uncertainty from our businesses and the American people," the president said.

The bill, however, only delays the same debate, said Jim Klocke, executive vice president of the Greater Boston Chamber of Commerce.

"The fact that the deal that has been struck is only a three-month fix is in many ways only going to prolong the uncertainty," Klocke said. "All we've done is deferred the arrival of the bullet for a few months."

Nigel Gault, co-chief economist for the Parthenon Group, said the nation's global credibility will take a hit.

"We've gone to the brink once again, damaged the international reputation of the U.S.," Gault said.

The bill contained almost nothing substantial for Republicans demanding changes to Obamacare. The only provision is a requirement for Health and Human Services Secretary Kathleen Sebelius to produce a report stating her agency can verify the incomes of individuals who apply for federal subsidies.

Republican Sen. Rand Paul of Kentucky, a potential 2016 presidential candidate, told Boston Herald Radio yesterday he was never in favor of shutting down the government as a way to fight Obamacare. "I've always thought really if you want to talk about Obamacare, talk about how bad it is, and how awful it's going to be ... that's all good. But attaching it to shutting down the government, I didn't think was a good idea," he said.

The Associated Press contributed to this report.


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White House: Furloughed workers can return to work

WASHINGTON — The federal government is back open for business.

The Obama administration changed the government's status to "open" early Thursday, more than two weeks after a partial shutdown took hold when funding from Congress ran out.

Minutes after President Barack Obama signed a hard-fought deal struck in Congress, the White House directed all agencies to reopen promptly and in an orderly fashion. Furloughed federal employees across the country are expected to return to work Thursday.

"In the days ahead, we will work closely with departments and agencies to make the transition back to full operating status as smooth as possible," said Sylvia Mathews Burwell, director of the Office of Management and Budget.

Unless they are told otherwise, all employees should return to work on their next regularly scheduled work day, the Office of Personnel Management said. For most workers, that means they'll be expected to clock in Thursday morning.

But the administration also said agencies are strongly encouraged to be flexible where they can, including by allowing telework, flexible scheduling and excused absences in cases of hardship. Many federal workers may be unable to return to work on such short notice.

The White House encouraged federal workers to check OPM's website for additional instructions about returning to work.

Hundreds of thousands of workers have been furloughed since the shutdown started Oct. 1. The measure Obama signed Thursday restores government funding through Jan. 15. It also extends the nation's borrowing authority through Feb. 7, averting a potential default.

___

Online:

Office of Personnel Management: http://www.opm.gov


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SF Bay Area trains run as strike talks drag on

OAKLAND, Calif. — The contentious talks between the San Francisco Bay Area Rapid Transit agency and its two largest unions have dragged on for six months — a period that has seen a chaotic dayslong strike, a cooling-off period and frazzled commuters wondering if they'll wake up to find the trains aren't running.

"We're going to do everything we can to avert a strike," Josie Mooney, a chief negotiator for Service Employees International Union Local 1021, said before entering talks Wednesday. "That doesn't mean we're not ready for a strike. That doesn't mean we're not able to pull off a work action. We don't want to."

Hundreds of thousands of commuters have endured seven strike deadlines, sometimes staying up past midnight waiting to hear if the trains will run in the morning.

On Wednesday, they waited until about 10:30 p.m. to receive word from a federal mediator that the transit system will continue to run Thursday as unions and management agree to keep talking.

The possibility of a strike appeared to dim earlier in the day when Local 1021 President Roxanne Sanchez said she was hopeful that her union and the Amalgamated Transit Union Local 1555 will come up with a deal by late Wednesday.

"We're asking that this process conclude tonight," Sanchez said. "We can do this. We should do this. It is within our grasp."

BART spokeswoman Alicia Trost said the agency has been flooded with calls and emails this week from commuters frustrated that they haven't been given earlier notices.

Neither side would say where negotiations stand.

But at least one person seems comfortable betting that a strike won't happen.

A spokeswoman for San Francisco Mayor Ed Lee announced Wednesday afternoon that he had left on a trip to Asia. After delaying his flight for two days to ready the city for a possible strike, Lee concluded that a walkout seemed unlikely and went ahead with the planned trip.

Federal mediator George Cohen said progress has been made but he has imposed a gag order on the parties.

The key issues have been salaries and worker contributions to their health and pension plans.

Talks began in April, three months before the June 30 contract expirations, but both sides were far apart. The unions initially asked for 23.2 percent in raises over three years. BART countered with a four-year contract with 1 percent raises contingent on the agency meeting economic goals.

The unions contended that members made $100 million in concessions when they agreed to a deal in 2009 as BART faced a $310 million deficit. And they said they wanted their members to get their share of a $125 million operating surplus produced through increased ridership.

But the transit agency countered that it needed to control costs to help pay for new rail cars and other improvements.

On Sunday, BART General Manager Grace Crunican presented a "last, best and final offer" that includes an annual 3 percent raise over four years and requires workers to contribute 4 percent toward their pension and 9.5 percent toward medical benefits.

The value of BART's proposal is $57 million, BART spokeswoman Alicia Trost said, adding that the agency is looking at ways to incorporate the unions' counterproposals into that cost.

SEIU Local 1021 executive director Pete Castelli said Monday the parties were between $6 million to $10 million apart.

Workers represented by the two unions, including more than 2,300 mechanics, custodians, station agents, train operators and clerical staff, now average about $71,000 in base salary and $11,000 in overtime annually, the transit agency said. BART workers currently pay $92 a month for health care and contribute nothing toward their pensions.

Meanwhile, Gov. Jerry Brown has stepped in to at least delay a strike by workers for regional bus system Alameda-Contra Costa Transit. Such a strike would leave commuters stranded without a mass transit alternative if a BART strike is underway at the same time.

Brown appointed a three-member panel to investigate a strike notice by union workers. The move effectively prevents a strike, which had been threatened for Thursday, for a week. A 60-day cooling-off period in the contract dispute could then be imposed.


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US unemployment aid applications drop to 358,000

WASHINGTON — Applications for US unemployment benefits dropped 15,000 to a seasonally adjusted 358,000 last week, though the figure was distorted for the second straight week by California's efforts to clear backlogged claims.

The partial government shutdown also likely boosted the total, as government contractors and other businesses furloughed employees. The Labor Department says the less volatile four-week average rose 11,750 to 336,500.

Applications have jumped in the past two weeks, distorted by computer upgrades in two states and the 16-day shutdown. Prior to those unusual factors, claims had reached pre-recession levels, a sign that companies are cutting very few workers.

"Once the special factors are weeded out, and businesses carry on as best they can, we should continue to see moderate job growth," said Jennifer Lee, an economist at BMO Capital Markets.

California and Michigan continued to sift through backlogged claims held up by computer changes. Furloughed private-sector workers drove up applications by 15,000 two weeks ago. About 70,000 furloughed federal employees also sought benefits in the week ending Oct. 5, although those workers aren't included in the overall totals.

About 3.9 million Americans received benefits in the week ended Sept. 28, the latest data available. That's about 83,000 fewer than the previous week. A year ago, 5 million people were receiving aid.

The government opened for business on Thursday. Federal employees who receive back pay will likely have to reimburse the government if they claimed unemployment benefits during the two-week shutdown, although the law varies by state.

Before the government shutdown and California's backlog, applications fell to a six-year low three weeks ago, thought that figure was pushed lower by California's delays.

Falling applications for unemployment benefits are typically followed by more hiring. But so far, there haven't been many signs of that happening.

The shutdown has delayed a raft of government data, including September's employment report. And it will likely affect hiring and weigh on the economic growth in the October-December quarter.

Several economists have cut their forecasts for fourth-quarter growth to an annual rate of about 2 percent, half a percentage point lower than their previous estimates.


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Passengers: Explosion, flames seen on Spirit jet

Written By Unknown on Rabu, 16 Oktober 2013 | 22.26

GRAPEVINE, Texas — Passengers aboard a Spirit Airlines jet en route to Atlanta say they heard an explosion and saw flames before the plane safely returned to Dallas-Fort Worth International Airport.

Passenger Fred Edwards told WGCL-TV  in Atlanta that following the explosion flames came up the side of the plane, lighting up the interior of the Airbus A319.

Spirit spokeswoman Misty Pinson says the captain received an indication of a "possible mechanical issue" shortly after takeoff from DFW airport Tuesday. Pinson says there was smoke in the cabin and one engine shut down. She said by email Wednesday that there was no fire.

She says no one on Flight 165 was injured.

The 145 passengers were placed on another Spirit jet for Atlanta later Tuesday.


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Buffett says allowing US default would be idiocy

OMAHA, Neb. — Billionaire Warren Buffett said Wednesday it would be idiocy for the nation's leaders to allow the United States to default on its bills.

Buffett is a renowned investor who leads the Berkshire Hathaway conglomerate. He appeared Wednesday on CNBC.

Buffett said he thinks it would be absurd for American politicians to do anything to damage the country's reputation for paying its bills that has been established over the past 237 years.

"I don't think it will happen, but if it does happen, it's a pure act of idiocy," Buffett said about the possibility of default.

Congressional leaders were still working Wednesday morning on a deal to end the partial government shutdown and prevent default. Buffett said both political parties should agree not to use the debt limit as a bargaining chip in the future because it is "a political weapon of mass destruction."

"Credit worthiness is like virginity, it can be preserved but not restored very easily, so it is crazy to play around with it," Buffett said on CNBC.

But Buffett said he hasn't changed Berkshire's spending because of the budget battle, and it didn't factor in his decision to complete a $1.1 billion acquisition.

Berkshire said Wednesday it will buy the beverage dispenser business from Britain's IMI PLC on behalf of its Marmon Group subsidiary.

"I wouldn't have changed the price a penny based on what's happened," Buffett said.

The deal is relatively small by Berkshire's standards. The company spent $12.25 billion earlier this year to acquire half of ketchup maker H.J. Heinz Co. in a $23.3 billion deal. Buffett said Wednesday that another similar-sized deal recently got away from Berkshire.

Buffett also said he hasn't yet seen an effect on consumer spending in the reports he gets from Berkshire subsidiaries like its furniture and jewelry stores, but that would change if the government defaults.

Buffett said he hasn't sold off any of Berkshire's short-term treasury bills because of the budget battle. He said he's not worried about the government paying those.

Berkshire Hathaway Inc. owns about 80 subsidiaries, including clothing, brick, carpet and paint firms. Its insurance and utility businesses typically account for more than half of the company's net income. It also has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co.

___

Online:

Berkshire Hathaway Inc.: www.berkshirehathaway.com

___

Follow Josh Funk at www.twitter.com/funkwrite


22.26 | 0 komentar | Read More

JPMorgan pays $100M, admits fault in London trades

WASHINGTON — JPMorgan Chase & Co. has agreed to pay a $100 million penalty and admitted that it "recklessly" distorted prices during a series of London trades that ultimately cost the bank $6 billion in losses.

The settlement announced Wednesday by the Commodity Futures Trading Commission comes less than a month after JPMorgan agreed to pay $920 million and admit fault in a deal with the Securities and Exchange Commission and other U.S. and British regulators.

The CFTC said JPMorgan traders in London sold off a massive volume of derivatives at once, distorting market prices. Derivatives are investments whose value is based on some other investment, such as oil and currencies. The market was largely unregulated before the 2008 financial crisis.

JPMorgan, the nation's largest bank, admitted that its traders "acted recklessly" by dumping the derivatives on an index tied to corporate bonds, the CFTC said.

The agency said the traders were "desperate" to avoid further losses on their portfolio of the derivatives, and they sold more than $7 billion of them on Feb. 29, 2012, including $4.6 billion during a three-hour period. That was a "staggering volume" and by far the largest amount the division had traded in one day, according to the CFTC.

The traders realized that the huge volume of the derivatives they had amassed could affect the market, and they decided to do so, the agency said.

It marked the first time the CFTC used a new legal authority from the 2010 financial overhaul law that is designed to prohibit reckless market conduct.

Enforcement Director David Meister said the agency now is "better armed than ever to protect the market."


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Markets cling to belief in US debt deal

LONDON — Financial markets clung to the hope that the U.S. will avoid a default, even though a deadline to raise the country's debt ceiling is just hours away.

Though stocks edged lower Wednesday in Europe, they rose on Wall Street — which recovered from the previous day's losses, when investors were spooked by a series of dramatic twists. Republicans in the House of Representatives abandoned a vote to temporarily increase the debt ceiling and Fitch warned that it could strip the U.S. of its triple-A rating even if a deal is cobbled together in time.

Unless Congress acts by Thursday, the government will lose its ability to borrow and will be required to meet its obligations by relying on cash in hand and incoming tax receipts. That could mean the U.S. is unable to repay holders of Treasury bills that mature in coming days, or that it could miss interest payments on longer-dated Treasurys, and would be in default on its debt.

Investors have been remarkably sanguine in recent days as they seem to expect a deal will eventually be agreed between Republicans in Congress and the White House.

"The financial markets continue to buy into claims on Capitol Hill that a deal on the debt ceiling will be done before tomorrow's deadline," said Craig Erlam, market analyst at Alpari.

In Europe, the FTSE 100 index of leading British shares was down 0.2 percent at 6,536.14 while Germany's DAX fell 0.1 percent to 8,799.99. The CAC-40 in France was 0.6 percent lower at 4,228.62.

Wall Street opened higher, with the Dow up 1.2 percent at 15,351 and the broader S&P 500 advancing the same rate to 1,718.

The Senate now appears to have retaken the initiative in trying to forge a deal. The expectation in the markets is the Senate will agree on a deal and send it to the House, where Republicans will have to make a decision that could seriously impact both their political futures as well as the wider economy.

Analysts said trading through the day could be choppy and nervous, especially if a deal is not forthcoming. In Europe, that could mean some volatility towards the end of the session.

"Providing there are no further developments by then, an aggressive sell in late afternoon trading could well take place," said Alastair McCaig, market analyst at IG.

Earlier in Asia, Japan's Nikkei 225 rose 0.2 percent to close at 14,467.14 while Hong Kong's Hang Seng dropped 0.5 percent to 23,228.33. China's Shanghai Composite fell 1.8 percent to 2,193.07. Australia's S&P/ASX 200 added 0.1 percent to 5,262.91.

The mood outside stock markets was fairly cautious, too. Among currencies, the euro was flat at $1.3523 while the dollar rose 0.7 percent to 98.83 yen. In the oil markets, a barrel of benchmark New York crude was up 60 cents at $101.81 a barrel.


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Springleaf shares rises after $336.7M IPO

NEW YORK — Shares of Springleaf Holdings jumped Wednesday morning after the lender expanded its initial public offering, selling $336.7 million in stock.

Springleaf expanded its IPO to 21 million shares from 20 million and said the offering priced at $16 per share, in line with its estimates.

The company's shares gained $1.70, or 10 percent, to $17.70 in morning trading.

The stock is now trading on the New York Stock Exchange under the ticker symbol "LEAF." Springfield said the underwriters of the IPO will have an option to buy 3.2 million more shares to cover over-allotments.

Springleaf Holdings Inc. provides non-prime consumer loans through a network of 834 offices and online. It is based in Evansville, Ind.


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High court will review EPA global warming rules

Written By Unknown on Selasa, 15 Oktober 2013 | 22.26

WASHINGTON — The Supreme Court agreed Tuesday to decide whether to block key aspects of the Obama administration's plan aimed at cutting power plant and factory emissions of the gases blamed for global warming.

The justices said they will review a unanimous federal appeals court ruling that upheld the government's unprecedented regulation of six heat-trapping gases.

The question in the case is whether the Environmental Protection Agency's authority to regulate automobile emissions of greenhouses gases as air pollutants, which stemmed from a 2007 Supreme Court ruling, also applies to power plants and factories.

The case will be argued in early 2014.

The administration's climate change plans hinge on the 2007 decision in Massachusetts v. EPA which said that EPA has the authority under the Clean Air Act to limit emissions of greenhouse gases from vehicles.

Two years later, Obama's EPA concluded that the release of the six gases endangered human health and welfare, a finding the administration has used to extend its authority beyond automobiles to large stationary sources. The president gave the EPA until next summer to propose regulations for existing power plants, the largest unregulated source of global warming pollution.

The justices declined to take up even larger questions posed by some of the appeals, including whether the 2007 decision in Massachusetts v. EPA should be overturned.

The regulations have been in the works since 2011 and stem from the landmark Clean Air Act that was passed by Congress and signed by President Richard Nixon in 1970 to control air pollution.

The administration has come under fierce criticism from Republicans for pushing ahead with the regulations after Congress failed to pass climate legislation, and after the Bush administration resisted such steps.

In 2012, a three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia concluded that the EPA was "unambiguously correct" in using existing federal law to address global warming.

The judges on that panel were: Then-Chief Judge David Sentelle, who was appointed by Republican President Ronald Reagan, and David Tatel and Judith Rogers, both appointed by Democrat Bill Clinton.

___

Associated Press writer Dina Cappiello contributed to this report.


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Alitalia shareholders approve capital increase

MILAN — Shareholders in the Alitalia airline have agreed to a 300 million-euro ($400 million) capital increase to save Italy's flagship carrier from bankruptcy.

It is still unclear which shareholders will contribute. The airline said in a statement Tuesday that the 21 Italian shareholders and Air France-KLM, the largest stakeholder, have 30 days to decide whether to exercise their options to contribute money and increase their stakes.

The capital increase can already count on 75 million euros from Italy's postal service and a 100-million-euro bridge loan.

The postal service's participation has elicited accusations of protectionism, which Finance Minister Fabrizio Saccomanni dismissed as "hasty." He said Alitalia will look for international partners.

The current board, which approved the rescue plan last week, has offered to resign to reflect changes in ownership.


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Troubled telecoms: Alcatel-Lucent job cut protest

PARIS — Wearing black trash bags marked with crosses, more than a thousand Alcatel-Lucent workers marched to the Eiffel Tower on Tuesday, staging a mock funeral that the chief executive warned could easily become a reality for a company with its roots in the earliest days of the telephone.

The employees were protesting Alcatel-Lucent's plans to cut 10,000 jobs around the world and save 1 billion euros ($1.6 billion) in costs. Like many former pioneers of the communications industry, Alcatel-Lucent is having a hard time adapting to seismic technological shifts.

"This company could disappear," CEO Michel Combes told Europe 1 radio on Tuesday ahead of the protest that ended at Alcatel-Lucent headquarters near Paris' most famous monument. "This company hasn't made money since 2006."

Combes blamed bad decision-making since the 2006 merger of France's Alcatel and U.S.-based Lucent Technologies, such as abandoning high-growth countries, a lack of innovation and a failure to make the leap to new cell technology, such as 3G.

Jeff Kagan, an analyst who follows Alcatel-Lucent from the U.S., said the company focused too much on voice technology while the industry was "quickly evolving into a data space" instead.

"I don't think they can transform the industry, and they haven't done a great job of transforming themselves," Kagan said.

Combes took over in April and faces resistance from the French government, which has warned it could try to block, or delay the planned layoffs.

The company's troubles are in sharp contrast to the glory days of Bell Labs, Lucent's research arm, which won seven Noble Prizes and whose earliest iteration was founded by Alexander Graham Bell, the inventor of the telephone.

Other phone companies facing difficulties:

BLACKBERRY

The one-time leader in smartphones published Tuesday an open letter in journals around the world to reassure customers. Blackberry has been laid low by a new generation of touchscreen phones, starting with the iPhone in 2007. It has yet to recover and lost $1 billion in the last quarter alone.

NOKIA

Microsoft reached a deal earlier this year to buy Nokia's mobile phone business for $7.2 billion. Both companies were once dominant and are now trying to rebrand and claw back market share.

MOTOROLA

Google Inc. paid $12.4 billion last year for Motorola Mobility. Kagan said Google's dominance in the tech world will insulate Motorola from some of the pressures faced by competitors.

___

Follow Lori Hinnant at https://twitter.com/lhinnant


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Court to hear appeal over gun buying conviction

WASHINGTON — The Supreme Court will decide whether a Virginia man should have been convicted of being a "straw purchaser" after buying a gun in-state and selling it to his uncle in Pennsylvania.

The high court on Tuesday agreed to hear an appeal from Bruce James Abramski, Jr., a former police officer. Abramski bought a Glock 19 handgun in Collinsville, Va., in 2009 and transferred it to his uncle in Easton, Pa.

Federal official say Abramski had assured the Virginia dealer he was the "actual buyer" of the weapon when he already had discussed with his uncle how he would buy the Pennsylvania man a weapon with his police discount.

Abramski says since both he and his uncle were legally allowed to own guns, the law shouldn't have applied to him.


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Maine ranked No. 29 in business tax climate index

PORTLAND, Maine — Maine is being ranked in the middle of the pack in a new ranking of states' business tax climates.

The Tax Foundation's 2014 Business Tax Climate Index ranks Maine 29th, the same as last year. The index, which was released last week, compares tax systems to see how states stack up against one another in attracting businesses.

Maine ranked in the bottom 10 for its property and corporate taxes, but it was in the top 10 for its sales tax rate.

The index is now in its 10th year and uses more than 100 variables.

Wyoming, South Dakota and Nevada were rated as having the best business tax climates. New York, New Jersey and California came in at the bottom.


22.26 | 0 komentar | Read More

Greece eyes bond rollovers to cover financing gap

Written By Unknown on Senin, 14 Oktober 2013 | 22.27

ATHENS, Greece — Greece's finance minister says the debt-hobbled country can cover a shortfall in its short-term financing needs by rolling over bonds held by European central banks and domestic lenders.

Yannis Stournaras says the 11 billion-euro ($15 billion) gap for 2014-15 "is not very difficult to plug after all."

Greece has depended on international bailouts since 2010. But when most of the rescue funds end next year, it will face shortfalls.

In an interview published Monday, Stournaras said the rollovers would affect 4.5 billion euros worth of bonds issued in exchange for bank shares under a liquidity program five years ago.

Stournaras told Greece's Naftemporiki financial newspaper that the problem can be fully solved if Europe's central banks honor pledges to roll over Greek worth bonds 19 billion euros.


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Microsoft's phone update to feature driving mode

NEW YORK — Microsoft is updating its Windows software for cellphones to accommodate larger devices and make it easier for motorists to reduce distractions while driving.

It's the third update to Windows Phone 8 software since the system's release a year ago. Devices with this update will start appearing in the coming weeks, and older phones will be eligible for a free upgrade, too.

Something that may appeal to motorists: a new Driving Mode will automatically silence incoming calls and texts so that you can focus on the road. You also can configure the feature to automatically send out a reply to say that you're driving.

It can be activated automatically when the phone is linked wirelessly with a Bluetooth device in the car, such as a headset. Apple has a Do Not Disturb feature for iPhones, but that needs to be turned on manually.

What the Driving Mode won't do, however, is block outgoing calls or texts. And there will be ways to override it. The feature won't stop a teenager from texting while driving, but it will help reduce distractions for those who want that, says Greg Sullivan, director for Microsoft's Windows Phone business.

The new update also will allow for better resolution to accommodate larger phones. Currently, the system supports a maximum resolution of 1280 pixels by 768 pixels, which is adequate for phones with screens no larger than 5 inches on the diagonal. But video and image quality degrades when stretched out on larger phones, such as a 6.3-inch Android phone from Samsung Electronics Co.

The layout for larger phones also will change. Phones may now sport a third column of tiles, for instance. Contact lists and other features will be able to fit in more information. That's a contrast to Android, where text and images simply get bigger with larger screens, without actually fitting in more content.

Microsoft's Windows Phone software holds a distant third place behind Apple's iOS and Google's Android, with a worldwide market share of 3.7 percent in the second quarter, according to research firm IDC. But shipments of Windows Phone devices grew 78 percent to 8.7 million in the April-to-June period, compared with the same time a year ago. The tile-based layout in Windows Phone is the inspiration for the Windows 8 software powering tablets and personal computers.

There are a few ways Microsoft Corp. will catch up to the iPhone and Android phones with the new update.

For the first time, Windows phones will have a rotation lock function, so that the screen won't switch back and forth between horizontal and vertical mode while you're curled up in bed. There also will be a central way to close open apps. Before, you had to go into each open app and press and hold the back button.

And Microsoft is launching a program to give app developers early access to the new software. Apple has had a similar program for the iOS software behind iPhones and iPads, while Google often has worked with selected developers on unreleased features.


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3 Americans win economics Nobel for trend-spotting

STOCKHOLM — Three Americans won the Nobel prize for economics on Monday for developing methods to study trends in stock, bond and house prices — work that has changed the way people invest.

Eugene Fama showed in the 1960s how hard it is to predict markets in the short run, while Robert Shiller two decades later showed how it can be done in the long run. Lars Peter Hansen developed a statistical method to test theories of asset pricing.

For their separate research, the three economists shared the $1.2 million prize — the last of this year's Nobel awards to be announced.

"Their methods have shaped subsequent research in the field and their findings have been highly influential both academically and practically," the Royal Swedish Academy of Sciences said.

Fama, 74, and Hansen, 60, are associated with the University of Chicago. Shiller, 67, is a professor at Yale University.

Hansen said he received the phone call from Sweden when he was on his way to the gym. He said he's not sure how he'll celebrate but he's "still working on taking a deep breath."

Shiller, an economist famous for having warned against bubbles in technology stocks and housing, said he reacted with disbelief when he got the call.

"People told me they thought I might win. I discounted it. Probably hundreds have been told that," he said to The Associated Press.

Fama helped revolutionize the practice of investing by showing it was difficult to predict individual stock prices in the short run. That led to the emergence of index funds as a common investment.

Shiller showed that there's more predictability in stock and bond markets in the long run. That encouraged the creation of institutional investors, such as hedge funds, that take bets on market trends.

In the late 1990s, Shiller said the stock market was overvalued "and lo and behold he was proven right" when the dot-com bubble burst in 2000, said Nobel committee secretary Peter Englund.

"He also predicted for a long time that the housing market was overvalued and again he was proven right," Englund said. The U.S. property market suffered a crash in 2007 that helped fuel the global financial crisis.

Englund said he believes the three laureates agree on the findings for which they were awarded. However, Fama and Shiller have different "interpretations of the real world," he added.

"It's no secret that for Eugene Fama the sort of null hypothesis is that markets work well and he is willing to believe that until he is proven otherwise whereas for Robert Shiller, I think his null hypothesis is that there are periods of excessive optimism and pessimism," Englund said.

Shiller is known for developing the Case-Shiller index, a leading measure of U.S. residential real estate prices, with Karl Case, a Wellesley College economist.

Hansen in the 1980s developed a statistical method to better evaluate theories such as those of Fama and Shiller.

"These are three very different kinds of people and the thing that unites them all is asset pricing," says David Warsh, who tracks academic economists on his Economic Principals blog.

Fama said his work came at a time when computers were beginning to be used by statisticians and economists, many of whom were studying stock prices because they were the most easily available data to come by.

He was getting ready to teach his first class as a Nobel laureate Monday morning. Asked whether his students would get a break, he said: "We'll see, but they're going to get an exam tomorrow anyway. They paid their money, they're gonna get the full pill."

Shiller defended finance as a part of society, arguing that if regulated properly it is "at the core of our civilization."

"It seems to some people it's selfish and money-grubbing. It doesn't really have to be that way. The financial crisis we've been through is traumatic, but we're learning from it," Shiller said.

For example, he said many students from other countries are able to study in the United States because of financial aid made possible by financial investments. He also noted that the Consumer Financial Protection Bureau, established as a result of the recession, is holding finance to higher standards.

American researchers have dominated the economics awards in recent years; the last time there was no American among the winners was in 1999.

The Nobel committees have now announced all six of the annual $1.2 million awards for 2013.

The economics award is not a Nobel Prize in the same sense as the medicine, chemistry, physics, literature and peace prizes, which were created by Swedish industrialist Alfred Nobel in 1895. Sweden's central bank added the economics prize in 1968 as a memorial to Nobel.

This year's Nobel science prizes awarded ground-breaking research on how molecules move around inside a cell, particle physics and computer modeling of chemical reactions. Canadian short-story writer Alice Munro won the Nobel Prize in literature and the Organization for the Prohibition of Chemical Weapons was awarded the Nobel Peace Prize.

All awards will be presented to the winners amid royal pageantry on Dec. 10, the anniversary of Nobel's death in 1896.

___

Associated Press writers Stephen Singer in Hartford, Conn., Paul Wiseman in Washington and Don Babwin and Ashley Heher in Chicago, contributed to this report.


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Markets drift as debt ceiling deadline looms

LONDON — Three days from a deadline to increase the U.S. debt ceiling, investors were fidgety Monday and stocks drifted lower.

The U.S. has to increase the amount of debt it can carry by Oct. 17 or face a possible default on its debt, a scenario that could derail the U.S. economic recovery and roil international markets.

Negotiations between Republicans and Democrats over the weekend failed to reach a conclusion either on the raising of the debt ceiling or the partial shutdown of the U.S. government, which has now entered a third week.

Despite the possible nightmare scenario of a U.S. debt default, markets have proven more resilient than many analysts thought.

"Like the fiscal cliff in 2012 and the last debt ceiling scare in 2011, the view remains that it will all work out, eventually," said Michael Ingram, market strategist at BGC Partners. "They are probably right of course, but it still feels that equity markets have been approaching this issue with unusual complacency."

In Europe, Germany's DAX was down 0.1 percent at 8,712 while the CAC-40 in France was down the same rate at 4,214. The FTSE 100 index of leading British shares was actually trading higher, up 0.2 percent at 6,498.

In the U.S., the Dow Jones industrial average was down 0.5 percent at 15,164 while the broader S&P 500 index fell the same rate to 1,696.

Despite the public holiday, developments in Washington remain the focus of attention in financial markets, with Senate leaders from both sides set for further discussions. Democratic Majority Leader Harry Reid and Republican Minority Leader Mitch McConnell spoke by phone Sunday but failed to agree on a deal to raise the nation's borrowing authority above the $16.7 trillion debt limit.

Earlier, trading in Asia was muted, with markets in Tokyo and Hong Kong closed for holidays.

Outside of those major financial centers, China's Shanghai Composite Index rose 0.4 percent to 2,237.77 while South Korea's Kospi was off 0.2 percent at 2,020.27. Australia's S&P/ASX 200 shed 0.4 percent to 5,207.90.

Trading was also subdued in other financial markets. In currencies, the euro was up 0.3 percent at $1.3588 while the dollar fell 0.1 percent to 98.12 yen. In the oil markets, a price of benchmark New York crude was down 53 cents at $101.47 a barrel.


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High court weighs Mich. ban on affirmative action

WASHINGTON — After the Supreme Court ruled a decade ago that race could be a factor in college admissions in a Michigan case, affirmative action opponents persuaded the state's voters to outlaw any consideration of race.

Now, the high court is weighing whether that change to Michigan's constitution is itself discriminatory.

It is a proposition that even the lawyer for civil rights groups in favor of affirmative action acknowledges a tough sell, at first glance.

"How can a provision that is designed to end discrimination in fact discriminate?" said Mark Rosenbaum of the American Civil Liberties Union. Yet that is the difficult argument Rosenbaum will make on Tuesday to a court that has grown more skeptical about taking race into account in education since its Michigan decision in 2003.

A victory for Rosenbaum's side would imperil similar voter-approved initiatives that banned affirmative action in education in California and Washington state. A few other states have adopted laws or issued executive orders to bar race-conscious admissions policies.

Black and Latino enrollment at the University of Michigan has dropped since the ban took effect. At California's top public universities, African-Americans are a smaller share of incoming freshmen, while Latino enrollment is up slightly, but far below the state's growth in the percentage of Latino high school graduates.

The case is the court's second involving affirmative action in as many years. In June, the justices ordered lower courts to take another look at the University of Texas admissions plan in a ruling that could make it harder for public colleges to justify any use of race in admissions.

For Michigan Attorney General Bill Schuette, whose office is defending the measure known as Proposal 2, the case is simple.

"We are saying no preferences. We're not discriminating. We're saying equal treatment," Schuette said.

But the federal appeals court in Cincinnati that ruled on the dispute concluded that the matter was not that straightforward.

The issue, according to the 6th U.S. Circuit Court of Appeals, was not affirmative action, but the way in which its opponents went about trying to bar it.

That is why the ACLU's Rosenbaum said, "This is a case about means, not about ends. It is not about whether a state can choose not to have" affirmative action.

In its 8-7 decision, the appeals court said the provision runs afoul of the Equal Protection Clause of the U.S. Constitution's 14th Amendment because it presents an extraordinary burden to affirmative action supporters who would have to mount their own long, expensive campaign to repeal the constitutional provision.

That burden "undermines the Equal Protection Clause's guarantee that all citizens ought to have equal access to the tools of political change," Judge R. Guy Cole Jr. wrote for the majority on the appeals court.

The governing boards at the University of Michigan, Michigan State University and other public colleges set admissions policies at the schools, which included the use of affirmative action before the amendment passed.

Other groups seeking changes in admissions still could lobby the policymakers at the schools. Only proponents of affirmative action would have to change the constitution, the appeals court said.

The appeals court vote broke along party lines, and there were other oddities. Two Republican-appointed judges sat out the case because of their ties to Michigan schools. One judge in the majority, Martha Craig Daughtrey, is a senior judge and typically would not be allowed to take part in the full appeals court hearing. But she sat on the original three-judge panel that heard the case.

Civil rights and education experts who are not involved in the case at the high court said they expect the justices to overturn the 6th Circuit ruling.

Harvard University Law School professor Tomiko Brown-Nagin said five of the Supreme Court justices "are skeptical of race-conscious affirmative action" and could be expected to side with Michigan. Those justices are Chief Justice John Roberts, Samuel Alito, Anthony Kennedy, Antonin Scalia and Clarence Thomas.

But Brown-Nagin said impact of such a ruling would be muted because "affirmative action already is on life support."

Peter Kirsanow, a Republican member of the U.S. Commission on Civil Rights and an opponent of racial preferences, was more blunt. "I would eat a copy of the 14th Amendment if in fact the court upholds the 6th Circuit's decision," Kirsanow said.

Justice Elena Kagan will not take part in the Michigan case, just as she excused herself from last term's case about the University of Texas admissions program. Kagan worked on the cases while serving in the Justice Department before she joined the court.

The case is Schuette v. Coalition to Defend Affirmative Action, 12-682.

___

Follow Mark Sherman on Twitter at: http://www.twitter.com/shermancourt


22.27 | 0 komentar | Read More

Social Security raise to be among lowest in years

Written By Unknown on Minggu, 13 Oktober 2013 | 22.26

WASHINGTON — For the second straight year, millions of Social Security recipients, disabled veterans and federal retirees can expect historically small increases in their benefits come January.

An Associated Press analysis of preliminary figures suggests a benefit increase of roughly 1.5 percent. That would be among the smallest raises since automatic increases were adopted in 1975.

Next year's raise will be small because consumer prices, as measured by the government, haven't gone up much in the past year.

The size of the cost-of-living adjustment won't be known until the Labor Department releases the inflation report for September. It's been delayed indefinitely because of the partial shutdown.

The Social Security Administration has given no indication that raises would be delayed because of the shutdown, but advocates for seniors say the uncertainty is unwelcome.


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Shutdown impact: A few national parks reopen

The government shutdown continues with some hope for those who would like to visit the nation's national parks: The Obama administration said it would allow the states to use their own money to pay for park operations and Utah jumped at the chance.

The shutdown has had far-reaching consequences for some but minimal impact on others. Mail is being delivered. Social Security and Medicare benefits continue to flow. But the shutdown has been particularly harsh on those who rely on tourism, such as communities near the Grand Canyon and Yellowstone national parks.

A look at how services have been affected, and sometimes not, by Congress failing to reach an agreement averting a partial government shutdown:

TRAVEL

Federal air traffic controllers remain on the job and airport screeners continue to funnel passengers through security checkpoints. Furloughs of safety inspectors had put inspections of planes, pilots and aircraft repair stations on hold, but the Federal Aviation Administration says it asked 800 employees — including some safety inspectors — to return to work last week. More than 2,900 inspectors had been furloughed. The State Department continues processing foreign applications for visas and U.S. applications for passports, since fees are collected to finance those services. Embassies and consulates overseas remain open and are providing services for U.S. citizens abroad.

BENEFIT PAYMENTS

Social Security and Medicare benefits continue to be paid out, but there could be delays in processing new disability applications. The Social Security Administration is also delaying the announcement of the size of next year's cost-of-living adjustment, which was supposed to come out on Oct. 16. Unemployment benefits are also still going out.

FEDERAL COURTS

Federal courts, which have been using fees and other funds to operate since the shutdown began, will likely have enough money to operate until Oct. 17, and possibly Oct. 18.

After that, the courts will run out of money and shut down all nonessential work.

A limited number of workers would perform essential work, while all others would be furloughed. Each court would make a determination on what is essential and nonessential. Judges would still be able to seat jurors, but the jurors won't be paid until Congress provides funding. Court-appointed lawyers would also not get paid.

The Supreme Court opened its term Monday and says its business will go on despite the ongoing shutdown. The Supreme Court announced Thursday it would stay open through Friday, Oct. 18, including hearing two days of arguments this coming week.

RECREATION

All national parks closed when the shutdown began, but the Obama administration said Thursday it would allow states to use their own money to reopen some of them.

Utah was the first state to take up the offer, and all five national parks located in the state reopened Saturday. Colorado also reached agreement to reopen Rocky Mountain National Park and tourists returned Saturday to the Grand Canyon in Arizona. But several states say they are unlikely to participate.

Figures compiled by a coalition of retired park service workers indicate that some 700,000 people a day would have been visiting the parks and that the surrounding areas are losing $76 million in visitor spending per day.

In Washington, monuments along the National Mall have been closed, as have the Smithsonian museums, including the National Zoo. Among the visitor centers that have closed: Independence Hall in Philadelphia and Alcatraz Island near San Francisco.

The Statue of Liberty was to reopen Sunday with New York footing the bill. South Dakota, aided by several corporate donors, was paying the National Park Service to reopen Mount Rushmore beginning Monday.

National wildlife refuges were closed to hunters and fishermen just as hunting season was getting underway in many states. However, the Fish and Wildlife Service said late Friday that it's reopening several wildlife refuges, mostly in the Midwest, to allow pheasant and duck hunting.

CONSUMER SAFETY

Several protection agencies have curtailed their work.

The Nuclear Regulatory Commission shut down most operations on Thursday. However, resident inspectors will remain on the job and any immediate safety or security matters will be handled.

The Food and Drug Administration and Centers for Disease Control and Prevention say they can handle recalls and high-risk foodborne outbreaks, but discovering them will be more difficult because many of the people who investigate outbreaks have been furloughed. Routine food safety inspections were suspended, so most food manufacturers won't have to worry about periodic visits from government inspectors. U.S. food inspections abroad have also been halted. USDA inspectors are on the lines every day in meatpacking plants and are required to be there by law for the plants to stay open.

The National Transportation Safety Board is not investigating most transportation accidents, making an exception only if officials believe lives or property are in danger. The agency suspended 1,500 investigations that were underway before the shutdown. Nor has the board collected information on or sent investigators to the scene of 20 accidents involving U.S.-manufactured aircraft that have occurred around the globe since Sept. 30.

Auto recalls and investigations of safety defects have been put on hold during the partial government shutdown. The public can still file safety complaints through the National Highway Traffic Safety Administration's website, but no one has been investigating them in the new fiscal year. Manufacturers can still voluntarily recall vehicles, but major recalls are typically negotiated between the government and automakers.

The Consumer Product Safety Commission is no longer screening products at ports of entry to prevent potentially dangerous ones from reaching store shelves, such as children's products containing excessive levels of lead.

ENVIRONMENT

At the Environmental Protection Agency, the shutdown means the agency can no longer certify whether vehicles meet emissions standards, delaying some new models from reaching car lots. New pesticides and industrial chemicals are also in limbo because the EPA has halted reviews of their health and environmental effects. And the nation's environmental police are no longer checking to see if polluters are complying with agreements to reduce their pollution.

HEALTH AND RESEARCH

New patients are generally not being accepted into clinical research at the National Institutes of Health, but current patients continue to receive care. NIH has made exceptions to allow 12 patients with immediately life-threatening illnesses — mostly cancer — into research studies at its renowned hospital. Normally, about 200 new patients every week enroll in studies at the NIH's research-only hospital, many of them after standard treatments have failed. Medical research at the NIH has been disrupted as some studies have been delayed. With two-thirds of personnel sent home, the Centers for Disease Control and Prevention has been severely limited in spotting or investigating disease outbreaks such as the flu or that mysterious MERS virus from the Middle East. The FDA has halted the review and approval of new medical products and drugs. Nearly all staff at the National Science Foundation has been furloughed, and new scientific research grants are not being issued.

EDUCATION

The impact of the shutdown on school districts, colleges and universities has been relatively minimal. Student loans have continued to be paid out. But school trips to national parks and museums have been canceled, and some university researchers have been unable to apply for grants or access government databases. Vocational rehabilitation programs helping adults with disabilities could begin to feel a pinch because these agencies receive 80 percent of their funding from the federal government.

LABOR ISSUES

The Equal Employment Opportunity Commission will not investigate any charges of discrimination or respond to questions from the public during the shutdown. It will request delays in ongoing court proceedings and will not hold any hearings or mediations. The National Labor Relations Board, which investigates and remedies unfair labor practices, has virtually ceased to exist during the shutdown. More than 99 percent of its staff has been furloughed, postponing nearly every pending hearing, investigation and union election.

TAXES

The Internal Revenue Service says more than 12 million taxpayers who filed for automatic extensions in the spring have tax returns due on Tuesday. Those returns, the agency says, are still due, regardless of the shutdown.

The IRS suspended all audits and will not be processing any tax refunds during the shutdown. Got questions? Sorry, IRS call centers will not be staffed, though automated lines are still running.

ECONOMIC DATA

How well is the economy faring? That's harder to tell given the array of economic reports measuring the health of the nation's economy that have been postponed. The reports measure such things as monthly unemployment, inflation, imports and exports, and retail sales.

HOUSING

Some borrowers are finding it harder to close on their mortgages. The delays could worsen if the shutdown continues and possibly undercut the nation's housing recovery. Some lenders are having trouble confirming applicants' income tax returns and Social Security data due to government agency closures. Furloughs at the Federal Housing Administration are slowing the agency's processing of loans for some low- to moderate-income borrowers and first-time homebuyers. About 15 percent of new loans for home purchases are insured by the FHA. The Department of Housing and Urban Development won't be able to provide any additional payments to the nation's 3,300 public housing authorities during the shutdown, but those authorities should have enough money to continue providing rental assistance through the end of December.

WEATHER

The National Weather Service is forecasting weather and issuing warnings while the National Hurricane Center continues to track storms. The scientific work of the U.S. Geological Survey has been halted.

LAW ENFORCEMENT

The FBI estimates that about 80 percent of its 35,000 employees are working and says it is prepared to meet any immediate threats. However, activities are suspended for other, longer-term investigations of crimes. Training and other support functions have been slashed.

MILITARY

The military's 1.4 million active-duty personnel remain on duty. About half of the Defense Department's civilian employees were furloughed, but Defense Secretary Chuck Hagel ordered nearly all 350,000 back on the job. Congress has ensured $100,000 payments to families of fallen service members would continue, passing a bill signed by President Barack Obama on Thursday. The payments had been suspended during the shutdown, prompting the Fisher House Foundation to volunteer to make the payments until the program got up and running again.

The military has also stopped providing tuition assistance for service members taking college courses during off-duty hours.

VETERANS SERVICES

Veterans are still able to get inpatient care at hospitals and mental health counseling at vet centers and outpatient clinics because Congress approved funding for VA health care programs one year in advance. Operators are also staffing the crisis hotline. The VA says its efforts to reduce the backlog in disability benefit claims have been stalled because claims processors are no longer being required to work 20 hours of overtime per month. Access to regional VA offices has been suspended, making it harder for veterans to get information about their benefits and the status of their claims. If the shutdown continues into late October, the VA warns that compensation and pension payments to veterans will be halted.

NATIONAL SECURITY

The CIA furloughed a "significant" but undisclosed number of workers when the shutdown began. A week later, CIA Director John Brennan said he would begin bringing back employees deemed necessary to the CIA's core missions of foreign intelligence collection, analysis, covert action and counterintelligence. He said continuing dramatically reduced staffing levels posed a threat to the safety of human life and the protection of property.

___

Associated Press writers Kevin Freking, Sam Hananel, Joan Lowy, Matthew Daly, Frederic J. Frommer, Andrew Miga, Hope Yen, Deb Riechmann, Lauran Neergaard, Dina Cappiello, Pete Yost, Stephen Ohlemacher, Lolita C. Baldor, Jesse J. Holland, Seth Borenstein, Mary Clare Jalonick, Alicia A. Caldwell and Kim Hefling contributed to this report.


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Hope remains for global recovery beyond US impasse

WASHINGTON — Worries about a possible U.S. debt default cast a pall over weekend meetings of global financial leaders in Washington. But they ended with some hope over signs that the U.S. and European economies are pulling out of long slumps.

During three days of talks revolving around meetings of the 188-nation International Monetary Fund and its sister lending agency, the World Bank, top officials pressed the U.S. to resolve the political impasse over the debt ceiling. The standoff has blocked approval of legislation to increase the government's borrowing limit before a fast-approaching Thursday deadline.

U.S. Treasury Secretary Jacob Lew has warned that he will exhaust his borrowing authority Thursday and the government will face the prospect of defaulting on its debt unless Congress raises the $16.7 trillion borrowing limit.

"We are now five days away from a very dangerous moment," World Bank President Jim Yong Kim warned at the closing news conference on Saturday. "I urge U.S. policymakers to quickly come to a resolution before they reach the debt ceiling deadline. The closer we get to the deadline, the greater the impact will be for the developing world."

Kim said a default would be a "disastrous event" for poorer countries. It would also be certain to derail the already fragile global economic recovery.

"We know there are problems," Tharman Shanmugaratnam, the head of the IMF's policy-steering committee and Singapore's finance minister, told a news conference at the end of the IMF meeting. "We know there are near-term risks, the most obvious one being what's going on in the U.S. with regard to the fiscal deficit."

But one of the big near-term concerns, the expectation that the U.S. Federal Reserve will start scaling back its massive stimulus program for the economy, is actually pointing to a positive development, Tharman said. It means that the U.S. economy is strong enough to withstand a reduction of the stimulus.

IMF officials have been forecasting that the strengthening U.S. economy will be a main driver of the global economy in the coming year.

At the same time, developing country economies are slowing and their markets have been unsettled since May by anticipation that the Fed will soon begin tapering its $85-billion-a-month bond purchases, which poured cash into the economy to stimulate growth.

"The eventual normalization of monetary policy as economies recover in the West will be a net positive for the emerging economies," Tharman said, meaning that the strength of the major economies will help carry the global economy forward.

Lew told finance ministers that the United States understands the role it plays as "the anchor of the international financial system" and assured them the administration was doing all it could to reach a resolution on the debt.

An effort Saturday to pass a one-year extension of the borrowing limit failed to get sufficient votes. But in a more hopeful sign, negotiations began between Democratic and Republican Senate leaders to end the impasse.

Mario Draghi, head of the European Central Bank, was one of a number of officials who were guardedly confident that an eleventh-hour deal would be reached, as it has in similar standoffs in the past.

"I still think it is unthinkable that an agreement won't be found," Draghi told reporters Saturday. "If this situation were to last a long time, it would be very negative for the U.S. economy and the world economy and could certainly harm the recovery."

But once Draghi moved beyond the U.S. impasse, he sounded upbeat about the prospects for a European recovery. That in itself is a dramatic turn from the past three years, when global financial leaders were taken up with waves of crisis sweeping across the region and necessitating a series of international rescue loans.

The IMF called on emerging economies, which have been the drivers of the global economy in recent years, to undertake reforms that will help their economies better withstand the scaling back of monetary stimulus in the U.S. and other major economies.

When the stimulus money was flowing, emerging economies benefited from investments as investors were attracted by their relatively higher rates of interest vis-a-vis the United States and other major economies.

But many of those same countries that benefited from capital flows have been rocked since May, as the investment flows reversed and flowed back toward the U.S. as rates here began to rise.

Alexandre Tombini, the head Brazil's central bank, told the IMF steering committee that the worries about the U.S. and global economies might be overblown.

"A while ago there was an excess of exuberance and now perhaps an excess of pessimism," he said.


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Many Mass. towns wary of medical pot outlets

BOSTON — Voters convincingly backed a state law that allows marijuana to be used by people with debilitating medical conditions such as cancer, multiple sclerosis and Parkinson's disease. Yet many communities now appear hesitant to open their borders to facilities where the drug would be legally cultivated and sold.

Dozens of cities and towns have approved or are considering temporary moratoriums on medical marijuana outlets while others are drafting zoning rules to restrict where dispensaries can be located.

Moratoriums are in place in many communities where last November's ballot question passed by wide margins. In Sheffield, for example, 71 percent of voters endorsed medical marijuana; in Ipswich, just under two-thirds of voters approved it.

The local roadblocks worry patients who are waiting for access to the drug.

"Everyone says, 'I don't want it in my town, not in my neighborhood.' So where do I get it?" asks Donald Parker, of Middleborough, who says marijuana helps him control a rare condition that causes prolonged bouts of vomiting and weight loss.

Attorney General Martha Coakley ruled this year that towns could not ban dispensaries outright but may impose moratoriums or zoning restrictions. To date, Coakley has certified about 80 town moratoriums. A number of cities that aren't required to get Coakley's approval have also imposed moratoriums.

Local officials believe caution is warranted.

Geoffrey Beckwith, executive director of the Massachusetts Municipal Association, said cities and towns need extra time to prepare for the dispensaries and ensure they don't spring up in residential neighborhoods, near schools or in other inappropriate places. Zoning changes, he added, can take months to approve, particularly in towns where final decisions rest with a town meeting that convenes only once or twice a year.

"It gives them time, but it doesn't inoculate those communities from having a medical marijuana facility," Beckwith noted.

The state Department of Public Health gave initial clearance to 158 applicants that are competing for a maximum of 35 dispensaries allowed under the law. The agency hopes to award licenses by early 2014, but with some moratoriums extending to June 30 or longer, advocates wonder when facilities might actually open.

Valerio Romano, a Boston-based attorney who represents several applicants, said the moratoriums are a "real headache" for some clients.

Romano said he spends considerable time trying to convince municipal officials that their worst fears about the dispensaries are unfounded.

There will be "no loitering out front, no one driving back-and-forth stoned," he said.

Once open, the facilities will be nearly "invisible" to the general public, and agreeing to host a dispensary can benefit a community, Romano said. Patients coming from other towns may stop at local stores or restaurants, for example, and dispensaries could be subject to future excise taxes, yielding revenue for municipalities.

Some communities do appear more welcoming, including Shrewsbury, where 59 percent of voters backed medical marijuana.

"They didn't think it was their job to stand in the way of the public interest, which was demonstrated in the ballot vote," town manager Daniel Morgado said of a recent decision by selectmen against a proposed moratorium.

Two applicants have approached Shrewsbury, one interested in opening a medical marijuana dispensary and the other in operating a cultivation facility, and either could fit within Shrewsbury's existing regulatory framework without increased demands on police or other services, Morgado said.

The town of Deerfield also skipped a moratorium and is considering a plan to restrict dispensaries to industrial zones, said Wendy Foxmyn, interim town administrator.

Deerfield backed the ballot question by a 68-32 margin, but Foxmyn said residents' concerns are understandable.

"To vote for something and then realize it could come to our own town are separate issues for people to think about," Foxmyn said. Three companies have shown interest in a dispensary in Deerfield.

Matthew Allen, director of Massachusetts Patient Advocacy Alliance — the group that spearheaded the ballot question — said he remained encouraged that concerns could be overcome in time to begin opening medical marijuana facilities next spring.

Coakley has said no moratorium on dispensaries can linger beyond Dec. 31, 2014.

"Massachusetts has voted to allow for these, but we want to make sure that we also allow for public safety issues and public health issues" to be resolved, she said.


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Furloughed workers pinching pennies, volunteering

They're experienced research engineers and park rangers still in college, attorneys who enforce environmental regulations and former soldiers who took civilian jobs with the military after coming home from war.

And all of them have one thing in common: They were sent home on unpaid furlough last week after a political standoff between the president and Congress forced a partial shutdown of the federal government. More than 800,000 federal workers were affected at first, though the Pentagon has since recalled most of its idled 350,000 employees.

What these sidelined government employees are doing with their spare time varies as widely as the jobs they perform. Some are tightening their budgets at home, watching what they spend on food and other necessities, fearing it could be weeks before they earn another paycheck. Others are having a tough time keeping their workplace projects shelved and agency emails unread.

While Congress and the White House work on a deal to ensure furloughed workers receive back pay once the shutdown ends, some expenses can't be put off, whether it's replacing a broken furnace for $6,500 or buying diapers for a baby due before the month ends.

Here are the stories of just a few of the government workers directly affected by the shutdown.

___

As the government shutdown began its second week, Donna Cebrat was focused on stretching each dollar of her savings under the assumption she might not be able to return to work for a month or longer.

"Instead of having a dinner, I'll have a bowl of cereal. Maybe for dinner and lunch. Or maybe I'll go down to McDonald's for a hamburger off the dollar menu," said Cebrat, 46, who works for the FBI at its office in Savannah, Ga. "Lots of budget cuts. Not that I was living extravagantly before."

Cebrat makes her living processing requests for public access to FBI records made under the Freedom of Information Act. She lives alone in a middle-class suburb and estimates the money in her savings account could last her anywhere from two to six months.

She checks headlines for any news on negotiations between the president and Congress, but said she avoids reading full stories or watching shutdown reports on TV that would only bring her down further.

"I don't need to see the name-calling," Cebrat said. "I just need to see the headline."

Otherwise Cebrat has spent her days sanding and repainting her bathroom walls — a new tub, toilet and vanity will have to wait until next year — and taking walks in her neighborhood. She's avoided trips to the mall or the movies.

___

Catherine Threat sat at the bar, typing a note to her friends on Facebook.

"How do I serve my country from this barstool in the only restaurant in this tiny town outside a training base that is mostly shut down?" she wrote.

The 40-year-old staff sergeant in the Army Reserve returned from Afghanistan in July, taking a civilian job at Fort McCoy in central Wisconsin.

Then, last week, she and most of her colleagues were furloughed — a maddening existence for a woman who isn't used to sitting still for very long.

So she headed to Chicago to help fellow veterans patrol the streets to help keep school children safe. It wasn't much different from the foot patrols she did during her three years in Afghanistan.

Foot patrols there created a presence, built bonds and deterred violence.

"That's what we're doing here, too," she said as she stood with other veterans outside an elementary school in a neighborhood that has had gang violence and other crime.

The assignment was short-lived. Threat was called back to Fort McCoy, along with hundreds of other civilian employees.

She didn't see the recall as a victory "because there are still a lot of people out of work" because of the shutdown.

But either way, she was grateful for the chance to serve in Chicago.

"Sometimes, I think this has almost been better for me. I've gotten more out of it than I'm contributing," she said, quietly monitoring children walking by her.

"But hopefully, I contributed something."

___

Jonathan Corso sat at his dining room table, the signs of a terrible week all around him.

At his feet, his family's beloved dog, Dixie. The sad-eyed, 14-year-old spaniel/mutt has terminal cancer and the day before had been given only about a month to live. Under his feet, the banging of workmen installing a new $6,500 furnace at his Decatur, Ga., bungalow after the old one broke.

And there was Corso, home at 9:30 on a Friday morning. He would normally be at work at the Atlanta regional office of the Economic Development Administration, a small federal agency that provides help and construction grants to industrial parks, colleges and local governments.

Corso, 44, and his wife, Liza, who works at the Centers for Disease Control and Prevention, were both furloughed.

In recent years, their federal jobs seemed stable while people working in state and local government and many private companies saw wage freezes or layoffs.

But now this.

The couple has savings, and they and their 7-year-old son should be fine financially for a while.

There have been a few silver linings: The couple went to lunch together on a weekday. Corso, a marathoner, began his daily 10-mile run at 6 a.m. rather than his more onerous 4:45 a.m. usual start time. That allowed him to stay up one night to watch a baseball game.

"We're trying to make the best of it right now," Corso said.

___

Rob Howard has been working through the shutdown, but not at his day job as an information technology specialist for the federal Court Services and Offender Supervision Agency, which oversees people on probation and supervised release.

Instead, he's volunteering for So Others Might Eat, a Washington organization that serves meals to the poor and homeless. On Oct. 4, he was a coffee server. Two days later, he washed dishes after lunch.

"I just want to keep busy during this time," said Howard, 45, who lives in Upper Marlboro, Md.

He has also gotten work done around his house, finally finding time to redo the floor in an upstairs bathroom. He took out the old linoleum and put down some black and white tile, which he said sat in his garage "forever."

Howard also spent time cleaning.

"I could probably have a party at my house right now because it's spotless," he said.

One day he made two trips to the gym.

"I can't stay idle too long or I'll lose my mind," he said.

___

Darquez Smith found himself furloughed from his job with the National Park Service just as his fiancee is due to give birth to their daughter later this month.

Smith, 23, of Xenia, Ohio, is spending his time off looking for a new job. Working as a park ranger at the Dayton Aviation Heritage National Historical Park, which tells the story of the Wright brothers, is his only source of income.

"Mentally, it's definitely no fun at all," said Smith, who has an interview lined up with a company next week. "It's never fun to be out of work and not have the ability to go to work, and still have bills to pay."

Smith said he's looking for work in information technology and is pursuing an IT degree at Central State University.

By the time rent is due Nov. 1, Smith said he'll need to be back at his Park Service job or have found other work. Utility bills and car insurance will soon follow, along with the added costs of raising a newborn.

"For me as a student, a full-time worker paying all the bills myself, with a lot of responsibilities, there's never really a day off or a fun day," he said.

___

During the government shutdown in 1995 and 1996, Dan Madrzykowski would occasionally sneak onto the Gaithersburg campus of the National Institute of Standards and Technology and check on some lab work or crunch some numbers.

"NIST is not really a bureaucracy; it's more a series of labs. People are driven differently," said Madrzykowski, a fire protection engineer from Damascus, Md., who's worked for the agency for 28 years.

This time, security is tighter after 9/11, and rules forbidding furloughed employees from working are strictly enforced.

So Madrzykowski, whose work has helped develop better tactics and equipment for firefighters, is devoting time to projects for a professional group, the Society of Fire Protection Engineers. And he's had to break his habit of answering email on his government-issued Blackberry from firefighters around the country.

Last week, Madrzykowski and colleagues had planned to begin work on developing standards for radio communications equipment to function in the extreme temperatures that firefighters face. The research is used by industry groups to set standards for equipment manufacturers.

That work will wait.

Madrzykowski said his biggest worry is that NIST won't be able to recruit and retain young researchers because government work no longer has the stability that once made it attractive.

"I'm old. My wife works. We've got a little bit of a cushion," he said. "But for young people in a metro area, they're barely making it. We've lost several young people to private industry."

___

Bynum reported from Savannah, Ga. Associated Press writers Martha Irvine in Chicago, Mike Stobbe in Atlanta, Bridget Murphy in Boston, Jessica Gresko in Washington, Amanda Lee Myers in Cincinnati and Matthew Barakat in McLean, Va., contributed to this story.


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