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IMPLEMENTATION OF SUBSIDY REMOVAL – THE BETTER WAY

2012-01-14T05:20:00.000-08:00

I watched the news to see a few Nigerians blindly chanting that the removal of subsidy is for the benefit of Nigerians, all because they wanted to reopen their shops. I laughed. This goes a long way to show our gross disunity. If Egypt and Tunisia got tired of their protests and revolution, would they boast now of having a platform that allows them to choose the government they want?

I am not against the policy as you may have judged from my article, but I strongly hold that there are better ways of implementing it, to make it work in Nigeria. There are however, solid facts that I want you to consider and then judge for yourself if this government can deliver its promises.

I supported President Jonathan – even though my location did not allow me vote – for sentimental reasons and so did the majority of Nigerians; but I still do support him. I was also of the opinion that after former President Obasanjo, Nigeria shouldn’t have another president that was a past military president. But during his campaign I was not comfortable with the amount of money President Jonathan expended, paying artistes, organizing rallies and mobile carnivals. This money was obviously sourced from public funds. As painful as this may sound, President Jonathan has weak links that portray him as corrupt. For instance, members of the houses of assembly resisted vehemently when the CBN governor, Sanusi Lamido Sanusi presented facts that showed that the cost of running this government was guzzling about 25% of the country’s budget. Nigerians are well aware of the unwarranted multimillions that the presidency, senators, legislators and ministries accrue to themselves as salaries and allowances and how they unjustly devalue the official vehicles assigned to them only to repurchase them at alarming diminished prices. It’s open news now that the president allocates One billion Naira to himself as feeding allowance annually. My calculation shows that if you spend N30, 000.00 per day, it would take you 80 years to expend ALMOST a billion naira; the figure is N876,000,000.00 or N876,600,000.00, considering the leap years. You can do the calculations yourself to confirm.

Within its practical two years of inception, I did not expect this government to transform agriculture or power; these are monumental achievements that take time. However one task that was very feasible was to fight corruption to the letter. If this singular act was achieved, a vote of trust would have been bestowed on this government.

Consider these realities:
PHCN makes profit annually from bills being paid; where does this money go to?
The Water Board also makes money from its services; where is this money being lodged?
Governor Fashola of Lagos has provided satisfactory evidence that government can generate income from tax. The FIRS generates income yearly from taxes; where is this money?
What about the money the Customs make from import duties?
How about the Immigration, FRSC and other government institutions that generate money in various capacities?
Currently as we speak, some elite Nigerians have licences to mine solid minerals in diverse parts of the country; these minerals, like crude, should be the sole property of the federal government.
Nigeria recovered monies from misappropriated funds, to the tone of $380M from the Obasanjo tenure till now; where is the evidence of that money now? These go to show that the government has abundant alternative sources of income without having to touch the subsidy money.

Can this government conveniently prosecute former President Obasanjo and other government officials who committed gross crimes of corruption in the near and distant past? Governments in Nigeria have a very amusing practice of claiming to forgive leaders with glaring corrupt records as recorded by the EFCC, yet most of these individuals like Senators Ahmed Mohammed Makarfi and Sani Yerima, both former governors of Kaduna and Zamfara States respectively, still served in government offices, and now walk liberally as free men. Several others like Lucky Igbenedion, Ikedi Ohakim, Orji Uzo Kalu, Peter Odili and many others are still walking freely. This is ridiculous! When God directly governed Israel in the past, evildoers were punished for their crimes. Even though we know God to be merciful, He is also a just God. The United States of America is known to investigate crimes as old as thirty years and over, and prosecute as well as punish the offenders accordingly. Several other countries have this same appropriate practice of adequately punishing criminals. Nigeria callously sweeps these crimes under the carpet and what’s the result – more daredevil criminals emerge, crime prevails and the countries’ economy suffers.

Nigerians are not opposed to the removal of subsidy, but in the manner of its implementation. This government and previous ones before it have always shown grave disregard for the Nigerian people. It was clear that the subsidy removal was still being deliberated on and then a day after the president declares a state of emergency in fifteen Local Government Areas in four states of the federation, an indication that the nation was in a delicate situation, we get the shocking news of the subsidy removal. Many Nigerians still remain stranded in their villages due the consequent transportation price hike; given the economic severity of the month of January in Nigeria, the government only succeeded in replacing one crises – the Boko Haram menace, with another. And while previous governments have failed in their promises, this government has acted very similarly; so how does it expect any trust from Nigerians? If an individual was served a meal of a particular kind of vegetable from two distinct sources at two separate times, and on both occasions this individual ends up severely sick, do you think such a person will ever eat any other kind of green vegetable? Answer is NO. A person like that will in fact, naturally become repulsive to anything green. We have a proverb that a snake will naturally beget something long. The plans for the subsidy money are very juicy and welcome, and in fact portray the expectancy of Nigerians from any government. But the fact that this government possesses traits of failed previous dispensations as well as corrupt members opposed to development who served in previous dispensations, it stands on a knife-edge that makes its plans prone to failure. The NLC and its associates and the Nigerian people are therefore within their rights to demand that the government reverts to N65.00 per litre – the point of deliberations – before they engage in dialogue.

This government did not just discover the corrupt cabals and their activities overnight; it has been aware of them for a considerable period of time. It should therefore have confronted them all along.

Arguments are made that neighbouring Ghana also implemented removal of subsidy without complaints and so questions why Nigerians should. Study the mode of implementation in Ghana. Ghana DID NOT remove subsidy in one blow. The Ghanaian government has been removing its subsidy in instalments of 20% over a period of time, using these monies to develop aspects of the economy at a gradual pace. What was removed on 29th December, 2011 was the last instalment. So you see that an excellent and very humane approach was employed. The Igbos have a proverb: You first of all chase away the leopard before you begin to remonstrate with the wayward hen for venturing so far into the forest. Another proverb says: You do not get rid of the baby along with the bathe water. In both cases the proverbs indicate that you have an asset in a threatening situation, but you don’t punish your asset in a bid to deal with the threat. In the light of the present crisis, it means that the government cannot punish its asset – the masses, to deal with the crisis – corruption (or the oil cabals).

The Nigerian government should have employed this very same method, while in the process, tackling the activities of the cabals radically; like revoking their importation licence, and rightfully charging them to court on charges of short-changing and exploiting the government as well as other relative crimes. The government can then proceed to engage new interested importers on very strict contract agreements, for instance, a condition that guarantees their balance payments only when the accurate volume of fuel has been ascertained to enter government storage. The government could even create its own importation outfit. Whichever method is employed should be made transparent by involvement of non-governmental institutions like the NLC, TUC, Civil Society, etc, who will help monitor the distribution of these products down to the public. While this is going on, a severe war on corruption should be engaged on corrupt practices in all sectors. If five to ten prominent individuals are investigated, prosecuted and incarcerated within a short period, intending and existing individuals with corrupt intensions would take caution and be kept at bay.

While taking away the subsidy may seem a plausible way of confronting the cabals, I see a gaping loophole. As long as they remain free, these cabals will embark on methods to hijack oil products from within. The subsidy project would therefore have been defeated. The best way to proceed is as described above, similar to what the NLC, TUC and Civil Society are suggesting.
On a final note, I appeal to the government to stop wasting valuable money on television jingles and billboard adverts encouraging Nigerians to be peaceful and law-abiding. While this practice is the norm in Nigeria, I say that it is non-effective. Peace is not something you can cajole a person or people into. Peace is a product; it is the product of Justice. When there is justice, peace follows naturally. The human psyche if unrefined is prone to crime. But when people know that regardless of their status social or otherwise, their crimes under a just society are adequately punished by an unbiased law, the mind starts to work in the opposite – more productive – dimension; which happens to be Peace. We make a lot of reference to America. America did not coax its citizens into accepting peace. She simply enforced a law that works and people began to trust the law and to engage in peaceful living.

NIGERIA - ON THE REMOVAL OF FUEL SUBSIDY

2012-01-05T02:20:00.000-08:00

While the Federal Government has made good its decision to withdraw the fuel subsidy, it would be in the best interest of the entire Nigerian populace that the government revisits its decision and make adequate readjustments before the country erupts in utter chaos. Whatever discussions and talks the NLC would be holding with the government, it is paramount to note that taking away one hundred percent of the subsidy is a completely wrong move.

I have listened to several arguments opposing and supporting the removal of the fuel subsidy. It is unfortunate that initially, most people seemed to only see the austere effects of the removal, on the aspect of transportation alone. Nigeria’s dependence on crude oil has led us to a situation that causes us to experience consequential effects whenever there is a change in the prices of petroleum products, particularly Premium Motor Spirit – PMS. By implication, with the removal of the subsidy, every commodity and I repeat, every commodity in every sector would also experience an increase in prices. I’m talking about monumental increases in the costs of living/housing, food, education, health, etc.

The Federal Government claims that it plans to use the money from fuel subsidy for the purpose of industrialization, the absence of which has be cited severally as the bane of Nigeria’s gross unemployment. This decision I am sure would be welcomed by every well-meaning Nigerian. But there is great need for scepticism.

Firstly, what concrete evidence do we have that this money would be used for the purpose for which it was meant? Nigeria has had a nasty history of taking loans from foreign sources, monies that never served the purposes for which they were meant, but ended up in the pockets and accounts of a very greedy few; what will this insensitive individuals not do to siphon this new fund which happens to be OUR OWN money and immune to international scrutiny? Bear in mind that there are Nigerians whose wealth thrive from the dilapidated state that is presently characteristic of Nigeria’s economy; these individuals would do anything and I mean absolutely anything to keep Nigeria the way she is. Hence these people are sure to thwart or sabotage whatever developmental plans the government has or plans to implement. What concrete measures have been put in place to ensure that while the government carries out her developmental schemes, there are also active machineries to investigate and prosecute any singular move or ambition to sabotage government plans? Absolutely Nothing! The EFCC and ICPC have done very little to nothing, partly because Nigerian laws seem to be void over some individuals, while some others deliberately hamper the activities of these anti-graft institutions. We have heard of many highly placed Nigerians involved in acts of corruption; none of them was successfully prosecuted and punished. I could go on and on listing several diverse avenues that the government has failed especially in its bid for nation building, and tackling corruption that hampers it. There is definitely nothing available to serve as guarantee that the fuel subsidy money would serve its purpose. This is not a fairy tale. This is reality and reality goes with facts. WE cannot give this government any benefit of doubt simply because the President’s name is Goodluck (all due respects to Mr. President). We need facts to prove but unfortunately, this government gave none.

As regards facts, you may wonder what example I have. I am of the opinion that rather than withdraw one hundred percent of the subsidy money, the government should have taken at most seventy percent of it and left thirty percent for at least two years to serve as a cushion to insulate the harsh effects that would emanate from the removal. With seventy percent of the subsidy money, the government can start its programmes and whatever positive results are recorded can serve as surety that the government’s plans are genuine and viable.

Also, why does it always have to be the masses bearing the brunt of every austere measure embarked upon by the government? If the Nigerian government needs money I proffer that it can generate so much from cutting by half, the salaries and allowances of political office holders, beginning from the President himself, down to the Councillor. They too should feel the pinch and make sacrifices too. And as the old Nigerian slogan goes: “They shouldn’t worry; they would suffer now and enjoy later.”

In furtherance to this argument, I purport that given the present harsh economic condition of Nigeria it would be absolutely wise that the jobs in both Houses of Parliament, as well as State Houses of Parliament be stripped of their status as permanent appointments. Senators and Legislators should cease to be direct federal government employees. They should be paid just for their sitting allowance and this through their constituencies. Also, these wages should commensurate with the adequate salary grade level of a civil servant. This way, Senators and Legislators would need to have jobs and businesses of their own, where their true income comes from; the parliamentary jobs in Abuja would no longer be their beds of roses. As a result, they would be truly committed to implementing policies since payment of their wages would depend on their performance. If the members of parliament oppose this decision – as likely they would – the president can sponsor the bill for this purpose and call on Nigerians to a referendum in support of the bill and I can guarantee you that all Nigerians would arise in support of the president.

Millions of Nigerian youth sustain themselves and keep out of trouble by engaging in menial and low-paying jobs run by private entrepreneurs. These make up a good percentage of the unemployed youth that over the years, every government has incessantly proclaimed its plans to keep engaged in order to restrain them from crime. The majority of these jobs pay monthly wages within the range of five and eight thousand naira, and this provides the stipends on which the youths finance their basic needs. With this increase, the bulk of their salaries – about seventy percent – would be spent on transportation alone; some may spend virtually their entire earnings on transport. I don’t see anybody keeping a job like that anymore. Then in time, this development would result in an increase of street thugs and hooligans.

The government of President Goodluck Jonathan should be advised to see things and reason in this light and subsequently revisit and readjust the subsidy removal. There is so much at stake especially the stability of Nigeria. Nigerians have been known to gullibly adapt to harsh conditions. But I do not see how anybody would adapt to a condition that takes away your entire salary on transport alone, with very little to feed on, when you still have housing, health bills, utility bills, costs of dependants, etc, to contend with.

PS: As an afterthought, I wonder if the advisers of President Goodluck Jonathan may have been compromised by diabolical oppositions to his government, for them to have proffered a suggestion like this. What is it now with this importation of diesel engine buses? First, inadequacy of funds was cited as one of the reasons for subsidy removal. Then they come and say in response to the protests they want to import buses. Where is the money for the procurement of these uses coming from? This venture will create an avenue for one individual of group of individuals to squander valuable funds in purchasing sub-standard vehicles that will become crises within three months of usage. How many buses does the government intend to buy to satisfy the needs of the entire Nigerian people? Is this government bent on getting everything wrong?

Please, well-meaning Nigerians are saying, “we understand with the subsidy removal but don’t remove everything yet.” Also, readjust the wages of the members of both national and state houses of representatives and the government will realize a copious amount of money at its disposal.

Bin Laden driver sentenced to Five and Half years

2008-08-07T13:45:00.000-07:00

CNN

Osama bin Laden's former driver Thursday was sentenced to 66 months in prison following his conviction on charges of providing material support to al Qaeda.

Salim Hamdan, who has been imprisoned at the U.S. military detention center at Guantanamo Bay since 2002, has already been credited with five years served.

Hamdan was found guilty Wednesday of receiving weapons training and transporting and delivering arms. A jury of six military officers rejected charges that he conspired with others to carry out al Qaeda attacks.

Earlier Thursday, during his sentencing hearing, Hamdan told a military court that he never suspected bin Laden was a terrorist until after the September 11, 2001, attacks.

Prosecutors weren't buying his story and recommended he be sent to prison for 30 years to life.

Hamdan, speaking through a translator, gave the unsworn testimony one day after six officers convicted him of providing material support to al Qaeda but cleared him of terrorism conspiracy charges.

Hamdan tried to make the case to jurors that he was only a lowly driver, and described his relationship with bin Laden as "normal." Watch how Hamdan described bin Laden »

He said he treated bin Laden as an employee would treat a boss and, in turn, bin Laden treated him in a way that took into account his position.

"I respected him, and he respected me," Hamdan said. "I regarded him, and he regarded me."

He was taken into custody in southern Afghanistan in November 2001. Though the car he was driving contained missiles, he has said all along that the car was borrowed and the missiles weren't his. He repeated his assertions Thursday.

He made some of his comments in a closed session, which the government said was necessary in case classified information was raised.

Hamdan testified he had wanted to settle in his native country, Yemen, but after the 2000 attack by an explosives-laden motorboat on the USS Cole in Yemen's Gulf of Aden, which killed 17 American sailors, he and his wife left the country on a pilgrimage.

Hamdan said Yemeni media were blaming the attack on the Israeli Mossad, and he didn't know until later that al Qaeda was behind it.

He also said he was "shocked" to hear that al Qaeda carried out the September 11, 2001, terrorist attacks in New York, Washington and Pennsylvania.

"It was impossible in my mind that Osama bin Laden would be behind it," said Hamdan, who was still working for him at the time.

"My view and my thinking had changed completely. It was a big shock for me when someone had treated you with respect and regard, and then you realize what they were up to," he said.

When the U.S.-led war began in Afghanistan after 9/11 Hamdan said, he took his family to Pakistan for their safety, and he left them to return the borrowed car to its owner.

During the trial, prosecutors argued that Hamdan became a member of al Qaeda in 1996 and conspired with the group on terrorist attacks. They alleged that Hamdan overheard conversations about 9/11 and claimed to have other information showing he was part of bin Laden's inner circle.

The defense contended Hamdan was a low-level driver who knew little about the workings of bin Laden's al Qaeda network. They said he worked for wages, not to carry out war against America.

Obama pokes at McCain over tire-pressure issue

2008-08-06T13:21:00.000-07:00

By TOM RAUM, Associated Press Writer

ELKHART, Ind. - Democrat Barack Obama on Wednesday taunted Republican presidential rival John McCain for first mocking the idea of keeping tires inflated for energy conservation and then agreeing the practice works.

"It will be interesting to watch this debate between John McCain and John McCain," Obama said as he campaigned in Indiana with Sen. Evan Bayh, widely considered a top-tier candidate for running mate.

When asked about the air-pressure issue during an appearance Tuesday night, McCain said: "I agree with the American Automobile Association. We should all inflate our tires." Obama had noted that keeping tires inflated and cars tuned was endorsed by both NASCAR and AAA and should be part of any comprehensive plan to reduce reliance on imported oil.

However, McCain had spent recent days ridiculing Obama's remarks about tire pressure, telling a motorcycle rally in Sturgis, S.D.: "My opponent doesn't want to drill, he doesn't want nuclear power, he wants you to inflate your tires." The Republican National Committee, meanwhile, poked fun at the idea, sending reporters tire gauges with "Obama Energy Plan" emblazoned on the side.

The two rivals have been sparring for several days over energy.

Assailing his rival's energy plans, Obama said, "that's a debate I'm happy to have. Because Senator McCain's energy plan reads like an early Christmas list for oil and gas lobbyists. And it's no wonder — because many of his top advisers are former oil and gas lobbyists."

Obama's joint appearance with Bayh led to considerable speculation that Obama might announce a decision about his choice for vice president. But it was not to be.

Bayh said Obama would bring "a breath of fresh air" to the nation's capital. He said McCain "is not a bad man," but that McCain had some bad policies.

Bayh opened his introduction of Obama by saying he had some "good news" to depart. "In five short months, the Bush administration will be done," Bayh said. A McCain victory, he said, would mean "four more years of what we've had."

Bayh, a former two-term governor and son of former Sen. Birch Bayh, is a former supporter of Hillary Rodham Clinton, has executive experience and sits on the Senate Armed Services and Intelligence committees. Furthermore, Democrats view Indiana — which has not voted for a Democrat for president since 1964 — as competitive this year.

Obama campaigned in Indiana as his campaign released a new television ad that seeks to link McCain to President Bush and questions whether McCain is the political maverick he claims to be. It shows McCain acknowledging that he agrees with Bush on most issues.

The ad also criticizes McCain on three economic issues of concern to middle-class voters: tax breaks for the wealthy, money for oil companies, and tax breaks for companies that send jobs overseas. The ad ends with a smiling McCain and Bush side by side.

McCain's campaign turned out an ad Tuesday in the other direction, suggesting that McCain differs from Bush and the GOP on important issues — without mentioning Bush by name.

In his appearance here, Obama also questioned McCain's claim to being a maverick.

While the Arizona senator has broken with his party on many issues in the past, he "reversed himself on position after position" to secure his party's nomination, Obama asserted.

"That doesn't meet my definition of a maverick."

McCain's campaign "ran an ad saying Washington is broken. No kidding. It took him 26 years to figure it out," Obama said.

All ministers to give up pay rises

2008-06-17T09:15:00.000-07:00

The Press Association

All Government ministers are to forgo their pay rises for 2008/9 to reflect the importance of public sector wage restraint at a time of economic uncertainty.

Prime Minister Gordon Brown rejected a recommendation from a review into Westminster pay that would have seen MPs receive an additional £650 "catch-up" payment on top of their annual pay rises for each of the next three years.

Ahead of a vote on MPs salaries in the Commons on July 3, he also rejected a proposal from Sir John Baker's review that their pay should be linked to the three-month average public sector earnings index, and said that they should instead rise in line with the mid-point of a basket of public sector settlements.

With some settlements yet to be negotiated, it is not clear exactly what rise this would produce for MPs in 2008/09, but it is thought likely to be in the order of 2%.

Mr Brown accepted recommendations from the Senior Salaries Review Body for pay rises next year of 1.5% for senior civil servants, 2.2% for senior military officers and very senior NHS managers, and slightly over 2.5% for judges.

Mr Brown's spokesman said that the decision to give up ministerial pay rises for one year was made by the Prime Minister at their Cabinet meeting and agreed by all those round the table.

Secretaries of State approved the decision on behalf of their departmental ministers, who will also be affected.

Ministers' pay is normally linked to the rise in average increases in senior civil service salaries. A 1.5% rise next year would have meant approximately £1,900 more for Mr Brown, £1,200 for Cabinet ministers and £500-£600 for lower-ranking ministers.

The pay restraint applies only to the portion of salaries related to their ministerial jobs.

They will receive the same rise as other MPs in their £61,181 salary for being a constituency MP.

Myanmar grants access to one U.S. aid shipment

2008-05-09T14:30:00.000-07:00

By FOSTER KLUG, Associated Press Writer

The governing military junta in Myanmar has agreed to allow a single U.S. cargo aircraft to bring in relief supplies for victims of a devastating cyclone, the Bush administration said Friday.

White House spokesman Gordon Johndroe said the United States welcomed the go-ahead to land a U.S. military C-130 in the country on Monday. He said he hopes this is the beginning of continued aid flowing into Myanmar from the United States, other nations and international relief agencies.

Earlier Friday, Ky Luu, director of the U.S. office of foreign disaster assistance, had said that skilled aid workers were being forced to sit on the sidelines as victims of last week's cyclone were dying. His comments reflect mounting frustration among the United States and other countries as they wait for permission from the military-led government to begin trying to help.

Said Johndroe: "We will continue to work with the government of Burma to allow other assistance. We hope that this is the beginning of a long line of assistance from the United States to Burma." Myanmar is also known as Burma.

Johndroe also said that while the U.S. still has limited leeway to help, "One flight is much better than no flights."

"They're going to need our help for a long time," Johndroe said. He spoke in Crawford, Texas, where President Bush's daughter, Jenna, will be wed on Saturday.

The breakthrough came after days of waiting on the U.S. side. It is not yet known what supplies will be included. U.S. aircraft have been positioned in Thailand and elsewhere nearby waiting for permission to transport supplies to the cyclone-devastated country.

The U.S. military has C-130 cargo aircraft and about a dozen helicopters in the region, ready to fly supplies into Myanmar. Pentagon spokesman Bryan Whitman said Friday that the aircraft could reach Myanmar in a few hours.

In addition, U.S. Navy ships have begun moving from the Gulf of Thailand toward Myanmar to be available if needed.

Johndroe said he could not speak to one specific cause for the breakthrough, but added: "Clearly the junta has determined that the magnitude of this disaster requires additional assistance."

Myanmar has been under military rule since 1962. The current junta came to power after snuffing out a 1988 pro-democracy movement against the previous military dictatorship, killing at least 3,000 people in the process. The junta also violently crushed protests last year.

Luu had urged the generals to allow access to foreign aid teams, including a group of U.S. specialists waiting in Thailand; he said desperately needed supplies are piling up on airport tarmacs.

"This is a very vulnerable population, and a shock of this magnitude is going to take people right off the cliff," Luu told an audience at the Center for Strategic and International Studies, a foreign affairs think tank in Washington.

He said the message to the junta is clear: If it allows U.S. officials in, "we will be able to make a difference."

"People are dying, and it's approaching a week," he said.

Myanmar's ruling military junta earlier seized two planeloads of critical aid sent by the U.N. The U.N. food program suspended help after the action, but later said it is sending two planes to Myanmar to help hungry and homeless survivors.

Officials have said that up to 1.9 million people are homeless, injured or threatened by disease and hunger, and only one out of 10 have received some kind of aid in the six days since the cyclone hit.

Tony Banbury, Asia director for the U.N. World Food Program, said by satellite from Thailand that the "big issue" is: What are the Myanmar authorities going to do? The WFP, he said, will keep working, but "I don't think we have much leverage with the authorities."

"Our hands are getting more and more tied," he said. "The situation is obviously desperate."

Sein Win, an exiled leader of Myanmar's opposition, said in an interview that the United States and other nations must more strongly pressure China, which is seen as having significant economic and political influence with Myanmar's generals.

"The world is not telling China to do what they should do ... to save people," Win said. He added that China has leverage over Myanmar, and said "the question is whether they are going to use it or not."

Hezbollah gunmen seize control of Beirut neighborhoods

2008-05-09T12:49:00.002-07:00

By BASSEM MROUE, Associated Press Writer

Shiite Hezbollah gunmen seized control of key parts of Beirut from Sunnis loyal to the U.S.-backed government Friday, a dramatic show-of-force certain to strengthen the Iranian-allied group's hand as it fights for dominance in Lebanon's political deadlock.

An ally of Hezbollah said the group intended to pull back, at least partially, from the areas its gunmen occupied overnight and Friday morning — signaling Hezbollah likely does not intend a full-scale, permanent takeover of Sunni Muslim parts of Beirut, similar to the Hamas takeover of Gaza a year ago.

The clashes eased by Friday evening as Lebanon's army began peacefully moving into some areas where Hezbollah gunmen had a presence.

But as Hezbollah gunmen celebrated in the capital's empty streets — including marching down Hamra Street, one of its glitziest shopping lanes — it was clear that the show-of-force would have wide implications for Lebanon and the entire Mideast.

Lebanon's army largely stood aside as the Shiite militiamen scattered their opponents and occupied large swaths of the capital's Muslim sector early Friday — a sign of how tricky Lebanon's politics have become.

In one instance, the army stood aside as Shiite militiamen burned the building of the newspaper of their main Sunni rival — acting only to evacuate people and then allow firefighters later to put out the blaze.

The army has pledged to keep the peace but not take sides in the long political deadlock — which pits Shiite Hezbollah and a handful of allies including some Christian groups, against the U.S.-backed government, which includes Christian and Sunni Muslims.

Three days of street battles and gunfights capped by Friday's Hezbollah move have killed at least 14 people and wounded 20 — the country's worst sectarian fighting since the 1975-1990 civil war.

Three more people were killed in two separate incidents on Friday after the Hezbollah takeover. Two of them were Druse allies of Hezbollah who died in a shooting in a hilly suburb southeast of the capital late Friday, security officials said.

For Beirut residents and those across the Mideast, it was a grim reminder of that troubled time when Beirut was carved into enclaves ruled by rival factions and car bombs and snipers devastated the capital.

The takeover by the Iranian- and Syrian-backed Hezbollah was a blow to U.S. policy as President Bush's administration has been a staunch supporter of the government in Beirut over the last three years.

"We are very troubled by the recent actions of Hezbollah," White House spokesman Gordon Johndroe said Friday.

"We urge Hezbollah to stop their attempt to defy the lawful decisions taken by the democratically elected Lebanese government. We also urge Iran and Syria to stop their support of Hezbollah and its destabilizing effects on Lebanon," he added.

The fighting also was certain to have implications for the entire Middle East at a time when Sunni-Shiite tensions are high. The tensions are fueled in part by the rivalry between predominantly Shiite Iran, which sponsors Hezbollah, and Sunni Arab powers in the region such as Saudi Arabia and Egypt.

The leaders of Qatar and Syria held talks on Lebanon in Damascus, which wields influence with Hezbollah and has close relations with Iran. Syria's official news agency said the two sides agreed the conflict in Lebanon was an internal affair and expressed hope the feuding parties would find a solution through dialogue.

About 100 Shiite Hezbollah militants wearing matching camouflage uniforms and carrying assault rifles marched down Hamra Street, a normally vibrant commercial strip in a mainly Sunni area of Beirut. They took up positions in corners and sidewalks and stopped the few cars braving the empty streets to search their trunks.

On nearby streets, dozens of fighters from another Hezbollah-allied party appeared, some wearing masks and carrying rocket-propelled grenade launchers.

The Hezbollah takeover was peaceful in some neighborhoods as the militants fanned out across the Muslim sector of the city.

Later in the day, Lebanese troops began taking up positions in some Sunni neighborhoods abandoned by the pro-government groups, but did not intervene in the clashes, which had largely tapered off into sporadic gunfire by early afternoon. Some of the gunfire was celebratory in the air by the militants.

A senior security official said the army began deploying on some streets with the end of the clashes and would soon take over the Sunnis' last stronghold of Tarik Jadideh. The official spoke on condition of anonymity because he was not authorized to speak to the media.

In some cases Hezbollah handed over newly won positions to Lebanese troops, presumably after having made clear to everyone its strength ahead of the next round of negotiations with opponents over the country's political future.

Hezbollah's power was demonstrated dramatically Friday morning when it forced the TV station affiliated to the party of Lebanon's top Sunni lawmaker, Saad Hariri, off the air. Gunmen also set the offices of the party's newspaper, Al-Mustaqbal, on fire in the coastal neighborhood of Ramlet el-Bayda.

Later in the afternoon, anti-government gunmen loyal to a pro-Syrian group attacked and set on fire a two-story building where Hariri's Future TV have their archives. The building, in the western neighborhood of Rawche, is about 100 yards from the Saudi embassy.

With top leaders Hariri of the Sunnis and Druse leader Walid Jumblatt besieged in their residences in Muslim western Beirut, officials of the pro-government majority held an emergency meeting in a mountain town in the Christian heartland northeast of Beirut

After the meeting, they issued a statement calling on the army to take control of the streets and urging Arab and international intervention to pressure the countries that support Hezbollah — meaning Iran and Syria.

"The bloody coup d'etat aims at returning Syria to Lebanon and placing Iran on the Mediterranean," said the statement read by Christian pro-government leader Samir Geagea. "Violence will not terrorize us, but it will increase our resolve," he said.

He said the Hezbollah takeover violated the constitution which governs Christian-Muslim coexistence in Lebanon.

Late Friday, a group of gunmen fired about a dozen bullets at a statue of Rafik Hariri next to the seafront road where he was killed in a massive 2005 truck bombing. The statue was raised in February on the anniversary of the assassination.

Prime Minister Fuad Saniora and several ministers were holed up in Saniora's downtown office surrounded by troops and police.

An emergency meeting of Arab foreign ministers in Cairo to discuss the crisis will be held in two days, said Egyptian Foreign Ministry spokesman Hossam Zaki.

The unrest has virtually shut down Lebanon's international airport and barricades closed major highways. The seaport also was closed, leaving one land route to Syria as Lebanon's only link to the outside world.

Myanmar seizes UN aid supplies, Junta 'not ready' to let in US

2008-05-09T11:29:00.001-07:00

Associated Press

YANGON, Myanmar - Myanmar's military leaders seized aid shipments headed for cyclone survivors and told the top U.S. diplomat there Friday that they're not ready to let in American aid workers despite warnings the country is on the verge of a medical catastrophe.

Another 4 inches of rain was forecast to fall next week as more than 1 million people waited for food, clean water, shelter and medicine to reach them. Diplomats and aid groups warned the number of dead could eventually exceed 100,000 because of illnesses and said thousands of children may have been orphaned.

The U.N. World Food Program said two planeloads of supplies containing enough high-energy biscuits to feed 95,000 people were seized Friday, prompting the world body to say it was suspending aid flights.

Later, WFP chief spokeswoman Nancy Roman said the flights would resume on Saturday while negotiations continued for the release of the supplies.

Myanmar's government acknowledged taking control of the shipments and said it plans to distribute the aid itself to the affected areas.

In a statement e-mailed to The Associated Press, government spokesman Ye Htut said the junta had clearly stated what it would do and denied the action amounted to a seizure.

"I would like to know which person or organization (made these) these baseless accusations," he said.

The WFP's regional director, Tony Banbury, directly appealed to Myanmar's military leaders in an interview with Associated Press Television News.

"Please, this food is going to people who need it very much. You and I, we have the same interests," Banbury said. "Those victims — those 1 million or more people — who need this assistance are not part of a political dialogue. They need this humanitarian assistance. Please release it."

Shari Villarosa, the U.S. charge d'affairs in Yangon, said she met with Myanmar Deputy Foreign Minister Kyaw Thu on Friday to discuss American relief operations.

Myanmar says it will accept aid from all countries, but prohibits the entry of foreign workers who would deliver and manage the operations. The junta is not ready to change that position, Villarosa said she was told.

But Myanmar, which is also known as Burma, has agreed to allow a single U.S. cargo aircraft to bring in relief supplies for victims of a cyclone, Pentagon spokesman Maj. Stuart Upton said Friday.

"We hope that this is the beginning of broader support between the United States and Burma to help the Burmese people," he said.

The U.S. has an enormous ability to deliver aid quickly, evident during the 2004 Indian Ocean tsunami that killed 230,000 people in a dozen nations.

More than 60,000 people are dead or missing and entire villages are submerged in the Irrawaddy delta after Saturday's cyclone. Many of the survivors waiting for food, clean water and medicine were crammed into Buddhist monasteries or camped outdoors.

The U.N. estimates 1.5 million people have been severely affected and has voiced concern about the disposal of dead bodies.

"Many are not buried and lie in the water. They have started rotting and the stench is beyond words," Anders Ladekarl, head of the Danish Red Cross.

About 20,000 body bags were being sent so volunteers from the Myanmar chapter of the Red Cross can start collecting bodies, he said.

The U.N.'s World Meteorological Organization said its models forecast three days of strong rain next week that could dump 4 inches in Myanmar beginning Thursday or Friday.

Heavy rain could worsen the situation in the storm-affected coastal region, the meteorological agency said, though it cautioned that forecasts beyond five days could change.

In the village of Kongyangon, someone had written in Burmese, "We are all in trouble. Please come help us" on black asphalt, a video from the Norway-based opposition news network, the Democratic Voice of Burma, showed. A few feet away was another plea: "We're hungry."

In Yangon, the price of increasingly scarce water has shot up by more than 500 percent, and rice and oil jumped by 60 percent over the last three days, the Danish Red Cross said.

The U.N. has grown increasingly critical of Myanmar's refusal to let in foreign aid workers who could assess the extent of the disaster with the junta apparently overwhelmed. None of the 10 visa applications submitted by the WFP has been approved.

"The frustration caused by what appears to be a paperwork delay is unprecedented in modern humanitarian relief efforts," Risley said. "It's astonishing."

The junta said in a statement Friday it was grateful to the international community for its assistance — which has included 11 chartered planes loaded with aid supplies — but the best way to help was just to send in material rather than personnel.

Andrew Brookes, an aerospace specialist at the IISS, an independent think tank, said Myanmar has about 15 transport planes but most are small jets not adequate to carry hundreds of tons of supplies. The country has fewer than 40 helicopters and only a fraction may be operational, he said.

"Even if they were all serviceable it's not even a drop in the ocean. The task is so awesome it would phase even a sophisticated force like the British, French or Germans," Brookes said.

It is not clear how much aid has been delivered to the victims in the Irrawaddy delta.

"Believe me, the government will not allow outsiders to go into the devastated area," said Yangon food shop owner Joseph Kyaw.

"The government only cares about its own stability. They don't care about the plight of the people," he said.

Three Red Cross aid flights loaded with shelter kits and other emergency supplies landed in Myanmar Friday without incident.

"We are not experiencing any problems getting in (unlike) the United Nations," Danish Red Cross spokesman Hans Beck Gregersen said.

One relief flight was sent back after landing in Yangon on Thursday because it carried a search-and-rescue team and media representatives who had not received permission to enter the country, the junta said. It did not give details, but said the plane had flown in from Qatar.

According to state media, 23,335 people died and 37,019 are missing from Cyclone Nargis.

Grim assessments were made about what lies ahead. The aid group Action Against Hunger noted that the delta region is known as the country's granary, and the cyclone hit before the harvest.

"If the harvest has been destroyed this will have a devastating impact on food security in Myanmar," the group said.

Zimbabwe announces poll run-off

2008-05-02T14:11:00.000-07:00

By Nelson Banya

HARARE - Zimbabwe opposition leader Morgan Tsvangirai beat President Robert Mugabe in the presidential election but faces a run-off vote after failing to win an outright majority, the electoral body said on Friday.

The opposition Movement for Democratic Change called the announcement of the long-delayed result "scandalous daylight robbery". It says Tsvangirai won more than 50 percent at the March 29 election and Mugabe's 28-year rule is over.

But the MDC has few options. If Tsvangirai refuses to take part in a second round of votes, then Mugabe would automatically keep his hold on power according to electoral law.

An aide to Mugabe said the president accepted the result of the first round and would contest the run-off.

MDC Secretary General Tendai Biti told a news conference in neighbouring South Africa that the results clearly showed that Tsvangirai should be declared president. He said the party would decide at the weekend whether to contest a run-off.

"According to the law, the person receiving the highest number of votes is the president of the republic of Zimbabwe with effect from the day of such declaration," he said.

"Even on their own announcement, we have won this election and therefore Morgan Tsvangirai is to be declared the president of the republic of Zimbabwe."

Chief Elections Officer Lovemore Sekeramayi said Tsvangirai won 47.9 percent with Mugabe, who has ruled since independence from Britain, on 43.2 percent. Independent Simba Makoni, a ruling party defector, took 8.3 percent.

"Since no candidate has received the majority of the total votes cast ... a second election shall be held on a date to be announced by the commission," Sekeramayi said.

The Zimbabwe Electoral Commission (ZEC) will set the date of the runoff. By law, a second round should be held within 21 days of the result, but the ZEC has the power to extend it. Political observers say it is likely to extend the period to within about 40 days.

The United States and former colonial power Britain questioned the credibility of the official results more than one month after the election and voiced concern over how fair a run-off could be.

The European Commission also called on Friday for Zimbabwe to allow international monitors to ensure a free and fair presidential run-off after the electoral body there said no clear winner emerged from the first round.

Opposition spokesman Nelson Chamisa said the verification of the votes had not been done properly.

"This whole thing is a scandal, scandalous daylight robbery and everyone knows that," he told Reuters. "We won this election outright, and yet what we are being given here as the outcome are some fudged figures meant to save Mugabe and ZANU-PF."

He said the party executive would decide the next move. Initial MDC estimates had given Tsvangirai 50.3 percent of the vote although independent and ruling ZANU-PF party projections had suggested he was unlikely to win an outright majority.

NYPD acquittals in groom shooting spark anger, outrage

2008-04-25T13:59:00.000-07:00

By TOM HAYS, Associated Press Writer

Three detectives were acquitted Friday in the 50-shot killing of an unarmed groom-to-be on his wedding day, a case that put the NYPD at the center of another dispute involving allegations of excessive firepower.

Scores of police officers surrounded the courthouse to guard against potential chaos, and as news of the verdict spread, many in the crowd began weeping. Others were enraged, swearing and screaming "Murderers! Murderers!" or "KKK!"

Inside the courtroom, spectators gasped. Sean Bell's fiancee immediately walked out of the room; his mother cried.

Bell, a 23-year-old black man, was killed in a hail of gunfire outside a seedy strip club in Queens on Nov. 25, 2006 as he was leaving his bachelor party with two friends. The case ignited the emotions of people across the city and led to widespread protests among those who felt the officers used unnecessary force.

Officers Michael Oliver, 36, and Gescard Isnora, 29, stood trial for manslaughter while Officer Marc Cooper, 40, was charged with reckless endangerment. Two other shooters weren't charged. Oliver squeezed off 31 shots; Isnora fired 11 rounds; and Cooper shot four times.

The case brought back painful memories of other NYPD shootings, such as the 1999 shooting of Amadou Diallo — an African immigrant who was gunned down in a hail of 41 bullets by police officers who mistook his wallet for a gun. The acquittal of the officers in that case created a storm of protest, with hundreds arrested after taking to the streets in demonstration.

Though emotions ran high, there were no immediate problems outside the courthouse Friday, where many wore buttons with Bell's picture or held signs saying "Justice for Sean Bell." Some people approached police after the verdict was read, but they were held back and the jostling died down quickly.

William Hardgraves, 48, an electrician from Harlem, brought his 12-year-old son and 23-year-old daughter to hear the verdict. "I hoped it would be different this time. They shot him 50 times," Hardgraves said. "But of course, it wasn't."

The officers, complaining that pretrial publicity had unfairly painted them as cold-blooded killers, opted to have the judge decide the case rather than a jury.

The judge, Justice Arthur Cooperman, indicated when he delivered the verdict that the officers' version of events was more credible than the victims' version. "The people have not proved beyond a reasonable doubt that each defendant was not justified" in firing, he said.

Hours later, the officers appeared at a news conference.

"I'd like to say sorry to the Bell family for the tragedy," Cooper said, thanking God, his lawyers and the police officers who supported him.

The U.S. attorney's office said after the verdict that it had been monitoring the state's prosecution and would conduct an independent review of the case. The Rev. Al Sharpton, who represents Bell's family, called for a federal investigation.

"This verdict is one round down, but the fight is far from over," Sharpton said on his radio show. "What we saw in court today was not a miscarriage of justice. Justice didn't miscarry. This was an abortion of justice."

Michael Palladino, president of the Detectives Endowment Association, responded angrily to Sharpton's suggestion that the verdicts were unfair.

"That's despicable for him to say that because we have the greatest criminal justice system on earth," he said.

The nearly two-month trial was marked by deeply divergent accounts of the night.

The defense painted the victims as drunken thugs who the officers believed were armed and dangerous. Prosecutors sought to convince the judge that the victims had been minding their own business, and that the officers were inept, trigger-happy aggressors.

Both sides were consistent on one point: The utter chaos surrounding the last moments of Bell's life.

"It happened so quick," Isnora said in grand jury testimony. "It was like the last thing I ever wanted to do."

Bell's companions — Trent Benefield and Joseph Guzman — offered dramatic testimony. Both were wounded in the shooting; Guzman still has four bullets lodged in his body.

Referring to Isnora, Guzman said, "This dude is shooting like he's crazy, like he's out of his mind."

The victims and shooters were set on a fateful collision course by a pair of innocuous decisions: Bell's to have a last-minute bachelor party at Kalua Cabaret, and the undercover detectives' to investigate reports of prostitution at the club.

As the club closed around 4 a.m., Sanchez and Isnora claimed they overheard Bell and his friends first flirt with women, then taunt a stranger who responded by putting his right hand in his pocket as if he had a gun. Guzman, they testified, said, "Yo, go get my gun" — something Bell's friends denied.

Isnora said he decided to arm himself, call for backup — "It's getting hot," he told his supervisor — and tail Bell, Guzman and Benefield as they went around the corner and got into Bell's car. He claimed that after warning the men to halt, Bell pulled away, bumped him and rammed an unmarked police van that converged on the scene with Oliver at the wheel. The detective also alleged that Guzman made a sudden move as if he were reaching for a gun.

Guzman said Isnora "appeared out of nowhere" with a gun drawn and shot him in the shoulder — the first of 16 shots to enter his body.

"That's all there was — gunfire," he said. "There wasn't nothing else."

With tires screeching, glass breaking and bullets flying, the officers claimed that they believed they were the ones under fire. Oliver responded by emptying his semiautomatic pistol, reloading, and emptying it again, as the supervisor sought cover.

The truth emerged when the smoke cleared: There was no weapon inside Bell's blood-splattered car.

Saving Secrets From Extreme Savers

2008-04-16T13:06:00.000-07:00

By Elaine Appleman Grant

Lynn Tostado is almost embarrassed about her hobby: "Saving money is, well, a passion of mine," she says. "I've always kept my eyes out for creative ways to stretch a dollar."

The Dover, N.H., accounting manager had a compelling reason to practice thrift. She spent a decade at home raising her four kids. Then she and her husband put three of them through college simultaneously.

"I really had to watch our pennies," she says.

These days, as the cost of food and gas skyrockets, credit becomes more difficult to get and consumer confidence reaches an all-time low, saving has become a must. Tostado's years of experience as a passionate saver stand her in good stead. She's hardly alone. There's a whole group of people who are passionate about saving without living a Spartan life.

Call them "uber savers."

Finding Ways to Save

1. Saving on Retail
2. Groceries
3. Automobiles
4. Giving
5. Commuting & housing
6. Phone services & other necessities
7. Travel

1. Saving on Retail

Michele Carter, a CPA and mother of two in Barrington, N.H., is a hawk about tracking sales prices on her purchases and asking retailers for the savings. For example, Carter keeps her Christmas gift receipts and, after the holiday, checks to see if retailers have slashed prices on any of the gifts she's already plunked under the tree.

Then she calls the merchant and, without returning the item, asks the store to refund the difference between her cost and the new sales price. She then gives the difference to the gift recipient.

"I once got my mother-in-law $60 back on a gift we purchased for her," she says.

Carter also claims the price guarantees offered by stores like Lowe's and Home Depot: If you find the same product for less elsewhere, you get the item for 10 percent off the lowest price.

"I have seen an ad for something I purchased, after the purchase, and I have been given the lower price," she says.

Keeping an eye on these promotions paid off recently when Carter bought a new refrigerator. After she saw an ad for the same refrigerator at a competitor's store, she netted close to $100 in savings with a single phone call. Her advice: Call, don't visit the store. In Carter's experience, a local store manager will always find a reason to say no.

Carter, an inveterate comparison shopper, also shops on home repairs. Recently, she bought a new Pella front door at Lowe's, spending $1,000 less than Pella's asking price. Then, rather than paying Lowe's $800 installation fee, she hired a local carpenter for $400 -- and paid that tab with the $400 tax credit she'll receive for installing the energy-saving door.

Stay-at-home mom Martha Andersen is an avid reader, as are her husband and her two children. Last year, Andersen, who lives in Durham, N.H., decided to spend only $4 per person on Christmas gifts.

She acquired most of her gifts through Paperbackswap.com, a site on which members can trade paperback and hardcover books for the cost of postage, and Daedalus, a discount book catalog that Andersen says offered "really nice gifts for less than $4." You can also swap CDs on SwapaCD.com and DVDs at recently launched SwapaDVD.com.
Melissa Ragan, a teacher in an inner-city public school in Lawrence, Mass., also loves Paperbackswap.com. She uses the site to get books for her special-needs classroom.

Ragan is also a Freecycle devotee. Freecycle.org, a membership organization with thousands of local chapters, helps people give away unwanted goods, such as brand-new baby clothes, computers and furniture, to other "freecyclers" so that it won't end up in landfills.

Most of the time, it's not worn-out Salvation Army merchandise. Not long ago, the Boston chapter featured an entire Ethan Allen living room set free for the taking. You can "ask" for something specific, and often, you'll get it. People frequently ask for exercise equipment, like treadmills, and find treasures within a day.

Not surprisingly, uber savers are also crazy about Craigslist.org. Chris Grande, a financial planner and managing partner of Heritage Financial Group in Medford, Mass. bought a $5,000 leather living room set for only $200 when he noticed the classified ad on his local Craigslist site.

2. Groceries

What does the high price of food mean to the average frugal grocery shopper? Eat locally. Produce, meat, poultry and eggs grown nearby have always been better for the environment. Now, because of high fuel prices, buying local is also the smartest way to shop.

Purchase produce in season and frequent farmer's markets, where you'll find the best deals on the freshest fruits and vegetables. Invest in a freezer, if you have the space, and buy your meat locally as well.

Uber saver Mike Hegarty, a CPA in Des Moines, Iowa, says he saves $500 a year on meat by purchasing whole animals from local farms.

In case you've never done it and you're having a hard time visualizing it in your garage, when you buy a quarter of a cow from a local farm, a butcher cuts it into the familiar hamburger, flank and sirloin steaks and packages it for you. An extra bonus: Local farms often raise all-natural or even organic beef, pork and chicken.

If you're really devoted to cutting your grocery bill, try buying through a co-op. To do this, you'll need to form a "buying club" with friends and neighbors; forming a group will allow you to order food at wholesale prices from co-op distributors like Associated Buyers in Barrington, N.H., or Rainbow Natural Foods in Aurora, Colo.

You'll need to put in some effort, says Erin Fallon, a Strafford, N.H., housewife who's been purchasing organic groceries through a co-op for years. One group member gathers orders and collects money; then the women meet at another member's home to divvy up food once a month. The effort is well worth it, though. Fallon says she saves $300 to $500 a month.

3. Automobiles

Need a new car? The good news is that with demand down, automakers are unlikely to raise their prices this year, says economist Gus Faucher with Economy.com.

When buying, take a tip from master saver Carter. Michele Carter and her husband, Richard, negotiate with dealers for each other's cars.

"Dealers have to get on the phone and actually negotiate with someone who is not emotionally invested in the purchase. So far, this has helped us not get taken," she says.
When Michele Carter fell in love with a 2006 Saab last year, she could see that the dealer wouldn't reduce the price for her "because they could see that I was sold on the vehicle." So she turned to Richard for help. He talked the dealer into reducing the price of the extended warranty by $1,000 and persuaded him to throw in Bluetooth for free. Carter was thrilled with her new car -- and the price.

A ream of information exists on how to get the best price on a new car. But what's the cheapest way to finance it?

Wellesley, Mass., financial planner Steve Doucette advises that you figure out which car you want and wait for the manufacturer's year-end zero percent financing deals.

Or consider buying a car at an auto auction. There are two kinds -- government-run auctions open to the public and dealer auctions, where used-car dealers get many of the cars they sell on the lot.

Financial planner Chris Grande admires a friend who bought a used Mercedes at a dealer auction, saving at least $4,000 in the process. In order to get access to dealer auctions, you'll need to go with a friend who has a dealer license and is willing to do a favor for you.

In addition to actual car dealers, tow-truck companies, auto body shops and others also have dealer licenses, Grande says.

4. Giving

Sarah Auerbach, a stay-at-home mother in Acton, Mass., and her husband, programmer Laird Nelson, like to donate to charities. But they're saving to buy a larger home.

Tired of reactively contributing in response to mailed solicitations, they visited their accountant for advice on how much to give annually. Then they listed several favorite causes and assigned weights to each -- for instance, 15 percent for women's rights, 10 percent each to several local hunger-fighting organizations, and so on. Then they did the math and figured out how much money they'd be giving to each of eight or 10 nonprofits.

To spread out the expense, they designated payments to one or two charities monthly.

5. Commuting and Housing

Hegarty, the Des Moines CPA, saves money in a variety of ways. He and his family clip coupons and turn off lights. But a self-proclaimed cheapskate, Hegarty believes the "small stuff" doesn't really pay off. It's the big stuff, like making wise choices about where to live, that really counts.

Hegarty and his wife, who have four children, chose to buy a $150,000 farmhouse some miles outside of the suburbs rather than living in "$250,000 to $350,000 yuppie neighborhoods with my friends," Hegarty says. "That saves us $1,500 a year in (property) taxes and $6,500 a year in mortgage interest."

Hegarty acknowledges, however, that living some distance away from town costs him an additional $800 a year in gasoline and additional wear on his car. The Hegarty family plans trips to town in order to run several errands at once. He figures this careful planning saves them $500 a year in gasoline.

Their choice to live in a modest house allows Hegarty's wife to stay home with their kids, rather than working full time for a $50,000 salary.
On the other hand, living close to town also can save you money. Uber saver Martha Andersen spends next to nothing on gasoline. She and her husband Peter chose to live in downtown Durham, a small New Hampshire college town, rather than buying a house in the suburbs.

"We can walk to restaurants and grocery stores, the library, the bank, the car service, church, friends and to my father-in-law's," she says.

Since oil hit $100 a barrel, saving on gas has become as important as getting a cheap mortgage.

Living in Exeter, N.H., Melissa Ragan and her husband, Alex, sold Melissa's 2006 Toyota Camry in January 2008 and became a one-car couple. They carpool together to work and Alex takes the train home. They're saving $725 a month -- a $400 car payment, $75 in insurance and $250 in gas and tolls.

Rochester, N.Y., scientist Wilton Alston also forgoes four wheels whenever he can. He bikes the 15 miles to and from work whenever the weather is good, saving money -- and burning calories -- along the way.

By far the most ingenious strategy for saving on gas and auto costs comes from Dean Frisoli, who "slugs" to work. Slugging is a form of legal hitchhiking available to commuters outside of Washington, D.C., where the traffic is notorious.

In order to take the faster high-occupancy vehicle, or HOV, lane to work, a car must carry two passengers. At designated parking lots, so-called "sluggers" like Frisoli, a transportation policy analyst, line up to catch free rides from drivers eager to use the HOV lane. In the year since he started slugging, reports Frisoli, the former train commuter has saved more than $2,000.

"Other than the ice storm the day of the Virginia primary, where it took me five hours to get home, it has been a completely painless experience," he says.

Chetan Shah, a vice president at Bank of America in Charlotte, N.C., advocates paying for parking with pretax dollars. Tax law does permit this.

"Most of us ... have to pay either for parking or a monthly bus or train pass," he writes. "You can pay it pretax by asking the company you work for to deduct it directly from your paycheck."

6. Phone Service and Other Necessities

Financial planner Grande starts his conversation on saving money this way: "I'm talking to you on Skype right now."

Skype is an Internet-based phone system that lets computer users make calls for free or for only a few dollars a month. You don't need an actual phone -- just a computer and, if you wish, a headset, which costs about $20 at Radio Shack or Best Buy.

Download Skype for free, and you can "call" other Skype users for nothing. Pay $3 a month and you can make unlimited calls to land line and cell phone users.

Grande started using it last year and says now his office pays only the minimum local charge for having a land line -- less than $30 a month.
He uses Skype when he travels, making phone calls from WiFi hotspots in other states and even in other countries. When he traveled to Singapore last year, he called friends in the U.S. for only two cents a minute.

To save on utilities, conserve energy. Get an energy audit, says Larry Chretien, executive director of Mass Energy Consumers Alliance, a nonprofit home heating company with offices in Jamaica Plain, Mass., and Providence, R.I.

When it comes to energy efficiency, Chretien says, "We honestly think every home is different."

In many states, electric and gas utilities offer energy audits at no charge, and some will even help homeowners pay for their recommended changes. When this reporter had her home audited, Public Service of New Hampshire paid $2,000, or more than two-thirds of the total cost of energy-saving improvements, like insulating and installing programmable thermostats.

Call your electric or gas company or search their Web sites for energy auditing programs.

7. Travel

Tostado, the uber saver from Dover, N.H., hoards credit card rewards points. When she turned 50 three years ago, she and her husband set a goal of running road races in all 50 states within 10 years. So far, they've managed 19 states. Those plane tickets could add up -- but not for them.

Their strategy? Never, ever use cash when you can use a credit card. They win multiple free flights a year by paying virtually all of their bills -- including groceries, utilities and their mortgage -- with a Southwest Airlines card.

They even buy Dunkin' Donuts gift cards on credit and use them to buy their morning coffee rather than "wasting" a couple of dollars' worth of points every day. The couple sets aside an hour a week to pay bills together and always pays the full credit card balance so that they never pay interest.

Doucette and his family can afford posh vacations, but sometimes the tab is just too high. When their traditional vacation choice, a Beaches resort, priced out at $8,000 to $12,000, the Doucettes decided to share their vacation. They and some friends rented a beachfront Jamaican villa, complete with chef and bartender, and spent less than $5,000 for the week.

If you're going to travel overseas, consider vacationing in Mexico, the Caribbean or even in Africa or Asia, where the dollar is stronger than it is in Europe.

To get the cheapest fares, use a service like FareCompare.com, which sends e-mails the instant a cheap fare becomes available for your destination of choice. Don't procrastinate buying that ticket -- the cheapest fares go to only about 10 percent of travelers.

Zimbabwe observers point to runoff vote, suspect possible rigging

2008-03-31T14:07:00.000-07:00

(CNN)

Zimbabwe's government Monday began releasing the results of the weekend parliamentary vote, but offered no data on the hotly contested presidential race.

President Robert Mugabe is facing the most formidable challenge to his 28-year rule from two opponents, including his former finance minister, Simba Makoni, who is running as an independent.

The opposition Movement for Democratic Change, led by presidential contender Morgan Tsvangirai, announced Sunday that it had won enough votes in Saturday's presidential and parliamentary election to end the 84-year-old incumbent's reign.

But a group of non-governmental organizations monitoring the election released exit polling data Monday that indicated the race possibly headed for a runoff vote.

Noel Kututwa, chairman of the Zimbabwe Election Support Network, said that his group's polling data gave Tsvangirai 49.4 percent of the vote -- short of the 51 percent needed to win. Mugabe was second with 41.8 percent, and Makoni third with 8.2 percent.

Election authorities have released no data on the presidential race. Government officials said it takes time to verify and "harmonize" the counts.

The United States, which has raised concerns about election fraud in the southern African country, called on Zimbabwe's government to make sure "the counting of the votes ... ensures the will of the people is heard," State Department spokesman Tom Casey said Monday.

While election observers have urged prompt reporting of the results to avoid political unrest, government officials said it would take time to verify and "harmonize" the counts.

It is unlikely that Mugabe will receive any congratulations from the U.S. if he emerges as the victor.

Speaking to reporters during her trip to the Middle East, U.S. Secretary of State Condoleezza Rice called the long-time president and his government "a disgrace to the people of Zimbabwe and a disgrace to southern Africa and to the continent of Africa as a whole."

Kututwa said the delay in announcing all the results was "fueling speculation" that Mugabe's government was tampering with the ballot count. His group was monitoring the election.

"This is very worrying," Kututwa said.

Despite the lack of official results, the MDC insisted it had won enough votes to end Mugabe's rule, which has seen the nation slide into economic meltdown.

Defying a government order, the Movement for Democratic Change said it tallied the results posted outside each polling station -- and based on one-third of the returns, that count shows Tsvangirai won 67 percent of the votes, journalists inside Zimbabwe told CNN.

The Zimbabwean government has denied CNN and other international news organizations permission to enter the country to report on the elections.

MDC also claimed it had won the majority of parliamentary seats in Zimbabwe's urban centers, including Harare and Bulawayo. It enjoys widespread support in the cities, while Mugabe's Zanu-PF party has its base in Zimbabwe's rural areas, where white farmers have been driven out.

By Monday evening, just 67 of 210 parliamentary races were released -- ZANU-PF won 31; MDC won 30; and six won by a party that split from the MDC.

Two members of President Robert Mugabe's cabinet -- Justice Minister Patrick Chinamasa and Interactive Affairs Minister Chen Chimutengwende -- lost their seats to the MDC. But Mugabe's nephew, Patrick Zhuwao, won a seat in his uncle's home district.

MDC spokesman Nelson Chamisa held onto his seat in a district of Harare.

Kututwa said some MDC members had been arrested for celebrating in the streets.

MDC leaders began declaring victory just hours into Saturday's vote. But there are concerns that if each side claims victory, tensions could ignite and violence could erupt -- as happened this year in Kenya.

Observers from the South African Democratic Alliance opposition party also said its sources had said the opposition had won a majority in most areas.

"If this is not reflected in the results, this will be yet another indication that the election was rigged," they added.

Critics of the government had predicted voting would be rigged. The United States warned of a possible unfair election, and New York-based Human Rights Watch said the elections were likely to be "deeply flawed."

Makoni, who was expelled from the Zanu-PF after announcing his own bid to unseat Mugabe, said it was "premature to judge that the environment before the balloting has had some impediment."

Makoni said: "We know our people are clear about what they want... We will wait and see the results."

The announcement of results appeared to have been delayed despite election observers saying some results were known on Saturday night, four hours after polls closed. In previous elections, partial results were announced hours after voting ended.

Criticism of Mugabe has grown across Zimbabwe, with unemployment running at 80 percent. Most Zimbabweans survive on less than $1 a day and inflation is the highest in the world at more than 100,000 percent.

People also suffer from chronic shortages of food, water, electricity, fuel and medicine, and thousands of Zimbabweans flood into neighboring countries looking for jobs.

Part of the economic freefall is traced to Mugabe's land redistribution policies, including his controversial seizure of commercially white-owned farms in 2000.

Mugabe gave the land to black Zimbabweans he said were cheated under colonialist rule, and white farmers who resisted were jailed.

In 2005, Mugabe launched Operation Clean Out the Trash, in which he razed slum areas across the country. Mugabe denies mismanagement and blames his country's woes on the West, saying sanctions have harmed the economy.

Curious details discovered on J.F. Kennedy's assasination

2008-02-18T01:02:00.000-08:00

Associated Press

A curious transcript purportedly about President John F. Kennedy's assassination has been discovered among boxes of memorabilia that were long forgotten in an old safe at the Dallas County district attorney's office.

While the transcript reads like a conspiracy theorist's dream — Lee Harvey Oswald and Jack Ruby plotting to kill Kennedy — the DA's top assistant said it's likely material for a proposed movie.

Other items found in an old safe on the 10th floor of the county courthouse include letters to and from former DA Henry Wade, the now-dead prosecutor in the Ruby trial, The Dallas Morning News reported in Sunday's editions. Ruby shot and killed Kennedy assassin Oswald two days after the president's death.

There are also letters to Ruby, records from his trial, a gun holster and clothing that probably belonged to Ruby and Oswald, said District Attorney Craig Watkins, who planned to discuss the find at a news conference Monday.

Much of the attention is bound to focus on the transcript purporting that Ruby and Oswald met at Ruby's nightclub on Oct. 4, 1963, less than two months before the Nov. 22 assassination. In it, they talked of killing the president because the Mafia wanted to "get rid of" his brother, Attorney General Robert Kennedy.

Says Oswald in the transcript, "I can still do it, all I need is my rifle and a tall building; but it will take time, maybe six months to find the right place; but I'll have to have some money to live on while I do the planning."

Gary Mack, curator of the Sixth Floor Museum near where the president was shot, hasn't seen the transcript but doubts it's real. It is well-documented that Oswald was in Irving the evening of Oct. 4, at a home where his wife was staying, Mack said.

"The fact that it's sitting in Henry Wade's file, and he didn't do anything, indicates he thought it wasn't worth anything," Mack said. "He probably kept it because it was funny. It's hilarious. It's like a bad B movie."

Terri Moore, Watkins' top assistant, said she believes the latest transcript is part of a movie Wade was working on with producers. The former prosecutor wrote about the proposed movie, "Countdown in Dallas," in letters found in the safe.

"It's not real. Crooks don't talk like that," Moore said. "If that transcript is true, then history is changed because Oswald and Ruby were talking about assassinating the president."

The transcript resembles one published in a report by the Warren Commission, which investigated Kennedy's assassination and determined that Oswald was the lone gunman. The FBI determined that conversation between Oswald and Ruby about killing the governor was definitely fake.

The account in the commission report was "re-created" for authorities by a now-deceased Dallas attorney who claimed he recognized Oswald in a newspaper photo as the man he saw talking to Ruby.

It's unknown whether the boxes Watkins and others found in the courthouse about a year ago have information previously undisclosed to the public or the Warren Commission.

The search began after Watkins was told the gun used to kill Oswald was somewhere in the courthouse. They didn't find the gun, which Mack said is privately owned. The boxes probably sat in the safe since being moved when the courthouse opened in 1989.

The items are still being processed and eventually will be donated to an entity that can authenticate them, preserve them and make them available to the public, Watkins said.

"It's interesting, and it's not ours," Watkins said. "It's the public's."

Details on NIU gunman emerge

2008-02-15T11:42:00.000-08:00

By CARYN ROUSSEAU and DEANNA BELLANDI, Associated Press Writers

The man who gunned down five people at Northern Illinois University in a suicidal rampage became erratic after halting his medication and carried a shotgun to campus inside a guitar case, police said Friday.

The man, 27-year-old former student Stephen Kazmierczak, was also wielding three handguns during Thursday's ambush inside a lecture hall.

Two of the weapons — the pump-action Remington shotgun and a Glock 9mm handgun — were purchased legally less than a week ago, on Feb. 9, authorities said. They were purchased in Champaign, where Kazmierczak was enrolled at the University of Illinois.

A spokesman for the federal Bureau of Alcohol, Tobacco and Firearms said the other two guns were also legally purchased and traced to the Champaign gun shop, but the ATF was still determining when Kazmierczak picked them up.

Kazmierczak had a valid Firearm Owner's Identification Card, which is required for all Illinois residents who buy or possess firearms, authorities said.

The gunman's father, Robert Kazmierczak, briefly came out of his single-story house in Lakeland, Fla., to talk to reporters.

"Please leave me alone. I have no statement to make and no comment. OK? I'd appreciate that. This is a very hard time. I'm a diabetic and I don't want to go into a relapse," he said before breaking down crying.

He then went back inside his house, which has a sign on the front door that says "Illini fans live here."

President Bush talked by telephone with NIU President John Peters and said people will be praying for the families of the victims and for the Northern Illinois University community.

Campus Police Chief Donald Grady said investigators recovered 48 shell casings and six shotgun shells following the attack in Cole Hall. The gunman paused to reload his shotgun after opening fire on a crowd of terrified students in a geology class, sending them running and crawling toward the exits. He shot himself to death on the stage of the hall.

Kazmierczak, whose first name was earlier listed as Steven, was taking some kind of medication, Grady said.

"He had stopped taking medication and become somewhat erratic in the last couple of weeks," Grady said, declining to name the drug or provide other details.

Correcting information his office released earlier Friday, DeKalb County Coroner Dennis J. Miller said five students, not six, were killed in the rampage, in addition to the gunman. Miller said the higher victim total was the result of confusion over the fate of a patient taken to another county for treatment.

"There was a miscommunication," Miller said.

The motive of the killer, who graduated from NIU in 2006 but was a student there as recently as last year, was still not known. Grady said Kazmierczak was an "outstanding" student while at NIU and authorities were still trying to determine why he would kill. There was no known suicide note.

"We were dealing with a disturbed individual who intended to do harm on this campus," Peters said.

Witnesses said the gunman, dressed in black and wearing a stocking cap, emerged from behind a screen on the stage of 200-seat Cole Hall and opened fire just as the class was about to end around 3 p.m. Officials said 162 students were registered for the class but it was unknown how many were there Thursday.

John Giovanni, 20, of Des Plaines said the gunman calmly fired at the greatest concentration of students.

"He was shooting from the hip. He was just shooting," said Giovanni, who turned and ran so fast that he lost a shoe. "I was running but I was hurtling over people in the fetal position."

Peters said four people died at the scene, including three students and the gunman. The other died at a hospital. The teacher, a graduate student, was wounded but was expected to recover.

Miller released the identities of four victims: Daniel Parmenter, 20, of Westchester; Catalina Garcia, 20, of Cicero; Ryanne Mace, 19, of Carpentersville; and Julianna Gehant, 32, of Meridan.

Another victim, Gayle Dubowski, a 20-year-old sophomore from Carol Stream, died at a Rockford hospital, Winnebago County Coroner Sue Fiduccia said.

The killer had been a graduate student in sociology at Northern Illinois as recently as spring 2007, Peters said. He also said the suspect had no record of police contact or an arrest record while attending Northern Illinois, a campus with 25,000 students about 65 miles west of Chicago.

The gunman was a student at the University of Illinois in Urbana-Champaign, Chancellor Richard Herman said. The university is about 140 miles south of Chicago.

Lauren Carr said she was sitting in the third row when she saw the shooter walk through a door on the right-hand side of the stage, pointing a gun straight ahead.

"I personally Army-crawled halfway up the aisle," said Carr, a 20-year-old sophomore. "I said I could get up and run or I could die here."

She said a student in front of her was bleeding, "but he just kept running."

"I heard this girl scream, 'Run, he's reloading the gun!'"

More than a hundred students cried and hugged as they gathered outside the Phi Kappa Alpha house early Friday to remember Parmenter. Flowers, candles and small notes were left in the snow near Cole Hall. Flags were flying at half-staff. At a house across the street, a hand-drawn banner made out of a sheet said: 'NIU We Pray 4 U'

The campus was closed on Friday. Students were urged to call their parents and were offered counseling at any residence hall, according to the school Web site.

The school was closed for one day during final exam week in December after campus police found threats, including racial slurs and references to shootings earlier in the year at Virginia Tech, scrawled on a bathroom wall in a dormitory. Police determined after an investigation that there was no imminent threat and the campus was reopened. Peters said he knew of no connection between that incident and Thursday's attack.

Kenya violence grows after opposition leader slain

2008-01-29T10:23:00.000-08:00

By TOM MALITI, Associated Press Writer

Gunmen killed an opposition lawmaker in Nairobi and government helicopters fired on crowds in the Rift Valley on Tuesday, the latest flare-up of the ethnic fighting that has gripped Kenya since its disputed presidential election.

Under increasing pressure to share power, President Mwai Kibaki and the opposition leader, Raila Odinga, formally opened negotiations but the two remained far apart on the vote outcome — an issue each indicates is not negotiable.

Odinga insisted what needed "the most urgent attention" was the resolution of the flawed election results. Kibaki deplored the fact that some Kenyans "have been incited to hate one another and view each other as enemies."

Former U.N. Secretary-General Kofi Annan is helping mediate the dispute and Tuesday's meeting.

"The people need you," he told them. "They want you to take charge of the situation and do whatever possible to prevent the downward slide into chaos that is threatening this country."

Mugabe Were, who was shot to death as he drove home, was among a slew of opposition members who won seats in the legislative vote held at the same time as the presidential election. The opposition, which won the most seats in parliament, accuses Kibaki of stealing the presidential vote.

After Were's death, groups of armed youths began gathering in two Nairobi slums. Sabat Abdullah, a slum resident, said a gang hefting machetes dragged a doctor from the president's Kikuyu tribe from his clinic "and then cut and cut until his head was off."

Similar scenes have convulsed western Kenya, where police in helicopters fired on crowds on Tuesday. Since the Dec. 27 election, the death toll across a country once among the most stable in Africa has soared to over 800. Much of the violence has pitted other tribes against Kikuyu, long resented for their dominance of Kenyan politics and business.

U.S. Sen. Barack Obama, the Democratic presidential hopeful whose father was Kenyan, appealed for peace on Nairobi's Capital FM radio station.

"Now is the time for all parties to renounce violence. Now is the time for Kenyan leaders to rise above party affiliations and past ambitions for the sake of peace," Obama said. "Most troubling are new indications that the violence is being organized, planned and coordinated."

In Washington, the State Department spokesman Tom Casey said the ongoing violence underscored the importance of negotiations.

"This is a political dispute and it requires a political solution. The two leaders have to come to some agreement on how that is done," Casey said.

Police said Were's death was being treated "as a murder but we are not ruling out anything, including political motives."

"We suspect the foul hands of our adversaries," Odinga said as he made his way Tuesday to Were's home, where dozens of protesters manned burning barricades of tires and uprooted telephone posts.

Kibaki condemned the killing, appealed for calm and promised police would act swiftly to ensure the perpetrators were dealt with severely.

In the Mathare slum, armed Luo men at a roadblock dragged a Kikuyu man from his car and attacked him with machetes, volunteer aid worker Fospeter Ouma said. "They slashed him so much. I think he must have died," he said.

Angry supporters of Were in the slum area of Dandora, the murdered politician's constituency, set fire to homes and shops owned by Kikuyus and brandished axes and machetes.

Police fired tear gas, and later live bullets, to disperse them, and beat them with clubs. An AP Television cameraman saw a policeman pursue protesters down a mud road, shooting at them with a pistol.

In Western Kenya's Rift Valley, about 5,000 people set fire to homes and smashed shop windows in Naivasha, dragging away goods. Five police officers fired into the air but were unable to control the turmoil. Naivasha's police chief tried to calm the crowd but was pelted with stones and fled in his car.

A police helicopter and two military helicopters then flew over the crowd and officers began shooting, sending people running in panic. A reporter saw two bodies with bullet wounds, but it was unclear whether they were shot by officers in the air or on the ground.

Reporters also watched the helicopters swoop down, with officers firing on a mob of armed Kikuyus pinning down hundreds of Luos outside the Naivasha Country Club. Kikuyus, armed with machetes and clubs inset with nails, had prevented the Luos from escaping for two days.

On Tuesday, police began evacuating them, and police chief Grace Kakai said the helicopters helped.

"There were very big crowds gathering and we had to disperse them so we used helicopter patrols. They were not firing at the crowd. We were trying to scare them, not hurt them," she said. Some 300 Luos were evacuated, she said.

The Rift Valley has seen some of the worst of the postelection violence. At least 90 people were killed there over the weekend.

Kibaki and Odinga blame each other for the violence, which has driven 255,000 people from their homes. The two men have traded accusations of "ethnic cleansing." Human rights groups and officials charge the violence has become organized.

Prosecutor seeks appropriate charges against trader

2008-01-28T12:56:00.000-08:00

By JAMEY KEATEN, Associated Press Writer

A Paris prosecutor on Monday asked for preliminary charges of forgery, breach of trust and fraud against a low-level trader accused by Societe Generale bank of orchestrating the largest securities fraud ever by single person.

Prosecutor Jean-Claude Marin said Jerome Kerviel, 31, did not attempt to steal money from the bank or its customers, but was motivated by a desire to be "an exceptional trader" and that he sought performance bonuses.

Kerviel appears to have acted alone, Marin said.

"It's always a bit for money, I'm not sure that was his prime motive," said the prosecutor. "It functions a bit like a drug, it's an addiction ... there's a sort of spiral you can't get out of."

Kerviel told investigators, who just wrapped up 48 hours of questioning, that he expected a bonus of 300,000 euros ($441,150) for 2007.

Societe Generale said it lost 4.82 billion euros ($7.09 billion) after unwinding Kerviel's trades.

Kerviel was set to appear before a judge who will decide whether to proceed with preliminary charges.

Under French law, filing preliminary charges means the judge has determined there is strong evidence to suggest involvement in a crime and gives investigators time to ask for a trial.

The bank's offices were searched Friday and "masses of documents" including computer records were seized, Marin said.

CEO Daniel Bouton said Societe Generale, thought by some experts to be vulnerable to a takeover, has not been approached.

Bank shares fell nearly 4 percent to 70.94 euros ($104.32) Monday.

Meanwhile, questions about how the bank handled the fraud are mounting. A lawyer for a group of Societe Generale shareholders, Frederik Canoy, said a legal complaint had been filed Monday asking investigators to look into possible insider trading.

The complaint was filed after France's market watchdog said in a routine disclosure that a member of Societe Generale's board, Robert A. Day, sold 85.75 million euros ($126.1 million) worth of shares in the bank on Jan. 9 — two weeks before the fraud announcement and well before bank management says it knew about the problem. Day is an investment manager with U.S.-based Trust Company of the West, or TCW, who Forbes magazine says has a net worth is $1.6 billion.

Two foundations linked to Day, the Robert A. Day Foundation and the Kelly Day Foundation, also sold a total of 9.59 million euros ($14.1 million) worth of shares a day later, on Jan. 10, the market watchdog reported. Regulators have made no allegations of wrongdoing.

Telephone calls to both Day foundations and TCW were not immediately returned Monday.

Bouton rejected suggestions from Kerviel's lawyers that Societe Generale was using their client to hide big losses linked to the U.S. subprime mortgage crisis.

"How could you want to imagine that we would have been able to hide a hole by another hole? It's completely stupid," Bouton told Europe-1 radio. He called Kerviel a "remarkable concealer" who had managed to outwit the bank's risk control systems by toggling between real and fictitious positions.

"That's what created this gigantic fraud," he said.

Elisabeth Meyer, one of Kerviel's defense lawyers, said he was "bearing up to the shock."

She disputed Societe Generale claims that Kerviel had committed fraud, saying he was in the black with his trades as of Dec. 31.

"In my view, he was thrown to the lions before being able to explain himself," said Meyer. "It's a lynching."

Another lawyer, Christian Charriere-Bournazel, said on Europe-1 radio that Kerviel made a profit of 1.5 billion euros ($2.2 billion) before his bets went sour.

The prosecutor, however, said the trader only "virtually" made a profit for the bank.

Kerviel could face a maximum seven years imprisonment if convicted under the current charges, the prosecutor said.

A day after the bank sent out a five-page explanation of how the fraud unfolded, analysts still had many questions.

Societe Generale alleges that Kerviel used other people's computer access codes, falsified documents and used other methods to cover his tracks — helped by his previous experience in other offices at the bank that monitor traders. It says he bet some 50 billion euros ($73.53 billion) — more that the bank's market worth — on European markets.

Societe Generale Bank Uncovers $7 billion Fraud by Futures Trader

2008-01-24T10:07:00.000-08:00

By Emma Vandore, Associated Press Writer

French bank Societe Generale said Thursday it has uncovered a 4.9 billion euro ($7.14 billion) fraud -- one of history's biggest -- by a single futures trader whose scheme of fictitious transactions was discovered as stock markets began to stumble in recent days.

CEO Daniel Bouton said the trader's motivations were "irrational," netting the trader no personal financial gains. Still, the bank is seeking to have him prosecuted in court.

A person familiar with the case named the trader as Jerome Kerviel. Bank officials said the trader was a Frenchman in his 30s who probably acted alone. The person spoke on condition of anonymity because of the sensitivity of the case.

The bombshell destabilized a major bank already exposed to the subprime crisis. France's second-largest bank by market value said it would be forced to seek euro5.5 billion (US$8.02 billion) in new capital.

Societe Generale filed a complaint Thursday with a court in Nanterre, west of Paris, accusing the trader of fraudulent falsification of banking records, use of such records and computer fraud, the bank said in a statement.

The Paris prosecutor opened a preliminary investigation Thursday based on a complaint filed by a small shareholder concerned about losses incurred because of the fraud, a judicial official said. The Bank of France, the country's central bank, said it was immediately informed of the fraud and was investigating.

Societe Generale's shares, which have lost nearly half their value over the past six months, were suspended in Paris on Thursday morning, then dropped 5.5 percent to 74.77 euros ($108.97) when they resumed trading.

The bank said it detected the fraud -- comparable to a full year of its profits in stable times -- at its French markets division the weekend of Jan. 19-20.

Once uncovered, Bouton said the bank alerted market regulators and moved immediately to close the trader's positions, incurring heavy losses amid sharp declines on world markets.

"This is a bad time for banks and the industry in general. But detecting the fraud over the weekend was problematic because world stock markets on Monday and Tuesday fell hugely around the world. When the positions had to be unwound, the bank did that in a terrible market of falling equities," said Janine Dow, senior director at Fitch Ratings financial institution group in Paris

"In hindsight, it was this guy's superior knowledge of the control system of every aspect of trading at the bank that allowed him to build up fraudulent positions and hide them," she said.

The bank said the trader had misled investors in 2007 and 2008 through a "scheme of elaborate fictitious transactions." The trader, who was not named, used his knowledge of the group's security systems to conceal his fraudulent positions, the statement said.

The man admitted to the fraud, the bank said, and was being dismissed. Four or five of his supervisors were to leave the group. Bouton offered to resign but the board rejected that.

The trader had worked for the bank since 2000 and earned a salary and bonus of less than euro100,000 (US$145,700), executives said.

"I'm convinced he acted alone," said Jean-Pierre Mustier, chief executive of the bank's corporate and investment banking, who interviewed the trader when the fraud was uncovered.

The trader was responsible for basic futures hedging on European equity market indexes, the company said. That means he made bets on how the markets would perform at a future date.

Until last year, the trader had been betting that markets would fall, but then changed his position at the start of this year to bet they would rise, said Kinner Lakhani, an analyst at ABN Amro in London who specializes in Societe Generale shares, citing the bank's management.

He said there had been "daily rumors" this week that something was afoot at Societe Generale. "The market was sniffing something," he said.

Because the trader previously had worked in trading accounting offices, "he would have known how the risk management worked," Lakhani added. In a conference call with analysts on Thursday, bank officials "talked about this guy bypassing systems and setting up false counter-trades."

Societe Generale said the trader was involved in "plain vanilla" forms of hedging. Futures trading began with selling commodities like sugar or oil to be delivered at a future date, but has expanded enormously to many kinds of extremely complex financial instruments.

The fraud appeared to be the largest ever by a single trader. If confirmed, it would far outstrip the Nick Leeson trading scandal in 1995 that forced the collapse of British bank Barings. Leeson, the bank's Singapore general manager of futures trading, lost 860 million pounds -- then worth US$1.38 billion -- on Asian futures markets, wiping out the bank's cash reserves. The company had been in business for more than 230 years.

The fraud was not as big as the 1991 scandal that led to the demise of the Bank of Credit and Commerce International. Claims by depositors and creditors there exceeded US$10 billion at the time. International bank regulators seized BCCI, which had headquarters in Luxembourg, London and the Cayman Islands, acting on auditors' reports that described huge losses from illegal loans to corporate insiders and from trading transactions.

Axel Pierron, senior analyst at Celent, an international financial research and consulting firm, was stunned that 13 years after the Barings collapse, something similar has happened.

"The situation reveals that banks, despite the implementation of sophisticated risk management solutions, are still under the threat that an employee with a good understanding of the risk management processes can getting round them to hide his losses," he said.

At Societe Generale, the announcement came on the back of 2.05 billion euros ($2.99 billion) in write-downs linked to subprime-related difficulties and the crisis in financial markets.

The bank is now planning a capital hike in the "following weeks" by selling shares in a rights offer underwritten by JPMorgan Chase & Co. and Morgan Stanley.

The write-down and losses will lead the company to post a net profit of 600 million euros to 800 million euros ($874 million to $1.16 billion) for all of 2007, the Paris-based bank said. Full-year results will be announced Feb. 21. In 2006, net profit was euro5.2 billion.

Associated Press writers Matt Moore in Davos, Switzerland, Thomas Wagner in London and John Leicester in Paris contributed to this report.

Kenyan rivals meet for first time since elections

2008-01-24T06:48:00.000-08:00

By KATY POWNALL, Associated Press Writer

NAIROBI, Kenya - Kenya's president and its main opposition leader met Thursday for the first time since the disputed Dec. 27 presidential vote sparked nationwide violence that left hundreds dead.

President Mwai Kibaki and opposition leader Raila Odinga arrived at the president's office in downtown Nairobi for the meeting. They were accompanied by former U.N. Secretary-General Kofi Annan, who brokered their talks and is mediating.

Kibaki had insisted on direct talks with Odinga, who refused to meet without a mediator. Annan is leading a mediation mission of the African Union that began work Wednesday.

Some 700 people have been killed in violence that erupted after Kibaki was declared winner of the elections despite a deeply flawed vote tally.

International allies have urged Kibaki and Odinga to negotiate a power-sharing agreement that might create a new position of prime minister for Odinga.

Kibaki told Annan that he wants to resolve the political crisis, a government statement said.

"President Kibaki also informed Mr. Annan ... on steps his government was taking to open political dialogue and ensure national reconciliation and healing," the statement said.

In another encouraging sign, Uganda's President Yoweri Museveni won an agreement from both sides to set up a judicial commission to investigate vote rigging. Museveni met separately with Kibaki and Odinga on Wednesday.

On Wednesday, Annan persuaded Odinga to call off protests that had been planned for Thursday in defiance of a government ban. Scores of Odinga's supporters have been gunned down by riot police in earlier demonstrations.

New York-based Human Rights Watch, meanwhile, said Thursday it has evidence that opposition party leaders "actively fomented," organized and directed ethnic attacks in Kenya's western Rift Valley, where some of the worst violence has been perpetrated in the aftermath of the disputed election.

Human Rights Watch said more attacks are being planned on members of Kibaki's Kikuyu tribe. An opposition legislator from the region denied the charges.

How to overcome 7 common tax terrors

2008-01-17T13:40:00.000-08:00

Kay Bell

Admit it. You're afraid of your 1040. That's OK. A lot of us are. And our tax fears, sometimes irrational, sometimes warranted, cause us to do a lot of dumb things when it comes to our annual returns.

Some people put off filing, some don't file at all. But fear doesn't have to paralyze you. Here are seven common tax terrors, how real they are (or aren't) and how you can overcome them.

These fears paralyze many taxpayers, but Bankrate's solutions can help you move through them.

7 reasons taxpayers tremble

1. Afraid I can't do my taxes myself.
2. Afraid I'll overlook a tax break.
3. Afraid I'll make a mistake that will cost me money.
4. Afraid that my tax adviser is incompetent or a crook.
5. Afraid I'll get audited.
6. Afraid to e-file because my personal info could be lost or stolen.
7. Afraid to file because I can't pay.

1. Afraid I can't do my taxes myself
This fear, unfortunately, is too often justified. And it gets truer every year as federal lawmakers add provisions and pages year after year. The tax law publisher CCH Inc. notes that the 1913 tax code took up 400 pages in its "Standard Federal Tax Reporter." By 2007, CCH filled more than 67,000 pages of that document with tax law intricacies.

"The law is very complicated and filling out the returns is somewhat mind-boggling," says Robert Simon, partner at Eisner & Lubin in New York. "The media keeps telling everyone how difficult it is and people just get panicky. They sit down and start (the filing process) with all this in the back of their minds. I can understand why people would be afraid to do it."

Such fear, says Simon, is nothing to be embarrassed about. "If you ask congressmen who actually wrote the laws, many don't do their own returns," he says. "They're writing policy, not looking at it from an accounting point of view."

The way our tax system works also adds to this fear.

"Many people aren't good with numbers, then once a year they wind up trying to deal with numbers," says Simon. "Any other time you spend money, before you walk out you have someone there telling you what you owe. But when you're doing your taxes, you're doing it yourself. You're telling the government what you owe them."

The remedy: Don't be afraid to ask for help. You have lots of preparer options, from a personal accountant who can fill out your return and help you plan throughout the year to franchise operations that gear up between Jan. 1 and mid-April. If your tax situation is not overly complicated, computer software might be enough to help you file with a bit more confidence. Take a look at your tax needs, then find the tax assistance that best meets them.

2. Afraid I'll overlook a tax break
Even folks who are brave enough to tackle their taxes on their own often face this fear. Again, it's not an unreasonable one. And once again, those folks in Washington, D.C., feed this fear.

Take, for example, the alternative minimum tax, or AMT. This parallel tax system can be quite costly for millions of filers, but rather than make a permanent change to the law, for the last several years Congress has opted instead for a temporary "patch." Even worse, the 2007 law change was enacted so late, it will caused a lot of grief not just for us filers, but also for the Internal Revenue Service. The slow lawmaking process has forced the 2008 filing season to be delayed until mid-February for up to 13.5 million taxpayers.

The remedy: Accept that tax filing is going to take some homework. Before you start your return, check out the countless publications -- including Bankrate's Tax Guide, of course -- so you'll know exactly where this year's taxes might trip you up. Again, you also can turn to software or a tax pro for help in claiming all your possible tax breaks.

3. Afraid I'll make a mistake that will cost me money
This is a close relative of fear No. 2. But here, the fear is not of omission, but commission.

This includes things as simple as filing the wrong tax form. It happens. In trying to get through filing as quickly as possible, some folks opt for the easy, in this case, the 1040EZ, way out and end up cheating themselves.

Or they choose the incorrect filing status, such as single when they're eligible to file as the more tax-advantageous head of household. Those are just a couple of the many mistakes that filers make ever year.

The remedy: Slow down. No longer how long you wait to do your taxes, you still have time to do it right. Read the instructions. If you're using software, don't skip steps just to finish. Answer all your tax pro's questions. If he or she says to provide more information, then provide it. A little extra work and attention to detail could cut your tax bill or get you a bigger refund.

4. Afraid that my tax adviser is incompetent or a crook
You know you need help, but you're afraid that the person you turn to could be more of a hindrance. Unfortunately, sometimes this fear is well-founded.

The Government Accountability Office issued a report in April 2006 with the disturbing finding that in a limited study of commercial tax prep chains in major metropolitan areas, all the returns completed in those offices were wrong to some degree.

Then in April 2007, the IRS alleged that some Jackson Hewitt franchises filed bogus returns for clients, cheating the federal government out of $70 million. The agency obtained court orders to shut down 125 branch offices in Detroit, Atlanta, Chicago and Raleigh, N.C.

Even big name, high-dollar help sometimes produces unexpected tax costs. Remember KPMG? A few years ago that global accounting and consulting firm acknowledged that some of its tax shelters didn't meet IRS standards and agreed to pay the government millions to settle the inquiry. Last month, the law firm Jenkens & Gilchrist announced it was closing its offices across the U.S. in the wake of a nonprosecution agreement it reached with the IRS about tax shelters it offered clients.

By the way, the taxpayers who participated in those companies' questionable shelters ended up owing additional taxes and penalties.

The remedy: Everybody makes mistakes, even tax professionals. The key is to make sure you don't end up paying for your tax preparer's mistakes.

Start with the hiring process. Investigate several potential preparers and thoroughly check out each before you hand over your personal tax documents.

Once you're a client, don't take every recommendation at face value. Ask questions and make sure you understand the answers. Most of all, remember the adage "If it sounds too good to be true, it probably is." There are some tell-tale signs that a tax shelter is in fact a tax scheme that could cost you dearly.

5. Afraid I'll get audited
If fear No. 4 comes true, then this is definitely one to be scared of. Audit fears, however, tend to be much greater than actual audit realities. True, there are some red flags, such as excessive medical or charitable deductions, that might catch an IRS examiner's eye. But overall, the risk of audit is small -- about 1 percent of individual returns were audited in 2006.

So don't let fear of IRS questions keep you from filing. And definitely don't let it stop you from claiming legitimate tax breaks.

"If you're really doing stupid things on your tax return, expect to get audited. Deservedly so," says Enrolled Agent Eva Rosenberg, who is based in Southern California and the Internet's Tax Mama. "But if you're afraid to use a legitimate tax break because you're afraid you're going to be audited, stop it! Stand up for your rights. There's no reason to be afraid."

The remedy: Make sure you can show an IRS examiner why you filed as you did. This means keeping good records, especially if you're self-employed. People who work for themselves and file Schedule C with their returns tend to get scrutinized a bit more, so your business record keeping needs to be more precise.

6. Afraid to e-file because my personal info could be lost or stolen
Slightly more than half of us send in our returns electronically. But that leaves another 60 million, give or take a million, folks who still file the old-fashioned paper way. This fear is one of the contributors to that mind-set.

Yes, identity theft is a major issue. In fact, the IRS keeps careful track of e-mail phishing scams that falsely claim to be from the tax agency. And yes, hackers still manage to break into online financial data systems periodically.

The biggest problem the IRS has had in recent years, though, has been with such information left on laptop computers that were lost or stolen, not with someone compromising the government's online tax database. But that doesn't mean you should ignore Internet safety precautions.

The remedy: Any tax data transference requires two parties. Make sure the starting point of such a relay, your computer, is secure.

"You're one of the end points and the IRS server is the other," says Gary Morse, president of Razorpoint Security Technologies in New York. "Make sure that your personal machine is secure, that it doesn't have any viruses, Trojan horses or any other back-door access points that could be attacked."

This means installing a firewall and virus protection, either as software or a hardware barrier, and then updating it regularly.

Of course, says Morse, taxpayers still must trust the IRS to safely store our data, but at least e-filers can know they did their part in the security process.

As for data losses, almost every computer user knows the frustration of dealing with a crashed machine. Tim Margeson, general manager of CBL Data Recovery Technologies Inc., headquartered in Armonk, N.Y., points to an oft-repeated warning as the surest way to avoid this: Save and back up your files regularly. This is especially important for home PCs, even beyond tax season, because of what Margeson calls "the unique issues -- children and pets and food" -- that the machines face.

You don't need any fancy software to back up your data, says Margeson. "You can just copy the files the same way you copy other material, send it from 'my docs' to a CD or USB drive."

"There's no reason that a computer or data loss should cause filing problems," says Margeson. "The IRS doesn't really accept that as an excuse for a late or no return."

7. Afraid to file because I can't pay
The only thing scarier than filing taxes is what could happen if you don't file. The IRS penalty for not filing is actually worse than if you file but don't pay your tax bill in full.

If you owe tax and don't file on time, the late-filing penalty is usually 4.5 percent of the tax owed for each month, or part of a month, that your return is late. However, if you file on time but just can't pay your tax bill then, you'll generally face a late-payment penalty of only one-half of 1 percent of the tax owed for each month, or part of a month, that the tax remains unpaid.

The total nonfiling and nonpayment penalties could reach a cumulative 25 percent maximum penalty. But if you file your forms on time and then make arrangements to pay, you can avoid taking that hardest tax penalty hit.

The remedy: File! And file on time. If you can't afford to pay your full tax bill, send Uncle Sam at least a down payment. Even sending in an extension request with a nominal payment is better than not filing at all. Then worry about coming up with the cash.

"Never don't file," says Rosenberg. "There's no reason to put yourself in that position. File the return and establish a plan to deal with the consequences of not having the money."

You have payment options. Use a credit card to meet your tax debt, then pay it off as quickly as possible. Go with the card that has the lowest interest rate or a zero-percent rate if possible. The IRS also has payment plans. Though these add interest charges to your tax bill, at least you can be assured that you're meeting your filing and payment obligations.

Face your tax fears early
By now, you should be a little less anxious about that impending return. And by taking a few steps now, you should be able to completely overcome most of these fears by the time your next return is due.

Look at what caused your heart to race and your palms to sweat this filing season. With those fears fresh in your mind, map out a strategy to overcome them, starting now.

"Trying to pull things together at the end of year when you're not organized during the year is not a good idea," says Simon. "You need to plan throughout the year, not in April."

That way, when next tax season rolls around, fear won't be a factor.

Bhutto was killed by sunroof, not bomb or bullets, Pakistan says

2007-12-28T12:15:00.000-08:00

by Rana Jawad

Pakistan's interior ministry said Friday that Benazir Bhutto was killed after smashing her head on her car's sunroof while trying to duck, and that no bullet or shrapnel was found inside her.

The ministry also said it had intercepted a phone call from a top Al-Qaeda figure congratulating a militant for the attack on her Thursday, and said there was "irrefutable evidence" the group was trying to destabilise the country.

Bhutto's death after a suicide bomber blew himself up at her campaign rally has plunged this nuclear-armed Islamic nation into turmoil, but the ministry said she would have lived if only she had stayed inside her car.

"If she had not come out of the vehicle, she would have been unhurt, as all the other occupants of the vehicle did not receive any injuries," ministry spokesman Brigadier Javed Cheema said.

He said the post-mortem on the populist opposition leader, whose funeral earlier Friday was attended by hundreds of thousands of mourners, found her mortal wound came when she tried to duck after the bomber attacked.

The bomber also apparently fired three times at her but missed, Cheema said.

When she ducked, she hit the lever of the sunroof of the car that was to speed her away from a campaign rally as she was gearing up to contest parliamentary elections set for January 8.

"The lever struck near her right ear and fractured her skull," Cheema said. "There was no bullet or metal shrapnel found in the injury."

Cheema showed a brief video of the moments before the attack and the blast itself but it was unclear.

He said intelligence services had intercepted a call Friday from the man considered to be a top Al-Qaeda figure for Pakistan, Baitullah Mehsud, congratulating a militant after Bhutto's death.

He said there was "irrefutable evidence that Al-Qaeda, its networks and cohorts are trying to destabilise Pakistan".

"We have recorded his conversation in which he is congratulating a militant for the attack," Cheema said, adding that Mehsud was also behind the suicide attack on Bhutto's homecoming rally in October that killed 139 people.

"He is responsible for most of the attacks that have taken place in the country," the spokesman said, calling for national unity "to eliminate the proponents of death and destruction who are trying to destabilise Pakistan."

Pakistani authorities say Mehsud is based in the troubled tribal region of South Waziristan, where troops have been battling Islamist rebels since the fall of the Taliban in neighbouring Afghanistan in 2001.

Mehsud had until recently been described by officials as the top pro-Taliban militant commander in the region but is increasingly said to have links to bin Laden's Al-Qaeda group.

Making a Martyr of Bhutto

2007-12-27T12:48:00.000-08:00

By ARYN BAKER

Just days before parliamentary polls in Pakistan, leading Prime Ministerial contender and anti terrorism crusader Benazir Bhutto was shot dead during an election rally in the garrison city of Rawalpindi, near Islamabad. "She has been martyred," said party official Rehman Malik. The Associated Press, citing Malik, reported that Bhutto was shot in the neck and the chest before the gunman blew himself up. At least 20 bystanders were killed in the blast. Bhutto was rushed to a hospital But, at 6:16 p.m. Pakistan time, she was declared dead.

""How can somebody who can shoot her get so close to her with all the so-called security?" said a distraught Husain Haqqani, a former top aide to Bhutto, shortly after news of her death flashed around the world. Haqqani, who served as a spokesman and top aide to Bhutto for more than a decade, blamed Pakistani security, either through neglect or complicity, in her assassination. "This is the security establishment, which has always wanted her out," he said through tears.

For the past several months Pakistan has been plagued by a wave of violence that has seen hundreds of civilians killed in similar bombing attacks; and hundreds more military personnel, prompting President Pervez Musharraf to declare a state of emergency. On December 16th, Musharraf lifted the state of emergency, stating that the threat had been contained. The bombings, however, continued. Just hours before her assassination, Bhutto, 54, met with visiting Afghan President Hamid Karzai to discuss the threat of terrorism against both countries.

The U.S. has long supported a return to power by Bhutto, who was perceived to be a moderate willing to work with Washington on the war on terror. She was also seen as a democratic leader who would serve as a counter to the plummeting popularity of Musharraf, who took power in a 1999 military coup. It was thought that a power-sharing deal between the two, in which Musharraf stayed on as president while Bhutto lead as prime minister, would promote stability in this nuclear armed nation of 165 million. But from the day of her arrival in Pakistan after eight years in exile, Bhutto's return has been marred by violence.

On October 18th, a pair of bombs detonated in the midst a welcome home rally in Karachi for the former two-time prime minister, killing some 145 in a deliberate attempt on her life. The organization responsible for the carnage has not yet been identified, but Bhutto said she suspected al Qaeda and some unspecified members of Musharraf's government who did not want to see her return to power. Despite the clear threat to her life, Bhutto continued to campaign publicly with the kind of mass rallies that are the cornerstone of politicking in Pakistan. "I am not afraid," she told TIME last month, "I am ready to die for my country."

Haqqani, now a professor at Boston University, isn't sure what the latest bloodshed means for his country. "Will the Pakistani military realize that this is going to tear the fabric of the nation apart, and so really get serious about securing the country and about getting serious in dealing with the extremist jihadis?" he wondered. But he made clear he feels the best chance for such a policy has just evaporated. "She did show courage, and she was the only person who spoke out against terrorism," he said. "She was let down by those in Washington who think that sucking up to bad governments around the world is their best policy option."

Within hours of the assasination, protests and riots broke out in Pakistan's main cities. In Rawalpindi, vegetable vendor Naeem, 25, said Bhutto's murder would hurt Pakistan's poorest, who were among Bhutto's most loyal supporters. "People were hoping her government would help the lower classes and now she is gone," he said. Syeda Asmat Begum, 73, who lives in Pakistan's capital Islamabad, told TIME that "everywhere sadness prevails. We are in fear that even our leaders are not safe from the bombardment of suicide bombers and bullets."

That was a view felt around the country. In Lahore, where shops and restaurants closed and the streets emptied of people except for the center of town where Bhutto supporters gathered to vent their anger, Majid Iqbal, 26, an engineering student was trying to hitch a ride home because bus services had stopped. "People are very worried," says Iqbal, who called his family in his home village outside the city as soon as he heard the news. "If a leader of a great party is not secure then how can the Pakistani people be secure? At this time Pakistan's future is fragile."

Speaking on television outside the hospital where Bhutto died, the opposition leader Nawaz Sharif said, "I myself feel threatened... Are things in control now? Had things been in control, would this have happened?" Bhutto's rival said, "We both were struggling for the same cause, and we had signed the charter of democracy." On camera, he addressed Bhutto's supporters, "I assure you that I will fight your war from now." He said, "It is tragic not only for [her party] but also for my party."

Pakistan can ill afford to sacrifice the few moderate leaders it has left. Bhutto's death will plunge the upcoming elections into uncertainty and the country further into instability. At the news of her assassination, many of her loyalists rioted in the streets of Pakistan. There will be many tense days ahead for the Musharraf government as it deals with this political crisis. And that's good news for terrorism. With reporting by Khuda Yar Khan/Islamabad, Simon Robinson/Lahore and Mark Thompson/Washington

Holiday Tipping - Who to Tip & How Much

2007-12-20T08:59:00.000-08:00

A little holiday green can spread cheer for the rest of the year. Here’s a guide to tipping the right people the right amount.

By Liz Pulliam Weston

If you've made your holiday list and checked it twice, chances are you've still forgotten some folks: the service providers who are expecting holiday tips.

End-of-the-year gratuities can show these folks that you appreciate the work they do for you and thank them for helping your life run more smoothly. This extra cash may help foster loyalty and, in a few instances, prevent future problems (like a building superintendent who might become sulky).

If you want to get to the meat of whom you tip and how much, skip down a bit. The next section is for those of you still balking at the whole idea. I've learned a lot about holiday tipping since first writing a column about it a couple of years ago, including:

Some of you think I invented it. "Wow, what on earth are you doing??" one outraged reader wrote. "Get real and try to relate to the public, not just your own little rich community. I expect at least $20 to $50 please for giving you a much-needed service -- a wake-up call!!"

So I consulted etiquette expert Peter Post, who assured me that holiday tipping has been around a lot longer than I have and isn't an isolated phenomenon. The amounts and even who is tipped can vary from place to place, but holiday tipping is ingrained in American life.

"It's not a regional custom," said Post, author of "Essential Manners for Couples." "It's everywhere."

Many of you don't like it.

Like several others, one reader -- who called himself "Scrooge," no less -- opined against the whole idea of tipping, at holidays or otherwise.

"Classic one is a bartender expects a $1 tip on $6 bottle of beer," Scrooge wrote. "Why should he get a tip ... he didn't do anything special? He opened a fridge and pulled out a bottle of beer and opened it. Boy, he really worked hard for that one."

Yes, indeed, why shouldn't that bartender work for the pleasure of Scrooge's company? There's a head-scratcher.

But the anti-tipping crowd has good company. Judith Martin, author of "Miss Manners' Guide to Excruciatingly Correct Behavior, Freshly Updated" agrees that tipping in general is a "silly system" that "grew up haphazardly" so that some workers -- like the bartender, the waiter, the taxi driver -- expect tips while others performing similar functions -- psychoanalyst, airline attendant, bus driver -- get their compensation from their paychecks. She finds it puts too much power in the hands of not-always-fair clients.

That doesn't let you off the hook, though. The system's the system, Martin says; we tip because it's expected: "It would be Scrooge-like, not to mention wrong," she writes, "to deny these workers their expected income merely because one doesn't like the method by which this is provided."

Some of you want in on it.

I fielded a fleet of e-mails from readers who want some holiday generosity spread their way. Many mail carriers take offense at U.S. postal regulations that discourage tips, and one newspaper carrier thought the amount recommended by etiquette experts -- $10 to $30 -- was "an insult … (unless) the customer also tips during the course of the year."

Given that holiday tips are customarily given only to people who provide regular, repeated service, the most puzzling letter came from an appliance-repair person who wanted a customer-supplied bonus. Sir, if you're showing up regularly enough to be tipped, doesn't that say something rather negative about the quality of the service you provide?

But by far the biggest roadblock to holiday tipping is that:

Many of you think you can't afford it.

Post empathizes, and hastens to add that holiday tipping, and gift-giving in general, "isn't about going into debt." If your budget won't stretch, it won't stretch.

But that doesn't release you from your obligation. Post recommends that in situations where a holiday tip would be expected, the financially challenged compose a handwritten thank you note and include with it some kind of seasonal gesture, like a plate of holiday cookies. Superb service might prompt a praise-filled letter to the worker's supervisor.

Personally, I think there may be more room in people's budgets than they think. The average American consumer is expected to spend $90 on gifts for him- or herself this season, according to the National Retail Federation. A little self-restraint could help you express your appreciation for at least some of the people who help you during the year.

Who shouldn't expect a tip

Now that the debate portion of this column is finished, we can run through the shortlist of people you don't tip.

You'll be relieved to know that there are people who aren't expecting cash from you. That doesn't mean you can ignore them, though; it just means your gift shouldn't be green. These people include:

Teachers: Professionals in general shouldn't be tipped, and teachers typically include themselves in this category. Ask what classroom supplies they need, and supply them. Gifts of food or a well-deserved day at the spa (perhaps purchased jointly with other parents) can be thoughtful, as well.
Friends: Whatever the service they provided for you, a gift is a more appropriate thank-you than a check.
U.S. Postal Service employees: The Postal Service discourages tips, but your mail carrier is allowed to accept gifts worth less than $20.
Anyone who would be insulted: You'll have to feel your way on this one a bit, since some of the people you traditionally didn't tip -- a beauty salon owner, for example -- now often have no problem accepting your money.
If you offer the cash and it's returned to you promptly, you'll know you've found one of these elusive folks.
The ground rules for tipping
How much you give, Emily Post and other etiquette authorities tell us, can depend on a number of factors, such as:
- The quality of the service
- The frequency of the service
- How long you've used the service
- Regional custom, and of course
- Your budget
Use your own judgment, but be guided by the spirit of generosity. The better you take care of the people who care for you, the better off everybody will be.
Now that we've got that settled, let's move on to who, and how much.
The "who's" break down into four basic categories:
People who provide you service regularly but briefly
These folks typically get $10 to $30. The list here can include:

Newspaper deliverers
Parking or garage attendants
Trash collectors
Any regular delivery person (for food, laundry, overnight packages, whatever)
Several readers asked how they should handle holiday tipping when they get regular service from a company, but people actually providing the service change constantly. Post handles this by simply tipping whoever happens to show up on the day he's handing out the cash, and hoping that others do the same so that the holiday generosity gets spread around.
People you see less often but for longer periods
These are usually the ones who are working hard to tend you and yours. The holiday tip normally equals the cost of one visit, although you can reduce that to $20 or so if your patronage is sporadic.

Hairdresser or barber
Manicurist
Facialist
Personal trainer
Massage therapist
Regular after-hours baby-sitter (not your nanny or day care worker)
House cleaner (unless he or she is full time, then see below)
The lawn-care crew
Pool cleaner
Pet groomer
If you use a day-care center, ask the director about appropriate tips for the child's primary caregiver. The accepted amounts can range from $10 to $70, plus a small gift from the child.
Your employees
Anyone you employ more than a couple of days a week gets a bigger check, typically at least equal to one week's pay. Exceptional or long service might boost the amount to two weeks' pay or more. A small gift is often appropriate as well. This list includes:
- Nannies
- Full-time housekeepers
- Home-care attendants
- Caretakers
If you're not planning to tip your full-time employees, you need to ask yourself why. If you're genuinely not happy with their services, you should have long ago detailed your concerns and given them a chance to improve. Otherwise, withholding a holiday tip is sandbagging. You wouldn't like it if your boss surprised you with a negative evaluation out of the blue, so don't do it to others.
People who can be strategically tipped
All tips can have an element of strategy in them, but these gratuities can make a real difference in the quality of your life. Here the range varies enormously:

Building superintendent: Ask around your building. The going rate can vary from as little as $20 to $200 or more.
Doorman: Ditto. Usually the range is $10 to $100.
The bartender, wait staff or maitre d' at a place you frequent regularly: Try $20 to $50 and see if your typical table location doesn't improve.

Talk back: Are you tipping this holiday? How much?

World War II Hiroshima A-bomb Pilot Dies

2007-11-01T13:45:00.000-07:00

By JULIE CARR SMYTH, Associated Press Writer

Paul Tibbets, who piloted the B-29 bomber Enola Gay that dropped the atomic bomb on Hiroshima, died Thursday. He was 92 and insisted for six decades after the war that he had no regrets about the mission and slept just fine at night.

Tibbets died at his Columbus home. He suffered from a variety of health problems and had been in decline for two months.

Tibbets had requested no funeral and no headstone, fearing it would provide his detractors with a place to protest, said Gerry Newhouse, a longtime friend.

Tibbets' historic mission in the plane named for his mother marked the beginning of the end of World War II and eliminated the need for what military planners feared would have been an extraordinarily bloody invasion of Japan. It was the first use of a nuclear weapon in wartime.

The plane and its crew of 14 dropped the five-ton "Little Boy" bomb on the morning of Aug. 6, 1945. The blast killed 70,000 to 100,000 people and injured countless others.

Three days later, the United States dropped a second nuclear bomb on Nagasaki, Japan, killing an estimated 40,000 people. Tibbets did not fly in that mission. The Japanese surrendered a few days later, ending the war.

"I knew when I got the assignment it was going to be an emotional thing," Tibbets told The Columbus Dispatch for a story published on the 60th anniversary of the bombing. "We had feelings, but we had to put them in the background. We knew it was going to kill people right and left. But my one driving interest was to do the best job I could so that we could end the killing as quickly as possible."

Morris Jeppson, the officer who armed the bomb during the Hiroshima flight, said Tibbets was energetic, well-respected and "hard-nosed."

"Ending the war saved a lot of U.S. armed forces and Japanese civilians and military," Jeppson said. "History has shown there was no need to criticize him."

Tibbets, then a 30-year-old colonel, never expressed regret over his role. He said it was his patriotic duty and the right thing to do.

"I'm not proud that I killed 80,000 people, but I'm proud that I was able to start with nothing, plan it and have it work as perfectly as it did," he said in a 1975 interview.

"You've got to take stock and assess the situation at that time. We were at war. ... You use anything at your disposal."

He added: "I sleep clearly every night."

Tibbets took quiet pride in the job he had done, said journalist Bob Greene, who wrote the Tibbets biography, "Duty: A Father, His Son, and the Man Who Won the War."

"He said, 'What they needed was someone who could do this and not flinch — and that was me,'" Greene said.

Paul Warfield Tibbets Jr. was born Feb. 23, 1915, in Quincy, Ill., and spent most of his boyhood in Miami.

He was a student at the University of Cincinnati's medical school when he decided to withdraw in 1937 to enlist in the Army Air Corps.

After the war, Tibbets said in 2005, he was dogged by rumors claiming he was in prison or had committed suicide.

"They said I was crazy, said I was a drunkard, in and out of institutions," he said. "At the time, I was running the National Crisis Center at the Pentagon."

Tibbets retired from the Air Force as a brigadier general in 1966. He later moved to Columbus, where he ran an air taxi service until he retired in 1985.

The National Aviation Hall of Fame in Dayton plans a photographic tribute to Tibbets, who was inducted in 1996.

"There are few in the history of mankind that have been called to figuratively carry as much weight on their shoulders as Paul Tibbets," director Ron Kaplan said in a statement. "Even fewer were able to do so with a sense of honor and duty to their countrymen as did Paul."

Tibbets' role in the bombing brought him fame — and infamy — throughout his life.

In 1976, he was criticized for re-enacting the bombing during an appearance at a Harlingen, Texas, air show. As he flew a B-29 Superfortress over the show, a bomb set off on the runway below created a mushroom cloud.

He said the display "was not intended to insult anybody," but the Japanese were outraged. The U.S. government later issued a formal apology.

Tibbets again defended the bombing in 1995, when an outcry erupted over a planned 50th anniversary exhibit of the Enola Gay at the Smithsonian Institution.

The museum had planned to mount an exhibit that would have examined the context of the bombing, including the discussion within the Truman administration of whether to use the bomb, the rejection of a demonstration bombing and the selection of the target.

Veterans groups objected, saying the proposed display paid too much attention to Japan's suffering and too little to Japan's brutality during and before World War II, and that it underestimated the number of Americans who would have perished in an invasion.

They said the bombing of Japan was an unmitigated blessing for the United States and the exhibit should say so.

Tibbets denounced it as "a damn big insult."

The museum changed its plan and agreed to display the fuselage of the Enola Gay without commentary, context or analysis.

He told the Dispatch in 2005 that he wanted his ashes scattered over the English Channel, where he loved to fly during the war.

Newhouse confirmed that Tibbets wanted to be cremated, but he said relatives had not yet determined how he would be laid to rest.

Tibbets is survived by his wife, Andrea, and three sons — Paul, Gene and James — as well as a number of grandchildren and great-grandchildren. A grandson named after Tibbets followed his grandfather into the military as a B-2 bomber pilot currently stationed in Belgium.

Seven ways to spot a liar on the job

2007-10-24T06:52:00.000-07:00

By Ken Osborn

How many times has your business suffered because you trusted the wrong person? If you're like most people, you've been lied to thousands of times.

Deception hurts in many ways. There's the emotional stress from being betrayed, the loss of self-confidence and the increased suspicion or even paranoia. Not to mention the financial cost.

A deceptive supplier may promise that a shipment will arrive by your deadline, all the while knowing that delivery by the promised date is impossible. Trusting this supplier could cost your company thousands of dollars or more. Deceptions like this can be deadly to a growing business.

But you don't have to be a victim. Here are seven subtle cues that often mean a person isn't being completely honest with you.

1. Nose touch: We have erectile tissues in our noses, which engorge with blood when we lie. This causes a tingling or itching sensation that requires a nose touch to satisfy. The absence of a nose touch doesn't guarantee truth, but the presence of a nose touch often means deception. Of course, sometimes a person will touch his or her nose because of a non-deceptive cause, such as a cold. With some practice, you can quickly learn to distinguish a deceptive nose touch from something innocent.

2. Speech disturbances: When we lie, we force our brain to pretend that the lie is true, that the truth is a lie and simultaneously remember that the real truth is that each is the other. Are you confused? So is your brain when you lie. The process of deception taxes our cognitive ability to think efficiently. So when we lie, we pause longer and speak slower than normal and often experience speech disturbances that serve as gap fillers, such as "um," "er" and "ah." Train yourself to look for deception when you hear this kind of verbal cue.

3. Incongruent behavior: When our words and our body language don't agree, our communication is incongruent. Imagine that you ask a salesman if he can assure your delivery will be on time. If he explains how certain he is about it being on time while also shaking his head--as if non-verbally saying "no"--he is incongruent. When this sort of incongruence occurs, you would do well to believe the person's body over his words.

4. Neck rub: We rub our necks because of the stress we experience when we feel that an obstacle may be insurmountable. Let's say you're interviewing a potential employee for a key leadership position and the prospective employee verbally emphasizes his interest in the job. However he also begins to rub his neck when you explain the expected duties. This probably means he doesn't feel he'll be able to accomplish the duties. He might be wrong, but if we know anything about human psychology, it's that if someone believes that they can or can't do something, they're probably right.

5. Eye rub: An eye rub is an indicator of disbelief. Let's say you have an important computer keystroke sequence to teach a new employee. The employee begins to rub her eyes even while verbally affirming your statements. This probably means that she doesn't believe you or disagrees with your instruction. It would be wise to stop and ask a question to allow the employee to verbally object. Many subordinates feel uneasy about disagreeing with the boss, but their bodies don't hesitate. Perceiving a potential problem and dealing with it early can be the difference between a simple misunderstanding and a business disaster.

6. Upward inflections: We upwardly inflect our words when asking a question. You may have noticed that some salespeople will upwardly inflect certain statements of fact. This is a red flag that should alert you to potential deception. The salesman might say, "Your competitors have seen their profit margins increase by 30 percent by using our product." If you notice that he upwardly inflected the words, "30 percent," you should disregard this statistic and be suspicious of him altogether.

7. Stabbed hollows: In the study of graphology--or handwriting analysis--hollow letters represent honesty. Anything that disrupts a hollow letter could indicate deception. Let's pretend you enter your office to find a note from your top salesman on your desk. His note indicates that he had to go out of town to visit his sick mother and won't be able to go to the annual trade show. You notice that every "o" in his note has some sort of mark interjected into the hollow space of each letter. You would be right to be suspicious of the facts in the note and a phone call or meeting would likely expose some sort of deception.

With some practice, these new awareness tools will give you greater confidence in your perceptive ability and new peace of mind when deciding to trust others.

Dog-chewed Michael Vick cards sell for $7,400 on eBay

2007-08-30T07:03:00.000-07:00

By BRIAN CHARLTON, Associated Press Writer

The woman who paid $7,400 on eBay for 22 Michael Vick football cards, chewed up and slobbered on by two Missouri dogs, acknowledges she hadn't heard of the star football player before he was indicted for dogfighting.

But Laura Norton-Dye, 40, of Cape Girardeau, wanted to send the message that local animal shelters need help -- and she challenged Vick to donate money himself.

Norton-Dye, who outbid 30 others, lives in the town where the auction originated and has requested the money be donated to the Humane Society of Southeast Missouri and to Safe Harbor, a local animal sanctuary.

Norton-Dye, who has incurable gastrointestinal carcinoid cancer, said she has a big heart for animals.

"I really think this was the right thing to do," said Norton, a former teacher. "This is one way I thought I could make a difference."

The success of the auction created a craze of more than 25 other postings this week offering torn-up cards featuring the disgraced NFL superstar, most also promising to donate the money to local animal shelters.

But so far, the original post from Rochelle Steffen, of Cape Girardeau, has been the only auction to attract droves of bidders.

Steffen gave Monte, her 6-year-old Weimaraner, and Roxie, her Great Dane puppy, every Vick card she owned to destroy. The cards, worth $1 to $10 apiece, were crumpled, crimped, chewed, torn and generally in a sorry state. Some even had corners missing.

"When I started this I only expected to get $100 for a local shelter," Steffen told The Associated Press on Wednesday. "But it's received so much attention. It's for such a good cause that jumps every boundary."

Steffen, 31, said she has been overwhelmed with positive responses, including from people who say her auction inspired them to donate money to animal shelters.

The Humane Society of the United States has seen a large spike in donations since Vick was indicted on federal dogfighting charges last month, said Ann Chynoweth, director of the society's Animal Cruelty and Fighting Campaign.

"Americans love football, but they love dogs even more," she said.

The backlash against Vick seemed to grow this week as he apologized after entering a guilty plea to a federal dogfighting charge in Richmond, Va. Sentencing is scheduled for Dec. 10.

The gnawed cards were by far the most expensive Vick items on eBay, with well-preserved rookie cards, autographed jerseys and other collectibles selling for far less.

"The thought of these cards selling for $7,000 underscores how much this situation with Michael Vick has really captivated Americans," said Tracy Hackler, associated publisher of Beckett Media, the Dallas-based publisher of several card collecting magazines.

Other ads on eBay offered cards chomped on by a pit bull puppy from Indianapolis named Diesel and a Cadillac, Mich., dog named Freak, among others. Another ad offered a jersey torn up by a yellow lab named Trixie from Harker Heights, Texas.

Another posting offered the services of a Destin, Fla., dog named Peggy Sue, saying she will damage mint-condition Vick cards. The ad said proceeds would go to the Canine Rescue and Rehabilitation. The high bid was $188.27 Wednesday afternoon.

While Vick was once considered by collectors as having some of the most-sought after memorabilia, the value of his autographs, cards and other collectibles have dramatically dipped, Hackler said. Even his 2001 SP Authentic rookie card, once valued at more than $1,000, is now being traded at $285 to $400, he said.

The Atlanta Humane Society says some former Vick fans have sent jerseys, often accompanied by financial contributions. Other branches of the Humane Society have said they will take donated Vick items to resell on eBay.

Profitable Jobs You Can Do From Home

2007-08-20T12:23:00.000-07:00

Ysolt Usigan, ClassesUSA

In today's world of high connectivity, anyone can do virtually anything from home. In fact, the International Telework Association and Council reports that approximately 23 million people work at home at least part time, a number expected to increase as workplace technology becomes more and more seamless. If clocking in from your kitchen is the right choice for you, read on for telecommuting tips from successful home-office professionals.

Computer Software Production

Scott Testa knew that the competition for landing a convenient telecommuting job was tough, so he used education to distinguish himself.

After earning a Ph.D. in education through Drexel University's online program, Testa founded numerous software companies. He currently works from home as the chief operating officer of Mindbridge Software.

His biggest driver of success? The mindset that working from home must reflect the same initiative and motivation you would have if you were physically in the office. "Dress for work and keep the same hours you typically would in the office," he advises.

Marketing and Public Relations

Shannon Cherry, a marketing and public relations firm owner who does much of her work via e-mail, is accustomed to using the Internet for advancement -- she even earned her master's degree in communications administration from the University of Memphis online.

If you wish to secure an in-demand telecommuting position, Cherry stresses the power of effective communication. "It's important that you learn to brand yourself early on," she asserts. "That means you need to market your uniqueness."

Along with her master's degree, what distinguishes Cherry is her trustworthiness and reliability. "I suggest taking that a step further," she adds. "Market yourself by using stories or testimonials to clients or prospective employers. And network like crazy."

Financial Consulting and Sales

Anthony Shafer, a commercial finance consultant for LoanFight, Inc., usually works in his home office from 10 a.m. to 10 p.m., or even as late as 1 a.m. "With time differences, I have to get a hold of people at all hours of the day," he explains.

Shafer admits that TV can be a distraction, although it's actually a requirement for his job. "I keep CNBC on so I can follow the financial world," he says. Understanding the line between work and play is key to staying focused.

Also important are desire and devotion, says Shafer, who is currently working on his business information systems degree from DeVry Online. "You've got to be a salesman, and do it with a serious desire to please people," he says.

Graphic Design

Most graphic design work available to telecommuters is on a freelance basis, which means missing out on benefits like health insurance, steady salary, and job stability.

Jill Sabato, a recent graduate of the School of Visual Arts, tried freelance design projects when she was in between jobs. "When you've got bills to pay, it's not a good idea to count on the money you'll make from a project," she says. "Who knows when you'll get another assignment?"

If you do find a company with which you're comfortable, be sure to give your best. "If you freelance for a company that knows your work and is happy with it, stick with them," says Sabato. "Keep in contact so they know they can always count on you for projects."

Billionaire Warren Buffett weighing choices for '08 endorsement

2007-07-13T15:27:00.000-07:00

By JOSH FUNK, AP Business Writer

Someday soon, Warren Buffett may have to apply his legendary stock-picking skills to the candidates clamoring for his endorsement in the 2008 presidential race.

For now, the plainspoken Nebraska billionaire appears to be enjoying his role as an unaffiliated kingmaker, raising money for Democrat Hillary Rodham Clinton while promising to do the same for her chief rival, Barack Obama. He's even heaped praise on New York Mayor Michael Bloomberg, who recently left the Republican Party and might join the race as an independent.

"As the markets often would follow Buffett's investments, I think that same mentality would follow his political activities, too," said Joseph Marbach, a Seton Hall University political science professor.

An outspoken critic of economic inequality in the U.S., Buffett is using his newfound political prominence as a platform to speak out on the obligation of the privileged to help the poor.

The 76-year-old Buffett is one of the world's wealthiest men, ranked third by Forbes Magazine behind Microsoft founder Bill Gates and Mexican telecom magnate Carlos Slim.

In 1956, armed with $105,000 raised from a handful of friends and relatives, Buffett founded the investment company now known as Berkshire Hathaway. Today, the company has assets of nearly $262 billion and owns more than 60 subsidiary businesses including insurance, clothing, candy and furniture.

In 2003, Buffett served as a top economic adviser to Republican Arnold Schwarzenegger's first campaign for California governor, but he advised Democrat John Kerry's presidential campaign a year later. He's also been active in several Nebraska contests.

When it comes to investing dollars in candidates, Buffett clearly favors Democrats. He's donated $65,600 to federal candidates since 1992, almost all of it to Democrats with a handful of contributions to moderate Republicans like Connecticut Rep. Chris Shays, according to Federal Election Commission records available through the nonpartisan Web site opensecrets.org. He gave $4,000 to Clinton's Senate campaign in 2000, and $5,000 to Obama's political action committee, Hope Fund, in 2005.

Buffett's political involvement reached a new level this year, as he began more forcefully criticizing the Bush administration's foreign and tax policies.

Buffett helped Clinton pull in at least $1 million at a New York fundraiser last month, and has said he would do the same for Obama later this year. But in a recent Time magazine interview, he also said he dreamed of a Bloomberg-Schwarzenegger presidential ticket.

"That would be one hell of a team, wouldn't it?" he said.

Buffett's political views have at times been controversial in the business world, particularly on the subject of taxes. He's made no secret of his belief that rich people have a duty to pay more taxes and that President Bush and Republicans in Congress have erred by pushing tax cuts for the wealthy.

"If you're in the luckiest 1 percent of humanity, you owe it to the rest of humanity to think about the other 99 percent," Buffett told attendees at the Clinton fundraiser.

On Friday, Clinton's campaign announced her support for cracking down on a tax loophole known as "carried interest" that allows some Wall Street investment managers to pay lower tax rates, citing concerns raised by "many finance and tax experts, including billionaire financier Warren Buffett."

In 2003, Schwarzenegger had to distance himself from Buffett after the billionaire was quoted criticizing Proposition 13, California's landmark initiative that keeps property taxes artificially low. The measure is revered by Republicans and many homeowners in the state, but it has also been blamed for badly underfunding public schools.

"I told Warren if he mentions Prop. 13 one more time he has to do 500 sit-ups," Schwarzenegger said at the time.

Dubbed the "Oracle of Omaha" by his many admirers, Buffett is revered in the business world. His annual investment lecture draws at least 25,000 people to Omaha.

Buffett grew up a Republican like his father, Howard, who represented Nebraska's 2nd District in Congress from 1943-49 and 1951-53. The younger Buffett switched parties during the early 1960s, saying his views on civil rights aligned more with Democrats.

Andy Kilpatrick, the stockbroker who has chronicled Buffett's life in "Of Permanent Value: the Warren Buffett Story," said Buffett's political activity seems to be attracting more attention now than it has in the past.

Kilpatrick attributed the new interest in part to Buffett's growing visibility as a philanthropist, particularly his plan to donate most of his fortune to the Bill & Melinda Gates Foundation.

While carefully withholding a formal endorsement, Buffett has said he'd be happy with either Clinton or Obama as president. Federal Election Commission records show that Buffett donated the maximum $4,600 to Clinton's campaign in January, while no donations to Obama have yet been reported.

University of Nebraska at Omaha political scientist Loree Bykerk said Buffett's reluctance to officially back either Clinton or Obama suggests he still believes the race for the Democratic nomination is wide open. When he does decide, Bykerk said, the endorsement will carry that much more weight.

"Insofar as he's seen as to be an excellent decision-maker, very competent, down to earth, and with Middle American values, there's almost no downside to that endorsement," she said. "He's a name almost anyone would be happy to be associated with."

How to get your financial records in order

2007-07-10T13:58:00.000-07:00

By Tom Herman

How do you know whether you need to spend more time getting your financial affairs organized?

Answer: When a professional organizer sends you her latest book on the topic -- and you lose it before you get a chance to open it.

That's what happened to me recently, much to the amusement of several colleagues who sit near the mountains of books, papers, magazines, notepads, umbrellas, coffee cups and tax publications lying around my work space and spilling out of more than a dozen file cabinet drawers. One friend politely informed me I don't really need an expert organizer. I need an archaeologist.

But it's never too late to get started, and even the most paper-addicted pack rats can benefit from the growing number of books, pamphlets, software programs and getting-organized kits that focus on personal finance. Among the most popular software programs are Intuit Inc.'s Quicken and Microsoft Corp.'s Microsoft Money. They can help you pay bills, figure out where you're spending your money and create a budget. Millions of people have turned to these and other online products offered by banks and other financial institutions to pay bills and manage finances.

Getting your finances neatly organized is critically important if you care about your family and other heirs. Missing documents, records or stock and bond certificates can be hazardous to your family's wealth -- in addition to being frustrating and time-consuming experiences.

Some of the best organizing tools are free. For example, Merrill Lynch & Co., the nation's largest securities firm, offers a handy document you can download and use to jot down key personal contacts, location of important papers and other items. More free planning tools and organizers can be found on the Web site of Ronald Rogé, a financial planner.

Here are some thoughts from lawyers, accountants and organizing experts on how to be better organized, including what documents to keep, where to keep them and for how long.

Getting Started

Start by compiling a list of key people to call, including relatives, physicians and lawyers, in case of emergency. I carry around such a list in my wallet. I started doing this after a family friend was hit by a car on Park Avenue in New York City many years ago. She had no personal identification papers on her. Fortunately, a woman who had witnessed the accident raced to her side and asked her, just before she passed out, if there was someone who should be contacted. Our friend gave her the name and phone number of one of her sons, who raced to the scene. Our friend survived and told me that her saga underscores the importance of having a "loved-ones" list with you whenever possible.

Consider photocopying all your credit cards and other important items you carry in your wallet. If you lose your wallet or it's stolen, you'll know exactly what's missing and how to contact the credit-card companies. Store this list in a safe place at home with other details, including the location of any unused gift certificates you have received, as well as your point totals for frequent-flier or other similar programs.

Make sure to tell your family and advisers where you keep important documents, such as your will, health-care proxy, living will, insurance policies, household inventory, deeds to property and important tax records. Be sure to include the location of your bank safe-deposit box -- and where you have stored the key.

It's not enough just to compile these lists. Make sure to update them regularly, says Stephanie Winston, a professional organizer based in New York City and author of several books on the subject (including "Getting Organized," the book I somehow managed to lose).

Beware of mindless clutter, Ms. Winston says. She recommends a paper-handling system called "TRAF," which means toss, refer, act or file. While it may feel good to save everything, that could backfire if you can't find what you need in a hurry.

Pay attention to security. Store your information in a safe place. All your careful organizing plans can easily backfire if you allow your information to fall into the wrong hands. If you use a Palm Pilot, as I do, use passwords to protect all the information you've stored there. If you store your list on your computer, be sure it's password-protected. Also be sure to print out copies regularly and give them to a trusted relative or adviser.

Wills and Other Documents

Lawyers constantly marvel at how many highly intelligent people don't have a will -- and at how many people who do have wills haven't updated them for decades. Granted, nobody likes thinking about this subject, and lawyers say clients often are superstitious. Those clients fear that if they draw up a will or update it, they're sure to die on the spot.

But remember: When someone dies without a will -- or without an up-to-date will -- that can lead to lengthy family feuds, even over seemingly insignificant details.

Another reason many people don't have a will is they're uncomfortable discussing such delicate subjects with children and other family members. Get over it. Failing to have this conversation is an invitation to trouble.

Consider giving the original copy of your will to your lawyer or some other trusted adviser, along with the location of key documents. Make sure to tell your heirs what you've done. Don't put the only signed copy in your safe-deposit box; your heirs will need to get the will quickly.

Take the time to make sure you have a well-written power of attorney, and pick someone you trust completely.

Check with your lawyer to make sure that any power-of-attorney form you sign does precisely what you want it to do. For example, if you want the person holding your power-of-attorney to be able to make gifts of money or other property on your behalf, say so in writing. While state laws may vary, be as precise as possible on this subject.

And remember that a power of attorney isn't just for the elderly. Sudden illness -- or accidents -- can strike at any age, making it important that someone be authorized to manage your finances.

If you move to another state, make sure to get a thorough financial check-up from a pro just to make sure you don't need to make important revisions.

Above all, act now while you're healthy -- and be careful whom you select to help you. One of the classic mistakes is to wait until you get sick to start thinking about a power of attorney and other tough topics.

Updating Your Finances

Buy-and-hold may be a commonly recommended strategy on Wall Street -- but not when organizing your finances. With all the swings in financial markets these days, it's important to update your finances regularly.

One area many people overlook: U.S. savings bonds. They sound simple, but they bear close watching. For example, many investors own savings bonds that stopped paying interest years ago. The Treasury estimates that, as of April 30, savings bonds worth around $15.1 billion had stopped earning interest and were still in the hands of investors.

To learn about the status of your bonds, go to a Treasury Department Web site. Click on the section "Individual/Personal," and then click on: "Find out if your Treasury securities have matured." There, you'll find tables that will help you figure out whether your bonds are still earning interest, or for how long you can expect them to earn interest.

If you own any bonds that no longer are earning interest, be sure to cash them in or exchange them as soon as possible. Also check to see whether you or other family members own any stock certificates representing shares in companies that have gone bust. Even though those certificates may be worthless, they may help cut your taxes.

If you don't claim a loss for a worthless security on your original return for the year in which it actually became worthless, "you can file a claim for a credit or refund due to the loss," the IRS says. Use Form 1040X to "amend" your return for the year in which the security became worthless. But keep in mind that you must file it "within seven years from the date your original return for that year had to be filed, or two years from the date you paid the tax, whichever is later," the IRS says.

Here's another idea: If you have stock certificates for Enron or other well-known corporate disasters, consider trying to sell them to collectors through an online auction.

Tax Records

Most people should keep their federal income-tax returns for at least three years. But accountants and lawyers often recommend that clients keep returns for at least six years. That's because the IRS can go back that far if you didn't report taxable income you should have reported and it's more than 25% of the income shown on your return. Check to see if your state tax department has different rules.

There's no time limit if you file a return that is false or fraudulent, or if you don't bother filing a return at all. In that case, "an action can generally be brought at any time," the IRS says.

Some supporting documents need to be stored for much longer periods. For example, keep detailed records of how much you paid for your stocks, bonds, mutual-fund shares and other investments you haven't yet sold. When you sell them, you will need those records to establish what's known as your "cost basis." Also be sure to keep records of what you paid for your home and the cost of any improvements.

Before throwing away old tax returns, check to make sure the Social Security Administration has accurate records of how much you've earned each year.

If you get a Form W-2 from your employer, keep Copy C until you begin receiving Social Security benefits, the IRS advises. "This will help protect your benefits in case there is a question about your work record or earnings in a particular year," the IRS says in Publication 17.

When you do pitch old returns, make sure to shred them carefully so that they don't fall into the wrong hands.

Classic Blunders

Here are some things to watch out for when organizing your life

1. Neglecting to write a will. Not telling heirs the location of your financial accounts, safe-deposit box and key, and other important items.

2. Throwing away tax returns after a year or two. Save them at least three years -- and preferably six or seven.

3. Saving too much paper. If you do, you may be unable to find what's important when you need it.

4. Storing the only signed copy of your will in your safe-deposit box, instead of giving a copy to your lawyer or other trusted adviser.

5. Neglecting to carry an emergency list of loved ones, doctors and advisers in your wallet.

Source: WSJ reporting

Miscellaneous Tips

1. Direct Deposit. Whenever possible, have your paycheck, dividends, interest, income-tax refund and other income deposited directly into your account, rather than having checks sent to you in the mail. Ms. Winston says a client whom she was helping to get organized found a $13,000 check that hadn't been cashed. Fortunately, the client was able to get paid.

2. Paper certificates. If you still have stock or bond certificates lying around, consider turning them over to your stock broker, or the transfer agent, and having them transformed into electronic digits. That way, you don't have to worry about losing the certificates.

3. Filing taxes online. Filing electronically usually means speedier refunds and greater accuracy. IRS workers, after all, don't have to type your information into their systems. More than half of all returns filed to the IRS each year now are filed electronically.

4. Three key points: Update regularly. Back up your records regularly. And print several copies.

Al Gore's son arrested in California on drug suspicion

2007-07-04T13:38:00.000-07:00

Associated Press

Al Gore's son was arrested early Wednesday on suspicion of possessing marijuana and prescription drugs after deputies pulled him over for speeding, authorities said.

Al Gore III, 24, was driving a blue Toyota Prius about 100 mph on the San Diego Freeway when he was pulled over at about 2:15 a.m., Sheriff's Department spokesman Jim Amormino said.

The deputies said they smelled marijuana and searched the car, Amormino said. They found less than an ounce of marijuana along with Xanax, Valium, Vicodin and Adderall, which is used for attention deficit disorder, he said.

"He does not have a prescription for any of those drugs," Amormino said.

Gore was being held in the men's central jail in Santa Ana on $20,000 bail.

Kalee Kreider, a spokeswoman for his parents, did not immediately return phone messages to The Associated Press on Wednesday.

The son of the former vice president and Democratic presidential nominee also was pulled over and arrested for pot possession in December 2003, in Bethesda, Md., while he was a student at Harvard University.

He completed substance abuse counseling as part of a pretrial diversion program to settle those charges.

The youngest of Al and Tipper Gore's four children and their only son, Gore lives in Los Angeles and is an associate publisher of GOOD, a magazine about philanthropy aimed at young people.

Dry cleaner wins missing pants case

2007-06-25T10:09:00.000-07:00

"Pants not worth $54 million" - Judge

By LUBNA TAKRURI, Associated Press Writer

A judge ruled Monday in favor of a dry cleaner that was sued for $54 million over a missing pair of pants.

The owners of Custom Cleaners did not violate the city's consumer protection law by failing to live up to Roy L. Pearson's expectations of the "Satisfaction Guaranteed" sign once displayed in the store window, District of Columbia Superior Court Judge Judith Bartnoff ruled.

"A reasonable consumer would not interpret 'Satisfaction Guaranteed' to mean that a merchant is required to satisfy a customer's unreasonable demands" or to agree to demands that the merchant would have reasonable grounds for disputing, the judge wrote.

Bartnoff ordered Pearson to pay the court costs of defendants Soo Chung, Jin Nam Chung and Ki Y. Chung.

Pearson, an administrative law judge, originally sought $67 million from the Chungs, claiming they lost a pair of trousers from a blue and maroon suit, then tried to give him a pair a pair of charcoal gray pants that he said were not his. He arrived at the amount by adding up years of alleged law violations and almost $2 million in common law fraud claims.

Bartnoff wrote, however, that Pearson failed to prove that the pants the dry cleaner tried to return were not the pants he taken in for alterations.

Pearson later dropped demands for damages related to the pants and focused his claims on signs in the shop, which have since been removed.

The court costs amount to just over $1,000 for photocopying, filing and similar expenses, according to the Chungs' attorney. A motion to recover the Chungs' tens of thousands of dollars in attorney fees will be considered later.

Chris Manning, the Chungs' attorney, praised the ruling, which followed a two-day trial earlier this month.

"Judge Bartnoff has spoken loudly in suggesting that, while consumers should be protected, abusive lawsuits like this will not be tolerated," Manning said in a statement. "Judge Bartnoff has chosen common sense and reasonableness over irrationality and unbridled venom."

Pearson did not immediately respond to a call and an e-mail seeking comment.

Surprising Jobs With Six-Figure Pay

2007-06-22T14:39:00.000-07:00

By Steve McGookin

It's always been true that if you want to earn more money, you should think about going back to school.

But how many people realize that so many teaching posts could carry six-figure salaries?

According to the latest statistics from the U.S. Department of Labor showing average salaries for a range of occupations, six categories of teachers are included in the rankings showing jobs where the average of the top earners (the 90th percentile) is in excess of $100,000 annually.

They range from math teachers to those who impart knowledge about home economics. In math, for example, the official Labor Department definition of jobs done by those in that teaching category is "teach courses and/or pursue academic research pertaining to mathematical concepts, statistics and actuarial science and to the application of mathematics in solving specific problems and situations." So each teaching group specifically includes university and college lecturers at the postsecondary level, rather than high school teachers.

The data also show, of course, that the true average wage for all the teachers included in the data set is between $55,000 and $65,000 a year. But the ranking measure--the average of the higher-earning individuals in each category--puts teachers of certain subjects into the six-figure range.

In order of their average salaries for top earners, the subjects most in demand are computer science, sociology, psychology, mathematics, history, languages and home economics. In terms of numbers as defined, there are 44,570 math teachers and 36,630 computer science teachers, but just 4,330 home economics teachers.

Some of the occupations on the list probably won't seem that much of a surprise. For example, commercial pilots come at the upper end of this particular ranking, with a high-end average of just over $115,000, roughly the same as insurance sales agents. Those are the only two of the listed categories to exceed that average figure.

Market research analysts (those who "research market conditions to determine potential sales of a product or service [and] may gather information on competitors, prices, sales, and methods of marketing and distribution") come next, followed closely by real estate agents.

While commission-based jobs are obviously subject to greater fluctuations in income levels than those that have a graded salary structure, it is certainly interesting--given the often cyclical nature of the home sales market--that loan officers (in addition to real estate sales agents) are highly placed. A loan officer's job is to "evaluate, authorize or recommend approval of commercial, real estate or credit loans [and] advise borrowers. [The category] includes mortgage loan officers and agents, collection analysts, loan servicing officers and loan underwriters."

In terms of the connection between commission and income, also in the ranking--albeit lower down the scale, with a high-end average of $101,030 is the general category of "sales representatives" (definition: "sell goods, for wholesalers or manufacturers, to businesses or groups of individuals"). Sales representatives also make up the biggest single category by number, with 1,488,990 so defined by the Labor Department.

Coming in at the bottom end of the ranking is the category that includes the 3,330 employees defined as "farm, ranch and other agricultural managers." The Labor Department defines them as employees who "manage farms, ranches, aquacultural operations, greenhouses, nurseries, timber tracts, cotton gins, packing houses or other agricultural establishments for employers." Their high-end average is $100,050, just less than double the true average for all employees in that category.

New age town issues its own currency

2007-06-20T14:19:00.000-07:00

By Scott Malone

A walk down Main Street in this New England town calls to mind the pictures of Norman Rockwell, who lived nearby and chronicled small-town American life in the mid-20th Century.

So it is fitting that the artist's face adorns the 50 BerkShares note, one of five denominations in a currency adopted by towns in western Massachusetts to support locally owned businesses over national chains.

"I just love the feel of using a local currency," said Trice Atchison, 43, a teacher who used BerkShares to buy a snack at a cafe in Great Barrington, a town of about 7,400 people. "It keeps the profit within the community."

There are about 844,000 BerkShares in circulation, worth $759,600 at the fixed exchange rate of 1 BerkShare to 90 U.S. cents, according to program organizers. The paper scrip is available in denominations of one, five, 10, 20 and 50.

In their 10 months of circulation, they've become a regular feature of the local economy. Businesses that accept BerkShares treat them interchangeably with dollars: a $1 cup of coffee sells for 1 BerkShare, a 10 percent discount for people paying in BerkShares.

Named for the local Berkshire Hills, BerkShares are accepted in about 280 cafes, coffee shops, grocery stores and other businesses in Great Barrington and neighboring towns, including Stockbridge, the town where Rockwell lived for a quarter century.

"BerkShares are cash, and so people have transferred their cash habits to BerkShares," said Susan Witt, executive director of the E.F. Schumacher Society, a nonprofit group that set up the program. "They might have 50 in their pocket, but not 150. They're buying their lunch, their coffee, a small birthday present."

Great Barrington attracts weekend residents and tourists from the New York area who help to support its wealth of organic farms, yoga studios, cafes and businesses like Allow Yourself to Be, which offers services ranging from massage to "chakra balancing" and Infinite Quest, which sells "past life regression therapy."

LOCAL PRIDE

The BerkShares program is one of about a dozen such efforts in the nation. Local groups in California, Kansas, Michigan, New York, Oregon, Pennsylvania, Vermont and Wisconsin run similar ones. One of the oldest is Ithaca Hours, which went into circulation in 1991 in Ithaca, New York.

About $120,000 of that currency circulates in the rural town. Unlike BerkShares, Ithaca Hours cannot officially be freely converted to dollars, though some businesses buy them.

Stephen Burkle, president of the Ithaca Hours program, said the notes are a badge of local pride.

"At the beginning it was very hard to get small businesses to get on board with it," said Burkle, who also owns a music store in Ithaca. "When Ithaca Hours first started, there wasn't a Home Depot in town, there wasn't a Borders, there wasn't a Starbucks. Now that there are, it's a mechanism for small businesses to compete with national chains."

U.S. law prevents states from issuing their own currency but allows private groups to print paper scrip, though not coins, said Lewis Solomon, a professor of law at George Washington University, who studies local currencies.

"As long as you don't turn out quarters and you don't turn out something that looks like the U.S. dollar, it's legal," Solomon said.

FULL CIRCLE

The BerkShares experiment comes as the dollar is losing some of its status on international markets, with governments shifting some reserves into euros, the pound and other investments as the U.S. currency has slid in value.

But the dollar is still the currency that businesses in Great Barrington need to pay most of their bills.

"The promise of this program is for it to be a completed circle," said Matt Rubiner, owner of Rubiner's cheese shop and Rubi's cafe. Some local farmers who supply him accept BerkShares, but he pays most of his bills in dollars.

"The circle isn't quite completed yet in most cases, and someone has to take the hit," Rubiner said, referring to the 10 percent discount. "The person who takes the hit is the merchant, it's me."

Meanwhile, Berkshire Hills Bancorp Inc., a western Massachusetts bank that exchanges BerkShares for dollars, is considering BerkShares-denominated checks and debit cards.

"Businesses aren't comfortable walking around with wads of BerkShares to pay for their supplies or their advertising," said Melissa Joyce, a branch officer with the bank, which has 25 branches, six of which exchange BerkShares. "I do hope that we're able to develop the checking account and debit card, because it will make it easier for everyone."

21 Stocks to Make You Rich

2007-06-13T13:35:00.001-07:00

Kiplinger Magazine (Yahoo Finance)

Of the infinite number of possible stock-picking strategies, one that we particularly like can be summed up in three words: The pros know. In other words, ask the experts what stocks they're buying and you're likely to come up with some pretty good ideas. Last year, we asked seven top portfolio managers to name their favorites, and their 22 choices returned an average of 29% to May 14, well ahead of the 18% gain of Standard & Poor's 500-stock index (for more details, see Our Team Gains 29%).

Now we've rounded up a new group of outstanding managers using the same simple criteria we used to pick last year's bunch: They all have produced superior records, over both the short term and the long term. When these folks discuss their best investing ideas, it's worth listening in.

A Berkshire bent

Many a mutual fund manager has bolted to the free-wheeling, less-regulated, potentially more lucrative hedge-fund world. Whitney Tilson and Glenn Tongue have done almost the reverse. They launched their first hedge fund in January 1999 (it returned an annualized 11%, after fees, to May 1, compared with an annualized gain of 4% for the S&P 500). Then in March 2005 they unveiled Tilson Focus, a concentrated mutual fund that invests in undervalued companies of all sizes. It returned 20% over the past year.

Tilson and Tongue look for safety, low price and rapidly growing value when they shop for stocks. If this reminds you of a certain investor in Omaha, it's for good reason. "We admit to being loyal Buffett disciples," says Tilson.

No surprise then that Warren Buffett's Berkshire Hathaway (BRK-A) is Tilson Focus's largest holding. Tilson and Tongue see safety in Buffett's triple-A-rated holding company: "Its balance sheet is Fort Knox-safe," says Tongue. The value of Berkshire's operating companies in particular, such as Geico, Gen Re and Shaw Industries, is compounding at a furious pace. Tilson says that pretax earnings of Berkshire's operating companies swelled by more than 30% a year from 1995 through 2006.

And Tilson and Tongue reckon that the shares are still cheap. When they apply a modest price multiple to the operating businesses and add the value of Berkshire's cash, bonds and big stakes in publicly traded companies, such as Coca-Cola, Moody's and American Express, they arrive at an intrinsic value of $150,000 a share for Berkshire, a 36% premium to the stock price of $110,000 (Berkshire Class B shares change hands for a mere $3,668).

The story with McDonald's (MCD) is different. This is a remarkable turnaround that Wall Street has consistently underestimated. The stock price has tripled since Tilson and Tongue first bought shares for their hedge fund in December 2002. A stream of successful new-product launches, such as McGriddles, salads and premium coffee, has produced more revenues (sales at stores open at least one year surged a tasty 8.2% in March) through a fixed asset base, resulting in rapidly expanding profit margins. Tilson thinks the stock, recently $51, is worth at least $60 a share.

Mueller Water Products (MWA) is a more traditional deep-value pick. Spun off from Walter Industries late last year, Mueller is the leading maker and supplier of water-infrastructure products, such as fire hydrants, valves, couplings and transmission pipes. The stock, which sells at a small premium to book value (assets minus liabilities), has been depressed by the housing recession. But the water infrastructure in the U.S. is in urgent need of repair or replacement, so Tilson thinks it's just a matter of time before Mueller's flow of profits increases. He sees more than 50% upside in the stock, recently trading at $16.

Overseas and out-of-favor

Since launching Causeway International Value fund in 2001, Sarah Ketterer hasn't been afraid to go against the grain. She favors companies that are attractively priced because of temporary difficulties, and she will take large positions in a country or sector if the fund's strict stock-picking regimen determines that's where the values are. With a $5-billion portfolio of large-company stocks, the fund seemingly has lots of room to grow. Yet Ketterer closed it to new investors to retain the flexibility to move back into midsize companies when prices in that segment moderate. Investors who got in before the doors were locked have been rewarded with a 17% annualized return over the past five years, which was achieved with relatively low volatility.

One of Ketterer's top picks, Sanofi-Aventis (SNY), illustrates how she achieves those low-risk returns. Shares of the Paris-based drug giant have fallen about 9% since July 2006 because of concerns about generic competition and delays in the launch of its anti-obesity product, Acomplia. But a rich pipeline of 65 potential drugs should ensure strong earnings growth in coming years. Meanwhile, says Ketterer, the company should generate a staggering $55 billion in free cash flow (cash left over after paying bills and reinvesting in the business) over the next five years, which should support the share price, recently $46. The company could use the cash to repurchase shares and to bolster its dividend. "The downside is practically nil, barring the unexpected," Ketterer says.

A somewhat riskier pick is Ericsson (ERIC), which built the infrastructure that handles 40% of the world's mobile-phone calls. The Swedish telecom-equipment giant should benefit from strong expected growth in mobile traffic over the next few years. But it operates in an inherently volatile business, and the declining value of the dollar hurts profits earned in the U.S. and in Asian countries with currencies pegged to the greenback. Still, "the stock is too undervalued to ignore," says Ketterer. The shares, at $38, could return 15% to 20% annually over the next couple of years, she says.

HSBC (HBC), the London-based banking giant, has taken its lumps from a subsidiary involved in the foundering U.S. subprime-mortgage business. But with a price-earnings ratio of 13, says Ketterer, it's "quite a bargain for a company that operates globally and with a strong Asia business that is expected to produce earnings growth of 20% to 30% a year." What's more, she adds, the bank is overcapitalized, meaning there's plenty of cash available for paying dividends and buying back stock. Even now, the shares yield a generous 4.3%.

Great companies with principles

Nicholas Kaiser has steered Amana Trust Growth fund to market-beating performance over the past ten years, even though he is, in effect, working with one hand tied behind his back. The fund invests according to Islamic principles, so it must avoid financial stocks and companies with high debt (because of a prohibition against collecting or paying interest) as well as businesses associated with liquor, gambling and pornography. As a result, about half of the U.S. stock market is off-limits. Despite these restrictions, Kaiser has delivered excellent returns: an annualized 14% over the past decade, compared with 8% for the S&P 500.

One of Kaiser's favorite picks is Apple (AAPL). He began buying the computer and iPod maker several years ago at $14 a share, and he still likes it at $109. Yes, the shares look pricey at 30 times expected 2007 earnings, but the P/E has actually been falling as Apple's bubbling product pipeline has churned out one hit after another. Apple's earnings in the first quarter of 2007 soared 85% over the same period a year earlier, well beyond analysts' expectations.

Kaiser believes the company can keep up this impressive performance. He cites the release this year of a new generation of power-hungry digital-design-and-imaging software programs from Adobe. The software, he says, will provide a major boost to sales of Apple's high-end Mac Pro workstations, which start at $2,500. "Every media desktop jockey is going to want to have one of those things," he says. This summer's release of the long-awaited iPhone and the fall debut of the Leopard operating system are further hits in the making, he says.

Kaiser holds a slew of transportation stocks in the fund, and one of his favorites is UPS (UPS). Although its U.S. package-delivery business provides nearly two-thirds of revenues, it faces fierce competition. What excites Kaiser is UPS's logistics business, which offers services ranging from consulting to running a company's entire shipping program. Although it generates just 17% of UPS's revenues, "it's the growth engine," says Kaiser. A $1.68 annual dividend provides a nice 2% yield on UPS's shares.

Clean energy is not one of Amana's mandates, but that doesn't stop Kaiser from endorsing FPL Group (FPL), a Florida utility that's one of the world's largest producers of electric power from wind. Although Kaiser views the utility's emphasis on renewable energy as a plus, he is mainly attracted by its growing customer base, which encompasses about half of Florida's population, and its unregulated wholesale business, which sells low-cost power generated from nuclear plants and other sources. FPL has a "good, steady flow of earnings, an increasing dividend, and it's something we know makes money," he says. The $1.64 dividend has grown nearly 10% annually over the past three years and provides a 3% yield.

Growing and reasonably priced

Most of the high-flying funds that returned 100% or more in 1999, the last year of the tech bubble, have long since crashed and burned. One exception is Turner Emerging Growth. The fund, which focuses on small, fast-growing firms, followed a 144% leap in 1999 with gains of at least 10% in every year except 2002, when it lost 20%. Its annualized 14% return over the past five years easily beat that of the Russell 2000 Growth index. (The fund is closed to new investors.)

Manager Frank Sustersic looks for companies with annual revenue growth of at least 10%, scrutinizing them for weaknesses in their business models. He's also sensitive to price; he dislikes P/Es that are higher than a company's growth rate. That kept the fund out of trouble when the tech bubble burst.

One of Sustersic's top picks is Parexel International (PRXL), among the world's largest providers of clinical research for pharmaceutical and biotech firms. The industry is experiencing "phenomenal growth," in part because the U.S. Food and Drug Administration is requiring more clinical tests, says Sustersic, a health-care analyst by training. Parexel, based in Waltham, Mass., operates in 36 countries and has a backlog of orders totaling more than $1 billion. Its U.S. operations have historically been unprofitable, but Sustersic says that's about to change -- one reason he likes Parexel despite its high P/E of 27 times this year's expected earnings.

Another firm benefiting from a hot market is Ladish Co. (LDSH), a maker of jet-engine parts and other aerospace products. The industry is experiencing a burst of growth, spurred in part by major new jetliners from Boeing (787 Dreamliner) and Europe's Airbus (A380). Like Sustersic's other favorites, Ladish has a healthy backlog -- more than $500 million worth of business. Its shares stumbled, though, after an earnings disappointment in the fourth quarter of 2006 that Sustersic attributes to a plant-maintenance closing that lasted longer than expected. As a result, the shares are selling for a relatively modest 18 times estimated 2007 profits.

Sustersic's third pick, Bucyrus International (BUCY), also made our list last year. The South Milwaukee, Wis., company manufactures large-scale excavation equipment for the surface mining of coal, copper, oil sands and other minerals. Weakness in coal prices has hung over the shares for the past year. But the long-term demand for coal is robust, and the firm has an order backlog of nearly $900 million, up from $659 million a year earlier. "I love firms that have good earnings visibility from a stable or growing backlog," says Sustersic. The stock trades for about 22 times this year's expected earnings, and analysts expect profits to grow by 33% this year and 28% in 2008.

Growth Franchises

Although most growth managers have been mired in a severe slump the past several years, Alex Motola, of Thornburg Core Growth, has maintained a high batting average. During the past three years, his growth fund, which invests in companies of all sizes, has returned an annualized 22%, more than twice the performance of the benchmark Russell 3000 Growth index. Motola says he searches for highly sustainable, growing franchises that are selling at reasonable prices and that are not subject to constant technological innovation or price competition.

His largest position is in Amdocs (DOX), a billing-software and customer-care provider for the telecommunications industry. Clients such as Sprint Nextel and Bell Canada hire Amdocs to install software and operate billing and customer-care applications. Between Amdocs' rising profit margins and recovering stock values in the telecom sector, Motola still sees good upside in the shares, which trade at 17 times estimated profits.

In Las Vegas Sands (LVS), Motola says he's making the rare exception of paying up for a pricey stock: The casino operator sells at 55 times estimated 2007 earnings. Motola anticipates a rising tsunami of earnings and cash flow starting in 2008. "The value is wrapped up in licenses and in Sands' ability to execute," he says.

Sands' founder and controlling shareholder, Sheldon Adelson, is successfully exporting his brand and expertise to Asia, Motola says. The septuagenarian hit the jackpot with Sands Macau. Las Vegas Sands will own or operate seven of ten new properties on the Cotai Strip, a Macau landfill project under construction. "Chinese have a high propensity to gamble," says Motola, who calculates that one billion people live within three hours' flying time of Macau.

Motola also likes the global footprint and powerful brand recognition of Western Union (WU), the venerable money-transfer outfit. A recent spinoff from First Data, Western Union has an unmatched network of 260,000 agents around the world and leadership in a highly fragmented industry. Motola says the company is a play on immigration and the increasing global migration of labor; Mexican immigrants use the network to send money back home, Filipinos working in the Persian Gulf send savings back to the Philippines, and so on. A strong cash generator, Western Union trades for 19 times this year's expected earnings.

Overseas stock shopper

If Alex Motola is one of the best young growth managers in the mutual fund business, David Winters is one of the top young value-investing practitioners. Winters learned his craft at Mutual Series, at the feet of a master, Michael Price. A couple of years back, Winters left his post as chief investment officer of Mutual Series to start his own fund, Wintergreen. Over the past year, Wintergreen returned 20%.

Winters says he's on a "global shopping expedition" and is finding the best deals overseas. One of his favorites is U.K.-based Anglo-American (AAUK), "an incredible treasure trove of assets that can't be duplicated." Winters enthuses over Anglo-American's rich diamond and platinum deposits. The metals-and-minerals giant holds a 45% stake in privately held DeBeers, which "has done a spectacular job convincing women, and the men who love them, that they need diamonds," he quips. Winters figures that hundreds of millions of aspirational Chinese women, trading up from jade jewelry, are potential diamond customers.

An adept numbers-cruncher, Winters looks for undervalued assets and an alluring discount to his assessment of a company's true value before he purchases a stock. But he also zeros in on quality of management. "People matter," he says. "In general, the best investments and worst investments are because of people." Winters looks for executives who focus on building a business's value.

Winters loves the management of Canadian Natural Resources (CNQ), a petroleum company with a large stake in the oil sands of Alberta. Led by Murray Edwards, a team of managers has acquired large oil reserves cheaply. If oil prices don't budge, Winters figures Canadian Natural will still do fine. Plus, managers own $1 billion of company stock. "They're in the boat pulling the oars in the same direction as shareholders," notes Winters.

He also admires the managers of Imperial Tobacco (ITY), which has "done a spectacular job for shareholders." A spinoff in 1996 from Hanson, a British conglomerate, Imperial has made intelligent acquisitions of cigarette brands and consistently returned capital to shareholders through higher dividends and share repurchases. Winters doesn't smoke, but he seems to have an addiction to tobacco stocks, which accounted for 21% of Wintergreen's portfolio at the end of 2006.

Pleasure Picker

Sector funds tend to be streaky and volatile. Mark Greenberg's AIM Leisure is an exception. Over the past decade, it returned more than 15% annualized, nearly double the market's return, with impressive consistency. Greenberg, who started following the leisure business -- what he calls "all the fun stuff in life" -- in 1983, picked an alluring sector. In the U.S., Europe and Asia, consumer spending on such non-necessities as travel, alcoholic beverages and movies routinely grows faster than the overall economy.

One of Greenberg's favorite stocks is Diageo (DEO), the largest owner of liquor brands, including Smirnoff and Tanqueray. "When you're at the bar, you say 'Captain Morgan,' not rum; 'Johnnie Walker,' not Scotch," says Greenberg, who worked as a hotel bartender while in college in Milwaukee. "When liquor is mixed, you can't even tell what you're drinking." It doesn't cost much more to distill branded liquor than generic, but Diageo can sell Johnnie Walker for several dollars more per bottle. The difference shows up in Diageo's robust cash flow and steadily rising dividends.

No matter what you think of Rupert Murdoch's politics, there's no denying that he runs a potent media shop in News Corp. (NWS) Greenberg says Murdoch has been particularly adept at seizing international opportunities and harnessing the Internet (MySpace was a clever acquisition) for cross-marketing purposes. Fox has the highest profit margins of any Hollywood studio, says Greenberg, and the Fox Network churns out popular TV hits with global appeal, such as The Simpsons and American Idol. Shares of News Corp., which has disclosed that it wants to buy Dow Jones, recently traded at 17 times Greenberg's forecast for 2008 earnings.

His final pick exemplifies the discretionary spending of a leisure society: the fast-growing pet-store chain PetSmart (PETM). "It's amazing how much people love their dogs and cats," says Greenberg. The pet industry is growing twice as fast as the economy, and Americans pamper their little friends (dog-and-cat hotels are one of PetSmart's expanding businesses). PetSmart and privately owned Petco are the category-killers in this industry, elbowing aside tiny neighborhood pet shops.

Faith got me past marital woes - Clinton

2007-06-05T11:54:00.000-07:00

By NEDRA PICKLER, Associated Press Writer

In a rare public discussion of her husband's infidelity, Democratic presidential candidate Hillary Rodham Clinton said Monday that she probably could not have gotten through her marital troubles without relying on her faith in God.

Clinton stood by her actions in the aftermath of former President Clinton's admission that he had an affair, including presumably her decision to stay in the marriage.

"I am very grateful that I had a grounding in faith that gave me the courage and the strength to do what I thought was right, regardless of what the world thought," Clinton said during a forum where the three leading Democratic presidential candidates talked about faith and values.

"I'm not sure I would have gotten through it without my faith," she said in response to a question about how she dealt with the infidelity.

The forum, sponsored by the liberal Sojourners/Call to Renewal evangelical organization, provided an uncommon glimpse into the most personal beliefs of Clinton and rivals John Edwards and Barack Obama (news, bio, voting record). The three candidates were invited by Sojourners founder Jim Wallis; most of the other Democratic candidates appeared on CNN later Monday to discuss their faith.

The most intimate question came about the Clintons' relationship, one of the world's most debated marriages but one that the husband and wife rarely speak openly about.

Clinton said she's "been tested in ways that are both publicly known and those that are not so well known or not known at all." She said it's those times when her personal faith and the prayers of others sustain her.

"At those moments in time when you are tested, it is absolutely essential that you be grounded in your faith," she said.

Edwards revealed that he prays — and sins — every day. The crowd gasped loudly when moderator Soledad O'Brien asked Edwards to name the biggest sin he ever committed, and he won their applause when he said he would have a hard time naming one thing.

"I sin every single day," said Edwards, the 2004 vice presidential nominee. "We are all sinners and we all fall short."

Edwards, wearing a purple tie to match Sojourners' signature color, promoted himself as the candidate most committed to the group's mission of fighting poverty. He said he doesn't feel his belief in evolution is inconsistent with his belief in Christ and he doesn't personally feel gays should be married, although as president he wouldn't impose his belief system on the rest of the country.

"I have a deep and abiding love for my Lord, Jesus Christ," Edwards said, but he said the United States shouldn't be called a Christian nation.

He said he has been going to church since he was a child and was baptized as a teen. He said he strayed from his faith as an adult and it came "roaring back" when his teenage son died in 1996.

"It was the Lord that got me through that," Edwards said, along with both of his wife's cancer diagnoses.

Clinton acknowledged that talking about her religious beliefs doesn't come naturally to her.

"I take my faith very seriously and very personally," she said. "And I come from a tradition that is perhaps a little too suspicious of people who wear their faith on their sleeves."

Each candidate was given 15 minutes to appear before the packed auditorium at George Washington University's Lisner Auditorium and a live audience on CNN. They were questioned by O'Brien and by church leaders across the country.

Obama's appearance focused more on policy than the personal. Asked whether he agreed with President Bush's portrayal of the current global struggles in terms of good verses evil, Obama said there is a risk in viewing the world in such terms.

He said he believes that the terrorist attacks on Sept. 11, 2001, were the result of evil. But he said that the United States' treatment of prisoners at Abu Ghraib and Guantanamo Bay is unjust.

"The danger of using good verses evil in the context of war is that it may lead us to be not as critical as we should about our own actions," Obama said to applause.

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

2007-05-31T08:21:00.000-07:00

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.”

Negotiating tips for a new job

2007-05-30T14:36:00.000-07:00

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.

Brazil offers drug factory to AIDS-ravaged Mozambique

2007-05-29T12:18:00.000-07:00

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.

Gas price Web sites see skyrocketing traffic

2007-05-25T13:52:00.000-07:00

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

2007-05-25T13:29:00.000-07:00

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

2007-05-25T11:54:00.000-07:00

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

Currency impasse overshadows U.S.-China deals

2007-05-24T01:51:00.000-07:00

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

2007-05-24T01:35:00.000-07:00

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

2007-05-24T01:31:00.000-07:00

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

2007-05-24T01:01:00.000-07:00

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."

New Chinese rules maintain strict registry of bloggers

2007-05-23T14:12:00.000-07:00

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

2007-05-23T13:51:00.000-07:00

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

2007-05-23T11:12:00.001-07:00

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

2007-05-23T02:14:00.000-07:00

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

2007-05-23T01:15:00.000-07:00

By Karen Aho

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

2007-05-23T00:51:00.000-07:00

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.

12 steps to become a millionaire

2007-05-22T14:34:00.000-07:00

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

2007-05-22T14:14:00.000-07:00

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.

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

2007-05-18T13:39:00.000-07:00

By Nathaniel Rich

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.

pOLy-TicKs

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Profitable Jobs You Can Do From Home

Billionaire Warren Buffett weighing choices for '08 endorsement

How to get your financial records in order

Al Gore's son arrested in California on drug suspicion

Dry cleaner wins missing pants case

Surprising Jobs With Six-Figure Pay

New age town issues its own currency

21 Stocks to Make You Rich

A Berkshire bent

Overseas and out-of-favor

Great companies with principles

Growing and reasonably priced

Growth Franchises

Overseas stock shopper

Pleasure Picker

Faith got me past marital woes - Clinton

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

Negotiating tips for a new job

Brazil offers drug factory to AIDS-ravaged Mozambique

Gas price Web sites see skyrocketing traffic

7 Highly Rated Stocks on Sale

Invest in Shipwrecks and Dead bodies

Bodies in motion

Diving deeper

Currency impasse overshadows U.S.-China deals

Japanese Stocks Climb; Dollar Up vs. Yen

Chinese Ministers, Bush to Meet on Trade

6 Signs Your Bank is Evil

Checks clear almost immediately; deposits take days

Stacking the deck against you

Charging for 'potential' overdrafts

The oxymoronic 'courtesy overdraft'

Fat fees for using personal-finance software

Closing accounts because of bad credit

New Chinese rules maintain strict registry of bloggers

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

Va. Tech panel fights to get gunman's records

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

Selling body parts for cash

Plasma can be yellow gold

For men only

Seeking young women

'I've got my hair'

But wait, there's more

Army says Dragon Skin armor falls short

12 steps to become a millionaire

Milk your benefits

Invest like crazy