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  • Eat Organic For Cheap

    Organic food is pesticide-free and saves baby unicorns from exploitation, but darnit if Whole Foods ain’t a pricey pack of provisioners. But there are ways to buy organic and still be frugal.

    You can buy your foods raw, not processed, cook from scratch, and friend a farmer. Check out more at WikiHow, with 8 ways to stay organic and not break the bank.

    Do you buy organic? What do you use to keep the shopping list under budget? Leave your tips in the comments.

    How to Eat Organically on Modest Means [WikiHow]

  • Armed Group Warns Lawmakers of ‘Consequences’ of Gun Restrictions

    President Obama might have signed the bill that allows loaded weapons in national parks, but don’t tell that to the armed activists who gathered Monday at Virginia’s Fort Hunt to showcase their Second Amendment rights. They claim to be quite threatened by the current leaders in Washington, and they were quick to lob a few threats of their own.

    Here, for example, is a video of Alabama militiaman Mike Vanderboegh telling reporters that there will be “consequences” if policymakers try to restrict gun rights.

    Vanderboegh: I’m calling on the government to understand that there are going to be consequences to pushing people like us any farther back.

    Questioner: More Ruby Ridges? More Wacos?

    Vanderboegh: Precisely.

    From comments like that, you’d think that the House was about to tighten D.C.’s gun laws, rather than gutting them.

  • Comic BANG! | Bad Astronomy

    bangcoverI get a lot of books and such sent to me, and I rarely have time to look them over. It’s a blessing and a curse, I guess. I want to see what everyone else is doing, but I’m doing too much to look!

    But I got an email from James Dunbar, asking if I’d look over his rhyming verse comic book called BANG! The Universe Verse. He made it easy, since there’s a small version online I could look through.

    I like it! It describes the Big Bang model using simple terms, and goes through the timeline breezily, making it easy to read. Someone unfamiliar with the science will get a passing familiarity with it from reading this, and enough info to go online and find out more.

    And if you are familiar with the science, you might get a kick out of the drawings anyway. I really liked this one:

    bang_page

    Clever use of visual similes, with the iris resembling an explosion.

    BANG! is freely available as an e-book, and you can ping him if you want a PDF. He also sells a bound copy for $10, which is pretty reasonable given he’s self-publishing it.

    He’s a talented guy, and I hope he can do more stuff like this. I wonder how many kids he can inspire to get more interested in science?


  • Zagato teases Alfa Romeo TZ3 Corsa ahead of Villa d’Este

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    Alfa Romeo TZ3 Corsa by Zagato – Click above for high-res image

    A couple of weeks ago, we reported that Zagato was planning to unveil a new Alfa Romeo at the upcoming Concorso d’Eleganza Villa d’Este. Now the stoic Italian carrozzeria has released the first teaser image (above) and initial details of what it has in store for us.

    The TZ3 Corsa follows in the footsteps of the original Alfa TZ and TZ2, drawing on some 90 years of collaboration between the two companies and commemorating Alfa’s centenary. It’s based on a carbon fiber tubular chassis overlaid with a lightweight aluminum body. But instead of a show car like the Pininfarina 2uettottanta and the Bertone Pandion that bowed in Geneva, the TZ3 Corsa is a full-on competition machine, commissioned by an unidentified German gentleman racer.

    The overhead view looks strikingly similar to the 8C Competizione upon which it’s based, and Zagato has released a handful of images of its historic Alfa racers – which you can view in the gallery below together with the press release after the jump – to mark the occasion. The most prestigious of open-air auto shows takes place this year from April 23-25, so stay tuned for more details.

    [Source: Zagato]

    Continue reading Zagato teases Alfa Romeo TZ3 Corsa ahead of Villa d’Este

    Zagato teases Alfa Romeo TZ3 Corsa ahead of Villa d’Este originally appeared on Autoblog on Mon, 19 Apr 2010 15:28:00 EST. Please see our terms for use of feeds.

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  • JetBlue Pilot Says Someone Aimed Laser Into His Cockpit

    The pilot of a JetBlue flight heading from Portland, Maine, to JFK Airport in NYC on Saturday night says that a yet-unexplained green laser penetrated the window of the plane’s cockpit as he prepared to land.

    It was around 7:45 p.m. on Saturday when the pilot says he noticed a bright green beam coming through the window. He claims it was so bright he had to use a sun visor to block it out.

    The pilot says the light appeared to be coming from along the beaches near JFK and that it seemed like the laser was being pointed at the plane. He was able to land the flight without problem and the incident is being investigated by Port Authority Police.

    Laser beam penetrates cockpit, pilot says [WABC]

  • Rapping Soldier Discharged

    A Fort Stewart soldier has been discharged from the Army after pleading guilty to charges of making threats in a rap song and sending a copy to fellow soldiers and Pentagon officials.

    Spc. Marc Hall has been given an ‘other-than-honorable discharge’ (OTH).  It is an administrative discharge so there is no criminal record, but Hall will lose veteran benefits he would have otherwise been eligible for. The Army takes all threats seriously, last November a gunman opened fire, killing 13 people at Fort Hood in Texas.

    Hall admitted he told several people he would attack soldiers in his unit after recording a rap song called “Stop Loss,” just months before the Fort Hood shooting. Army soldiers who undergo “stop-loss” must complete additional tours of duty and Hall’s military contract had just been extended.

    In his song, Hall raps about walking up to soldiers and “surprising them all” with 30 rounds set to a “three-round burst.” Another lyric says: “Still against the war / I grab my M4/ Spray and watch all the bodies hit the floor/ I bet you’ll never stop-loss nobody no more.”

    He sent a copy to the Pentagon, posted it on his website and gave copies to soldiers in his unit.

    Halls was charged with violating Article 134 of the Uniform Code of Military Conduct.  His charges include making threats fellow soldiers. Rather than bringing soldiers from Hall’s infantry to the states for trial, Hall’s hearing took place in Kuwait.

    Gen. Carter Ham, a commander and adviser to the Department of Defense, said the military is taking the necessary steps to keep its men and women safe.

    “Commanders are the key to monitoring threats,” Ham told a House Appropriations Committee. “Policies must acknowledge the threat and help identify and address those likely to become violent.”

    On the other hand, Hall’s supporters argue the rap song is a free speech issue and not a serious threat.

    Hall’s discharge will take approximately two weeks before it is final. He will have to out-process at Fort Stewart which means he has to complete paperwork, de-briefings as well as return military gear.

  • CHART OF THE DAY: The Shortest Correction Of All Time

    That was quick.

    After Friday’s selloff, pretty much everyone and their mother announced the beginning of a new correction.

    Well, it didn’t happen.

    chart, dow 16-19 april 2010

    Join the conversation about this story »

  • AFL-CIO Urges Pinnacle Entertainment to Reform Corporate Governance

    Proposes Annual ‘Say-on-Pay’ Vote on Executive Compensation

    WASHINGTON, April 19 /CHICAGOPRESSRELEASE.COM/ — In an independent proxy solicitation at Pinnacle Entertainment, Inc. (NYSE: PNK), the AFL-CIO urged shareholders to vote for a proposal urging that the Board of Directors adopt an annual advisory vote by shareholders on executive compensation. Shareholders will vote on the AFL-CIO’s “Say-on-Pay” proposal at Pinnacle Entertainment’s annual shareholder meeting on May 11, 2010 in Las Vegas, Nevada.

    According to AFL-CIO President Richard Trumka, “We believe that CEO pay should not reward underperformance.  But at Pinnacle Entertainment over the past two years, former CEO Daniel Lee received millions of dollars in pay and severance while the company lost hundreds of millions.  An annual Say-on-Pay vote will give shareholders a valuable opportunity to signal their executive pay concerns to the Board of Directors.”

    The AFL-CIO’s proxy statement notes that Pinnacle Entertainment lost $258.3 million in 2009 while its former CEO received $4.5 million in total compensation, including $2.8 million in severance.  In 2008, Mr. Lee received $5.5 million in total compensation when the company lost $322.6 million.  Pinnacle Entertainment’s stock has underperformed the Dow Jones US Gambling Index by 26 percent over the past five years.

    In addition to calling for a “Say-on-Pay” vote, earlier this year the AFL-CIO submitted proposals to Pinnacle Entertainment urging the establishment of an independent Board Chairman, majority vote director elections, and a ban on tax gross-up payments to executives and directors.  The AFL-CIO withdrew these three proposals after the Board of Directors substantially implemented these reforms on March 29, 2010.

    Shareholders can vote for the AFL-CIO’s “Say-on-Pay” proposal by voting the AFL-CIO’s blue proxy card or Pinnacle Entertainment’s white proxy card.  A copy of the AFL-CIO’s proxy statement is available by contacting the AFL-CIO’s Office of Investment at (202) 637-3900.

    SOURCE AFL-CIO

    http://www.aflcio.org

    Distributed via Chicago Press Release Services


  • Treat Depression with Exercise

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    Depression is the most common mental illness in Canada. In particular, young adult women experience a higher rate of depression than at any other period across the lifespan and the rate of depression in women aged 18-24 years is at least two times higher than the rate in men in the same age group. Medication and/or talking therapies are the front-line treatment strategies for depression. However, many people do not seek treatment, or wait too long to receive treatment.

    Health professionals can never fully meet the need for treatment in mental health care and thus it’s also useful to look at other strategies that could reach a broader population who can’t access therapy or prefer not to use medication. One alternative strategy may be exercise.

    Continue reading Treat Depression with Exercise

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  • Fannie: Home Buying Credit Failed

    The government’s attempt to boost home purchases through a broadened tax credit hasn’t worked, according to Fannie Mae. In a new report (.pdf), the government-sponsored enterprise says that the housing rebound has been choppy and revised its projection of home sales growth for 2010 downward to 6% from the 9% forecast just last month. Fannie worries that home sales inventory is shrinking too slowly for a strong recovery to take hold.

    Here’s a graph the company provides to demonstrate the government credit’s lackluster performance:

    fannie cht 2010-04.PNG

    The report explains:

    Despite the looming deadline of the second tax credit, which requires a signed contract by April 30 and settlement by June 30, builders saw no rush in new home buying. Both components gauging current sales conditions and traffic of prospective buyers fell. The component gauging sales expectations in the next six months also declined, which was to be expected given that the tax credit is scheduled to expire soon. Builders cited the lack of available credit for new projects, tough competition from the continual flow of distressed properties for sale, in some cases below production cost, and concerns over job security as factors weighing on confidence.

    Fannie’s 2010 home sales growth revision from 6% to 9% is also quite significant. It essentially cuts the number of additional sales expected compared to 2009 by 50%. That’s a major change. From the narrative above, it sounds like economists underestimated foreclosures and credit difficulties that would persist in 2010, while overestimating the power of the credit.

    So that big bump in home sales expected for March and April may not come to be. The home credit is having a weaker impact than anticipated. Fannie says even though homebuilding has been weak since the housing bubble burst, it needs to be even slower to allow the housing inventory to begin to decline to normal levels again. If foreclosures continue to break records as they did in March, then that also won’t help matters.

    The report makes pretty clear that the housing recovery will be a slow one.





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  • The sweetener lobby: still a powerhouse in the school lunch debate

    by Ed Bruske

    For the sweetener industry, shovelling empty calories to your kids has been very, very good business. They’d prefer not to stop. “Healthy Schools” legislation written by D.C. Councilmember Mary Cheh comes up for its first committee vote today after months of deliberations and with one very conspicuous missing element: no regulation of sugar in school meals. 

    Removing the astonishing amount of sugar served to D.C. school children every day is probably the quickest and cheapest way to make school meals healthier. But you won’t see any of that in the “Healthy Schools” legislation. How can that be, you might ask, when kids are being served 15 or more teaspoons of sugar every day for breakfast at school: strawberry milk the equivalent of Mountain Dew, candied cereals containing three or more teaspoons of sugar per serving, Pop-Tarts, juices that might as well be sodas. 

    A teaspoon of sugar contains 16 calories, meaning the breakfast described above contains 240 calories worth of sugar, or 44 percent of the 550 calories the “Healthy Schools” bill sets as the maximum total breakfast calories D.C. school children through eighth grade should be consuming. 

    Truth is, federal regulations that govern school food programs contain no limits on sugar in subsidized meals. Consequently, according to a top legislative aide involved in writing the “Healthy Schools” bill, there were no standards on which to base a limit on sugar for meals served in the District of Columbia. 

    “We certainly have heard the concerns that you and others have expressed about sugar in school meals, but we haven’t seen any guidance about how to regulate it,” the aide said. “Neither the Healthier U.S. [School Challenge] nor the IOM [Institute of Medicine] standards have recommendations for limiting sugar in school meals.  (The IOM notes, on page 52, that “By far the largest contributors to the intakes of added sugars (45 percent of the total amount) were regular soda and non-carbonated sweetened drinks,” which are heavily restricted under the HSA.)  Therefore, there does not seem to be any guidance about how to do it.” 

    And what about flavored milk served at breakfast and lunch in D.C. schools? Chocolate milk contains the same amount of sugar as Classic Coke, and strawberry milk nearly as much as Mountain Dew.  The strawberry milk contains 28 grams of sugar—about seven teaspoons—or 112 calories. That represents 66 percent of the 170 total calories in the one-cup containers routinely handed out in D.C. schools for breakfast and lunch. 

    “Regarding flavored milk, we do understand your concerns, but we have also heard concerns from other nutritionists who say that milk is important for child development and that even if the milk is flavored it is better for children to drink flavored milk than to drink no milk at all,” the aide said. “We are not nutritionists and have no way to resolve this debate.  Therefore, we are choosing to use this bill to set the floor for school nutrition and then to empower OSSE [Office of the State Superintendent of Education] and schools to set higher standards—to ban flavored milk and other things if they so choose.” 

    In fact, there is no scientific body of evidence indicating that children who are not offered a flavored milk option either drink less milk or are deprived of important nutrients. That seems to be more of an assumption encouraged by the dairy industry, which counts on flavored milk for a large portion of its sales.  

    Still, how can it be that the federal meals program, in existence since 1946, has no standard to govern the use of sugar in school meals, especially at a time when child obesity and attendant diseases such as diabetes are such a concern? I asked Marion Nestle, a prominent nutritionist and author of  Food Politics.  

    “Here’s the short answer: Sugar industry lobbying,” Nestle said.   

    What she added is worth quoting at length:

    Sugars were never a problem when schools were reasonably well supported in part because competitive foods were reasonably well regulated and in part because snacks were too.  All that changed when schools ran out of money and had to start pushing snacks and sodas in order to fill the budget gap.  Nobody paid much attention to what kids were eating—until recently.   

    No federal agency has ever set a maximum for sugar intake although dietary advice for years all over the world has been to limit sugars to 10% or less of daily calories.  That percentage was embedded in the recommendations of the 1992 USDA Pyramid which said, “Use sugars only in moderation.”  USDA defined “moderation” as 6 teaspoons a day of total added sugars for a diet containing 1600 calories, 12 tsp for 2200, and 18 tsp for 2800.  If you do the math (assume that a tsp is 4 grams and 16 calories), this comes to less than 10% of daily calories.  But the Pyramid did not say so explicitly.  That’s just how it works out.  “Some years later, in developing the new Dietary Reference Intakes, the Institute of Medicine recommended 25% of calories from added sugars as an upper limit.   

    In the early 2000s, the World Health Organization attempted to set an upper limit of 10% of calories from added sugars to its global strategy for health.  U.S. sugar lobbying groups went berserk and got the attorney for the Department of Health and Human Services to write a letter to WHO threatening to withdraw U.S. funding if that recommendation was not eliminated.  The controversial figure disappeared.   

    The bottom line: no standard of intake exists so anything goes.  My understanding is that sugars not only pervade the meals, but also treats given out by teachers and brought in by parents for birthdays.   “The one bright side is that the reauthorization of the Child Nutrition Act contains provisions to revisit the standards for school meals based on the Dietary Guidelines that will be coming out later this year. These, hopefully, will refer to a recent IOM report developing new school meals standards for the USDA.

    The IOM found that children’s consumption of “discretionary” calories from solid fat—as from hamburgers and pizza—and sugar “were much higher than the amounts specified” by the federal food pyramid. For children aged nine to 13, for instance, the excess averaged 543 calories, or about a third of the total daily calories recommended for children in that age group.

    But rather than address sugar directly, the Institute of Medicine panel took a back-door approach: increasing the amount of “healthy” foods in school meals and setting a maximum on calories served in school meals would drive down the amount of calories from sugar, the panel reasoned. “The committee notes that its approach to developing the standards for menu planning leaves relatively few discretionary calories for added sugars and saturated fat,” the report reads. 

    But with “careful menu planning,” the panel suggests, schools would still have enough of those discretionary calories to make room for flavored milk and sugary cereals. “The omission of those sweetened foods might result in decreased student participation as well as in reduced nutrient intakes.” 

    Nestle calls this last statement by the IOM committee “a sellout. I’ve been in plenty of schools where the kids eat unsweetened foods and are doing just fine.  Those schools are run by adults who care what kids eat.  Kids will eat foods prepared by adults who care, as witnessed by Jamie Oliver.” 

    Although Cheh’s original “Healthy Schools” bill embraced the proposed IOM standards, she abandoned them after school officials said they could not guarantee schools would be able to serve additional vegetables that kids would actually eat and not throw in the trash. The bill now adopts less stringent standards under the “Healthier U.S. Schools Challenge” sponsored by the USDA. Those standards likewise do not address the issue of sugar in school meals. 

    Nestle said the best hope may be if Congress, in its pending re-authorization of the Child Nutrition Act, requires that schools adhere to the government’s own Dietary Guidelines for Americans. Those call for no more than two to eight teaspoons of sugar per day for discretionary calories, according to Nestle. 

    “The USDA [food] Pyramid allows 200-300 discretionary calories a day for fats and sugars.  That’s less than 10 percent of calories, and still not bad,” Nestle said.

    Related Links:

    USDA Inspector General: meat supply routinely tainted with harmful residues

    Scenes from a school cafeteria [slideshow]

    What I learned at Michelle Obama’s historic obesity summit






  • 5 Supercar drag race: Maserati GranTurismo, Audi R8, Ferrari F430, Lamborghini & Mercedes SLR

    5 Supercar drag race

    The Ultimate Play Date: Maserati GranTurismo, Audi R8, Ferrari F430, Lamborghini & Mercedes SLR

    This is kids-in-candy-store stuff, plain and simple. You can quit looking at the cars on this page and struggling to imagine a narrative hook that logically connects such disparate players as an out-of-production Mercedes-Benz McLaren SLR coupe and a Maserati GranTurismo-both front-engine, rear-drivers, with mid-engine superstars like a spanking new Lambo LP560-4, last year’s Audi R8 4.2 quattro, and a 2007 Ferrari F430. There isn’t one.

    This is like a rich collector’s dream garage with all the doors open and all the keys in the ignition. We’re playing with five cool cars that all gasoline-blooded MT readers would give their eye teeth (or $1695, if that’s more convenient) to drive.

    So, the best sport car into the world is McLaren Mercedes SLR !

    Read more

  • Toyota recalls 9,400 2010 Lexus GX 460 SUVs

    Toyota Motor Sales U.S.A Inc., announced today that it will conduct a voluntary safety recall on approximately 9,400 2010 Lexus GX 460 luxury SUVs to update software in the vehicle’s Vehicle Stability Control (VSC) system. Toyota said that no other Toyota, Lexus, or Scion vehicles are involved in this recall.

    The VSC system helps control a loss of traction in turns as a result of front or rear wheel slippage during cornering.

    “Toyota’s objective is to provide a high level of safety and quality, while meeting or surpassing governmental regulations,” Toyota said in a statement. “Our engineers have conducted tests to confirm the VSC performance issue raised by Consumer Reports, and we are confident this VSC software update addresses the concern,” said Steve St. Angelo, Toyota chief quality officer for North America.

    Toyota said that all Lexus dealers will have the VSC software update by the end of April. Once the software update is available at dealerships, vehicle owners are encouraged to bring their Lexus GX 460 to a dealer at their earliest convenience for the update. The fix will take approximately one hour depending on the dealers’ work schedule.

    “From the moment we heard about this issue, Lexus and our dealers acted quickly to resolve the situation. Our dealers will now personally reach out to customers to set up appointments to make this modification. Lexus has always been about providing exemplary customer satisfaction and this will be another opportunity to demonstrate that,” said Mark Templin, Lexus group vice president and general manager.

    – By: Omar Rana


  • Is Goldman A Good Buy At 9x Earnings? Not A Chance (GS)

    MagnifyingGlass(This is a guest post from Crossing Wall Street.)

    In Tom Wolfe’s The Bonfire of the Vanities, the D.A. was known as Captain Ahab for his tireless search for the Great White Defendant. I can’t help but this of this when looking at the SEC’s case against Goldman Sachs (GS). This is a very convenient target coming at a very convenient time.

    If the facts we have are correct, then Goldman should clearly be found guilty before a moral court. However, the actual legal case the SEC has seems shockingly thin. Even after several months, the case will turn on the materiality of John Paulson’s role in forming the Abacus portfolio. Furthermore, Mr. Tourre isn’t merely a small fry—he’s a micro-guppy.

    The Wall Street Journal opines:

    After 18 months of investigation, the best the government can come up with is an allegation that Goldman misled some of the world’s most sophisticated investors about a single 2007 “synthetic” collateralized debt obligation (CDO)? Far from being the smoking gun of the financial crisis, this case looks more like a water pistol.

    My guess is that Goldman will end up writing a big check to make all this go away, say, about $200 million which would be around 40 cents a share for a company with a book value of $117. The damage to their reputation won’t be so easy to take care of.

    Let’s look at some numbers: Goldman is probably on track to earn about $10 billion this year, give or take, which works out to around $18 a share (in their Annus mirabilis of 2007, they made close to $25 a share). Owning Goldman is almost like owning your own ATM—the cash just flies out anytime you want.

    Using some mathematicification we can see that Goldman is going for around nine times earnings, and 1.4 times book value. Is that good buy? The stock is probably cheap but it’s definitely not a good buy. Looks can be deceiving. Sure, the SEC’s case may fall apart and Goldman will zoom back to $200 a share, but there are too many uncertainties to judge if that will happen. One of the most important keys to investing is to avoid any unnecessary risks. I don’t know what the SEC has up its sleeves. The agency is clearly under political pressure and they’ll do whatever they have to validate their existence. Buying Goldman now is a bet I’m not willing to take.

    Being a bank is all about trust. Ultimately, that’s the product you offer your clients. The specifics of the SEC’s case are surprisingly sloppy, but the picture is very stark. Goldman was not fully honest with their clients. This will probably lead to a string or more lawsuits. Until the dust clears, there are many better buys elsewhere.

    Read more market commentary at CrossingWallStreet >

    Join the conversation about this story »

  • Would Financial Regulation Have Stopped Goldman Sachs?

    Democratic legislators in the House and Senate are looking to use the SEC’s fraud suit against Goldman Sachs to inject some adrenaline into the financial regulation debate. Rep. Barney Frank said reform would have stopped Goldman from selling complex securities that were designed to fail and today Sen. Chris Dodd told CBS, “our bill would have prevented that
    kind of events from happening, in my view, and that’s what the public
    needs to know.”

    But is Dodd right? Does the current legislation have anything to do with the allegations that Goldman lied about the contents of a collateralized debt obligation (CDO) to sell investors a product that was designed to fail to enrich another client? Financial regulation probably won’t overhaul fraud law, or outlaw German gullibility. But Douglas Elliott of the Brookings Institution said financial reform would have “absolutely” lowered the probability of Goldman’s alleged fraud for three reasons:

    1. Reform would require ‘skin in the game
    Reform would require financial institutions that package and sell mortgage-backed securities (MBS) to keep at least 5% of the risk of that security. This is known as having ‘skin in the game.’ The idea is that if I’m an investment bank packaging mortgages to create an MBS, I’ll have a greater incentive to monitor the quality of that instrument if its disintegration hurts my bottom line.

    But here’s the catch. Goldman wasn’t making a regular MBS. It was packaging collateral to make a CDO. ‘Skin in the game,’ Elliott says, would affect the original mortage loans that were packaged into MBS instruments, and it’s not clear that Goldman would need to have a position on the CDO they sold to German investors. But the basic story is that reform should make it harder for banks to design securities they suspect to be weak, or even wish to bet against.

    2. Reform would boost transparency
    Reform would have required the CDO to have higher information requirements for investors. It would have been easier for the
    investors to see that Goldman’s CDO wasn’t such a great pool of mortgages, Elliott says. “You cannot eliminate bad investment decisions, and you cannot eliminate
    fraud,” he continued. “But you can reduce the probablility. We want to reduce the
    probability of fraud. There will be people who are stupid or unlucky. But the opacity of these instruments cried out for somebody to
    commit fraud.”

    3. Reform would make rating agencies more afraid
    The CDO that Goldman helped design received the highest rating of AAA from rating agencies, even though it might have been designed to fail. We can’t force the rating agencies to be smarter, but we can scare them into being more careful. Reform might give rating agencies higher legal liability, in which case hosed investors who’ve lost billions on bad AAA-rated bets might have recourse to sue a ratings agency for gross negligence. “It’s pretty
    clear that some of that was due the rating agencies not doing their
    job,” Elliott says. Presumably, higher legal liability might encourage them to be more conservative.

    Update: Bob Litan from Brookings adds his own three cents, and clarifies some of my language in Point 3 above.

    1. On existing law. “First they [the SEC] already have existing law they’re already suing under — some anti-fraud provision. So I’m not sure why you need any additional legislation, or what would make this less likely.”

    2. On his colleague’s first two suggestions: skin-in-the-game and transparency. Litan largely agreed that both skin-in-the-game laws and transparency provisions might lower, but not eliminate, the probability of Goldman’s accused fraud. But he added that “the argument about exchanges and clearinghouses for derivatives making this less likely is a sidebar point” because Goldman’s Abacus CDO was not a derivative and probably wouldn’t go through a clearinghouse.

    3. On scared ratings agencies. “I’m not so sure it makes it easier to sue the ratings agencies, Litan said. If there are provisions in the final bill that increase increase the regulatory oversight of the ratings agencies, that would conceivably make them nervous about signing off on junk. “But this is a big legal constitutional issue. The reason the agencies haven’t been sued up to know is they have legal precedent based in the First Amendment.”





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  • Auto-Owners Moves Up in FORTUNE 500 List for 2010

    Company attributes growth to great customer service and independent agents

    LANSING, Mich., April 19 /CHICAGOPRESSRELEASE.COM/ — Auto-Owners Insurance Company, a multi-line property-casualty and life insurer, moved up 58 spots to No. 418 on the annual FORTUNE 500 list of America’s largest corporations. The new ranking makes Auto-Owners the 16th largest Michigan-based company on the FORTUNE 500 list.

    With $5.017 billion in revenue for 2009, Auto-Owners remained the second largest property-casualty mutual insurance company in the nation. This is the eighth straight year Auto-Owners has appeared in the FORTUNE 500 list.

    “Ascending the ranks as a FORTUNE 500 company is a tribute to the people of Auto-Owners, their commitment to excellence and providing our policyholders with the best customer service in the industry,” said Auto-Owners Insurance Company Chairman & CEO Ron Simon. “The strength and value of our company comes from our associates living up to our core values; from our independent agents and our relationships with them; and from our focus on a safe, sound, secure investment policy.”

    Auto-Owners Insurance Company has earned some of the industry’s highest rankings for its exceptional financial strength and stability. Auto-Owners Insurance Group is one of only 10 groups of insurance companies to be rated A++ by A.M. Best, a nationally recognized rating agency for insurance companies.

    Auto-Owners employs more than 3,600 associates and writes more than 4.9 million policies annually, in 26 states, exclusively through local Independent Agents. Auto-Owners was founded in 1916 and is headquartered in Lansing, Michigan.

    ~ SERVING OUR POLICYHOLDERS AND AGENTS FOR MORE THAN 90 YEARS ~

    WWW.AUTO-OWNERS.COM

    SOURCE Auto-Owners Insurance Company

    http://www.auto-owners.com

    Distributed via Chicago Press Release Services


  • Two Veterans of Company Shown in Wikileaks’ Iraq Video Apologize

    In a message that Iraq Veterans Against the War is helping spread, two soldiers identified as serving with the company in Wikileaks’ Iraq video — the one showing Army close air support firing on Iraqi civilians, including two Reuters journalists – have written an open letter to Iraqis expressing their regret and seeking to make some form of reparation:

    We are both soldiers who occupied your neighborhood for 14 months. Ethan McCord pulled your daughter and son from the van, and when doing so, saw the faces of his own children back home. Josh Stieber was in the same company but was not there that day, though he contributed to the your pain, and the pain of your community on many other occasions.

    There is no bringing back all that was lost. What we seek is to learn from our mistakes and do everything we can to tell others of our experiences and how the people of the United States need to realize we have done and are doing to you and the people of your country. We humbly ask you what we can do to begin to repair the damage we caused.

    Specialists Steiber and McCord continue, “Please accept our apology, our sorrow, our care, and our dedication to change from the inside out. We are doing what we can to speak out against the wars and military policies responsible for what happened to you and your loved ones.” A press statement explaining their letter is here.

  • Review: Differences in Hippocampal Metabolism Between Amnestic and Non-Amnestic MCI Subjects

    The reviewed article is  ‘Differences in hippocampal metabolism between amnestic and non-amnestic MCI subjects: automated FDG-PET image analysis’ by Mariani and colleagues and freely available here at the time of writing. In the abstract, the researchers conclude that

    Comparison between the two MCI subtypes showed MTL hypometabolism in aMCI subjects possibly reflecting the fact that most had prodromal AD

    In the introduction, the researchers outline some of the previous evidence showing a deficit in glucose metabolism in the Medial Temporal Lobe and providing a context for the current study. The aim of the study is clearly described  in the abstract

    The aim of this study was to assess whether 18F-fluorodeoxyglucose positron emission tomogrpaphy differentiates amnestic (aMCI) from single-non-amnestic mild cognitive impairment (snaMCI) with executive dysfunction

    Methodology

    • The study included 30 right-handed MCI subjects who had been referred to the University of Milan neurology department.
    • 85% were referred by the GP
    • 15% were self-referred. The self-referrals are interesting as this might be different from the usual referral routes in other healthcare systems.
    • The diagnostic criteria are clearly stipulated – 6/12 of subjective/objective evidence of cognitive impairment, normal ADL, MMSE >= 24, CDR of 0.5, performance of 1.5 SD below norms on >= 1 cognitive dimension on neuropsychological testing.
    • There was an extensive list of exclusion criteria and here I thought that the subjects might differ significantly from a routine clinical population with MCI e.g Hachinski ischemic score > 4, thyroid disorders, kidney or liver disorders, history of alcohol dependence as well as a number of other criteria.
    • Subjects underwent a battery of neuropsychological investigations.
    • Petersen’s criteria for amnestic MCI were used and those for single non-amnestic MCI are stipulated in the paper.
    • The protocol for PET imaging and analysis of the images was clearly described.
    • PET images were compared to a control group of previously acquired images on 7 subjects

    Results

    • The average age in both MCI groups was roughly 73 years (see paper for exact figures)
    • There were significant differences between the two MCI groups on a number of neuropsychological tests which might be expected. I wasn’t clear on whether there was an adjustment for multiple comparisons
    • 13 aMCI subjects went on to develop dementia
    • Compared to the controls both MCI groups showed hypometabolism in the posterior Cingulate gyrus
    • Compared to the single non-amnestic executive dysfunction MCI group the Amnestic MCI group had hypometabolism in the Medial Temporal Lobe
    • I couldn’t see the data on the control group (I might have just missed this)

    Discussion

    The researchers draw some interesting conclusions. They caution on the small sample size while noting that the posterior cingulate gyrus hypometabolism might be a result of a disconnection from limbic areas since it is not usually affected by Alzheimer’s pathology in the early stages of the disease while also adding that a number of the subjects with aMCI went on to develop AD. They suggest that the executive dysfunction group exhibiting hypometabolism in the PCG might mean that this area is also disconnected with this pathology.

    It will be interesting to see if these findings with the posterior cingulate gyrus are replicated with larger sample sizes as this might suggest a potentially important location for pathology in both executive and amnestic MCI as well as associated pathologies such as Alzheimer’s Disease.

    Acknowledgements

    Public Domain PET image by Jans Langner (see here).

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  • Strength in naughty or nice

    New research from Harvard University suggests that moral actions may increase people’s capacity for willpower and physical endurance. Study participants who did good deeds — or even just imagined themselves helping others — were better able to perform a subsequent task of physical endurance.

    The research, published in the journal Social Psychological and Personality Science, shows a similar or even greater boost in physical strength following mean-spirited deeds.

    Researcher Kurt Gray, a doctoral student in psychology at Harvard, explains these effects as a self-fulfilling prophecy in morality.

    “People perceive those who do good and evil to have more efficacy, more willpower, and less sensitivity to discomfort,” Gray said. “By perceiving themselves as good or evil, people embody these perceptions, actually becoming more capable of physical endurance.”

    Gray’s findings run counter to the notion that only those blessed with heightened willpower or self-control are capable of heroism, suggesting instead that simply attempting heroic deeds can confer personal power.

    “Gandhi or Mother Teresa may not have been born with extraordinary self-control, but perhaps came to possess it through trying to help others,” said Gray, who calls this effect “moral transformation” because it suggests that such deeds have the power to transform people from average to exceptional.

    Moral transformation has many implications, he said. For example, it suggests a new technique for enhancing self-control when dieting: Help others before being faced with temptation.

    “Perhaps the best way to resist the donuts at work is to donate your change in the morning to a worthy cause,” Gray said.

    The study also may suggest new treatments for anxiety or depression, he said, since helping others may be a useful way of regaining control of your own life.

    Gray’s findings are based on two studies. In the first, participants were given $1, and were told either to keep it or to donate it to charity. They were then asked to hold up a 5-lb. weight for as long as they could. Those who donated to charity could hold the weight up for almost 10 seconds longer, on average.

    In a second study, participants held a weight while writing fictional stories of themselves either helping another, harming another, or doing something that had no impact on others. As before, those who thought about doing good were significantly stronger than those whose actions didn’t benefit other people.

    But surprisingly, the would-be malefactors were even stronger than those who envisioned doing good deeds.

    “Whether you’re saintly or nefarious, there seems to be power in moral events,” Gray said. “People often look at others who do great or evil deeds and think, ‘I could never do that,’ or ‘I wouldn’t have the strength to do that.’ But in fact, this research suggests that physical strength may be an effect, not a cause, of moral acts.”

    Gray’s research was supported by the Canadian Social Sciences and Humanities Research Council and the Institute for Humane Studies.

  • The Market Ends Up! Here’s What You Need To Know About What Happened Today (GS, IBM)

    lloydhappy.jpg

    After falling again this morning, stocks retraced and ended up posting solid gains by the close.

    DJIA: Up 73 points to 11,092.

    NASDAQ: Down 1 points to 2480.

    S&P 500: Up 5 points to 1197.

    Commodities:

    • Oil: Down 1.9% or $1.58 to $81.66 a barrel.
    • Gold: Down 0.1% or $2.10 to $1134.80 an ounce.
    • Silver: Up 0.3% or $0.06 to $17.73 an ounce.

    Now here’s what you need to know as you leave work today:

    • Goldman Sachs have released their defense, and it looks strong enough to parry away many of the doubts that emerged with the SEC’s charges. Goldman Sachs stock is rising as the day comes to a close.
    • The likelihood that this was a politically motivated move by the SEC is increasing as it became public knowledge that the vote on the case was partisan, with three Democrats voting for the case and the other two members voting against
    • The volcano ash crisis seems to be abating with several companies and countries set to start flying again tomorrow. London airspace is set to reopen tomorrow morning.
    • General Motors is moving ahead of schedule to repay $4.7 billion in loans from the U.S. government. GM plans to make this repayment ahead of the June deadline.
    • IBM reports after the bell today. The company is expected to have earnings of $1.93 per share in the first quarter.

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