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When I take a potato masher out of the kitchen drawer, my dog hardly pays attention. But when I reach in and take out the cheese grater, she suddenly becomes my best friend. After I started in this business in the mid-80’s, an experienced loan agent pulled me aside and said, “When I look at a loan file or talk to a borrower, I know in less than a minute whether or not it is a ‘do-able’ deal.” Experienced agents have told me that this is no longer the case, given the automatic underwriting procedures, the changed guidelines, the compliance issues, etc. As you can guess, a small percentage of experienced agents have moved back into “private money”, “make sense” lending, since this is where their comfort level is.

There appear to be three big components at play with volumes for lenders: rates, equity, and underwriting. Rate-wise we’re above the lows, but still very good. I hear few folks complaining about rates, but they certainly have not helped spur business in recent weeks. For equity, unless property values stabilize, and/or move higher, many folks who had equity in their property already refinanced; those that didn’t refi because of values haven’t seen enough of a rise to do so now. And is anyone loosening up their guidelines or their documentation? It would be news to me… One agent wrote to me and said, “Basically there is a reason someone didn’t refi last year, and those that didn’t probably can’t do it now.” So we’re left with a purchase business. Fannie & Freddie and large investors feel this year’s market will be about 50-60% of last year’s, and companies are already seeing it. Established companies are adding agents, branches, and perhaps moving into new areas. Others are cutting loose agents, consolidating branches, and in some cases retrenching. What an interesting business.

What are experienced mortgage companies doing right now to help themselves? Name a solid company that hasn’t established clear rate lock policies and controls managed by a centralized lock desk. What good does it do anyone to have old, expired loans in your pipeline? And have good measurement devices: a complete set of management reports to measure profitability, risks, the cost to originate a loan, calculate your gain on sale margin by product, commissions, old loans and/or loans closed and not shipped or purchased after a set period of time. You’ve heard it all before, right?

Lots of mortgage companies made large profits last year – some would say that it balanced out the money lost in 2008. But do they expect to make more money in 2010 on lower volumes? Management shouldn’t assume that a decline in profitability is the result of decreased origination volume – what if volume drops 10% but profits are down 25%? Gain on sale margins may have slipped for whatever reason – overtime, a few bad loans, pricing decisions to maintain market share, etc. And watch those utility bills: I was walking by a mortgage co-worker’s desk the other day, and noticed that she had plugged her power strip back into itself to save electricity! That’s sacrifice! (Yes – blonde.)

At least rates are cooperating, and last week long-term interest rates declined. Mortgage rates have retreated to the low 5.00% range, and our economy is still “fragile”. Inflation is not an issue and the consumer spending still is relatively slow. Maybe everyone is waiting for 3D televisions!

more news on MBAA application volume, FHA guideline changes, Waren Buffett on bank tax, economy, rates, market, and joke of the day … <<< CLICK HERE TO CONTINUE

Wed, Jan 20 07:32 PM

Kraft Foods Inc and Cadbury Plc saw their credit ratings slashed by ratings agency Fitch to the lowest investment grade after Kraft won Cadbury’s backing for its $19.6 billion takeover bid.

Fitch said on Wednesday it had downgraded its issuer default rating on both companies one notch to BBB-.

Late Tuesday, rival ratings agency Moody’s said Kraft’s credit ratings would likely remain investment grade following the deal, but were under review for a possible downgrade.

Separately Standard & Poors said it would keep an A- long-term corporate credit on Kraft, creditwatch negative, and a BBB rating on Cadbury, creditwatch with “developing implications”.

In a statement Fitch said its downgrades “reflect the anticipated increase in financial leverage of the combined Kraft/Cadbury”.

The deal will result in Kraft paying 500 pence in cash plus 0.1874 of a new Kraft share for each Cadbury share. The cash portion of around $11.2 billion will be financed with debt.

Fitch said it expected the combined company’s leverage to reduce to around 3 or 3.5 times EBITDA from 4 times within two years, through growth of earnings and repayment of debt through free cash flow.

“This level is considered commensurate with the ‘BBB-‘ rating,” it said.

At 1232 GMT, shares in Cadbury were little changed at 836-1/2 pence, slightly outperforming a weaker FTSE 100, while Kraft shares traded in Frankfurt were up 1.2 percent at 20.6 euros.

(Editing by Hans Peters and David Holmes)

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Recently it’s become pretty clear that Apple and Google have taken the cozy relationship they had established over the past decade to frenemy status. Google’s Android operating system fueled a new army of smartphone competitors that stole some market share from Apple’s iPhone. In fact, more recently, Google unveiled a mobile device of its own, the Nexus One. Apple also spurred Google by rejecting its Google Voice application for the iPhone. The two former allies are becoming competitors. The most recent evidence of this? Apple may drop Google as the iPhone’s default search engine and replace it with Microsoft’s Bing search.

Bloomberg reports on the development:

Apple Inc. is in talks with Microsoft Corp. to replace Google Inc. as the default search engine on the iPhone, according to two people familiar with the matter.

The talks have been under way for weeks, said the people, who asked not to be identified because the details aren’t public. The negotiations may not be concluded quickly and might still fall apart, the people said.

Interestingly, this article only mentions the iPhone as where Apple would replace Google as default search engine, but doesn’t mention its plans regarding its other devices that run its Safari web browser. If it changes Google as Safari’s default search as well, then that could have an even greater impact on Google. Though, it’s a little unclear why this wouldn’t be Apple’s next step, if it decides to go the Bing route on the iPhone.

Whether Apple ultimately decides to replace Google’s search as the default on its iPhones or not, the report that it’s considering doing so is quite significant. The idea that Apple would even humor becoming a partner with arch-rival Microsoft shows just how big a threat it must view Google as. After all, these days Google is the Microsoft of the 1990s, and Apple must realize that.

And it’s not only Google’s search in Apple’s crosshairs. The article also says:

Apple is also working on ways to manage ads displayed on its mobile devices, a move that would challenge Google’s advertising business, one of the people said.

Apple’s smart to be taking these steps. It continues to try to find additional sources of revenue, and managing ads displayed is just another. While Google isn’t necessarily shaking in its boots over this news, it certainly can’t be pleased. But then, it sort of did move first by challenging Apple’s smartphone dominance.

Jake Rosholt was blindsided in November when he was released by the UFC after a loss at UFC 106 to Kendall Grove. A three-time NCAA wrestling champ at Oklahoma State is short on experience and suffered two losses with the promotion via submission. With six weeks to think, Rosholt is cool with the demotion and has things in perspective. He knows he needs to work on all facets of his game and wants to get in four fights this year. Rosholt is still part of Team Takedown at Cobra Kai in Las Vegas along with fellow Oklahoma State wrestling legends Johny Hendricks and Shane Roller. He’s getting to work on his jiu-jitsu against black belt Vinny Magalhaes and for striking and grappling 6-foot-3, 240-lb. Forrest Griffin isn’t a bad choice.

Rosholt has also become a prolific tweeter. And little of the dialogue has to do with his diet or training. Cagewriter touched on all topics @jakerosholt.

• keyboard warriors
• dead bobcats
• candles
• the need for a gps
• getting scammed on Ebay

Stocks are way down this morning. Blame China, Coakley, or your morning coffee man if you must.

Currently, the Dow is down 161 points, the NASDAQ down 40 and the S&P down 16. It’s looking like a bloodbath so far.

And it’s not just equities. Oil is down 2.35% to $77.16 a barrel.

Metals are taking a hit too, with silver down 3% to $18.23/ounce and gold down 2.4% at $1112.50/ounce.

Join the conversation about this story »

See Also:

• Investors Rushed Back Into U.S. Equity ETFs In December
• US Stocks Surge Back Toward Bubble Territory
• Goldman: World Markets Teetering At Post Crisis Highs, All Betting On China

Italian motorcycle clothing specialist Dainese recently announced it is planning to move production to North Africa by closing down its plant in Italy, resulting in a loss of 200 jobs. The decision came after Dainese reported its sales were down over 25 per cent in 2009.

The company, who also owns Mavet and AGV helmets, is moving their plant in Molvena, Italy across the Mediterranean Sea in Tunisia, where the company already has two production plants.

According to visordowne.com, the exist… (read more)

We’re looking to hire a sales and support executive. Must be UK- or Europe-based (with native English).  You can read more and apply here. If you know someone who would make a good match, we’d be grateful if you could forward this along.

The New York Times confirmed today that beginning in early 2011 the company will adopt a paid model for its Web site, NYTimes.com. The move comes at a time when much of the newspaper industry is searching for a way to stop the bleeding brought on by the Internet and the accompanying smaller revenue streams that online advertising produces.

Many fear that putting content behind a paywall will just drive readers to other sources, but perhaps the Times’ approach will help to combat that issue.

Sponsor

The company will adopt a different approach from the most famous example of a paywall, the Wall Street Journal, which offers just a paragraph or two for free while hiding the rest of the content for subscribers only. The Times will use what it is calling a “metered model”, which will allow users to gain free access to a yet undetermined number of articles per month before a subscription is required.

The announcement is light on details of the actual plan, such as the number of free articles, how much the subscription will cost or precisely how it will work, but one thing is for sure – New York Times readers are going to have to pay to play. The company’s press release does tell us, however, that subscribers to the print edition will continue have access to the online edition.

Notably, the Times’ model intends to “provide the necessary flexibility to keep an appropriate ratio between free and paid content and stay connected to a search-driven Web,” according to the release. Acknowledging the nature of the Web, while trying to retain a profit, and hopefully keep paying hard-working journalists, sounds like a good method to us.

The move is something we’ve all seen coming, as more and more newspapers have shut down in recent years. By mid-2009, more than 100 newspapers had been shuttered with a number stopping the presses and going online-only in an attempt to remain in production.

As with most things of this nature, only time will tell if this new model will work. What do you think?

To read more ReadWriteWeb coverage of newspapers’ struggle in the 21st century, check out our Newspapers and Journalism archive.

Disclosure: ReadWriteWeb is a syndication partner of the New York Times.

Discuss

By FT Reporters

Published: January 20 2010 15:32 | Last updated: January 20 2010 15:32

CNBC VIDEO: Becky Quick One-On-One with Warren Buffett -21/01/10

Warren Buffett, the billionaire investor who is the largest shareholder in Kraft, on Wednesday criticised the US food group’s £11.6bn agreement to buy Cadbury as “a bad deal”.

Mr Buffett told CNBC, the US business television network, that he had “a lot of doubts” over the Cadbury purchase. He said he would have voted against the deal had Kraft sought shareholder approval.

Kraft investors will not have the chance to vote on the deal, which involves the US group issuing 265m new shares, equivalent to about 18 per cent of its existing share capital, because that is below the 20 per cent level at which shareholder approval is required.

Mr Buffett, who holds more than 9 per cent of Kraft, said the company was worth more than its current stock price – down 2 per cent at $28.72 in early Wall Street trading on Wednesday – and that its use of stock in the Cadbury deal was “very expensive currency”.

However, the legendary investor – known as the Sage of Omaha – dismissed a suggestion that he sell his Kraft stake to show his unhappiness with the Cadbury deal. He described Irene Rosenfeld, Kraft chief executive, as a ”good operator” and a ”good person”, adding that has ”cordial relations” with her despite their ”difference of opinion”.

Mr Buffett had earlier this month called on Kraft investors to oppose Kraft’s plan to issue as many as 370m shares to fund its hostile takeover of Cadbury.

In the event, Kraft avoided such a large share issue by agreeing to sell its pizza business to Nestlé of Switzerland for $3.7bn to help fund its cash-and-stock bid for Cadbury. But Mr Buffett also questioned that deal, saying it had been done in “an enormously tax-inefficient way”.

Ms Rosenfeld on Tuesday said the Cadbury deal would “transform our portfolio and accelerate long-term growth from 4 per cent to 5 per cent.” It would also help Kraft increase its long-term earnings per share growth from the 7-9 per cent range to the 9-11 per cent range, she said.

The US food group finally secured Cadbury’s backing for its hostile approach on Tuesday after raising its offer to 850p a share, ending five months of hostile relations after Kraft made an unsolicited bid in late August. The combined company would rank alongside privately-held Mars as one of the world’s biggest confectionery groups.

Separately, Fitch, the credit ratings agency, on Wednesday downgraded Kraft by one notch to BBB minus, the lowest investment grade, citing “the anticipated increase in financial leverage of the combined Kraft/Cadbury”.

Rival agency Standard & Poor’s had earlier said it was maintaining Kraft’s rating at A-minus but was keeping it on on Creditwatch Negative, holding out the possibility of a cut. Moody’s said it was likely to keep Kraft at investment grade, but the rating was under review for possible downgrade.

The Cadbury deal will push Kraft’s debt pile from $20bn to more than $30bn once it has taken on $9.5bn of debt to fund the cash portion of the offer and assumed more than $3bn in Cadbury debt.

Ms Rosenfeld said on Tuesday that she did not expect Kraft to be downgraded, given that the expected strong cash flow from the combined businesses would lower its leverage ratio to three times within 18-24 months.

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In two months, BMW will show a concept version of its hybrid 5-Series at the 2010 Geneva Motor Show. The production version, which will be known as the BMW ActiveHybrid 5, could surprise many when it comes to performance and fuel-economy.

When it hits markets at the end of this year or early next year, the ActiveHybrid 5 will use the ActiveHybrid 7’s mild hybrid system with an electric motor sandwiched between a 4.4L twin-turbo V8 and an 8-speed automatic transmission. A lithium-ion battery pack will sit in the trunk.

No performance figures are really known yet, but to give you a slight idea – the ActiveHybrid 7 goes from 0-60 mph in 4.8 seconds – faster than the 750i. It also manages to boost fuel-efficiency by 15 percent over the 750i.

No word on pricing either but sources say that a ActiveHybrid model could cost an extra $7,500.

2011 BMW 5-Series:

– By: Omar Rana

In the 1960’s, Man imagined maid robots like Rosie efficiently coasting around the house in a menopausal whir. In 2010, we get Mahru-Z—the world’s most advanced autonomous butler. And you wonder why we watch so much television.

Now, I don’t want to say that the world’s robotocists have let me down, but it shouldn’t take 10 minutes and 2 bipeds to make me a piece of toast. Get me the creative team behind Pee Wee’s Playhouse—he had a breakfast contraption that, in hindsight, may have been a better use for our R&D budget. [KoreaTimes via Robots via CrunchGear]

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Training Divers to Fight Undersea Perils

USING a special dry-land pressure tank, Navy officials have perfected a method of training deep-sea divers to combat perils hundreds of feet beneath the surface of the sea.

YOUNG men who wish to become deep-sea divers can learn the fine points of the profession without getting any closer to the ocean than Washington, D. C, thanks to scientists who have developed a system of pressure-tank training which enables divers to stand on the bottom of a tank twelve feet deep and experience exactly the same pressure and temperature conditions that obtain in the ocean at depths of 200 to 300 feet. Deep-sea diving is a profession which demands a sturdy body, a steady nerve and clear judgment, but for young men who wish to choose a life work which holds forth promise of adventure, diving offers thrills second to none.

At Washington navy yard, a diving school whose personnel includes 25 enlisted men and 6 officers is now in session. Tyros are converted into skilled divers in the short period of six months. Furthermore, these newly trained divers understand thoroughly the perils that they must encounter under the surface sooner or later, and they are taught just how to protect themselves when danger threatens.

The green divers of the U. S. Navy descend to depths of 150 to 200 feet or more in a tank only 12 feet high and 8 feet in diameter, containing some 8,000 gallons of water. By the use of compressed air, underwater conditions are simulated in this tank. Beginners master diving secrets in the tank without danger to life and limb such as they would experience if “learning their trade” in salt water. Such menaces as the octopus, deep-sea monsters and other marine menaces are eliminated from this training school program.

One former impediment was the extreme difficulty of breathing satisfactorily for long intervals at points far below the surface. Experiments with the diving chamber have resulted in the perfection of new combinations of synthetic atmosphere. Helium gas has been introduced most successfully in these mixtures. As a result, Chief Gunner W. F. Loughman has made a successful descent to a point 306 feet below the ocean surface—and remained there 20 minutes. In another test, this same diver performed important salvage work on a sunken ship at a depth of 265 feet.

In the experimental tank at Washington, one expert diver working under simulated sea conditions has attained a depth of 355 feet and has remained there for one-half a minute. This is the deepest dive ever made. The pressure to which this daring diver was exposed was stupendous—sufficient to crush to atoms some of the strongest buildings built by man.

An additional atmosphere of pressure equivalent to 14.7 pounds per square inch developed in the diving tank by compressed air control exerts similar pressure on the diver as though he had descended another 33 feet. In raising the trainees to the surface of the tank after their experimental dives, care is exercised in gradually decreasing the pressure as where this is done hurriedly, caisson sickness is liable to develop.

If you are familiar with the precarious occupation of the professional diver, you have, unquestionably, heard about men who have suffered from “bends” or caisson sickness. The extreme pressures of deep sea diving, if reduced abruptly, leave bubbles of nitrogen in the blood vessels, tissues and body fluids. If these bubbles penetrate to the spinal cord or brain, death or paralysis generally results. The associates of the deep sea divers are extremely cautious in raising their mates from the vicinity of the ocean floor after deep descents.

However, when the sea is rough and the waves are “bumpy,” there is a liability that the diver may suffer severe ear injury or total loss of hearing. Helium gas is particularly important in such “decompression” for it is inert and absorbs the nitrogen bubbles readily.

Science has perfected the efficient decompression chamber known popularly as the “iron doctor” among the diving fraternity. This is a large cylinder of iron and steel with two compartments and various control doors and gauges in which the divers who suffer caisson sickness are treated in order to eliminate the nitrogen bubbles from their systems. Pressure is artificially applied within the tank to simulate the gradually diminishing pressure of a slow ascent to the surface.

During the era not so long ago when 200 foot dives were championship feats, the mill-run of divers customarily suffered nausea attacks in one dive out of ten. The provision of better equipment, the use of helium gas in the airlines and similar precautions have reduced this record to one case of illness in 50 dives. The experimental research and standardized training for naval divers fostered by Uncle Sam promises to further curtail this form of diving illness. Potentially, it may even be stamped permanently from the deep sea diving picture.

The U. S. Navy will train 62 men and officers annually for deep diving and subsequently will station them at strategic points along the coast. They will be ready constantly for emergency calls—to aid in the salvage of sunken ships and submarines and the succor of those endangered in such wrecks. They will also be available for routine underwater service at naval stations and in the repair and maintenance of our national fleet. Special boats used by these divers will be equipped with the all-important decompression chambers and other demonstrated accessories of comparable utility. The use of synthetic atmosphere in this decompression chamber reduces the treatment period from one-fourth to one-third over the time required where ordinary air is used. Furthermore, the use of helium gas in the diving airlines has practically doubled the time in which the divers can remain at work in the salt sea at perilous depths.

Whenever a group of naval divers are commissioned to aid in the salvage of a sunken ship, each man aspires to find and bring to the surface the signal bell of the waterlogged craft. It is the badge of honor —the coveted prize which proves the superiority of its discoverer over his mates. The rivalry is friendly and results in submarine sport and byplay which lends spice to arduous and hazardous labor at the bottom of the sea.

The diver must be expert in various repair activities such as the adjustment of marine machinery, electric torch work and related tasks. Even though skilled highly in such work, his efforts are hampered when buried under a blanket of salt water 150 to 200 feet deep so that his efficiency is only one-sixth of what it would be on land. The U. S. Navy through its remarkable instruction courses seeks to make the average diver more proficient than formerly and to educate him so that he will be qualified to make good in every emergency.

Five compressors whose individual capacity ranges from 50 to 75 cubic feet of air per minute are installed at the Washington Navy Yard.

Midget Dirigible Tests Novel AIRSHIP GIRDERS

BUILT as a test ship to try out new features of airship design, the baby blimp Puritan embodies many new ideas in construction which will be used on giant Zeppelins of the future. The Puritan, photographs of which are shown above, is the first dirigible constructed by the Goodyear-Zeppelin Corporation of Akron, Ohio.

Duraluminum girders with circular openings instead of the usual triangular ones are used in the Puritan. The new design gives great strength with extreme lightness. A vertical rudder on top of the bag, and oppositely geared propellers, give the midget airship greater stability than is usually found in craft of this type.

Pullman Cars Go Modernistic

COMFORTABLE modernistic furniture and indirect lighting for night reading purposes are features of the new steel and aluminum alloy Pullman observation cars. A buffet containing a broiler, coffee urn, and a refrigerator is also featured.

An observation parlor seating six persons is located at the rear round-end of the car, and a lounge seating 20 persons on sofas and seats occupies the remaining car space.

Part of TiVo’s survival strategy, with miserable subscriber numbers, is to make everybody pay for DVR patents—winning Echostar was just the beginning. Microsoft, whose Mediaroom software powers AT&T’s U-Verse, said eff that, and just sued Tivo.

TiVo sued AT&T, alleging that its U-Verse IPTV service violates three of their DVR patents. Since it’s Microsoft’s software TiVo’s talking about, Microsoft asked to jump into the case on Jan. 15, and is now suing TiVo over two patents relating to a system that programmable info, and a secure method for buying video content. Basically, what’ll happen here is that Microsoft will agree to drop their suit if TiVo drops theirs, and maybe a few coins will change hands, but everybody will go home mostly unscathed. Well, probably, anyway. [Bloomberg, ZatzNotFunny]

By Zarina Geloo LUSAKA, Jan 20 (IPS) Charity Mwansa, a former minister and member of parliament, knows just exactly what being one of the very few female politicians in Zambia means. When she left politics it had nothing to with not being able to do the work and instead had everything to do with the mad world of male-dominated politics.

"It was too hectic, tiring and one needs a lot of stamina to be in the rough and tumble of politics. You do not deal with normality, there is a bit of madness."

Mwansa, who cites the adage "if you can’t stand the heat, get out of the kitchen", is just another woman who has declined to participate in the country’s next elections. She says that having to constantly watch her back; putting out fires where other people created problems for her; and just having to be alert of plotting against her 24/7 became a bit too much.

"It’s what politics is about, it’s not for the faint hearted. That’s why I want to rest for now."

A lawyer, Mwansa says that the political terrain in Zambia is still uneven for women.

While the rest of the SADC region increases the number of women in governance, Zambia, which goes to the polls in 2011, is likely to see a further reduction of the number of females in decision making. This, women in politics say, is because the male dominated political terrain has not changed.

Currently, there are 24 members of parliament (MPs) out of a total 150. In cabinet there are five female ministers out of a total of 21. There are only six are women deputy ministers out of a total of 20.

Ironically, women constitute half of the voting population, and yet, they accounted for less than 15 percent as candidates and elected officials in Parliament and Local Government institutions, according to the Zambia National Women’s Lobby (ZNWL) analysis of the last elections in 2006.

ZNWL is working to get more women to contest the next elections in 2011. But the party’s board secretary, Tamala Kambikambi, told IPS she would be very surprised if there was an increase in women making it into parliament and local government in the next elections.

"There are fewer and fewer women getting elected and even contesting positions at each election."

Kambikambi said while patriarchal attitudes, negative traditions and customs that did not recognise women as equal partners with men were responsible for the low participation of women in governance.

Political party structures did not promote women’s participation as leadership positions were usually reserved for men. None of the parties had changed their processes on how candidates got chosen to run for a constituency to make it accessible for women. It was still the male dominated national executive committees that choose candidates.

"Despite their pronouncements about promoting women’s participation at all levels of decision making, none of the political parties come close to achieving the minimum SADC recommendation threshold of 30 percent women in decision making positions," Kambikambi said.

She recommends the adoption of a clear national policy that would be backed by a legal framework to guide political parties on adoption of candidates to ensure women are not disadvantaged and only used as foot soldiers whenever political parties feel like doing so.

However, Given Lubinda an MP and senior member of the UPND says complaints about how parties adopt candidates are ‘nonsense’. "Everyone, men and women vote for people to serve committees including the adoption committees. The women are there voting with us, so how can someone complain about male domination?"

Zambia has four main political parties, the ruling Movement for Multi Party Democracy (MMD) and three opposition parties, the Forum for Democracy and Development (FDD) the only party to have an elected female president, the Patriotic Front (PF) and the United Party for National Development (UPND).

Elizabeth Chitika, an MP who has served as a cabinet minister in government, argues that the problems for women begin at the very level Lubinda describes.

"Everything is run by men who hold meetings and caucuses amongst themselves about who gets elected to which committees. It’s not true to say women are not visible, they are just ignored."

She warns that she will stand as an independent candidate if her party does not adopt her in the 2011 elections.

"Parties say they chose the best candidate, but we see situations where a woman is the better candidate but a man is chosen, sometimes at the last minute, after the woman has done all the ground work for the party to be accepted in that area," says Chitika.

Edith Nawakwi president of FDD knows all about gender discrimination. She won a hard fight against powerful men to become president of the party.

She agrees that it is difficult for women to get adopted as candidates especially since Zambia still practices the first past the post system of voting. But rather than harp on the challenges, women should knuckle down and get to work.

"Women should go to their parties with something on the table. They must give evidence of their popularity which means they must canvass amongst their constituency and get their buy-in. If they create a name for themselves; no party can afford to ignore them."

Nawakwi is now weathering criticism from some of her party members who say she cannot win them the presidency and are calling for her to step down. Her critics say she spends more time "being a wife" to her polygamous husband than being a leader of a political party that wants to form the next government.

Nawakwi shrugs this off saying it is the ‘usual nonsense’ of bringing in gender whenever unenlightened men feel threatened by a woman.

"I am accustomed to breaking gender barriers. I was elected by the party at a convention that was dominated by men so my gender cannot be an issue now. It’s a new phenomenon to have a female presidential candidate, so it’s not surprising that there is some nervousness. But I have told them to keep calm and watch me."

Where the ZNWL has identified low education levels and poor economic status as some of the barriers for women’s election campaigns, Nawakwi told IPS she does not suffer those handicaps.

Of all the presidential candidates, she is the most educated (her Economics and Energy degrees are from the Imperial college of London) she is also the most experienced politician having spent over 15 years in various government portfolios, being the first female finance minister in Zambia and in the SADC region. She is also wealthy in her own right.

"If you want to do a check list, you will find I am the most qualified candidate around."

But others do not have the same confidence. Business woman Angelica Rumsey has been courted by the ZNWL to stand in her home village in the northern part of Zambia. She has declined saying her experience in politics were disillusioning.

"There were lies being peddled about me. While I was discussing issues of development my opponents were attacking my personal character. I saw so much corruption and dirty games during the campaigns that left me disgusted. I would have had to stoop to the level of my opponents if I wanted to win a seat and I could not do that, Rumsey says of her campaign for a parliamentary seat in the 2006 elections.

Another reason she is reluctant to run for elections is that campaigns are expensive. Men are able to take risks and borrow from banks and other lending institutions, women are reluctant to undertake such risky ventures and in any case, they are not giving that opportunity, Rumsy told IPS.

"For women who have been in parliament before it is a little easier for them to retain their seats because they will have gotten their gratuities and other monies, that they can use, but for us that are trying to get in, we have to find money for campaigns and that is not easy."

Zambia has signed and ratified a number of agreements that promote women’s rights. However, there has been a lack of political will to implement and adhere to these agreements and have them domesticated into national laws, Mwawnsa says.

Mwansa hopes that the 2011 elections will provide a fresh break from the discriminatory election system, and more women will participate, but like Kambikambi she is not hopeful that this will happen.