Thursday, May 31, 2007

Babysitter set to die for 1994 death of 3-month-old


Associated Press

A neighbor in a suburban Austin neighborhood appeared to be the perfect babysitter for Eryn Baugh’s infant son and his 2-year-old sister.

“She’s the most sweet, endearing person in the world and put forward this good Christian front,” Baugh said of Cathy Lynn Henderson, who lived two blocks away. “She could sell snow to an Eskimo.”

But just weeks after Henderson started working for the Baughs, 3-month-old Brandon was dead and Henderson had fled the state. The infant’s body was found buried 60 miles away with his skull crushed, wrapped in his yellow-trimmed white blanket and stuffed into a box that previously held Bartles & Jaymes wine coolers.

Henderson, 50, is set to die in less than three weeks for the 1994 slaying that made her one of the most hated women in Texas. She would be just the 12th woman among the nearly 1,100 convicted killers executed since capital punishment resumed in the United States in 1977.

Henderson insists Brandon died in an accidental fall and that her decision to bury him and flee was made in panic, not in cold blood.

‘I wasn’t thinking clearly’
“It’s apparent I wasn’t thinking clearly,” Henderson told The Associated Press recently from the state’s female death row outside Gatesville.

“I think I was in shock, disbelief. I just didn’t know what I was doing. That baby was dead. I didn’t want to deal with that. There was too much sorrow. It hurt, it hurt,” she said, tearing up. “When I look back at it, it does kind of look like I was guilty, doesn’t it?”

Henderson’s case has been championed by Sister Helen Prejean of “Dead Man Walking” fame.

Supporters say new engineering data interpreting Brandon’s skull fracture could better support Henderson’s contention the child’s death was an accident and her life should be spared.

“What I would like to happen is to either get a new trial or charge me with what I’m really guilty of, and murder is not one of them, even injury to a child is not one of them,” Henderson said.

“I think involuntary manslaughter, negligence, something in those areas, because I did not wake up to intentionally harm Brandon,” she said.

Henderson is scheduled to be executed on June 13. It was postponed from last month after her lawyers won a delay.

“We’re getting experts, a new kind of expert for head injuries,” said Prejean, based in New Orleans. “They look into the physics of it.”

Suspect recalls incident
Recalling that morning 13 years ago, Henderson said Brandon was cranky, so she was swinging him around to try to calm him.

“I fell. I stepped on a toy. He flew out of my hands. He hit the bottom of the garage, which had been converted to a playroom,” she said.

After hitting the concrete floor, he stopped breathing, she said. Henderson said she tried CPR for an hour.

Why not call 911?

“I knew that was a dead end,” she replied. “I had tried for too long myself. What good would it have been?”

She fled, driving Brandon’s sister and her own preschool daughter to the home of a relative, paying an 11-year-old there $10 to watch them.

“Even though I reacted abnormally, that doesn’t make me a bad person,” she said, crying. “I just didn’t want to face what happened. I felt responsible. I took a life. That is very hard to deal with, especially a child.”

Prosecutors disagree
Travis County prosecutors and Brandon’s parents aren’t buying it.

“If a child sustains an accidental fall, we’re going to freak out and get help,” prosecutor Dayna Blazey said. “We’re going to run to a neighbor, call 911. That’s human nature — not to put the baby in a wine cooler box, throw it in the trunk of a car and bury it in a shallow grave. Then she flees to Missouri and changes appearance.”

A medical examiner testified Brandon’s injuries were inconsistent with an accidental fall of about 4 feet but were the equivalent of a fall from a two-story building.

“We’re not talking about linear skull fractures,” Blazey said. “The entire back of his head was shattered.”

A change of mind
But in a new appeal filed late last week, Henderson’s lawyers included an affidavit from the medical examiner who had previously testified against her.

Dr. Roberto Bayardo, who retired last year as Travis County’s chief medical examiner, said based on new scientific evidence presented to him by the experts hired by Henderson’s legal team, he “cannot determine with a reasonable degree of medical certainty whether Brandon Baugh’s injuries resulted from an intentional act or an accidental fall.”

Eryn Baugh said Henderson had him completely fooled.

“Just tell me what happened that day. Tell me exactly what she did and why she did it. Then she can ask me for forgiveness. I’ll probably give it — once she drops the lies and tells the truth. There’s been too many years of lying. We just want her to come clean,” he said.

Henderson insisted she did her job well.

“I took good care of Brandon,” Henderson insisted. “In my mind, I thought I was doing the Baughs a favor by not having to tell them their son was dead.”

Wednesday, May 30, 2007

Negotiating tips for a new job

By Kate Lorenz, CareerBuilder.com Editor

As if the resume writing and panel interviews weren't grueling enough, now you've got to negotiate a salary before you can successfully end your job hunt. "If you want something, you had better negotiate for it." That's the bottom line according to authors Robin L. Pinkley and Gregory B. Northcraft in their book Get Paid What You're Worth. They note, "Employers routinely will offer you less than they ultimately expect to compensate you with the expectation that you will negotiate." To help you nail the big bucks, heed these Do's and Don'ts.

Do arm yourself with as much information as possible by checking out industry web sites for your occupational and geographic areas and others that specialize in salary information or the U.S. Bureau of Labor Statistics.

Don't overlook information from consulting firms. Mike Nichols, Vice President of Compensation, Benefits and HRIS for Cendant Corporation, places the most confidence in surveys conducted by major consulting firms. "I frequently seek out surveys from Mercer, Hewitt, Towers Perrin and Watson Wyatt," says Nichols. While most of the survey data from these firms is cost-prohibitive for an individual, there are a lot of good articles and information available from their web sites to help you understand how companies view and determine compensation levels.

Do withhold salary information for as long as possible. "Salary information is often used by employers as a screening tool. You want to keep all salary information away from a potential employer for as long as possible so that you're not ?screened out' before you even get your foot in the door," suggests Denise Cooper, Vice President of Human Resources for Peoples Energy in Chicago.

Don't feel pressured to divulge a specific figure on an employment application. Instead, write "open," "negotiable" or "competitive" on every application form you complete.

Do delay the salary negotiation process for as long as possible. Each minute spent with your prospective employer is another minute you can use to explore the job and the types of responsibilities it entails. This will allow you more time to focus on your strengths and accomplishments as they relate to the job and demonstrate your value.

Don't be shy about outlining the skills and experience you will bring to your employer and how they will help the organization meet its goals or solve a problem. If there's ever a time to toot your own horn, the time is now. Know what the value of your skills, experience and achievements are worth in the current marketplace.

Do let the prospective employer make the first move into the salary negotiation phase. Knowing what the salary range is for the job will give you an idea of the interviewer's negotiating parameters and will help you gauge how much selling you may have to do.


Don't give the employer an actual figure if you are asked directly about the salary you want. Instead, turn the question around and ask what salary range would be offered in the company for this type of job for someone with similar years of experience, level of expertise and knowledge of the business.

Do be honest about your current salary. Falsely inflating your pay or padding numbers is dishonest and can come back to haunt you when your new employer verifies your past employment . . . and salary.

Don't act too eager to accept, even if the offer was more than you expected. Most employers have some room to negotiate and you should strongly consider making a counter offer. Pinkly and Northcraft found of the companies they interviewed, "Eighty percent told us that the job applicant who negotiates in a professional manner would make the best impression. Only 20 percent said they would be most impressed by the applicant who accepted the offer as made."

Do be professional in your negotiations. Keep the salary discussion positive and upbeat by focusing on why you should be paid what you desire and the value the employer will receive in return.

Don't let your current salary limit your viewpoint of what you're earning potential might be. If your research shows that the industry is paying more than your were being paid, hold out for this higher amount and remind the interviewer of your qualifications and experience.

Do be realistic in your expectations. Some candidates have inflated opinions of what they should be earning. Consider the industry, the economy, your experience and the competition from other potential candidates.

Don't let the employer rush you into accepting a salary that you know you'll be unhappy with soon after you take the job. Let them know that the salary offer is less than what you desire by saying something like, "Taking my experience into consideration and knowing that I have the ability to jump right in and make a difference, I really feel strongly that a salary of $55,000 would be appropriate."

Do aim high. Keep in mind that you can always lower your desired salary expectations, but it's impossible to inflate it once you indicate what would be acceptable to you.

Tuesday, May 29, 2007

Brazil offers drug factory to AIDS-ravaged Mozambique

By Charles Mangwiro

Brazil has offered to build a $23 million pharmaceutical plant in Mozambique that will provide drugs to treat HIV/AIDS, malaria and other diseases, Mozambique's national newspaper said on Tuesday.

Brazil, a leading pharmaceutical manufacturer, will monitor quality and transfer technology to the proposed plant, which would produce a range of drugs, including generic antiretroviral drugs (ARVs) to fight HIV/AIDS, Noticias reported.

The plan was presented to the Mozambique government by Brazil's ambassador in the southern African nation.

Mozambique, one of the poorest nations on the continent, is struggling to find the money to rebuild its dilapidated health-care system, which was neglected during a 17-year civil war that ended in 1992.

The former Portuguese colony has been hard hit by the AIDS epidemic, with an estimated 1.6 million of its 18 million people infected with HIV. Only a fraction of those requiring ARVs are on treatment, with most of the drugs imported from India.

The offer to build the pharmaceutical plant was first raised by Brazilian President Luiz Inacio Lula da Silva during his 2004 official visit to Mozambique. Lula said he wanted drugs from the plant to be available to other African nations as well.

Brazil claims the use of generic anti-retrovirals has cut its AIDS mortality rate in half.

Mozambican Health Minister Ivo Garrido said the government would decide next month whether to approve the Brazilian proposal. "We will have to study it very carefully," he was quoted as saying by Noticias.

Friday, May 25, 2007

Gas price Web sites see skyrocketing traffic

GasBuddy.com, GasPriceWatch.com seek to serve deal-hunting drivers

By Robert Weller

The higher gasoline prices go, the more money business Web entrepreneur Jason Toewes makes.

He started an Internet site, GasBuddy.com, in 2000 to track daily gasoline prices using volunteers to e-mail what they find. "Hardly anybody ever used it," Toewes, of Brooklyn Park, Minn., recalled.

By 2004, 1 million people were visiting the site daily, although the numbers dropped when prices went down.

But at the pace hits were being recorded Thursday, the site was likely to break its record of 4 million visitors, Toewes said. As gasoline prices have risen, so have the hits on his site and another, GasPriceWatch.com.

"We have had to buy more servers and it looks like we will need more," he said.

GasBuddy.com offers information from 180 locations in the U.S. and Canada, including every major city. The site said the average price nationally in the U.S. was $3.22 for unleaded Thursday afternoon, compared with $2.86 a year ago.

Brad Proctor, founder of GasPriceWatch.com in Centerville, Ohio, said his site has added prices for ethanol, biodiesel, truck diesel and ultra-low-sulfur diesel. Hits on his site have doubled. As many eight people log in every second during peak periods, he said.

Dan Gilligan, president of the Arlington, Va.-based Petroleum Marketers Association of America, said the system is a good idea but warned consumers to remember that if they drive more than 10 miles to save a nickel, they are losing money. He also said there's no guarantee the price will be the same when they arrive.

"Many retailers are getting price increases twice a day. You may have a price increase within six hours," he said.

Other businesses are also tying technology to drivers' increasing efforts to find a deal.

A cell phone provider, Mobio Networks, launched a free service this week telling its customers the cheapest gasoline prices in their area.

BetUS.com, a sports betting Web site, was posting odds of the national average exceeding $3.50 before the end of the year.

Toewes' company, GasBuddy Organization Inc., claims to monitor 900,000 stations with several hundred thousand registered volunteers. GasPriceWatch.com says it tracks 170,000 stations.

People can send a message to gas(at)gasbuddy.com with a ZIP code in the text area, and the site will reply with the cheapest nearby stations.

The Web site also has a national map for those planning trips.

Relying on volunteers for price information does have its flaws. People occasionally make false reports of unrealistically low prices, Toewes said. "We do monitor them and we take them off and ban the person who sent it," he said.

He also gets calls from time to time from stations embarrassed to be on the list with the highest prices. "They don't want to be seen as gouging people," he said.

Supermarkets and stores such as Costco Wholesale Corp. locations often are the cheapest "because they use gas as a loss leader," Toewes said.

Calls and e-mails to the Web site lead him to believe the shock of $3 gasoline has worn off.

"People are budgeting for it," he said. "But many people will just put five bucks in until they can find a cheaper station."

Toewes said despite its increasing number of hits, the Web site has not made millionaires of him or co-founder Dustin Coupal, an ophthalmologist.

"But we do have enough advertising to sustain the operation," he said.

7 Highly Rated Stocks on Sale

By Matt Koppenheffer

I'm always looking for a good deal, whether that means buying an extra box of Cocoa Puffs when they're on sale, or pouncing on undervalued stocks. The idea that anybody would sell a stock for less than its worth may seem silly, but legendary value investor Ben Graham tells us, by way of allegory, how we can look out for these situations.

In The Intelligent Investor, Graham introduces readers to a crazy guy named Mr. Market. Mr. Market's game is to pay you house calls on a daily basis, offering to sell you interests in businesses he owns, or to buy from you interests in businesses you own. Sometimes, Mr. Market will show up at your door very excited, offering you premium prices for your holdings. Other times, he'll be totally depressed about the future, offering to sell you what he has for as low as pennies on the dollar.

To find some of the stocks that Mr. Market is depressed about, I've turned once again to The Motley Fool's CAPS investor community. Each of the companies below had been given a five-star rating (the highest) by our community of investors just 30 days ago:

Stock

30-Day Return

One-Year Return

Current CAPS Rating

ProCentury (Nasdaq: PROS)

(22.28%)

37.30%

****

CT Communications (Nasdaq: CTCI)

(17.87%)

37.21%

*****

Gammon Lake Resources (AMEX: GRS)

(15.93%)

10.96%

***

Northgate Minerals (AMEX: NXG)

(13.9%)

(10.73%)

*****

Aurizon Mines (AMEX: AZK)

(14.07%)

19.57%

*****

United Retail Group (Nasdaq: URGI)

(11.9%)

(13.35%)

****

ICT Group (Nasdaq: ICTG)

(15.4%)

(30.65%)

****

Data from Motley Fool CAPS as of May 22.

As the chart shows, these stocks are all still very well-regarded by the CAPS community despite their underperformance over the past month. While these are not formal recommendations, they could be a great place to kick off some further research. I'll even get you started with some thoughts on ProCentury.

A question of risk
If you face a major financial risk, there's a good chance that you can find an insurer willing to take some of that risk off your hands. Whether it's a car accident, a hurricane, or even death, at least some financial solace can be found for most of life's major mishaps.

Many types of risks, particularly those that businesses take on, do not work well with the one-size-fits-most approach that works for standard lines like life or car insurance. That's where insurers like ProCentury step in. ProCentury is a niche property and casualty insurer covering small and midsize businesses such as day care facilities, retail stores, and fitness centers on risks outside those covered by mainline insurers.

Investors let the company know they weren't happy with its recent earnings announcement by cutting the price on the stock 15%. Though earnings per share met Wall Street's expectations, up 14% year over year, revenue fell short. In particular, gross premiums for the quarter were up just 1% year over year, and net premiums declined slightly.

ProCentury's CEO attributed the slow premium growth to competition, along with tightened underwriting standards on an underperforming program. The competition is worrisome, but it might be encouraging that the company is more willing to show slow growth than try to undercut competitive pricing.

Profitability for the quarter was salvaged by strong growth in investment income and a slightly lower combined ratio -- the percentage of earned premiums spent on losses and operating expenses.

CAPS players seem to see the recent dip as a good opportunity to take a look at ProCentury shares. Damondicus said the company's "excellent fundamentals and long-term growth make this pick easy." Prior to the quarter, CAPS All-Star adprintz saw "very solid fundamentals across the board on [ProCentury]." He added that "I love a lot of the insurers right now because they are cheap compared to historical values."

Is ProCentury done shedding value and ready to take off? Let the community know what you think -- head over to CAPS and share your thoughts with the other 29,000 players currently part of the community. Even if you'd prefer to pass on ProCentury, you can check out a couple of the other stocks listed above, or any of the 4,500 stocks rated on CAPS.

Invest in Shipwrecks and Dead bodies



Odyssey Marine and Premier Exhibitions aren't household names, but thanks to some macabre moneymakers, these small stocks are soaring.

By Toby Shute, The Motley Fool

Sure, the weather's a bit gloomy as I write from mercurial New England, but I promise I haven't suddenly gone Goth on you. Though I really am going to tell you about two small companies that profit from shipwrecks and dead bodies, my proffered investment advice today is figurative.

One of the things the "Motley Fool Hidden Gems" team seeks in an investment is dominant positioning in a profitable niche business.

Sometimes, that means an unusual business, so you ought to keep an open mind when discovering companies that strike you as a little weird, smelly or macabre. This niche idea goes a long way toward explaining why these two companies have absolutely stomped the market over the past five years.

Selling shekels from the seafloor

On Friday, I learned about a fascinating company that extracts riches from the ocean's depths -- but not in the same manner as offshore driller Transocean (RIG, news, msgs). Nope, this company literally finds money lying on the seafloor.

Odyssey Marine Exploration (OMR, news, msgs) is a self-described shipwreck company that has potentially discovered the largest shipwreck treasure cache of all time. Reports place the total number of gold and silver coins recovered from this particular site at north of half a million. I hope none of my readers had casually bet against this quixotic little company either in CAPS or with real coin o' the realm, because the shares spiffy popped upon news of the find. In other words, they rose by more than the amount investors paid for shares as recently as early April.

There were a few clues indicating that Odyssey Marine is no half-baked scheme. For starters, there were some successful people investing -- or perhaps speculating -- here before Odyssey found its treasure. The top shareholder is GLG Partners, a London hedge fund whose principals are all former Goldman Sachs (GS, news, msgs) folks. Fortress Investment Group (FIG, news, msgs), which just recently had its IPO, is second in line.

More crucial is the profile of people involved. A professor of maritime law who has, in private practice, argued federal cases on shipwreck disputes sits on the board of directors.

Both Odyssey co-founders hold substantial personal stakes in the firm and have been plying their trade for decades. Most notably, one of them, Greg Stemm, has been conducting shipwreck excavations since 1986, and the United Nations has tapped him to weigh in on the Draft Convention for the Protection of Underwater Cultural Heritage. This fellow is no mere hobbyist.

Media coverage of the find was ambiguous regarding how Odyssey might monetize its newfound treasure-trove.

But this is where things get even more interesting. The company is emphatically not looking to cash in immediately. There's a separate marketing operation in place intended to maximize the lifetime value of the assets the company acquires. The coins will eventually be appraised, researched and presented to collectors and investors as individual artifacts. This branding initiative will reportedly extend to TV specials and museum exhibitions.

Is the value of the reported discovery a sure thing? Certainly not. The Spanish government, for one, is up in arms, claiming that the company has no right to the wreck site's cultural artifacts. I don't know how this will turn out, but the company does appear to have the right lawyer.

Bodies in motion

Speaking of exhibitions, another oddball company is Premier Exhibitions (PRXI, news, msgs), the operator behind extremely popular exhibits from the RMS Titanic and on human anatomy. Last July, Foolish colleague Ryan Fuhrmann noted that "Premier has obtained exclusive rights to recover objects from the Titanic wreckage off Newfoundland. These recoveries have spawned the related tours, licensing, and merchandise revenue." That's strikingly similar to Odyssey's operating model.

The Titanic business, however, seems to be heading toward an iceberg. Though it holds salvor-in-possession status with regard to the wreck site, Premier has been unable to prevent other operators from photographing and taking video recordings of the site. The company's legal claim to various artifacts recovered to date and its future status as sole salvor both seem to be tenuous over the long term.

Fortunately for Premier, the Titanic exhibits accounted for only 28% of last fiscal year's revenues. Now there's a new exhibit in town . . . or, rather, all over the country and in select cities around the world. Premier has found a major hit with its quite graphic human-anatomy exhibits, billed "Bodies ... The Exhibition" and "Bodies Revealed." Revenues have more than quadrupled since 2005, largely because of the popularity of these exhibits.

Premier has an interesting business model, so despite the challenges it may face in obtaining high-quality human cadavers -- legally, anyway -- I gave the company a thumbs-up in Motley Fool CAPS, the community-intelligence phenomenon that is sweeping Fool Nation. It's been my second-best pick ever, after fellow spiffy-popper aQuantive (AQNT, news, msgs). Do I regret not picking up actual shares? I guess, kinda. But there are reasons to question the long-term investment merit (there is no other kind) of both Premier and Odyssey, as I hope I have made clear.

Diving deeper

At the outset of this piece, I mentioned the rubric that Tom Gardner and the rest of the Hidden Gems crew apply in their search for long-term small-cap winners. Odyssey Marine and Premier Exhibitions fit some of these criteria, but even though they sport solid insider ownership and operate in decidedly niche businesses, neither company has demonstrated the long-term, consistent profitability that typically earns a company a formal nod in the newsletter.

But don't despair. There are hundreds, perhaps thousands, of equally weird small companies out there, many with even brighter prospects. So dive in and see what's lying in the market's depths!

Check out MSN Money's new CAPS stock ratings

Please note that I'm not recommending them for purchase today -- both stocks have moved up dramatically, and a lot of optimism is now priced in. But they do illustrate my broader point.





Check out MSN Money's new CAPS stock ratings

Thursday, May 24, 2007

Currency impasse overshadows U.S.-China deals

Reuters

The United States and China struck civil aviation and financial sector access deals on Wednesday but they made no headway on the divisive issue of Chinese currency reform, stoking anger on Capitol Hill.

Lawmakers said they would move ahead with proposals to slap tariffs on Chinese imports because of Beijing's reluctance to redress the huge trade imbalance between the economic giants with a revaluation of the yuan.

The anger in Congress overshadowed U.S. Treasury Secretary Henry Paulson's claim of "tangible results" in the second leg of a "strategic economic dialogue" with Chinese Vice Premier Wu Yi.

Wu, for her part, said the "complicated" relations between Washington and Beijing needed careful handling and cautioned against retaliatory steps.

"It calls for direct consultation and dialogue between us, instead of easy resort to threat or sanctions," Wu said after two days of closed-door talks with Bush administration officials.

The official China Daily newspaper said in an editorial that both countries bore responsibility for the trade gap between them and warned against U.S. impatience for a rapid cure.

"The dialogue made it clear that a confrontational approach focusing on so-called immediate results only complicates the situation and adds nothing to problem solving," it said.

China's stellar economic growth was indeed too dependent on exports, the daily said, but it was also "all too obvious that the U.S. consumers spend too much and save too little, resulting in their country's current account deficit."

Tension was heightened during the talks by mounting concern about the safety of Chinese exports after reports about toxic toothpaste and contaminated pet food.

U.S. officials said they stressed to their Chinese counterparts that food and medicine safety was a "top concern."

"Recent events have forced very clearly as one of our top concerns the safety of food and medicine," Health and Human Services Secretary Mike Leavitt said.

CHINA "DOING ITS BEST"

The most concrete outcome of the talks was a deal committing China to remove a bar on new foreign securities firms and resume issuing licenses for securities companies, including joint ventures, in the second half of 2007.

That was a coup for former Goldman Sachs chairman Paulson, who has made gaining greater access to the Chinese financial sector a key objective.

The two sides also agreed on a new aviation pact that U.S. transportation officials said would more than double the number of passenger flights between the two countries by 2012.

Meanwhile, Chinese Vice Commerce Minister Ma Xiuhong said a Chinese business delegation on a 24-state U.S. tour had signed $32.6 billion in deals so far.

The buying spree appeared timed to soften U.S. congressional criticism of China's practice of managing its currency, the yuan, in a way that U.S. lawmakers and companies complain makes Chinese products unfairly cheap in U.S. markets.

But the chairman of the powerful House of Representatives Ways and Means Committee, New York Democrat Charles Rangel, said after a meeting between Wu and committee members that "we're moving forward" on tariff legislation.

Rangel favors a bill to let the Commerce Department levy duties on Chinese goods to offset the "subsidy" effect of China's exchange-rate policies.

Rangel's swift decision suggested that time was running out for Paulson to show that persuasion is sufficient to get China to permit the yuan to appreciate more quickly.

In July 2005, China abandoned an 11-year-old practice of holding the yuan fixed against the dollar and revalued it by 2.1 percent. But since then it has risen only a further 6 percent, frustrating U.S. legislators.

The head of China's central bank, Zhou Xiaochuan, said China had pressures of its own to deal with that made it hard to speed up currency reform.

"They may think that we can accelerate the speed of reform, but we think that we already try our best, and domestically we have pressure to slow down," Zhou told reporters after meeting the lawmakers.

China remains an emerging-market economy only partly driven by free-market forces, but its cheap labor force and exporting prowess have enabled it to become the world's fourth-largest economy, behind the United States, Japan and Germany.

Japanese Stocks Climb; Dollar Up vs. Yen

Associated Press


Japanese stocks rose slightly Wednesday for a third straight session, led by bank shares.

The benchmark Nikkei 225 stock index rose 25.07 points, or 0.14 percent to finish at 17,705.12 on the Tokyo Stock Exchange. On Tuesday, the index added 0.7 percent.

Traders said the market is vulnerable to overseas factors, particularly a drop on Wall Street or signs of a slowdown in the U.S. economy, Japan's biggest export market.

"The Nikkei is still top-heavy at 17,500, so banks may be sold on dips if negative factors hit, such as a U.S. stocks fall overnight," said Yutaka Miura, manager at Shinko Securities.

Gainers included Shinsei Bank Ltd., which rose 2.35 percent to 524 yen ($4.30). Auto and machinery shares also advanced, with Mazda Motor Corp. climbing 2.01 percent to 661 yen ($5.42) and Fanuc Ltd. rising 0.18 percent to 11,240 yen ($92.13).

The broader Topix index, which includes all shares on the exchange's first section, added 8.54 points, or 0.49 percent, to 1,740.08 points.

In currencies, the U.S. dollar was trading at 121.64 yen at 2:50 p.m. Wednesday, up from 121.57 yen late Tuesday in New York. The euro rose to $1.3460 from $1.3454.

Chinese Ministers, Bush to Meet on Trade

Associated Press
Preparing to meet President Bush, Chinese ministers sought to soothe congressional anxiety about Beijing's trade practices after high-level economic talks yielded few results.

Discussions Wednesday between senior Bush administration officials and the largest high-level Chinese delegation ever to visit the United States also failed to reach a breakthrough in the countries' biggest dispute: China's undervalued currency.

After the talks, Vice Premier Wu Yi, leading the Chinese group, met privately with frustrated congressional leaders. She also planned separate meetings Thursday with Bush and senators.

Wu, speaking through an interpreter, said Wednesday that her discussions with House Speaker Nancy Pelosi and other lawmakers were "very good," but she provided no other details.

After the meeting, Ways and Means Committee Chairman Rep. Charles Rangel said the Chinese told lawmakers they needed more time to overhaul their currency system and make other changes.

Rangel, a New York Democrat, told reporters that his committee planned to move forward with legislation; some of the bills being considered would impose stiff penalties on Chinese imports for what critics say are unfair Chinese trade practices that have driven U.S. trade deficits to record levels and cost thousands of manufacturing jobs.

Democratic Sen. Charles Schumer, a leading critic of China, described the frustration he said his colleagues felt. "There's never any action," he said in an interview. "I don't think a press release is going to assuage Congress' worries. We need results."

Despite the criticism, both Wu and Treasury Secretary Henry Paulson, head of the U.S. delegation at the talks, sounded positive about the importance of the new high-level "strategic economic dialogue" between the countries, which occur twice a year.

The delegations agreed Wednesday to more than double the number of daily passenger flights between the two nations by 2012, going from 10 to 23. Cargo flights also were increased. The gains fell short of the openings the Bush administration had hoped to achieve.

In the area of financial services, China agreed to a slight expansion in business opportunities for U.S. companies but not the lifting of caps on foreign ownership of banks, securities firms and insurance companies that U.S. firms had sought.

China also rejected U.S. requests that it accelerate the revaluing of its currency, the yuan, which American manufacturers contend is undervalued by as much as 40 percent. That makes Chinese products cheaper for Americans and U.S. goods more expensive in China.

For her part, Wu called the talks "a complete success" and said it was important to continue direct consultations between the two nations rather than resorting to "threat and sanctions."

U.S. business groups had a decidedly more downbeat response.

"It's clear that this dialogue has been nothing but a cynical Bush administration exercise in spin and public relations," said Kevin Kearns, president of the U.S. Business and Industry Council, which represents small and medium-size manufacturing companies. "The failure of the White House's approach is now clear, so the ball is clearly in Congress' court."

6 Signs Your Bank is Evil

We knew there were going to be fees. But booby traps? Here's how to fight back.

By Liz Pulliam Weston

Banks have to make money to stay in business. I was an economics major, so I get that.

What I don't get is why so many consumers do nothing as banks get bolder and bolder about picking their pockets. It's no longer nickel-and-diming -- we're losing $10, $20 and $30 a pop as banks come up with ever-more-creative ways to "fee" us to death.

The banking industry collects more than $50 billion a year in various service charges, more than twice the total of a decade ago. It's time we pushed back.

Sometimes just shining the light of scrutiny on these policies is enough to get banks to back down; read below about what happened recently with ING Direct bank. Other times, we need to protest, involve our lawmakers or even move our money elsewhere.

Here are some of the most egregious practices, and what you can do about them:

Checks clear almost immediately; deposits take days

In recent years, changes in federal laws have all but eliminated "float" -- the time it takes for a check to clear from the writer's bank account. What used to take days now often takes hours or less. What hasn't been speeded up is the time it takes for deposits to clear and be available for your withdrawal.

The Fed is required by law to reduce maximum deposit hold times as check-processing gets faster, but it recently decided against requiring banks to make deposits available sooner. Essentially, regulators concluded that even though money disappears from your account a lot quicker these days, it still doesn't disappear fast enough to warrant the extra costs banks might face from crediting you with your deposits more quickly. So: Heads you lose, tails the banks win.

What you can do: Kick up a fuss with your lawmakers. Banks make billions from consumer accounts; they should be required to invest some of that in speeding up deposits. (You can locate your U.S. representative here and your senators here. You'll find telephone numbers, addresses and e-mail addresses on their individual pages.)

Stacking the deck against you

Most big banks, and many smaller ones, process checks that arrive the same day in order of their size, with the largest check processed first. Banks say they do this to increase the odds that consumers' most important checks, such as mortgage and car payments, get paid. Consumer advocates say it's simply a way to jack up overdraft fees, which make up the majority of account service charges that banks collect. Here's how it works: Let's say you have $500 in your account, and you write checks for $10, $55 and $450. If the bank processed from smallest to largest, only one overdraft fee would be generated. By processing them from largest to smallest, two bounce fees can be collected.

What you can do: Obviously, you should try to avoid writing checks when there's not enough money in your account to cover them. But even the most conscientious consumer can get tripped up now and then (especially if there's a hold on your deposits, or if the bank messes up -- as mine did recently by processing a $403.50 transaction as $4,035.00). So sign up for overdraft protection that links your checking account to a savings account or line of credit; the fees and other costs involved are generally much lower than when you bounce a check. If you do get hit with an overdraft free, ask your bank to waive it as a one-time courtesy.

Charging for 'potential' overdrafts

(Note to readers: This section has been rewritten to clarify how Wachovia Bank assesses bounced-check fees.) A poster named haberschmidt recently alerted the blogosphere to the way Wachovia Bank increases bounced check fees. Some of the poster’s charges are incorrect, according to bank spokeswoman Mary Beth Navarro, including his assertion that Wachovia deducts bounce fees before processing transactions that overdraw an account. Each night, Navarro said, Wachovia first credits deposits, then deducts all transactions that have posted, and then finally assesses bounced-check fees.

But Navarro confirmed that the bank does assess bounced-check fees when transactions exceed an account’s “available” balance, even if the real balance in the account is actually high enough to prevent an overdraft.

Here's how it works: You use your debit card like a credit card at a store, signing your name to the transaction instead of entering a personal identification number (PIN). Because this is a signature-based transaction, the money is processed through the credit card payments system, which means the cash takes a few days to actually leave your account.

Banks typically don't wait, however, to deduct the transaction from your so-called "available balance" -- the money that's available for other spending. Where Wachovia differs from many of its banking brethren is what happens when other transactions are processed that exceed this "available balance." With many banks, you won't get a bounced-check fee unless you exceed the actual balance in your account. With Wachovia, you can wind up with a fee if you exceed the "available balance" -- even if you actually have enough money in your account to cover the transactions.

What you can do: As above, it's important to closely monitor your accounts and to keep a pad of cash in them (read "Why you need $500 in the bank" for more details). That said, banks shouldn't be allowed to charge for overdrafts before they happen. If you're a Wachovia customer, raise hell, contact your lawmakers and consider moving to another bank.

The oxymoronic 'courtesy overdraft'

Courtesy overdraft, also known as bounced-check protection, is a far cry from true overdraft protection. Instead of tapping into one of your own accounts, you're borrowing the bank's money and being charged hefty fees for the privilege. What's more, banks often sign you up for this "service" without your consent, and the sneakiest ones even add the amount of the "protection" to the balance you see when you check your account at an ATM. In other words, you're being told you have more money in your account than you actually do, which can lead you to overdraft your account and create more fees for the bank. (For more details, read "Don't be duped by bounced-check 'protection.' ")

What you can do: Call your bank and ask if you have "courtesy overdraft" or "bounced-check protection;" if so, try to get it removed from your account and replace it instead with real overdraft protection.

Fat fees for using personal-finance software

One of the best ways to track your accounts and prevent problems like overdrafts is by using personal-finance software such as Money or Quicken. These programs not only allow you to easily download your recent transactions, but help you forecast your cash flow in the future so you can predict when you might need to get extra cash into your checking account. So naturally, some banks ding you for $6 to $10 a month for using the software to automatically download your transactions.

Do I have a dog in this fight? You bet I do. I'm a longtime user of this software, and I write for MSN Money, which is owned by Microsoft, maker of Money. Even if neither of those things were true, however, I'd find it awfully suspicious that the majority of financial institutions find a way to provide automatic downloads for free, yet a handful of large banks -- Bank of America, Citibank and Wells Fargo among them -- find it necessary to charge over $100 a year for the same service.

What you can do: You may be able to get around the charges by using a more manual download process that involves going to the institution's Web site and clicking a few buttons, but that's a hassle. A better solution if you like the more automated download feature may be switching financial institutions. Washington Mutual, Charles Schwab, ING Direct and others support the automatic downloads without charging for the privilege.

Closing accounts because of bad credit

ING Direct, an online bank, says it was all a mistake. But some 5,300 customers were recently sent e-mails telling them their checking accounts would be closed because of their low credit scores. Many of these customers were understandably disturbed, since there are plenty of ways your credit scores can plummet that have nothing to do with your ability to manage a checking account.

When I called ING Direct USA CEO Arkadi Kuhlmann to ask about this seemingly unprecedented move, he couldn't apologize fast enough. "That was obviously an error," he said of the mass e-mailing. "The letter was worded wrong. . . . We do not give or deny one of our accounts" based solely on credit scores. The bank does use credit scores, he said, to help determine the size of a customer's overdraft line of credit. Within hours of my phone call, ING Direct customers who received the original e-mails reported receiving e-mails from the bank's chief operating officer, Jim Kelly, apologizing for the mess and assuring them their accounts would be restored.

What you can do: If you run across an obviously unfair bank practice, don't keep it to yourself. Someone who received the original ING Direct e-mail posted a message about it on the Consumerist Web site; Wachovia's practice of "potential" overdrafts was highlighted on Wesabe.com. Shout about what you see on those sites, or on MSN Money's own Your Money message board. Draw enough attention, and perhaps we can head off some of the worst policies before they become "industry standards."

Wednesday, May 23, 2007

New Chinese rules maintain strict registry of bloggers

By ALEXA OLESEN, Associated Press Writer

New rules by a Chinese government-backed Internet group maintain strict controls over the country's bloggers, requiring them to register with their real names and identification cards.

The guidelines from the Internet Society of China, a group made up of China's major Internet companies, contradict state media reports this week claiming that China was considering loosening registration requirements for bloggers to allow anonymous online journaling.

The society's new draft code of conduct seen on its Web site Wednesday says Web log service providers must still get their users' real names and contact information.

Critics say the requirement violates a blogger's right to freedom of expression and puts them at risk of punishment or imprisonment if they post controversial opinions about politics, religion or other issues.

The society's proposed code of conduct for blog service providers comes in addition to already existing government regulations that govern China's Internet. The country's official Internet watchdog banned anonymous Web site and blog registration in 2005.

Online bulletin boards and blogs are the only forum for most Chinese to express opinions before a large audience in a society where all media are state-controlled.

China has the world's second-biggest population of Internet users after the United States, with 137 million people online. It also has some 20 million blogs, according to government figures.

But Chinese leaders try to block online material deemed pornographic or a threat to communist rule.

Web site owners have been required to register their identities since 2005, leaving bloggers no way to post material online anonymously within China. They can use overseas services, but access to those from within China is frequently blocked by the government.

A report Tuesday by the official Xinhua News Agency said the society's guidelines would loosen controls by letting bloggers use pseudonyms when blogging on the net.

However, the guidelines on the ISC Web site say clearly that they require Internet services to register clients' identities. It adds that providers should encourage them to use real names when blogging too.

The code is aimed at "limiting and preventing unhealthy and illegal content on the Web," the document said.

It said some people use blogs to "disseminate objectionable content, seriously disrupting social order and the public interest and polluting the online network environment."

The code, drafted with input from major Chinese Internet companies such as Sina Corp., Sohu.com Inc. and Netease, was posted on the site this week to allow public comment before it takes effect, the introduction says.

It didn't say when they would take effect.

The society said it would publish a list of providers who promise to follow the code.

Ex-Coke worker gets eight years for trade-secret theft


By HARRY R. WEBER, AP Business Writer


A federal judge ignored a former Coca-Cola secretary's plea for mercy Wednesday and sentenced her to eight years in prison for conspiring to steal trade secrets from the world's largest beverage maker.

U.S. District Judge J. Owen Forrester told Joya Williams, 42, that he was giving her a longer sentence than recommended by federal prosecutors and sentencing guidelines because, "This is the kind of offense that cannot be tolerated in our society."

Williams had faced up to 10 years in prison on the single conspiracy charge in a failed scheme to sell Coke's trade secrets to rival Pepsi for at least $1.5 million.

But sentencing guidelines, which federal judges are not bound by, called for a sentence of 63 months to 78 months. Williams was convicted Feb. 2 following a jury trial in U.S. District Court in Atlanta, where The Coca-Cola Co. is based.

"I can't think of another case in 25 years that there's been so much obstruction of justice," the judge said.

As for the sentencing guidelines, Forrester said, "The guidelines as they are written don't begin to approach the seriousness of this case."

A co-defendant, Ibrahim Dimson, was sentenced to five years in prison.

Forrester ignored a tearful apology by Williams, which marked the first time she acknowledged what she did. Williams had testified during the trial that she did not commit a crime.

"Your honor, I have expanded my consciousness through this devastating experience," Williams said before she was sentenced. "This has been a very defining moment in my life. I have become infamous when I never wanted to become famous."

She added, "I am sorry to Coke and I'm sorry to my boss and to you and to my family as well."

The government said Williams stole confidential documents and samples of products that hadn't been launched by Coca-Cola and gave them to Dimson and a third defendant, Edmund Duhaney, as part of a conspiracy to sell the items to Pepsi. Duhaney, like Dimson, pleaded guilty to conspiracy.

Duhaney will be sentenced later.

The conspiracy was foiled after Pepsi warned Coca-Cola that it had received a letter in May 2006 offering Coca-Cola trade secrets to the "highest bidder." The FBI launched an undercover investigation and identified the letter writer as Dimson.

Williams was fired as a secretary to Coca-Cola's global brand director after the allegations came to light.

Williams' apology Wednesday lasted for several minutes and she asked the judge to show mercy, though Forrester had told her before she spoke that he planned to depart from sentencing guidelines.

"Punishment is the memories and the moments that I'm going to miss," she said. "Punishment is never having a family of my own."

Assistant U.S. Attorney Byung J. Pak told the judge that Williams didn't deserve leniency.

"Choices have consequences and she made those choices," Pak said. "She chose to go to trial and she lied on the stand."

At the hearing, prosecutors disclosed that Williams has two prior convictions, one involving making false statements related to unemployment insurance.

Williams' lawyers had repeatedly asserted in court and out of court that Williams had no criminal past, and the government until Wednesday did not challenge that assertion.

Va. Tech panel fights to get gunman's records


Associated Press

The panel studying last month's massacre at Virginia Tech will go to court if necessary to get gunman Seung-Hui Cho's medical and mental health records, the group's chairman said.

Former State Police Superintendent W. Gerald Massengill said in Wednesday editions of the Richmond Times-Dispatch that he thinks his panel can get the records though a law that requires state oversight of mental facilities and by arguing that it has a right to review counseling records that Virginia Tech may have on Cho.

He said he had discussed the issue with the state attorney general's staff.

"We're going to get what we need, one way or the other," Massengill said. If that fails, "we'll have to go to the courts."

University officials say federal privacy laws bar them from sharing the records.

Cho killed 32 people in two campus buildings before committing suicide in a classroom on April 16.

A year and a half earlier, he had been found "mentally ill and in need of hospitalization," according to court papers. A judge ordered him into involuntary outpatient treatment, but there is no indication that he complied.

University counsel Kay Heidbreder said the laws, even for someone who is deceased, mean the records cannot be shared even among departments at the university.

As it is constituted, the panel cannot issue subpoenas to compel testimony and obtain documents. Delacey Skinner — a spokeswoman for Gov. Timothy Kaine, who convened the panel — said the governor has assured members the attorney general will help them get information.

Body of missing U.S. soldier found in river: Iraqi police

Reuters

The half-naked body of one of three missing U.S. soldiers was found on Wednesday in the Euphrates River in the town of Mussayab south of Baghdad, police said.

The U.S. military said it was investigating reports that a body had been found in a canal in the area.

Hilla police spokesman Captain Muthanna al-Maamouri said there were bullet wounds to the torso and head of the body, which was wearing U.S. Army-issue pants and boots and had a tattoo on the left arm.

Maamouri said the body had been turned over to U.S. forces.

Thousands of U.S. and Iraqi troops having been scouring farmlands through an area south of Baghdad known as the "triangle of death" since an ambush on May 12 in which four U.S soldiers and an Iraqi interpreter were killed.

Three soldiers were reported missing after the attack. The al Qaeda-led Islamic State in Iraq has said it abducted them but has given no proof it has them.

A police officer in Mussayab, 60 km (40 miles) south of Baghdad, who declined to be named, said the body had been found after a tip-off from residents.

"The military is investigating reports of a body of a canal but we have no confirmation yet," a U.S. military official in Baghdad said.

General David Petraeus, the commander of U.S. forces in Iraq, said last Friday that he believes at least two of the three missing soldiers are still alive.

Selling body parts for cash



Isn't it time your body earned its keep?

By law, you can't sell your body even after you're dead. But you can get it to slip you a few 20s -- or thousands -- while you're still alive, by "donating" some of the extra pieces. Not too much is marketable, but what is can be offloaded for a price if it's in good condition.

What can you sell?

Plasma can be yellow gold

The 1984 National Organ Transplantation Act makes it illegal to sell human organs, a rule generally applied to tissues. So companies "compensate" donors for their time.

The big market: plasma, the protein-packed liquid component of blood used to manufacture lifesaving clotting factors and immune boosters, among others. These therapeutics comprise a $7.8 billion annual global market, according to the Marketing Research Bureau, with more than 70% of the source plasma originating from inside Americans.

This strong, steady demand simply can't be met by unpaid volunteers. Ten million of the 12 million liters we pump out annually is from paid donors, many of them regulars pocketing $200-plus a month.

"It's easy," said Ryan Elkins, a 26-year-old disabled Iraq war veteran who makes $55 a week for three hours of "sitting still." It's boring, he said, and he'd rather be back on explosives duty. But it helps buy the groceries for his family as he begins taxidermy school in Spokane, Wash.

Donors profiled on the BioLife Plasma Services Web site have sold plasma for decades, accumulating decent sums toward school, kids, home repairs, even missionary work. One woman uses the money to send her husband away on trips. Here's how it works:

  • If you can give blood, you can sell plasma -- probably. The eligibility requirements are similar. You must be 18, weigh at least 110 pounds, be free of communicable disease and in basic good health with strong iron levels.
  • There is no cross-contamination. Blood is drawn into an apheresis machine -- essentially a centrifuge. As it spins, plasma, the lightest component in blood, separates out and drips into a bag, which you can watch fill and turn yellow as you read the giant informed-consent brochure you just signed. At various intervals the machine thrums to a halt and reverses direction, returning the remaining blood down the same tube along with some saline solution. Your blood comes into contact only with disposable plastic parts.
  • Seriously, though, read the brochure. There can be side effects: allergic reactions, dizziness, nausea. (For more, see this FDA letter.) The U.S. Food and Drug Administration limits each donation to between 625 milliliters (1.3 pints) and 880 milliliters (1.9 pints), depending on body weight, at no more than twice a week. In the United States you can give up to 91.5 liters, or 193 pints, a year, far more than other countries allow.
  • With a little patience . . . Companies pay extra to bring you back. The first visit in a week might pay $25, the second $35. Plasma is 90% water and regenerates in 48 hours. At each visit, someone checks your vitals, then you recline in the chair for an hour. You cannot sleep, because attendants must know that you've not passed out.
  • It's a large-bore needle. Need more be said here?
  • Not every state has a paid donation center. Several companies recently pulled out of the business. To see if there's one near you, check the FDA search engine and select "Establishment Type: Plasmapheresis Center." Or visit the Plasma Protein Therapeutics Association.

For men only

It's far easier to get a date than a sperm-donor card. About 95% of men who apply don't make the cut.

For those who do, though, hoo ha! It can mean up to $1,000 a month for 1½ to two years, enough to pay the rent through graduate school.

For every 1,000 men who seek information about the California Cryobank, a leading service with locations near top-tier colleges, only nine become donors.

Applicants complete a 40-page medical history covering three generations, then get culled for buyer preference.

"We make sure he's not too short, too fat, too tall or too ugly," said Dr. Cappy Rothman, a clinic co-founder.

The ideal donor: 6 feet, medium build, medium complexion, blond or brown hair, green or blue eyes, a college background, dimples. This is what women want.

Then there's the sample. Donors must have sperm counts of 400 million to 500 million, twice the norm. And most of these sperm must be faster than an ordinary sperm, more powerful than an ordinary sperm, able to leap tall petri dishes in a single bound! Unfortunately it's supersperm for only one in four men.

Even those who think they're made of steel sometimes choose to opt out of the responsibility: frequent health checks, up to thrice-weekly deposits and periods of abstention. Not to mention the idea of being progenitor to as many as 35 very real human beings.

This isn't an industry that keeps good count. But Dr. Charles Sims, who undertook a survey as chairman of the Reproductive Council of the American Association of Tissue Banks last year, estimates it's an $80 million industry with some 1,500 active sperm donors.

Despite a growing movement toward open donation -- where children can contact their donor parent at 18 -- Sims believes banks can continue to guarantee anonymity.

Seeking young women

The female egg, or ovum, is 90,000 times bigger than the male sperm, so it's worth more. Just how much more is unclear. In an industry that critics charge is underregulated, insiders don't know exactly what most donors are paid or even how many donors are out there.

A recent survey turned up an average of $4,217 per donation, but some clinics didn't participate, and donors frequently claim payments of $10,000 or more. Those targeted -- typically young coeds -- see ads promising tens of thousands from couples in search of that very healthy, tall, bright, beautiful young woman. If she's on a soccer scholarship and just won an arts grant, even better.

Still, the price is projected to remain high. The American Society for Reproductive Medicine says donor eggs or embryos were used in 15,175 artificial reproduction attempts in 2004 and that demand is growing. People are accepting the idea that if someone else's plump, youthful egg has a better shot, why not use it? Meanwhile, women who've been donors and made a good dent in their student loans or credit card debt say they'd do it again.

But that bloated pay figure can be misleading. Egg donation is far more labor intensive than sperm donation and carries health risks. To stimulate the production of extra eggs -- say one or two dozen -- the donor is placed on hormone injections for weeks and the eggs are extracted under anesthesia with a needle. The process can cause ovarian hyperstimulation, which in rare cases can be life-threatening.

Those considering becoming a donor should seek an outside opinion and read the fine print: Make sure any associated health issues will be covered by the buyer.

For more information, visit the Society for Assisted Reproductive Technology.

'I've got my hair'

The self-styled posts on the Internet are intoxicating: asking $600 for long locks of "virgin hair," never colored, never blow-dried, never rooted in the flesh of fatty foods and hard living. But are people really paying?

Renee Sirokman is dubious. She's been buying hair to make wigs for the family business, World of Wigs, for nearly 40 years and has yet to meet such a high bidder. "If this was true," she said, "then wouldn't everybody be selling hair?"

She can, however, guarantee that a wig company will pay up to $5 an ounce for hair that's in decent shape. Most heads would pass muster, as long as the hair is not severely overprocessed, is at least 12 inches long and is packaged properly. A foot-long pony tail weighs 2 to 8 ounces, meaning a year in the hair-growth market might gross you a few bottles of shampoo. But, as Sirokman tells people, "Why would you want the hair to hit the ground if you can sell it?"

But wait, there's more

  • Got milk? Breast milk costs $3.50 an ounce, and baby needs 25 ounces a day: A Beverly Hills household-staffing company made news when it hired out wet nurses. There don't appear to be others, according to the La Leche League, nor any public businesses buying breast milk, but experts don't doubt that private sales routinely take place.
  • It's true, you can live safely with one kidney. But rumors of $50,000 apiece on the black market overseas are just that; buyers can get one in a village in India, or in Baghdad, for $700.
  • "Donate" to research. Tissue didn't make it past the private screeners? Research hospitals and drug companies pay for the same products for studies.
  • Don't like the idea of selling yourself? Then actually, really, donate. Give whole blood at a community blood bank. Only 5% of eligible donors do so, and there is a chronic short supply. And there are several breast-milk banks that accept donations to feed babies who can't handle formula.

Video: Sell your body to science

Army says Dragon Skin armor falls short

By LOLITA C. BALDOR, Associated Press Writer

The U.S. Army, in a rare move Monday, released a barrage of test results showing that a privately-sold flexible body armor that some families have sought for their soldiers failed extensive military testing.

Pieces of the hefty Dragon Skin armor, with ragged holes torn through its yellow inner skin, were propped up on the floor in the Pentagon, as Army officials systematically detailed the battery of ammunition and temperature testing the armor failed.

Although the tests were done nearly a year ago, the Army declined to release details until Monday, after recent NBC News reports suggested that the Dragon Skin may be better than the Army-issued Interceptor armor.

As a result of the reports, some members of Congress have asked for an investigation into the matter, and others have asked the Army for more information.

"We take this personally," said Brig. Gen. Mark Brown, executive officer for the Army's armor testing program. "One third of the general officers in the United States Army have either a son or daughter either in theater (at war) today or (who) has been to theater."

Holding up an armor-piercing bullet, Brown showed video of the tests, including footage of officials peering into the bullet hole in the Dragon Skin armor. "At the end of the day, this one disc has to stop this round. It didn't. Thirteen times," he said.

In response, Murray Neal, president of Pinnacle Armor which produces Dragon Skin, suggested that the Army lied about some of the testing, and he questioned why the Army was counting shots that "were fired into the non-rifle defeating areas."

The body armor debate has raged almost since the Afghanistan and Iraq wars began, as the Army struggled at times to get all of the needed equipment to its soldiers — both active and reserve. At times, family members around the country were raising money, having bake sales, and spending thousands of dollars of their own cash to buy armor and equipment for their loved ones going to war.

In some of those cases, families were considering buying Dragon Skin armor because they believed it would provide better protection. The Army Monday said it was releasing the test details to help prevent families from spending money on body armor that is not as good as the protection already issued to the soldiers.

Brown described "catastrophic failures" by the Dragon Skin armor, and said that in 13 of 48 shots, lethal armor-piercing rounds either shattered the discs that make up the armor, or completely penetrated the vest.

"Zero failures is the correct answer," he said. "One failure is sudden death and you lose the game."

Brown added that the armor failed to endure required temperatures shifts — from minus 20 degrees to 120 above zero — which weakened the adhesive holding the discs together. And he said that the Dragon Skin's heavy weight was also a problem for soldiers who need to carry a lot of gear.

The Dragon Skin, he said, weighs 47.5 pounds, compared to the Army-issued Interceptor armor, which weighs 28 pounds.

After seeing the latest television reports, Sen. Edward M. Kennedy, D-Mass., sent a letter to Army Chief of Staff Gen. George Casey asking for more information and saying he's concerned that the Army may not be providing better body armor to the soldiers as quickly as possible.

And Sen. Hillary Clinton, D-N.Y., sent a letter to the Government Accountability Office, a government watchdog agency, seeking an investigation to assess the body armor being used by the military.

Army officials said they would be going to Capitol Hill this week to talk to lawmakers about the armor issue.

Tuesday, May 22, 2007

12 steps to become a millionaire

You don't have to own the company or be a CEO. Here's how to build a rich nest egg one paycheck at a time.

By Kiplinger's Personal Finance Magazine

A number of the people profiled in "Millionaires tell how they did it" made their millions as entrepreneurs. But working for the Man doesn't mean you have to be a wage slave or resort to buying lottery tickets to strike it rich. The trick is to maximize your income on the job (and know when to move on), make the most of your employee benefits and tax breaks and use that extra money to start investing.

1. Keep your eyes peeled for better ways to do your job. Streamline a procedure, shave costs, create a new profit center, become an expert on a specific topic, volunteer for a company committee -- anything that will make you stand out as a prime candidate for a promotion or a pay boost.

2. Don't be afraid to negotiate. In a study of master's degree graduates from her university, Carnegie Mellon economics professor Linda Babcock found that those who negotiated their first salary boosted their pay by 7.4% compared with those who didn't bargain.

3. Get your ducks in a row and your numbers on paper. If possible, quantify how much your efforts add to the company's bottom line. If that's not feasible, spotlight your value with comparable salaries for workers in your position from a Web site, such as Salary.com, or from a professional association.

4. Plot your strategy when it's time to move on. Create a professional-looking page on MySpace that tells prospective employers why you're an exceptional candidate, recommends John Challenger of the outplacement firm Challenger, Gray & Christmas. And don't neglect more conventional networking: Join a professional association or show up at school reunions toting business cards.

Milk your benefits

5. Contribute as much as you can to your 401(k) and other tax-deferred retirement plans. You'll not only build a bigger nest egg, but you'll also cut your tax bill. In the 25% federal tax bracket, every $1,000 you contribute to a 401(k) trims your taxes by $250. And you'll save on state income taxes, too.

6. Flex your tax-saving muscle. Contribute pretax dollars to a flexible spending account to pay for dependent care or out-of-pocket medical expenses. If you set aside $1,500 per year and you're in the 25% bracket, avoiding federal income and Social Security taxes means Uncle Sam will subsidize almost $500 of your expenses.

7. Review your tax withholding. If you're expecting a refund this spring, you're having too much tax withheld from your paycheck -- and making an interest-free loan to Uncle Sam. That's no way to become a millionaire. Put more money in your pocket by using Kiplinger's withholding calculator and then filling out a new Form W-4.

8. Stash savings in a Roth IRA if you're eligible. Withdrawals in retirement, including decades of compounded earnings, will be tax-free. This year, income-eligibility limits for a Roth increase to $114,000 for individuals and $166,000 for married couples.

Invest like crazy

9. Don't delay. The quicker you get a jump on putting money aside, the easier it will be to stuff a seven-figure cushion. If you start at age 25, for example, investing $286 per month will get you $1 million by age 65, assuming you earn 8% annually.

10. Invest automatically, either through your employer's retirement plan or by setting up a regular deposit to a mutual fund or broker. You'll never miss the money, and you'll avoid two big mistakes: buying too much when stock prices are high and not buying at all when prices fall.

11. Watch for fund fees. The more you pay, the tougher it is to earn an above-average return. The typical hedge fund, for example, takes 20% of any gains, a huge hurdle to overcome. A better bet: no-load mutual funds with expense ratios of 1% or less. If you trade individual stocks, watch those commissions.

12. Keep it simple. Be wary of get-rich-quick schemes or sales pitches for complex investments, such as oil-and-gas partnerships, that trade on the millionaire cachet to lure investors into buying high-fee products they don't understand. Most millionaire households accumulate their wealth over the long term by sticking to a regular investing plan in a balanced portfolio.

How America's richest 1% got where they are

Interviews show that only a minority of the nation's top 1% inherited their wealth or made it in the stock market. Most said they simply had a dream and were willing to take risks in pursuing it.

By SmartMoney

The old saying is true: The rich are different.

But not only do their values and habits set them apart from the hoi polloi, they're different from their wealthy predecessors of a generation ago. For those interested in joining their ranks, it helps to understand why.

To enter the nation's top 1%, you need more than $5 million. And if you get there, you'll have plenty of newly arrived company: The number of U.S. "pentamillionaires" has quadrupled in the past 10 years, to more than 930,000.

Indeed, 70% of the nation's big family fortunes are less than 13 years old, according to The Harrison Group, a research and marketing firm. And the people who amassed those fortunes are primarily entrepreneurs -- risk takers for whom wealth is a byproduct of pursuing their passion.

What got them to the highest level? It isn't necessarily stock market savvy: On average, folks who recently hit the $5 million mark report that only 10% of their money came through passive investments. And only 10% of pentamillionaires inherited their wealth.

More than luck involved

One might think that good fortune would play a role, but even luck is largely a matter of one's own making. Psychologist Richard Wiseman has found that people who describe themselves as lucky share common habits that account for their success: They're friendly and fond of new experiences, traits that put them on a collision course with new opportunities. In addition, "lucky" folks simply have higher expectations of success -- they're too pigheadedly optimistic to heed the long odds and call it quits.

Not to say that getting rich is simply a matter of having a swell attitude. The path to riches usually involves the kind of risk that would make most people feel a little queasy.

Harrison Group head Jim Taylor recently persuaded more than 3,000 pentamillionaires to discuss their paths to success. Perhaps not surprisingly, none of them had a cushy union job down at the Department of Motor Vehicles. The vast majority -- 80% -- either started their own businesses or worked for small companies that saw explosive growth. Almost all of them made their fortunes in big lump sums after many years of effort.

Surprisingly, today's very rich say that money itself wasn't much of a motivator. Once you've got food in your belly and a big-screen TV, the mere prospect of more Benjamins isn't enough to get you leaping out of bed at 5 a.m. Rather, rich folks often make their fortunes after they make up their minds to solve a problem or do something better than it's been done before.

'I just loved the work'

When Frank Darras graduated from law school, all he wanted in terms of material wealth was a middle-class life for his wife and kids. But while working as a doctor's assistant to put himself through school, he developed a burning desire to help the folks he saw struggling with unpaid insurance claims.

"It was the David-and-Goliath aspect that attracted me more than anything," says the Ontario, Calif., attorney. Once he had his degree, Darras was like a cruise missile aimed at the insurance industry. By 1990, Darras had his first million-dollar year, and today he oversees one of the nation's largest disability- and long-term-care practices. "I never thought I'd make $5 million in two lifetimes," he says. "I just loved the work."

Getting rich also requires a certain amount of stubbornness and clarity of purpose. Consultant Joel Kurtzman, who evaluated 350 startups for his book "Startups That Work," found that successful outlets usually have a team of two or three founders who share a common vision; the success rate for this model was a remarkable 50%.

The odds for solo founders were more like the oft-quoted one in 10, in part because they often found themselves working at cross-purposes with hired guns who see things differently. That's what 34-year-old Justin Jarvinen learned the hard way. The entrepreneur saw two promising business ventures go down the tubes after he took on partners who tweaked his ideas beyond recognition. But three years ago he started VerveLife, a service that helps companies promote online marketing efforts with free music downloads. Knowing that his success depended on his enthusiasm for bringing the idea to market, he carefully chose partners who supported his vision.

Jarvinen is now the majority shareholder in two dot-coms, and he claims an eight-figure net worth. But what really excites him is his freedom to explore and support new ideas; his current passion is mentoring younger entrepreneurs.

"I'm interested in doing whatever I want, whenever I want," he says.

Chances are you feel similarly. When people dream of getting rich, it's about more than nice clothes and fancy vacations. Being rich means freedom: to spend your time as you please, to pursue your real interests and to take chances without courting utter ruin. Paradoxically, the road to riches often means acting as if you already have that freedom.

Friday, May 18, 2007

Is it a good idea to invest in "forever" stamps?




The postal rate climbed 2 cents on Monday, about a month after the United States Postal Service introduced its new "forever" stamp. As of last week, the USPS had sold more than $82 million worth of the forever stamps, which lock in the 41-cent rate for eternity. One man in Pennsylvania walked into a post office and made an $8,000 investment on his own. Should we all be stocking up?

Absolutely not. Since 1971, postal rates have increased more slowly than the actual inflation rate, as measured by the U.S. Consumer Price Index. So, despite the numerous rate hikes over the last 36 years, stamps have actually been getting cheaper. The 20-cent stamp from 1981, for instance, would be equivalent to 45 cents in today's dollars—which makes today's rate 10 percent cheaper than it was 26 years ago. Should this historical pattern hold, you'd be paying more for today's forever stamps than you would for any stamp in the future, no matter how high the rate goes.

In fact, this pattern must hold—as a matter of law. In December, President Bush signed the Postal Accountability and Enhancement Act, which ensures that future price increases will be kept below an inflation-based ceiling. In other words, postage hikes will never surpass inflation—and the forever stamp will never become a good investment. Incidentally, the USPS announced the introduction of the forever stamp less than two months after Bush signed the act into law.

The USPS is not the first postal agency to catch on to the benefits of a forever stamp, which in philatelic circles is known by a less sexy moniker, "non-value indicator." Canada introduced them last November, joining Finland, Israel, the United Kingdom, Belgium, France, Norway, Monaco, and Sweden, among others.

American forever stamps would have been a good investment if they'd been introduced much earlier. The 2-cent stamp from 1919 would have been a real bargain, at a cost of 24 cents in today's dollars; so would 1952's 3-cent stamp (23 cents today). A forever stamp would have been attractive to the consumer as late as 1971—the year the USPS was formed—when first-class postage was just 6 cents, equal to 31 cents today. The biggest rip-off in the modern era? The 13-cent stamp from 1975—which would be 50 cents today.

Should I Invest in "Forever" Stamps?..... Absolutely not.