Category: News

On the same day that we found out that motor vehicle output added 1.7% to economic growth in the third quarter – the largest contribution to quarterly growth in over a decade – Edmunds.com has released a faulty analysis suggesting that the Cash for Clunkers program had no meaningful impact on our economy or on overall auto sales. This is the latest of several critical “analyses” of the Cash for Clunkers program from Edmunds.com, which appear designed to grab headlines and get coverage on cable TV. Like many of their previous attempts, this latest claim doesn’t withstand even basic scrutiny.

The Edmunds analysis is based on two implausible assumptions:

1. The Edmunds’ analysis rests on the assumption that the market for cars that didn’t qualify for Cash for Clunkers was completely unaffected by this program.

In other words, all the other cars were being sold on Mars, while the rest of the country was caught up in the excitement of the Cash for Clunkers program.  This analysis ignores not only the price impacts that a program like Cash for Clunkers has on the rest of the vehicle market, but the reports from across the country that people were drawn into dealerships by the Cash for Clunkers program and ended up buying cars even though their old car was not eligible for the program. 

This faulty assumption leads Edmunds to a conclusion that is at odds with many independent analyses: Edmunds assumption that more than 80% of the payback from Cash for Clunkers would occur in 2009 isn’t how many mainstream analyses, including Moody’s and IHS Global Insight approach the problem (see pages 5 and 15 of this CEA report [PDF]). In fact, Deutsche Bank recently concluded that “The important takeaway from recent sales trends is that it suggests that there has been minimal ‘payback’ for the U.S. government’s ‘cash for clunkers’ program.”

2. Edmunds also ignores the beneficial impact that the program will have on 4th Quarter GDP because automakers have ramped up their production to rebuild their depleted inventories.

Major automakers including GM, Ford, Honda and Chrysler all increased their production through the end of the year as a result of this program, which will help boost growth beyond the third quarter. The actions of private market participants, who would not increase production if they didn’t think demand for their product would be there through the end of the year, is a far better indicator of market dynamics – and one that Edmunds.com conveniently ignores.

Most importantly, this program is helping boost our economy and create jobs now when we need it most. In a comprehensive report, the Council of Economic Advisers estimated that the Cash for Clunkers will create 70,000 jobs in the second half of 2009. The strength of recent auto sales data suggest that, if anything, this projection underestimates the actual impact of the program. CEA’s analysis is transparent and comprehensive, laying out all of its assumptions for the public to understand. Edmunds.com, on the other hand, is promoting a bombastic press release without any public access to their underlying analysis.

So put on your space suit and compare the two approaches yourself:

Edmunds.com
Council of Economic Advisors

Just a couple of days after calling the Nikkei report on the big-screen DSi “conjecture,” Nintendo has announced the new DSi model via an update on th…

This is just too cool not to post. Look at that little thing. It’s genius. It’s just a bit of walnut or oak, carved into a shape that will keep your ear buds under control. I’m amazed at the sheer beauty and simplicity of the little thing. I don’t even know what to call it. Calling it a wire management device takes away from the sex appeal, but the product name of Wrap Wrap is lame. Idk, but I want one. $17. [via Gadget Lab]

A new perspective has enabled the leadership at the Department of Veterans Affairs
to improve the level and accessibility of care it provides to servicemembers, the
department’s assistant secretary for public and intergovernmental affairs said
here this week…

The Department of Defense has acquired enough doses of the H1N1 flu vaccine to
immunize all 460,000 members of the National Guard, officials announced
today…

Defense and Veterans Affairs Department health care professionals began a
three-day workshop here today to harness initiatives to improve psychological
health care for servicemembers and veterans…

Tears of sadness turned to tears of joy as thousands of Illinois families hugged
their loved one for the first time since their Soldier was deployed in support of
Operation Enduring Freedom…

Members of the Louisiana Army National Guard were surprised by four NFL players
during pre-deployment training here at Camp Beauregard Oct. 23…

F-16 pilots from the United States, Belgium and Jordan competed in the Scramble
launch portion of Falcon Air Meet 2009, a multi-national F-16 competition hosted
by the Royal Jordanian Air Force here Oct. 21…

In the past couple of days I’ve received emails from two separate people who found that public domain material they put on YouTube was taken down to companies claiming ownership of the work. In both cases, the stories seem pretty ridiculous, and for all the complaining that copyright holders do about how awful it is that they need to “police” their own content on YouTube, it seems like those who are getting hurt are people who are putting up public domain material and getting shut down — often with little recourse.

The first story comes to us from two self-described “hippies,” Haint and Littia, who had put up a video showing some of Haint’s works, and used as background music a song by a group called the Psalters, who put their entire album into the public domain so that anyone could do what they wanted with it — such as using it for background music in a video. However, music licensing company Rumblefish, supposedly uploaded its catalog into YouTube’s content ID system — and apparently (and I’m still trying to figure out how, because no one seems to have a good explanation), the Psalters song is somehow in Rumblefish’s catalog. Hence, YouTube took down the video. Apparently others have also been finding their perfectly legal and licensed content taken down thanks to Rumblefish as well, and were told that they needed to call and get Rumblefish’s permission to get the content back up.

Haint and Littia note that they can’t issue a counternotice, because Rumblefish never sent a DMCA notice which they can counter (Update: to clarify, as explained in the next sentence, they can dispute, but that’s slightly different than countering the DMCA notice, and comes with its own problems). The “takedown” was triggered by the content ID match, which still makes things a bit tricky, since “disputing” such things could potentially lead to a lawsuit, so there’s a bit of a chilling effect in disputing a content ID match. Poking a big company with a stick where they can turn around and file a lawsuit is a bit scary — even if you know you’re in the legal right.

While looking into that story, reader Stephen Pate sent over his own story of having his entire YouTube account suspended. He’s not entirely sure why, but believes it has something to do with video he posted of the recent “crash on the moon.” The video was taken directly from NASA’s live broadcast, which NASA makes clear is not covered by copyright.

But… along came everyone’s favorite news organization, the Associated Press, and claimed the video was their copyrighted material. Nice of them. Due to at least one other similar incident, Pate’s entire account was shut down, and to make matters worse, this apparently happened at about the same time that YouTube switched emails to gmail logins, leading Google to claim that it can’t match his email to the email of the account in question.

I’m sure Google and YouTube are trying their best, within the confines of copyright law and various lawsuits, to handle such situations, but it seems like things are a mess — and more and more users are finding that even if they have what appears to be perfectly legal content, they may face takedowns and even loss of their entire account, with limited avenues for recourse.

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The President and his team have discussed this problem with small business owners from across the country and we know they don’t want to stop providing coverage to their employees. Small businesses are like families and small business owners want to give their employees the coverage they deserve. Unfortunately, the high cost of health care is making it impossible for many small businesses to provide health benefits.

Today, HHS Secretary Kathleen Sebelius has released a new report, Lower Premiums, Stronger Businesses: How Health Insurance Reform Will Bring Down Costs for Small Businesses. The report looks at the current status quo and outlines how reform will help solve this problem and bring costs down for small businesses. Specifically, reform will.

Create an insurance exchange. Health insurance reform will create a health insurance exchange that pools small businesses and their employees with millions of other Americans to increase purchasing power and competition in the insurance market (a luxury only large firms currently enjoy).  Increased purchasing power and competition, in turn, make premiums more affordable.  The exchange will also reduce administrative costs for small businesses and their employees by enabling them to easily and simply compare the prices, benefits, and quality of health plans.
Provide a small business tax credit.  On top of the potential savings created by the health insurance exchange, an estimated 3.6 million small businesses nationwide could qualify for a tax credit to make coverage for their employees even more affordable. For example, a firm with 9 employees and an average wage of less than $20,000 per employee could receive a credit of 35 percent off its premium costs in 2011 under the amended Senate Finance bill, or a credit of 50 percent off its premium costs under both the Senate Finance and House Tri-Committee bills in 2013.
End the “hidden tax” on small businesses that provide health insurance.  Premiums are high, in part, because of a “hidden insurance tax” of more than $1,000 added onto every family policy that covers the cost of care for those without insurance.  Health insurance reform will benefit small businesses that already provide health care by expanding health care coverage to all Americans and removing this hidden tax.  These reforms will enable streamlined, efficient coverage for all Americans.
Prevent arbitrary premium hikes. In the current health insurance system, small businesses can see their premiums skyrocket if just one or two workers fall ill and accumulate high medical costs.  Health insurance reform will prevent insurance discrimination based on health status, meaning that small businesses will no longer be unfairly penalized if a worker falls ill.

These are just some of the ways health insurance reform will support small businesses and help ensure all Americans get the secure, stable coverage they need. To learn more, read the full report by visiting www.HealthReform.gov.

Linda Douglass is Communications Director for the Office of Health Reform

The Trans-Atlantic Science for Policy Workshop at the Joint Research Centre (JRC) in Ispra brought together a unique group of 22 individuals with pertinent experiences of real-life scientific support to policy-making. These parliamentarians, science advisers, heads of European and international organisations, leaders of science foundations and academies, plus senior NGO representatives and CEOs from industry, represent all aspects of science-policy interaction from conception and development to implementation, monitoring and evaluation.

We at CrunchGear are rarely at the forefront of fashion. However, once I reviewed the Vibram Five Fingers I knew I was onto something. Thankfully, there are other people out there who don’t think my love for foot gloves is not strange or weird. In fact, people wear these crazy shoes everywhere they go!

Take a look at BirthdayShoes.com. Editor Justin Owings gets testimonials from all over the world including folks who have run marathons in these things and other folks who stand around in India wearing them. Heck, even Sergey Brin is down.

To be clear, these people are totally serious about breaking the chains of monotoe hegemony. One fellow started wearing them to work and is not afraid of what his coworkers have to say:

Thursday marked the first week since I started wearing the KSO Treks in the corporate environment as a daily part of my work attire. Although having worn them to and from work since september 9th, I had previously made it a habit of switching out to a more traditional shoe while on the clock. Finding it difficult to wear monotoed footwear every day, it just became apparent to me last Friday that there should be absolutely no reason to have to go back to wearing anything that felt so uncomfortable while being so unhealthy.

Luckily for me, I have a pretty good rapport with most coworkers and find it easy to converse with those I haven’t met. Most seem to be more aware of me for being a surfer/skateboarder which already sets me apart … Quite a few have noticed the five finger shoes as the week progressed and today work literally stopped in one department while a lively discussion about footware ensued.

Collection Associates LLC, a portfolio company of LaSalle Capital Group, has acquired Money Recovery Nationwide, a Landsing, Mich.-based provider of debt collection services to the healthcare industry. No financial terms were disclosed.

PRESS RELEASE

LaSalle Capital Group, L.P.’s (”LaSalle Capital”) portfolio company Collection Associates, LLC (”CAI”) is pleased to announce the acquisition of Money Recovery Nationwide (”MRN”).

MRN, headquartered in Lansing, Michigan provides debt collection services to the healthcare industry. MRN has been active in the industry dating back to 1988, and is regarded as a premier provider of third-party collections for hospitals and physician groups in the state of Michigan.

MRN is the fourth collection agency purchased by CAI, and represents a significant addition to CAI’s Midwestern focused strategy. “Alan Jacoby and his team have built one of the most important agencies in Michigan. Their broad reach throughout the state increases our geographic footprint substantially and firmly establishes our combined organization as the premier Midwest-based healthcare accounts receivable management business.” stated Rocco Martino, a Partner at LaSalle Capital. Mark Schabel, CEO of CAI added, “MRN will be an outstanding addition to our portfolio of agencies, and we are excited that Alan Jacoby and Gary Ferdig are going to continue on as part of the management team to take the organization to a new level.”

Alan Jacoby stated, “Our acquisition by CAI will allow us to deploy new product offerings and leading technology to best serve our clients in this tough economic environment. I am excited about the business combination and think that this will expand our ability to serve the needs of the Michigan market.”

If you have questions on this Company or would like to discuss other opportunities in the healthcare collections industry, please contact either Rocco Martino or Nick Christopher at LaSalle Capital.

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House Speaker Nancy Pelosi Thursday morning unveiled a House health care reform plan that is expected to cost about $894 billion and “provide insurance to up to 36 million people by broadly expanding Medicaid, the state-federal insurance program for the poor, and by offering subsidies to moderate-income Americans to buy insurance either from private carriers or a new government-run plan,” the The New York Times reports. “According to the Congressional Budget Office, the bill would reduce future federal deficits by about $30 million over the next 10 years.”

The House measure is similar to a proposal being considered in the Senate. “But there are crucial differences,” according to the Times. “The House bill, for instance, would impose a new income surtax on individuals earning more than $500,000 and couples earning more than $1 million – a so-called millionaire’s tax. The Senate would impose a tax on high-cost insurance policies, a move that experts say could help lower long-term health care costs by giving employers, employees and private insurers incentive to reduce expenditures” (Herszenhorn, 10/29). 

Kaiser Health News provides the bill language.

CNN: “The bill guarantees that 96 percent of Americans have coverage, Pelosi’s office said. The figure is based on an analysis by the nonpartisan Congressional Budget Office. … Under the House plan, health care providers would be allowed to negotiate reimbursement rates with the federal government, according to Democratic leadership aides.” Throughout the development of this legislation, Pelosi and other liberal Democrats “had argued for a more ‘robust’ public option that ties reimbursement rates for providers and hospitals to Medicare rates plus a 5 percent increase. Several Democrats representing rural areas, however, complained that doctors and hospitals in their districts would be shortchanged under such a formula” (Oct. 29).

The Washington Post: “The bill includes a version of the ‘public option’ preferred by moderates and raises Medicaid eligibility levels to 150 percent of the federal poverty level for all adults, a steeper increase than in earlier drafts.” In describing the bill, which Pelosi said would insure 36 million more Americans, Pelosi noted that “‘[t]oday we are about to deliver on the promise of making affordable, quality health care available for all Americans,’ Pelosi said, describing a bill that she said . ‘…We are putting forth a bill that reflects our best values and addresses our greatest challenges.’” The bill seeks “to provide health insurance of one form or another to 96 percent of all Americans at an expected cost just below $900 billion over 10 years, without increasing the federal budget deficit for at least 20 years, House Democrats said. ‘It opens the doors to quality medical care for those who were shut out of the system for far too long,’ Pelosi said” (Murray, 10/29).

The Associated Press: “The ceremony marked a pivotal moment in Democrats’ yearlong attempt to answer Obama’s call for legislation to remake the nation’s health care system by extending insurance, ending industry practices such as denying coverage on the basis of pre-existing medical conditions, and slowing the growth of medical spending nationwide.” A vote on the measure is likely next week (Werner, 10/29).

Renewable Funding, an Oakland-based financier of property-assessed clean energy (PACE) programs, has raised $12.2 million in Series A funding. NGEN Partners and Draper Fisher Jurvetson co-led thye round, and were joined by New Cycle Capital and law firm Wilson Sonsini.

PRESS RELEASE

Renewable Funding, the nation’s leading financier of Property Assessed Clean Energy (PACE) programs, today announced the close of a $12.2 million Series A round of financing. The investment was led by NGEN Partners LLC and Draper Fisher Jurvetson. Other investors included New Cycle Capital, a San Francisco based venture fund focused on businesses that can change the world, and the Wilson Sonsini law firm, which also serves as counsel to the company.

The infusion of capital will accelerate Renewable Funding’s expansion of PACE financing programs throughout the United States. PACE allows private property owners to pay for energy efficiency and renewable energy projects through an addition to their property tax bill. Over the past twelve months, legislation enabling PACE programs has been adopted in 14 states. Renewable Funding developed the PACE model with the City of Berkeley, and is now working with cities, counties and states around the country in the development, administration, and financing of these programs.

“Renewable Funding developed the PACE financing model to address climate change and help families and businesses save money,” said Cisco DeVries, President of Renewable Funding. “With this infusion of capital, we have additional resources to accelerate the rollout of clean energy funding programs and respond to the growing demand for PACE financing.”

The funding comes on the heels of an announcement by Vice President Biden that PACE programs will be a key component of the nation’s “Recovery Through Retrofit” effort to reduce greenhouse gas emissions and provide an engine for green job growth. The Clinton Global Initiative recently called for a rapid expansion of PACE programs to 50 municipalities around the country.

About Renewable Funding (www.renewfund.com)
Renewable Funding is the nations’ leader in providing financing and administration for property assessed solar and energy efficiency improvements. A UC Berkeley study published earlier this year in Environment Magazine found the potential for $280 billion in financing for PACE-type programs and reduction of up to a gigaton of greenhouse gas emissions as PACE programs expand nationally.

About NGEN (www.ngenpartners.com)
NGEN Partners LLC provides enterprising capital for clean technology companies. Founded in 2001, NGEN is a pioneering investor in the cleantech sector, investing in companies that offer products and services that positively affect the environment. NGEN has deep expertise in alternative energy, energy efficiency, pollution abatement and green resources.

About Draper Fisher Jurvetson (www.dfj.com)
Draper Fisher Jurvetson (”DFJ”) backs extraordinary entrepreneurs who set out to change the world. DFJ achieves its mission through the DFJ Global Network of Partner Funds, managing over $6 Billion on four continents. Over the past twenty years, DFJ and its Network have invested in more than 500 companies.

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You know if a given country, in this case Japan, is over-saturated with gadgets when you see stuff like this: A remote-controlled tissue box [JP]. I mean who doesn’t know the trouble you go through when you want to wipe your nose and that damn tissue box is like 3 feet away again?

But here’s some help. The so-called Running Tissue Box has a maximum range of 8m for the radio signal. It’s sized at 250×65×123mm and is available in white, red and black.

The thing costs about $25. If you really want to have one and live outside Japan (the only place in the world where they sell it), ask the Japan Trend Shop, Geek Stuff 4 U or Rinkya to ship one to you.

Here’s how the box moves (I know it’s silly):

I actually like this idea. Kohjinsha recently showed off its dual-display 10-inch netbook, which runs Windows 7 atop an AMD Athlon NeoMV-40 CPU at 1.6GHz. The machine can be used as a netbook with a standard 10-inch display (it’s a swivel, screen) or a second 10-inch display can be slid out from behind the first to be used together for double the desktop real estate.

There’s no firm release date or pricing, except to say that the company wants to launch the product by the end of the year with a target price of less than 100,000 Yen. That’s around $1100 US, which is far more than most people would be willing to pay for a netbook – two screens or not – but the idea’s there. We likely won’t see it here anyway, although certain Kohjinsha products can usually be ordered through various online import shops.

[via NetbookNews.de (translated)]