0720
Despite rule changes, fighting in NHL is on the rise
By Dave Caldwell
Thursday, December 25, 2008
Mitch Fritz is a 28-year-old left wing from Osoyoos, British Columbia, who stands 6 feet 8 inches and weighs 258 pounds. He has a goatee, and the knuckles on his left hand are often covered with dark scabs. He is not with the Islanders because he can score.
In his second NHL game, on Nov. 1, Fritz picked a fight with Montreal's Georges Laraque, one of the league's most fearsome enforcers. By all accounts, Fritz held his own. He has been in three fights since, keeping a spot on the roster.
He does not play much, but Fritz considers his presence a sign of an NHL trend. The number of fights is up by about 15 percent over last season and by 75 percent over three years ago, meaning that players who can fight have become more valuable.
"I don't follow it, I don't dissect it, but I don't mind when it's up," said Fritz, an otherwise mild-mannered man who won the Man of the Year award from the American Hockey League three years ago. "It might mean more work for me down the road."
Fighting has been an accepted part of hockey for generations. With few exceptions, every team has at least one player who can fight. Two enforcers battle, often briefly, to defuse the emotion generated by a tight, physical game, or to create some emotion.
The NHL does not include a fight card in its daily packet of statistics, but Web sites like hockey-fights.com keep track, and the site has logged 351 fights this season, up from 308 through the same time last season.
Fights, labeled as such when at least one of the players involved receives a five-minute major penalty, have increased each year since the 2004-5 lockout. Through Dec. 23, 2005, there were 201 fights; through Dec. 23, 2006, there were 220.
"It seems like it's coming full circle again," said Jason Travers, a St. Louis Blues fan who in 1995 created hockey-fights.com, which unapologetically lists fights (often adding blow-by-blow descriptions) and includes videos of the better battles.
Through Dec. 23, 2003, in the season before the lockout, the site listed 341 fights. That was before the NHL instituted a series of rules changes intended to crack down on late-game brawls, and on clutching and grabbing so the league's premier players would have more room to score.
Colin Campbell, the NHL's director of hockey operations, said that stick fouls like cross-checking and slashing were down substantially. But he acknowledged that fighting had increased, and, like many others in hockey, he has a few theories.
First, Campbell said, fighting — and rough stuff in general — is less prevalent than when he played in the NHL from the mid-1970s to the mid-80s. (He remembers coating his hair with Vaseline before games so that opponents would not be able to pull it during a scrum.)
Those were the days when two-man fights often became donnybrooks, and hardly anyone said no when challenged to a fight. Many enforcers could barely skate, let alone score. Players are more versatile now, and they became a tighter fraternity during the lockout.
"Coming out of the lockout," Campbell said, "I don't know if there was a lot of animosity."
Meaning that there is more animosity now than there was three years ago.
When told what Campbell had said, Boston Bruins forward Shawn Thornton, who was in his 10th fight of the season on Tuesday against the Devils, smiled and replied: "It's a theory. But I'd fight my sister if it came down to it. I'm friends with some of the guys I throw the gloves down with. If I start thinking who's on the other side, then I'm not playing the way I can."
Mike Rupp, the Devils forward who fought with Thornton, said: "After the lockout, they opened up the game more. Maybe the game's faster, so there are bigger hits. With speed picking up, guys are laying hits on the skill players from the other teams."
That means there has sometimes been a need to even the score, which is when fights tend to break out. Thornton picked a fight in the second period with Rupp after Rupp delivered crushing (but legal) checks on Boston's Dennis Wideman and Vladimir Sobotka.
Campbell said he understood why that happened — "It's considered a safety valve," he said of fighting in general — but he said he did not think it was necessary for an enforcer to even the score when clean checks later in the game could deliver the same message.
"Take a good hit, get the license plate number and wait to get the other player back," Campbell said.
Establishing a physical presence works for some teams, even in today's NHL With the blessing of Brian Burke, then the general manager, the 2006-7 Anaheim Ducks amassed 71 fighting majors, far and away the most in the league. They went on to win the Stanley Cup. Burke has moved to Toronto, but Anaheim, which has an 18-14-3 record, has already been in 40 fights this season, sharing the league lead with the Vancouver Canucks.
Some teams do not feel the need to drop the gloves, most notably the Detroit Red Wings, who won the Stanley Cup last season for the 11th time despite being in only 21 fights. (They have been in only seven this season, a league low.)
"I just don't think that's part of our game plan," goaltender Ty Conklin, in his first year with the Red Wings, said recently in a conference call with reporters. "You know, there are some teams that you know they feel that they get an advantage if they can intimidate the other team, and we just don't have guys like that. The guys are not intimidated out there."
Generally, one fight does not lead to another, although Andre Deveaux of Toronto and Krys Barch of Dallas were in two fights in their game Tuesday and were thrown out of the game.
"Lots of times, the fights don't mean anything," said Washington Capitals forward Donald Brashear, 36, who is considered one of the most ferocious tough guys in hockey history. "Guys just fight for fun, for pride. That's about it."
Quite often, only a few punches are thrown before the fighters grapple and fall to the ice in a heap. Even with those few punches, though, they will probably be slamming their fists into the other player's helmet.
"I'd rather have scars on my knuckles than my face," Thornton said.
The knuckles on Thornton's right hand — his "throwing" hand, as the fight fans like to call it — are covered with scabs. He considers it an occupational hazard. He knows what the Bruins expect him to do, and he is doing it.
Bread of life, baked in Rhode Island
By Katie Zezima
Thursday, December 25, 2008
GREENVILLE, Rhode Island: To the Cavanagh family, the product they make at a nondescript plant here is just bread and water. But to millions at churches around the world, it is a sacred offering.
From a purely economic point of view, it is something that is almost just as rare: a seemingly recession-proof business.
With the exception of a decline during recent Catholic Church priest scandals, the Cavanagh Company's business of making communion bread has been growing steadily for the last 65 years.
The bread is used as a sacramental offering that, for Catholics and some other Christians, represents the breaking of the bread at the Last Supper and the body of Christ.
The family-owned company makes about 80 percent of the communion bread used by the Catholic, Episcopal, Lutheran and Southern Baptist churches in the United States. It has a similar market share in Australia, Canada and Britain, and is now looking to expand to West Africa.
"We feel as though we're a bakery, and all we're making is bread," said Andy Cavanagh, the company's general manager, and part of the fourth generation of Cavanaghs to work here. "It's not that we don't have respect for what happens to it, but that transformation is out of our hands and takes place in a church. The best thing we can do is make sure the bread is perfect in every way possible."
Some customers say the Cavanaghs have such a big market share because their product is about as close to perfect as earthly possible.
"It doesn't crumb, and I don't like fragments of our Lord scattering all over the floor," said the Rev. Bob Dietel, an Episcopal priest.
Dietel uses Cavanagh altar bread at his parish, St. Aidan's, in Camano Island, Washington State He likes that the large wafer, which he holds up and breaks during Mass, cracks cleanly.
A few years ago, the congregation switched to the wheat wafer the Cavanaghs make from the white.
"There's a nice clean bread flavor, as opposed to the paste flavor you have with some other breads," Dietel said.
His congregation buys about 6,000 wafers a year from a Seattle religious goods store. Traditionally, nuns, priests or members of a congregation baked altar bread. (In the Catholic tradition it is unleavened and contains only flour and water; other denominations, including Southern Baptists, allow the use of additional ingredients.)
In 1943, Andy's great-grandfather, John Cavanagh Sr., an inventor, and grandfather, John Jr., were asked to help local Catholic nuns renovate their antiquated baking equipment. The men created new ovens and mixers for the nuns; then three years later, John Jr. and his brother Paul started making bread themselves.
They distributed all of it to Catholic churches and monasteries.
The Cavanaghs are Catholic and John Sr. let his sons run the business so he could concentrate on his first love, liturgical art. Crosses and paintings are showcased in a room in the Rhode Island offices.
For about 20 years, the Cavanagh bread was small, white and nearly transparent, intended to melt on the tongue. After the changes initiated in the church at the Second Vatican Council in the 1960s, Catholic churches wanted the wafers to be thicker and chewable, like real bread.
The Cavanaghs started producing the wafers of today — usually whole wheat and sealed on the outside to prevent crumbs.
In 1970, Paul's sons Brian and Peter joined the business and started expanding the company's reach beyond New England and the Catholic Church, where fewer and fewer nuns were making bread.
The company will not disclose sales numbers, but says it makes about 850 million wafers each year, and that each wafer sells for less than a penny. Most of the company's bread is sold wholesale to religious supply stores and Southern Baptist bookstores. In the Catholic Church the company sells to monasteries; the nuns then sell the bread to churches.
"It's a source of income for us, but at the same time it's a service to the parishes in the diocese," said Sister Marilyn McGillan of the Sisters of the Precious Blood in Watertown, New York Her monastery sells to about 100 churches in the Catholic Diocese of Ogdensburg, New York "We're like a clearinghouse for altar breads for our dioceses."
There are plenty of varieties. The company sells both white and wheat flour wafers, in sizes ranging from one and one-eighth inches wide to nine inches wide. Some are double-thick, and all except the large ones can be embossed with designs including a cross or a lamb.
'They're the classic symbols of Christianity," Andy Cavanagh said.
Brian and Peter Cavanagh still run the company, and expect Andy, 30, Peter's son; and his two brothers, Dan, 31 and Luke, 28, to buy them out one day.
The family members pride themselves on having never had an argument over business. They eat lunch together daily, and business talk almost always turns into discussions about New England sports teams.
"When you emphasize family, the business falls into place," Brian said.
Each brother has his own niche. Andy deals with the finances, Luke the Web site and Dan the machines.
Dan Cavanagh feels most at home in the large baking area.
In huge tubs, about 90 pounds of cake flour is mixed with about 13 gallons of water. The batter is then sent through a tube, where it is piped onto a large metal plate. Another plate clamps on top, and it goes through the oven. Each plate is like a "very large, 500-pound waffle iron," Dan Cavanagh said.
After coming out of the oven, the wafers spend about 15 minutes in what amounts to a humidifier, so they do not become brittle. When sufficiently moist they roll down a tube and into a spinning cylinder that resembles the ones in bingo halls.
The wafers are then shot to a machine that either puts them in sleeves of 100 or counts them for bags of 250. Then they are boxed.
The bread for Southern Baptist churches is baked on the other side of the room. The mixing process is similar, except the dough contains oil. Since the bread rises, it is baked in a large rotating oven and comes out as small squares.
The wafers and bread are made in both white and whole wheat, but most congregations prefer the whole wheat variety because it has more flavor, the Cavanaghs said.
Business dropped about 10 percent after the clergy sexual abuse scandal that rocked the Catholic Church in 2002, according to the Cavanaghs. But it has picked up recently — perhaps because of the growing worldly concerns that come with a bad economy.
The company now sells church supplies including altars and pews in England and Australia, and is keeping an eye on the growing Catholic communities in Africa and South America.
But no matter where they do business, they say, the company will remain in Rhode Island, and in the family.
"It's so gratifying to have it be a successful family business," Brian Cavanagh said.
By Katie Zezima
Thursday, December 25, 2008
GREENVILLE, Rhode Island: To the Cavanagh family, the product they make at a nondescript plant here is just bread and water. But to millions at churches around the world, it is a sacred offering.
From a purely economic point of view, it is something that is almost just as rare: a seemingly recession-proof business.
With the exception of a decline during recent Catholic Church priest scandals, the Cavanagh Company's business of making communion bread has been growing steadily for the last 65 years.
The bread is used as a sacramental offering that, for Catholics and some other Christians, represents the breaking of the bread at the Last Supper and the body of Christ.
The family-owned company makes about 80 percent of the communion bread used by the Catholic, Episcopal, Lutheran and Southern Baptist churches in the United States. It has a similar market share in Australia, Canada and Britain, and is now looking to expand to West Africa.
"We feel as though we're a bakery, and all we're making is bread," said Andy Cavanagh, the company's general manager, and part of the fourth generation of Cavanaghs to work here. "It's not that we don't have respect for what happens to it, but that transformation is out of our hands and takes place in a church. The best thing we can do is make sure the bread is perfect in every way possible."
Some customers say the Cavanaghs have such a big market share because their product is about as close to perfect as earthly possible.
"It doesn't crumb, and I don't like fragments of our Lord scattering all over the floor," said the Rev. Bob Dietel, an Episcopal priest.
Dietel uses Cavanagh altar bread at his parish, St. Aidan's, in Camano Island, Washington State He likes that the large wafer, which he holds up and breaks during Mass, cracks cleanly.
A few years ago, the congregation switched to the wheat wafer the Cavanaghs make from the white.
"There's a nice clean bread flavor, as opposed to the paste flavor you have with some other breads," Dietel said.
His congregation buys about 6,000 wafers a year from a Seattle religious goods store. Traditionally, nuns, priests or members of a congregation baked altar bread. (In the Catholic tradition it is unleavened and contains only flour and water; other denominations, including Southern Baptists, allow the use of additional ingredients.)
In 1943, Andy's great-grandfather, John Cavanagh Sr., an inventor, and grandfather, John Jr., were asked to help local Catholic nuns renovate their antiquated baking equipment. The men created new ovens and mixers for the nuns; then three years later, John Jr. and his brother Paul started making bread themselves.
They distributed all of it to Catholic churches and monasteries.
The Cavanaghs are Catholic and John Sr. let his sons run the business so he could concentrate on his first love, liturgical art. Crosses and paintings are showcased in a room in the Rhode Island offices.
For about 20 years, the Cavanagh bread was small, white and nearly transparent, intended to melt on the tongue. After the changes initiated in the church at the Second Vatican Council in the 1960s, Catholic churches wanted the wafers to be thicker and chewable, like real bread.
The Cavanaghs started producing the wafers of today — usually whole wheat and sealed on the outside to prevent crumbs.
In 1970, Paul's sons Brian and Peter joined the business and started expanding the company's reach beyond New England and the Catholic Church, where fewer and fewer nuns were making bread.
The company will not disclose sales numbers, but says it makes about 850 million wafers each year, and that each wafer sells for less than a penny. Most of the company's bread is sold wholesale to religious supply stores and Southern Baptist bookstores. In the Catholic Church the company sells to monasteries; the nuns then sell the bread to churches.
"It's a source of income for us, but at the same time it's a service to the parishes in the diocese," said Sister Marilyn McGillan of the Sisters of the Precious Blood in Watertown, New York Her monastery sells to about 100 churches in the Catholic Diocese of Ogdensburg, New York "We're like a clearinghouse for altar breads for our dioceses."
There are plenty of varieties. The company sells both white and wheat flour wafers, in sizes ranging from one and one-eighth inches wide to nine inches wide. Some are double-thick, and all except the large ones can be embossed with designs including a cross or a lamb.
'They're the classic symbols of Christianity," Andy Cavanagh said.
Brian and Peter Cavanagh still run the company, and expect Andy, 30, Peter's son; and his two brothers, Dan, 31 and Luke, 28, to buy them out one day.
The family members pride themselves on having never had an argument over business. They eat lunch together daily, and business talk almost always turns into discussions about New England sports teams.
"When you emphasize family, the business falls into place," Brian said.
Each brother has his own niche. Andy deals with the finances, Luke the Web site and Dan the machines.
Dan Cavanagh feels most at home in the large baking area.
In huge tubs, about 90 pounds of cake flour is mixed with about 13 gallons of water. The batter is then sent through a tube, where it is piped onto a large metal plate. Another plate clamps on top, and it goes through the oven. Each plate is like a "very large, 500-pound waffle iron," Dan Cavanagh said.
After coming out of the oven, the wafers spend about 15 minutes in what amounts to a humidifier, so they do not become brittle. When sufficiently moist they roll down a tube and into a spinning cylinder that resembles the ones in bingo halls.
The wafers are then shot to a machine that either puts them in sleeves of 100 or counts them for bags of 250. Then they are boxed.
The bread for Southern Baptist churches is baked on the other side of the room. The mixing process is similar, except the dough contains oil. Since the bread rises, it is baked in a large rotating oven and comes out as small squares.
The wafers and bread are made in both white and whole wheat, but most congregations prefer the whole wheat variety because it has more flavor, the Cavanaghs said.
Business dropped about 10 percent after the clergy sexual abuse scandal that rocked the Catholic Church in 2002, according to the Cavanaghs. But it has picked up recently — perhaps because of the growing worldly concerns that come with a bad economy.
The company now sells church supplies including altars and pews in England and Australia, and is keeping an eye on the growing Catholic communities in Africa and South America.
But no matter where they do business, they say, the company will remain in Rhode Island, and in the family.
"It's so gratifying to have it be a successful family business," Brian Cavanagh said.
*******************
Is a new food policy on Obama's list?
By Kim Severson
Thursday, December 25, 2008
FROM the moment it was clear that Barack Obama was going to be president, people who have dedicated their lives to changing how America eats thought they had found their St. Nicholas.
It wasn't long before the letters to Santa began piling up.
Ruth Reichl, the editor of Gourmet magazine, wants a new high-profile White House chef who cooks delicious local food. Wayne Pacelle, head of the Humane Society of the United States, wants policies requiring better treatment for farm animals.
Parents want better public-school lunches. Consumer groups are dreaming of a new, stronger food safety system. Nutrition reformers want prisoners to be fed less soy. And a farmer in Maine is asking the president-elect to plow under an acre of White House lawn for an organic vegetable garden.
Although Obama has proposed changes in the nation's farm and rural policies and emphasizes the connection between diet and health, there is nothing to indicate he has a special interest in a radical makeover of the way food is grown and sold.
Still, the dream endures. To advocates who have watched scattered calls for changes in food policy gather political and popular momentum, Obama looks like their kind of president.
Not only does he seem to possess a more-sophisticated palate than some of his recent predecessors, but he will also take office in an age when organic food is mainstream, cooking competitions are among the top-rated TV shows and books calling for an overhaul in the American food system are best sellers.
"People are so interested in a massive change in food and agriculture that they are dining out on hope now. That is like the main ingredient," said Eddie Gehman Kohan, a blogger from Los Angeles who started Obamafoodorama.com to document just about any conceivable link between Obama and food, whether it is a debate on agriculture policy or an image of Obama rendered in tiny cupcakes.
"He is the first president who might actually have eaten organic food, or at least eats out at great restaurants," Gehman Kohan said.
Still, no one is sure just how serious Obama really is about the politics of food. So like mystery buffs studying the book jacket of "The Da Vinci Code," interested eaters dissect every aspect of his life as it relates to the plate.
They look for clues in the lunch menus at Sidwell Friends School in Washington, where his two daughters will be eating items like herbes de Provence pita, local pears and organic chopped salad, served with unbleached napkins in a cafeteria with a serious recycling program. They point out that when Obama was a child, his family used food stamps and that in interviews he has referred to his appreciation of the philosophy put forth by Michael Pollan, the reform-minded food writer.
They note with approval that Rahm Emanuel, Obama's chief of staff, belongs to a synagogue that runs a community supported agriculture program and that his social secretary, Desirée Rogers, is from the food-obsessed city of New Orleans. They also see promising signs in Obama's fondness for some of Chicago's better restaurants, like Spiaggia and Topolobampo.
As for Michelle Obama, she has said in interviews that she tries to buy organic food and watches the amount of high-fructose corn syrup in her family's diet. And, as she confided on "The View" on ABC, "We're bacon people."
Add it all up and Obama looks like the first foodie president since Thomas Jefferson. For more recent comparisons, one could look at President George W. Bush, who is a fitness buff but who aligned himself with large agricultural companies like Cargill and Monsanto that some advocates for sustainable agriculture and organic food fight against.
President Bill Clinton certainly seemed to love food, but in his White House years his tastes ran more toward Big Macs than grass-fed beef. Only after his presidency, and serious health problems, did he turn his attention to issues of obesity and diet.
The Obamas are a different kind of first family, said David Kamp, who traced the history of the modern gourmet-food movement in his book, "The United States of Arugula" (Broadway, 2006). "This time we have a Democrat in office that seems to live the dream and speak the language of both food progressivism and personal fitness," Kamp said.
For many food activists, a shiny new secretary of agriculture was high on the Christmas wish list.
One of the first names to come up was Pollan, who in October wrote an open letter to the future president in The New York Times Magazine, explaining the ways in which he believes the food system needs fixing.
Even after Pollan repeatedly pointed out that he was unqualified and uninterested in the job of overseeing a $97-billion budget and more than 100,000 employees, his supporters kept pushing with more fanaticism than Clay Aiken's Claymates.
A couple of longtime Iowans, the celebrity pig farmer Paul Willis and his neighbor Dave Murphy, started a more serious drive. They compiled a list of six candidates who they thought would have the best interests of farm-based rural America and sustainable agriculture at heart. More than 50,000 people signed their petition, the restaurateur Alice Waters and the writer Wendell Berry among them.
But Santa had other plans. Last week, Obama appointed Tom Vilsack, the former governor of Iowa, which grows much of the nation's corn and soybeans. Vilsack has talked about reducing subsidies to some megafarms, supports better treatment of farm animals and wants healthier food in schools. But his selection drew criticism because he is a big fan of alternative fuels like corn-based ethanol and is a supporter of biotechnology, both anathema to people who want to shift government support from large-scale agricultural interests to smaller farms growing food that takes a more direct path to the table.
"Americans were promised 'change,' not just another shill for Monsanto and corporate agribusiness," wrote Ronnie Cummins of the Organic Consumers Association, which has promised to fight the confirmation of Vilsack. Willis and Murphy immediately shook off the blow and sent out a new petition to have someone more like-minded placed as undersecretary.
Food advocates aren't the only ones whose hopes for the new administration received a quick kick to the curb. A coalition of more than 140 environmental groups and scientists sent letters supporting one candidate to lead the Department of the Interior. Obama chose someone else.
Multiply that by every special interest and it becomes clear that just because changing the food system is the first priority for some, it isn't so for everyone. The pragmatists among the food reformers understand.
"This president is taking over when the economy is the worst it has been in our lifetime and we are in the middle of wars," said Ann Cooper, the chef who transformed the school food program for the Berkeley Unified School District in California and is about to do the same in Boulder, Colorado. "I think it's somewhere between naïve and fairy tale to think his No. 1 focus is going to be on food."
Still, she has her own little wish, which is that the new president will move responsibility for school food programs to the Department of Education or the Department of Health and Human Services from the Department of Agriculture. That way, the focus might shift away from the commodity foods that are the backbone of most school lunches and toward menus tailored to the health and development of children.
Some food-system reformers may have a better chance of getting what they want than others do. A coalition of community-based groups called the U.S. Working Group on the Food Crisis wrote to Obama asking him to make hunger and the global food crisis a top priority. Their optimism is based on Obama's promise to abolish childhood hunger by 2015.
They are also banking on his desire to tackle climate change and overhaul energy and health care policies.
"If he's serious about doing this, then he'll have to address the current problems of our food system, which are inextricably linked to these other problems," said Christina Schiavoni of World Hunger Year, which is part of the coalition. "There's no getting around it."
In her view and others', diets filled with healthier food produced by less intrusive farming practices can reduce medical problems like obesity and diabetes and be easier on the environment.
And even if Obama can't or won't deliver the changes some are hoping for, maybe he'll just leave a little something in their stockings.
A new White House chef, maybe? Cristeta Comerford, the first woman to hold the executive chef job, has been in the position since 2005, not long by White House standards. Still, some people think it's time for a change. "What the president eats could have a major impact on everyone in the country," said Reichl, who along with Waters and Danny Meyer, the restaurateur, sent a letter to Obama offering to help him select someone to head the White House kitchen.
A chef who cooks local and organic food and picks some of it from a presidential garden could change things faster than any cabinet appointment, Reichl said.
"It's like the hat manufacturers being furious because JFK didn't wear a hat, and suddenly everyone in America stopped wearing hats," she said. "It's that simple."
By Kim Severson
Thursday, December 25, 2008
FROM the moment it was clear that Barack Obama was going to be president, people who have dedicated their lives to changing how America eats thought they had found their St. Nicholas.
It wasn't long before the letters to Santa began piling up.
Ruth Reichl, the editor of Gourmet magazine, wants a new high-profile White House chef who cooks delicious local food. Wayne Pacelle, head of the Humane Society of the United States, wants policies requiring better treatment for farm animals.
Parents want better public-school lunches. Consumer groups are dreaming of a new, stronger food safety system. Nutrition reformers want prisoners to be fed less soy. And a farmer in Maine is asking the president-elect to plow under an acre of White House lawn for an organic vegetable garden.
Although Obama has proposed changes in the nation's farm and rural policies and emphasizes the connection between diet and health, there is nothing to indicate he has a special interest in a radical makeover of the way food is grown and sold.
Still, the dream endures. To advocates who have watched scattered calls for changes in food policy gather political and popular momentum, Obama looks like their kind of president.
Not only does he seem to possess a more-sophisticated palate than some of his recent predecessors, but he will also take office in an age when organic food is mainstream, cooking competitions are among the top-rated TV shows and books calling for an overhaul in the American food system are best sellers.
"People are so interested in a massive change in food and agriculture that they are dining out on hope now. That is like the main ingredient," said Eddie Gehman Kohan, a blogger from Los Angeles who started Obamafoodorama.com to document just about any conceivable link between Obama and food, whether it is a debate on agriculture policy or an image of Obama rendered in tiny cupcakes.
"He is the first president who might actually have eaten organic food, or at least eats out at great restaurants," Gehman Kohan said.
Still, no one is sure just how serious Obama really is about the politics of food. So like mystery buffs studying the book jacket of "The Da Vinci Code," interested eaters dissect every aspect of his life as it relates to the plate.
They look for clues in the lunch menus at Sidwell Friends School in Washington, where his two daughters will be eating items like herbes de Provence pita, local pears and organic chopped salad, served with unbleached napkins in a cafeteria with a serious recycling program. They point out that when Obama was a child, his family used food stamps and that in interviews he has referred to his appreciation of the philosophy put forth by Michael Pollan, the reform-minded food writer.
They note with approval that Rahm Emanuel, Obama's chief of staff, belongs to a synagogue that runs a community supported agriculture program and that his social secretary, Desirée Rogers, is from the food-obsessed city of New Orleans. They also see promising signs in Obama's fondness for some of Chicago's better restaurants, like Spiaggia and Topolobampo.
As for Michelle Obama, she has said in interviews that she tries to buy organic food and watches the amount of high-fructose corn syrup in her family's diet. And, as she confided on "The View" on ABC, "We're bacon people."
Add it all up and Obama looks like the first foodie president since Thomas Jefferson. For more recent comparisons, one could look at President George W. Bush, who is a fitness buff but who aligned himself with large agricultural companies like Cargill and Monsanto that some advocates for sustainable agriculture and organic food fight against.
President Bill Clinton certainly seemed to love food, but in his White House years his tastes ran more toward Big Macs than grass-fed beef. Only after his presidency, and serious health problems, did he turn his attention to issues of obesity and diet.
The Obamas are a different kind of first family, said David Kamp, who traced the history of the modern gourmet-food movement in his book, "The United States of Arugula" (Broadway, 2006). "This time we have a Democrat in office that seems to live the dream and speak the language of both food progressivism and personal fitness," Kamp said.
For many food activists, a shiny new secretary of agriculture was high on the Christmas wish list.
One of the first names to come up was Pollan, who in October wrote an open letter to the future president in The New York Times Magazine, explaining the ways in which he believes the food system needs fixing.
Even after Pollan repeatedly pointed out that he was unqualified and uninterested in the job of overseeing a $97-billion budget and more than 100,000 employees, his supporters kept pushing with more fanaticism than Clay Aiken's Claymates.
A couple of longtime Iowans, the celebrity pig farmer Paul Willis and his neighbor Dave Murphy, started a more serious drive. They compiled a list of six candidates who they thought would have the best interests of farm-based rural America and sustainable agriculture at heart. More than 50,000 people signed their petition, the restaurateur Alice Waters and the writer Wendell Berry among them.
But Santa had other plans. Last week, Obama appointed Tom Vilsack, the former governor of Iowa, which grows much of the nation's corn and soybeans. Vilsack has talked about reducing subsidies to some megafarms, supports better treatment of farm animals and wants healthier food in schools. But his selection drew criticism because he is a big fan of alternative fuels like corn-based ethanol and is a supporter of biotechnology, both anathema to people who want to shift government support from large-scale agricultural interests to smaller farms growing food that takes a more direct path to the table.
"Americans were promised 'change,' not just another shill for Monsanto and corporate agribusiness," wrote Ronnie Cummins of the Organic Consumers Association, which has promised to fight the confirmation of Vilsack. Willis and Murphy immediately shook off the blow and sent out a new petition to have someone more like-minded placed as undersecretary.
Food advocates aren't the only ones whose hopes for the new administration received a quick kick to the curb. A coalition of more than 140 environmental groups and scientists sent letters supporting one candidate to lead the Department of the Interior. Obama chose someone else.
Multiply that by every special interest and it becomes clear that just because changing the food system is the first priority for some, it isn't so for everyone. The pragmatists among the food reformers understand.
"This president is taking over when the economy is the worst it has been in our lifetime and we are in the middle of wars," said Ann Cooper, the chef who transformed the school food program for the Berkeley Unified School District in California and is about to do the same in Boulder, Colorado. "I think it's somewhere between naïve and fairy tale to think his No. 1 focus is going to be on food."
Still, she has her own little wish, which is that the new president will move responsibility for school food programs to the Department of Education or the Department of Health and Human Services from the Department of Agriculture. That way, the focus might shift away from the commodity foods that are the backbone of most school lunches and toward menus tailored to the health and development of children.
Some food-system reformers may have a better chance of getting what they want than others do. A coalition of community-based groups called the U.S. Working Group on the Food Crisis wrote to Obama asking him to make hunger and the global food crisis a top priority. Their optimism is based on Obama's promise to abolish childhood hunger by 2015.
They are also banking on his desire to tackle climate change and overhaul energy and health care policies.
"If he's serious about doing this, then he'll have to address the current problems of our food system, which are inextricably linked to these other problems," said Christina Schiavoni of World Hunger Year, which is part of the coalition. "There's no getting around it."
In her view and others', diets filled with healthier food produced by less intrusive farming practices can reduce medical problems like obesity and diabetes and be easier on the environment.
And even if Obama can't or won't deliver the changes some are hoping for, maybe he'll just leave a little something in their stockings.
A new White House chef, maybe? Cristeta Comerford, the first woman to hold the executive chef job, has been in the position since 2005, not long by White House standards. Still, some people think it's time for a change. "What the president eats could have a major impact on everyone in the country," said Reichl, who along with Waters and Danny Meyer, the restaurateur, sent a letter to Obama offering to help him select someone to head the White House kitchen.
A chef who cooks local and organic food and picks some of it from a presidential garden could change things faster than any cabinet appointment, Reichl said.
"It's like the hat manufacturers being furious because JFK didn't wear a hat, and suddenly everyone in America stopped wearing hats," she said. "It's that simple."
*****************
Women farmers toil to expand Africa's food supply
Reuters
Friday, December 26, 2008
By Megan Rowling
Like many African women, Mazoe Gondwe is her family's main food provider. Lately, she has struggled to farm her plot in Malawi due to unpredictable rains that are making her hard life even tougher.
"Now we can't just depend on rain-fed agriculture, so we plant two crops - one watered with rain and one that needs irrigating," she explained. "But irrigation is back-breaking and can take four hours a day."
Gondwe, flown by development agency ActionAid to U.N. climate change talks in Poland this month, said she wanted access to technology that would cut the time it takes to water her crops and till her farm garden. She would also be glad of help to improve storage facilities and seed varieties.
"As a local farmer, I know what I need and I know what works. I grew up in the area and I know how the system is changing," Gondwe said.
This year, agricultural experts have renewed calls for policy makers to pay more attention to small-scale women farmers such as Gondwe, who grow up to 80 percent of crops for food consumption in Africa.
After decades in the political wilderness, farming became a hot topic this year when international food prices hit record highs in June, sharply boosting hunger around the world. The proportion of development aid spent on agriculture has dropped to just 4 percent from a peak of 17 percent in 1982.
Former U.N. Secretary-General Kofi Annan has called for women to be at the heart of a "policy revolution" to boost small-scale farming in Africa.
Women have traditionally shouldered the burden of household food production both there and in Asia, while men tend to focus on growing cash crops or migrate to cities to find paid work.
Yet women own a tiny percentage of the world's land -- some experts say as little as 2 percent -- and receive only around 5 percent of farming information services and training.
"Today the African farmer is the only farmer who takes all the risks herself: no capital, no insurance, no price supports, and little help - if any - from governments. These women are tough and daring and resilient, but they need help," Annan told an October conference on fighting hunger.
A new toolkit explaining how to tackle gender issues in farming development projects, published by the U.N. Food and Agriculture Organisation (FAO), highlights the potential returns of improving women's access to technology, land and finance.
In Ghana, for example, if women and men had equal land rights and security of tenure, women's use of fertilizer and profits per hectare would nearly double.
In Burkina Faso, Kenya and Tanzania, giving women entrepreneurs the same inputs and education as men would boost business revenue by up to 20 percent. And in Ivory Coast, raising women's income by $10 (6.7 pounds) brings improvements in children's health and nutrition that would require a $110 (75 pound) increase in men's income.
"The knowledge is there, the know-how is there, but the world -- and here I'm talking rich and poor -- doesn't apply it as much as it could," said Marcela Villarreal, director of FAO's gender, equity and rural employment division.
EQUALITY
Many African governments have introduced formal laws making women and men equal, but have troubling enforcing them where they clash with customary laws giving property ownership rights to men, she said.
Often if a woman's husband dies, she has little choice but to marry one of his relatives so she can keep farming her plot and feeding her children, Villarreal said. But if a widow is HIV positive, she might be chased off her land.
In Malawi, FAO is working with parliamentarians and village chiefs to let rural women know they are legally able to hold land titles. They are given wind-up radios so they can listen to farming shows in local languages and taught how to write a will.
"People continue to think that doing things for women is part of a welfare programme and doing things for men - big investments or credit - that is agriculture, that is GDP-related," Villarreal said.
"Women continue not to be seen as part of the productive potential of a country."
One powerful woman trying to change that is Agnes Kalibata, Rwanda's minister of state for agriculture. She said government land reform and credit programmes specifically target struggling women farmers - many of whom are bringing up children alone after their husbands were killed in the 1994 genocide.
This has helped raise their incomes, leading to better nutrition, health and education for their children, Kalibata said. Women are also getting micro-credit loans, which they use to access markets and cooperatives or set up small businesses, such as producing specialty coffee for export.
"They are not like rocket scientists, they are women from the general population who finally feel empowered that they can come out and do some of these things," explained Kalibata.
In the private sector, the Bill and Melinda Gates Foundation has decided to put women at the centre of its agricultural development programme by attaching conditions to grants. It no longer finances projects that ignore gender issues, and it requires women to be involved in their design and implementation.
Catherine Bertini, a senior fellow at the foundation and professor of public administration at Syracuse University, said aid donors had not spent enough on support for women farmers.
"You can find the rhetoric but it's a limited number of people who actually walk the walk," she said.
Bertini, who headed the U.N. World Food Programme in the 1990s, said policy makers could best be persuaded to focus on women farmers by playing up the economic benefits rather than talking about gender equality.
"You convince people to do it because it's the most practical way to increase productivity and income to women," she said. (Editing by Megan Goldin)
Reuters
Friday, December 26, 2008
By Megan Rowling
Like many African women, Mazoe Gondwe is her family's main food provider. Lately, she has struggled to farm her plot in Malawi due to unpredictable rains that are making her hard life even tougher.
"Now we can't just depend on rain-fed agriculture, so we plant two crops - one watered with rain and one that needs irrigating," she explained. "But irrigation is back-breaking and can take four hours a day."
Gondwe, flown by development agency ActionAid to U.N. climate change talks in Poland this month, said she wanted access to technology that would cut the time it takes to water her crops and till her farm garden. She would also be glad of help to improve storage facilities and seed varieties.
"As a local farmer, I know what I need and I know what works. I grew up in the area and I know how the system is changing," Gondwe said.
This year, agricultural experts have renewed calls for policy makers to pay more attention to small-scale women farmers such as Gondwe, who grow up to 80 percent of crops for food consumption in Africa.
After decades in the political wilderness, farming became a hot topic this year when international food prices hit record highs in June, sharply boosting hunger around the world. The proportion of development aid spent on agriculture has dropped to just 4 percent from a peak of 17 percent in 1982.
Former U.N. Secretary-General Kofi Annan has called for women to be at the heart of a "policy revolution" to boost small-scale farming in Africa.
Women have traditionally shouldered the burden of household food production both there and in Asia, while men tend to focus on growing cash crops or migrate to cities to find paid work.
Yet women own a tiny percentage of the world's land -- some experts say as little as 2 percent -- and receive only around 5 percent of farming information services and training.
"Today the African farmer is the only farmer who takes all the risks herself: no capital, no insurance, no price supports, and little help - if any - from governments. These women are tough and daring and resilient, but they need help," Annan told an October conference on fighting hunger.
A new toolkit explaining how to tackle gender issues in farming development projects, published by the U.N. Food and Agriculture Organisation (FAO), highlights the potential returns of improving women's access to technology, land and finance.
In Ghana, for example, if women and men had equal land rights and security of tenure, women's use of fertilizer and profits per hectare would nearly double.
In Burkina Faso, Kenya and Tanzania, giving women entrepreneurs the same inputs and education as men would boost business revenue by up to 20 percent. And in Ivory Coast, raising women's income by $10 (6.7 pounds) brings improvements in children's health and nutrition that would require a $110 (75 pound) increase in men's income.
"The knowledge is there, the know-how is there, but the world -- and here I'm talking rich and poor -- doesn't apply it as much as it could," said Marcela Villarreal, director of FAO's gender, equity and rural employment division.
EQUALITY
Many African governments have introduced formal laws making women and men equal, but have troubling enforcing them where they clash with customary laws giving property ownership rights to men, she said.
Often if a woman's husband dies, she has little choice but to marry one of his relatives so she can keep farming her plot and feeding her children, Villarreal said. But if a widow is HIV positive, she might be chased off her land.
In Malawi, FAO is working with parliamentarians and village chiefs to let rural women know they are legally able to hold land titles. They are given wind-up radios so they can listen to farming shows in local languages and taught how to write a will.
"People continue to think that doing things for women is part of a welfare programme and doing things for men - big investments or credit - that is agriculture, that is GDP-related," Villarreal said.
"Women continue not to be seen as part of the productive potential of a country."
One powerful woman trying to change that is Agnes Kalibata, Rwanda's minister of state for agriculture. She said government land reform and credit programmes specifically target struggling women farmers - many of whom are bringing up children alone after their husbands were killed in the 1994 genocide.
This has helped raise their incomes, leading to better nutrition, health and education for their children, Kalibata said. Women are also getting micro-credit loans, which they use to access markets and cooperatives or set up small businesses, such as producing specialty coffee for export.
"They are not like rocket scientists, they are women from the general population who finally feel empowered that they can come out and do some of these things," explained Kalibata.
In the private sector, the Bill and Melinda Gates Foundation has decided to put women at the centre of its agricultural development programme by attaching conditions to grants. It no longer finances projects that ignore gender issues, and it requires women to be involved in their design and implementation.
Catherine Bertini, a senior fellow at the foundation and professor of public administration at Syracuse University, said aid donors had not spent enough on support for women farmers.
"You can find the rhetoric but it's a limited number of people who actually walk the walk," she said.
Bertini, who headed the U.N. World Food Programme in the 1990s, said policy makers could best be persuaded to focus on women farmers by playing up the economic benefits rather than talking about gender equality.
"You convince people to do it because it's the most practical way to increase productivity and income to women," she said. (Editing by Megan Goldin)
Coup in Guinea largely welcomed
By Jeffrey Gettleman
Thursday, December 25, 2008
NAIROBI, Kenya: By Thursday afternoon, the coup attempt in Guinea seemed to have simply become a coup.
In one fell swoop, most of the top politicians of this impoverished West African country surrendered themselves to the cadre of junior officers who began seizing power Tuesday after the death of the country's longstanding ruler. The army's rank-and-file seemed to be lining up behind the junior officers. And the coup leaders swiftly replaced governors with military commanders.
"We are at your disposal," the country's prime minister said in a live radio address.
Though the young officers essentially shoved aside Guinea's civilian leadership at gunpoint, there was not a lot of complaining among the populace.
People in Conakry, Guinea's steamy, seaside capital, flooded back into the streets Thursday, resuming their lives, playing soccer, going shopping, with many saying they hoped the coup would usher in better government.
"We're all happy," said Mamadou Bah, a tailor in Conakry. He said that if the junior officers did what they promised - namely, wiping out corruption and holding elections within two years - the people would support them.
Ahmedou Oury Bah, the minister of national reconciliation (who happens to have the same popular surname as the tailor), said that he decided to succumb to the coup leaders because it was better than being hunted down, as the junior officers had threatened.
When asked if this meant that he supported the coup leaders, Bah answered in an indirect, but telling, way.
"We're acknowledging that they're in power," he said.
Guinea plunged into a political abyss after Lansana Conté, a chain-smoking, diabetic general who ruled the country for 24 iron-fisted years, died Monday, apparently from an illness and with no publicly announced succession plans.
Junior and midranking officers rushed to fill the power gap. They started by storming the radio and television headquarters. They then tightened their grip by taking control of key administrative buildings and army bases in Conakry.
By Wednesday afternoon, the junior officers had announced that their spokesman, Moussa Dadis Camara, an army captain who is thought to be in his mid-40s and used to be in charge of fuel supplies, was the country's new president.
Initially, there had been grumbling by some senior military commanders, who denounced the coup, and by top civilian leaders. But by Thursday, most of them seemed to have either capitulated or gone underground. No one inside Guinea appears to have mounted a challenge to the junior officers, despite widespread condemnation of the coup abroad.
Guinea has been in rocky waters for years. It was a country of immense promise at independence in 1958, with gold, diamonds, verdant banana fields, seemingly limitless aluminum ore and gushing rivers ideal for hydropower. It was considered one of the gems in the French colonial crown.
But Guinea slipped into obscurity under its first ruler, Ahmed Sékou Touré, a revolutionary who espoused Marxist policies and shut out the West. After Touré died, Conté seized power in a military coup very similar to the one that took place this week.
He kept Guinea relatively stable, compared to its neighbors like Liberia and Sierra Leone. But thanks to corruption and mismanagement, the economy was still a shadow of its potential. Conté's health steadily declined, so did the country. Paralyzing strikes erupted last year and dozens of people were killed. In May, junior army officers mutinied, kidnapping a senior officer and demanding better pay.
Given that their country has been ruled by just two presidents, both notorious dictators, for almost all of the past 50 years, many Guineans seemed to welcome the coup, or at least were not outspokenly against it. One word on many lips Thursday seemed reminiscent of a certain political phenomenon an ocean away: change.
"We want change," said Mamadou Aliou Barry, a construction worker in the capital. "What happened yesterday took too long."
Some people on Conakry's streets have even starting calling Camara, the new president, "Obama junior."
By Jeffrey Gettleman
Thursday, December 25, 2008
NAIROBI, Kenya: By Thursday afternoon, the coup attempt in Guinea seemed to have simply become a coup.
In one fell swoop, most of the top politicians of this impoverished West African country surrendered themselves to the cadre of junior officers who began seizing power Tuesday after the death of the country's longstanding ruler. The army's rank-and-file seemed to be lining up behind the junior officers. And the coup leaders swiftly replaced governors with military commanders.
"We are at your disposal," the country's prime minister said in a live radio address.
Though the young officers essentially shoved aside Guinea's civilian leadership at gunpoint, there was not a lot of complaining among the populace.
People in Conakry, Guinea's steamy, seaside capital, flooded back into the streets Thursday, resuming their lives, playing soccer, going shopping, with many saying they hoped the coup would usher in better government.
"We're all happy," said Mamadou Bah, a tailor in Conakry. He said that if the junior officers did what they promised - namely, wiping out corruption and holding elections within two years - the people would support them.
Ahmedou Oury Bah, the minister of national reconciliation (who happens to have the same popular surname as the tailor), said that he decided to succumb to the coup leaders because it was better than being hunted down, as the junior officers had threatened.
When asked if this meant that he supported the coup leaders, Bah answered in an indirect, but telling, way.
"We're acknowledging that they're in power," he said.
Guinea plunged into a political abyss after Lansana Conté, a chain-smoking, diabetic general who ruled the country for 24 iron-fisted years, died Monday, apparently from an illness and with no publicly announced succession plans.
Junior and midranking officers rushed to fill the power gap. They started by storming the radio and television headquarters. They then tightened their grip by taking control of key administrative buildings and army bases in Conakry.
By Wednesday afternoon, the junior officers had announced that their spokesman, Moussa Dadis Camara, an army captain who is thought to be in his mid-40s and used to be in charge of fuel supplies, was the country's new president.
Initially, there had been grumbling by some senior military commanders, who denounced the coup, and by top civilian leaders. But by Thursday, most of them seemed to have either capitulated or gone underground. No one inside Guinea appears to have mounted a challenge to the junior officers, despite widespread condemnation of the coup abroad.
Guinea has been in rocky waters for years. It was a country of immense promise at independence in 1958, with gold, diamonds, verdant banana fields, seemingly limitless aluminum ore and gushing rivers ideal for hydropower. It was considered one of the gems in the French colonial crown.
But Guinea slipped into obscurity under its first ruler, Ahmed Sékou Touré, a revolutionary who espoused Marxist policies and shut out the West. After Touré died, Conté seized power in a military coup very similar to the one that took place this week.
He kept Guinea relatively stable, compared to its neighbors like Liberia and Sierra Leone. But thanks to corruption and mismanagement, the economy was still a shadow of its potential. Conté's health steadily declined, so did the country. Paralyzing strikes erupted last year and dozens of people were killed. In May, junior army officers mutinied, kidnapping a senior officer and demanding better pay.
Given that their country has been ruled by just two presidents, both notorious dictators, for almost all of the past 50 years, many Guineans seemed to welcome the coup, or at least were not outspokenly against it. One word on many lips Thursday seemed reminiscent of a certain political phenomenon an ocean away: change.
"We want change," said Mamadou Aliou Barry, a construction worker in the capital. "What happened yesterday took too long."
Some people on Conakry's streets have even starting calling Camara, the new president, "Obama junior."
*******************
COLUMNIST
Nicholas D. Kristof: Good deeds for profit
Thursday, December 25, 2008
Here's a question for the holiday season: If a businessman rakes in a hefty profit while doing good works, is that charity or greed? Do we applaud or hiss?
A new book, "Uncharitable," seethes with indignation at public expectations that charities be prudent, nonprofit and saintly. The author, Dan Pallotta, argues that those expectations make them less effective, and he has a point.
Pallotta's frustration is intertwined with his own history as the inventor of fundraisers like AIDSRides and Breast Cancer 3-Days - events that, he says, netted $305 million over nine years for unrestricted use by charities. In the aid world, that's a breathtaking sum.
But Pallotta's company wasn't a charity, but rather a for-profit company that created charitable events. Critics railed at his $394,500 salary - low for a corporate chief executive, but stratospheric in the aid world - and at the millions of dollars spent on advertising and marketing and other expenses.
"Shame on Pallotta," declared one critic at the time, accusing him of "greed and unabashed profiteering." In the aftermath of a wave of criticism, his company collapsed.
One breast cancer charity that parted ways with Pallotta began producing its own fundraising walks, but the net sum raised by those walks for breast cancer research plummeted from $71 million to $11 million, he says. Pallotta argues powerfully that the aid world is stunted because groups are discouraged from using such standard business tools as advertising, risk-taking, competitive salaries and profits to lure capital.
"We allow people to make huge profits doing any number of things that will hurt the poor, but we want to crucify anyone who wants to make money helping them," Pallotta says. "Want to make a million selling violent video games to kids? Go for it. Want to make a million helping cure kids of cancer? You're labeled a parasite."
I confess to ambivalence. I deeply admire the other kind of aid workers, those whose passion for their work is evident by the fact that they've gone broke doing it. I'm filled with awe when I go to a place like Darfur and see unpaid or underpaid aid workers in groups like Doctors Without Borders, risking their lives to patch up the victims of genocide.
I also worry that if aid groups paid executives as lavishly as Citigroup does, they would be managed as badly as Citigroup.
Yet there's a broad recognition in much of the aid community that a major rethink is necessary, that groups would be more effective if they borrowed more tools from the business world, and that there is too much "gotcha" scrutiny on overhead rather than on what they actually accomplish. It's notable that leaders of Oxfam and Save the Children have publicly endorsed the book, and it's certainly becoming more socially acceptable to note that businesses can also play a powerful role in fighting poverty.
"Howard Schultz has done more for coffee-growing regions of Africa than anybody I can think of," Michael Fairbanks, a development expert, said of the chief executive of Starbucks. By helping countries improve their coffee-growing practices and brand their coffees, Starbucks has probably helped impoverished African coffee farmers more than any aid group has.
Fairbanks himself demonstrates that a businessman can do good even as he does well. Rwanda's president, Paul Kagame, hired Fairbanks' consulting company and paid it millions of dollars between 2000 and 2007.
In turn, Fairbanks helped Rwanda market its coffee, tea and gorillas. Rwandan coffee now retails for up to $55 a pound in Manhattan, wages in the Rwandan coffee sector have soared up to eight-fold, and zillionaires stumble through the Rwandan jungle to admire the wildlife. Kagame thanked Fairbanks by granting him Rwandan citizenship.
There are lots of saintly aid workers in Rwanda, including the heroic Dr. Paul Farmer of Partners in Health, and they do extraordinary work. But sometimes, so do the suits. Isaac Durojaiye, a Nigerian businessman, is an example of the way the line is beginning to blur between businesses and charities. He runs a for-profit franchise business that provides fee-for-use public toilets in Nigeria. When he started, there was one public toilet in Nigeria for every 200,000 people, but by charging, he has been able to provide basic sanitation to far more people than any aid group.
In the war on poverty, there is room for all kinds of organizations. Pallotta may be right that by frowning on aid groups that pay high salaries, advertise extensively and even turn a profit, we end up hurting the world's neediest.
"People continue to die as a result," he says bluntly. "This we call morality."
Thursday, December 25, 2008
Here's a question for the holiday season: If a businessman rakes in a hefty profit while doing good works, is that charity or greed? Do we applaud or hiss?
A new book, "Uncharitable," seethes with indignation at public expectations that charities be prudent, nonprofit and saintly. The author, Dan Pallotta, argues that those expectations make them less effective, and he has a point.
Pallotta's frustration is intertwined with his own history as the inventor of fundraisers like AIDSRides and Breast Cancer 3-Days - events that, he says, netted $305 million over nine years for unrestricted use by charities. In the aid world, that's a breathtaking sum.
But Pallotta's company wasn't a charity, but rather a for-profit company that created charitable events. Critics railed at his $394,500 salary - low for a corporate chief executive, but stratospheric in the aid world - and at the millions of dollars spent on advertising and marketing and other expenses.
"Shame on Pallotta," declared one critic at the time, accusing him of "greed and unabashed profiteering." In the aftermath of a wave of criticism, his company collapsed.
One breast cancer charity that parted ways with Pallotta began producing its own fundraising walks, but the net sum raised by those walks for breast cancer research plummeted from $71 million to $11 million, he says. Pallotta argues powerfully that the aid world is stunted because groups are discouraged from using such standard business tools as advertising, risk-taking, competitive salaries and profits to lure capital.
"We allow people to make huge profits doing any number of things that will hurt the poor, but we want to crucify anyone who wants to make money helping them," Pallotta says. "Want to make a million selling violent video games to kids? Go for it. Want to make a million helping cure kids of cancer? You're labeled a parasite."
I confess to ambivalence. I deeply admire the other kind of aid workers, those whose passion for their work is evident by the fact that they've gone broke doing it. I'm filled with awe when I go to a place like Darfur and see unpaid or underpaid aid workers in groups like Doctors Without Borders, risking their lives to patch up the victims of genocide.
I also worry that if aid groups paid executives as lavishly as Citigroup does, they would be managed as badly as Citigroup.
Yet there's a broad recognition in much of the aid community that a major rethink is necessary, that groups would be more effective if they borrowed more tools from the business world, and that there is too much "gotcha" scrutiny on overhead rather than on what they actually accomplish. It's notable that leaders of Oxfam and Save the Children have publicly endorsed the book, and it's certainly becoming more socially acceptable to note that businesses can also play a powerful role in fighting poverty.
"Howard Schultz has done more for coffee-growing regions of Africa than anybody I can think of," Michael Fairbanks, a development expert, said of the chief executive of Starbucks. By helping countries improve their coffee-growing practices and brand their coffees, Starbucks has probably helped impoverished African coffee farmers more than any aid group has.
Fairbanks himself demonstrates that a businessman can do good even as he does well. Rwanda's president, Paul Kagame, hired Fairbanks' consulting company and paid it millions of dollars between 2000 and 2007.
In turn, Fairbanks helped Rwanda market its coffee, tea and gorillas. Rwandan coffee now retails for up to $55 a pound in Manhattan, wages in the Rwandan coffee sector have soared up to eight-fold, and zillionaires stumble through the Rwandan jungle to admire the wildlife. Kagame thanked Fairbanks by granting him Rwandan citizenship.
There are lots of saintly aid workers in Rwanda, including the heroic Dr. Paul Farmer of Partners in Health, and they do extraordinary work. But sometimes, so do the suits. Isaac Durojaiye, a Nigerian businessman, is an example of the way the line is beginning to blur between businesses and charities. He runs a for-profit franchise business that provides fee-for-use public toilets in Nigeria. When he started, there was one public toilet in Nigeria for every 200,000 people, but by charging, he has been able to provide basic sanitation to far more people than any aid group.
In the war on poverty, there is room for all kinds of organizations. Pallotta may be right that by frowning on aid groups that pay high salaries, advertise extensively and even turn a profit, we end up hurting the world's neediest.
"People continue to die as a result," he says bluntly. "This we call morality."
*******************
Goldman helps business women in emerging nations
By Elizabeth Olson
Thursday, December 25, 2008
Finding time away from building a new business is never easy, but Ngozi Okoli-Owube gladly set aside her daily schedule this year to go back to school to learn marketing, accounting and managerial skills that she never had the time to master.
For five months, Okoli-Owube, 31, alternated her work establishing a preschool for learning-disabled children in Lagos with weeklong stints at the Lagos Business School, joining a class of two dozen women to earn a certificate in entrepreneurial management.
"I have a university degree, but I did not have the training in how to run a business," said Okoli-Owube, who had been struggling to get enough students to enroll at her "Start Right" school. "I have to learn to keep the books, how to market and to get advice from women who've come out the other side."
So when she saw a local newspaper advertisement last spring for 10,000 Women, a global entrepreneurship program run by Goldman Sachs, she and about 100 other women jumped at the chance to apply.
The welfare of girls and women has long been on the agenda of international agencies. The World Bank, for example, this year announced steps to increase support for women entrepreneurs by channeling some $100 million in commercial credit lines to them by 2012.
But corporations have also begun to take their economic power more seriously, especially in emerging markets.
Many corporate programs employ microloans, grants or gifts to promote business education.
Goldman decided to take a different approach after its research showed that per capita income in Brazil, China, India, Russia and other emerging markets could rise by as much as 14 percent if women gained deeper management and entrepreneurial skills.
"It's not only philanthropy they're after," said Geeta Rao Gupta, president of the International Center for Research on Women. Goldman "had the idea that investment in women means a return on the gross national product of the country, and on household income."
The company set aside $100 million over five years to bring business education to 10,000 qualified women business owners in developing countries, a commitment that remains unchanged despite the turmoil in the banking industry.
Rao Gupta said the long-term view that Goldman and others were taking in growing markets might help form a new economic stratum in societies where women's participation in business traditionally has been circumscribed. Laws and customs in some countries, for example, bar women from being able to open bank accounts or can require a husband's permission to set up a company.
"This is the next step for women because it's investing long term in business skills," said Rao Gupta, whose institute researches and provides technical assistance for women in developing countries.
The hurdles can be high. Few women in African nations ever pursued a business education, often the preserve of well-to-do students heading for a corporate job. Of 50 major business schools in Africa - a continent of 900 million people - only 2,600 women were enrolled in local MBA programs, Goldman's research found.
To foster entrepreneurship and management education, business schools in developing countries are being paired with 50 universities and organizations in Europe and the United States.
This month, for example, 10,000 Women announced that the Yale School of Public Health would work with Tsinghua University to provide management and leadership education to Chinese women working in public health.
Women remain in situ, allowing them to be with their families and - like Okoli-Owube - apply their newly learned skills on the spot.
"Women often don't have two years to get an MBA," said Dina Powell, who oversees the Goldman initiative.
Family considerations as well as cultural differences make it difficult for many women to leave their home country for study abroad.
In Cairo, about 100 female participants annually can earn a business certificate after learning accounting, market research and e-commerce, as well as fund-raising and structuring a business plan.
But in countries where attending school can be dangerous for women, a different tack is taken. Using Goldman funds, the Thunderbird School of Management, which is based in Arizona but has programs in five other countries, brings Afghani women entrepreneurs to its Phoenix campus for five weeks of training.
The investment bank is also financing the training of local Afghani professors to teach business courses to women in Kabul.
AT&T, which is also investing in women's education, donated $125,000 through a foundation this year to bring women entrepreneurs from developing countries, like Afghanistan, to the United States for a three-week college-level business course, and a week of mentorship with female U.S. business owners.
"This is still a small part of what we do," said Laura Sanford, the president of AT&T Foundation. "But it's an area that's going to grow as it becomes more recognized that women are part of the economic landscape, and as business owners, they contribute to the economic welfare of their country."
By Elizabeth Olson
Thursday, December 25, 2008
Finding time away from building a new business is never easy, but Ngozi Okoli-Owube gladly set aside her daily schedule this year to go back to school to learn marketing, accounting and managerial skills that she never had the time to master.
For five months, Okoli-Owube, 31, alternated her work establishing a preschool for learning-disabled children in Lagos with weeklong stints at the Lagos Business School, joining a class of two dozen women to earn a certificate in entrepreneurial management.
"I have a university degree, but I did not have the training in how to run a business," said Okoli-Owube, who had been struggling to get enough students to enroll at her "Start Right" school. "I have to learn to keep the books, how to market and to get advice from women who've come out the other side."
So when she saw a local newspaper advertisement last spring for 10,000 Women, a global entrepreneurship program run by Goldman Sachs, she and about 100 other women jumped at the chance to apply.
The welfare of girls and women has long been on the agenda of international agencies. The World Bank, for example, this year announced steps to increase support for women entrepreneurs by channeling some $100 million in commercial credit lines to them by 2012.
But corporations have also begun to take their economic power more seriously, especially in emerging markets.
Many corporate programs employ microloans, grants or gifts to promote business education.
Goldman decided to take a different approach after its research showed that per capita income in Brazil, China, India, Russia and other emerging markets could rise by as much as 14 percent if women gained deeper management and entrepreneurial skills.
"It's not only philanthropy they're after," said Geeta Rao Gupta, president of the International Center for Research on Women. Goldman "had the idea that investment in women means a return on the gross national product of the country, and on household income."
The company set aside $100 million over five years to bring business education to 10,000 qualified women business owners in developing countries, a commitment that remains unchanged despite the turmoil in the banking industry.
Rao Gupta said the long-term view that Goldman and others were taking in growing markets might help form a new economic stratum in societies where women's participation in business traditionally has been circumscribed. Laws and customs in some countries, for example, bar women from being able to open bank accounts or can require a husband's permission to set up a company.
"This is the next step for women because it's investing long term in business skills," said Rao Gupta, whose institute researches and provides technical assistance for women in developing countries.
The hurdles can be high. Few women in African nations ever pursued a business education, often the preserve of well-to-do students heading for a corporate job. Of 50 major business schools in Africa - a continent of 900 million people - only 2,600 women were enrolled in local MBA programs, Goldman's research found.
To foster entrepreneurship and management education, business schools in developing countries are being paired with 50 universities and organizations in Europe and the United States.
This month, for example, 10,000 Women announced that the Yale School of Public Health would work with Tsinghua University to provide management and leadership education to Chinese women working in public health.
Women remain in situ, allowing them to be with their families and - like Okoli-Owube - apply their newly learned skills on the spot.
"Women often don't have two years to get an MBA," said Dina Powell, who oversees the Goldman initiative.
Family considerations as well as cultural differences make it difficult for many women to leave their home country for study abroad.
In Cairo, about 100 female participants annually can earn a business certificate after learning accounting, market research and e-commerce, as well as fund-raising and structuring a business plan.
But in countries where attending school can be dangerous for women, a different tack is taken. Using Goldman funds, the Thunderbird School of Management, which is based in Arizona but has programs in five other countries, brings Afghani women entrepreneurs to its Phoenix campus for five weeks of training.
The investment bank is also financing the training of local Afghani professors to teach business courses to women in Kabul.
AT&T, which is also investing in women's education, donated $125,000 through a foundation this year to bring women entrepreneurs from developing countries, like Afghanistan, to the United States for a three-week college-level business course, and a week of mentorship with female U.S. business owners.
"This is still a small part of what we do," said Laura Sanford, the president of AT&T Foundation. "But it's an area that's going to grow as it becomes more recognized that women are part of the economic landscape, and as business owners, they contribute to the economic welfare of their country."
*******************
OPINION
Not-so-lonely planet
By Oliver Morton
Thursday, December 25, 2008
They came for the Moon, and for the first three orbits it was to the Moon that the astronauts of Apollo 8 devoted their attention. Only on their fourth time round did they lift their eyes to see their home world, rising silently above the Moon's desert plains, blue and white and beautiful. When, later on that Christmas Eve in 1968, they read the opening lines of Genesis on live television, they did it with a sense of the heavens and the Earth, of the form and the void, enriched by the wonder they had seen rising into the Moon's black sky.
The photograph of that earthrise by the astronaut Bill Anders forms part of the Apollo program's enduring legacy - eclipsing, in many memories, any discoveries about the Moon or renewed sense of national pride. It and other pictures looking back at the Earth provided a new perspective on the thing that all humanity shares. As Robert Poole documents in his history, "Earthrise: How Man First Saw the Earth," that perspective had deep cultural effects, notably in the emotional resonance it offered the growing environmental movement. Seen from the Moon, the Earth seemed so small, so isolated, so terribly fragile.
It takes nothing from the beauty and power of the image, though, to point out that it was the photographer, far more than its subject, who was isolated, and that the fragility is an illusion. The planet Earth is a remarkably robust thing, and this strength flows from its ancient and intimate connection to the cosmos beyond. To see the photo this way does not undermine its environmental relevance - but it does recast it.
That the Earth is small is undeniable. If the inner solar system were the size of the United States, the Earth would be the size of a football field; if the distance to the center of the galaxy were a mile, the Earth would be less than an atom. But if the "Earthrise" photo could have captured our planet in the dimension of time instead of space, things would look different. In its duration, as opposed to its diameter, the Earth demands to be measured on a cosmic scale. At more than 4 billion years old, it stretches a third of the way across the history of the universe, a third of the way back to the Big Bang itself. Many of the stars you can see on a clear winter's night are younger than the planet beneath your feet.
Mere persistence is not, in itself, that great a feat. The barren rocks of the Moon have persisted almost as long. But the Earth has not merely endured; it has lived. For almost 90 percent of its history the planet has been inhabited, and shaped by life. The biological mechanisms that first operated in the dawn of life animate the creatures of the Earth to this day, forming an unbroken chain at least 3.8 billion years long.
This unfailing, uninterrupted life demonstrates that the planet is far from fragile. The living Earth is tough on scales it is hard to credit. Life has watched continents crash together and tear themselves apart; skies glowing like bright coals; tropical seas frozen into stillness: It has endured. Slaked in radiation from nearby supernovae, pummeled by asteroids, it has barely faltered and never stopped. Our civilization may be - is - out of balance with its environment; current human ways of life are frighteningly precarious. But to read the fragility of our way of life onto life itself is foolish.
Humans can kill species and diminish ecosystems. Such vandalism poses real dangers to its perpetrators, since human civilization relies on the services some of these ecosystems provide. But at the scale of the planet's life taken as a whole it is penny-ante stuff. Humanity poses no existential risk to life on Earth, and nor will anything else for hundreds of millions of years. Rich, varied, ever changing - the Earth is all of these. Fragile it is not.
Why so robust? The reason rests in the second great misconception: that the Earth is isolated. This is true only if your sense of connection depends on physical matter moving from place to place. The dust and rocks that rain down from space are indeed the merest spattering, even if some of the larger rocks occasionally cause a little dinosaur-killing discomfort; the traces of gas blown off the top of the atmosphere are truly negligible. Matter trickles in, whispers out. But matter is not everything.
An unending spate of pure luminous energy pours from the Sun in all directions. Eight minutes downstream at the speed of light, part of this extraordinary flux crashes down on the Earth in a 170,000-trillion-watt torrent. Some of it splashes back into space; Major Anders' "Earthrise" captures that reflected light in the brilliant white of clouds and polar ice. Most, though, is absorbed; this is the energy that drives the winds, makes the waves and currents flow, heats the rocks and warms the sky. The Sun's energy flows through the earth system and out the other side, ebbing back into the coldness of space as a tide of infrared radiation.
A very small fraction of this energy is caught, not by rock and wind and water, but by life. That fraction of a percent captured by plants and other photosynthetic organisms flows into and through the food webs of the world. It is this sunlight, endlessly refreshed, that allows the grass to grow, the birds to sing - and you to live. The Sun's energy flows through your breakfast cereal, your morning coffee, your veins and your mind. It animates you as it has animated almost all the Earth's life for billions of years.
The science of thermodynamics tells us that closed systems tend toward equilibrium, toward dullness, toward entropy. If the Earth were truly as isolated as it looks, that unavoidable tendency would be the lot of life. But the Earth is as open as the sky. Energy from elsewhere floods through it, creating endless chances for complexity and improbability, washing the world's entropy back into space. The flow of energy that unites almost every living creature on the planet is the same flow that connects our environment to the universe beyond.
For this flow to work, the energy must get out as well as get in. If Major Anders had had a camera working in the infrared, that departing energy would have shown up as a warm glow on the night side of the planet. Forty years on, that glow has dimmed a little; less energy is getting out. By thickening the skies with carbon dioxide, we are blocking the energy's flow, and allowing a buildup of heat here at the surface of the Earth. This greenhouse warming is small beer in any cosmic sense. It poses no threat to the continuation of life on Earth, but it does pose a threat to tens of millions of people, and will do so for generations to come.
Happily, to see the problem of global warming in terms of this flow of energy is to see its solution. By putting a little of the cosmic energy to use - by developing wind power, appropriate energy crops, hydropower and, most promising of all, solar power - we could do away with the need for that sky-thickening carbon dioxide. Other flows of energy could help too - flows of heat from the depths of the Earth and of radiation bequeathed to us in the uranium of dead stars. But it is solar energy, indirectly or directly, that will dominate the picture, simply because of its abundance. The Sun delivers more energy to the Earth in an hour than humanity uses in a year.
To substitute these flows for the fossil fuels poised to despoil our planet and also run out on us - worst of both worlds - is an epic task. But the message that frames all the other messages of "Earthrise" is that we can rise to epic tasks. Look where the photo was taken. "If we can put a man on the Moon ..." quickly became shorthand for society's failure to achieve goals that seemed far simpler. But still: We put a man on the Moon, and that does say something. Efforts on a similar scale aimed at harvesting the energy flowing about us are entirely appropriate, and could make things a great deal better. We cannot solve all problems; some climate change is inevitable. But catastrophe is not.
"Earthrise" showed us where we are, what we can do and what we share. It showed us who we are, together; the people of a tough, long-lasting world, shot through with the light of a continuous creation.Oliver Morton, the author of "Mapping Mars: Science, Imagination and the Birth of a World," and, most recently, "Eating the Sun: How Plants Power the Planet," is the chief news and features editor of the journal Nature.
By Oliver Morton
Thursday, December 25, 2008
They came for the Moon, and for the first three orbits it was to the Moon that the astronauts of Apollo 8 devoted their attention. Only on their fourth time round did they lift their eyes to see their home world, rising silently above the Moon's desert plains, blue and white and beautiful. When, later on that Christmas Eve in 1968, they read the opening lines of Genesis on live television, they did it with a sense of the heavens and the Earth, of the form and the void, enriched by the wonder they had seen rising into the Moon's black sky.
The photograph of that earthrise by the astronaut Bill Anders forms part of the Apollo program's enduring legacy - eclipsing, in many memories, any discoveries about the Moon or renewed sense of national pride. It and other pictures looking back at the Earth provided a new perspective on the thing that all humanity shares. As Robert Poole documents in his history, "Earthrise: How Man First Saw the Earth," that perspective had deep cultural effects, notably in the emotional resonance it offered the growing environmental movement. Seen from the Moon, the Earth seemed so small, so isolated, so terribly fragile.
It takes nothing from the beauty and power of the image, though, to point out that it was the photographer, far more than its subject, who was isolated, and that the fragility is an illusion. The planet Earth is a remarkably robust thing, and this strength flows from its ancient and intimate connection to the cosmos beyond. To see the photo this way does not undermine its environmental relevance - but it does recast it.
That the Earth is small is undeniable. If the inner solar system were the size of the United States, the Earth would be the size of a football field; if the distance to the center of the galaxy were a mile, the Earth would be less than an atom. But if the "Earthrise" photo could have captured our planet in the dimension of time instead of space, things would look different. In its duration, as opposed to its diameter, the Earth demands to be measured on a cosmic scale. At more than 4 billion years old, it stretches a third of the way across the history of the universe, a third of the way back to the Big Bang itself. Many of the stars you can see on a clear winter's night are younger than the planet beneath your feet.
Mere persistence is not, in itself, that great a feat. The barren rocks of the Moon have persisted almost as long. But the Earth has not merely endured; it has lived. For almost 90 percent of its history the planet has been inhabited, and shaped by life. The biological mechanisms that first operated in the dawn of life animate the creatures of the Earth to this day, forming an unbroken chain at least 3.8 billion years long.
This unfailing, uninterrupted life demonstrates that the planet is far from fragile. The living Earth is tough on scales it is hard to credit. Life has watched continents crash together and tear themselves apart; skies glowing like bright coals; tropical seas frozen into stillness: It has endured. Slaked in radiation from nearby supernovae, pummeled by asteroids, it has barely faltered and never stopped. Our civilization may be - is - out of balance with its environment; current human ways of life are frighteningly precarious. But to read the fragility of our way of life onto life itself is foolish.
Humans can kill species and diminish ecosystems. Such vandalism poses real dangers to its perpetrators, since human civilization relies on the services some of these ecosystems provide. But at the scale of the planet's life taken as a whole it is penny-ante stuff. Humanity poses no existential risk to life on Earth, and nor will anything else for hundreds of millions of years. Rich, varied, ever changing - the Earth is all of these. Fragile it is not.
Why so robust? The reason rests in the second great misconception: that the Earth is isolated. This is true only if your sense of connection depends on physical matter moving from place to place. The dust and rocks that rain down from space are indeed the merest spattering, even if some of the larger rocks occasionally cause a little dinosaur-killing discomfort; the traces of gas blown off the top of the atmosphere are truly negligible. Matter trickles in, whispers out. But matter is not everything.
An unending spate of pure luminous energy pours from the Sun in all directions. Eight minutes downstream at the speed of light, part of this extraordinary flux crashes down on the Earth in a 170,000-trillion-watt torrent. Some of it splashes back into space; Major Anders' "Earthrise" captures that reflected light in the brilliant white of clouds and polar ice. Most, though, is absorbed; this is the energy that drives the winds, makes the waves and currents flow, heats the rocks and warms the sky. The Sun's energy flows through the earth system and out the other side, ebbing back into the coldness of space as a tide of infrared radiation.
A very small fraction of this energy is caught, not by rock and wind and water, but by life. That fraction of a percent captured by plants and other photosynthetic organisms flows into and through the food webs of the world. It is this sunlight, endlessly refreshed, that allows the grass to grow, the birds to sing - and you to live. The Sun's energy flows through your breakfast cereal, your morning coffee, your veins and your mind. It animates you as it has animated almost all the Earth's life for billions of years.
The science of thermodynamics tells us that closed systems tend toward equilibrium, toward dullness, toward entropy. If the Earth were truly as isolated as it looks, that unavoidable tendency would be the lot of life. But the Earth is as open as the sky. Energy from elsewhere floods through it, creating endless chances for complexity and improbability, washing the world's entropy back into space. The flow of energy that unites almost every living creature on the planet is the same flow that connects our environment to the universe beyond.
For this flow to work, the energy must get out as well as get in. If Major Anders had had a camera working in the infrared, that departing energy would have shown up as a warm glow on the night side of the planet. Forty years on, that glow has dimmed a little; less energy is getting out. By thickening the skies with carbon dioxide, we are blocking the energy's flow, and allowing a buildup of heat here at the surface of the Earth. This greenhouse warming is small beer in any cosmic sense. It poses no threat to the continuation of life on Earth, but it does pose a threat to tens of millions of people, and will do so for generations to come.
Happily, to see the problem of global warming in terms of this flow of energy is to see its solution. By putting a little of the cosmic energy to use - by developing wind power, appropriate energy crops, hydropower and, most promising of all, solar power - we could do away with the need for that sky-thickening carbon dioxide. Other flows of energy could help too - flows of heat from the depths of the Earth and of radiation bequeathed to us in the uranium of dead stars. But it is solar energy, indirectly or directly, that will dominate the picture, simply because of its abundance. The Sun delivers more energy to the Earth in an hour than humanity uses in a year.
To substitute these flows for the fossil fuels poised to despoil our planet and also run out on us - worst of both worlds - is an epic task. But the message that frames all the other messages of "Earthrise" is that we can rise to epic tasks. Look where the photo was taken. "If we can put a man on the Moon ..." quickly became shorthand for society's failure to achieve goals that seemed far simpler. But still: We put a man on the Moon, and that does say something. Efforts on a similar scale aimed at harvesting the energy flowing about us are entirely appropriate, and could make things a great deal better. We cannot solve all problems; some climate change is inevitable. But catastrophe is not.
"Earthrise" showed us where we are, what we can do and what we share. It showed us who we are, together; the people of a tough, long-lasting world, shot through with the light of a continuous creation.Oliver Morton, the author of "Mapping Mars: Science, Imagination and the Birth of a World," and, most recently, "Eating the Sun: How Plants Power the Planet," is the chief news and features editor of the journal Nature.
Pipeline dreams entangle Russians and Europeans
By Judy Dempsey
Thursday, December 25, 2008
BERLIN: 2009 was supposed to be the year when Europe and Russia would diversify their energy sources and routes.
The Russian-German Nord Stream pipeline that would run under the Baltic Sea was due to be completed in the coming months, ready to deliver gas by 2010. Once in operation, it would be the realization of Russia's dreams to reduce its dependency on troublesome transit countries, such as Ukraine. It would also be the crowning of the special relationship between Russia and Germany. Nord Stream would run from Vyborg, near St. Petersburg, touching land at Greifswald, on Germany's north-eastern coast. But as of this day, construction has not even begun.
Then there is Russia's South Stream pipeline, meant to be built under the Black Sea with the Italian energy company ENI. It would link Russia to Bulgaria, denying Turkey lucrative transit fees.
The European Union, too, has its pipeline plan: Nabucco. Feted six years ago as the pipeline that would reduce Europe's dependency on Russian gas, construction was supposed to be completed by 2009. No pipes have yet been laid. In the meantime, the dependency on Russian gas imports, already accounting for 42 percent of Europe's needs, is set to increase.
The Russians and the EU have made such ambitious plans because the Europeans need gas and Russia needs Europe's rich markets. The North Sea gas fields that provided Europe with much of its gas are dwindling rapidly. And despite calls by the EU for more diversification to ensure energy security, the Europeans still look mostly to Russia for its energy.
Yet with gas consumption among the 27-member bloc expected to rise a further 200 billion cubic meters a year by 2030 from present levels of about 300 billion cubic meters, or 10.6 trillion cubic feet, a year, there are no guarantees that Russia will be able to meet that demand. Russia's fields in Western Siberia are almost depleted; Nord Stream and South Stream (and Nabucco) are facing delays - and it is not certain they will add new capacity.
The global economic crisis is a contributing factor for the delays. Oil prices, to which gas prices are closely linked, have plummeted from a high of $140 a barrel last summer to about $40 a barrel this month. That has made energy companies far more cautious about investing in long-term, capital-intensive projects.
The three pipelines also have their own special problems. Nord Stream has still not obtained planning permission from all the countries that border the Baltic Sea. The credit crunch also means that banks will not be in a hurry to finance Nord Stream, which will cost €7.4 billion, or $10.3 billion, for the offshore work. Gazprom, the Russian state-owned energy company that holds the majority stake in Nord Stream, will not fund it alone, said Vaclav Bartuska, the Czech government's special energy envoy. "The Russians need European money. We have yet to see if the German banks will deliver," he added.
At least the steel pipes for Nord Stream have been ordered. Germany's former chancellor, Gerhard Schröder, who is chairman of Nord Stream's shareholders' committee and who has developed a particularly close relationship with Vladimir Putin, the Russian prime minister and former president, is determined to see the project through.
And even though Putin last month warned that Nord Stream might be abandoned if the Europeans did not support it politically, energy experts said he was bluffing. "Putin wants Nord Stream because it would tie Russian energy exports to Europe," said Borut Grgic, director of the Institute for Strategic Studies in Ljubljana, Slovenia. BASF/Wintershall and E.ON Ruhrgas, the German energy companies that have teamed up with Gazprom to build Nord Stream, are not prepared to jump ship, either.
South Stream has problems too. This week Serbia signed an accord to join the project with Gazprom - after a year of haggling over the terms. But other countries supposed to be involved in South Stream, including Bulgaria, have also raised objections. When asked whether the $10 billion project would ever be completed, Mihaly Bayer, the special envoy for the Hungarian government, which is involved in both South Stream and Nabucco, replied cryptically: "There are still several intergovernmental agreements to be finalized." Even Alexei Miller, chairman of Gazprom's management committee, said recently that South Stream would not be ready until 2015.
The EU's €7.9 billion Nabucco pipeline that plans to take gas from Azerbaijan and eventually Iran is lagging behind operation by up to three years. "Europe unveiled Nabucco before it had producers to fill the pipeline," said Grgic. "With no guaranteed sources of energy, there is no markets. And without markets, the consortium will not obtain financing," he added.
The Nabucco management denied this week that the project was in trouble. "Financial institutes are shying away from financing volatile risk business and are shifting to long-term infrastructure projects such as Nabucco," it said in a statement.
But whatever happens to these three projects, neither individually nor collectively will they meet Europe's growing demand for gas. Nord Stream will be able to deliver 55 billion cubic meters of gas a year, but it will not be new gas. "It will be gas which otherwise would have been sent across Ukraine," said a Nord Stream company official. The same is true for the South Stream's annual 30 billion cubic meters, which might include some supplies from some Central Asian countries. As for Nabucco, it plans an annual capacity of merely 31 billion cubic meters.
The reason why so little new Russian gas will be sent to Europe is not just rising domestic demand. Russia has failed to invest in the sector. Even when energy prices were very high, Putin did not use the windfalls to modernize the energy infrastructure or introduce energy-saving measures. Instead, Gazprom spent them acquiring energy assets in Central Asia and the Balkans, buying newspapers and building swanky offices.
As if blind to this, Europe has neglected to find new alternative gas sources. It could have supported the reconstruction of Iraq's energy sector, reached out to energy-rich Azerbaijan and done much more to save energy and support and renewables. Now the economic crisis will make the EU even more unwilling to look elsewhere for its energy. But the writing is already on the wall.
By Judy Dempsey
Thursday, December 25, 2008
BERLIN: 2009 was supposed to be the year when Europe and Russia would diversify their energy sources and routes.
The Russian-German Nord Stream pipeline that would run under the Baltic Sea was due to be completed in the coming months, ready to deliver gas by 2010. Once in operation, it would be the realization of Russia's dreams to reduce its dependency on troublesome transit countries, such as Ukraine. It would also be the crowning of the special relationship between Russia and Germany. Nord Stream would run from Vyborg, near St. Petersburg, touching land at Greifswald, on Germany's north-eastern coast. But as of this day, construction has not even begun.
Then there is Russia's South Stream pipeline, meant to be built under the Black Sea with the Italian energy company ENI. It would link Russia to Bulgaria, denying Turkey lucrative transit fees.
The European Union, too, has its pipeline plan: Nabucco. Feted six years ago as the pipeline that would reduce Europe's dependency on Russian gas, construction was supposed to be completed by 2009. No pipes have yet been laid. In the meantime, the dependency on Russian gas imports, already accounting for 42 percent of Europe's needs, is set to increase.
The Russians and the EU have made such ambitious plans because the Europeans need gas and Russia needs Europe's rich markets. The North Sea gas fields that provided Europe with much of its gas are dwindling rapidly. And despite calls by the EU for more diversification to ensure energy security, the Europeans still look mostly to Russia for its energy.
Yet with gas consumption among the 27-member bloc expected to rise a further 200 billion cubic meters a year by 2030 from present levels of about 300 billion cubic meters, or 10.6 trillion cubic feet, a year, there are no guarantees that Russia will be able to meet that demand. Russia's fields in Western Siberia are almost depleted; Nord Stream and South Stream (and Nabucco) are facing delays - and it is not certain they will add new capacity.
The global economic crisis is a contributing factor for the delays. Oil prices, to which gas prices are closely linked, have plummeted from a high of $140 a barrel last summer to about $40 a barrel this month. That has made energy companies far more cautious about investing in long-term, capital-intensive projects.
The three pipelines also have their own special problems. Nord Stream has still not obtained planning permission from all the countries that border the Baltic Sea. The credit crunch also means that banks will not be in a hurry to finance Nord Stream, which will cost €7.4 billion, or $10.3 billion, for the offshore work. Gazprom, the Russian state-owned energy company that holds the majority stake in Nord Stream, will not fund it alone, said Vaclav Bartuska, the Czech government's special energy envoy. "The Russians need European money. We have yet to see if the German banks will deliver," he added.
At least the steel pipes for Nord Stream have been ordered. Germany's former chancellor, Gerhard Schröder, who is chairman of Nord Stream's shareholders' committee and who has developed a particularly close relationship with Vladimir Putin, the Russian prime minister and former president, is determined to see the project through.
And even though Putin last month warned that Nord Stream might be abandoned if the Europeans did not support it politically, energy experts said he was bluffing. "Putin wants Nord Stream because it would tie Russian energy exports to Europe," said Borut Grgic, director of the Institute for Strategic Studies in Ljubljana, Slovenia. BASF/Wintershall and E.ON Ruhrgas, the German energy companies that have teamed up with Gazprom to build Nord Stream, are not prepared to jump ship, either.
South Stream has problems too. This week Serbia signed an accord to join the project with Gazprom - after a year of haggling over the terms. But other countries supposed to be involved in South Stream, including Bulgaria, have also raised objections. When asked whether the $10 billion project would ever be completed, Mihaly Bayer, the special envoy for the Hungarian government, which is involved in both South Stream and Nabucco, replied cryptically: "There are still several intergovernmental agreements to be finalized." Even Alexei Miller, chairman of Gazprom's management committee, said recently that South Stream would not be ready until 2015.
The EU's €7.9 billion Nabucco pipeline that plans to take gas from Azerbaijan and eventually Iran is lagging behind operation by up to three years. "Europe unveiled Nabucco before it had producers to fill the pipeline," said Grgic. "With no guaranteed sources of energy, there is no markets. And without markets, the consortium will not obtain financing," he added.
The Nabucco management denied this week that the project was in trouble. "Financial institutes are shying away from financing volatile risk business and are shifting to long-term infrastructure projects such as Nabucco," it said in a statement.
But whatever happens to these three projects, neither individually nor collectively will they meet Europe's growing demand for gas. Nord Stream will be able to deliver 55 billion cubic meters of gas a year, but it will not be new gas. "It will be gas which otherwise would have been sent across Ukraine," said a Nord Stream company official. The same is true for the South Stream's annual 30 billion cubic meters, which might include some supplies from some Central Asian countries. As for Nabucco, it plans an annual capacity of merely 31 billion cubic meters.
The reason why so little new Russian gas will be sent to Europe is not just rising domestic demand. Russia has failed to invest in the sector. Even when energy prices were very high, Putin did not use the windfalls to modernize the energy infrastructure or introduce energy-saving measures. Instead, Gazprom spent them acquiring energy assets in Central Asia and the Balkans, buying newspapers and building swanky offices.
As if blind to this, Europe has neglected to find new alternative gas sources. It could have supported the reconstruction of Iraq's energy sector, reached out to energy-rich Azerbaijan and done much more to save energy and support and renewables. Now the economic crisis will make the EU even more unwilling to look elsewhere for its energy. But the writing is already on the wall.
******************
Tennessee coal ash spill revives issue of its hazards
By Shaila Dewan
Thursday, December 25, 2008
KINGSTON, Tennessee: What may be the nation's largest spill of coal ash lay thick and largely untouched over hundreds of acres of land and waterways Wednesday after a dam broke this week, as officials and environmentalists argued over its potential toxicity.
Federal studies have long shown coal ash to contain significant quantities of heavy metals like arsenic, lead and selenium, which can cause cancer and neurological problems. But with no official word on the dangers of the sludge in Tennessee, displaced residents spent Christmas Eve worried about their health and their property, and wondering what to do.
The spill took place at the Kingston Fossil Plant, a Tennessee Valley Authority generating plant about 40 miles west of Knoxville on the banks of the Emory River, which feeds into the Clinch River, and then the Tennessee River just downstream.
Holly Schean, a waitress whose home, which she shared with her parents, was swept off its foundation when millions of cubic yards of ash breached a retaining wall early Monday morning, said, "They're giving their apologies, which don't mean very much."
The TVA, Schean said, has not yet declared the house uninhabitable. But, she said: "I don't need your apologies. I need information."
Even as the authority played down the risks, the spill reignited a debate over whether the federal government should regulate coal ash as a hazardous material. Similar ponds and mounds of ash exist at hundreds of coal plants around the nation.
The Tennessee Valley Authority has issued no warnings about the potential chemical dangers of the spill, saying there was as yet no evidence of toxic substances. "Most of that material is inert," said Gilbert Francis Jr., a spokesman for the authority. "It does have some heavy metals within it, but it's not toxic or anything."
Francis said contaminants in water samples taken near the spill site and at the intake for the town of Kingston, six miles downstream, were within acceptable levels.
But a draft report last year by the U.S. Environmental Protection Agency found that fly ash, a byproduct of the burning of coal to produce electricity, does contain significant amounts of carcinogens and retains the heavy metal present in coal in far higher concentrations. The report found that the concentrations of arsenic to which people might be exposed through drinking water contaminated by fly ash could increase cancer risks several hundredfold.
Similarly, a 2006 study by the federally chartered National Research Council found that these coal-burning byproducts "often contain a mixture of metals and other constituents in sufficient quantities that they may pose public health and environmental concerns if improperly managed." The study said "risks to human health and ecosystems" might occur when these contaminants entered drinking water supplies or surface water bodies.
In 2000, the Environmental Protection Agency proposed stricter federal controls of coal ash, but backed away in the face of fierce opposition from utilities, the coal industry, and Clinton administration officials. At the time, the Edison Electric Institute, an association of power utilities, estimated that the industry would have to spend up to $5 billion in additional cleanup costs if the substance were declared hazardous. Since then, environmentalists have urged tighter federal standards, and the EPA is reconsidering its decision not to classify the waste as hazardous.
A morning flight over the disaster area showed some cleanup activity along a road and the railroad tracks that take coal to the facility, both heaped in sludge, but no evidence of promised skimmers or barricades on the water to prevent the ash from sliding downstream. The breach occurred when an earthen dike, the only thing separating millions of cubic yards of ash from the river, gave way, releasing a glossy sea of muck, four to six feet thick, dotted with icebergs of ash across the landscape. Where the Clinch River joined the Tennessee, a clear demarcation was visible between the soiled waters of the former and the clear brown broth of the latter.
By afternoon, dump trucks were depositing rock into the river in a race to blockade it before an impending rainstorm washed more ash downstream.
The spill, which released about 300 million gallons of sludge and water, is far larger than the other two similar disasters, said Jeffrey Stant, the director of the Coal Combustion Waste Initiative for the Environmental Integrity Project, an environmental legal group, who has written on the subject for the EPA. One spill in 1967 on the Clinch River in Virginia released about 130 million gallons, and the other in 2005 in Northampton County, Pennsylvania, released about 100 million gallons into the Delaware River.
The contents of coal ash can vary widely depending on the source, but one study found that the mean concentrations of lead, chromium, nickel and arsenic are three to five times higher in the Appalachian coal that is mined near Kingston than in Rocky Mountain or Northern Plains coal.
Stephen Smith, the executive director of the Southern Alliance for Clean Energy, said it was "mind-boggling" that officials had not warned nearby residents of the dangers.
"The fact that they have not warned people, I think, is disastrous and potentially harmful to the residents," Smith said. "There are people walking around, checking it out."
He and other environmentalists warned that another danger would arise when the muck dried out and became airborne and breathable.
Despite numerous reports from recreational anglers and television news video of a large fish kill downstream of the spill, Francis said the TVA's environmental team had not encountered any dead fish. On Swan Pond Road, home to the residences nearest the plant, a group of environmental advocates went door to door telling residents that boiling their water, as officials had suggested, would not remove heavy metals.
Environmentalists pointed to the accident as proof of their long-held assertion that there is no such thing as "clean coal," noting two factors that may have contributed to the scale of the disaster. First, as coal plants have gotten better at controlling air pollution, the toxic substances that would have been spewed into the air have been shifted to solid byproducts like fly ash, and the production of such postcombustion waste, as it is called, has increased sharply.
Second, the Kingston plant, surrounded by residential tracts, had little room to grow and simply piled its ash higher and higher, though officials said the pond whose wall gave way was not over capacity.
Environmental groups have long pressed for coal ash to be buried in lined landfills to prevent the leaching of metals into the soil and groundwater, a recommendation borne out by the 2006 EPA report. An above-ground embankment like the one at Kingston was not an appropriate storage site for fly ash, said Thomas FitzGerald, the director of nonprofit Kentucky Resources Council and an expert in coal waste.
"I find it difficult to comprehend that the State of Tennessee would have approved that as a permanent disposal site," FitzGerald said.
The TVA will find an alternative place to dispose of the fly ash in the future, Francis said. He said that at least 30 pieces of heavy machinery had been put in use to begin the cleanup of the estimated 1.7 million cubic yards of ash that spilled from the 80-acre pond, and that work would continue day and night, even on Christmas. The plant, which generates enough electricity to support 670,000 homes, is still functioning, but might run out of coal before the railroad tracks are cleared.
About 15 houses were affected by the flood, Francis said, and three would likely be declared uninhabitable. "We're going to make it right," he said. "We're going to restore these folks to where they were prior to this incident."
A spokeswoman for the Environmental Protection Agency, Laura Niles, said the agency was overseeing the cleanup and would decide whether to declare Kingston a Superfund site when the extent of the contamination was known.
United States coal plants produce 129 million tons of postcombustion byproducts a year, the second-largest waste stream in the country, after municipal solid waste. That is enough to fill more than a million railroad coal cars, according to the National Research Council.
Another 2007 EPA report said that over about a decade, 67 towns in 26 states had their groundwater contaminated by heavy metals from such dumps.
For instance, in Anne Arundel County, Maryland, between Baltimore and Annapolis, residential wells were polluted by heavy metals, including thallium, cadmium and arsenic, leaching from a sand-and-gravel pit where ash from a local power plant had been dumped since the mid-1990s by the Baltimore Gas and Electric Company. Maryland fined the company $1 million in 2007.
As it grew dark in Kingston, a hard rain enveloped Roane County, rendering the twin smokestacks of the steam plant, as locals refer to it, barely visible amid the dingy clouds.
Angela Spurgeon, a teacher and mother of two whose dock was smothered in the ash-slide, said she was worried about the health effects, saying that on the night of the accident everyone was covered in sludge.
"The breathing is what concerns me, the lung issues," Spurgeon said. "Who knows what's in that water?"
By Shaila Dewan
Thursday, December 25, 2008
KINGSTON, Tennessee: What may be the nation's largest spill of coal ash lay thick and largely untouched over hundreds of acres of land and waterways Wednesday after a dam broke this week, as officials and environmentalists argued over its potential toxicity.
Federal studies have long shown coal ash to contain significant quantities of heavy metals like arsenic, lead and selenium, which can cause cancer and neurological problems. But with no official word on the dangers of the sludge in Tennessee, displaced residents spent Christmas Eve worried about their health and their property, and wondering what to do.
The spill took place at the Kingston Fossil Plant, a Tennessee Valley Authority generating plant about 40 miles west of Knoxville on the banks of the Emory River, which feeds into the Clinch River, and then the Tennessee River just downstream.
Holly Schean, a waitress whose home, which she shared with her parents, was swept off its foundation when millions of cubic yards of ash breached a retaining wall early Monday morning, said, "They're giving their apologies, which don't mean very much."
The TVA, Schean said, has not yet declared the house uninhabitable. But, she said: "I don't need your apologies. I need information."
Even as the authority played down the risks, the spill reignited a debate over whether the federal government should regulate coal ash as a hazardous material. Similar ponds and mounds of ash exist at hundreds of coal plants around the nation.
The Tennessee Valley Authority has issued no warnings about the potential chemical dangers of the spill, saying there was as yet no evidence of toxic substances. "Most of that material is inert," said Gilbert Francis Jr., a spokesman for the authority. "It does have some heavy metals within it, but it's not toxic or anything."
Francis said contaminants in water samples taken near the spill site and at the intake for the town of Kingston, six miles downstream, were within acceptable levels.
But a draft report last year by the U.S. Environmental Protection Agency found that fly ash, a byproduct of the burning of coal to produce electricity, does contain significant amounts of carcinogens and retains the heavy metal present in coal in far higher concentrations. The report found that the concentrations of arsenic to which people might be exposed through drinking water contaminated by fly ash could increase cancer risks several hundredfold.
Similarly, a 2006 study by the federally chartered National Research Council found that these coal-burning byproducts "often contain a mixture of metals and other constituents in sufficient quantities that they may pose public health and environmental concerns if improperly managed." The study said "risks to human health and ecosystems" might occur when these contaminants entered drinking water supplies or surface water bodies.
In 2000, the Environmental Protection Agency proposed stricter federal controls of coal ash, but backed away in the face of fierce opposition from utilities, the coal industry, and Clinton administration officials. At the time, the Edison Electric Institute, an association of power utilities, estimated that the industry would have to spend up to $5 billion in additional cleanup costs if the substance were declared hazardous. Since then, environmentalists have urged tighter federal standards, and the EPA is reconsidering its decision not to classify the waste as hazardous.
A morning flight over the disaster area showed some cleanup activity along a road and the railroad tracks that take coal to the facility, both heaped in sludge, but no evidence of promised skimmers or barricades on the water to prevent the ash from sliding downstream. The breach occurred when an earthen dike, the only thing separating millions of cubic yards of ash from the river, gave way, releasing a glossy sea of muck, four to six feet thick, dotted with icebergs of ash across the landscape. Where the Clinch River joined the Tennessee, a clear demarcation was visible between the soiled waters of the former and the clear brown broth of the latter.
By afternoon, dump trucks were depositing rock into the river in a race to blockade it before an impending rainstorm washed more ash downstream.
The spill, which released about 300 million gallons of sludge and water, is far larger than the other two similar disasters, said Jeffrey Stant, the director of the Coal Combustion Waste Initiative for the Environmental Integrity Project, an environmental legal group, who has written on the subject for the EPA. One spill in 1967 on the Clinch River in Virginia released about 130 million gallons, and the other in 2005 in Northampton County, Pennsylvania, released about 100 million gallons into the Delaware River.
The contents of coal ash can vary widely depending on the source, but one study found that the mean concentrations of lead, chromium, nickel and arsenic are three to five times higher in the Appalachian coal that is mined near Kingston than in Rocky Mountain or Northern Plains coal.
Stephen Smith, the executive director of the Southern Alliance for Clean Energy, said it was "mind-boggling" that officials had not warned nearby residents of the dangers.
"The fact that they have not warned people, I think, is disastrous and potentially harmful to the residents," Smith said. "There are people walking around, checking it out."
He and other environmentalists warned that another danger would arise when the muck dried out and became airborne and breathable.
Despite numerous reports from recreational anglers and television news video of a large fish kill downstream of the spill, Francis said the TVA's environmental team had not encountered any dead fish. On Swan Pond Road, home to the residences nearest the plant, a group of environmental advocates went door to door telling residents that boiling their water, as officials had suggested, would not remove heavy metals.
Environmentalists pointed to the accident as proof of their long-held assertion that there is no such thing as "clean coal," noting two factors that may have contributed to the scale of the disaster. First, as coal plants have gotten better at controlling air pollution, the toxic substances that would have been spewed into the air have been shifted to solid byproducts like fly ash, and the production of such postcombustion waste, as it is called, has increased sharply.
Second, the Kingston plant, surrounded by residential tracts, had little room to grow and simply piled its ash higher and higher, though officials said the pond whose wall gave way was not over capacity.
Environmental groups have long pressed for coal ash to be buried in lined landfills to prevent the leaching of metals into the soil and groundwater, a recommendation borne out by the 2006 EPA report. An above-ground embankment like the one at Kingston was not an appropriate storage site for fly ash, said Thomas FitzGerald, the director of nonprofit Kentucky Resources Council and an expert in coal waste.
"I find it difficult to comprehend that the State of Tennessee would have approved that as a permanent disposal site," FitzGerald said.
The TVA will find an alternative place to dispose of the fly ash in the future, Francis said. He said that at least 30 pieces of heavy machinery had been put in use to begin the cleanup of the estimated 1.7 million cubic yards of ash that spilled from the 80-acre pond, and that work would continue day and night, even on Christmas. The plant, which generates enough electricity to support 670,000 homes, is still functioning, but might run out of coal before the railroad tracks are cleared.
About 15 houses were affected by the flood, Francis said, and three would likely be declared uninhabitable. "We're going to make it right," he said. "We're going to restore these folks to where they were prior to this incident."
A spokeswoman for the Environmental Protection Agency, Laura Niles, said the agency was overseeing the cleanup and would decide whether to declare Kingston a Superfund site when the extent of the contamination was known.
United States coal plants produce 129 million tons of postcombustion byproducts a year, the second-largest waste stream in the country, after municipal solid waste. That is enough to fill more than a million railroad coal cars, according to the National Research Council.
Another 2007 EPA report said that over about a decade, 67 towns in 26 states had their groundwater contaminated by heavy metals from such dumps.
For instance, in Anne Arundel County, Maryland, between Baltimore and Annapolis, residential wells were polluted by heavy metals, including thallium, cadmium and arsenic, leaching from a sand-and-gravel pit where ash from a local power plant had been dumped since the mid-1990s by the Baltimore Gas and Electric Company. Maryland fined the company $1 million in 2007.
As it grew dark in Kingston, a hard rain enveloped Roane County, rendering the twin smokestacks of the steam plant, as locals refer to it, barely visible amid the dingy clouds.
Angela Spurgeon, a teacher and mother of two whose dock was smothered in the ash-slide, said she was worried about the health effects, saying that on the night of the accident everyone was covered in sludge.
"The breathing is what concerns me, the lung issues," Spurgeon said. "Who knows what's in that water?"
British downturn pummels real-estate values in Alps
By Warren Giles and Dylan Griffiths
By Warren Giles and Dylan Griffiths
Bloomberg News
Thursday, December 25, 2008
GENEVA: Dan Morgans cut the asking price for his ski chalet near Chamonix, France, after the credit crunch and plunging pound ended a boom fueled by Britons.
The price of the house, with an outdoor Jacuzzi facing Mont Blanc, has been dropped by 13 percent to €1.5 million, or $2.1 million. Morgans, a 35-year-old chef, paid €750,000 for the chalet in 2001.
"It's a bit stomach-churning," said Morgans, who has spent seven years catering for guests at the chalet. "Nothing is moving in this market."
British demand for ski properties has helped drive Alpine prices higher for at least six years. Values are now plunging as the worst financial crisis since the 1930s and this year's 22 percent decline in the pound against the euro deter buyers.
At Chamonix, which gets half its foreign visitors from Britain, prices have dropped by as much as 20 percent, said Craig Widdicombe, who sells houses in the area for Agence des Alpes.
Gabriel Mingeon, sales director at MGM Immobilier, which is based in Annecy, France, and is one of the biggest real estate developers in the French Alps, said: "The whole mountain economy is suffering. The British are big consumers."
British clients accounted for about 12 percent of MGM's 360 sales this year, compared with 18 percent of 420 sales in 2007.
"The British are the drivers in the market because as soon as they buy, the French see it and start to get interested," Mingeon said. "They gave the system its dynamism."
The British economy shrank 0.6 percent in the third quarter, the worst decline since 1990, while the European Central Bank predicts that the euro region, which comprises 15 countries, will contract 0.5 percent next year.
In Chamonix, 88 kilometers, or 55 miles, from Geneva, the pound's "crippling" decline is making it more difficult to attract Britons, said Simon Warren of Agence Montagne, a real estate company in the town.
"Our biggest problem is that nobody needs a chalet in the Alps," Warren said as he surveyed the plat du jour of Thai chicken at Chambre Neuf, a bar opposite Chamonix train station. "It's the ultimate discretionary spend."
Chamonix, which hosted the first Winter Olympics in 1924, lies in a valley encircled by snow-clad peaks.
The town's population of 9,000 increases 10-fold during the winter as skiers seek such attractions as the Vallée Blanche, a 20-kilometer descent on a snow-covered glacier from the Aiguille du Midi, which has an elevation of 3,842 meters, or 12,600 feet.
Heavy snowfalls, with more than a meter lying on the upper slopes of Chamonix and a neighboring Swiss resort, Verbier, are fueling early-season bookings, said Marion Telsnig, spokeswoman for Britain's biggest ski-tour operator, Crystal Holidays.
"Bookings screeched to a halt in September and October with the financial crisis," Telsnig said.
Telsnig said that more skiers were opting for self-catering vacations and that reservations "have recovered with the snow."
Reservations later this season are down, she said. Chamonix properties that used to sell within two months are still unsold after six months, said Widdicombe, the Agence des Alpes broker, who has lived in the town for five years.
Among the properties that Widdicombe is trying to sell is a four-bedroom, wood-clad chalet near the center of Chamonix for €1.35 million. That works out at €6,200 per square meter, below the €7,000 to €8,000 that was previously the base for sellers in Chamonix.
The budgets of buyers have dropped to an average of about €500,000 from €700,000 a year ago, he said. The market may worsen further.
"Some U.K. buyers may be forced to liquidate their property assets," Widdicombe said as he drove through a snow-lined hamlet within sight of the Bossons glacier.
This that may push other sellers to reduce their prices, he said.
Back at his chalet, Morgans said he hoped that the credit markets would ease enough to tempt a buyer soon.
"I told myself I'd give it 6 to 10 years in Chamonix," he said. "It's a great place to live, but any longer than that and the risk is you become a perpetual ski bum."
Thursday, December 25, 2008
GENEVA: Dan Morgans cut the asking price for his ski chalet near Chamonix, France, after the credit crunch and plunging pound ended a boom fueled by Britons.
The price of the house, with an outdoor Jacuzzi facing Mont Blanc, has been dropped by 13 percent to €1.5 million, or $2.1 million. Morgans, a 35-year-old chef, paid €750,000 for the chalet in 2001.
"It's a bit stomach-churning," said Morgans, who has spent seven years catering for guests at the chalet. "Nothing is moving in this market."
British demand for ski properties has helped drive Alpine prices higher for at least six years. Values are now plunging as the worst financial crisis since the 1930s and this year's 22 percent decline in the pound against the euro deter buyers.
At Chamonix, which gets half its foreign visitors from Britain, prices have dropped by as much as 20 percent, said Craig Widdicombe, who sells houses in the area for Agence des Alpes.
Gabriel Mingeon, sales director at MGM Immobilier, which is based in Annecy, France, and is one of the biggest real estate developers in the French Alps, said: "The whole mountain economy is suffering. The British are big consumers."
British clients accounted for about 12 percent of MGM's 360 sales this year, compared with 18 percent of 420 sales in 2007.
"The British are the drivers in the market because as soon as they buy, the French see it and start to get interested," Mingeon said. "They gave the system its dynamism."
The British economy shrank 0.6 percent in the third quarter, the worst decline since 1990, while the European Central Bank predicts that the euro region, which comprises 15 countries, will contract 0.5 percent next year.
In Chamonix, 88 kilometers, or 55 miles, from Geneva, the pound's "crippling" decline is making it more difficult to attract Britons, said Simon Warren of Agence Montagne, a real estate company in the town.
"Our biggest problem is that nobody needs a chalet in the Alps," Warren said as he surveyed the plat du jour of Thai chicken at Chambre Neuf, a bar opposite Chamonix train station. "It's the ultimate discretionary spend."
Chamonix, which hosted the first Winter Olympics in 1924, lies in a valley encircled by snow-clad peaks.
The town's population of 9,000 increases 10-fold during the winter as skiers seek such attractions as the Vallée Blanche, a 20-kilometer descent on a snow-covered glacier from the Aiguille du Midi, which has an elevation of 3,842 meters, or 12,600 feet.
Heavy snowfalls, with more than a meter lying on the upper slopes of Chamonix and a neighboring Swiss resort, Verbier, are fueling early-season bookings, said Marion Telsnig, spokeswoman for Britain's biggest ski-tour operator, Crystal Holidays.
"Bookings screeched to a halt in September and October with the financial crisis," Telsnig said.
Telsnig said that more skiers were opting for self-catering vacations and that reservations "have recovered with the snow."
Reservations later this season are down, she said. Chamonix properties that used to sell within two months are still unsold after six months, said Widdicombe, the Agence des Alpes broker, who has lived in the town for five years.
Among the properties that Widdicombe is trying to sell is a four-bedroom, wood-clad chalet near the center of Chamonix for €1.35 million. That works out at €6,200 per square meter, below the €7,000 to €8,000 that was previously the base for sellers in Chamonix.
The budgets of buyers have dropped to an average of about €500,000 from €700,000 a year ago, he said. The market may worsen further.
"Some U.K. buyers may be forced to liquidate their property assets," Widdicombe said as he drove through a snow-lined hamlet within sight of the Bossons glacier.
This that may push other sellers to reduce their prices, he said.
Back at his chalet, Morgans said he hoped that the credit markets would ease enough to tempt a buyer soon.
"I told myself I'd give it 6 to 10 years in Chamonix," he said. "It's a great place to live, but any longer than that and the risk is you become a perpetual ski bum."
*****************
French shareholders want list of Madoff losses
The Associated Press
Thursday, December 25, 2008
PARIS: A group of French shareholders is pressing the government to release a list of French funds exposed to losses from alleged fraud by Wall Street money manager Bernard Madoff.
SOS Petits Porteurs, or SOS Small Shareholders, said in a statement Wednesday that it has asked the French Finance Ministry to provide a list of French funds "contaminated by the Madoff virus."
"The public at large has the right to know," the statement said.
The group says many depositors are complaining that fund managers are refusing to discuss their potential losses or exposure to Madoff-related investments.
Madoff was arrested Dec. 11 in what prosecutors say was a $50 billion scheme to defraud investors. Leading French banks, including BNP Paribas and Natixis, have estimated their exposure to his activities at more than $1 billion.
The French market regulator, the AMF, has estimated the total exposure of French mutual funds at €500 million, or $700 million. The AMF said in a statement Dec. 18 that the majority of those funds were available only to institutional investors or very wealthy clients - not the general public.
The AMF urged French fund managers to alert their clients about any Madoff-related investments, but said it was not compiling a list of affected French mutual funds.
Members of France's elite have already been touched by the affair. Police say distinguished French investor Thierry Magon de La Villehuchet committed suicide in New York on Monday after losing more than $1 billion of his clients' money in Madoff's alleged fraud.
The Associated Press
Thursday, December 25, 2008
PARIS: A group of French shareholders is pressing the government to release a list of French funds exposed to losses from alleged fraud by Wall Street money manager Bernard Madoff.
SOS Petits Porteurs, or SOS Small Shareholders, said in a statement Wednesday that it has asked the French Finance Ministry to provide a list of French funds "contaminated by the Madoff virus."
"The public at large has the right to know," the statement said.
The group says many depositors are complaining that fund managers are refusing to discuss their potential losses or exposure to Madoff-related investments.
Madoff was arrested Dec. 11 in what prosecutors say was a $50 billion scheme to defraud investors. Leading French banks, including BNP Paribas and Natixis, have estimated their exposure to his activities at more than $1 billion.
The French market regulator, the AMF, has estimated the total exposure of French mutual funds at €500 million, or $700 million. The AMF said in a statement Dec. 18 that the majority of those funds were available only to institutional investors or very wealthy clients - not the general public.
The AMF urged French fund managers to alert their clients about any Madoff-related investments, but said it was not compiling a list of affected French mutual funds.
Members of France's elite have already been touched by the affair. Police say distinguished French investor Thierry Magon de La Villehuchet committed suicide in New York on Monday after losing more than $1 billion of his clients' money in Madoff's alleged fraud.
Harold Pinter, playwright of the pause, dies at 78
By Mel Gussow and Ben Brantley
Friday, December 26, 2008
Harold Pinter, the British playwright whose gifts for finding the ominous in the everyday and the noise within silence made him the most influential and imitated dramatist of his generation, died on Wednesday. He was 78 and lived in London.
The cause was cancer, his wife, Lady Antonia Fraser, said Thursday.
Pinter learned he had cancer of the esophagus in late 2001. In 2005, when he received the Nobel Prize in Literature, he was unable to attend the awards ceremony at the Swedish Academy in Stockholm but delivered an acceptance speech from a wheelchair in a recorded video.
In more than 30 plays — written between 1957 and 2000 and including masterworks like "The Birthday Party," "The Caretaker," "The Homecoming" and "Betrayal" — Pinter captured the anxiety and ambiguity of life in the second half of the 20th century with terse, hypnotic dialogue filled with gaping pauses and the prospect of imminent violence.
Along with another Nobel winner, Samuel Beckett, his friend and mentor, Pinter became one of the few modern playwrights whose names instantly evoke a sensibility. The adjective Pinteresque has become part of the cultural vocabulary as a byword for strong and unspecified menace.
An actor, essayist, screenwriter, poet and director as well as a dramatist, Pinter was also publicly outspoken in his views on repression and censorship, at home and abroad. He used his Nobel acceptance speech to denounce American foreign policy, saying that the United States had not only lied to justify waging war against Iraq, but that it had also "supported and in many cases engendered every right-wing military dictatorship" in the last 50 years.
His political views were implicit in much of his work. Though his plays deal with the slipperiness of memory and human character, they are also almost always about the struggle for power.
The dynamic in his work is rooted in battles for control, turf wars waged in locations that range from working-class boarding houses (in his first produced play, "The Room," from 1957) to upscale restaurants (the setting for "Celebration," staged in 2000). His plays often take place in a single, increasingly claustrophobic room, where conversation is a minefield and even innocuous-seeming words can wound.
In Pinter's work "words are weapons that the characters use to discomfort or destroy each other," said Peter Hall, who has staged more of Pinter's plays than any other director.
But while Pinter's linguistic agility turned simple, sometimes obscene, words into dark, glittering and often mordantly funny poetry, it is what comes between the words that he is most famous for. And the stage direction "pause" would haunt him throughout his career.
Intended as an instructive note to actors, the Pinter pause was a space for emphasis and breathing room. But it could also be as threatening as a raised fist. Pinter said that writing the word "pause" into his first play was "a fatal error." It is certainly the aspect of his writing that has been most parodied. But no other playwright has consistently used pauses with such rhythmic assurance and to such fine-tuned manipulative effect.
Early in his career Pinter said his work was about "the weasel under the cocktail cabinet." Though he later regretted the image, it holds up as a metaphor for the undertow of danger that pervades his work. As Martin Esslin wrote in his book "Pinter: The Playwright," "Man's existential fear, not as an abstraction, but as something real, ordinary and acceptable as an everyday occurrence — here we have the core of Pinter's work as a dramatist."
Though often grouped with Beckett and others as a practitioner of Theater of the Absurd, Pinter considered himself a realist. In 1962 he said the context of his plays was always "concrete and particular." He never found a need to alter that assessment.
Beginning in the late 1950s, John Osborne and Pinter helped to turn British theater away from the gentility of the drawing room. With "Look Back in Anger," Osborne opened the door for several succeeding generations of angry young men, who railed against the class system and an ineffectual government. Pinter was to have the more lasting effect as an innovator and a stylist. And his influence on other playwrights, including David Mamet in the United States and Patrick Marber and Jez Butterworth in England, is undeniable.
The playwright Tom Stoppard said that before Pinter: "One thing plays had in common: you were supposed to believe what people said up there. If somebody comes in and says, 'Tea or coffee?' and the answer is 'Tea,' you are entitled to assume that somebody is offered a choice of two drinks, and the second person has stated a preference." With Pinter there are alternatives, "such as the man preferred coffee but the other person wished him to have tea," Stoppard said, "or that he preferred the stuff you make from coffee beans under the impression that it was called tea."
As another British playwright, David Hare, said of Pinter, "The essence of his singular appeal is that you sit down to every play or film he writes in certain expectation of the unexpected."
Though initially regarded as an intuitive rather than an intellectual playwright, Pinter was in fact both. His plays are dense with references to writers like James Joyce and T. S. Eliot. The annual Pinter Review, in which scholars probe and parse his works for meaning and metaphor, is one of many indications of his secure berth in academia.
Politics Inside the Plays
While it was not immediately apparent, Pinter was always a writer with a political sensibility, which became overt in later plays like "One for the Road" (1984) and "Mountain Language" (1988). These works, having to do "not with ambiguities of power, but actual power," he said, were written out of "very cold anger."
He and his wife hosted gatherings in their Holland Park town house for liberal political seminars. Known as the June 20th Society, the participants included Hare, Ian McEwan, Michael Holroyd, John Mortimer, Salman Rushdie and Germaine Greer. In their discussions Pinter expressed the great struggle of the mid-20th century as one between "primitive rage" and "liberal generosity," Hare said.
Through the years Pinter became known, especially to the British news media, for having a prickly personality. "There is a violence in me," Pinter once said, "but I don't walk around looking for trouble." The director Richard Eyre said in a testimonial book published for Pinter's 70th birthday that he was "sometimes pugnacious and occasionally splenetic" but "just as often droll and generous — particularly to actors, directors and (a rare quality this) other writers."
Harold Pinter was born in Hackney in the East End of London on Oct. 10, 1930. His father, Jack, was a tailor; his mother, Frances, a homemaker. Pinter's grandparents had emigrated to England from Eastern Europe. His parents, he said, were "very solid, very respectable, Jewish, lower-middle-class people."
With the outbreak of World War II in 1939, Harold, an only child, was evacuated from London to a provincial town in Cornwall. His feelings of loneliness and isolation from that time were to surface later in his plays. When he was 13, he returned to London and was there during the Blitz when his house was struck by a bomb. He rushed inside to rescue a few valuable possessions: his cricket bat and a poem — "a paean of love" — he was writing to a girlfriend.
Sports, poetry and his relationships with women were to remain important to him. Vigorously athletic, he was a fierce competitor in cricket and tennis. Ian Smith, an Oxford don and cricket teammate, equated Pinter's art with his bold style of playing cricket. "Everything is focused," he said. "It's about performance and economy of gesture."
Poetry and Pacifism
Pinter grew up on a diet of American gangster movies and British war films. From the first he was a great reader and a hopeful poet, with strong political judgments. When he was called up for military service at 18, as a pacifist he refused to serve.
In diverse ways he remained a conscientious objector in the years to come, echoing a line in "The Birthday Party," in which Stanley, a lodger in a seaside boarding house, is suddenly taken away by two strangers to some ominous future as a friend cries out, "Stan, don't let them tell you what to do!" Years later, Pinter said he had lived that line all his life.
Pinter's first poem was published in a magazine called Poetry London when he was 20. Soon afterward he completed a novel, "The Dwarfs." After studying at the Royal Academy of Dramatic Art and the Central School of Speech and Drama, he signed on with a repertory company and, performing under the name David Baron, toured Ireland in plays by Shakespeare and others, often in villainous roles like Iago.
In 1955, at a party in London, Pinter was struck by what he referred to as "an odd image." A little man, who later turned out to be the writer and professional eccentric Quentin Crisp, was making bacon and eggs for a large man who was sitting at a table reading the comics. Pinter told his friend Henry Woolf about the incident and said he thought he might write a play about it. The next year Woolf, then a graduate student at the University of Bristol, asked him if he could write that play for a group of drama students.
The resulting work, "The Room," was Pinter's first play. And with its story of mysterious intruders and its elliptical speech, it showed that Pinter had already found his voice as a dramatist. It opened in Bristol on May 15, 1957, and was restaged three years later at the Hampstead Theater Club in London.
In 1956 Pinter married Vivien Merchant, an actress in the company. After their son, Daniel, was born in 1958, they moved to the Chiswick section of London. He wrote "The Birthday Party," his first full-length play, drawing on his memories of touring as an actor in Eastbourne, on Britain's south coast.
The Pinters, who were temporarily unemployed and desperately poor, had an offer to act in Birmingham, and Merchant wanted to accept it. But Pinter said: "I have this play opening in London. I think I must stay. Something's going to happen." She replied, "What makes you think so?"
They turned down the acting offer. "The Birthday Party" opened in the West End in 1958 and received disastrous reviews. Then, prodded by the theatrical agent Peggy Ramsay, Harold Hobson, the eminent critic of The Sunday Times of London, came to see it at a matinee. What he wrote turned out to be a life-changing review.
"It breathes in the air," Hobson wrote. "It cannot be seen, but it enters the room every time the door is opened." He continued: "Though you go to the uttermost parts of the earth, and hide yourself in the most obscure lodgings in the least popular of towns, one day there is a possibility that two men will appear. They will be looking for you, and you cannot get away. And someone will be looking for them too. There is terror everywhere." He concluded, "Mr. Pinter, on the evidence of this work, possesses the most original, disturbing and arresting talent in theatrical London."
Despite that review the play closed that weekend. By contrast Pinter's next full-length play to be produced, "The Caretaker," which opened in London in 1960, was a dazzling critical success. "Suddenly everything went topsy-turvy," Pinter said.
In that play two brothers live in a seedy house in London and, for inexplicable reasons, invite a homeless man named Davies to share their quarters and to act as a kind of custodian. Michael Billington, a critic for The Guardian and Pinter's biographer, has called the play "an austere masterpiece: a universally recognizable play about political maneuvering, fraternal love, spiritual isolation, language as a negotiating weapon or a form of cover-up."
Pinter's next play, "The Homecoming," opened in London in June 1965, in a Royal Shakespeare Company production directed by Hall. The story of an all-male family headed by a Lear-like father and the woman ( Merchant, who starred in many of his plays) who enters and disrupts their domain scored a major success in London. Though it received a mixed reception in New York, "The Homecoming" won a Tony Award as best play and had a long run on Broadway.
A Shift of Focus
After these first three full-length plays — all stories of raffish characters in shabby environments — Pinter shifted his focus. His next three dramas were set in the worlds of art and publishing: "Old Times" (1971), "No Man's Land" (1975) and "Betrayal" (1978), all studies of the unreliability of memory and the uncertainty of love. In "Old Times" a husband and wife encounter a woman they may or may not have known in the past.
In "No Man's Land" a faded poet visits a wealthy patron for an evening of recollection and gamesmanship, roles played in the original production by John Gielgud and Ralph Richardson, who repeated their performances in New York the next year. The elegant "Betrayal" is a play about marriage and duplicity and, despite its use of reverse chronology, is among Pinter's most accessible works. It was made into a 1982 film starring Jeremy Irons, Ben Kingsley and Patricia Hodge.
During the run of "No Man's Land" Pinter began an affair with Lady Antonia Fraser, the biographer and historian, who was then married to Hugh Fraser, a conservative politician. In 1980 Pinter and Lady Antonia were married, with Pinter becoming the substitute paterfamilias of an extended family.
In addition to his wife, his survivors include his son, Daniel, and his stepchildren, Benjamin, Damian, Orlando, Rebecca, Flora and Natasha. Years ago his son changed his last name to Brand, his maternal grandmother's maiden name. He had been estranged from his father, living as a recluse in Cambridgeshire.
After "Betrayal" Pinter's plays became shorter (like "A Kind of Alaska") and then, for about three years, they stopped. "Something gnaws away," he explained, "the desire to write something and the inability to do so." He added, "I think I was getting more and more imbedded in international issues."
At the same time he continued his involvement in films, highlighted by his close collaboration as screenwriter with the director Joseph Losey, which began in 1963 with "The Servant," a depiction of class relations in Britain. That was followed in 1967 by "Accident," about a professor infatuated with a student ( Pinter and Merchant each had minor parts), and "The Go-Between" (1971), about a boy's complicity in an adult affair in turn of the century Britain, with Julie Christie and Alan Bates.
His many screenplays for other directors include "The Pumpkin Eater" (1964), about a woman (Anne Bancroft) drifting through multiple marriages, directed by Jack Clayton; "The Last Tycoon," Elia Kazan's 1976 adaptation of the Fitzgerald novel; and "The French Lieutenant's Woman" (1981), a Karel Reisz film with Meryl Streep and Irons.
With his plays "Moonlight" (a portrait of family relationships undermined by years of divisiveness) and "Ashes to Ashes" (a story of "torturers and victims" reflected in a typically uncommunicative marriage), Pinter returned to the longer, somberly meditative form.
His final work, "Celebration" (2000), is a wry look at power-conscious couples dining in a chic restaurant that bears a striking resemblance to the Ivy, a famous theater gathering place in London. "Celebration" was inspired by the playwright's early days as an unemployed actor, when he took a job as a busboy at the National Liberal Club. Because he dared to intrude on a conversation among several diners, he was fired.
The Writer as Director
He often directed plays by others, especially those by Simon Gray ("Butley," "Otherwise Engaged"), and occasionally his own work. Increasingly and with greater zeal he appeared as an actor — onstage with Paul Eddington in "No Man's Land" and in films like "Mojo," "Mansfield Park" and "The Tailor of Panama." Throughout his life he specialized in playing menacing characters, including several in his own plays ("The Hothouse," "One for the Road").
In July 2001 the highlight of the Lincoln Center Festival in New York was the presentation of nine Pinter plays, including a revival of "The Homecoming," and a pairing of his first and last plays, "The Room" and "Celebration." Pinter participated as a director and also acted in "One for the Road" in the role of a dapper and sadistic government interrogator.
The Pinter festival was the capstone of a season that, in London, featured the premiere at the National Theater of a stage version of his film script for "Remembrance of Things Past." Late in 2001 he directed an acclaimed revival of "No Man's Land," starring John Wood and Corin Redgrave at the National Theater.
In December 2001, during a routine medical examination, he was found to have cancer of the esophagus. In January 2002, while undergoing treatment, he acted in his brief comic sketch "Press Conference" at the National Theater in a malicious role as a minister of culture who was formerly the head of the secret police. In 2006 he appeared in a weeklong, sold-out production of Beckett's one-man play, "Krapp's Last Tape," at the Royal Court Theater.
"Pinter looks anxiously over his left shoulder into the darkness as if he felt death's presence in the room," Billington of The Guardian wrote. "It is impossible to dissociate Pinter's own recent encounters with mortality from that of the character."
Revivals of Pinter's work have become increasingly frequent in recent years. Last December an acclaimed production of his "Homecoming" opened on Broadway.
Pinter said he thought of theater as essentially exploratory. "Even old Sophocles didn't know what was going to happen next," he said. "He had to find his way through unknown territory. At the same time, theater has always been a critical act, looking in a broad sense at the society in which we live and attempting to reflect and dramatize these findings. We're not talking about the moon."
Speaking about his intuitive sense of writing, he said, "I find at the end of the journey, which of course is never ending, that I have found things out."
"I don't go away and say: 'I have illuminated myself. You see before you a changed person,' " he added. "It's a more surreptitious sense of discovery that happens to the writer himself."
Few writers have been so consistent over so many years in the tone and execution of their work. Just before rehearsals began for the West End production of "The Birthday Party" half a century ago, Pinter sent a letter to his director, Peter Wood. In it he said, "The play dictated itself, but I confess that I wrote it — with intent, maliciously, purposefully, in command of its growth."
He added: "The play is a comedy because the whole state of affairs is absurd and inglorious. It is, however, as you know, a very serious piece of work."
By Mel Gussow and Ben Brantley
Friday, December 26, 2008
Harold Pinter, the British playwright whose gifts for finding the ominous in the everyday and the noise within silence made him the most influential and imitated dramatist of his generation, died on Wednesday. He was 78 and lived in London.
The cause was cancer, his wife, Lady Antonia Fraser, said Thursday.
Pinter learned he had cancer of the esophagus in late 2001. In 2005, when he received the Nobel Prize in Literature, he was unable to attend the awards ceremony at the Swedish Academy in Stockholm but delivered an acceptance speech from a wheelchair in a recorded video.
In more than 30 plays — written between 1957 and 2000 and including masterworks like "The Birthday Party," "The Caretaker," "The Homecoming" and "Betrayal" — Pinter captured the anxiety and ambiguity of life in the second half of the 20th century with terse, hypnotic dialogue filled with gaping pauses and the prospect of imminent violence.
Along with another Nobel winner, Samuel Beckett, his friend and mentor, Pinter became one of the few modern playwrights whose names instantly evoke a sensibility. The adjective Pinteresque has become part of the cultural vocabulary as a byword for strong and unspecified menace.
An actor, essayist, screenwriter, poet and director as well as a dramatist, Pinter was also publicly outspoken in his views on repression and censorship, at home and abroad. He used his Nobel acceptance speech to denounce American foreign policy, saying that the United States had not only lied to justify waging war against Iraq, but that it had also "supported and in many cases engendered every right-wing military dictatorship" in the last 50 years.
His political views were implicit in much of his work. Though his plays deal with the slipperiness of memory and human character, they are also almost always about the struggle for power.
The dynamic in his work is rooted in battles for control, turf wars waged in locations that range from working-class boarding houses (in his first produced play, "The Room," from 1957) to upscale restaurants (the setting for "Celebration," staged in 2000). His plays often take place in a single, increasingly claustrophobic room, where conversation is a minefield and even innocuous-seeming words can wound.
In Pinter's work "words are weapons that the characters use to discomfort or destroy each other," said Peter Hall, who has staged more of Pinter's plays than any other director.
But while Pinter's linguistic agility turned simple, sometimes obscene, words into dark, glittering and often mordantly funny poetry, it is what comes between the words that he is most famous for. And the stage direction "pause" would haunt him throughout his career.
Intended as an instructive note to actors, the Pinter pause was a space for emphasis and breathing room. But it could also be as threatening as a raised fist. Pinter said that writing the word "pause" into his first play was "a fatal error." It is certainly the aspect of his writing that has been most parodied. But no other playwright has consistently used pauses with such rhythmic assurance and to such fine-tuned manipulative effect.
Early in his career Pinter said his work was about "the weasel under the cocktail cabinet." Though he later regretted the image, it holds up as a metaphor for the undertow of danger that pervades his work. As Martin Esslin wrote in his book "Pinter: The Playwright," "Man's existential fear, not as an abstraction, but as something real, ordinary and acceptable as an everyday occurrence — here we have the core of Pinter's work as a dramatist."
Though often grouped with Beckett and others as a practitioner of Theater of the Absurd, Pinter considered himself a realist. In 1962 he said the context of his plays was always "concrete and particular." He never found a need to alter that assessment.
Beginning in the late 1950s, John Osborne and Pinter helped to turn British theater away from the gentility of the drawing room. With "Look Back in Anger," Osborne opened the door for several succeeding generations of angry young men, who railed against the class system and an ineffectual government. Pinter was to have the more lasting effect as an innovator and a stylist. And his influence on other playwrights, including David Mamet in the United States and Patrick Marber and Jez Butterworth in England, is undeniable.
The playwright Tom Stoppard said that before Pinter: "One thing plays had in common: you were supposed to believe what people said up there. If somebody comes in and says, 'Tea or coffee?' and the answer is 'Tea,' you are entitled to assume that somebody is offered a choice of two drinks, and the second person has stated a preference." With Pinter there are alternatives, "such as the man preferred coffee but the other person wished him to have tea," Stoppard said, "or that he preferred the stuff you make from coffee beans under the impression that it was called tea."
As another British playwright, David Hare, said of Pinter, "The essence of his singular appeal is that you sit down to every play or film he writes in certain expectation of the unexpected."
Though initially regarded as an intuitive rather than an intellectual playwright, Pinter was in fact both. His plays are dense with references to writers like James Joyce and T. S. Eliot. The annual Pinter Review, in which scholars probe and parse his works for meaning and metaphor, is one of many indications of his secure berth in academia.
Politics Inside the Plays
While it was not immediately apparent, Pinter was always a writer with a political sensibility, which became overt in later plays like "One for the Road" (1984) and "Mountain Language" (1988). These works, having to do "not with ambiguities of power, but actual power," he said, were written out of "very cold anger."
He and his wife hosted gatherings in their Holland Park town house for liberal political seminars. Known as the June 20th Society, the participants included Hare, Ian McEwan, Michael Holroyd, John Mortimer, Salman Rushdie and Germaine Greer. In their discussions Pinter expressed the great struggle of the mid-20th century as one between "primitive rage" and "liberal generosity," Hare said.
Through the years Pinter became known, especially to the British news media, for having a prickly personality. "There is a violence in me," Pinter once said, "but I don't walk around looking for trouble." The director Richard Eyre said in a testimonial book published for Pinter's 70th birthday that he was "sometimes pugnacious and occasionally splenetic" but "just as often droll and generous — particularly to actors, directors and (a rare quality this) other writers."
Harold Pinter was born in Hackney in the East End of London on Oct. 10, 1930. His father, Jack, was a tailor; his mother, Frances, a homemaker. Pinter's grandparents had emigrated to England from Eastern Europe. His parents, he said, were "very solid, very respectable, Jewish, lower-middle-class people."
With the outbreak of World War II in 1939, Harold, an only child, was evacuated from London to a provincial town in Cornwall. His feelings of loneliness and isolation from that time were to surface later in his plays. When he was 13, he returned to London and was there during the Blitz when his house was struck by a bomb. He rushed inside to rescue a few valuable possessions: his cricket bat and a poem — "a paean of love" — he was writing to a girlfriend.
Sports, poetry and his relationships with women were to remain important to him. Vigorously athletic, he was a fierce competitor in cricket and tennis. Ian Smith, an Oxford don and cricket teammate, equated Pinter's art with his bold style of playing cricket. "Everything is focused," he said. "It's about performance and economy of gesture."
Poetry and Pacifism
Pinter grew up on a diet of American gangster movies and British war films. From the first he was a great reader and a hopeful poet, with strong political judgments. When he was called up for military service at 18, as a pacifist he refused to serve.
In diverse ways he remained a conscientious objector in the years to come, echoing a line in "The Birthday Party," in which Stanley, a lodger in a seaside boarding house, is suddenly taken away by two strangers to some ominous future as a friend cries out, "Stan, don't let them tell you what to do!" Years later, Pinter said he had lived that line all his life.
Pinter's first poem was published in a magazine called Poetry London when he was 20. Soon afterward he completed a novel, "The Dwarfs." After studying at the Royal Academy of Dramatic Art and the Central School of Speech and Drama, he signed on with a repertory company and, performing under the name David Baron, toured Ireland in plays by Shakespeare and others, often in villainous roles like Iago.
In 1955, at a party in London, Pinter was struck by what he referred to as "an odd image." A little man, who later turned out to be the writer and professional eccentric Quentin Crisp, was making bacon and eggs for a large man who was sitting at a table reading the comics. Pinter told his friend Henry Woolf about the incident and said he thought he might write a play about it. The next year Woolf, then a graduate student at the University of Bristol, asked him if he could write that play for a group of drama students.
The resulting work, "The Room," was Pinter's first play. And with its story of mysterious intruders and its elliptical speech, it showed that Pinter had already found his voice as a dramatist. It opened in Bristol on May 15, 1957, and was restaged three years later at the Hampstead Theater Club in London.
In 1956 Pinter married Vivien Merchant, an actress in the company. After their son, Daniel, was born in 1958, they moved to the Chiswick section of London. He wrote "The Birthday Party," his first full-length play, drawing on his memories of touring as an actor in Eastbourne, on Britain's south coast.
The Pinters, who were temporarily unemployed and desperately poor, had an offer to act in Birmingham, and Merchant wanted to accept it. But Pinter said: "I have this play opening in London. I think I must stay. Something's going to happen." She replied, "What makes you think so?"
They turned down the acting offer. "The Birthday Party" opened in the West End in 1958 and received disastrous reviews. Then, prodded by the theatrical agent Peggy Ramsay, Harold Hobson, the eminent critic of The Sunday Times of London, came to see it at a matinee. What he wrote turned out to be a life-changing review.
"It breathes in the air," Hobson wrote. "It cannot be seen, but it enters the room every time the door is opened." He continued: "Though you go to the uttermost parts of the earth, and hide yourself in the most obscure lodgings in the least popular of towns, one day there is a possibility that two men will appear. They will be looking for you, and you cannot get away. And someone will be looking for them too. There is terror everywhere." He concluded, "Mr. Pinter, on the evidence of this work, possesses the most original, disturbing and arresting talent in theatrical London."
Despite that review the play closed that weekend. By contrast Pinter's next full-length play to be produced, "The Caretaker," which opened in London in 1960, was a dazzling critical success. "Suddenly everything went topsy-turvy," Pinter said.
In that play two brothers live in a seedy house in London and, for inexplicable reasons, invite a homeless man named Davies to share their quarters and to act as a kind of custodian. Michael Billington, a critic for The Guardian and Pinter's biographer, has called the play "an austere masterpiece: a universally recognizable play about political maneuvering, fraternal love, spiritual isolation, language as a negotiating weapon or a form of cover-up."
Pinter's next play, "The Homecoming," opened in London in June 1965, in a Royal Shakespeare Company production directed by Hall. The story of an all-male family headed by a Lear-like father and the woman ( Merchant, who starred in many of his plays) who enters and disrupts their domain scored a major success in London. Though it received a mixed reception in New York, "The Homecoming" won a Tony Award as best play and had a long run on Broadway.
A Shift of Focus
After these first three full-length plays — all stories of raffish characters in shabby environments — Pinter shifted his focus. His next three dramas were set in the worlds of art and publishing: "Old Times" (1971), "No Man's Land" (1975) and "Betrayal" (1978), all studies of the unreliability of memory and the uncertainty of love. In "Old Times" a husband and wife encounter a woman they may or may not have known in the past.
In "No Man's Land" a faded poet visits a wealthy patron for an evening of recollection and gamesmanship, roles played in the original production by John Gielgud and Ralph Richardson, who repeated their performances in New York the next year. The elegant "Betrayal" is a play about marriage and duplicity and, despite its use of reverse chronology, is among Pinter's most accessible works. It was made into a 1982 film starring Jeremy Irons, Ben Kingsley and Patricia Hodge.
During the run of "No Man's Land" Pinter began an affair with Lady Antonia Fraser, the biographer and historian, who was then married to Hugh Fraser, a conservative politician. In 1980 Pinter and Lady Antonia were married, with Pinter becoming the substitute paterfamilias of an extended family.
In addition to his wife, his survivors include his son, Daniel, and his stepchildren, Benjamin, Damian, Orlando, Rebecca, Flora and Natasha. Years ago his son changed his last name to Brand, his maternal grandmother's maiden name. He had been estranged from his father, living as a recluse in Cambridgeshire.
After "Betrayal" Pinter's plays became shorter (like "A Kind of Alaska") and then, for about three years, they stopped. "Something gnaws away," he explained, "the desire to write something and the inability to do so." He added, "I think I was getting more and more imbedded in international issues."
At the same time he continued his involvement in films, highlighted by his close collaboration as screenwriter with the director Joseph Losey, which began in 1963 with "The Servant," a depiction of class relations in Britain. That was followed in 1967 by "Accident," about a professor infatuated with a student ( Pinter and Merchant each had minor parts), and "The Go-Between" (1971), about a boy's complicity in an adult affair in turn of the century Britain, with Julie Christie and Alan Bates.
His many screenplays for other directors include "The Pumpkin Eater" (1964), about a woman (Anne Bancroft) drifting through multiple marriages, directed by Jack Clayton; "The Last Tycoon," Elia Kazan's 1976 adaptation of the Fitzgerald novel; and "The French Lieutenant's Woman" (1981), a Karel Reisz film with Meryl Streep and Irons.
With his plays "Moonlight" (a portrait of family relationships undermined by years of divisiveness) and "Ashes to Ashes" (a story of "torturers and victims" reflected in a typically uncommunicative marriage), Pinter returned to the longer, somberly meditative form.
His final work, "Celebration" (2000), is a wry look at power-conscious couples dining in a chic restaurant that bears a striking resemblance to the Ivy, a famous theater gathering place in London. "Celebration" was inspired by the playwright's early days as an unemployed actor, when he took a job as a busboy at the National Liberal Club. Because he dared to intrude on a conversation among several diners, he was fired.
The Writer as Director
He often directed plays by others, especially those by Simon Gray ("Butley," "Otherwise Engaged"), and occasionally his own work. Increasingly and with greater zeal he appeared as an actor — onstage with Paul Eddington in "No Man's Land" and in films like "Mojo," "Mansfield Park" and "The Tailor of Panama." Throughout his life he specialized in playing menacing characters, including several in his own plays ("The Hothouse," "One for the Road").
In July 2001 the highlight of the Lincoln Center Festival in New York was the presentation of nine Pinter plays, including a revival of "The Homecoming," and a pairing of his first and last plays, "The Room" and "Celebration." Pinter participated as a director and also acted in "One for the Road" in the role of a dapper and sadistic government interrogator.
The Pinter festival was the capstone of a season that, in London, featured the premiere at the National Theater of a stage version of his film script for "Remembrance of Things Past." Late in 2001 he directed an acclaimed revival of "No Man's Land," starring John Wood and Corin Redgrave at the National Theater.
In December 2001, during a routine medical examination, he was found to have cancer of the esophagus. In January 2002, while undergoing treatment, he acted in his brief comic sketch "Press Conference" at the National Theater in a malicious role as a minister of culture who was formerly the head of the secret police. In 2006 he appeared in a weeklong, sold-out production of Beckett's one-man play, "Krapp's Last Tape," at the Royal Court Theater.
"Pinter looks anxiously over his left shoulder into the darkness as if he felt death's presence in the room," Billington of The Guardian wrote. "It is impossible to dissociate Pinter's own recent encounters with mortality from that of the character."
Revivals of Pinter's work have become increasingly frequent in recent years. Last December an acclaimed production of his "Homecoming" opened on Broadway.
Pinter said he thought of theater as essentially exploratory. "Even old Sophocles didn't know what was going to happen next," he said. "He had to find his way through unknown territory. At the same time, theater has always been a critical act, looking in a broad sense at the society in which we live and attempting to reflect and dramatize these findings. We're not talking about the moon."
Speaking about his intuitive sense of writing, he said, "I find at the end of the journey, which of course is never ending, that I have found things out."
"I don't go away and say: 'I have illuminated myself. You see before you a changed person,' " he added. "It's a more surreptitious sense of discovery that happens to the writer himself."
Few writers have been so consistent over so many years in the tone and execution of their work. Just before rehearsals began for the West End production of "The Birthday Party" half a century ago, Pinter sent a letter to his director, Peter Wood. In it he said, "The play dictated itself, but I confess that I wrote it — with intent, maliciously, purposefully, in command of its growth."
He added: "The play is a comedy because the whole state of affairs is absurd and inglorious. It is, however, as you know, a very serious piece of work."
*****************
Eartha Kitt, a seductive talent, dies at 81
By Rob Hoerberger
Friday, December 26, 2008
Eartha Kitt, who purred and pounced her way across Broadway stages, recording studios and movie and television screens in a show-business career that lasted more than six decades, died on Thursday. She was 81 and lived in Connecticut.
The cause was colon cancer, said her longtime publicist, Andrew Freedman.
Kitt, who began performing as a dancer in New York in the late '40s, went on to achieve success and acclaim in a variety of mediums long before other entertainment multitaskers like Julie Andrews, Barbra Streisand and Bette Midler. With her curvaceous frame and unabashed vocal come-ons, she was also, along with Lena Horne, among the first widely known African-American sex symbols. Orson Welles famously proclaimed her "the most exciting woman alive" in the early '50s, apparently just after that excitement prompted him to bite her onstage during a performance of "Time Runs," an adaptation of "Faust" in which Kitt played Helen of Troy.
Kitt's career-long persona, that of the seen-it-all sybarite, was set when she performed in Paris cabarets in her early 20s, singing songs that became her signatures like "C'est Si Bon" and "Love for Sale." Returning to New York, she was cast on Broadway in "New Faces of 1952" and added another jewel to her vocal crown, "Monotonous" ("Traffic has been known to stop for me/Prices even rise and drop for me/Harry Truman plays bop for me/Monotonous, monotone-ous"). Brooks Atkinson wrote in The New York Times in May 1952, "Eartha Kitt not only looks incendiary, but she can make a song burst into flame."
Shortly after that run, Kitt had her first best-selling albums and recorded her biggest hit, "Santa Baby," whose precise, come-hither diction and vaguely foreign inflections ( Kitt, a native of South Carolina, spoke four languages and sang in seven) proved that a vocal sizzle could be just as powerful as a bonfire. Though her record sales fell after the rise of rhythm and blues and rock 'n' roll in the mid- and late '50s, her singing style would later be the template for other singers with small-but-sensual voices like Diana Ross (who has said she patterned her Supremes sound and look largely after Kitt), Janet Jackson and Madonna, who recorded a cover version of "Santa Baby" in 1987. Kitt would later call herself "the original material girl," a reference not only to her stage creation but also to her string of romances with rich or famous men, including Welles, the cosmetics magnate Charles Revson and the banking heir John Barry Ryan 3rd. She was married to her one husband, Bill McDonald, a real-estate developer, from 1960 to 1965; their daughter, Kitt Shapiro, survives her, as do two grandchildren.
From practically the beginning of her career, as critics gushed over Kitt, they also began to describe her in every feline term imaginable: her voice "purred" or "was like catnip"; she was a "sex kitten" who "slinked" or was "on the prowl" across the stage, sometimes "flashing her claws." Her career has often been said to have had "nine lives." Appropriately enough, she was tapped to play Catwoman in the 1960s TV series "Batman," taking over the role from the leggier, lynxlike Julie Newmar and bringing to it a more feral, compact energy.
Yet for all the camp appeal and sexually charged hauteur of Kitt's cabaret act, she also played serious roles, appearing in the films "The Mark of the Hawk" with Sidney Poitier (1957) and "Anna Lucasta" (1959) with Sammy Davis Jr. She made numerous television appearances, including a guest spot on "I Spy" in 1965, which brought her her first Emmy nomination.
For these performances Kitt very likely drew on the hardship of her early life. She was born Eartha Mae Keith in North, South Carolina, on Jan. 17, 1927, a date she did not know until about 10 years ago, when she challenged students at Benedict College in Columbia, South Carolina, to find her birth certificate, and they did. She was the illegitimate child of a black Cherokee sharecropper mother and a white man about whom Kitt knew little. She worked in cotton fields and lived with a black family who, she said, abused her because she looked too white. "They called me yella gal," Kitt said.
At 8 she was sent to live in Harlem with an aunt, Marnie Kitt, who Kitt came to believe was really her biological mother. Though she was given piano and dance lessons, a pattern of abuse developed there as well: Kitt would be beaten, run away and return. By her early teenage years she was working in a factory and sleeping in subways and on the roofs of unlocked buildings. (She would later become an advocate, through Unicef, on behalf of homeless children.)
Her show-business break came on a lark, when a friend dared her to audition for the Katherine Dunham Dance Company. She passed the audition and permanently escaped the cycle of poverty and abuse that defined her life till then.
But she took the steeliness with her, in a willful, outspoken manner that mostly served her career, except once. In 1968 she was invited to a White House luncheon and was asked by Lady Bird Johnson about the Vietnam War. She replied: "You send the best of this country off to be shot and maimed. No wonder the kids rebel and take pot." The remark reportedly caused Johnson to burst into tears and led to the only derailment in Kitt's career. ( Kitt claimed that the CIA drafted a negative memo that referred to her as a nymphomaniac.)
As bookings dried up she was exiled to Europe for almost a decade. But President Jimmy Carter invited her back to the White House, and she earned her first Tony nomination for her work in "Timbuktu!," an all-black remake of "Kismet," in 1978.
By now a diva and legend, Kitt did what many other divas and legends — Shirley Bassey and Ethel Merman among them — did: she dabbled in dance music, scoring her biggest hit in 30 years with "Where Is My Man" in 1984, the same year she was roundly criticized for touring South Africa. Kitt was typically unapologetic; the tour, she said, played to integrated audiences and helped build schools for black children.
The third of her three autobiographies, "I'm Still Here: Confessions of Sex Kitten," was published in 1989, and she earned a Grammy nomination for "Back in Business," a collection of cabaret songs released in 1994.
As Kitt began the sixth decade of her career, she was as active as ever. In 2000 she received her second Tony nomination, for best featured actress in a musical in "The Wild Party." Branching out into children's programming, she won two daytime Emmy Awards, in 2007 and 2008, for outstanding performer in an animated program for her role as the scheming empress-wannabe Yzma in "The Emperor's New School." And all the while she remained a fixture on the cabaret circuit, having maintained her voice and shapely figure through a vigorous fitness regimen that included daily running and weight lifting. Even after discovering in 2006 that she had colon cancer, she triumphantly opened the newly renovated Café Carlyle in New York in September 2007. Stephen Holden, writing in The Times, said that Kitt's voice was "in full growl."
But though Kitt still seemed to have men of all ages wrapped around her fingers (she would often toy with younger worshipers at her shows by suggesting they introduce her to their fathers), the years had given her perspective. "I'm a dirt person," she told Ebony magazine in 1993. "I trust the dirt. I don't trust diamonds and gold."
By Rob Hoerberger
Friday, December 26, 2008
Eartha Kitt, who purred and pounced her way across Broadway stages, recording studios and movie and television screens in a show-business career that lasted more than six decades, died on Thursday. She was 81 and lived in Connecticut.
The cause was colon cancer, said her longtime publicist, Andrew Freedman.
Kitt, who began performing as a dancer in New York in the late '40s, went on to achieve success and acclaim in a variety of mediums long before other entertainment multitaskers like Julie Andrews, Barbra Streisand and Bette Midler. With her curvaceous frame and unabashed vocal come-ons, she was also, along with Lena Horne, among the first widely known African-American sex symbols. Orson Welles famously proclaimed her "the most exciting woman alive" in the early '50s, apparently just after that excitement prompted him to bite her onstage during a performance of "Time Runs," an adaptation of "Faust" in which Kitt played Helen of Troy.
Kitt's career-long persona, that of the seen-it-all sybarite, was set when she performed in Paris cabarets in her early 20s, singing songs that became her signatures like "C'est Si Bon" and "Love for Sale." Returning to New York, she was cast on Broadway in "New Faces of 1952" and added another jewel to her vocal crown, "Monotonous" ("Traffic has been known to stop for me/Prices even rise and drop for me/Harry Truman plays bop for me/Monotonous, monotone-ous"). Brooks Atkinson wrote in The New York Times in May 1952, "Eartha Kitt not only looks incendiary, but she can make a song burst into flame."
Shortly after that run, Kitt had her first best-selling albums and recorded her biggest hit, "Santa Baby," whose precise, come-hither diction and vaguely foreign inflections ( Kitt, a native of South Carolina, spoke four languages and sang in seven) proved that a vocal sizzle could be just as powerful as a bonfire. Though her record sales fell after the rise of rhythm and blues and rock 'n' roll in the mid- and late '50s, her singing style would later be the template for other singers with small-but-sensual voices like Diana Ross (who has said she patterned her Supremes sound and look largely after Kitt), Janet Jackson and Madonna, who recorded a cover version of "Santa Baby" in 1987. Kitt would later call herself "the original material girl," a reference not only to her stage creation but also to her string of romances with rich or famous men, including Welles, the cosmetics magnate Charles Revson and the banking heir John Barry Ryan 3rd. She was married to her one husband, Bill McDonald, a real-estate developer, from 1960 to 1965; their daughter, Kitt Shapiro, survives her, as do two grandchildren.
From practically the beginning of her career, as critics gushed over Kitt, they also began to describe her in every feline term imaginable: her voice "purred" or "was like catnip"; she was a "sex kitten" who "slinked" or was "on the prowl" across the stage, sometimes "flashing her claws." Her career has often been said to have had "nine lives." Appropriately enough, she was tapped to play Catwoman in the 1960s TV series "Batman," taking over the role from the leggier, lynxlike Julie Newmar and bringing to it a more feral, compact energy.
Yet for all the camp appeal and sexually charged hauteur of Kitt's cabaret act, she also played serious roles, appearing in the films "The Mark of the Hawk" with Sidney Poitier (1957) and "Anna Lucasta" (1959) with Sammy Davis Jr. She made numerous television appearances, including a guest spot on "I Spy" in 1965, which brought her her first Emmy nomination.
For these performances Kitt very likely drew on the hardship of her early life. She was born Eartha Mae Keith in North, South Carolina, on Jan. 17, 1927, a date she did not know until about 10 years ago, when she challenged students at Benedict College in Columbia, South Carolina, to find her birth certificate, and they did. She was the illegitimate child of a black Cherokee sharecropper mother and a white man about whom Kitt knew little. She worked in cotton fields and lived with a black family who, she said, abused her because she looked too white. "They called me yella gal," Kitt said.
At 8 she was sent to live in Harlem with an aunt, Marnie Kitt, who Kitt came to believe was really her biological mother. Though she was given piano and dance lessons, a pattern of abuse developed there as well: Kitt would be beaten, run away and return. By her early teenage years she was working in a factory and sleeping in subways and on the roofs of unlocked buildings. (She would later become an advocate, through Unicef, on behalf of homeless children.)
Her show-business break came on a lark, when a friend dared her to audition for the Katherine Dunham Dance Company. She passed the audition and permanently escaped the cycle of poverty and abuse that defined her life till then.
But she took the steeliness with her, in a willful, outspoken manner that mostly served her career, except once. In 1968 she was invited to a White House luncheon and was asked by Lady Bird Johnson about the Vietnam War. She replied: "You send the best of this country off to be shot and maimed. No wonder the kids rebel and take pot." The remark reportedly caused Johnson to burst into tears and led to the only derailment in Kitt's career. ( Kitt claimed that the CIA drafted a negative memo that referred to her as a nymphomaniac.)
As bookings dried up she was exiled to Europe for almost a decade. But President Jimmy Carter invited her back to the White House, and she earned her first Tony nomination for her work in "Timbuktu!," an all-black remake of "Kismet," in 1978.
By now a diva and legend, Kitt did what many other divas and legends — Shirley Bassey and Ethel Merman among them — did: she dabbled in dance music, scoring her biggest hit in 30 years with "Where Is My Man" in 1984, the same year she was roundly criticized for touring South Africa. Kitt was typically unapologetic; the tour, she said, played to integrated audiences and helped build schools for black children.
The third of her three autobiographies, "I'm Still Here: Confessions of Sex Kitten," was published in 1989, and she earned a Grammy nomination for "Back in Business," a collection of cabaret songs released in 1994.
As Kitt began the sixth decade of her career, she was as active as ever. In 2000 she received her second Tony nomination, for best featured actress in a musical in "The Wild Party." Branching out into children's programming, she won two daytime Emmy Awards, in 2007 and 2008, for outstanding performer in an animated program for her role as the scheming empress-wannabe Yzma in "The Emperor's New School." And all the while she remained a fixture on the cabaret circuit, having maintained her voice and shapely figure through a vigorous fitness regimen that included daily running and weight lifting. Even after discovering in 2006 that she had colon cancer, she triumphantly opened the newly renovated Café Carlyle in New York in September 2007. Stephen Holden, writing in The Times, said that Kitt's voice was "in full growl."
But though Kitt still seemed to have men of all ages wrapped around her fingers (she would often toy with younger worshipers at her shows by suggesting they introduce her to their fathers), the years had given her perspective. "I'm a dirt person," she told Ebony magazine in 1993. "I trust the dirt. I don't trust diamonds and gold."
******************
19 killed in explosion at apartment building in Ukraine
By Michael Schwirtz
Thursday, December 25, 2008
MOSCOW: At least 19 people were killed when an explosion tore through an apartment building in the Ukrainian Black Sea resort town of Yevpatoria, investigators said Thursday.
Rescuers were able to pull 21 people alive from the rubble of the building, a spokesman for the Ukrainian Emergency Situations Ministry said. It was unclear if more people were buried in the debris or what caused the blast, which occurred Wednesday night.
The ministry spokesman said rescuers had not yet made their way to the basement, where investigators think the explosion may have originated.
The Ukrainian minister for emergency situations, Volodymyr Shandra, told Ukrainian news media that investigators had ruled out a household gas explosion and were looking into whether faulty oxygen tanks stored in the building's basement had caused the blast, the Interfax news agency reported.
Interfax also cited residents from neighboring buildings, who said tenants from the building where the explosion occurred had repeatedly asked officials to remove oxygen and acetylene tanks from the building.
Explosions are not uncommon in aging apartment blocs throughout the former Soviet Union, and are typically caused by natural gas.
A natural gas explosion in October 2007 in the eastern Ukrainian city of Dnipropetrovsk killed more than 12 people.
By Michael Schwirtz
Thursday, December 25, 2008
MOSCOW: At least 19 people were killed when an explosion tore through an apartment building in the Ukrainian Black Sea resort town of Yevpatoria, investigators said Thursday.
Rescuers were able to pull 21 people alive from the rubble of the building, a spokesman for the Ukrainian Emergency Situations Ministry said. It was unclear if more people were buried in the debris or what caused the blast, which occurred Wednesday night.
The ministry spokesman said rescuers had not yet made their way to the basement, where investigators think the explosion may have originated.
The Ukrainian minister for emergency situations, Volodymyr Shandra, told Ukrainian news media that investigators had ruled out a household gas explosion and were looking into whether faulty oxygen tanks stored in the building's basement had caused the blast, the Interfax news agency reported.
Interfax also cited residents from neighboring buildings, who said tenants from the building where the explosion occurred had repeatedly asked officials to remove oxygen and acetylene tanks from the building.
Explosions are not uncommon in aging apartment blocs throughout the former Soviet Union, and are typically caused by natural gas.
A natural gas explosion in October 2007 in the eastern Ukrainian city of Dnipropetrovsk killed more than 12 people.
******************
David Rampe, 60, dies; veteran New York Times editor
Thursday, December 25, 2008
David Rampe, an editor on the foreign desk of The New York Times who helped shape the newspaper's coverage of the attacks on Sept. 11, 2001, and the wars in Afghanistan and Iraq, died Wednesday in New York. He was 60.
He went into cardiac arrest in Paris in January, resulting in severe brain damage, his partner, Ed Rogers, said.
As the foreign desk's weekend editor, Rampe also had an integral role in organizing the paper's coverage of the 2005 London terrorist bombings and the transition in the Vatican from Pope John Paul II to Benedict XVI. In 2004, he was assigned to Paris to coordinate The Times's coverage with the International Herald Tribune, its global edition, and help integrate the two newspapers' news operations.
Rampe worked for The Times for nearly three decades. He was previously an editor at The Wall Street Journal and, on one assignment, lived in Hong Kong while helping to introduce The Asian Wall Street Journal.
At The Times, he worked as an editor in the business section and in the Washington bureau. In the early 1990s, he was the founding editor of TimesFax (since renamed Times Digest), a digest of Times articles sent to resorts and hotels overseas and to cruise ships.
Thursday, December 25, 2008
David Rampe, an editor on the foreign desk of The New York Times who helped shape the newspaper's coverage of the attacks on Sept. 11, 2001, and the wars in Afghanistan and Iraq, died Wednesday in New York. He was 60.
He went into cardiac arrest in Paris in January, resulting in severe brain damage, his partner, Ed Rogers, said.
As the foreign desk's weekend editor, Rampe also had an integral role in organizing the paper's coverage of the 2005 London terrorist bombings and the transition in the Vatican from Pope John Paul II to Benedict XVI. In 2004, he was assigned to Paris to coordinate The Times's coverage with the International Herald Tribune, its global edition, and help integrate the two newspapers' news operations.
Rampe worked for The Times for nearly three decades. He was previously an editor at The Wall Street Journal and, on one assignment, lived in Hong Kong while helping to introduce The Asian Wall Street Journal.
At The Times, he worked as an editor in the business section and in the Washington bureau. In the early 1990s, he was the founding editor of TimesFax (since renamed Times Digest), a digest of Times articles sent to resorts and hotels overseas and to cruise ships.
*******************
MEANWHILE
A fish called Puntja
By Benjamin Svetkey
Thursday, December 25, 2008
My wife, Lenka, and I don't have anything against kids, but the responsibility of caring for another being, of holding the fate of a tiny defenseless soul in our shaky hands, always worried us. So a while back we got a fish.
We named him Puntja, which is the equivalent of Spot in Czech, my wife's native language. The word for Flipper was too hard for me to pronounce. We brought him home in a plastic baggie, and soon enough we were cooing into his bowl and fretting over the temperature of his water. That first night, I went online and was horrified to learn that his bowl was too small. So we drove back to the pet store and purchased a 10-gallon version. We also got a high-tech filtration system guaranteed to clean and recirculate Puntja's water every few hours, along with antibiotic tablets and various other goldfish medicines (just in case) and lots more plastic plants to decorate his big new bowl.
Lenka and I lavished an insane amount of affection on Puntja. I read that goldfish are as intelligent as dolphins, so I planted a large donut-shaped rock in his bowl and tried to teach him to swim through its hole. Lenka took pictures of him constantly, keeping a record of his growth. I pinned the shots up on my office wall, next to pictures of my family; she posted them on her MySpace page. We would sometimes catch each other hovering over Puntja's bowl, making cute fish faces and fish noises.
The little guy really had become part of the family. When we left him behind for a long Thanksgiving weekend at Big Sur, we spent the whole vacation worrying that his time-release food pellet would malfunction and he'd starve before we got home.
Then, one day right before Christmas, Lenka called me at the office, sounding stricken. "Something's wrong with Puntja," she said. "He's swimming upside down." When I got home Puntja was indeed doing a spastic backstroke. We decided to take him to the pet shop for a consultation, and we gingerly scooped him into his old, smaller bowl for the journey. With Puntja cradled in Lenka's lap, water splashing everywhere, I carefully drove the few miles to the store.
We were nearly there, waiting at a stoplight, when we got rear-ended by a limousine, smashing us into the SUV in front of us, squeezing our car like an accordion. The fish bowl hit Lenka in her face, cutting her lip, and the impact sent Puntja flying. When it was over, the car was totaled, my wife was bleeding and Puntja's bowl was cracked and empty.
"Where's the fish?" Lenka shrieked after we had climbed out of the wreck and regained our wits. "Where's Puntja?" I crawled back into the car and looked for him. When I found him under the seat, my heart sank. Our happy little fish was dead. I gently placed his corpse into his waterless bowl and sat down on the curb with my wife.
That's how the medics discovered us when they arrived 10 minutes later - a woman with a bloody lip and a man holding a fish, trying not to cry. I sat in the back of the ambulance on the way to the emergency room, clutching Puntja's bowl on my lap, watching as one of the medics tended to Lenka's injury. Then the other medic turned to me.
"Let me see the fish," he said over the siren. I told him the fish was dead, that he hadn't moved in 20 minutes. "Let me see the fish," he repeated.
I handed him the bowl. He poked Puntja with his finger. No response. The medic thought for a moment, then reached into a bag by his side, pulled out a bottle of Evian and filled the fishbowl with the mineral water. He poked at Puntja some more. We were all stunned by what happened next. After a few nudges, Puntja sprang to life. And not only that, he was right side up.
We all stared in disbelief as Puntja swam in bottled water, then we broke out cheering. When we got to the ER, Lenka needed a few stitches but was otherwise O.K. I walked away without a scratch. And Puntja came home healthier than ever. And he stayed that way for two whole weeks, until he started swimming upside down again. He passed away shortly after New Year's. ("Internal injuries suffered during the car accident," the pet-store clerk speculated). We gave him a burial at sea, in the Venice Canals where we live. Lenka and I held hands as we watched his small golden corpse drift to the bottom.
Two years later, we've healed, mostly. On good nights, we can even eat sushi again. And despite his tragic end, Puntja helped us realize that we were ready for a much larger challenge, that we could indeed take that giant leap into far greater responsibility. About nine months after Puntja's passing, we welcomed another newcomer to our household. We got a cat.Benjamin Svetkey is an editor at large at Entertainment Weekly.
By Benjamin Svetkey
Thursday, December 25, 2008
My wife, Lenka, and I don't have anything against kids, but the responsibility of caring for another being, of holding the fate of a tiny defenseless soul in our shaky hands, always worried us. So a while back we got a fish.
We named him Puntja, which is the equivalent of Spot in Czech, my wife's native language. The word for Flipper was too hard for me to pronounce. We brought him home in a plastic baggie, and soon enough we were cooing into his bowl and fretting over the temperature of his water. That first night, I went online and was horrified to learn that his bowl was too small. So we drove back to the pet store and purchased a 10-gallon version. We also got a high-tech filtration system guaranteed to clean and recirculate Puntja's water every few hours, along with antibiotic tablets and various other goldfish medicines (just in case) and lots more plastic plants to decorate his big new bowl.
Lenka and I lavished an insane amount of affection on Puntja. I read that goldfish are as intelligent as dolphins, so I planted a large donut-shaped rock in his bowl and tried to teach him to swim through its hole. Lenka took pictures of him constantly, keeping a record of his growth. I pinned the shots up on my office wall, next to pictures of my family; she posted them on her MySpace page. We would sometimes catch each other hovering over Puntja's bowl, making cute fish faces and fish noises.
The little guy really had become part of the family. When we left him behind for a long Thanksgiving weekend at Big Sur, we spent the whole vacation worrying that his time-release food pellet would malfunction and he'd starve before we got home.
Then, one day right before Christmas, Lenka called me at the office, sounding stricken. "Something's wrong with Puntja," she said. "He's swimming upside down." When I got home Puntja was indeed doing a spastic backstroke. We decided to take him to the pet shop for a consultation, and we gingerly scooped him into his old, smaller bowl for the journey. With Puntja cradled in Lenka's lap, water splashing everywhere, I carefully drove the few miles to the store.
We were nearly there, waiting at a stoplight, when we got rear-ended by a limousine, smashing us into the SUV in front of us, squeezing our car like an accordion. The fish bowl hit Lenka in her face, cutting her lip, and the impact sent Puntja flying. When it was over, the car was totaled, my wife was bleeding and Puntja's bowl was cracked and empty.
"Where's the fish?" Lenka shrieked after we had climbed out of the wreck and regained our wits. "Where's Puntja?" I crawled back into the car and looked for him. When I found him under the seat, my heart sank. Our happy little fish was dead. I gently placed his corpse into his waterless bowl and sat down on the curb with my wife.
That's how the medics discovered us when they arrived 10 minutes later - a woman with a bloody lip and a man holding a fish, trying not to cry. I sat in the back of the ambulance on the way to the emergency room, clutching Puntja's bowl on my lap, watching as one of the medics tended to Lenka's injury. Then the other medic turned to me.
"Let me see the fish," he said over the siren. I told him the fish was dead, that he hadn't moved in 20 minutes. "Let me see the fish," he repeated.
I handed him the bowl. He poked Puntja with his finger. No response. The medic thought for a moment, then reached into a bag by his side, pulled out a bottle of Evian and filled the fishbowl with the mineral water. He poked at Puntja some more. We were all stunned by what happened next. After a few nudges, Puntja sprang to life. And not only that, he was right side up.
We all stared in disbelief as Puntja swam in bottled water, then we broke out cheering. When we got to the ER, Lenka needed a few stitches but was otherwise O.K. I walked away without a scratch. And Puntja came home healthier than ever. And he stayed that way for two whole weeks, until he started swimming upside down again. He passed away shortly after New Year's. ("Internal injuries suffered during the car accident," the pet-store clerk speculated). We gave him a burial at sea, in the Venice Canals where we live. Lenka and I held hands as we watched his small golden corpse drift to the bottom.
Two years later, we've healed, mostly. On good nights, we can even eat sushi again. And despite his tragic end, Puntja helped us realize that we were ready for a much larger challenge, that we could indeed take that giant leap into far greater responsibility. About nine months after Puntja's passing, we welcomed another newcomer to our household. We got a cat.Benjamin Svetkey is an editor at large at Entertainment Weekly.
Obama testifies for federal prosecutors
By Peter Baker
Thursday, December 25, 2008
Every president for more than three decades has had to talk with federal prosecutors at one time or another. President-elect Barack Obama may have set a land speed record by giving his first interview to investigators even before taking the oath of office.
Obama sat down last week with four investigators looking into the alleged attempt to sell his former Senate seat. As a witness, rather than a target, Obama seems to have had an easier time with the experience than some of his predecessors. But it is certainly not the way he wanted to begin his presidency.
"Here the guy hasn't even gotten his tuxedo for the ball yet and already there's a prosecutor who wants to talk him," said Robert Bennett, one of Washington's most prominent lawyers who has represented members of Congress, cabinet secretaries and even former President Bill Clinton in all manner of politically charged cases. "It's the era that we live in."
Another reflection of the era is that Obama and his team evidently made no effort to avoid the interview. In the past, some presidents have cooperated with prosecutors or court proceedings only reluctantly, delaying or trying to limit the parameters of their involvement while expressing concern about their prerogatives as the head of the executive branch. But in recent years, the practice has grown so commonplace that Obama's aides said there was never any debate about whether he would answer questions.
"There was absolutely no hesitation whatsoever about making him available - none," said one person involved in the transition.
With no known legal exposure himself, of course, that was an easier decision for Obama. As a political matter, Obama, coming into office on promises of transparency and reform, may have had little choice but to cooperate, even if it meant disclosing the sorts of internal deliberations that presidents often guard jealously, like whether he wanted an adviser to serve on the White House staff or in the Senate.
In addition, a president-elect could have a harder time making a legal argument about shielding confidential discussions than a sitting president does. The concept of executive privilege, while not explicitly mentioned in the Constitution, has been recognized by courts over the years, though it can be outweighed in such compelling circumstances as a criminal investigation. It is a matter of some debate among lawyers whether, as president-elect, Obama would have any claim to executive privilege.
Obama was interviewed on Dec. 18 at his Chicago transition office by two assistant U.S. attorneys and two agents from the FBI looking into alleged attempts by Governor Rod Blagojevich of Illinois to profit from his appointment of Obama's successor to the Senate. Obama was accompanied by his personal lawyer, Robert Bauer, and an associate, but not by Gregory Craig, who has been designated the new White House counsel, Obama advisers said.
The U.S. attorney in Chicago, Patrick Fitzgerald, who is leading the investigation into Blagojevich, did not attend. The two-hour interview was not recorded or conducted under oath, although one FBI agent and Bauer's associate took copious notes, and it is a felony to lie to federal investigators even without being sworn in.
Obama answered every question posed and his lawyers made no objections, according to one adviser to the president-elect. Two of Obama's aides were interviewed separately and he made no effort to block his advisers from answering questions, as some past presidents have done. Rahm Emanuel, the incoming White House chief of staff, brought his lawyer, W. Neil Eggleston, a prominent Washington attorney who was White House associate counsel under Clinton. Valerie Jarrett, named a senior presidential adviser, was accompanied by Vincent Connelly, a Chicago lawyer who was an assistant U.S. attorney.
Eggleston declined to comment Wednesday, and Connelly did not respond to an e-mail message.
The precedent of presidents agreeing to be interviewed by law enforcement authorities can be traced back 200 years to when Thomas Jefferson offered to provide testimony for use at the treason trial of his former vice president, Aaron Burr. James Monroe provided answers at the White House to questions for the court martial of an appointee. Ulysses S. Grant wanted to testify at the corruption trial of his secretary, but was talked out of it by his cabinet. Instead, he gave a deposition at the White House presided over by the chief justice.
But those were rarities until Watergate. Ever since, every president has been called to talk with the authorities, either as a witness or a subject. Gerald Ford provided videotaped testimony in the trial of a woman who tried to assassinate him. Jimmy Carter gave depositions or testimony in several proceedings against others. After leaving office Ronald Reagan provided videotaped testimony in the Iran-contra trial of an aide while George H. W. Bush was interviewed about the scandal while still vice president.
Clinton provided sworn testimony at least 10 times, according to David Kendall, his attorney in the Whitewater and Monica Lewinsky investigations. His testimony to the grand jury about his relationship with Lewinsky became the basis for an article of impeachment passed by the House of Representatives but later rejected by the Senate. President George W. Bush was interviewed by Fitzgerald for 70 minutes about the leak of a CIA officer's name.
With all that recent history, Obama had little choice but to agree to an interview, legal veterans said. "You could probably delay it as a good defense lawyer," said Bennett, who managed to push off Paula Jones's sexual harassment lawsuit against Clinton until after his 1996 re-election. "You could ask a court if there isn't any other alternative. What if he submits an affidavit? Why don't you send him written questions and see if his answers work?"
But Obama eventually would have to cooperate, Bennett added. "In the real world, at the beginning of an administration, he wouldn't want to start that way," he said. "He can see the headlines - here's the guy who talks about openness and transparency."
While Bennett said he was skeptical that a president-elect could claim executive privilege, Kendall said he thinks Obama would clearly be covered since he is in the process of building a White House. But he agreed that ultimately Obama would have to talk with investigators.
The important thing, Kendall said, would be to give the president-elect enough time to prepare with his lawyers so his testimony is as accurate as possible. If a president-elect, with so many issues on his plate, made an innocent mistake of recollection in his discussion with investigators, Kendall said, it would only cause more problems.
"This one doesn't feel to me like one where there's particular peril for the president-elect," Kendall said. "But you never know. And you have to have the time to adequately prepare it."
By Peter Baker
Thursday, December 25, 2008
Every president for more than three decades has had to talk with federal prosecutors at one time or another. President-elect Barack Obama may have set a land speed record by giving his first interview to investigators even before taking the oath of office.
Obama sat down last week with four investigators looking into the alleged attempt to sell his former Senate seat. As a witness, rather than a target, Obama seems to have had an easier time with the experience than some of his predecessors. But it is certainly not the way he wanted to begin his presidency.
"Here the guy hasn't even gotten his tuxedo for the ball yet and already there's a prosecutor who wants to talk him," said Robert Bennett, one of Washington's most prominent lawyers who has represented members of Congress, cabinet secretaries and even former President Bill Clinton in all manner of politically charged cases. "It's the era that we live in."
Another reflection of the era is that Obama and his team evidently made no effort to avoid the interview. In the past, some presidents have cooperated with prosecutors or court proceedings only reluctantly, delaying or trying to limit the parameters of their involvement while expressing concern about their prerogatives as the head of the executive branch. But in recent years, the practice has grown so commonplace that Obama's aides said there was never any debate about whether he would answer questions.
"There was absolutely no hesitation whatsoever about making him available - none," said one person involved in the transition.
With no known legal exposure himself, of course, that was an easier decision for Obama. As a political matter, Obama, coming into office on promises of transparency and reform, may have had little choice but to cooperate, even if it meant disclosing the sorts of internal deliberations that presidents often guard jealously, like whether he wanted an adviser to serve on the White House staff or in the Senate.
In addition, a president-elect could have a harder time making a legal argument about shielding confidential discussions than a sitting president does. The concept of executive privilege, while not explicitly mentioned in the Constitution, has been recognized by courts over the years, though it can be outweighed in such compelling circumstances as a criminal investigation. It is a matter of some debate among lawyers whether, as president-elect, Obama would have any claim to executive privilege.
Obama was interviewed on Dec. 18 at his Chicago transition office by two assistant U.S. attorneys and two agents from the FBI looking into alleged attempts by Governor Rod Blagojevich of Illinois to profit from his appointment of Obama's successor to the Senate. Obama was accompanied by his personal lawyer, Robert Bauer, and an associate, but not by Gregory Craig, who has been designated the new White House counsel, Obama advisers said.
The U.S. attorney in Chicago, Patrick Fitzgerald, who is leading the investigation into Blagojevich, did not attend. The two-hour interview was not recorded or conducted under oath, although one FBI agent and Bauer's associate took copious notes, and it is a felony to lie to federal investigators even without being sworn in.
Obama answered every question posed and his lawyers made no objections, according to one adviser to the president-elect. Two of Obama's aides were interviewed separately and he made no effort to block his advisers from answering questions, as some past presidents have done. Rahm Emanuel, the incoming White House chief of staff, brought his lawyer, W. Neil Eggleston, a prominent Washington attorney who was White House associate counsel under Clinton. Valerie Jarrett, named a senior presidential adviser, was accompanied by Vincent Connelly, a Chicago lawyer who was an assistant U.S. attorney.
Eggleston declined to comment Wednesday, and Connelly did not respond to an e-mail message.
The precedent of presidents agreeing to be interviewed by law enforcement authorities can be traced back 200 years to when Thomas Jefferson offered to provide testimony for use at the treason trial of his former vice president, Aaron Burr. James Monroe provided answers at the White House to questions for the court martial of an appointee. Ulysses S. Grant wanted to testify at the corruption trial of his secretary, but was talked out of it by his cabinet. Instead, he gave a deposition at the White House presided over by the chief justice.
But those were rarities until Watergate. Ever since, every president has been called to talk with the authorities, either as a witness or a subject. Gerald Ford provided videotaped testimony in the trial of a woman who tried to assassinate him. Jimmy Carter gave depositions or testimony in several proceedings against others. After leaving office Ronald Reagan provided videotaped testimony in the Iran-contra trial of an aide while George H. W. Bush was interviewed about the scandal while still vice president.
Clinton provided sworn testimony at least 10 times, according to David Kendall, his attorney in the Whitewater and Monica Lewinsky investigations. His testimony to the grand jury about his relationship with Lewinsky became the basis for an article of impeachment passed by the House of Representatives but later rejected by the Senate. President George W. Bush was interviewed by Fitzgerald for 70 minutes about the leak of a CIA officer's name.
With all that recent history, Obama had little choice but to agree to an interview, legal veterans said. "You could probably delay it as a good defense lawyer," said Bennett, who managed to push off Paula Jones's sexual harassment lawsuit against Clinton until after his 1996 re-election. "You could ask a court if there isn't any other alternative. What if he submits an affidavit? Why don't you send him written questions and see if his answers work?"
But Obama eventually would have to cooperate, Bennett added. "In the real world, at the beginning of an administration, he wouldn't want to start that way," he said. "He can see the headlines - here's the guy who talks about openness and transparency."
While Bennett said he was skeptical that a president-elect could claim executive privilege, Kendall said he thinks Obama would clearly be covered since he is in the process of building a White House. But he agreed that ultimately Obama would have to talk with investigators.
The important thing, Kendall said, would be to give the president-elect enough time to prepare with his lawyers so his testimony is as accurate as possible. If a president-elect, with so many issues on his plate, made an innocent mistake of recollection in his discussion with investigators, Kendall said, it would only cause more problems.
"This one doesn't feel to me like one where there's particular peril for the president-elect," Kendall said. "But you never know. And you have to have the time to adequately prepare it."
*****************
Wall Street stock fraud prosecutions fall sharply
By Eric Lichtblau
Thursday, December 25, 2008
WASHINGTON: U.S. officials are bringing far fewer prosecutions as a result of fraudulent stock schemes than they did eight years ago, according to new data, raising further questions about whether the Bush administration has been too lax in policing Wall Street.
Legal and financial experts say that a loosening of enforcement measures, cutbacks in staffing at the Securities and Exchange Commission, and a shift in resources toward terrorism at the FBI have combined to make the U.S. government something of a paper tiger in investigating securities crimes.
At a time when the financial news is being dominated by the $50 billion Ponzi scheme that Bernard Madoff is accused of running, U.S. government officials are on pace this year to bring the fewest prosecutions for securities fraud since at least 1991, according to the data, compiled by a Syracuse University research group using Justice Department figures.
There were 133 prosecutions for securities fraud in the first 11 months of this fiscal year. That is down from 437 cases in 2000 and from a high of 513 cases in 2002, when Wall Street scandals from Enron to WorldCom led to a crackdown on corporate crime, the data showed.
At the SEC, agency investigations that led to Justice Department prosecutions for securities fraud dropped from 69 in 2000 to just 9 in 2007, a decline of 87 percent, the data showed.
U.S. officials took issue with some of the data compiled by the Syracuse group and said that they had maintained a strong commitment to rooting out fraud and abuse in the stock markets. While the SEC could not provide numbers of its own on criminal cases arising from its investigations, Scott Friedstad, the deputy director of enforcement at the commission, said the numbers did not reflect "the reality that I see on the ground."
"We are as committed as ever to vigorous enforcement efforts," he said.
But a number of investor advocates and securities lawyers who are critical of the SEC's recent performance say they will be anxiously watching the incoming Obama administration to see what steps it may take to restore the agency's battered credibility and re-establish it as a watchdog against corporate abuse.
President-elect Barack Obama has named Mary Schapiro, head of the Financial Services Regulatory Authority, to lead the SEC, and he has promised an overhaul of the agency and other financial regulatory offices to provide tougher oversight.
"I think the SEC has completely fallen down on the job," said Jacob Zamansky, a New York lawyer who specializes in representing investors who have lost money in fraud cases. "They're more interested in protecting Wall Street than protecting investors. The new administration has to do a complete overhaul of the SEC."
The FBI, which frequently investigates stock fraud cases either on its own or in partnership with the SEC, has also had a sharp decline in the number of white-collar cases it has brought in the last several years — partly a reflection of a huge shift in staffing and resources to counterterrorism operations since the Sept. 11 attacks, officials said.
David Burnham, co-director of the Syracuse research group, which is known as the Transactional Records Access Clearinghouse, or TRAC, said the decline in stock fraud prosecutions growing out of the FBI "really is no surprise. It's a reflection of a choice that was made right after 9-11 to move investigators into terrorism, and this is the cost of that.
"Maybe it's the correct call," he added, "but with both the FBI and the SEC, the federal government is really the only place that does white-collar crime on a systematic basis."
The economic collapse of the last few months has brought intense scrutiny of the SEC amid accusations that it failed to foresee and prevent the collapse of one major financial institution after another as a result of risky overinvestment in mortgage-backed securities.
"As an overheated market needed a strong referee to rein in dangerously risky behavior, the commission too often remained on the sidelines," Arthur Levitt, who served as chairman of the SEC during the Clinton administration, told the Senate Banking Committee in October.
The Madoff scandal, now under investigation by federal prosecutors in Manhattan, has ratcheted up criticism even further.
Christopher Cox, chairman of the SEC, ordered an internal investigation last week into what he said were the agency's "multiple failures" to investigate credible allegations of wrongdoing by Madoff.
The SEC's own data suggests that the agency has put increasing emphasis on using non-criminal means, like civil fines and what are known as deferred prosecution agreements, in dealing with allegations of wrongdoing. The number of SEC cases handled through civil or administrative remedies has grown from 503 in 2000 to 636 this year.
Critics of the SEC also attribute the decline in criminal cases to shortages in staffing and resources in the agency's investigative units, policy changes that have reduced the authority of investigators to pursue cases on their own, and a "revolving door" phenomenon that has led investigators to leave the agency for high-paying jobs in the industry that they once helped to monitor.
"It's been awful," Sean Coffey, a former fraud prosecutor in New York who now represents investors in securities litigation, said of the SEC's recent enforcement record. The agency has "neutered the ability of the enforcement staff to be as proactive as they could be. It's hard to square the motto of investor advocate with the way they've performed the last eight years."
Coffey said he believed the declining number of stock fraud prosecutions is partly a result of the backlash the Bush administration experienced after its aggressive pursuit of corporate crime following the Enron collapse in 2002, which led to the creation of a national task force on corporate wrongdoing.
In the last few years, he said, "the administration has been sending the message that we're going to loosen the binds on the market to compete in the global marketplace, and they've pulled the throttle back on prosecutions because it wasn't politically necessary anymore."
By Eric Lichtblau
Thursday, December 25, 2008
WASHINGTON: U.S. officials are bringing far fewer prosecutions as a result of fraudulent stock schemes than they did eight years ago, according to new data, raising further questions about whether the Bush administration has been too lax in policing Wall Street.
Legal and financial experts say that a loosening of enforcement measures, cutbacks in staffing at the Securities and Exchange Commission, and a shift in resources toward terrorism at the FBI have combined to make the U.S. government something of a paper tiger in investigating securities crimes.
At a time when the financial news is being dominated by the $50 billion Ponzi scheme that Bernard Madoff is accused of running, U.S. government officials are on pace this year to bring the fewest prosecutions for securities fraud since at least 1991, according to the data, compiled by a Syracuse University research group using Justice Department figures.
There were 133 prosecutions for securities fraud in the first 11 months of this fiscal year. That is down from 437 cases in 2000 and from a high of 513 cases in 2002, when Wall Street scandals from Enron to WorldCom led to a crackdown on corporate crime, the data showed.
At the SEC, agency investigations that led to Justice Department prosecutions for securities fraud dropped from 69 in 2000 to just 9 in 2007, a decline of 87 percent, the data showed.
U.S. officials took issue with some of the data compiled by the Syracuse group and said that they had maintained a strong commitment to rooting out fraud and abuse in the stock markets. While the SEC could not provide numbers of its own on criminal cases arising from its investigations, Scott Friedstad, the deputy director of enforcement at the commission, said the numbers did not reflect "the reality that I see on the ground."
"We are as committed as ever to vigorous enforcement efforts," he said.
But a number of investor advocates and securities lawyers who are critical of the SEC's recent performance say they will be anxiously watching the incoming Obama administration to see what steps it may take to restore the agency's battered credibility and re-establish it as a watchdog against corporate abuse.
President-elect Barack Obama has named Mary Schapiro, head of the Financial Services Regulatory Authority, to lead the SEC, and he has promised an overhaul of the agency and other financial regulatory offices to provide tougher oversight.
"I think the SEC has completely fallen down on the job," said Jacob Zamansky, a New York lawyer who specializes in representing investors who have lost money in fraud cases. "They're more interested in protecting Wall Street than protecting investors. The new administration has to do a complete overhaul of the SEC."
The FBI, which frequently investigates stock fraud cases either on its own or in partnership with the SEC, has also had a sharp decline in the number of white-collar cases it has brought in the last several years — partly a reflection of a huge shift in staffing and resources to counterterrorism operations since the Sept. 11 attacks, officials said.
David Burnham, co-director of the Syracuse research group, which is known as the Transactional Records Access Clearinghouse, or TRAC, said the decline in stock fraud prosecutions growing out of the FBI "really is no surprise. It's a reflection of a choice that was made right after 9-11 to move investigators into terrorism, and this is the cost of that.
"Maybe it's the correct call," he added, "but with both the FBI and the SEC, the federal government is really the only place that does white-collar crime on a systematic basis."
The economic collapse of the last few months has brought intense scrutiny of the SEC amid accusations that it failed to foresee and prevent the collapse of one major financial institution after another as a result of risky overinvestment in mortgage-backed securities.
"As an overheated market needed a strong referee to rein in dangerously risky behavior, the commission too often remained on the sidelines," Arthur Levitt, who served as chairman of the SEC during the Clinton administration, told the Senate Banking Committee in October.
The Madoff scandal, now under investigation by federal prosecutors in Manhattan, has ratcheted up criticism even further.
Christopher Cox, chairman of the SEC, ordered an internal investigation last week into what he said were the agency's "multiple failures" to investigate credible allegations of wrongdoing by Madoff.
The SEC's own data suggests that the agency has put increasing emphasis on using non-criminal means, like civil fines and what are known as deferred prosecution agreements, in dealing with allegations of wrongdoing. The number of SEC cases handled through civil or administrative remedies has grown from 503 in 2000 to 636 this year.
Critics of the SEC also attribute the decline in criminal cases to shortages in staffing and resources in the agency's investigative units, policy changes that have reduced the authority of investigators to pursue cases on their own, and a "revolving door" phenomenon that has led investigators to leave the agency for high-paying jobs in the industry that they once helped to monitor.
"It's been awful," Sean Coffey, a former fraud prosecutor in New York who now represents investors in securities litigation, said of the SEC's recent enforcement record. The agency has "neutered the ability of the enforcement staff to be as proactive as they could be. It's hard to square the motto of investor advocate with the way they've performed the last eight years."
Coffey said he believed the declining number of stock fraud prosecutions is partly a result of the backlash the Bush administration experienced after its aggressive pursuit of corporate crime following the Enron collapse in 2002, which led to the creation of a national task force on corporate wrongdoing.
In the last few years, he said, "the administration has been sending the message that we're going to loosen the binds on the market to compete in the global marketplace, and they've pulled the throttle back on prosecutions because it wasn't politically necessary anymore."
**********************
Trustee tries to sell Madoff trading unit
By Michael J. de la Merced
Thursday, December 25, 2008
NEW YORK: As the investigation into Bernard Madoff's money management business intensifies, efforts are under way for a quick sale of the trading unit, which was once the heart of Madoff's operations.
Last week, a court-appointed trustee, Irving Picard, hired the investment bank Lazard to manage the sale of the business, which includes a big market-making operation and a proprietary trading desk. Now, the two are trying to find a buyer for the unit before its more than 120 employees drift away.
The efforts to sell the trading operations of Bernard L. Madoff Investment Securities are taking place amid a broadening tableau of events related to the fraud case.
On Wednesday, New York University sued J.Ezra Merkin, a money manager who had invested $94 million in university funds in Madoff's firm. NYU accused Merkin and two of his funds, Ariel and Gabriel, of placing its money with Madoff without notification or proper due diligence, according to the lawsuit.
It was only the latest in a number of lawsuits filed against the so-called feeder funds that poured money into Madoff's vast investment advisory arm.
Separately, a judge in New York issued a temporary restraining order barring Merkin "from taking any action to liquidate Ariel" before a Jan. 6 hearing. Merkin is also prohibited from taking any action to move assets of the Ariel or Gabriel funds, according to the order.
Wall Street analysts are watching what happens to the trading operations. Madoff's trading business led to his rise to prominence. He began his career by trading over-the-counter stocks. By the 1980s, his firm handled as much as 5 percent of the trading on the New York Stock Exchange.
The firm had approximately $300 million in assets in 2000, at the height of the dot-com bubble, and ranked among the top trading and securities firms in the United States.
What set Madoff apart from his peers was his early and aggressive push into electronic trading at a time when the business was still built mainly on the decades-old system of human traders on an exchange floor. At one point, the firm was the largest market maker on the Nasdaq market, regularly operating as both a buyer and seller of many widely traded securities.
Among the supervisors of the unit was Peter Madoff, Madoff's younger brother and the firm's chief compliance officer. Madoff's sons, Andrew and Mark, also worked in the trading operations. Those family members have not been implicated in the case.
Madoff's firm is being liquidated under the Securities Investor Protection Corp., the government-chartered fund set up to help protect investors in failed brokerage firms, to save at least a small portion of the $50 billion that is estimated to have been lost by investors. The Madoff firm's operations have been frozen by the protection fund, although its employees are still being paid.
Several potential buyers have already been contacted to gauge their interest in the business, while other firms have already expressed their interest, a person briefed on the sales process said. Among the potential buyers are other brokerage shops looking to add or expand an equities trading platform and private equity firms. But Picard and Lazard face several challenges, the biggest perhaps being time. A securities firm's most valuable assets are its people, and the longer the sales process takes, the more likely it is that important personnel will begin to leave. That has not happened yet, this person said.
And while customers normally use several firms to act as market makers for stocks, many may not return if Madoff's firm is prevented from operating for an extended period of time.
Picard and Lazard must also sort through the trading unit's voluminous records, which are in disarray, according to a person with direct knowledge of the Madoff firm's operations. That could make it harder to arrange a sale of the business. Picard could not be reached for comment. A Lazard spokeswoman declined to comment.
French group seeks data
A group of French shareholders is pressing the government to release a list of French funds exposed to losses from alleged fraud by Bernard Madoff, The Associated Press reported from Paris.
The group, SOS Petits Porteurs, said Wednesday that it had asked the Finance Ministry to provide a list of French funds "contaminated by the Madoff virus." It added, "The public at large has the right to know."
The group says many depositors are complaining that fund managers are refusing to discuss their potential losses or exposure to Madoff-related investments.
Leading French banks, including BNP Paribas and Natixis, have estimated their exposure to Madoff's activities at more than $1 billion.
The French market regulator, the Autorité des Marchés Financiers, or AMF, has estimated the total exposure of French mutual funds at €500 million, or $702 million. The AMF said Dec. 18 that the majority of those funds were available only to institutional investors or very wealthy clients - not the general public.
The AMF urged French fund managers to alert their clients about any Madoff-related investments, but said it was not compiling a list of affected French mutual funds.
By Michael J. de la Merced
Thursday, December 25, 2008
NEW YORK: As the investigation into Bernard Madoff's money management business intensifies, efforts are under way for a quick sale of the trading unit, which was once the heart of Madoff's operations.
Last week, a court-appointed trustee, Irving Picard, hired the investment bank Lazard to manage the sale of the business, which includes a big market-making operation and a proprietary trading desk. Now, the two are trying to find a buyer for the unit before its more than 120 employees drift away.
The efforts to sell the trading operations of Bernard L. Madoff Investment Securities are taking place amid a broadening tableau of events related to the fraud case.
On Wednesday, New York University sued J.Ezra Merkin, a money manager who had invested $94 million in university funds in Madoff's firm. NYU accused Merkin and two of his funds, Ariel and Gabriel, of placing its money with Madoff without notification or proper due diligence, according to the lawsuit.
It was only the latest in a number of lawsuits filed against the so-called feeder funds that poured money into Madoff's vast investment advisory arm.
Separately, a judge in New York issued a temporary restraining order barring Merkin "from taking any action to liquidate Ariel" before a Jan. 6 hearing. Merkin is also prohibited from taking any action to move assets of the Ariel or Gabriel funds, according to the order.
Wall Street analysts are watching what happens to the trading operations. Madoff's trading business led to his rise to prominence. He began his career by trading over-the-counter stocks. By the 1980s, his firm handled as much as 5 percent of the trading on the New York Stock Exchange.
The firm had approximately $300 million in assets in 2000, at the height of the dot-com bubble, and ranked among the top trading and securities firms in the United States.
What set Madoff apart from his peers was his early and aggressive push into electronic trading at a time when the business was still built mainly on the decades-old system of human traders on an exchange floor. At one point, the firm was the largest market maker on the Nasdaq market, regularly operating as both a buyer and seller of many widely traded securities.
Among the supervisors of the unit was Peter Madoff, Madoff's younger brother and the firm's chief compliance officer. Madoff's sons, Andrew and Mark, also worked in the trading operations. Those family members have not been implicated in the case.
Madoff's firm is being liquidated under the Securities Investor Protection Corp., the government-chartered fund set up to help protect investors in failed brokerage firms, to save at least a small portion of the $50 billion that is estimated to have been lost by investors. The Madoff firm's operations have been frozen by the protection fund, although its employees are still being paid.
Several potential buyers have already been contacted to gauge their interest in the business, while other firms have already expressed their interest, a person briefed on the sales process said. Among the potential buyers are other brokerage shops looking to add or expand an equities trading platform and private equity firms. But Picard and Lazard face several challenges, the biggest perhaps being time. A securities firm's most valuable assets are its people, and the longer the sales process takes, the more likely it is that important personnel will begin to leave. That has not happened yet, this person said.
And while customers normally use several firms to act as market makers for stocks, many may not return if Madoff's firm is prevented from operating for an extended period of time.
Picard and Lazard must also sort through the trading unit's voluminous records, which are in disarray, according to a person with direct knowledge of the Madoff firm's operations. That could make it harder to arrange a sale of the business. Picard could not be reached for comment. A Lazard spokeswoman declined to comment.
French group seeks data
A group of French shareholders is pressing the government to release a list of French funds exposed to losses from alleged fraud by Bernard Madoff, The Associated Press reported from Paris.
The group, SOS Petits Porteurs, said Wednesday that it had asked the Finance Ministry to provide a list of French funds "contaminated by the Madoff virus." It added, "The public at large has the right to know."
The group says many depositors are complaining that fund managers are refusing to discuss their potential losses or exposure to Madoff-related investments.
Leading French banks, including BNP Paribas and Natixis, have estimated their exposure to Madoff's activities at more than $1 billion.
The French market regulator, the Autorité des Marchés Financiers, or AMF, has estimated the total exposure of French mutual funds at €500 million, or $702 million. The AMF said Dec. 18 that the majority of those funds were available only to institutional investors or very wealthy clients - not the general public.
The AMF urged French fund managers to alert their clients about any Madoff-related investments, but said it was not compiling a list of affected French mutual funds.
*******************
Once trusted mortgage pioneers, now pariahs
By Michael Moss and Geraldine Fabrikant
Thursday, December 25, 2008
SAN FRANCISCO: "We are team-oriented, highly ethical, extremely competitive, profit-oriented, risk-averse, consumer-focused, and we try as much as possible to squeeze out any ego. Hubris is the beginning of the end."
— Herbert Sandler, June 2005
Herbert Sandler, the founder of the Center for Responsible Lending, is standing in his bayfront office watching a DVD that trains brokers to pitch mortgages by extolling the glories of the real estate boom.
The video reeks of hucksterism, and it infuriates Sandler.
"I would not have approved that!" he declares. "I don't think we should be selling our loans based on home prices continuing to go up."
But the DVD was produced in 2005 by a mortgage lender that Sandler and his wife, Marion, ran at the time: World Savings Bank. And the video was a small part of a broad and aggressive effort by their company to market risky loans at the height of the housing bubble.
The Sandlers long viewed themselves — and were viewed by many others — as the mortgage industry's model citizens. Now they too have been swept into the maelstrom surrounding who is to blame for the housing bust and the growing number of home foreclosures.
Once invited by Congress to testify about good lending practices, the Sandlers were recently parodied on "Saturday Night Live" as greedy bankers who handily sold their bank — and pocketed $2.3 billion in shares and cash — in 2006 before many of their loans began to sour.
Last month, the U.S. attorney's office in San Francisco announced dual inquiries into whether World Savings engaged in predatory lending practices or misled investors about its financial well-being. And the bank has been sued by numerous borrowers who claim they were misled into taking out mortgages they could not afford.
At the center of the controversy is an exotic but popular mortgage the Sandlers pioneered that helped generate billions of dollars of revenue at their bank.
Known as an option ARM — and named "Pick-A-Pay" by World Savings — it is now seen by an array of housing analysts and regulators as the Typhoid Mary of the mortgage industry.
Pick-A-Pay allowed homeowners to make monthly mortgage payments that were so small they did not cover their interest charges. That meant the total principal owed would actually grow over time, not shrink as is normally the case.
Now held by an estimated two million homeowners, the option adjustable rate mortgage will be at the forefront of a further wave of homeowner distress that could greatly delay or even derail an economic recovery, mortgage industry analysts say.
Wachovia, which bought the Sandlers' bank two years ago, was so battered by the souring portfolio of World Savings that it began writing off losses now projected at tens of billions of dollars and eventually stopped offering option ARMs.
Through it all, the Sandlers have maintained they did nothing wrong beyond misjudging the real estate bubble.
"I didn't mislead anybody, and to the best of my knowledge, our company didn't, though there may have been an isolated case here and there," Herbert Sandler said. "If home prices hadn't declined by 50 percent, nobody would be raising these questions."
Sandler also finds it incredible that borrowers feel victimized by Pick-A-Pay. "All of a sudden their home is worth half of what it was, and they say they didn't know."
Yet the Sandlers embraced practices like the use of independent brokers who used questionable methods to reel in borrowers. These and other practices, critics contend, undermined the conservative lending practices that the Sandlers built their reputations upon.
"This product is the most destructive financial weapon ever deployed against the American middle class," said William J. Purdy III, a housing lawyer in California who is representing elderly World Savings customers struggling to repay their loans. "People who have this loan are now trapped, and they can't get another loan."
The birth of pick-a-pay
Marion Sandler, now 78, was a Wall Street analyst in the early 1960s when she and her husband decided to buy a bank that took only savings deposits and made mortgage loans — a thrift, or savings and loan, in banking shorthand — and run it themselves.
Herbert Sandler, now 77, was a lawyer in New York who grew up poor on the Lower East Side, the son of a compulsive gambler whose earnings were consumed by loan sharks.
The Sandlers searched for a thrift in the sizzling California market and paid $3.8 million in 1963 for an Oakland enterprise called Golden West Savings and Loan Association, which later became the parent company of World Savings. It had a main office and one branch.
When Reagan era deregulation arrived, the Sandlers and two other competitors were able to market option ARMs for the first time in 1981. Before that, lawmakers balked at the loan because of its potential peril to borrowers.
World Savings initially attracted borrowers whose incomes fluctuated, like professionals with big year-end bonuses. In the recent housing boom, when World Savings started calling the loan Pick-A-Pay, they began marketing it to a much broader audience, including people with financial troubles, like deeply indebted blue-collar workers.
As the entire thrift industry soared after deregulation, the Sandlers' business also took off. They avoided financial problems by doing things like scrutinizing borrowers' incomes to make sure loans were manageable and performing astute appraisals so the size of a mortgage was in line with the value of a home.
"Our protection was our total underwriting of the loan," Herbert Sandler said. "From scratch."
When many of the Sandlers' competitors in the thrift industry later began collapsing under the weight of bad loans and investments, Congress and the media invited the couple to speak about the proper way to do business.
"The deregulatory situation attracted bums, charlatans, crooks, phonies, con men," Sandler told an ABC News program in 1990.
The Sandlers also held onto World Savings' loans rather than selling them off to Wall Street to be repackaged as securities. They say this made them more alert to risky borrowers than were lenders who sold off their loans.
When foreclosures occurred, World Savings executives would drive to the house to see if they had made mistakes appraising the property or underwriting the loan. "We called these the van tours," Sandler said. "And we would say, 'O.K., have we done anything wrong here?' "
More philanthropic work
As the Sandlers' wealth increased, so did their philanthropy. Over the years, they financed scientific research and groups like Human Rights Watch and the American Civil Liberties Union. More recently they founded and financed ProPublica, a nonprofit investigative journalism enterprise that has collaborated with The New York Times on coverage and a news archive. Its 14-member advisory board includes two top New York Times Co. editors.
The Sandlers' giving intersected most directly with their business interests in 2002 when they helped create an advocacy group for low-income borrowers called the Center for Responsible Lending.
The center was the successor to a smaller organization in North Carolina, whose director, Martin Eakes, had helped the elderly and minorities avoid predatory banking practices.
"I said, 'Isn't that incredible what he is doing?' " Herbert Sandler recalled. "I said to Martin, 'What would it take to do what you do on a national scale?' "
Eakes, who became the center's executive director, had also just helped secure a new mortgage lending law in North Carolina that prohibited, among other things, the use of prepayment penalties.
"I hated prepayment penalties," Eakes recalled, noting that such charges make it hard for cash-poor borrowers to refinance a loan for one with more manageable terms.
While Sandler supported the center's antipredatory goals, he disagreed with Eakes's position on prepayment penalties and sought to change his mind. Eakes says the Sandlers convinced him to drop his opposition to prepayment penalties, "but they never dictated to us what to do."
Sandler acknowledges that some lenders used the penalties to lock borrowers into "absolutely awful" loans. But he said his bank used the penalties to fend off unethical brokers who enticed borrowers with low-interest-rate loans that often had hidden fees.
"You have to understand how independent brokers work," Sandler says. "They are the whores of the world."
Despite that distaste, World Savings made extensive use of brokers. By 2006, they were generating some 60 percent of its loan business, he acknowledged. He said he was compelled to do so because of brokers were a dominant force in the mortgage industry.
As a check on the representations that brokers made to borrowers, World Savings sought to telephone applicants to ensure that they understood the terms of their loan. These calls reached only about half of the borrowers, however, according to a former World Savings executive. Sandler did not dispute that point.
Customer complaints that an unethical broker had misrepresented the terms of World Savings loans is at the heart of a lawsuit filed against the bank and others in Alameda County, California. The broker was sentenced to a year in prison for misleading at least 90 World Savings borrowers.
Sandler points out that the company was itself a victim of this broker, that it cooperated fully with authorities, and that it was not charged with any wrongdoing.
Others have also raised questions about how carefully World Savings disclosed lending terms to its borrowers.
In August, a U.S. judge in South Carolina ruled that World Savings had violated the federal Truth in Lending Act by telling borrowers that choosing to make minimum monthly payments on Pick-A-Pay mortgages might cause their principal to grow — when in fact it certainly would occur.
Wachovia, which is defending the case, has appealed the ruling. Sandler said he was not familiar with this lawsuit, but generally, he says, "Wachovia's legal defense is deficient."
A speedy merger
By 2005, World Savings lending had started to slow, after more than quadrupling since 1998. The next year, Wachovia bought the bank in a hastily arranged deal. The Sandlers say they sold their firm at the top of the market because they were growing older and wanted to devote themselves to philanthropy.
Some current and former Wachovia officials say that the merger was agreed to in days and that it was impossible to conduct a thorough vetting of World Savings' loans. Others say the portfolio was adequately scrutinized.
"Herb and his wife had run a tight ship," said Robert Brown, a Wachovia board member. "There was not a huge concern about it because they had not had any delinquencies and foreclosures."
Others were less sanguine. The creditworthiness of World Savings borrowers edged down from 2004 to 2006, according to Wachovia's data. Over all, Pick-A-Pay borrowers had credit scores well below the industry average for traditional loans.
"I don't think anyone thought a Pick-A-Pay product was a customer-friendly product," says a former Wachovia executive who requested anonymity to preserve professional relationships. "It is easy to mislead them."
World Savings lending volume dipped again in 2006 shortly after the sale to Wachovia was initiated, according to the company's federal filings.
This prompted World Savings to attract more borrowers by taking a step that some regulators were starting to frown upon, and which the company had been resisting for years: it allowed borrowers to make monthly payments based on an annual interest rate of just 1 percent. While World Savings continued to scrutinize borrowers' ability to manage increased payments, the move to rock-bottom rates lured customers whose financial reliability was harder to verify.
Russell Kettell, a former chief financial officer of World Savings, says the merger created "pressure" for "a pretty good-sized increase in loan volume."
Asked if Wachovia ordered World Savings to drop its rate, Kettell said, "No, but they wanted volume and wanted growth."
A swift increase in option ARM lending had prompted U.S. regulators to weigh tougher controls on lending standards in 2005. Of the $238 billion in option ARM loans made nationally in 2005, World Savings issued about $52 billion, or more than one-fifth of the total.
Susan Schmidt Bies, a governor of the Federal Reserve System until last year, said the surge in volume caught regulators by surprise, and that she regrets not acting more quickly to protect borrowers because she believes that they could not understand the risky nature of option ARMs.
"When you get into people whose mortgage payments are taking half of their cash flow, they are in over their heads, and these loans should not have been sold to this customer base," she said. "This makes me sick when I see this happening."
In March 2006, two months before the Wachovia deal, Herbert Sandler wrote regulators and objected to several aspects of the new rules, including the regulator's conclusion that option ARMS "were untested in a stress environment."
He argued in the letter that World Savings had few loan losses in the recession of the early 1990s. Then again, the current financial crisis is far more severe than what occurred then — far more severe than anything the country has faced since the Great Depression.
By the third quarter of this year, Wachovia was projecting $26.1 billion of losses on a World Savings loan portfolio worth a total of about $124 billion. About 6.2 percent of the Pick-A-Pay loans were more than 90 days late, it said, compared with an industry average of 8 percent on option ARMs and 1 percent on Wachovia's traditional loans.
Wells Fargo, which is now buying Wachovia, is more pessimistic: it expects losses of $36 billion on the loans unless efforts to stem foreclosures help rescue part of the portfolio. The losses caused analysts and others to reassess the Sandlers' legacy.
After the "Saturday Night Live" skit, Paul Steiger, the former executive editor of The Wall Street Journal and the editor in chief of ProPublica, was among those who wrote to the show's producer, Lorne Michaels, saying the Sandlers had been unfairly vilified. Michaels apologized for the skit (which suggested that the Sandlers "should be shot") and removed it from NBC's Web site.
Herbert Sandler says Wachovia did not work hard enough to help struggling borrowers, and that his loans became scapegoats for other problems at Wachovia. He remains confident that losses on its loans will not reach Wells Fargo's projections.
He says World Savings was hit especially hard because it had made so many loans in volatile markets like inland California, but he disputes homeowner assertions that his option ARMs are at fault.
"We have not been able to identify one delinquency, much less a foreclosure, that is due to the product," Sandler said, adding that "if home prices had not dropped, you wouldn't see" a single article.
Over all, analysts expect the option ARM fallout to be brutal. Fitch Ratings, a leading credit rating agency, recently reported that payments on nearly half of the $200 billion worth of option ARMs it tracks will jump 63 percent in the next two years — causing mortgage delinquencies to rise sharply.
Sandler says that his loans are not in the pool that will become distressed in the next few years; he says they reset at a later date. He adds that were he not sure that the market would recover he would have sold his Wachovia stock at the time of the takeover. His charity has sold off much of its Wachovia stock, but he said he and his wife retain a substantial portion of their personal holdings.
Still, the Sandlers have their detractors.
"As the largest and most respected regulated institution providing option ARMs, I hold the Sandlers responsible because a large percentage of home borrowers — but not all — should have been advised that it was in their best interest to have a fixed-rate mortgage," said Robert Gnaizda, general counsel for the Greenlining Institute, a homeowner advocacy group. "I believe that financial institutions have a quasi-fiduciary responsibility not to mislead the borrower."
Sandler insists that World Savings prided itself on ethical conduct and that untoward behavior was never tolerated. "We were also a family, and you expected people to live their personal and business lives in a particular way," he said.
By Michael Moss and Geraldine Fabrikant
Thursday, December 25, 2008
SAN FRANCISCO: "We are team-oriented, highly ethical, extremely competitive, profit-oriented, risk-averse, consumer-focused, and we try as much as possible to squeeze out any ego. Hubris is the beginning of the end."
— Herbert Sandler, June 2005
Herbert Sandler, the founder of the Center for Responsible Lending, is standing in his bayfront office watching a DVD that trains brokers to pitch mortgages by extolling the glories of the real estate boom.
The video reeks of hucksterism, and it infuriates Sandler.
"I would not have approved that!" he declares. "I don't think we should be selling our loans based on home prices continuing to go up."
But the DVD was produced in 2005 by a mortgage lender that Sandler and his wife, Marion, ran at the time: World Savings Bank. And the video was a small part of a broad and aggressive effort by their company to market risky loans at the height of the housing bubble.
The Sandlers long viewed themselves — and were viewed by many others — as the mortgage industry's model citizens. Now they too have been swept into the maelstrom surrounding who is to blame for the housing bust and the growing number of home foreclosures.
Once invited by Congress to testify about good lending practices, the Sandlers were recently parodied on "Saturday Night Live" as greedy bankers who handily sold their bank — and pocketed $2.3 billion in shares and cash — in 2006 before many of their loans began to sour.
Last month, the U.S. attorney's office in San Francisco announced dual inquiries into whether World Savings engaged in predatory lending practices or misled investors about its financial well-being. And the bank has been sued by numerous borrowers who claim they were misled into taking out mortgages they could not afford.
At the center of the controversy is an exotic but popular mortgage the Sandlers pioneered that helped generate billions of dollars of revenue at their bank.
Known as an option ARM — and named "Pick-A-Pay" by World Savings — it is now seen by an array of housing analysts and regulators as the Typhoid Mary of the mortgage industry.
Pick-A-Pay allowed homeowners to make monthly mortgage payments that were so small they did not cover their interest charges. That meant the total principal owed would actually grow over time, not shrink as is normally the case.
Now held by an estimated two million homeowners, the option adjustable rate mortgage will be at the forefront of a further wave of homeowner distress that could greatly delay or even derail an economic recovery, mortgage industry analysts say.
Wachovia, which bought the Sandlers' bank two years ago, was so battered by the souring portfolio of World Savings that it began writing off losses now projected at tens of billions of dollars and eventually stopped offering option ARMs.
Through it all, the Sandlers have maintained they did nothing wrong beyond misjudging the real estate bubble.
"I didn't mislead anybody, and to the best of my knowledge, our company didn't, though there may have been an isolated case here and there," Herbert Sandler said. "If home prices hadn't declined by 50 percent, nobody would be raising these questions."
Sandler also finds it incredible that borrowers feel victimized by Pick-A-Pay. "All of a sudden their home is worth half of what it was, and they say they didn't know."
Yet the Sandlers embraced practices like the use of independent brokers who used questionable methods to reel in borrowers. These and other practices, critics contend, undermined the conservative lending practices that the Sandlers built their reputations upon.
"This product is the most destructive financial weapon ever deployed against the American middle class," said William J. Purdy III, a housing lawyer in California who is representing elderly World Savings customers struggling to repay their loans. "People who have this loan are now trapped, and they can't get another loan."
The birth of pick-a-pay
Marion Sandler, now 78, was a Wall Street analyst in the early 1960s when she and her husband decided to buy a bank that took only savings deposits and made mortgage loans — a thrift, or savings and loan, in banking shorthand — and run it themselves.
Herbert Sandler, now 77, was a lawyer in New York who grew up poor on the Lower East Side, the son of a compulsive gambler whose earnings were consumed by loan sharks.
The Sandlers searched for a thrift in the sizzling California market and paid $3.8 million in 1963 for an Oakland enterprise called Golden West Savings and Loan Association, which later became the parent company of World Savings. It had a main office and one branch.
When Reagan era deregulation arrived, the Sandlers and two other competitors were able to market option ARMs for the first time in 1981. Before that, lawmakers balked at the loan because of its potential peril to borrowers.
World Savings initially attracted borrowers whose incomes fluctuated, like professionals with big year-end bonuses. In the recent housing boom, when World Savings started calling the loan Pick-A-Pay, they began marketing it to a much broader audience, including people with financial troubles, like deeply indebted blue-collar workers.
As the entire thrift industry soared after deregulation, the Sandlers' business also took off. They avoided financial problems by doing things like scrutinizing borrowers' incomes to make sure loans were manageable and performing astute appraisals so the size of a mortgage was in line with the value of a home.
"Our protection was our total underwriting of the loan," Herbert Sandler said. "From scratch."
When many of the Sandlers' competitors in the thrift industry later began collapsing under the weight of bad loans and investments, Congress and the media invited the couple to speak about the proper way to do business.
"The deregulatory situation attracted bums, charlatans, crooks, phonies, con men," Sandler told an ABC News program in 1990.
The Sandlers also held onto World Savings' loans rather than selling them off to Wall Street to be repackaged as securities. They say this made them more alert to risky borrowers than were lenders who sold off their loans.
When foreclosures occurred, World Savings executives would drive to the house to see if they had made mistakes appraising the property or underwriting the loan. "We called these the van tours," Sandler said. "And we would say, 'O.K., have we done anything wrong here?' "
More philanthropic work
As the Sandlers' wealth increased, so did their philanthropy. Over the years, they financed scientific research and groups like Human Rights Watch and the American Civil Liberties Union. More recently they founded and financed ProPublica, a nonprofit investigative journalism enterprise that has collaborated with The New York Times on coverage and a news archive. Its 14-member advisory board includes two top New York Times Co. editors.
The Sandlers' giving intersected most directly with their business interests in 2002 when they helped create an advocacy group for low-income borrowers called the Center for Responsible Lending.
The center was the successor to a smaller organization in North Carolina, whose director, Martin Eakes, had helped the elderly and minorities avoid predatory banking practices.
"I said, 'Isn't that incredible what he is doing?' " Herbert Sandler recalled. "I said to Martin, 'What would it take to do what you do on a national scale?' "
Eakes, who became the center's executive director, had also just helped secure a new mortgage lending law in North Carolina that prohibited, among other things, the use of prepayment penalties.
"I hated prepayment penalties," Eakes recalled, noting that such charges make it hard for cash-poor borrowers to refinance a loan for one with more manageable terms.
While Sandler supported the center's antipredatory goals, he disagreed with Eakes's position on prepayment penalties and sought to change his mind. Eakes says the Sandlers convinced him to drop his opposition to prepayment penalties, "but they never dictated to us what to do."
Sandler acknowledges that some lenders used the penalties to lock borrowers into "absolutely awful" loans. But he said his bank used the penalties to fend off unethical brokers who enticed borrowers with low-interest-rate loans that often had hidden fees.
"You have to understand how independent brokers work," Sandler says. "They are the whores of the world."
Despite that distaste, World Savings made extensive use of brokers. By 2006, they were generating some 60 percent of its loan business, he acknowledged. He said he was compelled to do so because of brokers were a dominant force in the mortgage industry.
As a check on the representations that brokers made to borrowers, World Savings sought to telephone applicants to ensure that they understood the terms of their loan. These calls reached only about half of the borrowers, however, according to a former World Savings executive. Sandler did not dispute that point.
Customer complaints that an unethical broker had misrepresented the terms of World Savings loans is at the heart of a lawsuit filed against the bank and others in Alameda County, California. The broker was sentenced to a year in prison for misleading at least 90 World Savings borrowers.
Sandler points out that the company was itself a victim of this broker, that it cooperated fully with authorities, and that it was not charged with any wrongdoing.
Others have also raised questions about how carefully World Savings disclosed lending terms to its borrowers.
In August, a U.S. judge in South Carolina ruled that World Savings had violated the federal Truth in Lending Act by telling borrowers that choosing to make minimum monthly payments on Pick-A-Pay mortgages might cause their principal to grow — when in fact it certainly would occur.
Wachovia, which is defending the case, has appealed the ruling. Sandler said he was not familiar with this lawsuit, but generally, he says, "Wachovia's legal defense is deficient."
A speedy merger
By 2005, World Savings lending had started to slow, after more than quadrupling since 1998. The next year, Wachovia bought the bank in a hastily arranged deal. The Sandlers say they sold their firm at the top of the market because they were growing older and wanted to devote themselves to philanthropy.
Some current and former Wachovia officials say that the merger was agreed to in days and that it was impossible to conduct a thorough vetting of World Savings' loans. Others say the portfolio was adequately scrutinized.
"Herb and his wife had run a tight ship," said Robert Brown, a Wachovia board member. "There was not a huge concern about it because they had not had any delinquencies and foreclosures."
Others were less sanguine. The creditworthiness of World Savings borrowers edged down from 2004 to 2006, according to Wachovia's data. Over all, Pick-A-Pay borrowers had credit scores well below the industry average for traditional loans.
"I don't think anyone thought a Pick-A-Pay product was a customer-friendly product," says a former Wachovia executive who requested anonymity to preserve professional relationships. "It is easy to mislead them."
World Savings lending volume dipped again in 2006 shortly after the sale to Wachovia was initiated, according to the company's federal filings.
This prompted World Savings to attract more borrowers by taking a step that some regulators were starting to frown upon, and which the company had been resisting for years: it allowed borrowers to make monthly payments based on an annual interest rate of just 1 percent. While World Savings continued to scrutinize borrowers' ability to manage increased payments, the move to rock-bottom rates lured customers whose financial reliability was harder to verify.
Russell Kettell, a former chief financial officer of World Savings, says the merger created "pressure" for "a pretty good-sized increase in loan volume."
Asked if Wachovia ordered World Savings to drop its rate, Kettell said, "No, but they wanted volume and wanted growth."
A swift increase in option ARM lending had prompted U.S. regulators to weigh tougher controls on lending standards in 2005. Of the $238 billion in option ARM loans made nationally in 2005, World Savings issued about $52 billion, or more than one-fifth of the total.
Susan Schmidt Bies, a governor of the Federal Reserve System until last year, said the surge in volume caught regulators by surprise, and that she regrets not acting more quickly to protect borrowers because she believes that they could not understand the risky nature of option ARMs.
"When you get into people whose mortgage payments are taking half of their cash flow, they are in over their heads, and these loans should not have been sold to this customer base," she said. "This makes me sick when I see this happening."
In March 2006, two months before the Wachovia deal, Herbert Sandler wrote regulators and objected to several aspects of the new rules, including the regulator's conclusion that option ARMS "were untested in a stress environment."
He argued in the letter that World Savings had few loan losses in the recession of the early 1990s. Then again, the current financial crisis is far more severe than what occurred then — far more severe than anything the country has faced since the Great Depression.
By the third quarter of this year, Wachovia was projecting $26.1 billion of losses on a World Savings loan portfolio worth a total of about $124 billion. About 6.2 percent of the Pick-A-Pay loans were more than 90 days late, it said, compared with an industry average of 8 percent on option ARMs and 1 percent on Wachovia's traditional loans.
Wells Fargo, which is now buying Wachovia, is more pessimistic: it expects losses of $36 billion on the loans unless efforts to stem foreclosures help rescue part of the portfolio. The losses caused analysts and others to reassess the Sandlers' legacy.
After the "Saturday Night Live" skit, Paul Steiger, the former executive editor of The Wall Street Journal and the editor in chief of ProPublica, was among those who wrote to the show's producer, Lorne Michaels, saying the Sandlers had been unfairly vilified. Michaels apologized for the skit (which suggested that the Sandlers "should be shot") and removed it from NBC's Web site.
Herbert Sandler says Wachovia did not work hard enough to help struggling borrowers, and that his loans became scapegoats for other problems at Wachovia. He remains confident that losses on its loans will not reach Wells Fargo's projections.
He says World Savings was hit especially hard because it had made so many loans in volatile markets like inland California, but he disputes homeowner assertions that his option ARMs are at fault.
"We have not been able to identify one delinquency, much less a foreclosure, that is due to the product," Sandler said, adding that "if home prices had not dropped, you wouldn't see" a single article.
Over all, analysts expect the option ARM fallout to be brutal. Fitch Ratings, a leading credit rating agency, recently reported that payments on nearly half of the $200 billion worth of option ARMs it tracks will jump 63 percent in the next two years — causing mortgage delinquencies to rise sharply.
Sandler says that his loans are not in the pool that will become distressed in the next few years; he says they reset at a later date. He adds that were he not sure that the market would recover he would have sold his Wachovia stock at the time of the takeover. His charity has sold off much of its Wachovia stock, but he said he and his wife retain a substantial portion of their personal holdings.
Still, the Sandlers have their detractors.
"As the largest and most respected regulated institution providing option ARMs, I hold the Sandlers responsible because a large percentage of home borrowers — but not all — should have been advised that it was in their best interest to have a fixed-rate mortgage," said Robert Gnaizda, general counsel for the Greenlining Institute, a homeowner advocacy group. "I believe that financial institutions have a quasi-fiduciary responsibility not to mislead the borrower."
Sandler insists that World Savings prided itself on ethical conduct and that untoward behavior was never tolerated. "We were also a family, and you expected people to live their personal and business lives in a particular way," he said.
***************
Bush changes mind on presidential pardon for developer
By David Stout and Eric Lichtblau
Thursday, December 25, 2008
WASHINGTON: President George W. Bush changed his mind on Christmas Eve, pulling back a pardon he had extended a day earlier to a New York developer at the center of a real estate fraud case and adding a bizarre twist to the episode.
The developer, Isaac Toussie, who was listed Tuesday as one of the beneficiaries of the president's constitutional power to wipe away a criminal record, is not being pardoned after all "based on information that has subsequently come to light," the White House said late Wednesday afternoon.
The terse White House statement did not elaborate, but officials familiar with the case said that presidential aides - and perhaps Bush himself - were concerned about appearances, because Toussie's father, Robert, donated $28,500 to the Republican National Committee last April, for what apparently was his first-ever political contribution.
He also donated $2,300 to the presidential campaign of Senator John McCain.
Regardless of how Toussie is perceived by Republicans in Washington, the name of Isaac Toussie is detested by many working-class people in the New York metropolitan area. In 2001, several hundred of them sued in U.S. District Court, accusing Toussie and his father of masterminding a scheme in which inexperienced or first-time home buyers were promised affordable and comfortable suburban houses but instead were sold shoddily built homes in poor neighborhoods and saddled by mortgage payments that shot up surprisingly.
"The politically connected get what they want, and little people like us are just left to sink or swim," Maxine Wilson, one of the complaining homeowners, said Wednesday after Toussie's pardon was announced, according to The Daily News. "Thanks to the president for the worst Christmas gift you could have ever given us."
Toussie, now 37, pleaded guilty in 2001 to using false documents to get mortgages insured by the Department of Housing and Urban Development and in 2002 to mail fraud, admitting that he had persuaded officials in Suffolk County, New York, to overpay for land known as the Chandler Estate. It appeared Tuesday that Toussie would have his record expunged of his crimes, which resulted in five months in prison, three years of supervised release conditioned on five months of home detention, and a $10,000 fine.
But the White House's announcement Wednesday noted that the U.S. pardon attorney, Ronald Rodgers, had not yet made a recommendation on the Toussie case, and that Bush believed he "should have an opportunity" to do so.
It was clear from the timing and wording of the announcement that there had been major confusion or miscommunication, or both, within the White House bureaucracy over the Toussie case. "Quite remarkable," Henry Mazurek of New York, one of Toussie's lawyers, said Wednesday evening, before a meeting with his client to discuss what to do next, if anything.
Another of Toussie's lawyers, Bradford Berenson of Washington, said his client was pleased that a pardon was initially announced Tuesday and held out hope that it might still come true. "Mr. Toussie looks forward to the pardon attorney's expeditious review of the application," Berenson said.
The episode is particularly embarrassing for Fred Fielding, the White House counsel, who is mentioned by title but not by name in the White House statement, which said pointedly that "the counsel to the president reviewed the application and believed, based on the information known to him at the time, that it was a meritorious application. He so advised the president, who accepted the recommendation."
The statement did not explain how Fielding came to believe the petition should be granted.
Under Justice Department guidelines, the department's pardon attorney does not generally even consider a petition for a pardon until five years from the time a defendant has completed his sentence.
Under that timetable, Toussie's request would not have come up for review until next May, although he submitted his petition in August.
"We had not even started processing the application because we knew it did not fit our guidelines," one Justice Department official said Wednesday, speaking on condition of anonymity because of the political sensitivity of the issue. Nor had the department given the White House any hint of where it stood on the case, the official said.
Administration officials and experts in pardon law said they were not aware of a prior instance of a president withdrawing a pardon after it was announced. "This is extraordinary," said Margie Love of Washington, who served as pardon attorney at the Justice Department in the 1990s. The Justice Department official said he thought Toussie would have no grounds to argue that the president could not take back a pardon once it has been issued. "A pardon isn't official until the warrant is received by the person who requested it, and that hasn't happened yet," the official said.
The Toussie episode comes as more lawyers appear to be going directly to the White House for consideration of pardons, rather than through normal Justice Department channels, according to people involved in the process. The most well known recent instance came in 2001, when President Bill Clinton pardoned the fugitive financier Marc Rich, even though the Justice Department had not offered a formal recommendation.
Sewell Chan and Sheryl Gay Stolberg contributed reporting.
By David Stout and Eric Lichtblau
Thursday, December 25, 2008
WASHINGTON: President George W. Bush changed his mind on Christmas Eve, pulling back a pardon he had extended a day earlier to a New York developer at the center of a real estate fraud case and adding a bizarre twist to the episode.
The developer, Isaac Toussie, who was listed Tuesday as one of the beneficiaries of the president's constitutional power to wipe away a criminal record, is not being pardoned after all "based on information that has subsequently come to light," the White House said late Wednesday afternoon.
The terse White House statement did not elaborate, but officials familiar with the case said that presidential aides - and perhaps Bush himself - were concerned about appearances, because Toussie's father, Robert, donated $28,500 to the Republican National Committee last April, for what apparently was his first-ever political contribution.
He also donated $2,300 to the presidential campaign of Senator John McCain.
Regardless of how Toussie is perceived by Republicans in Washington, the name of Isaac Toussie is detested by many working-class people in the New York metropolitan area. In 2001, several hundred of them sued in U.S. District Court, accusing Toussie and his father of masterminding a scheme in which inexperienced or first-time home buyers were promised affordable and comfortable suburban houses but instead were sold shoddily built homes in poor neighborhoods and saddled by mortgage payments that shot up surprisingly.
"The politically connected get what they want, and little people like us are just left to sink or swim," Maxine Wilson, one of the complaining homeowners, said Wednesday after Toussie's pardon was announced, according to The Daily News. "Thanks to the president for the worst Christmas gift you could have ever given us."
Toussie, now 37, pleaded guilty in 2001 to using false documents to get mortgages insured by the Department of Housing and Urban Development and in 2002 to mail fraud, admitting that he had persuaded officials in Suffolk County, New York, to overpay for land known as the Chandler Estate. It appeared Tuesday that Toussie would have his record expunged of his crimes, which resulted in five months in prison, three years of supervised release conditioned on five months of home detention, and a $10,000 fine.
But the White House's announcement Wednesday noted that the U.S. pardon attorney, Ronald Rodgers, had not yet made a recommendation on the Toussie case, and that Bush believed he "should have an opportunity" to do so.
It was clear from the timing and wording of the announcement that there had been major confusion or miscommunication, or both, within the White House bureaucracy over the Toussie case. "Quite remarkable," Henry Mazurek of New York, one of Toussie's lawyers, said Wednesday evening, before a meeting with his client to discuss what to do next, if anything.
Another of Toussie's lawyers, Bradford Berenson of Washington, said his client was pleased that a pardon was initially announced Tuesday and held out hope that it might still come true. "Mr. Toussie looks forward to the pardon attorney's expeditious review of the application," Berenson said.
The episode is particularly embarrassing for Fred Fielding, the White House counsel, who is mentioned by title but not by name in the White House statement, which said pointedly that "the counsel to the president reviewed the application and believed, based on the information known to him at the time, that it was a meritorious application. He so advised the president, who accepted the recommendation."
The statement did not explain how Fielding came to believe the petition should be granted.
Under Justice Department guidelines, the department's pardon attorney does not generally even consider a petition for a pardon until five years from the time a defendant has completed his sentence.
Under that timetable, Toussie's request would not have come up for review until next May, although he submitted his petition in August.
"We had not even started processing the application because we knew it did not fit our guidelines," one Justice Department official said Wednesday, speaking on condition of anonymity because of the political sensitivity of the issue. Nor had the department given the White House any hint of where it stood on the case, the official said.
Administration officials and experts in pardon law said they were not aware of a prior instance of a president withdrawing a pardon after it was announced. "This is extraordinary," said Margie Love of Washington, who served as pardon attorney at the Justice Department in the 1990s. The Justice Department official said he thought Toussie would have no grounds to argue that the president could not take back a pardon once it has been issued. "A pardon isn't official until the warrant is received by the person who requested it, and that hasn't happened yet," the official said.
The Toussie episode comes as more lawyers appear to be going directly to the White House for consideration of pardons, rather than through normal Justice Department channels, according to people involved in the process. The most well known recent instance came in 2001, when President Bill Clinton pardoned the fugitive financier Marc Rich, even though the Justice Department had not offered a formal recommendation.
Sewell Chan and Sheryl Gay Stolberg contributed reporting.
Pope urges dialogue in Christmas message
By Rachel Donadio
Thursday, December 25, 2008
ROME: Pope Benedict XVI called for peace in the Middle East, Darfur and Zimbabwe and stability in other war-torn lands in a particularly politically pointed Christmas greeting to the city and the world.
Delivering his annual "Urbi et Orbi" message from the balcony of Saint Peter's Basilica, the pope also spoke to the fears of people suffering from the financial crisis.
"Wherever an increasingly uncertain future is regarded with apprehension, even in affluent nations: in each of these places may the Light of Christmas shine forth and encourage all people to do their part in a spirit of authentic solidarity," the pope said. "If people look only to their own interests, our world will certainly fall apart."
Echoing a theme he had struck Wednesday night in his Midnight Mass homily, the pope called for peace in "the Holy Land, where the horizon seems once again bleak for Israelis and Palestinians." Adding: "May it spread throughout Lebanon, Iraq and the whole Middle East.
Talks are under way for the pope to visit Israel and the Palestinian territories as early as this spring, including a visit to Bethlehem in the Palestinian-controlled West Bank, although the Vatican has not officially announced the visit.
The Vatican, which opposed the war in Iraq, has been particularly outspoken in its concern about the state of Christians in Arab lands, who increasingly face persecution and emigration.
The pope blessed the efforts of "all those who, rather than resigning themselves to the twisted logic of conflict and violence, prefer instead the path of dialogue and negotiation as the means of resolving tensions within each country and finding just and lasting solutions to the conflicts troubling the region."
Benedict also turned his attention to Africa, where he is expected to make his first visit in March, traveling to Angola and Cameroon.
Adding: "This light, which brings transformation and renewal, is besought by the people of Zimbabwe, in Africa, trapped for all too long in a political and social crisis which, sadly, keeps worsening."
The pope also prayed for "the men and women of the Democratic Republic of Congo, especially in the war-torn region of Kivu, Darfur, in Sudan, and Somalia, whose interminable sufferings are the tragic consequence of the lack of stability and peace."
This year Benedict added Icelandic, bringing to 64 the number of languages in which he blessed the faithful. More Articles in World »
By Rachel Donadio
Thursday, December 25, 2008
ROME: Pope Benedict XVI called for peace in the Middle East, Darfur and Zimbabwe and stability in other war-torn lands in a particularly politically pointed Christmas greeting to the city and the world.
Delivering his annual "Urbi et Orbi" message from the balcony of Saint Peter's Basilica, the pope also spoke to the fears of people suffering from the financial crisis.
"Wherever an increasingly uncertain future is regarded with apprehension, even in affluent nations: in each of these places may the Light of Christmas shine forth and encourage all people to do their part in a spirit of authentic solidarity," the pope said. "If people look only to their own interests, our world will certainly fall apart."
Echoing a theme he had struck Wednesday night in his Midnight Mass homily, the pope called for peace in "the Holy Land, where the horizon seems once again bleak for Israelis and Palestinians." Adding: "May it spread throughout Lebanon, Iraq and the whole Middle East.
Talks are under way for the pope to visit Israel and the Palestinian territories as early as this spring, including a visit to Bethlehem in the Palestinian-controlled West Bank, although the Vatican has not officially announced the visit.
The Vatican, which opposed the war in Iraq, has been particularly outspoken in its concern about the state of Christians in Arab lands, who increasingly face persecution and emigration.
The pope blessed the efforts of "all those who, rather than resigning themselves to the twisted logic of conflict and violence, prefer instead the path of dialogue and negotiation as the means of resolving tensions within each country and finding just and lasting solutions to the conflicts troubling the region."
Benedict also turned his attention to Africa, where he is expected to make his first visit in March, traveling to Angola and Cameroon.
Adding: "This light, which brings transformation and renewal, is besought by the people of Zimbabwe, in Africa, trapped for all too long in a political and social crisis which, sadly, keeps worsening."
The pope also prayed for "the men and women of the Democratic Republic of Congo, especially in the war-torn region of Kivu, Darfur, in Sudan, and Somalia, whose interminable sufferings are the tragic consequence of the lack of stability and peace."
This year Benedict added Icelandic, bringing to 64 the number of languages in which he blessed the faithful. More Articles in World »
*******************
Gunman in Santa suit kills at least 5 in California
By Anahad O'Connor
Thursday, December 25, 2008
In a bizarre Christmas Eve rampage, a 45-year-old man in a Santa Claus outfit showed up at a party in a Los Angeles suburb and opened fire at a group of revelers, killing at least five people and injuring several others, including two children, the police said on Thursday.
The suspect, identified by witnesses as Bruce Jeffrey Pardo, later killed himself, the police said.
The shooting, which may have been prompted by a marital dispute, occurred just before midnight Wednesday at a two-story home on a cul de sac in Covina, a suburban town about 22 miles east of Los Angeles.
At least three bodies were initially discovered inside the home — which went up in flames moments after the shooting — and coroners found "several" more bodies as they sifted through the rubble at the scene on Thursday morning, according to The Associated Press.
Investigators said that about 30 people were inside the home celebrating on Christmas Eve when the costumed man knocked on the door. When a guest opened it, the man stepped inside the house, pulled out a handgun, and immediately started shooting, Lieut. Pat Buchanan of the Covina Police Department said in a telephone interview.
Officers quickly responded to a burst of 911 calls, and arrived at the house moments later to find that shots were still being fired inside. They also found the house engulfed in flames, but kept firefighters from getting too close until it appeared that the shooting had stopped. The police said there were three bodies inside the house, which have yet to be identified. Three survivors were transported to the hospital, two of whom had gunshot wounds, Lieutenant Buchanan said. They were described only as an 8-year-old, a 13-year-old, and a 16-year-old.
Witnesses said Pardo, whose last known address was just outside Los Angeles, stripped off his Santa outfit after the shootings and fled in street clothes. Lieutenant Buchanan said he had been having problems with his wife, the homeowner, who may have been a victim and whose name was not made public. It was also unclear what connection Pardo had to the injured children and the other victims, he said.
"We don't know if they were residents of the house or not," the officer said.
Covina, a suburb that boasts in its slogan "One mile square and all there," sits at the foot of the San Gabriel Mountains in the San Gabriel Valley. It has become a scenic backdrop for films and shows, including several episodes of the television series "Roswell" and the hit show "Knight Rider."
By Anahad O'Connor
Thursday, December 25, 2008
In a bizarre Christmas Eve rampage, a 45-year-old man in a Santa Claus outfit showed up at a party in a Los Angeles suburb and opened fire at a group of revelers, killing at least five people and injuring several others, including two children, the police said on Thursday.
The suspect, identified by witnesses as Bruce Jeffrey Pardo, later killed himself, the police said.
The shooting, which may have been prompted by a marital dispute, occurred just before midnight Wednesday at a two-story home on a cul de sac in Covina, a suburban town about 22 miles east of Los Angeles.
At least three bodies were initially discovered inside the home — which went up in flames moments after the shooting — and coroners found "several" more bodies as they sifted through the rubble at the scene on Thursday morning, according to The Associated Press.
Investigators said that about 30 people were inside the home celebrating on Christmas Eve when the costumed man knocked on the door. When a guest opened it, the man stepped inside the house, pulled out a handgun, and immediately started shooting, Lieut. Pat Buchanan of the Covina Police Department said in a telephone interview.
Officers quickly responded to a burst of 911 calls, and arrived at the house moments later to find that shots were still being fired inside. They also found the house engulfed in flames, but kept firefighters from getting too close until it appeared that the shooting had stopped. The police said there were three bodies inside the house, which have yet to be identified. Three survivors were transported to the hospital, two of whom had gunshot wounds, Lieutenant Buchanan said. They were described only as an 8-year-old, a 13-year-old, and a 16-year-old.
Witnesses said Pardo, whose last known address was just outside Los Angeles, stripped off his Santa outfit after the shootings and fled in street clothes. Lieutenant Buchanan said he had been having problems with his wife, the homeowner, who may have been a victim and whose name was not made public. It was also unclear what connection Pardo had to the injured children and the other victims, he said.
"We don't know if they were residents of the house or not," the officer said.
Covina, a suburb that boasts in its slogan "One mile square and all there," sits at the foot of the San Gabriel Mountains in the San Gabriel Valley. It has become a scenic backdrop for films and shows, including several episodes of the television series "Roswell" and the hit show "Knight Rider."
*******************
Israel preparing for an invasion of Gaza
The Associated Press
Thursday, December 25, 2008
JERUSALEM: Defense Minister Ehud Barak warned Thursday that militants in Hamas-ruled Gaza would pay a "heavy price" if they continued to target Israel, as the Israeli military wrapped up preparations for a possible large-scale assault on the coastal territory.
In Cairo, President Hosni Mubarak of Egypt urged Israel to show restraint in his meeting with Foreign Minister Tzipi Livni, an Israeli official said. Livni insisted that Israel would respond to protect its citizens.
On Wednesday, Palestinian militants pummeled southern Israel from Gaza with more than 80 rockets and mortars, causing no injuries but generating widespread panic. Cabinet ministers approved a broad invasion of Gaza, defense officials told The Associated Press.
"We will not accept this situation," Barak warned Thursday. "Whoever harms the citizens and soldiers of Israel will pay a heavy price."
He did not elaborate. But defense officials, speaking on the condition of anonymity because they were not permitted to discuss the plans, said the Israeli operation would likely begin with precise airstrikes against rocket launchers and continue with a land invasion. Harsh weather conditions are hampering visibility and complicating air force missions, so the operation won't be launched until the skies clear, they added.
Twelve mortars were fired early Thursday, causing no injuries. One landed at Israel's passenger crossing with Gaza as a group of Christians were going through, en route to the West Bank town of Bethlehem for Christmas Day celebrations, the military said.
Israel has been reluctant to press ahead with a campaign liable to exact heavy casualties on both sides. Past incursions have not halted the barrages.
Israel left Gaza in 2005 after a 38-year occupation but still controls its border crossings, which have been blockaded for months in an effort to pressure militants to halt their fire. Hamas seized control of Gaza in June 2007, after routing security forces loyal to the Palestinian president, Mahmoud Abbas, who is backed by the West.
A six-month truce that began unraveling six weeks ago came to a formal end Friday, and rocket fire has been escalating.
Livni's meetings with Egyptian leaders in Cairo originally were designed to try to renew the Egyptian-mediated truce. But after the bombardment Wednesday, Livni - who is running for prime minister in Israel's February elections - dismissed that option.
When Mubarak urged Israel to show restraint in the face of the rocket barrages, Livni brushed off the idea. "Enough is enough," she said, according to a statement from her office. "When there's shooting, there's a response. Any state would react that way."
Prime Minister Ehud Olmert of Israel appealed to the people of Gaza on Thursday to turn against their Hamas rulers, saying they were responsible for the territory's suffering. Olmert told the Arabic-language TV network Al Arabiya that Israel would not hesitate to respond with force if attacks continued.
Also Thursday, Abbas visited Hebron, the largest city in the West Bank, for the first time since he took office in 2005.
The Associated Press
Thursday, December 25, 2008
JERUSALEM: Defense Minister Ehud Barak warned Thursday that militants in Hamas-ruled Gaza would pay a "heavy price" if they continued to target Israel, as the Israeli military wrapped up preparations for a possible large-scale assault on the coastal territory.
In Cairo, President Hosni Mubarak of Egypt urged Israel to show restraint in his meeting with Foreign Minister Tzipi Livni, an Israeli official said. Livni insisted that Israel would respond to protect its citizens.
On Wednesday, Palestinian militants pummeled southern Israel from Gaza with more than 80 rockets and mortars, causing no injuries but generating widespread panic. Cabinet ministers approved a broad invasion of Gaza, defense officials told The Associated Press.
"We will not accept this situation," Barak warned Thursday. "Whoever harms the citizens and soldiers of Israel will pay a heavy price."
He did not elaborate. But defense officials, speaking on the condition of anonymity because they were not permitted to discuss the plans, said the Israeli operation would likely begin with precise airstrikes against rocket launchers and continue with a land invasion. Harsh weather conditions are hampering visibility and complicating air force missions, so the operation won't be launched until the skies clear, they added.
Twelve mortars were fired early Thursday, causing no injuries. One landed at Israel's passenger crossing with Gaza as a group of Christians were going through, en route to the West Bank town of Bethlehem for Christmas Day celebrations, the military said.
Israel has been reluctant to press ahead with a campaign liable to exact heavy casualties on both sides. Past incursions have not halted the barrages.
Israel left Gaza in 2005 after a 38-year occupation but still controls its border crossings, which have been blockaded for months in an effort to pressure militants to halt their fire. Hamas seized control of Gaza in June 2007, after routing security forces loyal to the Palestinian president, Mahmoud Abbas, who is backed by the West.
A six-month truce that began unraveling six weeks ago came to a formal end Friday, and rocket fire has been escalating.
Livni's meetings with Egyptian leaders in Cairo originally were designed to try to renew the Egyptian-mediated truce. But after the bombardment Wednesday, Livni - who is running for prime minister in Israel's February elections - dismissed that option.
When Mubarak urged Israel to show restraint in the face of the rocket barrages, Livni brushed off the idea. "Enough is enough," she said, according to a statement from her office. "When there's shooting, there's a response. Any state would react that way."
Prime Minister Ehud Olmert of Israel appealed to the people of Gaza on Thursday to turn against their Hamas rulers, saying they were responsible for the territory's suffering. Olmert told the Arabic-language TV network Al Arabiya that Israel would not hesitate to respond with force if attacks continued.
Also Thursday, Abbas visited Hebron, the largest city in the West Bank, for the first time since he took office in 2005.
********************
Deadly bombs strike Iraq
Reuters
Thursday, December 25, 2008
BAGHDAD: A car bomb near a popular restaurant in northwestern Baghdad killed four people and wounded 25 on Thursday, the police said.
A few hours later, a suicide car bomber targeting a U.S. military patrol, killing three people and wounding 14 in Muqdadiya, 80 kilometers, or 50 miles, northeast of Baghdad, the police said. The U.S. military said it was checking if there were any U.S. casualties.
The explosion near the restaurant in the Shiite district of Shula in Baghdad occurred while policemen and laborers were eating breakfast. Casualties included police officers and civilians, the police said.
The Shiite-led Iraqi government declared Thursday, Christmas Day, a national holiday to show what it said was its solidarity with minority non-Muslim religious groups in Iraq.
Violence has dropped sharply in Iraq, where the U.S.-led invasion in 2003 unleashed years of sectarian and insurgent attacks. However, car bombs, suicide bombings and assassinations are still routine.
A week ago, twin bomb blasts killed 18 people and wounded 53 in central Baghdad.
Reuters
Thursday, December 25, 2008
BAGHDAD: A car bomb near a popular restaurant in northwestern Baghdad killed four people and wounded 25 on Thursday, the police said.
A few hours later, a suicide car bomber targeting a U.S. military patrol, killing three people and wounding 14 in Muqdadiya, 80 kilometers, or 50 miles, northeast of Baghdad, the police said. The U.S. military said it was checking if there were any U.S. casualties.
The explosion near the restaurant in the Shiite district of Shula in Baghdad occurred while policemen and laborers were eating breakfast. Casualties included police officers and civilians, the police said.
The Shiite-led Iraqi government declared Thursday, Christmas Day, a national holiday to show what it said was its solidarity with minority non-Muslim religious groups in Iraq.
Violence has dropped sharply in Iraq, where the U.S.-led invasion in 2003 unleashed years of sectarian and insurgent attacks. However, car bombs, suicide bombings and assassinations are still routine.
A week ago, twin bomb blasts killed 18 people and wounded 53 in central Baghdad.
*******************
German Navy thwarts pirate attack
The Associated Press
Thursday, December 25, 2008
CAIRO: A German military helicopter chased away pirates who were trying to board an Egyptian ship on Thursday off the coast of Somalia. One of the ship's crew was shot in the attack.
The ship, a bulk carrier with 31 crew members, was passing through the Gulf of Aden on its way to Asia when gun-toting pirates in a speedboat began pursuing it, said Noel Choong of the International Maritime Bureau's piracy reporting center.
A passing ship alerted the bureau, based in Kuala Lumpur, which asked a multinational naval coalition force in the area to help, Choong said.
In response, the German Navy frigate Karlsruhe dispatched a helicopter, a military spokesman said, speaking on condition of anonymity in accord with military policy.
The pirates fled as the chopper reached the vessel, according to a statement from the German military, but not before shooting and wounding one of the ship's crew members.
A second helicopter, carrying a medical team, retrieved the wounded crewmember, who is now receiving treatment on the Karlsruhe, the statement said.
After the attack, the Egyptian vessel, the Wadi al-Arab, continued on its way to South Korea, where it was delivering a shipment of wheat from Ukraine, said Deputy Foreign Minister Ahmed Rizq of Egypt.
Piracy has taken an increasing toll on international shipping this year, especially in the Gulf of Aden, one of the world's busiest sea lanes. Motivated by widespread poverty in their homeland, Somali pirates have made an estimated $30 million hijacking ships for ransom this year.
More than a dozen warships are now patrolling the vast gulf. Britain, India, Iran, America, France and Germany are among the countries with naval forces in the waters or on their way there.
"Despite increased naval patrols, pirates are continuing to attack ships because the warships cannot be everywhere at the same time," Choong said. "But we are pleased with the quick assistance by the coalition force."
He said there had been 110 pirate attacks in the Gulf of Aden this year, including 42 hijackings. Most ships were released after a ransom was paid, though 14 ships, with more than 240 crew members, are still being held.
A second German frigate responded to another emergency call on Thursday from a different ship in the gulf, the military said. The statement gave no other details on that incident.
Japan said Wednesday that it was considering sending military ships to join the coalition. China is scheduled to send warships on Friday. In November, senior officials from Saudi Arabia, Djibouti, Egypt, Jordan, Somalia, Sudan and Yemen met in Cairo to coordinate efforts to combat piracy.
Somalia, a nation of about 8 million people, has not had a functioning government since warlords overthrew a dictator in 1991 and then turned on each other.
The Associated Press
Thursday, December 25, 2008
CAIRO: A German military helicopter chased away pirates who were trying to board an Egyptian ship on Thursday off the coast of Somalia. One of the ship's crew was shot in the attack.
The ship, a bulk carrier with 31 crew members, was passing through the Gulf of Aden on its way to Asia when gun-toting pirates in a speedboat began pursuing it, said Noel Choong of the International Maritime Bureau's piracy reporting center.
A passing ship alerted the bureau, based in Kuala Lumpur, which asked a multinational naval coalition force in the area to help, Choong said.
In response, the German Navy frigate Karlsruhe dispatched a helicopter, a military spokesman said, speaking on condition of anonymity in accord with military policy.
The pirates fled as the chopper reached the vessel, according to a statement from the German military, but not before shooting and wounding one of the ship's crew members.
A second helicopter, carrying a medical team, retrieved the wounded crewmember, who is now receiving treatment on the Karlsruhe, the statement said.
After the attack, the Egyptian vessel, the Wadi al-Arab, continued on its way to South Korea, where it was delivering a shipment of wheat from Ukraine, said Deputy Foreign Minister Ahmed Rizq of Egypt.
Piracy has taken an increasing toll on international shipping this year, especially in the Gulf of Aden, one of the world's busiest sea lanes. Motivated by widespread poverty in their homeland, Somali pirates have made an estimated $30 million hijacking ships for ransom this year.
More than a dozen warships are now patrolling the vast gulf. Britain, India, Iran, America, France and Germany are among the countries with naval forces in the waters or on their way there.
"Despite increased naval patrols, pirates are continuing to attack ships because the warships cannot be everywhere at the same time," Choong said. "But we are pleased with the quick assistance by the coalition force."
He said there had been 110 pirate attacks in the Gulf of Aden this year, including 42 hijackings. Most ships were released after a ransom was paid, though 14 ships, with more than 240 crew members, are still being held.
A second German frigate responded to another emergency call on Thursday from a different ship in the gulf, the military said. The statement gave no other details on that incident.
Japan said Wednesday that it was considering sending military ships to join the coalition. China is scheduled to send warships on Friday. In November, senior officials from Saudi Arabia, Djibouti, Egypt, Jordan, Somalia, Sudan and Yemen met in Cairo to coordinate efforts to combat piracy.
Somalia, a nation of about 8 million people, has not had a functioning government since warlords overthrew a dictator in 1991 and then turned on each other.
********************
Taliban choking a vital NATO supply line
By Richard A. Oppel Jr. and Pir Zubair Shah
Thursday, December 25, 2008
PESHAWAR, Pakistan: This frontier city boasts a major air base and Pakistani Army and paramilitary garrisons. But the 200 Taliban guerrillas were in no rush as they methodically ransacked a NATO supply depot here two weeks ago.
The militants began by blocking off a long stretch of the main road, giving them plenty of time to burn everything inside, said one guard, Haroon Khan, who was standing next to a row of charred trucks.
After assuring the overmatched guards they would not be killed - if they agreed never to work there again - the militants shouted "God is great" through bullhorns. They then grabbed jerrycans and made several trips to a nearby gas station for fuel, which they dumped on the cargo trucks and Humvees before setting them ablaze.
The attack provided the latest evidence of how extensively militants now rule the critical region east of the Khyber Pass, the narrow cut through the mountains on the Pakistan-Afghanistan border that has been a strategic trade and military gateway since the time of Alexander the Great.
The area encompasses what is officially known as the Khyber Agency, which is adjacent to Peshawar and is one of a handful of lawless tribal districts on the border. But security in Khyber has deteriorated further in recent months with the emergence of a brash young Taliban commander who calls news conferences to thumb his nose at NATO forces, as well as with public fury over deadly missile attacks by American remotely piloted aircraft.
Khyber's downward spiral is jeopardizing NATO's most important supply line, sending American military officials scrambling to find alternative routes into Afghanistan through Russia and Central Asia.
Three-quarters of troop supplies enter from Pakistan, most of the goods ferried from Karachi to Peshawar and then about 65 kilometers, or 40 miles, west through the Khyber Pass into Afghanistan.
A half-dozen raids on NATO supply terminals here have already destroyed 300 cargo trucks and Humvees this month. American officials insist that troop provisions have not suffered, but with predictions that the American deployment in Afghanistan could double next year to 60,000 soldiers, the pressure to secure safer transportation is even more intense.
For NATO the most serious problem is not even the terminals in Peshawar but the safety of the road that winds west to the 1,070-meter, or 3,500-foot, Khyber Pass. The route used to be relatively secure: Afridi tribesmen were paid by the government to safeguard it, and they were subject to severe penalties and collective tribal punishment for crimes against travelers.
But now the road is a death trap, truckers and some security officials say, with routine attacks like one on Sunday that burned a fuel tanker and another last Friday that killed three drivers returning from Afghanistan.
"The road is so unsafe that even the locals are reluctant to go back to their villages from Peshawar," said Gul Naseem, who lives in Landi Kotal, a town near the border.
The largest truckers' association here has gone on strike to protest the lack of security, saying the job action has sidelined 60 percent of the trucks that haul military goods. An American official denied that the drop-off was that severe.
Escalating violence on the Khyber road has paralleled the rise of Hakimullah Mehsud, a young Taliban commander and lieutenant of Baitullah Mehsud, leader of the main Pakistani Taliban faction.
Earlier this year, Hakimullah Mehsud's forces took control of Orakzai Agency and instituted the strict Islamic laws known as Shariah. At a news conference there one month ago, Mehsud declared his intention to intensify attacks on NATO supply convoys. Some security officials say they believe he was behind the assassination in August of a rival militant leader, Hajji Namdar, in Khyber.
At the same time, another powerful Khyber warlord, Mangal Bagh, who officials say has not been attacking the convoys, has seen his influence shrink somewhat, easing the path for Mehsud's authority to expand inside Khyber.
Increased missile attacks by American remotely piloted aircraft - like one that killed seven people in the South Waziristan Agency on Monday - have enraged residents in Khyber and other tribal areas near the border, increasing sympathy for attacks on convoys.
Raising the prospect of an even wider threat to the convoys, an influential Islamic party, Jamaat-e-Islami, staged a rally last week in Peshawar, turning out thousands to condemn the missile strikes. The marchers demanded that Pakistan end the NATO convoys, and they vowed to cut the supply lines themselves.
Taliban militants have also moved into Khyber after Pakistani military campaigns in nearby areas like Bajaur Agency. Their migration is reminiscent of a tactic that bedeviled the American military in Iraq for years - dubbed "whack a mole" by combat officers - in which guerrillas eluded large American combat operations and moved to take up positions in areas with understaffed troop contingents.
All those factors have been amplified, in the view of some officials, by the torpor of the Pakistani government. Mahmood Shah, a retired Pakistani Army brigadier who until 2006 was in charge of security in the western tribal regions, said the government had the manpower to drive militants out of Khyber but had mounted only a weak response.
He recounted a recent conversation with a senior Pakistani government official. "You have the chance to wake up," he said he told the official. "But if you don't wake up now, there is a good chance you won't wake up at all."Bomb in Lahore kills woman
A bomb-rigged truck with government plates exploded in Lahore on Wednesday, killing one person in a heavily guarded neighborhood that is home to many government officials in the eastern Pakistani city, The Associated Press reported.
Umer Virk, the head of the Crime Investigation Department in Lahore, said the target of the blast probably was a police officer who headed an operation that led to the death of a leader of the Qaeda-linked militant group Lashkar-e-Jhangvi in 2002.
The officer escaped the explosion near his home, but it killed a Christian woman and wounded four of her relatives as they drove together to a Christmas function, Virk said.
Separately, a Chinese engineer was shot and wounded as he shopped at a market in the northwest, where a wave of militant attacks has taken place.
By Richard A. Oppel Jr. and Pir Zubair Shah
Thursday, December 25, 2008
PESHAWAR, Pakistan: This frontier city boasts a major air base and Pakistani Army and paramilitary garrisons. But the 200 Taliban guerrillas were in no rush as they methodically ransacked a NATO supply depot here two weeks ago.
The militants began by blocking off a long stretch of the main road, giving them plenty of time to burn everything inside, said one guard, Haroon Khan, who was standing next to a row of charred trucks.
After assuring the overmatched guards they would not be killed - if they agreed never to work there again - the militants shouted "God is great" through bullhorns. They then grabbed jerrycans and made several trips to a nearby gas station for fuel, which they dumped on the cargo trucks and Humvees before setting them ablaze.
The attack provided the latest evidence of how extensively militants now rule the critical region east of the Khyber Pass, the narrow cut through the mountains on the Pakistan-Afghanistan border that has been a strategic trade and military gateway since the time of Alexander the Great.
The area encompasses what is officially known as the Khyber Agency, which is adjacent to Peshawar and is one of a handful of lawless tribal districts on the border. But security in Khyber has deteriorated further in recent months with the emergence of a brash young Taliban commander who calls news conferences to thumb his nose at NATO forces, as well as with public fury over deadly missile attacks by American remotely piloted aircraft.
Khyber's downward spiral is jeopardizing NATO's most important supply line, sending American military officials scrambling to find alternative routes into Afghanistan through Russia and Central Asia.
Three-quarters of troop supplies enter from Pakistan, most of the goods ferried from Karachi to Peshawar and then about 65 kilometers, or 40 miles, west through the Khyber Pass into Afghanistan.
A half-dozen raids on NATO supply terminals here have already destroyed 300 cargo trucks and Humvees this month. American officials insist that troop provisions have not suffered, but with predictions that the American deployment in Afghanistan could double next year to 60,000 soldiers, the pressure to secure safer transportation is even more intense.
For NATO the most serious problem is not even the terminals in Peshawar but the safety of the road that winds west to the 1,070-meter, or 3,500-foot, Khyber Pass. The route used to be relatively secure: Afridi tribesmen were paid by the government to safeguard it, and they were subject to severe penalties and collective tribal punishment for crimes against travelers.
But now the road is a death trap, truckers and some security officials say, with routine attacks like one on Sunday that burned a fuel tanker and another last Friday that killed three drivers returning from Afghanistan.
"The road is so unsafe that even the locals are reluctant to go back to their villages from Peshawar," said Gul Naseem, who lives in Landi Kotal, a town near the border.
The largest truckers' association here has gone on strike to protest the lack of security, saying the job action has sidelined 60 percent of the trucks that haul military goods. An American official denied that the drop-off was that severe.
Escalating violence on the Khyber road has paralleled the rise of Hakimullah Mehsud, a young Taliban commander and lieutenant of Baitullah Mehsud, leader of the main Pakistani Taliban faction.
Earlier this year, Hakimullah Mehsud's forces took control of Orakzai Agency and instituted the strict Islamic laws known as Shariah. At a news conference there one month ago, Mehsud declared his intention to intensify attacks on NATO supply convoys. Some security officials say they believe he was behind the assassination in August of a rival militant leader, Hajji Namdar, in Khyber.
At the same time, another powerful Khyber warlord, Mangal Bagh, who officials say has not been attacking the convoys, has seen his influence shrink somewhat, easing the path for Mehsud's authority to expand inside Khyber.
Increased missile attacks by American remotely piloted aircraft - like one that killed seven people in the South Waziristan Agency on Monday - have enraged residents in Khyber and other tribal areas near the border, increasing sympathy for attacks on convoys.
Raising the prospect of an even wider threat to the convoys, an influential Islamic party, Jamaat-e-Islami, staged a rally last week in Peshawar, turning out thousands to condemn the missile strikes. The marchers demanded that Pakistan end the NATO convoys, and they vowed to cut the supply lines themselves.
Taliban militants have also moved into Khyber after Pakistani military campaigns in nearby areas like Bajaur Agency. Their migration is reminiscent of a tactic that bedeviled the American military in Iraq for years - dubbed "whack a mole" by combat officers - in which guerrillas eluded large American combat operations and moved to take up positions in areas with understaffed troop contingents.
All those factors have been amplified, in the view of some officials, by the torpor of the Pakistani government. Mahmood Shah, a retired Pakistani Army brigadier who until 2006 was in charge of security in the western tribal regions, said the government had the manpower to drive militants out of Khyber but had mounted only a weak response.
He recounted a recent conversation with a senior Pakistani government official. "You have the chance to wake up," he said he told the official. "But if you don't wake up now, there is a good chance you won't wake up at all."Bomb in Lahore kills woman
A bomb-rigged truck with government plates exploded in Lahore on Wednesday, killing one person in a heavily guarded neighborhood that is home to many government officials in the eastern Pakistani city, The Associated Press reported.
Umer Virk, the head of the Crime Investigation Department in Lahore, said the target of the blast probably was a police officer who headed an operation that led to the death of a leader of the Qaeda-linked militant group Lashkar-e-Jhangvi in 2002.
The officer escaped the explosion near his home, but it killed a Christian woman and wounded four of her relatives as they drove together to a Christmas function, Virk said.
Separately, a Chinese engineer was shot and wounded as he shopped at a market in the northwest, where a wave of militant attacks has taken place.
*****************
Mumbai Jews celebrate Hanukah and remember victims
Reuters
Thursday, December 25, 2008
By Rina Chandran
The parents of a rabbi and his wife slain in last month's Mumbai attack lit a menorah outside a badly damaged Jewish centre Thursday, vowing the centre's work would continue.
Rabbi Nachman Holtzberg of New York, father of Rabbi Gavriel Holtzberg, gathered with other community leaders outside the Chabad-Lubavitch centre at Nariman House as part of Hanukah celebrations.
The centre was one of 10 sites attacked by Islamist militants in India's financial centre on November 26-29. The attacks, blamed by India and the United States on Pakistan-based militants, killed at least 179 people.
Watched by dozens of police and onlookers gathered in the busy street, Nachman Holtzberg recited blessings before a group of rabbis led the delegation in prayer. The parents of Gavriel Holtzberg's wife Rivka were also present.
"This home was open to everyone," said Rabbi Moshe Kotlarsky, vice chairman of the educational arm of Chabad-Lubavitch. "Its activities will continue."
Parts of the six-storey Nariman House, which was nearly destroyed in a siege after gunmen stormed in, have been knocked down by city authorities and a team is assessing damage to the rest of the building, Kotlarsky said.
"Just a few weeks ago, this city suffered a great atrocity, and tonight we mourn the loss of the young rabbi and his wife who moved to Mumbai to be emissaries," Kotlarsky said.
"We also celebrate the victory of right over wrong, and we are committed to continuing the legacy of Gavriel and Rivka. We won't take even one baby step back. We are not leaving Mumbai."
The rabbi's 2-year-old son Moshe, who was saved by his nanny and is now with his grandparents in Israel, will return to Mumbai, Kotlarsky said.
Gavriel Holtzberg came to Mumbai in 2003 to run a synagogue and Torah classes as part of the Chabad-Lubavitch movement, an Orthodox Jewish group which has about 4,000 emissaries at more than 3,000 sites around the world.
Fewer than 5,000 Jews remain among India's 1.1 billion people, but the faith has a long history in the country, with the first established community thought to have been formed in the southern state of Kerala in 70 AD.
(Editing by Andrew Roche)
Reuters
Thursday, December 25, 2008
By Rina Chandran
The parents of a rabbi and his wife slain in last month's Mumbai attack lit a menorah outside a badly damaged Jewish centre Thursday, vowing the centre's work would continue.
Rabbi Nachman Holtzberg of New York, father of Rabbi Gavriel Holtzberg, gathered with other community leaders outside the Chabad-Lubavitch centre at Nariman House as part of Hanukah celebrations.
The centre was one of 10 sites attacked by Islamist militants in India's financial centre on November 26-29. The attacks, blamed by India and the United States on Pakistan-based militants, killed at least 179 people.
Watched by dozens of police and onlookers gathered in the busy street, Nachman Holtzberg recited blessings before a group of rabbis led the delegation in prayer. The parents of Gavriel Holtzberg's wife Rivka were also present.
"This home was open to everyone," said Rabbi Moshe Kotlarsky, vice chairman of the educational arm of Chabad-Lubavitch. "Its activities will continue."
Parts of the six-storey Nariman House, which was nearly destroyed in a siege after gunmen stormed in, have been knocked down by city authorities and a team is assessing damage to the rest of the building, Kotlarsky said.
"Just a few weeks ago, this city suffered a great atrocity, and tonight we mourn the loss of the young rabbi and his wife who moved to Mumbai to be emissaries," Kotlarsky said.
"We also celebrate the victory of right over wrong, and we are committed to continuing the legacy of Gavriel and Rivka. We won't take even one baby step back. We are not leaving Mumbai."
The rabbi's 2-year-old son Moshe, who was saved by his nanny and is now with his grandparents in Israel, will return to Mumbai, Kotlarsky said.
Gavriel Holtzberg came to Mumbai in 2003 to run a synagogue and Torah classes as part of the Chabad-Lubavitch movement, an Orthodox Jewish group which has about 4,000 emissaries at more than 3,000 sites around the world.
Fewer than 5,000 Jews remain among India's 1.1 billion people, but the faith has a long history in the country, with the first established community thought to have been formed in the southern state of Kerala in 70 AD.
(Editing by Andrew Roche)
*****************
A foreigner who is welcome in Afghanistan
By John F. Burns
Thursday, December 25, 2008
KABUL: History has fostered a notion here that all foreign occupations of Afghanistan ultimately are doomed.
There was the catastrophic retreat of a British expeditionary force in 1842. Nearly 150 years later came the Soviet troop withdrawal of 1989. Now, with the Taliban pressing in on this city and dominating the countryside, there are fears that this occupation, too, will eventually fail.
But whatever the outcome, Afghans of all ethnic and political stripes, even the Taliban, seem likely to count Alberto Cairo as one foreigner who left the country better than he found it.
Cairo, once a debonair lawyer in his native Turin, Italy, is almost certainly the most celebrated Western relief official in Afghanistan, at least among Afghans. To the generation that has benefited from his relief work for the International Committee of the Red Cross, he is known simply as "Mr. Alberto," a man apart among the 15,000 foreigners who live and work in this city.
That total includes civilians working for embassies or foreign relief agencies, like Cairo, and troops from 41 nations fighting to hold the line against Al Qaeda and the Taliban. In the turbulent history of Afghanistan, there have rarely been as many foreigners living in Kabul, the Afghan capital, nor as much riding on what they achieve.
Cairo, 56, arrived long before the vast majority of them, in 1990, after the Soviet occupation. He had transferred from a Red Cross posting in Africa to run the orthopedic rehabilitation program of the organization - a job dedicated to helping Afghans disabled by war injuries to live normally again, by equipping them with artificial legs and arms.
What the Red Cross centers have accomplished is visible on the streets of almost every Afghan town and village. Since the Red Cross started the program in 1988, the centers have provided prostheses to nearly 90,000 Afghans, between a third and a quarter of all those thought to have suffered disabling injuries from 30 years of warfare, beginning with the Soviet invasion. Many Red Cross patients were victims of the 10 million mines strewn across the landscape during the Soviet period.
Cairo, slim, affable and an energetic enthusiast of tennis, rarely shows the edginess that wears away at the most courtly of foreigners under stress in foreign lands. But a rare impatience shows when the people who know what he has accomplished suggest that he has become a legend here. Rather, Cairo says, it is he, more than his patients, who has been the greatest beneficiary of his years in Kabul.
His passion took root the moment he arrived. Not long before, he had abandoned law and retrained as a physiotherapist, seeing it as a path to a more fulfilling life. Now, he says, he cannot imagine another life.
"When I'm away from Afghanistan, I can't think of anything but what I have here," he said during a pasta dinner he cooked at his Kabul home.
Continuing in English, which he speaks fluently and mixes, when among Afghans, with a strong working command of Dari and Pashto, the principal languages of Afghanistan, he added: "Whenever I go to Europe, I'm scared that for some reason I won't be able to come back. What I'm doing here is so rewarding. For me, it's perfect."
The Kabul rehabilitation center is a spacious complex built on an old hospital graveyard in northwestern Kabul. It was assigned to the Red Cross by President Najibullah, the Afghan leader during the last years of the Soviet occupation who was lynched by the Taliban in 1996.
The center has remained there ever since, despite a break during a period of ethnic warfare in the early 1990s. Unusually, for a highly visible operation involving foreigners, it has never been attacked.
In the traditions of the Red Cross, the orthopedic centers make no distinction on the basis of political affiliation. Asked whether disabled Taliban fighters were at the centers, Cairo replied: "I hope so. We ask for a name when our patients register, but they can give any name, and we don't investigate."
In practice, many new patients treated at the centers now, about 6,000 a year, are not war casualties, or even victims of the mines.
Two decades of intensive mine-clearing operations by the United Nations and by private charities like the Halo Trust of Britain have cleared most of the minefields in the lower-lying areas where Afghan villagers, particularly farmers, are vulnerable.
Instead, many of the new patients are being treated as a result of circumstances not related to war: car accidents, congenital deformities, or the effects of polio or tuberculosis.
But the legacy of past fighting and the injuries inflicted in the current conflict - in which both Taliban and coalition forces have caused civilian casualties - keep the centers busy. Of the 90,000 people who have received new limbs, 70,000 revisit the centers every year, usually to replace or readjust their prostheses, which last an average of two to three years for adults and as little as six months for children. All the treatments, including overnight stays, are free.
Cairo's passion for his patients is reciprocal, and nowhere is that more evident than out on the open-air testing ground of the Kabul center, where men, women and children, some standing for the first time in years, learn to walk again. Tears flow readily, and much of the gratitude flows to "Mr. Alberto."
Shah Mohammed, a 25-year-old police officer who lost a leg this year to a bomb buried by the Taliban, waited in a wheelchair. The Americans? "It is better that they should be here, because of the Taliban," he said. And the Taliban? "If I find them, I'll put them in a grinding machine."
He paused, and turned to something more immediate. "Mr. Alberto," he said. "We love him. Please put that down. We love him."
By John F. Burns
Thursday, December 25, 2008
KABUL: History has fostered a notion here that all foreign occupations of Afghanistan ultimately are doomed.
There was the catastrophic retreat of a British expeditionary force in 1842. Nearly 150 years later came the Soviet troop withdrawal of 1989. Now, with the Taliban pressing in on this city and dominating the countryside, there are fears that this occupation, too, will eventually fail.
But whatever the outcome, Afghans of all ethnic and political stripes, even the Taliban, seem likely to count Alberto Cairo as one foreigner who left the country better than he found it.
Cairo, once a debonair lawyer in his native Turin, Italy, is almost certainly the most celebrated Western relief official in Afghanistan, at least among Afghans. To the generation that has benefited from his relief work for the International Committee of the Red Cross, he is known simply as "Mr. Alberto," a man apart among the 15,000 foreigners who live and work in this city.
That total includes civilians working for embassies or foreign relief agencies, like Cairo, and troops from 41 nations fighting to hold the line against Al Qaeda and the Taliban. In the turbulent history of Afghanistan, there have rarely been as many foreigners living in Kabul, the Afghan capital, nor as much riding on what they achieve.
Cairo, 56, arrived long before the vast majority of them, in 1990, after the Soviet occupation. He had transferred from a Red Cross posting in Africa to run the orthopedic rehabilitation program of the organization - a job dedicated to helping Afghans disabled by war injuries to live normally again, by equipping them with artificial legs and arms.
What the Red Cross centers have accomplished is visible on the streets of almost every Afghan town and village. Since the Red Cross started the program in 1988, the centers have provided prostheses to nearly 90,000 Afghans, between a third and a quarter of all those thought to have suffered disabling injuries from 30 years of warfare, beginning with the Soviet invasion. Many Red Cross patients were victims of the 10 million mines strewn across the landscape during the Soviet period.
Cairo, slim, affable and an energetic enthusiast of tennis, rarely shows the edginess that wears away at the most courtly of foreigners under stress in foreign lands. But a rare impatience shows when the people who know what he has accomplished suggest that he has become a legend here. Rather, Cairo says, it is he, more than his patients, who has been the greatest beneficiary of his years in Kabul.
His passion took root the moment he arrived. Not long before, he had abandoned law and retrained as a physiotherapist, seeing it as a path to a more fulfilling life. Now, he says, he cannot imagine another life.
"When I'm away from Afghanistan, I can't think of anything but what I have here," he said during a pasta dinner he cooked at his Kabul home.
Continuing in English, which he speaks fluently and mixes, when among Afghans, with a strong working command of Dari and Pashto, the principal languages of Afghanistan, he added: "Whenever I go to Europe, I'm scared that for some reason I won't be able to come back. What I'm doing here is so rewarding. For me, it's perfect."
The Kabul rehabilitation center is a spacious complex built on an old hospital graveyard in northwestern Kabul. It was assigned to the Red Cross by President Najibullah, the Afghan leader during the last years of the Soviet occupation who was lynched by the Taliban in 1996.
The center has remained there ever since, despite a break during a period of ethnic warfare in the early 1990s. Unusually, for a highly visible operation involving foreigners, it has never been attacked.
In the traditions of the Red Cross, the orthopedic centers make no distinction on the basis of political affiliation. Asked whether disabled Taliban fighters were at the centers, Cairo replied: "I hope so. We ask for a name when our patients register, but they can give any name, and we don't investigate."
In practice, many new patients treated at the centers now, about 6,000 a year, are not war casualties, or even victims of the mines.
Two decades of intensive mine-clearing operations by the United Nations and by private charities like the Halo Trust of Britain have cleared most of the minefields in the lower-lying areas where Afghan villagers, particularly farmers, are vulnerable.
Instead, many of the new patients are being treated as a result of circumstances not related to war: car accidents, congenital deformities, or the effects of polio or tuberculosis.
But the legacy of past fighting and the injuries inflicted in the current conflict - in which both Taliban and coalition forces have caused civilian casualties - keep the centers busy. Of the 90,000 people who have received new limbs, 70,000 revisit the centers every year, usually to replace or readjust their prostheses, which last an average of two to three years for adults and as little as six months for children. All the treatments, including overnight stays, are free.
Cairo's passion for his patients is reciprocal, and nowhere is that more evident than out on the open-air testing ground of the Kabul center, where men, women and children, some standing for the first time in years, learn to walk again. Tears flow readily, and much of the gratitude flows to "Mr. Alberto."
Shah Mohammed, a 25-year-old police officer who lost a leg this year to a bomb buried by the Taliban, waited in a wheelchair. The Americans? "It is better that they should be here, because of the Taliban," he said. And the Taliban? "If I find them, I'll put them in a grinding machine."
He paused, and turned to something more immediate. "Mr. Alberto," he said. "We love him. Please put that down. We love him."
*****************
British marine killed in Afghan fighting
The Associated Press
Thursday, December 25, 2008
A British marine was killed in Afghanistan's volatile Helmand Province, the Ministry of Defense and NATO said Thursday.
The marine from the 42 Commando unit died in enemy fire Wednesday while he was on patrol in the Nad-e-Ali district near Lashkar Gah, according to Captain Mark Windsor, a NATO spokesman from the British Royal Navy.
His name has not been released.
Britain has lost 136 troops in Afghanistan since 2001.
The Associated Press
Thursday, December 25, 2008
A British marine was killed in Afghanistan's volatile Helmand Province, the Ministry of Defense and NATO said Thursday.
The marine from the 42 Commando unit died in enemy fire Wednesday while he was on patrol in the Nad-e-Ali district near Lashkar Gah, according to Captain Mark Windsor, a NATO spokesman from the British Royal Navy.
His name has not been released.
Britain has lost 136 troops in Afghanistan since 2001.
*****************
EDITORIAL
Forging new relations with Russia
Thursday, December 25, 2008
Few U.S. presidents have come to office facing quite the variety of crises that Barack Obama faces, so he may be tempted to put Russia on a back burner - especially as Vladimir Putin is not someone with whom many Americans want to build cooperative relations these days.
But Russian-American relations have disintegrated to a dangerous low, with the Kremlin increasingly acting to antagonize the United States, whether by sending warships to Venezuela or by withholding cooperation on Iran. If these issues can be addressed, Russia's potential for helping resolve other crises is too great to dismiss.
There is another unwelcome fact: America's European allies are in no mood to take their cue on Russia from Washington. A majority have resisted American efforts to quickly bring Georgia and Ukraine into NATO. The alliance, which cut formal ties with Russia after the Georgian-Russia war last August, has begun a "conditional and graduated re-engagement" with Moscow.
Given NATO's declaration that there would not be "business as usual" until Russia withdrew all its troops from Georgia and canceled its annexation of two Georgian provinces, the re-engagement looks a lot like pandering to Russia's energy supplies. But it also reflects the erosion of European trust in American leadership after eight years of George Bush.
America's leverage over Russia's behavior is further limited by the widespread conviction among Russians that so long as they were weak, the United States took advantage of them, and that if they want to influence world affairs, they have to assert themselves. The war with Georgia was one result; the recent announcement of $140 billion in military procurement is another.
Obama does have a few advantages in dealing with Russia: He is new, and the Russians are no less intrigued by him than the rest of the world. Neither he nor his foreign-policy team can have any illusions about Putin's Kremlin. And Russia is deep in economic crisis.
Putin's popularity and power have been based largely on Russia's windfall profits from soaring energy prices. Now that the Russian stock market is in freefall and factories are closing, his ratings are dropping and the liberal opposition has been energized.
Obama should signal to the Russians that he wants better relations. That would mean cutting back on belligerent talk and inviting the Russians to high-level consultations on areas in which the United States and Russia can quickly achieve cooperation - say, on combating piracy. Obama could also show readiness to consider renewing the Start 1 treaty on reducing strategic nuclear forces, which expires in December 2009. He could tone down demands for NATO membership for Georgia and Ukraine, especially since neither is ready for it, and he could call for a review of plans to station defensive missiles in Poland and the Czech Republic.
For every gesture, the United States would make clear it expects a tangible response, starting with help in ending Iran's nuclear program and continuing with cooperation against international terrorism and a withdrawal of Russian troops from Georgia. Obama will have time to get tougher if Russia fails to reciprocate.
Thursday, December 25, 2008
Few U.S. presidents have come to office facing quite the variety of crises that Barack Obama faces, so he may be tempted to put Russia on a back burner - especially as Vladimir Putin is not someone with whom many Americans want to build cooperative relations these days.
But Russian-American relations have disintegrated to a dangerous low, with the Kremlin increasingly acting to antagonize the United States, whether by sending warships to Venezuela or by withholding cooperation on Iran. If these issues can be addressed, Russia's potential for helping resolve other crises is too great to dismiss.
There is another unwelcome fact: America's European allies are in no mood to take their cue on Russia from Washington. A majority have resisted American efforts to quickly bring Georgia and Ukraine into NATO. The alliance, which cut formal ties with Russia after the Georgian-Russia war last August, has begun a "conditional and graduated re-engagement" with Moscow.
Given NATO's declaration that there would not be "business as usual" until Russia withdrew all its troops from Georgia and canceled its annexation of two Georgian provinces, the re-engagement looks a lot like pandering to Russia's energy supplies. But it also reflects the erosion of European trust in American leadership after eight years of George Bush.
America's leverage over Russia's behavior is further limited by the widespread conviction among Russians that so long as they were weak, the United States took advantage of them, and that if they want to influence world affairs, they have to assert themselves. The war with Georgia was one result; the recent announcement of $140 billion in military procurement is another.
Obama does have a few advantages in dealing with Russia: He is new, and the Russians are no less intrigued by him than the rest of the world. Neither he nor his foreign-policy team can have any illusions about Putin's Kremlin. And Russia is deep in economic crisis.
Putin's popularity and power have been based largely on Russia's windfall profits from soaring energy prices. Now that the Russian stock market is in freefall and factories are closing, his ratings are dropping and the liberal opposition has been energized.
Obama should signal to the Russians that he wants better relations. That would mean cutting back on belligerent talk and inviting the Russians to high-level consultations on areas in which the United States and Russia can quickly achieve cooperation - say, on combating piracy. Obama could also show readiness to consider renewing the Start 1 treaty on reducing strategic nuclear forces, which expires in December 2009. He could tone down demands for NATO membership for Georgia and Ukraine, especially since neither is ready for it, and he could call for a review of plans to station defensive missiles in Poland and the Czech Republic.
For every gesture, the United States would make clear it expects a tangible response, starting with help in ending Iran's nuclear program and continuing with cooperation against international terrorism and a withdrawal of Russian troops from Georgia. Obama will have time to get tougher if Russia fails to reciprocate.
****************
12 militants killed in sweep in southern Russia
The Associated Press
Thursday, December 25, 2008
ROSTOV-ON-DON, Russia: Police and security forces have killed 12 suspected militants during a sweep in a volatile province in southern Russia, officials said Thursday.
The two-day security sweep which ended Thursday targeted a group of militants hiding in the forested mountains of Ingushetia province, according to the regional branch of the Russian Interior Ministry.
Police and security agents found a large number of weapons and ammunition that belonged to the militants, the ministry branch said.
Ingushetia sits to the west of Chechnya, where large-scale battles between Russian troops and separatists ended years ago. Militants based in Chechnya continue, however, to stage regular attacks against authorities, and the violence often has spilled to neighboring North Caucasus provinces.
Unidentified gunmen ambushed police vehicles in Ingushetia's town of Malgobek, killing an officer and wounding two passers-by in two separate attacks Wednesday, the ministry branch said.
It said an unknown assailant also threw a hand grenade Thursday into a house belonging to a prosecutor in Ingushetia's village of Ekazhevo. No one was hurt.
The Associated Press
Thursday, December 25, 2008
ROSTOV-ON-DON, Russia: Police and security forces have killed 12 suspected militants during a sweep in a volatile province in southern Russia, officials said Thursday.
The two-day security sweep which ended Thursday targeted a group of militants hiding in the forested mountains of Ingushetia province, according to the regional branch of the Russian Interior Ministry.
Police and security agents found a large number of weapons and ammunition that belonged to the militants, the ministry branch said.
Ingushetia sits to the west of Chechnya, where large-scale battles between Russian troops and separatists ended years ago. Militants based in Chechnya continue, however, to stage regular attacks against authorities, and the violence often has spilled to neighboring North Caucasus provinces.
Unidentified gunmen ambushed police vehicles in Ingushetia's town of Malgobek, killing an officer and wounding two passers-by in two separate attacks Wednesday, the ministry branch said.
It said an unknown assailant also threw a hand grenade Thursday into a house belonging to a prosecutor in Ingushetia's village of Ekazhevo. No one was hurt.
***********************
China detains 59 Tibetans accused of inciting violence
By Andrew Jacobs
Thursday, December 25, 2008
BEIJING: The police have detained 59 people in Tibet on charges that they sought to foment unrest by spreading ethnic hatred and by downloading and selling banned songs from the Internet, Chinese state media reported Thursday.
The detainees, none of whom were identified, are accused of acting at the behest of the Dalai Lama, the exiled spiritual leader whom the government blames for encouraging separatist sentiment in heavily Tibetan areas.
Since Dec. 4, public security officials have been sweeping the markets of Lhasa looking for compact discs that contain "reactionary songs," according to the China News Service. Those who distribute such songs, the report said, "hope to spark violence and damage Lhasa's political stability." Lhasa is the capital of the Tibet Autonomous Region of China.
Although news reports did not say whether the detainees were formally arrested and charged, they are accused of threatening national security by advocating for an independent Tibet and by expressing disdain for the ethnic Han migrants who now dominate commerce in Lhasa and other Tibetan cities.
Such Han residents were the primary target of rioting last March that left at least 21 people dead and traumatized Beijing. "These rumormongers," according to the Web site ChinaTibetNews.com, "seriously undermine the image of the party and the government and harm the public's sense of security."
The region is closed to foreign journalists, but human rights advocates based outside the country say that security officials continue to clamp down on dissent and exert heavy control over local religious institutions instrumental in sparking the disturbances.
In recent months, officials have handed down prison terms in connection with the March violence to dozens of people, most of whom were convicted of arson, robbery or disrupting public order.
According to the government, 1,317 people were detained after the March riots, and 1,115 of those were subsequently released. Exile groups, however, say that hundreds are still in custody and that more than 200 Tibetans were killed during the ensuing crackdown. Such claims are impossible to verify independently.
Earlier this month, Radio Free Asia reported that several monks had been sentenced to three-year prison terms for their role in a protest that took place in the Gardze Tibetan Autonomous Prefecture of Sichuan four days after the Lhasa riots broke out.
By Andrew Jacobs
Thursday, December 25, 2008
BEIJING: The police have detained 59 people in Tibet on charges that they sought to foment unrest by spreading ethnic hatred and by downloading and selling banned songs from the Internet, Chinese state media reported Thursday.
The detainees, none of whom were identified, are accused of acting at the behest of the Dalai Lama, the exiled spiritual leader whom the government blames for encouraging separatist sentiment in heavily Tibetan areas.
Since Dec. 4, public security officials have been sweeping the markets of Lhasa looking for compact discs that contain "reactionary songs," according to the China News Service. Those who distribute such songs, the report said, "hope to spark violence and damage Lhasa's political stability." Lhasa is the capital of the Tibet Autonomous Region of China.
Although news reports did not say whether the detainees were formally arrested and charged, they are accused of threatening national security by advocating for an independent Tibet and by expressing disdain for the ethnic Han migrants who now dominate commerce in Lhasa and other Tibetan cities.
Such Han residents were the primary target of rioting last March that left at least 21 people dead and traumatized Beijing. "These rumormongers," according to the Web site ChinaTibetNews.com, "seriously undermine the image of the party and the government and harm the public's sense of security."
The region is closed to foreign journalists, but human rights advocates based outside the country say that security officials continue to clamp down on dissent and exert heavy control over local religious institutions instrumental in sparking the disturbances.
In recent months, officials have handed down prison terms in connection with the March violence to dozens of people, most of whom were convicted of arson, robbery or disrupting public order.
According to the government, 1,317 people were detained after the March riots, and 1,115 of those were subsequently released. Exile groups, however, say that hundreds are still in custody and that more than 200 Tibetans were killed during the ensuing crackdown. Such claims are impossible to verify independently.
Earlier this month, Radio Free Asia reported that several monks had been sentenced to three-year prison terms for their role in a protest that took place in the Gardze Tibetan Autonomous Prefecture of Sichuan four days after the Lhasa riots broke out.
*******************
Highest Roman Catholic Church official in China to step down
By Mark McDonald
Thursday, December 25, 2008
HONG KONG: Cardinal Joseph Zen Ze-kiun, the highest official of the Roman Catholic Church in China and a sharp critic of Beijing's record on democratic rights and religious freedoms, said this week that the Vatican had agreed to his request to step down next year as the head of the Diocese of Hong Kong, news agencies reported.
He said he would spend more time monitoring Catholic churches in mainland China, according to The Associated Press, which quoted him as saying: "I do not retire to rest. The mainland Chinese church is huge and complicated. Sometimes the pope wants me to give him some advice, so I need more time to research it."
Zen, who turns 77 next month, had twice before asked to be relieved of his diocesan duties. Pope Benedict XVI, he said Wednesday, approved his latest request to step down.
Zen, who was born in Shanghai and fled to Hong Kong after the Chinese civil war, has led the diocese since 2002. Bishop John Tong Hon, 69, who was born in Hong Kong, has been designated as his successor.
The Diocese of Hong Kong has an estimated 250,000 members. Macao, a former Portuguese colony and China's other semiautonomous territory, has the only other Roman Catholic diocese in China.
Beijing and the Vatican have not had formal relations since Mao Zedong expelled the papal nuncio in 1951, two years after the Communist takeover. The relationship continues to be strained over the Holy See's recognition of Taiwan.
Mao created the Chinese Catholic Patriotic Association in 1957 to control the church on the mainland. It now has an estimated seven million members. Several million more mainland Catholics worship in underground churches, according to religion scholars.
By Mark McDonald
Thursday, December 25, 2008
HONG KONG: Cardinal Joseph Zen Ze-kiun, the highest official of the Roman Catholic Church in China and a sharp critic of Beijing's record on democratic rights and religious freedoms, said this week that the Vatican had agreed to his request to step down next year as the head of the Diocese of Hong Kong, news agencies reported.
He said he would spend more time monitoring Catholic churches in mainland China, according to The Associated Press, which quoted him as saying: "I do not retire to rest. The mainland Chinese church is huge and complicated. Sometimes the pope wants me to give him some advice, so I need more time to research it."
Zen, who turns 77 next month, had twice before asked to be relieved of his diocesan duties. Pope Benedict XVI, he said Wednesday, approved his latest request to step down.
Zen, who was born in Shanghai and fled to Hong Kong after the Chinese civil war, has led the diocese since 2002. Bishop John Tong Hon, 69, who was born in Hong Kong, has been designated as his successor.
The Diocese of Hong Kong has an estimated 250,000 members. Macao, a former Portuguese colony and China's other semiautonomous territory, has the only other Roman Catholic diocese in China.
Beijing and the Vatican have not had formal relations since Mao Zedong expelled the papal nuncio in 1951, two years after the Communist takeover. The relationship continues to be strained over the Holy See's recognition of Taiwan.
Mao created the Chinese Catholic Patriotic Association in 1957 to control the church on the mainland. It now has an estimated seven million members. Several million more mainland Catholics worship in underground churches, according to religion scholars.
*********************
A Mexican celebration of Christ and community
By Sam Dillon
Thursday, December 25, 2008
CHINANTLA, Mexico: Hundreds of villagers strolled through cobbled streets here the other night, bearing candles and small, robed statues of Joseph and Mary, arriving eventually at the home of Eva Vargas de Domínguez, a local matriarch, who invited the throngs into her patio for an evening of prayer and piñatas, fireworks and food.
Aided by a platoon of neighborhood women, Vargas, a frail-looking widow with stooped shoulders, fed the townspeople 35 gallons of a hearty corn and pork stew and served them hundreds of cups of sweet coffee ladled from simmering vats. Her sons distributed gift bags stuffed with peanuts, fruit and candy.
The Christmas season joins people with their loved ones wherever it is celebrated, but in few places, perhaps, does it unite whole villages so thoroughly in communal rituals of music and merrymaking as in rural Mexico.
For nine consecutive nights, starting Dec. 16, villages all across Mexico have been re-enacting Joseph and Mary's biblical search for lodging. Each night's procession, called a posada, has led townspeople, marching to the strains of a brass band, to a different home, where humble heads of household like Vargas have fed and entertained the revelers.
Santa Claus did not figure in the festivities in Chinantla, and there was no gift-giving. (Most Mexicans exchange gifts on Jan. 6, El Día de Reyes, which celebrates the wise men who took gold, frankincense and myrrh to the Christ child.)
Among the participants in Chinantla's posadas has been Daniel Pantaleon, a New York native who works as a computer technician at JPMorgan Chase. Pantaleon, 29, whose parents left Chinantla for New York before he was born, has been celebrating the end-of-year holidays either in New York or here all his life. As a child, he said, he hated Christmas in Chinantla.
"My parents were, like, 'Sorry, no gifts, we're doing a piñata and, here, have an orange,' " Pantaleon recalled. "And that made me cry. But now that I've grown up, I appreciate the way traditions are different here. I don't want to hear about Santa Claus or about Toys 'R' Us. Over here, Christmas is all about family and community."
Chinantla, nestled in hills 140 miles southeast of Mexico City, is one of many villages in the state of Puebla that have seen thousands of residents move to the New York area in recent decades. Today more Mexicans living in New York are natives of Puebla than of any other Mexican state.
Robert Smith, a professor at Baruch College and author of "Mexican New York: Transnational Lives of New Immigrants," a book about the migration from Puebla, estimated that Chinantla's population had dwindled to fewer than 2,000 today from nearly 5,000 in 1970. Most of those who have left return regularly to renew friendships and refresh traditions, he said.
"They go back to these villages to take a big drink of Mexicanness," Smith said.
One Chinantla man who went to work in the United States but is back, perhaps for good, is José Miguel Mendoza Sosa, 38, who washed dishes for several years in an Italian restaurant in New York. Christmas in the United States, Mendoza said, seems to emphasize shopping and elaborate domestic preparations.
"Over there, Christmas takes days and days of work to prepare, all for about 24 hours of fun," he said. "Here we have weeks and weeks of fun."
But it takes plenty of work to feed hundreds of villagers, and hosting a night's posada is not cheap. Aurora Arisa, a teacher who coordinates the posadas here, estimated that each host family spent well over $750. The cost can quadruple if there are fireworks, she said.
Clementina Sosa and her husband, Roque, hosted a posada this week, serving 2,000 home-made tamales. Early on the morning of the event, teenage girls sat on stools around a washtub, rinsing the corn shucks used to wrap the tamales. Sosa ground boiled corn and toasted chili peppers into a reddish dough with a hand mill, seasoning it with cumin and other spices. Later a dozen whispering women sat patting the dough into spheres, inserting slices of boiled pork and wrapping them in the husks. Boys ferried the baskets of folded tamales to the patio, where Sosa set them to steam in simmering kettles.
The spicy stew, known as pozole, (pronounced poe-ZOE-lay), that Vargas served at Sunday night's posada was also produced by dozens of village women. They boiled 35 pounds of dried maize in lime water to soften the kernels on Saturday, then rose Sunday at dawn to wash the corn, now softened into hominy. They set it to boil anew in spring water, adding 26 pounds of sliced pork, several dozen onions, heads of garlic and fistfuls of cumin and bay leaves.
"It's work, but it's a kind of entertainment, too," Vargas said, perched on a stool in her smoky kitchen above the simmering stew.
After sundown, a Roman candle exploded in the sky, and hundreds of villagers began their pilgrimage. Women with candles led the way, followed by teenage girls shouldering a platform bearing the images of Mary and Joseph, and men blowing trumpets, saxophones and French horns. Dogs howled, children waved sparklers and girls sang sweetly. Imagine a cross between a raucous Mardi Gras parade and a stroll by Christmas carolers through a New England town.
When the villagers reached Vargas's house, girls sang in through the iron gate: "We're arriving from Nazareth, we're tired and need lodging."
Girls inside resisted — "This isn't a hotel, we don't open for anyone!" — but eventually relented: "Enter ye pilgrims, we didn't know you were asking/ For overnight lodging for the purest virgin Mary."
The gates swung open, and revelers streamed into the patio. Prayers followed, and more songs. Soon Vargas was serving steaming dishes of her rich pozole. There were shouts as children swung with clubs at bobbing piñatas, which, when smashed, poured forth candy, fruit and peanuts.
By Sam Dillon
Thursday, December 25, 2008
CHINANTLA, Mexico: Hundreds of villagers strolled through cobbled streets here the other night, bearing candles and small, robed statues of Joseph and Mary, arriving eventually at the home of Eva Vargas de Domínguez, a local matriarch, who invited the throngs into her patio for an evening of prayer and piñatas, fireworks and food.
Aided by a platoon of neighborhood women, Vargas, a frail-looking widow with stooped shoulders, fed the townspeople 35 gallons of a hearty corn and pork stew and served them hundreds of cups of sweet coffee ladled from simmering vats. Her sons distributed gift bags stuffed with peanuts, fruit and candy.
The Christmas season joins people with their loved ones wherever it is celebrated, but in few places, perhaps, does it unite whole villages so thoroughly in communal rituals of music and merrymaking as in rural Mexico.
For nine consecutive nights, starting Dec. 16, villages all across Mexico have been re-enacting Joseph and Mary's biblical search for lodging. Each night's procession, called a posada, has led townspeople, marching to the strains of a brass band, to a different home, where humble heads of household like Vargas have fed and entertained the revelers.
Santa Claus did not figure in the festivities in Chinantla, and there was no gift-giving. (Most Mexicans exchange gifts on Jan. 6, El Día de Reyes, which celebrates the wise men who took gold, frankincense and myrrh to the Christ child.)
Among the participants in Chinantla's posadas has been Daniel Pantaleon, a New York native who works as a computer technician at JPMorgan Chase. Pantaleon, 29, whose parents left Chinantla for New York before he was born, has been celebrating the end-of-year holidays either in New York or here all his life. As a child, he said, he hated Christmas in Chinantla.
"My parents were, like, 'Sorry, no gifts, we're doing a piñata and, here, have an orange,' " Pantaleon recalled. "And that made me cry. But now that I've grown up, I appreciate the way traditions are different here. I don't want to hear about Santa Claus or about Toys 'R' Us. Over here, Christmas is all about family and community."
Chinantla, nestled in hills 140 miles southeast of Mexico City, is one of many villages in the state of Puebla that have seen thousands of residents move to the New York area in recent decades. Today more Mexicans living in New York are natives of Puebla than of any other Mexican state.
Robert Smith, a professor at Baruch College and author of "Mexican New York: Transnational Lives of New Immigrants," a book about the migration from Puebla, estimated that Chinantla's population had dwindled to fewer than 2,000 today from nearly 5,000 in 1970. Most of those who have left return regularly to renew friendships and refresh traditions, he said.
"They go back to these villages to take a big drink of Mexicanness," Smith said.
One Chinantla man who went to work in the United States but is back, perhaps for good, is José Miguel Mendoza Sosa, 38, who washed dishes for several years in an Italian restaurant in New York. Christmas in the United States, Mendoza said, seems to emphasize shopping and elaborate domestic preparations.
"Over there, Christmas takes days and days of work to prepare, all for about 24 hours of fun," he said. "Here we have weeks and weeks of fun."
But it takes plenty of work to feed hundreds of villagers, and hosting a night's posada is not cheap. Aurora Arisa, a teacher who coordinates the posadas here, estimated that each host family spent well over $750. The cost can quadruple if there are fireworks, she said.
Clementina Sosa and her husband, Roque, hosted a posada this week, serving 2,000 home-made tamales. Early on the morning of the event, teenage girls sat on stools around a washtub, rinsing the corn shucks used to wrap the tamales. Sosa ground boiled corn and toasted chili peppers into a reddish dough with a hand mill, seasoning it with cumin and other spices. Later a dozen whispering women sat patting the dough into spheres, inserting slices of boiled pork and wrapping them in the husks. Boys ferried the baskets of folded tamales to the patio, where Sosa set them to steam in simmering kettles.
The spicy stew, known as pozole, (pronounced poe-ZOE-lay), that Vargas served at Sunday night's posada was also produced by dozens of village women. They boiled 35 pounds of dried maize in lime water to soften the kernels on Saturday, then rose Sunday at dawn to wash the corn, now softened into hominy. They set it to boil anew in spring water, adding 26 pounds of sliced pork, several dozen onions, heads of garlic and fistfuls of cumin and bay leaves.
"It's work, but it's a kind of entertainment, too," Vargas said, perched on a stool in her smoky kitchen above the simmering stew.
After sundown, a Roman candle exploded in the sky, and hundreds of villagers began their pilgrimage. Women with candles led the way, followed by teenage girls shouldering a platform bearing the images of Mary and Joseph, and men blowing trumpets, saxophones and French horns. Dogs howled, children waved sparklers and girls sang sweetly. Imagine a cross between a raucous Mardi Gras parade and a stroll by Christmas carolers through a New England town.
When the villagers reached Vargas's house, girls sang in through the iron gate: "We're arriving from Nazareth, we're tired and need lodging."
Girls inside resisted — "This isn't a hotel, we don't open for anyone!" — but eventually relented: "Enter ye pilgrims, we didn't know you were asking/ For overnight lodging for the purest virgin Mary."
The gates swung open, and revelers streamed into the patio. Prayers followed, and more songs. Soon Vargas was serving steaming dishes of her rich pozole. There were shouts as children swung with clubs at bobbing piñatas, which, when smashed, poured forth candy, fruit and peanuts.
In global crisis, flow of migrant money stalls
By Sabrina Tavernise
Thursday, December 25, 2008
TOSH-TEPPA, Tajikistan: In poverty-stricken Tajikistan, the global financial crisis is measured in bags of flour.
At least that is how Bibisoro Sayidova sees it, as she looks for ways to feed her five children, since her husband, a migrant worker in Russia, stopped receiving his wages this autumn. Now he is loading large sacks of dried fruit in Moscow on faith.
"Sometimes I cry when the kids don't have socks or coats," she said, mixing a stew of water, bread, onion and oil. "We're still hoping he'll get paid."
The financial crisis that is in full swing in the world's developed countries is only beginning to reach the poorest, and labor migrants, with feet in both worlds, are among the first to feel it.
Flows of migrant money to developing countries, known as remittances, began to slow this autumn, the first moderation after years of double-digit growth, according to the World Bank. The slowdown is expected to turn into a decline of 1 percent to 5 percent in 2009, when the full effect of the crisis hits.
Some are already feeling it. Mexico, for example, is likely to have a 4 percent decline in the flows of migrant money in 2008, according to World Bank estimates. The biggest declines next year are expected in the Middle East and North Africa, because of economic slowdowns in the Persian Gulf and Europe.
"There's definitely a serious moderation in the growth of remittances," said Dilip Ratha, a senior economist at the World Bank who tracks migrant money flows.
The decline will be less severe than for other flows, like foreign investment, Ratha said, but its effects will be amplified in countries like Tajikistan that have come to depend on rapidly growing remittances. The country will rank first in the world in 2008 for remittances as a portion of its economy - 54 percent - according to an estimate by the International Monetary Fund.
"The Tajik economy is not sustainable without migration," Ratha said. "It is not diversified. People are the most important resource they have."
The reason goes back to the Soviet collapse, when factories closed, subsidies from Moscow dried up and villages like Tosh-Teppa, 40 kilometers, or 25 miles, north of Afghanistan, were left to rot. More than 80 percent of the population lived on less than about $2 a day, and Tajiks began to export the only thing they had: themselves.
"The population has been completely abandoned by the state," said Paul Quinn-Judge, who runs the International Crisis Group's Central Asian program. "When it comes to providing for basic needs - healthy drinking water, heat in winter - they are utterly failing."
The money the migrants sent back was a lifeline. When Borun, a 42-year-old with a degree in agriculture, first went to work in Russia, a vicious civil war had just ended, and his family was eating corncobs to survive. When his two children came down with malaria, there was no money to take them to a hospital, and they died after a local medical office gave them all that it had: aspirin and mosquito netting.
"We would have died without that money," said his mother, Umiyavi, 59. Like many people interviewed for this article, Borun was afraid to give his last name for fear the Russian authorities would refuse to let him back in to work.
When oil profits were high, workers from Central Asia, the Caucasus and Eastern Europe poured into Russian cities - as many as 10 million by some estimates - making Russia the country with the second-largest immigrant population, after the United States.
Like most Tajiks working in Russia - 700,000 to one million people - Borun worked in construction. It was one of the sectors hit hardest by the credit crunch and falling oil prices this autumn. Borun's wages for a job renovating the Lenin Museum in Moscow were delayed. In November, his employer paid up, but then immediately fired him.
"They said those who came from abroad have to go," Borun said, shivering in a thin jacket in his small house in Khodja-Durbod, a village near Tosh-Teppa. About 300 workers were fired, he said, mostly Tajiks and Uzbeks.
Economists do not expect effects to be felt broadly in labor markets until well into next year, but the trend of booming remittances has clearly ended. In Tajikistan, remittances rose just 1 percent in November, compared with the same month last year, according to the IMF, down sharply from a record growth rate of about 90 percent early this year.
Still, migrants do not seem to be giving up and returning home, which is the biggest worry for Western governments that see large numbers of poor, unemployed men just north of Afghanistan as a potential security risk. Instead, people interviewed over three days last week said they would dig in further to hold on to any chance for a job, particularly if the Russian authorities made good on threats to reduce their numbers.
Borun's oldest son is an exception. He worked for a few months gathering scrap metal in Moscow when he was 16. The experience was so painful that he returned to Tajikistan and began riding his bicycle 20 kilometers every morning to a better school.
"He saw the way we lived, without respect," Borun said bitterly. "He doesn't want to be like his father."
By Sabrina Tavernise
Thursday, December 25, 2008
TOSH-TEPPA, Tajikistan: In poverty-stricken Tajikistan, the global financial crisis is measured in bags of flour.
At least that is how Bibisoro Sayidova sees it, as she looks for ways to feed her five children, since her husband, a migrant worker in Russia, stopped receiving his wages this autumn. Now he is loading large sacks of dried fruit in Moscow on faith.
"Sometimes I cry when the kids don't have socks or coats," she said, mixing a stew of water, bread, onion and oil. "We're still hoping he'll get paid."
The financial crisis that is in full swing in the world's developed countries is only beginning to reach the poorest, and labor migrants, with feet in both worlds, are among the first to feel it.
Flows of migrant money to developing countries, known as remittances, began to slow this autumn, the first moderation after years of double-digit growth, according to the World Bank. The slowdown is expected to turn into a decline of 1 percent to 5 percent in 2009, when the full effect of the crisis hits.
Some are already feeling it. Mexico, for example, is likely to have a 4 percent decline in the flows of migrant money in 2008, according to World Bank estimates. The biggest declines next year are expected in the Middle East and North Africa, because of economic slowdowns in the Persian Gulf and Europe.
"There's definitely a serious moderation in the growth of remittances," said Dilip Ratha, a senior economist at the World Bank who tracks migrant money flows.
The decline will be less severe than for other flows, like foreign investment, Ratha said, but its effects will be amplified in countries like Tajikistan that have come to depend on rapidly growing remittances. The country will rank first in the world in 2008 for remittances as a portion of its economy - 54 percent - according to an estimate by the International Monetary Fund.
"The Tajik economy is not sustainable without migration," Ratha said. "It is not diversified. People are the most important resource they have."
The reason goes back to the Soviet collapse, when factories closed, subsidies from Moscow dried up and villages like Tosh-Teppa, 40 kilometers, or 25 miles, north of Afghanistan, were left to rot. More than 80 percent of the population lived on less than about $2 a day, and Tajiks began to export the only thing they had: themselves.
"The population has been completely abandoned by the state," said Paul Quinn-Judge, who runs the International Crisis Group's Central Asian program. "When it comes to providing for basic needs - healthy drinking water, heat in winter - they are utterly failing."
The money the migrants sent back was a lifeline. When Borun, a 42-year-old with a degree in agriculture, first went to work in Russia, a vicious civil war had just ended, and his family was eating corncobs to survive. When his two children came down with malaria, there was no money to take them to a hospital, and they died after a local medical office gave them all that it had: aspirin and mosquito netting.
"We would have died without that money," said his mother, Umiyavi, 59. Like many people interviewed for this article, Borun was afraid to give his last name for fear the Russian authorities would refuse to let him back in to work.
When oil profits were high, workers from Central Asia, the Caucasus and Eastern Europe poured into Russian cities - as many as 10 million by some estimates - making Russia the country with the second-largest immigrant population, after the United States.
Like most Tajiks working in Russia - 700,000 to one million people - Borun worked in construction. It was one of the sectors hit hardest by the credit crunch and falling oil prices this autumn. Borun's wages for a job renovating the Lenin Museum in Moscow were delayed. In November, his employer paid up, but then immediately fired him.
"They said those who came from abroad have to go," Borun said, shivering in a thin jacket in his small house in Khodja-Durbod, a village near Tosh-Teppa. About 300 workers were fired, he said, mostly Tajiks and Uzbeks.
Economists do not expect effects to be felt broadly in labor markets until well into next year, but the trend of booming remittances has clearly ended. In Tajikistan, remittances rose just 1 percent in November, compared with the same month last year, according to the IMF, down sharply from a record growth rate of about 90 percent early this year.
Still, migrants do not seem to be giving up and returning home, which is the biggest worry for Western governments that see large numbers of poor, unemployed men just north of Afghanistan as a potential security risk. Instead, people interviewed over three days last week said they would dig in further to hold on to any chance for a job, particularly if the Russian authorities made good on threats to reduce their numbers.
Borun's oldest son is an exception. He worked for a few months gathering scrap metal in Moscow when he was 16. The experience was so painful that he returned to Tajikistan and began riding his bicycle 20 kilometers every morning to a better school.
"He saw the way we lived, without respect," Borun said bitterly. "He doesn't want to be like his father."
****************
A Hawaiian state of mind
By Jeff Zeleny
Thursday, December 25, 2008
KAILUA, Hawaii: Even at the end of his long journey to win the White House, one question about Barack Obama came up again and again: How did he appear to stay even-tempered and levelheaded while traveling such a grueling road?
At least part of the answer can be found here on the island of Oahu.
As Obama walks along the beaches while on vacation, returning to the place of his birth and his adolescence, he is relaxing after the most trying year of his life and recharging for the responsibilities that await. In both cases, friends say, he is doing it with an unexcitable steadiness that is a product of his Hawaiian upbringing.
The mood of Obama, to many observers here in Hawaii, embodies the Aloha Spirit, a peaceful state of mind and a friendly attitude of acceptance of a variety of ideas and cultures. More than simply a laid-back vibe, many Hawaiians believe in a divine and spiritual power that provides a sustaining life energy.
"When Obama gets on television, the national pulse goes down about 10 points," said Representative Neil Abercrombie, Democrat of Hawaii, who was close friends with Obama's parents. "He has this incredibly calming effect. There's no question in my mind it comes from Hawaii."
Abercrombie, who has known the president-elect since he was born, said Obama's tranquil, even-keeled mannerisms resembled those of his grandfather, Stanley Dunham. As a child, Obama would follow Dunham everywhere, walking through the neighborhoods of Honolulu and beyond.
"He gives off a little oasis of calm," said Abercrombie, who is spending the Christmas holidays in Hawaii. "He is peaceful water in the maelstrom, which will serve him very well in these circumstances when there happens to be a crisis."
Only a year ago, many of his admirers fretted that Obama was too passive in his battle against Senator Hillary Rodham Clinton. Later, some Democrats worried whether he had the tenacity to fight Senator John McCain and the Republican establishment.
It was only as the economic crisis deepened and a full-on recession was declared that Obama's hard-to-ruffle demeanor came into focus as a valuable attribute — not only as a candidate but, presumably, as a president-elect.
Obama is spending Christmas secluded in a compound of rental houses that he and his family are sharing with a group of friends from Chicago along the handsome beaches of Kailua, on the windward coast of Oahu. It seems a world away from the hustle of Honolulu, which is the face of Hawaii for many residents of the continental United States who have never traveled to this part of the world.
For Obama, it is his first trip back since his grandmother, Madelyn Dunham, died in the hours before the election. He and his half-sister, who lives on the island, and other family members held a private memorial service on Tuesday at First Unitarian Church in Nuuanu for the woman who helped raise him.
"In recent weeks, I have had an opportunity to mourn our grandmother's passing. However, Barack has not," Maya Soetoro-Ng, Obama's half-sister, said in a statement to reporters in Honolulu. "I also hope that Barack has an opportunity to wash off his stress in saltwater and re-energize for the long road ahead."
As he traveled across the United States mainland during the presidential race, campaigning on a promise of a different kind of politics, Obama was repeatedly asked by voters and reporters whether he had the stomach to win the contest. His standard answer? He learned how — and when — to use his sharp elbows from navigating the thorny terrain of Chicago politics.
Left unsaid was that he learned his composure from Hawaii.
"He has more Hawaii in him than Chicago; he's laid-back, cool and collected," said Neil Kent, a professor of ethnic studies at the University of Hawaii at Manoa who has lived on the island for three decades. "It's hard to express anger here. It's a very small, enclosed environment in which you have to live with other people."
Kent, who traveled to Ohio to volunteer for the Obama campaign in the final weeks of the presidential contest, said that as he watched Obama deliver speeches at rallies, there was an unmistakable air of Hawaii in his mannerisms and demeanor.
That is not to say, of course, that Obama did not occasionally grow agitated at his advisers, grimace when he was asked to sign one more autograph or openly scowl at reporters who sought to ask him questions during the campaign.
Even on the first full day of his Hawaiian vacation, as he walked onto a golf course in Waimanalo, he turned to a group of photographers and declared: "O.K. guys, come on. How many shots do you need?" The next day, aides said he was furious when paparazzi took a shot with a long zoom lens, showing the president-elect's buff pectorals.
There is, of course, little expectation of privacy for Obama and his family. But friends say he has no plans to discontinue vacations, to Hawaii and elsewhere, after he becomes president.
This summer, as Obama visited in London with David Cameron, the head of the British Conservative Party, he was overheard talking about how leaders need to take time away to think. Without downtime, Obama said, "you start making mistakes or you lose the big picture."
So Obama intends to be here until Jan. 1, recharging the Aloha Spirit.
By Jeff Zeleny
Thursday, December 25, 2008
KAILUA, Hawaii: Even at the end of his long journey to win the White House, one question about Barack Obama came up again and again: How did he appear to stay even-tempered and levelheaded while traveling such a grueling road?
At least part of the answer can be found here on the island of Oahu.
As Obama walks along the beaches while on vacation, returning to the place of his birth and his adolescence, he is relaxing after the most trying year of his life and recharging for the responsibilities that await. In both cases, friends say, he is doing it with an unexcitable steadiness that is a product of his Hawaiian upbringing.
The mood of Obama, to many observers here in Hawaii, embodies the Aloha Spirit, a peaceful state of mind and a friendly attitude of acceptance of a variety of ideas and cultures. More than simply a laid-back vibe, many Hawaiians believe in a divine and spiritual power that provides a sustaining life energy.
"When Obama gets on television, the national pulse goes down about 10 points," said Representative Neil Abercrombie, Democrat of Hawaii, who was close friends with Obama's parents. "He has this incredibly calming effect. There's no question in my mind it comes from Hawaii."
Abercrombie, who has known the president-elect since he was born, said Obama's tranquil, even-keeled mannerisms resembled those of his grandfather, Stanley Dunham. As a child, Obama would follow Dunham everywhere, walking through the neighborhoods of Honolulu and beyond.
"He gives off a little oasis of calm," said Abercrombie, who is spending the Christmas holidays in Hawaii. "He is peaceful water in the maelstrom, which will serve him very well in these circumstances when there happens to be a crisis."
Only a year ago, many of his admirers fretted that Obama was too passive in his battle against Senator Hillary Rodham Clinton. Later, some Democrats worried whether he had the tenacity to fight Senator John McCain and the Republican establishment.
It was only as the economic crisis deepened and a full-on recession was declared that Obama's hard-to-ruffle demeanor came into focus as a valuable attribute — not only as a candidate but, presumably, as a president-elect.
Obama is spending Christmas secluded in a compound of rental houses that he and his family are sharing with a group of friends from Chicago along the handsome beaches of Kailua, on the windward coast of Oahu. It seems a world away from the hustle of Honolulu, which is the face of Hawaii for many residents of the continental United States who have never traveled to this part of the world.
For Obama, it is his first trip back since his grandmother, Madelyn Dunham, died in the hours before the election. He and his half-sister, who lives on the island, and other family members held a private memorial service on Tuesday at First Unitarian Church in Nuuanu for the woman who helped raise him.
"In recent weeks, I have had an opportunity to mourn our grandmother's passing. However, Barack has not," Maya Soetoro-Ng, Obama's half-sister, said in a statement to reporters in Honolulu. "I also hope that Barack has an opportunity to wash off his stress in saltwater and re-energize for the long road ahead."
As he traveled across the United States mainland during the presidential race, campaigning on a promise of a different kind of politics, Obama was repeatedly asked by voters and reporters whether he had the stomach to win the contest. His standard answer? He learned how — and when — to use his sharp elbows from navigating the thorny terrain of Chicago politics.
Left unsaid was that he learned his composure from Hawaii.
"He has more Hawaii in him than Chicago; he's laid-back, cool and collected," said Neil Kent, a professor of ethnic studies at the University of Hawaii at Manoa who has lived on the island for three decades. "It's hard to express anger here. It's a very small, enclosed environment in which you have to live with other people."
Kent, who traveled to Ohio to volunteer for the Obama campaign in the final weeks of the presidential contest, said that as he watched Obama deliver speeches at rallies, there was an unmistakable air of Hawaii in his mannerisms and demeanor.
That is not to say, of course, that Obama did not occasionally grow agitated at his advisers, grimace when he was asked to sign one more autograph or openly scowl at reporters who sought to ask him questions during the campaign.
Even on the first full day of his Hawaiian vacation, as he walked onto a golf course in Waimanalo, he turned to a group of photographers and declared: "O.K. guys, come on. How many shots do you need?" The next day, aides said he was furious when paparazzi took a shot with a long zoom lens, showing the president-elect's buff pectorals.
There is, of course, little expectation of privacy for Obama and his family. But friends say he has no plans to discontinue vacations, to Hawaii and elsewhere, after he becomes president.
This summer, as Obama visited in London with David Cameron, the head of the British Conservative Party, he was overheard talking about how leaders need to take time away to think. Without downtime, Obama said, "you start making mistakes or you lose the big picture."
So Obama intends to be here until Jan. 1, recharging the Aloha Spirit.
**************
Obama pays tribute to U.S. troops
The Associated Press
Thursday, December 25, 2008
HONOLULU: President-elect Barack Obama offered appreciation to the U.S. military on Christmas Eve in a recorded message and then asked children of uniformed troops if they had their wish lists ready.
Obama and wife, Michelle, made their early-morning trek to Marine Corps Base Hawaii just northeast of Honolulu as they had done during the last three days. After about an hour at the base on Wednesday where he went inside a gym for a workout, he walked over to greet more than 60 people who waited for him. The president-elect shook hands while onlookers took pictures with their cellphones and digital cameras.
"You guys got your Christmas list?" Obama asked one person standing in the makeshift rope line. He asked another: "Hey man, what's going on?"
Earlier in the day, his aides released a recorded message of appreciation to the military members "serving their second, third or even fourth tour of duty."
"This holiday season, their families celebrate with a joy that is muted knowing that a loved one is absent and sometimes in danger," Obama said in the message, which is set to air Saturday morning. "In towns and cities across America, there is an empty seat at the dinner table; in distant bases and on ships at sea, our servicemen and -women can only wonder at the look on their child's face as they open a gift back home."
Obama asked the country to look to George Washington's improbable Christmas Day crossing of the Delaware River as inspiration to get through current tough times.
The president-elect said in a holiday message that Washington and his army "faced impossible odds" as they fought against the British on Dec. 26, 1776 - the day they surprised Hessian forces and won victories that gave new momentum and hope to American independence. In his own radio address set to air Saturday but released Tuesday, President George W. Bush also highlighted Washington's crossing of the Delaware.
Obama used that story to say that "hope endures and that a new birth of peace is always possible" - even as many Americans are serving overseas and others have lost their jobs while the economy sinks deeper into the doldrums.
The Labor Department said earlier this month that employers cut 533,000 jobs in November, sending the unemployment rate to 6.7 percent, the highest in 15 years.
Obama, his family and his close friends are spending 12 days on the island of Oahu, staying at a rented, $9 million beachfront estate. Aides say the Obamas would have no public events during the trip, although he has received his intelligence briefings and met with aides.
In earlier years, the Obamas spent the December holidays visiting Obama's maternal grandmother, who died Nov. 2, before Obama's historic Nov. 4 victory. On Tuesday, the Obamas had a private memorial service for Madelyn Payne Dunham, who helped raise him.
The Associated Press
Thursday, December 25, 2008
HONOLULU: President-elect Barack Obama offered appreciation to the U.S. military on Christmas Eve in a recorded message and then asked children of uniformed troops if they had their wish lists ready.
Obama and wife, Michelle, made their early-morning trek to Marine Corps Base Hawaii just northeast of Honolulu as they had done during the last three days. After about an hour at the base on Wednesday where he went inside a gym for a workout, he walked over to greet more than 60 people who waited for him. The president-elect shook hands while onlookers took pictures with their cellphones and digital cameras.
"You guys got your Christmas list?" Obama asked one person standing in the makeshift rope line. He asked another: "Hey man, what's going on?"
Earlier in the day, his aides released a recorded message of appreciation to the military members "serving their second, third or even fourth tour of duty."
"This holiday season, their families celebrate with a joy that is muted knowing that a loved one is absent and sometimes in danger," Obama said in the message, which is set to air Saturday morning. "In towns and cities across America, there is an empty seat at the dinner table; in distant bases and on ships at sea, our servicemen and -women can only wonder at the look on their child's face as they open a gift back home."
Obama asked the country to look to George Washington's improbable Christmas Day crossing of the Delaware River as inspiration to get through current tough times.
The president-elect said in a holiday message that Washington and his army "faced impossible odds" as they fought against the British on Dec. 26, 1776 - the day they surprised Hessian forces and won victories that gave new momentum and hope to American independence. In his own radio address set to air Saturday but released Tuesday, President George W. Bush also highlighted Washington's crossing of the Delaware.
Obama used that story to say that "hope endures and that a new birth of peace is always possible" - even as many Americans are serving overseas and others have lost their jobs while the economy sinks deeper into the doldrums.
The Labor Department said earlier this month that employers cut 533,000 jobs in November, sending the unemployment rate to 6.7 percent, the highest in 15 years.
Obama, his family and his close friends are spending 12 days on the island of Oahu, staying at a rented, $9 million beachfront estate. Aides say the Obamas would have no public events during the trip, although he has received his intelligence briefings and met with aides.
In earlier years, the Obamas spent the December holidays visiting Obama's maternal grandmother, who died Nov. 2, before Obama's historic Nov. 4 victory. On Tuesday, the Obamas had a private memorial service for Madelyn Payne Dunham, who helped raise him.
COLUMNIST
Thomas L. Friedman: Time to reboot America
Thursday, December 25, 2008
I had a bad day last Friday, but it was an all-too-typical day for America.
It actually started well, on Kau Sai Chau, an island off Hong Kong, where I stood on a rocky hilltop overlooking the South China Sea and talked to my wife back in Maryland, static-free, using a friend's Chinese cellphone. A few hours later, I took off from Hong Kong's ultramodern airport after riding out there from downtown on a sleek high-speed train - with wireless connectivity that was so good I was able to surf the Web the whole way on my laptop.
Landing at Kennedy Airport from Hong Kong was, as I've argued before, like going from the Jetsons to the Flintstones. The ugly, low-ceilinged arrival hall was cramped, and using a luggage cart cost $3. (Couldn't we Americans at least supply foreign visitors with a free luggage cart, like other major airports in the world?) As I looked around at this dingy room, it reminded of somewhere I had been before. Then I remembered: It was the luggage hall in the old Hong Kong Kai Tak Airport. It closed in 1998.
The next day I went to Penn Station, where the escalators down to the tracks are so narrow that they seem to have been designed before suitcases were invented. The disgusting track-side platforms apparently have not been cleaned since World War II. I took the Acela, America's sorry excuse for a bullet train, from New York to Washington. Along the way, I tried to use my cellphone to conduct an interview and my conversation was interrupted by three dropped calls within one 15-minute span.
All I could think to myself was: If we're so smart, why are other people living so much better than us? What has become of our infrastructure, which is so crucial to productivity? Back home, I was greeted by the news that General Motors was being bailed out - that's the GM that Fortune magazine just noted "lost more than $72 billion in the past four years, and yet you can count on one hand the number of executives who have been reassigned or lost their job."
We can't continue in this mode of "Dumb as we wanna be." We've indulged ourselves for too long with tax cuts that we can't afford, bailouts of auto companies that have become giant wealth-destruction machines, energy prices that do not encourage investment in 21st-century renewable power systems or efficient cars, public schools with no national standards to prevent illiterates from graduating and immigration policies that have our colleges educating the world's best scientists and engineers and then, when these foreigners graduate, instead of stapling green cards to their diplomas, we order them to go home and start companies to compete against ours.
To top it off, we've fallen into a trend of diverting and rewarding the best of our collective IQ to people doing financial engineering rather than real engineering. These rocket scientists and engineers were designing complex financial instruments to make money out of money - rather than designing cars, phones, computers, teaching tools, Internet programs and medical equipment that could improve the lives and productivity of millions.
For all these reasons, the present crisis is not just a financial meltdown crying out for a cash injection. We are in much deeper trouble. In fact, we as a country have become General Motors - as a result of our national drift. Look in the mirror: GM is us.
That's why we don't just need a bailout. We need a reboot. We need a build out. We need a buildup. We need a national makeover. That is why the next few months are among the most important in U.S. history. Because of the financial crisis, Barack Obama has the bipartisan support to spend $1 trillion in stimulus. But we must make certain that every bailout dollar, which we're borrowing from our kids' future, is spent wisely.
It has to go into training teachers, educating scientists and engineers, paying for research and building the most productivity-enhancing infrastructure - without building white elephants. Generally, I'd like to see fewer government dollars shoveled out and more creative tax incentives to stimulate the private sector to catalyze new industries and new markets. If we allow this money to be spent on pork, it will be the end of us.
America still has the right stuff to thrive. We still have the most creative, diverse, innovative culture and open society - in a world where the ability to imagine and generate new ideas with speed and to implement them through global collaboration is the most important competitive advantage. China may have great airports, but last week it went back to censoring The New York Times and other Western news sites. Censorship restricts your people's imaginations. That's really, really dumb. And that's why for all our missteps, the 21st century is still up for grabs.
John Kennedy led us on a journey to discover the Moon. Obama needs to lead us on a journey to rediscover, rebuild and reinvent our own backyard.
Thursday, December 25, 2008
I had a bad day last Friday, but it was an all-too-typical day for America.
It actually started well, on Kau Sai Chau, an island off Hong Kong, where I stood on a rocky hilltop overlooking the South China Sea and talked to my wife back in Maryland, static-free, using a friend's Chinese cellphone. A few hours later, I took off from Hong Kong's ultramodern airport after riding out there from downtown on a sleek high-speed train - with wireless connectivity that was so good I was able to surf the Web the whole way on my laptop.
Landing at Kennedy Airport from Hong Kong was, as I've argued before, like going from the Jetsons to the Flintstones. The ugly, low-ceilinged arrival hall was cramped, and using a luggage cart cost $3. (Couldn't we Americans at least supply foreign visitors with a free luggage cart, like other major airports in the world?) As I looked around at this dingy room, it reminded of somewhere I had been before. Then I remembered: It was the luggage hall in the old Hong Kong Kai Tak Airport. It closed in 1998.
The next day I went to Penn Station, where the escalators down to the tracks are so narrow that they seem to have been designed before suitcases were invented. The disgusting track-side platforms apparently have not been cleaned since World War II. I took the Acela, America's sorry excuse for a bullet train, from New York to Washington. Along the way, I tried to use my cellphone to conduct an interview and my conversation was interrupted by three dropped calls within one 15-minute span.
All I could think to myself was: If we're so smart, why are other people living so much better than us? What has become of our infrastructure, which is so crucial to productivity? Back home, I was greeted by the news that General Motors was being bailed out - that's the GM that Fortune magazine just noted "lost more than $72 billion in the past four years, and yet you can count on one hand the number of executives who have been reassigned or lost their job."
We can't continue in this mode of "Dumb as we wanna be." We've indulged ourselves for too long with tax cuts that we can't afford, bailouts of auto companies that have become giant wealth-destruction machines, energy prices that do not encourage investment in 21st-century renewable power systems or efficient cars, public schools with no national standards to prevent illiterates from graduating and immigration policies that have our colleges educating the world's best scientists and engineers and then, when these foreigners graduate, instead of stapling green cards to their diplomas, we order them to go home and start companies to compete against ours.
To top it off, we've fallen into a trend of diverting and rewarding the best of our collective IQ to people doing financial engineering rather than real engineering. These rocket scientists and engineers were designing complex financial instruments to make money out of money - rather than designing cars, phones, computers, teaching tools, Internet programs and medical equipment that could improve the lives and productivity of millions.
For all these reasons, the present crisis is not just a financial meltdown crying out for a cash injection. We are in much deeper trouble. In fact, we as a country have become General Motors - as a result of our national drift. Look in the mirror: GM is us.
That's why we don't just need a bailout. We need a reboot. We need a build out. We need a buildup. We need a national makeover. That is why the next few months are among the most important in U.S. history. Because of the financial crisis, Barack Obama has the bipartisan support to spend $1 trillion in stimulus. But we must make certain that every bailout dollar, which we're borrowing from our kids' future, is spent wisely.
It has to go into training teachers, educating scientists and engineers, paying for research and building the most productivity-enhancing infrastructure - without building white elephants. Generally, I'd like to see fewer government dollars shoveled out and more creative tax incentives to stimulate the private sector to catalyze new industries and new markets. If we allow this money to be spent on pork, it will be the end of us.
America still has the right stuff to thrive. We still have the most creative, diverse, innovative culture and open society - in a world where the ability to imagine and generate new ideas with speed and to implement them through global collaboration is the most important competitive advantage. China may have great airports, but last week it went back to censoring The New York Times and other Western news sites. Censorship restricts your people's imaginations. That's really, really dumb. And that's why for all our missteps, the 21st century is still up for grabs.
John Kennedy led us on a journey to discover the Moon. Obama needs to lead us on a journey to rediscover, rebuild and reinvent our own backyard.
****************
Retail sales dismal in United States and Britain
Toyota issues recall in China
Japanese auto production plunges
Dispute delays Morgan Stanley's China venture
GMAC gains bank status, and access to U.S. aid
Vietnam devalues currency by 3%
Market for corporate jets collapses
Facing a loss, Toyota considers change in top management
British sales aren't going to be good, industry group says
Zavvi joins list of retail casualties
****************
Market for corporate jets collapses
By Geraldine Fabrikant
Thursday, December 25, 2008
NEW YORK: Maybe General Motors should throw in a fleet of Cadillacs.
The automaker is dumping its corporate jets into what some participants say is the worst market they have ever seen.
Just seven months ago, hundreds of mega-millionaires, including the sportswear designer Ralph Lauren and the film executive David Geffen, were elbowing one another in the lines to buy a $60 million Gulfstream G650, which was not expected to hit runways until 2012.
It did not matter that $500,000 had to be wired to Gulfstream's account at a Midwest branch of JPMorgan Chase at exactly 12:01 a.m. April 15 or that bidders who secured a place in the waiting line could not sell their rights if they changed their minds, according to one bidder.
But that was another era, before the credit crisis and before billions of dollars in corporate and individual wealth had been lost.
"The jet market stinks," said Richard Santulli, the chief executive of Netjets, the private jet company owned by Berkshire Hathaway, the holding company of Warren Buffett.
To control costs, companies including Citigroup and Time Warner are selling their jets. Alcatel-Lucent has allowed leases on two jets to expire and has put its third jet up for sale.
And the public relations fiasco that engulfed the chief executives of Detroit's automakers when they flew to Washington on company planes to seek a government bailout has underscored the degree to which such travel can seem inappropriate in this recession.
GM, which leases seven planes, put most of them on the market before the government said it must do so as a condition of obtaining assistance. The automaker has also closed its air transportation services unit, which had 49 employees.
"We could not justify an in-house aircraft operation," said a GM spokesman, Tom Wilkinson. "We are negotiating to transfer the remaining planes to another operator. Ford, too, has shut down its flight department."
Jet brokers, who normally have a worldwide clientele, say the market has constricted abroad in recent months as well.
"Our inventory is up dramatically, and demand is way down," said Josh Messinger, of J. Messinger Corporate Jet Sales, a jet broker.
Santulli said Russians had been big buyers of jets. "But the fall of the Russian stock market has had a huge impact," he said. "The Indian stock market stinks, and the dollar has gotten stronger, which hurts airplane sales."
Because jets are priced in dollars, they become more expensive for foreigners as the dollar gets stronger.
Among jets, the large-cabin, long-range segment of the market is suffering the most, said Bill Quinn, director of aircraft sales and acquisitions at Cerretani Aviation, based in Boulder, Colorado. That includes planes from Gulfstream, Bombardier and Falcon.
Carrying costs are high. A Gulfstream G550 costs about $47 million.
Though expenses can vary by state, one mogul's business manager estimated that annual costs ran about $1.3 million, including $500,000 for property taxes and $400,000 for pilots and stewards. Typical operating costs are more than $2,000 an hour in the air, he said.
The corporate side of the business is particularly vulnerable because of public scrutiny.
"They are not going to do employee layoffs and keep the jets," said Mary Hevener, a tax adviser who specializes in executive compensation at Morgan Lewis & Bockius.
Besides, the U.S. Congress stripped away the deductibility of personal travel for executives in 2004 by allowing companies to deduct from taxes only the approximate amount of a first-class ticket, far less than private jet travel costs.
Corporate chiefs concerned about public scrutiny are more inclined to look for alternatives than to return to the airlines. Some are examining whether they should take delivery of planes already ordered.
One company had been looking to upgrade its two planes. "Now they are weighing whether or not to buy new planes or keep what they have," Quinn said.
Some are downsizing. "Some of these guys just move the deck chairs around," he said. "They get rid of the big planes and go to fractional ownership, or they go to charter, or they come back into the marketplace with a leased plane."
But every part of the private jet industry has been affected.
Netjets lets people buy fractional ownerships in planes, and it sells Marquis jet cards that give customers access to the fleet in 25-hour increments. Those businesses, too, are seeing a slowdown.
"People have lost a lot of money, and are careful about how they spend it," Santulli said.
"I have never seen it like this," said Mike Silvestri, the chief executive of Flight Options, which sells shares in jets, as well as plans that cover a fixed number of hours a year of private jet use. "Customers are just not flying as much."
Some customers are stretching out the hours bought for a single year over a longer period. Flight Options has laid off 134 people, including 104 pilots, and hopes it will be able to bring them back.
Santulli said the jet market usually picked up three months after the stock market hit bottom.
By Geraldine Fabrikant
Thursday, December 25, 2008
NEW YORK: Maybe General Motors should throw in a fleet of Cadillacs.
The automaker is dumping its corporate jets into what some participants say is the worst market they have ever seen.
Just seven months ago, hundreds of mega-millionaires, including the sportswear designer Ralph Lauren and the film executive David Geffen, were elbowing one another in the lines to buy a $60 million Gulfstream G650, which was not expected to hit runways until 2012.
It did not matter that $500,000 had to be wired to Gulfstream's account at a Midwest branch of JPMorgan Chase at exactly 12:01 a.m. April 15 or that bidders who secured a place in the waiting line could not sell their rights if they changed their minds, according to one bidder.
But that was another era, before the credit crisis and before billions of dollars in corporate and individual wealth had been lost.
"The jet market stinks," said Richard Santulli, the chief executive of Netjets, the private jet company owned by Berkshire Hathaway, the holding company of Warren Buffett.
To control costs, companies including Citigroup and Time Warner are selling their jets. Alcatel-Lucent has allowed leases on two jets to expire and has put its third jet up for sale.
And the public relations fiasco that engulfed the chief executives of Detroit's automakers when they flew to Washington on company planes to seek a government bailout has underscored the degree to which such travel can seem inappropriate in this recession.
GM, which leases seven planes, put most of them on the market before the government said it must do so as a condition of obtaining assistance. The automaker has also closed its air transportation services unit, which had 49 employees.
"We could not justify an in-house aircraft operation," said a GM spokesman, Tom Wilkinson. "We are negotiating to transfer the remaining planes to another operator. Ford, too, has shut down its flight department."
Jet brokers, who normally have a worldwide clientele, say the market has constricted abroad in recent months as well.
"Our inventory is up dramatically, and demand is way down," said Josh Messinger, of J. Messinger Corporate Jet Sales, a jet broker.
Santulli said Russians had been big buyers of jets. "But the fall of the Russian stock market has had a huge impact," he said. "The Indian stock market stinks, and the dollar has gotten stronger, which hurts airplane sales."
Because jets are priced in dollars, they become more expensive for foreigners as the dollar gets stronger.
Among jets, the large-cabin, long-range segment of the market is suffering the most, said Bill Quinn, director of aircraft sales and acquisitions at Cerretani Aviation, based in Boulder, Colorado. That includes planes from Gulfstream, Bombardier and Falcon.
Carrying costs are high. A Gulfstream G550 costs about $47 million.
Though expenses can vary by state, one mogul's business manager estimated that annual costs ran about $1.3 million, including $500,000 for property taxes and $400,000 for pilots and stewards. Typical operating costs are more than $2,000 an hour in the air, he said.
The corporate side of the business is particularly vulnerable because of public scrutiny.
"They are not going to do employee layoffs and keep the jets," said Mary Hevener, a tax adviser who specializes in executive compensation at Morgan Lewis & Bockius.
Besides, the U.S. Congress stripped away the deductibility of personal travel for executives in 2004 by allowing companies to deduct from taxes only the approximate amount of a first-class ticket, far less than private jet travel costs.
Corporate chiefs concerned about public scrutiny are more inclined to look for alternatives than to return to the airlines. Some are examining whether they should take delivery of planes already ordered.
One company had been looking to upgrade its two planes. "Now they are weighing whether or not to buy new planes or keep what they have," Quinn said.
Some are downsizing. "Some of these guys just move the deck chairs around," he said. "They get rid of the big planes and go to fractional ownership, or they go to charter, or they come back into the marketplace with a leased plane."
But every part of the private jet industry has been affected.
Netjets lets people buy fractional ownerships in planes, and it sells Marquis jet cards that give customers access to the fleet in 25-hour increments. Those businesses, too, are seeing a slowdown.
"People have lost a lot of money, and are careful about how they spend it," Santulli said.
"I have never seen it like this," said Mike Silvestri, the chief executive of Flight Options, which sells shares in jets, as well as plans that cover a fixed number of hours a year of private jet use. "Customers are just not flying as much."
Some customers are stretching out the hours bought for a single year over a longer period. Flight Options has laid off 134 people, including 104 pilots, and hopes it will be able to bring them back.
Santulli said the jet market usually picked up three months after the stock market hit bottom.
*****************
New U.S. jobless claims hit 26-year high
Reuters
Thursday, December 25, 2008
WASHINGTON: The number of workers filing new claims for jobless benefits jumped by 30,000 to a 26-year peak last week, government data on Wednesday showed, as the country's year-long recession continued to chill the labor market.
Initial claims for state unemployment insurance benefits rose to a seasonally adjusted 586,000 in the week ended Dec 20 from a revised 556,000 the prior week, the Labor Department said. It was the highest since the week ending Nov. 27, 1982.
Analysts polled by Reuters had forecast 560,000 new claims versus a previously reported count of 554,000 the week before.
A Labor Department official said there were no special factors influencing the data and no noticeable impact from severe winter weather in northern parts of the country.
The official also said a number of states had reported increasing layoffs in the auto industry, which has been hit hard by consumers cutting back on their spending in the face of rising unemployment and scarcer credit.
The four-week average of new jobless claims, a better gauge of underlying labor trends because it irons out week-to-week volatility, increased to 558,000 from 544,250 the week before. This was the highest reading since December 1982.
This measure has mounted steadily as the economy suffered from a credit crisis sparked by the housing slump, forcing lay-offs as firms slash costs to offset weaker income.
The number of people remaining on the benefits roll after drawing an initial week of aid declined by 17,000 to a less-then-forecast 4.370 million in the week ended Dec. 13, the most recent week for which data are available. Analysts had estimated so-called continued claims would be 4.400 million
Reuters
Thursday, December 25, 2008
WASHINGTON: The number of workers filing new claims for jobless benefits jumped by 30,000 to a 26-year peak last week, government data on Wednesday showed, as the country's year-long recession continued to chill the labor market.
Initial claims for state unemployment insurance benefits rose to a seasonally adjusted 586,000 in the week ended Dec 20 from a revised 556,000 the prior week, the Labor Department said. It was the highest since the week ending Nov. 27, 1982.
Analysts polled by Reuters had forecast 560,000 new claims versus a previously reported count of 554,000 the week before.
A Labor Department official said there were no special factors influencing the data and no noticeable impact from severe winter weather in northern parts of the country.
The official also said a number of states had reported increasing layoffs in the auto industry, which has been hit hard by consumers cutting back on their spending in the face of rising unemployment and scarcer credit.
The four-week average of new jobless claims, a better gauge of underlying labor trends because it irons out week-to-week volatility, increased to 558,000 from 544,250 the week before. This was the highest reading since December 1982.
This measure has mounted steadily as the economy suffered from a credit crisis sparked by the housing slump, forcing lay-offs as firms slash costs to offset weaker income.
The number of people remaining on the benefits roll after drawing an initial week of aid declined by 17,000 to a less-then-forecast 4.370 million in the week ended Dec. 13, the most recent week for which data are available. Analysts had estimated so-called continued claims would be 4.400 million
******************
7 of the year's worst financial ideas
breakingviews.com
Thursday, December 25, 2008
The financial crisis of 2008 was full of surprises. Among the most stupefying were the tales of the complicated instruments that people thought were a good idea during the bull market. More such examples will surely emerge as gallons of toxic waste slosh out of banks and hedge funds in 2009. While waiting for the full inventory, here are seven we hope we won't see again.
1. PIK toggles
These debt features were popular in 2007 - but it wasn't until 2008 that toggles started to get flicked. "PIK" stands for payment-in-kind, and means issuers can substitute more bonds for actual cash interest payments whenever they want. Sometimes the "rate" goes up when the toggle is switched. That is cold comfort when it becomes apparent that the bonds are not worth anything like face value because the company is going to the wall - the high probability of which, it should be noted, was why the issuer put in a PIK toggle in the first place.
2. Minibonds
Retail investors in Asia snapped up minibonds early in 2008, attracted by the fact that these instruments, supposedly backed by a lineup of "safe" banks, had a higher yield than normal and were available in small amounts. The catch? They were not bonds at all, but derivative products, some of which had Lehman Brothers as a counterparty. Investors were effectively paying for Lehman to insure its own portfolio. When Lehman cracked, so did thousands of nest eggs.
3. Contingent value rights
CVRs help fudge the fact that a buyer and a seller cannot agree on price. The buyer simply gives the seller a CVR, or an option on the spoils if the buyer's investment does well. Kohlberg Kravis Roberts used a twist on the theme when it de-listed its European arm, giving shareholders new U.S.-listed stock and a CVR. There are two things wrong with these devices: Either they cripple issuers when payday arrives, or they prove virtually worthless, thanks to reams of small print. Too clever by half.
4. Accumulators
The accumulator - known waggishly as the "I-kill-you-later" - is a device used to hedge cross-currency transactions. It limits the amount of profit the holder can make, but not the losses. That makes it cheap - and dumb. Citic Pacific lost $2 billion on accumulators when the Australian dollar fell hard. The normally staid conglomerate had not just hedged but had made a giant speculative bet. Citic Pacific was effectively taken over by its Chinese parent Citic - the ultimate slap on the behind.
5. Cash-settled options
These options, which pay out in cash rather than actual shares, are not new, or necessarily bad. But in Germany they became a battering ram for corporate raiders. Schaeffler, a ball-bearing manufacturer, used cash-settled options to seize control of Continental, an auto parts maker. These options do not need to be disclosed in Germany - even though the holder can, in practice, easily get the underlying shares. Germany has not outlawed this practice. But the fact that Schaeffler is now buried under a mountain of debt should discourage imitators.
6. Debt accordions
These provisions in some loans let the issuer expand them later - like an accordion - to let in new investors. During the crunch, subordinated investors in a couple of leveraged companies got a grim ultimatum: Slide into the accordion on the company's senior debt and take a big haircut, or end up with peanuts if the company goes bust. Senior lenders, meanwhile, faced the prospect of fighting for scraps with the newcomers if things really went wrong. Accordion facilities are thus as painful to the pocket as their musical counterparts are to the ear.
7. Ponzi schemes
Take money from Peter. Wait a bit, then take money from Paul. Use Paul's money to pay back Peter, proclaim your stupendous rate of return, rinse and repeat. The Ponzi scheme, named after the 1920s scam artist Charles Ponzi, reached new heights in 2008 with the discovery of $50 billion in alleged fraud by the financier Bernard Madoff, who somehow duped the world's biggest and most conservative investment banks. This kind of fraud is unlikely to die out in 2009. But the epithet itself might. Investors will now be looking out for the "Madoff scheme" instead. - John Foley
breakingviews.com
Thursday, December 25, 2008
The financial crisis of 2008 was full of surprises. Among the most stupefying were the tales of the complicated instruments that people thought were a good idea during the bull market. More such examples will surely emerge as gallons of toxic waste slosh out of banks and hedge funds in 2009. While waiting for the full inventory, here are seven we hope we won't see again.
1. PIK toggles
These debt features were popular in 2007 - but it wasn't until 2008 that toggles started to get flicked. "PIK" stands for payment-in-kind, and means issuers can substitute more bonds for actual cash interest payments whenever they want. Sometimes the "rate" goes up when the toggle is switched. That is cold comfort when it becomes apparent that the bonds are not worth anything like face value because the company is going to the wall - the high probability of which, it should be noted, was why the issuer put in a PIK toggle in the first place.
2. Minibonds
Retail investors in Asia snapped up minibonds early in 2008, attracted by the fact that these instruments, supposedly backed by a lineup of "safe" banks, had a higher yield than normal and were available in small amounts. The catch? They were not bonds at all, but derivative products, some of which had Lehman Brothers as a counterparty. Investors were effectively paying for Lehman to insure its own portfolio. When Lehman cracked, so did thousands of nest eggs.
3. Contingent value rights
CVRs help fudge the fact that a buyer and a seller cannot agree on price. The buyer simply gives the seller a CVR, or an option on the spoils if the buyer's investment does well. Kohlberg Kravis Roberts used a twist on the theme when it de-listed its European arm, giving shareholders new U.S.-listed stock and a CVR. There are two things wrong with these devices: Either they cripple issuers when payday arrives, or they prove virtually worthless, thanks to reams of small print. Too clever by half.
4. Accumulators
The accumulator - known waggishly as the "I-kill-you-later" - is a device used to hedge cross-currency transactions. It limits the amount of profit the holder can make, but not the losses. That makes it cheap - and dumb. Citic Pacific lost $2 billion on accumulators when the Australian dollar fell hard. The normally staid conglomerate had not just hedged but had made a giant speculative bet. Citic Pacific was effectively taken over by its Chinese parent Citic - the ultimate slap on the behind.
5. Cash-settled options
These options, which pay out in cash rather than actual shares, are not new, or necessarily bad. But in Germany they became a battering ram for corporate raiders. Schaeffler, a ball-bearing manufacturer, used cash-settled options to seize control of Continental, an auto parts maker. These options do not need to be disclosed in Germany - even though the holder can, in practice, easily get the underlying shares. Germany has not outlawed this practice. But the fact that Schaeffler is now buried under a mountain of debt should discourage imitators.
6. Debt accordions
These provisions in some loans let the issuer expand them later - like an accordion - to let in new investors. During the crunch, subordinated investors in a couple of leveraged companies got a grim ultimatum: Slide into the accordion on the company's senior debt and take a big haircut, or end up with peanuts if the company goes bust. Senior lenders, meanwhile, faced the prospect of fighting for scraps with the newcomers if things really went wrong. Accordion facilities are thus as painful to the pocket as their musical counterparts are to the ear.
7. Ponzi schemes
Take money from Peter. Wait a bit, then take money from Paul. Use Paul's money to pay back Peter, proclaim your stupendous rate of return, rinse and repeat. The Ponzi scheme, named after the 1920s scam artist Charles Ponzi, reached new heights in 2008 with the discovery of $50 billion in alleged fraud by the financier Bernard Madoff, who somehow duped the world's biggest and most conservative investment banks. This kind of fraud is unlikely to die out in 2009. But the epithet itself might. Investors will now be looking out for the "Madoff scheme" instead. - John Foley
**************************
Bring out the (cheaper) bubbly
By Eric Asimov
Thursday, December 25, 2008
NEW YORK: The corks will pop as usual this holiday season, and the bubbly will froth over into the glasses. Toasts will be offered, and the good times will still roll, but perhaps in a more subdued fashion.
Fewer of those bottles of sparkling wine are likely to be Champagne this December, at least in the United States. All over the country, people are spending less for wine, and aiming for a lower-key expression of seasonal joy. That means less Champagne.
Partly, this is an economic decision. "People are clearly trading down," said Jon Fredrikson of Gomberg, Fredrikson & Associates, a wine industry analyst in California. "People are still drinking wine, but it's clearly at lower price points."
But emotions and appearances play an important role in the decision as well. Aside from a general shortage of celebratory occasions like mergers, closings, bonuses and office parties, many restaurateurs say that customers are avoiding even the appearance of celebration.
"People just don't want to look extravagant today," said Paul Grieco, an owner of the restaurants Hearth, Insieme and Terroir in Manhattan. "They still want to drink, so they cut out the Champagne and go directly to whatever they're drinking with dinner."
After several strong years, Champagne sales in the United States began to slip in 2007 as the weak dollar caused prices to rise. About 21 million bottles were shipped to the United States in 2007, down 2 percent from 2006, and the drop became precipitous in 2008. Through August, sales were down 17 percent over the corresponding period last year, according to Sam Heitner, director of the Office of Champagne U.S.A., a trade organization, and that doesn't include the last three months of the year, when much of the Champagne is sold.
"We're in uncharted territory," he said.
Recognizing the concern over spending, the New York Times wine panel recently tasted 25 sparkling wines priced $10 to $20, the sweet spot these days for good wine values.
We restricted ourselves to dry sparkling wines, while ruling out sparkling rosés and reds. For the tasting, Florence Fabricant and I were joined by the husband-and-wife team of Scott Mayger, the general manager of Telepan on the Upper West Side, and Beth von Benz, a wine consultant.
The good news is that outside of Champagne, just about any region in the world that makes wine makes sparkling wine, too. Among our 25 bottles were wines from France, Spain, Italy, Germany and Australia, as well as California, Washington State, New Mexico and Michigan.
Believe me, that's just the beginning. I've enjoyed good bottles from Austria, Massachusetts and Georgia (the country, not the state).
I did set one more parameter: no prosecco. I like prosecco, but I enjoy it best in spring and summer, when its sprightliness seems to match the season. I didn't rule out sekt, the sparkling wine of Germany, but maybe I should have. I've rarely met a sekt I've liked, and neither one in our tasting made our top 10. And I confess, I'm not much of a fan either of cava, the sparkling wine of Spain. One of the three in our tasting, the Reserva Heredad from Segura Viudas, made our top 10 at No.9, though at $20 it was maybe not such a good value.
Perhaps in a different context, say, a café in Frankfurt or tapas bar in Barcelona, these wines might have been more appealing. But when they were mixed in with a bunch of bottles made in the fashion of Champagne, with some proportion of chardonnay and pinot noir, the main grapes of Champagne, we preferred those bottles, wherever they came from.
Our top bottle, the 2004 brut from Domaine Carneros, was, of course, from California. We found it elegant and delicious, and it just squeaked by two other far-flung bottles.
Our No.2, the Contadi Castaldi, was from the Italian region of Franciacorta, which produces some excellent Champagne facsimiles. This one was particularly dry and light-bodied, with aromas of herbs, spices and flowers.
And our No.3 was a sparkling wine from Burgundy, the toasty, refreshing Parigot & Richard blanc de blancs, made mostly from chardonnay.
While our price range was $10 to $20, most of the wines in the tasting were $15 to $20. One of the few exceptions, and the only one to make the list, was the Crémant de Limoux blanc de blancs from Domaine J. Laurens, which at $13 was our best value.
Habitués of the bargain aisle may be familiar with blanquette de Limoux, a sparkling wine from the same region in southern France. This is generally even cheaper than the Laurens, and usually made from the mauzac grape. The crémant is made of chardonnay and chenin blanc, which gives an added smoothness and elegance.
Other Champagne-style wines that we liked included three more from California, the Roederer Estate, long a personal favorite of mine, as well as the Piper Sonoma and the Gloria Ferrer.
Two other French wines rounded out our top 10. La Cravatine from Fabrice Gasnier was an oddity, a sparkling Chinon made from the cabernet franc grape. But it was light and refreshing, as was our No.10, the herbal-scented crémant d'Alsace from Lucien Albrecht, made from pinot blanc and pinot auxerrois.
Let's be honest, none of these bottles will match a very good Champagne. But they cost half what you would pay these days for the least expensive Champagne, and they were enjoyable.
Even so, they may all still cost more than many people are willing to spend. Fredrikson said the greatest growth right now is in bottles $6 and under, which includes mass-produced sparkling wines that in my opinion are not worth the money.
There may be one bright spot for Champagne. Roberto Rogness, general manager of Wine Expo in Santa Monica, California, which offers an exceptional selection of sparkling wines, reports that even though cavas, crémants and other Champagne alternatives are selling "by the boatload," Champagne sales seem to be holding their own. And Rogness is looking hopefully to next year.
"We're starting to get feelers for inauguration parties," he said.
By Eric Asimov
Thursday, December 25, 2008
NEW YORK: The corks will pop as usual this holiday season, and the bubbly will froth over into the glasses. Toasts will be offered, and the good times will still roll, but perhaps in a more subdued fashion.
Fewer of those bottles of sparkling wine are likely to be Champagne this December, at least in the United States. All over the country, people are spending less for wine, and aiming for a lower-key expression of seasonal joy. That means less Champagne.
Partly, this is an economic decision. "People are clearly trading down," said Jon Fredrikson of Gomberg, Fredrikson & Associates, a wine industry analyst in California. "People are still drinking wine, but it's clearly at lower price points."
But emotions and appearances play an important role in the decision as well. Aside from a general shortage of celebratory occasions like mergers, closings, bonuses and office parties, many restaurateurs say that customers are avoiding even the appearance of celebration.
"People just don't want to look extravagant today," said Paul Grieco, an owner of the restaurants Hearth, Insieme and Terroir in Manhattan. "They still want to drink, so they cut out the Champagne and go directly to whatever they're drinking with dinner."
After several strong years, Champagne sales in the United States began to slip in 2007 as the weak dollar caused prices to rise. About 21 million bottles were shipped to the United States in 2007, down 2 percent from 2006, and the drop became precipitous in 2008. Through August, sales were down 17 percent over the corresponding period last year, according to Sam Heitner, director of the Office of Champagne U.S.A., a trade organization, and that doesn't include the last three months of the year, when much of the Champagne is sold.
"We're in uncharted territory," he said.
Recognizing the concern over spending, the New York Times wine panel recently tasted 25 sparkling wines priced $10 to $20, the sweet spot these days for good wine values.
We restricted ourselves to dry sparkling wines, while ruling out sparkling rosés and reds. For the tasting, Florence Fabricant and I were joined by the husband-and-wife team of Scott Mayger, the general manager of Telepan on the Upper West Side, and Beth von Benz, a wine consultant.
The good news is that outside of Champagne, just about any region in the world that makes wine makes sparkling wine, too. Among our 25 bottles were wines from France, Spain, Italy, Germany and Australia, as well as California, Washington State, New Mexico and Michigan.
Believe me, that's just the beginning. I've enjoyed good bottles from Austria, Massachusetts and Georgia (the country, not the state).
I did set one more parameter: no prosecco. I like prosecco, but I enjoy it best in spring and summer, when its sprightliness seems to match the season. I didn't rule out sekt, the sparkling wine of Germany, but maybe I should have. I've rarely met a sekt I've liked, and neither one in our tasting made our top 10. And I confess, I'm not much of a fan either of cava, the sparkling wine of Spain. One of the three in our tasting, the Reserva Heredad from Segura Viudas, made our top 10 at No.9, though at $20 it was maybe not such a good value.
Perhaps in a different context, say, a café in Frankfurt or tapas bar in Barcelona, these wines might have been more appealing. But when they were mixed in with a bunch of bottles made in the fashion of Champagne, with some proportion of chardonnay and pinot noir, the main grapes of Champagne, we preferred those bottles, wherever they came from.
Our top bottle, the 2004 brut from Domaine Carneros, was, of course, from California. We found it elegant and delicious, and it just squeaked by two other far-flung bottles.
Our No.2, the Contadi Castaldi, was from the Italian region of Franciacorta, which produces some excellent Champagne facsimiles. This one was particularly dry and light-bodied, with aromas of herbs, spices and flowers.
And our No.3 was a sparkling wine from Burgundy, the toasty, refreshing Parigot & Richard blanc de blancs, made mostly from chardonnay.
While our price range was $10 to $20, most of the wines in the tasting were $15 to $20. One of the few exceptions, and the only one to make the list, was the Crémant de Limoux blanc de blancs from Domaine J. Laurens, which at $13 was our best value.
Habitués of the bargain aisle may be familiar with blanquette de Limoux, a sparkling wine from the same region in southern France. This is generally even cheaper than the Laurens, and usually made from the mauzac grape. The crémant is made of chardonnay and chenin blanc, which gives an added smoothness and elegance.
Other Champagne-style wines that we liked included three more from California, the Roederer Estate, long a personal favorite of mine, as well as the Piper Sonoma and the Gloria Ferrer.
Two other French wines rounded out our top 10. La Cravatine from Fabrice Gasnier was an oddity, a sparkling Chinon made from the cabernet franc grape. But it was light and refreshing, as was our No.10, the herbal-scented crémant d'Alsace from Lucien Albrecht, made from pinot blanc and pinot auxerrois.
Let's be honest, none of these bottles will match a very good Champagne. But they cost half what you would pay these days for the least expensive Champagne, and they were enjoyable.
Even so, they may all still cost more than many people are willing to spend. Fredrikson said the greatest growth right now is in bottles $6 and under, which includes mass-produced sparkling wines that in my opinion are not worth the money.
There may be one bright spot for Champagne. Roberto Rogness, general manager of Wine Expo in Santa Monica, California, which offers an exceptional selection of sparkling wines, reports that even though cavas, crémants and other Champagne alternatives are selling "by the boatload," Champagne sales seem to be holding their own. And Rogness is looking hopefully to next year.
"We're starting to get feelers for inauguration parties," he said.
***************
Architecture deluxe and delusional: An era ends
By Nicolai Ouroussoff
Thursday, December 25, 2008
NEW YORK: Who knew a year ago that we were nearing the end of one of the most delirious eras in modern architectural history? What's more, who would have predicted that this turnaround, brought about by the biggest economic crisis in a half-century, would be met in some corners with a guilty sense of relief?
Before the financial cataclysm, the profession seemed to be in the midst of a major renaissance. Architects like Rem Koolhaas, Zaha Hadid, Frank Gehry, and Jacques Herzog and Pierre de Meuron, once deemed too radical for the mainstream, were celebrated as major cultural figures. And not just by high-minded cultural institutions; they were courted by developers who once scorned those talents as pretentious airheads.
Firms like Forest City Ratner and the Related Companies, which once worked exclusively with corporations that were more adept at handling big budgets than at architectural innovation, seized on these innovators as part of a shrewd business strategy. The architect's prestige would not only win over discerning consumers but also persuade planning boards to accede to large-scale urban projects like, say, Gehry's Atlantic Yards in Brooklyn.
But somewhere along the way that fantasy took a wrong turn. As commissions multiplied for luxury residential high-rises, high-end boutiques and corporate offices in cities like London, Tokyo and Dubai, more socially conscious projects rarely materialized. Public housing, a staple of 20th-century Modernism, was nowhere on the agenda. Nor were schools, hospitals or public infrastructure. Serious architecture was beginning to look like a service for the rich.
Nowhere was that poisonous cocktail of vanity and self-delusion more visible than in Manhattan. Although some important cultural projects were commissioned, this era will probably be remembered as much for its vulgarity as its ambition.
Every major architect in the world, it seemed, was designing an exclusive residential building here. With its elaborate faux-graffiti barrier, Herzog & de Meuron's 40 Bond Street was among the most indulgent, but it had plenty of rivals, including projects by Daniel Libeskind, UNStudio, Koolhaas and Norman Foster.
Together these projects threatened to transform the city's skyline into a tapestry of individual greed.
Now that high-end bubble has popped, and it is unlikely to return anytime soon. Jean Nouvel's 75-story residential tower adjoining the Museum of Modern Art has been delayed indefinitely. And developers now seem loath to undertake similar projects. Even if the economy turns around, the public's tolerance for outsize architectural statements that serve the rich and self-absorbed has already been pretty much exhausted.
This is not all good news. A lot of wonderful architecture is being thrown out with the bad. Although most of Nouvel's MoMA tower would have been devoted to luxury apartments, for instance, it would have allowed the museum next door to expand its gallery space significantly. It would also have been one of the most spectacular additions to the Manhattan skyline since the Chrysler Building.
And it would be a shame if the recession derailed promising cultural projects like Renzo Piano's new Whitney Museum of American Art in the meatpacking district or Foster's interior renovation of the Beaux-Arts New York Public Library on Fifth Avenue.
Architecture firms, meanwhile, are suffering like everyone else. With so many projects postponed and so few new ones coming in, many are already laying off employees. Aspiring architects who are just emerging from graduate programs are likely to move on to more secure professions, which could spell a smaller talent pool in the future.
Still, if the recession doesn't kill the profession, it may have some long-term positive effects for our architecture. President-elect Barack Obama has promised to invest heavily in infrastructure, including schools, parks, bridges and public housing. A major redirection of our creative resources may thus be at hand. If a lot of first-rate architectural talent promises to be at loose ends, why not enlist it in designing the projects that matter most? That's my dream anyway.
By Nicolai Ouroussoff
Thursday, December 25, 2008
NEW YORK: Who knew a year ago that we were nearing the end of one of the most delirious eras in modern architectural history? What's more, who would have predicted that this turnaround, brought about by the biggest economic crisis in a half-century, would be met in some corners with a guilty sense of relief?
Before the financial cataclysm, the profession seemed to be in the midst of a major renaissance. Architects like Rem Koolhaas, Zaha Hadid, Frank Gehry, and Jacques Herzog and Pierre de Meuron, once deemed too radical for the mainstream, were celebrated as major cultural figures. And not just by high-minded cultural institutions; they were courted by developers who once scorned those talents as pretentious airheads.
Firms like Forest City Ratner and the Related Companies, which once worked exclusively with corporations that were more adept at handling big budgets than at architectural innovation, seized on these innovators as part of a shrewd business strategy. The architect's prestige would not only win over discerning consumers but also persuade planning boards to accede to large-scale urban projects like, say, Gehry's Atlantic Yards in Brooklyn.
But somewhere along the way that fantasy took a wrong turn. As commissions multiplied for luxury residential high-rises, high-end boutiques and corporate offices in cities like London, Tokyo and Dubai, more socially conscious projects rarely materialized. Public housing, a staple of 20th-century Modernism, was nowhere on the agenda. Nor were schools, hospitals or public infrastructure. Serious architecture was beginning to look like a service for the rich.
Nowhere was that poisonous cocktail of vanity and self-delusion more visible than in Manhattan. Although some important cultural projects were commissioned, this era will probably be remembered as much for its vulgarity as its ambition.
Every major architect in the world, it seemed, was designing an exclusive residential building here. With its elaborate faux-graffiti barrier, Herzog & de Meuron's 40 Bond Street was among the most indulgent, but it had plenty of rivals, including projects by Daniel Libeskind, UNStudio, Koolhaas and Norman Foster.
Together these projects threatened to transform the city's skyline into a tapestry of individual greed.
Now that high-end bubble has popped, and it is unlikely to return anytime soon. Jean Nouvel's 75-story residential tower adjoining the Museum of Modern Art has been delayed indefinitely. And developers now seem loath to undertake similar projects. Even if the economy turns around, the public's tolerance for outsize architectural statements that serve the rich and self-absorbed has already been pretty much exhausted.
This is not all good news. A lot of wonderful architecture is being thrown out with the bad. Although most of Nouvel's MoMA tower would have been devoted to luxury apartments, for instance, it would have allowed the museum next door to expand its gallery space significantly. It would also have been one of the most spectacular additions to the Manhattan skyline since the Chrysler Building.
And it would be a shame if the recession derailed promising cultural projects like Renzo Piano's new Whitney Museum of American Art in the meatpacking district or Foster's interior renovation of the Beaux-Arts New York Public Library on Fifth Avenue.
Architecture firms, meanwhile, are suffering like everyone else. With so many projects postponed and so few new ones coming in, many are already laying off employees. Aspiring architects who are just emerging from graduate programs are likely to move on to more secure professions, which could spell a smaller talent pool in the future.
Still, if the recession doesn't kill the profession, it may have some long-term positive effects for our architecture. President-elect Barack Obama has promised to invest heavily in infrastructure, including schools, parks, bridges and public housing. A major redirection of our creative resources may thus be at hand. If a lot of first-rate architectural talent promises to be at loose ends, why not enlist it in designing the projects that matter most? That's my dream anyway.
****************
A Bohemian space in posh Milan
By Eric Sylvers
Thursday, December 25, 2008
MILAN: With its intimate link to the worlds of fashion and design, few would connect Milan to the Bohemian life. But Elinor Schiele's living space does bring to mind the home of a struggling writer or artist.
Space is tight, the kitchen is minuscule and sloped ceilings make it hard to walk in some areas. While those problems might have scared away some, Schiele and her husband, Franco Mazzucchelli, have been renting the space in the heart of downtown Milan for 15 years.
The 93-square-meter, or 1,000-square-foot, apartment has a combination living and dining room, the mini-kitchen, a bedroom, two small bathrooms, two small studies and a large terrace where Schiele has grown fruit trees, flowers, plants and a wide array of herbs. In good weather she has barbecues on the terrace where, in the distance, a visitor can see the gold statue atop the city's cathedral.
"It's a little tight, but we have gotten used to that and I don't know where else in Milan we could get all this in a place that is so central and has a terrace with tomatoes and a fig tree," Schiele said. "I love this space and so does everybody who comes here because it's different from what you usually see in Milan. We hear church bells and birds singing on the terrace."
Schiele, who was born in London and lived in New York, came to Milan 30 years ago to work as a model but quickly left the profession when she found out how much she disliked it. But she did meet Mazzucchelli on the trip.
For the last 15 years she has worked in mosaics, with most of her commissions coming from the United States. She has moved away from traditional mosaics that use colored glass, and now mostly works with stones and pebbles.
Mazzucchelli has lived in the building for 50 years. He and Schiele originally rented an apartment on a lower floor, but they moved to the attic when the building's owner, a university friend of Mazzucchelli, wanted to give the apartment to his daughter.
Mazzucchelli had been using the attic as a study so it already was in good condition. But after they moved in, they turned some storage space into an extra room and second bathroom. "We were like Pac Man digging under the roof," Schiele said. "The extra space has been fantastic and changed our lives."
In the center of Milan, housing prices can be prohibitive. According to a recent study by the real estate company Tirelli & Partners, an exclusive resident in the city center costs between €2 million and €7 million, or $2.8 million to $9.7 million. And in the fashion district, a five-minute walk from Schiele's residence, apartments sold for an average of €17,000 per square meter, or $2,211 per square foot, in the first half of the year, the study said.
"If they got rid of us they could probably get 20 times more in rent," said Schiele, who would say only that the couple's rent is far below market value because they know the building's owner.
An apartment with similar characteristics in the neighborhood might rent for about €7,000 a month and cost just under €1 million to buy, according to Livio Naitana, a Milan-based real estate agent.
"Prices in Milan have been falling slowly since the spring, but that was after a very long run-up over many years," Naitana said. "Nice apartments used to sell themselves, now it takes a lot more work."
"We looked for 10 years and couldn't find anything that we really wanted to buy and prices now are out of sight," Schiele said. "There are areas of Milan that I lust after where I would buy, but the prices are like in London, New York or Paris - sometimes even higher because the beautiful core center of Milan is very small and sometimes the best places change hands and you don't even hear about it."
While Schiele and her husband rent in Milan, they own properties in Sag Harbor, New York, and on the volcanic Caribbean island of Montserrat. They spend six months a year in Milan with the remaining time split between the other two places.
"We are away often enough that we can justify having a smaller space here in Milan than we'd like," Schiele said. "I still manage to do everything, and we still have big dinners with 20 people where we pack everybody in."
By Eric Sylvers
Thursday, December 25, 2008
MILAN: With its intimate link to the worlds of fashion and design, few would connect Milan to the Bohemian life. But Elinor Schiele's living space does bring to mind the home of a struggling writer or artist.
Space is tight, the kitchen is minuscule and sloped ceilings make it hard to walk in some areas. While those problems might have scared away some, Schiele and her husband, Franco Mazzucchelli, have been renting the space in the heart of downtown Milan for 15 years.
The 93-square-meter, or 1,000-square-foot, apartment has a combination living and dining room, the mini-kitchen, a bedroom, two small bathrooms, two small studies and a large terrace where Schiele has grown fruit trees, flowers, plants and a wide array of herbs. In good weather she has barbecues on the terrace where, in the distance, a visitor can see the gold statue atop the city's cathedral.
"It's a little tight, but we have gotten used to that and I don't know where else in Milan we could get all this in a place that is so central and has a terrace with tomatoes and a fig tree," Schiele said. "I love this space and so does everybody who comes here because it's different from what you usually see in Milan. We hear church bells and birds singing on the terrace."
Schiele, who was born in London and lived in New York, came to Milan 30 years ago to work as a model but quickly left the profession when she found out how much she disliked it. But she did meet Mazzucchelli on the trip.
For the last 15 years she has worked in mosaics, with most of her commissions coming from the United States. She has moved away from traditional mosaics that use colored glass, and now mostly works with stones and pebbles.
Mazzucchelli has lived in the building for 50 years. He and Schiele originally rented an apartment on a lower floor, but they moved to the attic when the building's owner, a university friend of Mazzucchelli, wanted to give the apartment to his daughter.
Mazzucchelli had been using the attic as a study so it already was in good condition. But after they moved in, they turned some storage space into an extra room and second bathroom. "We were like Pac Man digging under the roof," Schiele said. "The extra space has been fantastic and changed our lives."
In the center of Milan, housing prices can be prohibitive. According to a recent study by the real estate company Tirelli & Partners, an exclusive resident in the city center costs between €2 million and €7 million, or $2.8 million to $9.7 million. And in the fashion district, a five-minute walk from Schiele's residence, apartments sold for an average of €17,000 per square meter, or $2,211 per square foot, in the first half of the year, the study said.
"If they got rid of us they could probably get 20 times more in rent," said Schiele, who would say only that the couple's rent is far below market value because they know the building's owner.
An apartment with similar characteristics in the neighborhood might rent for about €7,000 a month and cost just under €1 million to buy, according to Livio Naitana, a Milan-based real estate agent.
"Prices in Milan have been falling slowly since the spring, but that was after a very long run-up over many years," Naitana said. "Nice apartments used to sell themselves, now it takes a lot more work."
"We looked for 10 years and couldn't find anything that we really wanted to buy and prices now are out of sight," Schiele said. "There are areas of Milan that I lust after where I would buy, but the prices are like in London, New York or Paris - sometimes even higher because the beautiful core center of Milan is very small and sometimes the best places change hands and you don't even hear about it."
While Schiele and her husband rent in Milan, they own properties in Sag Harbor, New York, and on the volcanic Caribbean island of Montserrat. They spend six months a year in Milan with the remaining time split between the other two places.
"We are away often enough that we can justify having a smaller space here in Milan than we'd like," Schiele said. "I still manage to do everything, and we still have big dinners with 20 people where we pack everybody in."
*******************
Buying a private piece of paradise
By Alex Frew McMillan
Thursday, December 25, 2008
No man is an island. But plenty of people fancy the idea of owning one.
It may seem that Asia would be a magnet for "islomaniacs." Indonesia is the largest archipelago in the world, with 17,000 islands. The Philippines has about 7,100 or so, depending on the tides. Malaysia, Thailand, Cambodia and Vietnam all have extensive coastlines.
But real estate laws do not make it easy for foreigners to own property in Southeast Asia, and most islands either do not have clear ownership rights or are already settled. Also, the few places that do come on the market can have prohibitive costs, thanks to demand from hotel developers.
Given all those difficulties, several new developments are selling villas on private islands that are adjacent to high-end hotels. Owners can have their island retreat without having to absorb the total cost of keeping it habitable.
Aman Resorts is selling villas that start at $3 million on a private island in the Philippines. Owners have unfettered access to the resort's facilities and can live at their property, use it as a holiday home or include it in the company's rental pool.
Similarly, Soneva Kiri, a resort run by Six Senses on the Thai island of Koh Kood, is selling villas starting at $4.5 million. There also is a private island for sale nearby at $38 million.
And the Jumeirah Private Island project in Phuket, Thailand, is selling private residential villas and estates next to a resort, with prices starting at $3.2 million.
The developers of all these projects say it is too early to tell how the global real estate slump and credit crisis will affect sales - or whether persistent political problems in Thailand will take a special toll on that country's projects.
There are options for buyers with smaller budgets, like The Village at Coconut Island, a private island just off Phuket, with prices starting around $610,000. Also, a startup called Barefoot Investments is beginning its first project on a private island in the Philippines, the Cacao Pearl in Palawan, with homes starting at $210,000.
"There's a wide selection of interest for private islands that would support a development that's a hop skip and a jump from a five-star resort," said David Simister, chairman of CB Richard Ellis for Thailand, Vietnam and Cambodia. "It's the ideal balance."
Marlon Brando's experiences in the South Pacific while shooting the 1962 movie "Mutiny on the Bounty" inspired him to buy Tetiaroa, an atoll surrounded by 13 smaller islands, which he owned until his death in 2004.
In recent years, Dick Bailey, an American hotelier based in Tahiti, has been trying to develop a luxury hotel, The Brando, at Tetiaroa. But the controversial project has faced legal wrangling over Brando's will and wishes for the atoll as well as delays.
Brando had many ideas for his sanctuary, but few came to fruition - a common problem for island owners. Getting enough potable water is a significant problem. So is access, if the island is remote. And owners have to import all their household goods and building materials.
"If the island is too small, just a palm tree and a beach, you can't do anything with that because there is no water," said Charlotte Filleul, general manager of resort property for CB Richard Ellis in Thailand. "It has to be a certain size, and once it is a certain size it is impractical. It is not easy to make it work."
But, with enough money, there are ways to get around the problems.
Six Senses is offering the Thai island of Koh Raet, with a 10-bedroom villa and full management services, for $38 million. It says the spot, opposite Koh Kood and the Soneva Kiri resort, has drawn interest from potential buyers in the Middle East, Taiwan and Russia, but no one has committed.
"There are only so many private islands you can buy, and this one is fully managed and serviced by Soneva," said Adam Taugwalder, the sales and marketing director for the company's residences division.
As required by Thai law, it would be sold on a 30-year lease, with two extensions of the same duration; the company promising additional extensions, if possible.
Six Senses made its name with its flagship resorts in the Maldives, Soneva Fushi and Soneva Gili. The expansion into private property is something of a gamble for the company, but the founders - the chief executive, Sonu Shivdasani, and his wife and creative director, Eva Shivdasani - say they started their hotels so they could have their own house at Soneva Fushi. Now, they are offering such access to others.
The TGR Group is developing a similar project with Jumeirah Private Island, which the owners had originally planned for their own use.
"It grew from the idea that it would be fantastic to have a private island in this region," said Anthony Franklin, a TGR partner and its marketing director. "And then once you start to work on the logistics, you realize you need service."
TGR is a syndicate of European investors that started looking at Thai property, particularly Koh Samui, after the 2004 tsunami. They took on a local partner in Dilokpol Sundaravej, the former Thailand manager of Bovis Lend Lease and nephew of Samak Sundaravej, who stepped down as Thai prime minister in September.
The partners decided Phuket had the international schools and amenities they required, and, with undeveloped beachfront in very short supply there, they decided to expand to nearby islands. But few are suitable, and most are controlled by the Thai Navy.
Jumeirah Private Island sits in Phang Nga Bay, just northeast of Phuket and near its international airport. TGR drilled a tunnel under the seabed to put in fiber-optic cables, electricity and water pipes, to turn the island - also called Koh Raet - into a developable site. It also dredged the marina, put in roads and hired the Jumeirah Group, best known for running the sail-shaped Dubai hotel Burj Al Arab, to operate the resort, which is due to open in 2010.
The project has three types of private property for sale: 15 estates that start at $6 million, 34 large residences and several smaller, two-bedroom villas.
By Alex Frew McMillan
Thursday, December 25, 2008
No man is an island. But plenty of people fancy the idea of owning one.
It may seem that Asia would be a magnet for "islomaniacs." Indonesia is the largest archipelago in the world, with 17,000 islands. The Philippines has about 7,100 or so, depending on the tides. Malaysia, Thailand, Cambodia and Vietnam all have extensive coastlines.
But real estate laws do not make it easy for foreigners to own property in Southeast Asia, and most islands either do not have clear ownership rights or are already settled. Also, the few places that do come on the market can have prohibitive costs, thanks to demand from hotel developers.
Given all those difficulties, several new developments are selling villas on private islands that are adjacent to high-end hotels. Owners can have their island retreat without having to absorb the total cost of keeping it habitable.
Aman Resorts is selling villas that start at $3 million on a private island in the Philippines. Owners have unfettered access to the resort's facilities and can live at their property, use it as a holiday home or include it in the company's rental pool.
Similarly, Soneva Kiri, a resort run by Six Senses on the Thai island of Koh Kood, is selling villas starting at $4.5 million. There also is a private island for sale nearby at $38 million.
And the Jumeirah Private Island project in Phuket, Thailand, is selling private residential villas and estates next to a resort, with prices starting at $3.2 million.
The developers of all these projects say it is too early to tell how the global real estate slump and credit crisis will affect sales - or whether persistent political problems in Thailand will take a special toll on that country's projects.
There are options for buyers with smaller budgets, like The Village at Coconut Island, a private island just off Phuket, with prices starting around $610,000. Also, a startup called Barefoot Investments is beginning its first project on a private island in the Philippines, the Cacao Pearl in Palawan, with homes starting at $210,000.
"There's a wide selection of interest for private islands that would support a development that's a hop skip and a jump from a five-star resort," said David Simister, chairman of CB Richard Ellis for Thailand, Vietnam and Cambodia. "It's the ideal balance."
Marlon Brando's experiences in the South Pacific while shooting the 1962 movie "Mutiny on the Bounty" inspired him to buy Tetiaroa, an atoll surrounded by 13 smaller islands, which he owned until his death in 2004.
In recent years, Dick Bailey, an American hotelier based in Tahiti, has been trying to develop a luxury hotel, The Brando, at Tetiaroa. But the controversial project has faced legal wrangling over Brando's will and wishes for the atoll as well as delays.
Brando had many ideas for his sanctuary, but few came to fruition - a common problem for island owners. Getting enough potable water is a significant problem. So is access, if the island is remote. And owners have to import all their household goods and building materials.
"If the island is too small, just a palm tree and a beach, you can't do anything with that because there is no water," said Charlotte Filleul, general manager of resort property for CB Richard Ellis in Thailand. "It has to be a certain size, and once it is a certain size it is impractical. It is not easy to make it work."
But, with enough money, there are ways to get around the problems.
Six Senses is offering the Thai island of Koh Raet, with a 10-bedroom villa and full management services, for $38 million. It says the spot, opposite Koh Kood and the Soneva Kiri resort, has drawn interest from potential buyers in the Middle East, Taiwan and Russia, but no one has committed.
"There are only so many private islands you can buy, and this one is fully managed and serviced by Soneva," said Adam Taugwalder, the sales and marketing director for the company's residences division.
As required by Thai law, it would be sold on a 30-year lease, with two extensions of the same duration; the company promising additional extensions, if possible.
Six Senses made its name with its flagship resorts in the Maldives, Soneva Fushi and Soneva Gili. The expansion into private property is something of a gamble for the company, but the founders - the chief executive, Sonu Shivdasani, and his wife and creative director, Eva Shivdasani - say they started their hotels so they could have their own house at Soneva Fushi. Now, they are offering such access to others.
The TGR Group is developing a similar project with Jumeirah Private Island, which the owners had originally planned for their own use.
"It grew from the idea that it would be fantastic to have a private island in this region," said Anthony Franklin, a TGR partner and its marketing director. "And then once you start to work on the logistics, you realize you need service."
TGR is a syndicate of European investors that started looking at Thai property, particularly Koh Samui, after the 2004 tsunami. They took on a local partner in Dilokpol Sundaravej, the former Thailand manager of Bovis Lend Lease and nephew of Samak Sundaravej, who stepped down as Thai prime minister in September.
The partners decided Phuket had the international schools and amenities they required, and, with undeveloped beachfront in very short supply there, they decided to expand to nearby islands. But few are suitable, and most are controlled by the Thai Navy.
Jumeirah Private Island sits in Phang Nga Bay, just northeast of Phuket and near its international airport. TGR drilled a tunnel under the seabed to put in fiber-optic cables, electricity and water pipes, to turn the island - also called Koh Raet - into a developable site. It also dredged the marina, put in roads and hired the Jumeirah Group, best known for running the sail-shaped Dubai hotel Burj Al Arab, to operate the resort, which is due to open in 2010.
The project has three types of private property for sale: 15 estates that start at $6 million, 34 large residences and several smaller, two-bedroom villas.
Australian panel criticizes detention of bombing suspect
By Raymond Bonner
Thursday, December 25, 2008
SYDNEY: A special investigating body has issued a report sharply critical of the government's arrest and detention of an Indian doctor who was accused of involvement with the failed terrorist bombers in London and Glasgow in 2007.
The eight-month inquiry concluded that the evidence against the doctor, Mohamed Haneef, "amounted to very little" and was "completely deficient." Haneef, who worked in Australia, was detained on July 2, 2007, and within two days the country's domestic intelligence agency concluded that he was innocent, the report said.
Yet Haneef was charged with support for a terrorist organization and detained for 25 days. After a judge expressed doubt about the government's case, the prosecution withdrew the charges. But the immigration minister then revoked Haneef's visa.
The actions were taken by the center-right Liberal government headed by Prime Minister John Howard. The center-left Labor government, under Kevin Rudd, came to power in November 2007 and ordered the inquiry in March.
Howard declined to testify and did not allow a senior aide who handled the Haneef case to testify.
Haneef was arrested at the Brisbane airport as he was about to board a flight to India to see his wife, who had recently given birth to the couple's first child. The federal police acted on information from the British police that a cellphone SIM card in his name was found in possession of one of the suspects in the failed London and Glasgow attacks.
Earlier this month in Britain, one of the men accused in the attempted bombings, Dr. Bilal Abdulla, was convicted of conspiracy to commit murder and conspiracy to cause explosions. He and an accomplice, Kafeel Ahmed, had left two cars loaded with explosives on the street near a popular London nightclub in the early hours of June 29, 2007. The cars failed to explode.
A day later, the men drove an explosives-laden Jeep into the passenger terminal of the Glasgow international airport. Ahmed later died of burns.
Haneef's SIM card was found in the possession a brother of Ahmed's, Dr. Sabeel Ahmed.
During questioning by the Australian police, Haneef said he had given the card to Ahmed, who is a distant cousin, when he left Britain, where he had been studying, in June 2006. ( Ahmed recently pleaded guilty to withholding information from the police about the attack.)
The report on the inquiry, written by John Clarke and released on Monday, points out that no effort was made within the government to reconcile the conflicting views held by the federal police and the domestic intelligence agency, the Australian Security Intelligence Organization.
Clarke was critical of the chief police counterterrorism officer, Ramzi Jabbour. While describing him as "impressive, dedicated and capable," Clarke concluded that Jabbour failed to see that the evidence against Haneef he considered incriminating "in fact amounted to very little."
The chief of the Immigration Department at the time, Kevin Andrews, was also rebuked. Clarke described his decision to revoke Haneef's visa as "mystifying."
Reacting to the inquiry, Andrews issued a statement saying: "The Australian people expected me to act. I had the courage to do so."
Haneef, who now works in Dubai, called the report a Christmas present, saying during a telephone news conference, "Mr. Clarke has made a clear finding with the report that I was totally innocent."
By Raymond Bonner
Thursday, December 25, 2008
SYDNEY: A special investigating body has issued a report sharply critical of the government's arrest and detention of an Indian doctor who was accused of involvement with the failed terrorist bombers in London and Glasgow in 2007.
The eight-month inquiry concluded that the evidence against the doctor, Mohamed Haneef, "amounted to very little" and was "completely deficient." Haneef, who worked in Australia, was detained on July 2, 2007, and within two days the country's domestic intelligence agency concluded that he was innocent, the report said.
Yet Haneef was charged with support for a terrorist organization and detained for 25 days. After a judge expressed doubt about the government's case, the prosecution withdrew the charges. But the immigration minister then revoked Haneef's visa.
The actions were taken by the center-right Liberal government headed by Prime Minister John Howard. The center-left Labor government, under Kevin Rudd, came to power in November 2007 and ordered the inquiry in March.
Howard declined to testify and did not allow a senior aide who handled the Haneef case to testify.
Haneef was arrested at the Brisbane airport as he was about to board a flight to India to see his wife, who had recently given birth to the couple's first child. The federal police acted on information from the British police that a cellphone SIM card in his name was found in possession of one of the suspects in the failed London and Glasgow attacks.
Earlier this month in Britain, one of the men accused in the attempted bombings, Dr. Bilal Abdulla, was convicted of conspiracy to commit murder and conspiracy to cause explosions. He and an accomplice, Kafeel Ahmed, had left two cars loaded with explosives on the street near a popular London nightclub in the early hours of June 29, 2007. The cars failed to explode.
A day later, the men drove an explosives-laden Jeep into the passenger terminal of the Glasgow international airport. Ahmed later died of burns.
Haneef's SIM card was found in the possession a brother of Ahmed's, Dr. Sabeel Ahmed.
During questioning by the Australian police, Haneef said he had given the card to Ahmed, who is a distant cousin, when he left Britain, where he had been studying, in June 2006. ( Ahmed recently pleaded guilty to withholding information from the police about the attack.)
The report on the inquiry, written by John Clarke and released on Monday, points out that no effort was made within the government to reconcile the conflicting views held by the federal police and the domestic intelligence agency, the Australian Security Intelligence Organization.
Clarke was critical of the chief police counterterrorism officer, Ramzi Jabbour. While describing him as "impressive, dedicated and capable," Clarke concluded that Jabbour failed to see that the evidence against Haneef he considered incriminating "in fact amounted to very little."
The chief of the Immigration Department at the time, Kevin Andrews, was also rebuked. Clarke described his decision to revoke Haneef's visa as "mystifying."
Reacting to the inquiry, Andrews issued a statement saying: "The Australian people expected me to act. I had the courage to do so."
Haneef, who now works in Dubai, called the report a Christmas present, saying during a telephone news conference, "Mr. Clarke has made a clear finding with the report that I was totally innocent."
Turning page, e-books start to take hold
By Brad Stone and Motoko Rich
Thursday, December 25, 2008
Could book lovers finally be willing to switch from paper to pixels?
For a decade, consumers mostly ignored electronic book devices, which were often hard to use and offered few popular items to read. But this year, in part because of the popularity of Amazon.com's wireless Kindle device, the e-book has started to take hold.
The $359 Kindle, which is slim, white and about the size of a trade paperback, was introduced a year ago. Although Amazon will not disclose sales figures, the Kindle has at least lived up to its name by creating broad interest in electronic books. Now it is out of stock and unavailable until February. Analysts credit Oprah Winfrey, who praised the Kindle on her show in October, and blame Amazon for poor holiday planning.
The shortage is providing an opening for Sony, which embarked on an intense publicity campaign for its Reader device during the gift-buying season. The stepped-up competition may represent a coming of age for the entire idea of reading longer texts on a portable digital device.
"The perception is that e-books have been around for 10 years and haven't done anything," said Steve Haber, president of Sony's digital reading division. "But it's happening now. This is really starting to take off."
Sony's efforts have been overshadowed by Amazon's. But this month it began a promotional blitz in airports, train stations and bookstores, with the ambitious goal of personally demonstrating the Reader to two million people by the end of the year.
The company's latest model, the Reader 700, is a $400 device with a reading light and a touch screen that allows users to annotate what they are reading. Haber said Sony's sales had tripled this holiday season over last, in part because the device is now available in the Target, Borders and Sam's Club chains. He said Sony had sold more than 300,000 devices since the debut of the original Reader in 2006.
It is difficult to quantify the success of the Kindle, since Amazon will not disclose how many it has sold and analysts' estimates vary widely. Peter Hildick-Smith, president of the Codex Group, a book market research company, said he believed Amazon had sold as many as 260,000 units through the beginning of October, before Winfrey's endorsement. Others say the number could be as high as a million.
Many Kindle buyers appear to be outside the usual gadget-hound demographic. Almost as many women as men are buying it, Hildick-Smith said, and the device is most popular among 55- to 64-year-olds.
So far, publishers like HarperCollins, Random House and Simon & Schuster say that sales of e-books for any device — including simple laptop downloads — constitute less than 1 percent of total book sales. But there are signs of momentum. The publishers say sales of e-books have tripled or quadrupled in the last year.
Amazon's Kindle version of "The Story of Edgar Sawtelle" by David Wroblewski, a best seller recommended by Winfrey's book club, now represents 20 percent of total Amazon sales of the book, according to Brian Murray, chief executive of HarperCollins Publishers Worldwide.
The Kindle version of the book, which can be downloaded by the device itself through its wireless modem, costs $9.99 in the Amazon Kindle store. The Reader version costs $11.99 from Sony's e-book library, accessible from an Internet-connected computer.
Even authors who were once wary of selling their work in bits and bytes are coming around. After some initial hesitation, authors like Danielle Steel and John Grisham are soon expected to add their titles to the e-book catalogue, their agents say.
"E-books will become the go-to-first format for an ever-expanding group of readers who are newly discovering how much they enjoy reading books on a screen," said Markus Dohle, chief executive of Random House, the world's largest publisher of consumer books.
Nobody knows how much consumer habits will shift. Some of the most committed bibliophiles maintain an almost fetishistic devotion to the physical book. But the technology may have more appeal for particular kinds of people, like those who are the heaviest readers.
At Harlequin Enterprises, the Toronto-based publisher of bodice-ripping romances, Malle Vallik, director for digital content and interactivity, said she expected sales of digital versions of the company's books someday to match or potentially outstrip sales in print.
Harlequin, which publishes 120 books a month, makes all of its new titles available digitally, and has even started publishing digital-only short stories that it sells for $2.99 each, including an erotica collection called Spice Briefs.
Perhaps the most overlooked boost to e-books this year — and a challenge to some of the standard thinking about them — came from Apple's do-it-all gadget, the iPhone.
Several e-book-reading programs have been created for the device, and at least two of them, Stanza from LexCycle and the eReader from Fictionwise, have been downloaded more than 600,000 times. Another company, Scroll Motion, announced this week that it would begin selling e-books for the iPhone from major publishers like Simon & Schuster, Random House and Penguin.
All of these companies say they are now tailoring their software for other kinds of smartphones, including BlackBerrys.
Publishers say these iPhone applications are already starting to generate nearly as many digital book sales as the Sony Reader, though they still trail sales of books in the Kindle format.
Meanwhile, the quest to build the perfect e-book reader continues. Amazon and Sony are expected to introduce new versions of their readers in 2009. Adherents expect the new Kindle will have a sleeker design and a better microprocessor, allowing snappier page-turning.
Haber of Sony said future versions of the Reader will have wireless capability, a feature that has helped make the Kindle so appealing. This means that the device does not have to be plugged into a computer to download books, newspapers and magazines.
Other competitors are on the way. Investors have put more than $200 million into Plastic Logic, a company in Mountain View, California The company says that next year it will begin testing a flexible 8.5-by-11-inch reading device that is thinner and lighter than existing ones. Plastic Logic plans to begin selling it in 2010.
Along the same lines, Polymer Vision, based in the Netherlands, demonstrated a device the size of a BlackBerry that has a five-inch rolled-up screen that can be unfurled for reading. There are also less ambitious but cheaper readers on the market or expected soon, including the eSlick Reader from Foxit Software, arriving next month at an introductory price of $230.
E Ink, the company in Cambridge, Massachusetts, that has developed the screen technology for many of these companies, says it is testing color screens and hopes to introduce them by 2010.
Many book lovers are quite happy with today's devices. MaryAnn van Hengel, 51, a graphic designer in Croton-on-Hudson, New York, once railed against e-readers at a meeting of her book club. But she embraced the Kindle her husband gave her this fall shortly after Winfrey endorsed it.
Van Hengel now has several books on the device, including a Nora Roberts novel and Doris Kearns Goodwin's "Team of Rivals." She said the Kindle had spurred her to buy more books than she normally would in print.
"I may be shy bringing the Kindle to the book club because so many of the women were so against the technology, and I said I was too," Van Hengel said. "And here I am in love with it."
By Brad Stone and Motoko Rich
Thursday, December 25, 2008
Could book lovers finally be willing to switch from paper to pixels?
For a decade, consumers mostly ignored electronic book devices, which were often hard to use and offered few popular items to read. But this year, in part because of the popularity of Amazon.com's wireless Kindle device, the e-book has started to take hold.
The $359 Kindle, which is slim, white and about the size of a trade paperback, was introduced a year ago. Although Amazon will not disclose sales figures, the Kindle has at least lived up to its name by creating broad interest in electronic books. Now it is out of stock and unavailable until February. Analysts credit Oprah Winfrey, who praised the Kindle on her show in October, and blame Amazon for poor holiday planning.
The shortage is providing an opening for Sony, which embarked on an intense publicity campaign for its Reader device during the gift-buying season. The stepped-up competition may represent a coming of age for the entire idea of reading longer texts on a portable digital device.
"The perception is that e-books have been around for 10 years and haven't done anything," said Steve Haber, president of Sony's digital reading division. "But it's happening now. This is really starting to take off."
Sony's efforts have been overshadowed by Amazon's. But this month it began a promotional blitz in airports, train stations and bookstores, with the ambitious goal of personally demonstrating the Reader to two million people by the end of the year.
The company's latest model, the Reader 700, is a $400 device with a reading light and a touch screen that allows users to annotate what they are reading. Haber said Sony's sales had tripled this holiday season over last, in part because the device is now available in the Target, Borders and Sam's Club chains. He said Sony had sold more than 300,000 devices since the debut of the original Reader in 2006.
It is difficult to quantify the success of the Kindle, since Amazon will not disclose how many it has sold and analysts' estimates vary widely. Peter Hildick-Smith, president of the Codex Group, a book market research company, said he believed Amazon had sold as many as 260,000 units through the beginning of October, before Winfrey's endorsement. Others say the number could be as high as a million.
Many Kindle buyers appear to be outside the usual gadget-hound demographic. Almost as many women as men are buying it, Hildick-Smith said, and the device is most popular among 55- to 64-year-olds.
So far, publishers like HarperCollins, Random House and Simon & Schuster say that sales of e-books for any device — including simple laptop downloads — constitute less than 1 percent of total book sales. But there are signs of momentum. The publishers say sales of e-books have tripled or quadrupled in the last year.
Amazon's Kindle version of "The Story of Edgar Sawtelle" by David Wroblewski, a best seller recommended by Winfrey's book club, now represents 20 percent of total Amazon sales of the book, according to Brian Murray, chief executive of HarperCollins Publishers Worldwide.
The Kindle version of the book, which can be downloaded by the device itself through its wireless modem, costs $9.99 in the Amazon Kindle store. The Reader version costs $11.99 from Sony's e-book library, accessible from an Internet-connected computer.
Even authors who were once wary of selling their work in bits and bytes are coming around. After some initial hesitation, authors like Danielle Steel and John Grisham are soon expected to add their titles to the e-book catalogue, their agents say.
"E-books will become the go-to-first format for an ever-expanding group of readers who are newly discovering how much they enjoy reading books on a screen," said Markus Dohle, chief executive of Random House, the world's largest publisher of consumer books.
Nobody knows how much consumer habits will shift. Some of the most committed bibliophiles maintain an almost fetishistic devotion to the physical book. But the technology may have more appeal for particular kinds of people, like those who are the heaviest readers.
At Harlequin Enterprises, the Toronto-based publisher of bodice-ripping romances, Malle Vallik, director for digital content and interactivity, said she expected sales of digital versions of the company's books someday to match or potentially outstrip sales in print.
Harlequin, which publishes 120 books a month, makes all of its new titles available digitally, and has even started publishing digital-only short stories that it sells for $2.99 each, including an erotica collection called Spice Briefs.
Perhaps the most overlooked boost to e-books this year — and a challenge to some of the standard thinking about them — came from Apple's do-it-all gadget, the iPhone.
Several e-book-reading programs have been created for the device, and at least two of them, Stanza from LexCycle and the eReader from Fictionwise, have been downloaded more than 600,000 times. Another company, Scroll Motion, announced this week that it would begin selling e-books for the iPhone from major publishers like Simon & Schuster, Random House and Penguin.
All of these companies say they are now tailoring their software for other kinds of smartphones, including BlackBerrys.
Publishers say these iPhone applications are already starting to generate nearly as many digital book sales as the Sony Reader, though they still trail sales of books in the Kindle format.
Meanwhile, the quest to build the perfect e-book reader continues. Amazon and Sony are expected to introduce new versions of their readers in 2009. Adherents expect the new Kindle will have a sleeker design and a better microprocessor, allowing snappier page-turning.
Haber of Sony said future versions of the Reader will have wireless capability, a feature that has helped make the Kindle so appealing. This means that the device does not have to be plugged into a computer to download books, newspapers and magazines.
Other competitors are on the way. Investors have put more than $200 million into Plastic Logic, a company in Mountain View, California The company says that next year it will begin testing a flexible 8.5-by-11-inch reading device that is thinner and lighter than existing ones. Plastic Logic plans to begin selling it in 2010.
Along the same lines, Polymer Vision, based in the Netherlands, demonstrated a device the size of a BlackBerry that has a five-inch rolled-up screen that can be unfurled for reading. There are also less ambitious but cheaper readers on the market or expected soon, including the eSlick Reader from Foxit Software, arriving next month at an introductory price of $230.
E Ink, the company in Cambridge, Massachusetts, that has developed the screen technology for many of these companies, says it is testing color screens and hopes to introduce them by 2010.
Many book lovers are quite happy with today's devices. MaryAnn van Hengel, 51, a graphic designer in Croton-on-Hudson, New York, once railed against e-readers at a meeting of her book club. But she embraced the Kindle her husband gave her this fall shortly after Winfrey endorsed it.
Van Hengel now has several books on the device, including a Nora Roberts novel and Doris Kearns Goodwin's "Team of Rivals." She said the Kindle had spurred her to buy more books than she normally would in print.
"I may be shy bringing the Kindle to the book club because so many of the women were so against the technology, and I said I was too," Van Hengel said. "And here I am in love with it."
A von Trapp takes over the family business and legacy
By Stephanie Clifford
Thursday, December 25, 2008
STOWE, Vermont: When Sam von Trapp, the grandson of Maria, the singing nun made famous by "The Sound of Music," graduated from college, his father offered him a deal: Sam could do whatever he wanted for 10 years before he had to return home here to run the family's ski lodge.
His father started calling him to come home after six years.
When von Trapp finally returned to take over from his father, Johannes, he had had quite a decade: teaching skiing in Aspen, Colorado, modeling for Ralph Lauren, surfing in Chile and even making People magazine's America's Top 50 Bachelors list in 2001. Recently, he sat in a dark office at the Trapp Family Lodge, the inn his grandmother started, trying to decide what to do with some old curtains.
It is hard for anyone to untangle family history and allegiances during the holidays. When your last name is von Trapp, and Americans claim you as part of their own legacy, that task is just that much harder.
That legacy weighs on von Trapp even as he considers something as mundane as curtains.
In "The Sound of Music," the beloved 1965 movie, Maria, the governess played by Julie Andrews, turned old curtains into play clothes for the seven von Trapp children, just as the real Maria had done. Von Trapp figured that if he sold von Trapp draperies on eBay, he might turn a nice little profit.
"Nobody has the level of commitment I do," said von Trapp, now 36, but looking young and athletic for his age. "Nobody has as much to gain."
Despite the nostalgic mist around "The Sound of Music," von Trapp is taking over a business for a family that has had its share of ups and downs and disagreements.
When the von Trapps arrived in the United States in 1938, they settled in Pennsylvania and made money by singing baroque and folk music. By 1942, the family had bought a farm in Stowe. Maria rented out rooms in the house when the von Trapps were on tour singing.
Still, Johannes von Trapp, the 10th and youngest child, remembers growing up relatively anonymously in a quiet, strict home. That began to shift after the 1959 Broadway production of Rodgers and Hammerstein's "The Sound of Music," and when the movie opened, everything changed.
"You could no longer give your name anywhere without people saying 'Oh, are you ... ?"' said the elder von Trapp, now 69. "The film, for better or for worse, made us a mass market commodity."
The von Trapps have never directly profited from the film or Broadway musical: Maria, whose husband died in 1947, sold the rights to the family story to a German film company in the mid-1950s for just $9,000. Johannes and now his son run the cross-country skiing lodge that trades on the family's fame with Austrian food, waitresses wearing dirndls and pictures of the family, but not a single poster from the movie.
"'The Sound of Music' was great, but it was an American version of my family's life," said Johannes, who no longer sings, although he still has a pleasant, reedy bass voice. "It wasn't what we were. I just got tired of being cast as a 'Sound of Music' person."
The family legacy has been particularly onerous for him.
People would ask about Liesl, and he would have to point out that his eldest sibling was not 16 going on 17, but 54 in 1965 - and male.
They would ask whether he was Kurt or Friedrich, and he would have to explain that his father and mother had three children together, and he was the youngest. His mother was presented as a near-saint in the movie; in real life, she was difficult and domineering, people who knew her said. By 1969, he had graduated from Dartmouth, completed a master's degree at the Yale school of forestry and was planning on an academic career in natural resources. He returned to Stowe to put the inn's finances in order, and ended up running the place. He tried to leave, moving to a ranch in British Columbia in 1977 and staying a few years, then moving to a ranch in Montana. But the professional management in Stowe kept quitting. "Now I'm stuck here," he said.
As long as Maria was alive, the von Trapp siblings grudgingly got along.
"She was a very strong-minded, strong-willed woman," said Marshall Faye, a baker who has worked at the lodge for more than 30 years. "She ruled the family. Anything they did had to have her blessing."
After Maria died in 1987, the family members - 32 of whom owned stock in the lodge - started to fracture. Johannes engineered a buyout in 1994 and settled lawsuits with relatives in 1999. "I honestly resented the fact that none of my older siblings could've took over the business," he said. "Then I could've run off and done whatever I wanted to do."
If he had to run a lodge, he wanted a quiet, dignified one. He enjoys events like the Friday night wine tastings, where he can sip Grüner Veltliners and greet guests in the patrician fashion he learned as a boy.
But in the off season, the "Sound of Music" bus tours arrive, full of seniors who line their purses with cellophane so they can stuff them with Austrian pastries at the breakfast buffet. He recently discovered that his gift shop had been selling a stuffed goat that sings "The Lonely Goatherd."
"Isn't that awful?" he said, sighing. "My staff hid it from me for months. But it does sell."
Since the buyout, the lodge has been profitable, if not enormously so, he said. It provides well for his family - his wife, Lynne, whom he met when she was a singing waitress at the lodge one summer, and his children, Sam and Kristina, who recently moved back to Stowe and built a house on the 2,400-acre, or 970-hectare, property for her own family, he said.
For Sam, a generation removed from "The Sound of Music," the burden of being a von Trapp is lighter. He has seen the movie only a couple of times, and is the child of a Vermonter, not the son of an Austrian baron. "For him, there were all those issues in the family, too, that came along with that little leap into fame," Sam said of his father.
Since his return, the younger von Trapp has made snow making his big project, spending nights on the snow-covered meadows in 10-degree Fahrenheit (minus-12 Celsius) weather, doing the heavy manual work it requires. He plans to bring back holiday singalongs and to advertise the lodge during ABC's broadcast of "The Sound of Music" on Sunday, which his father once opposed.
The movie is "one of the reasons - the big one - that people come here," said Ron Tanner, a marketing consultant who works at the lodge. "The TV ad will be to say, 'Hey, the next generation has taken over the Trapp Family Lodge."'
By Stephanie Clifford
Thursday, December 25, 2008
STOWE, Vermont: When Sam von Trapp, the grandson of Maria, the singing nun made famous by "The Sound of Music," graduated from college, his father offered him a deal: Sam could do whatever he wanted for 10 years before he had to return home here to run the family's ski lodge.
His father started calling him to come home after six years.
When von Trapp finally returned to take over from his father, Johannes, he had had quite a decade: teaching skiing in Aspen, Colorado, modeling for Ralph Lauren, surfing in Chile and even making People magazine's America's Top 50 Bachelors list in 2001. Recently, he sat in a dark office at the Trapp Family Lodge, the inn his grandmother started, trying to decide what to do with some old curtains.
It is hard for anyone to untangle family history and allegiances during the holidays. When your last name is von Trapp, and Americans claim you as part of their own legacy, that task is just that much harder.
That legacy weighs on von Trapp even as he considers something as mundane as curtains.
In "The Sound of Music," the beloved 1965 movie, Maria, the governess played by Julie Andrews, turned old curtains into play clothes for the seven von Trapp children, just as the real Maria had done. Von Trapp figured that if he sold von Trapp draperies on eBay, he might turn a nice little profit.
"Nobody has the level of commitment I do," said von Trapp, now 36, but looking young and athletic for his age. "Nobody has as much to gain."
Despite the nostalgic mist around "The Sound of Music," von Trapp is taking over a business for a family that has had its share of ups and downs and disagreements.
When the von Trapps arrived in the United States in 1938, they settled in Pennsylvania and made money by singing baroque and folk music. By 1942, the family had bought a farm in Stowe. Maria rented out rooms in the house when the von Trapps were on tour singing.
Still, Johannes von Trapp, the 10th and youngest child, remembers growing up relatively anonymously in a quiet, strict home. That began to shift after the 1959 Broadway production of Rodgers and Hammerstein's "The Sound of Music," and when the movie opened, everything changed.
"You could no longer give your name anywhere without people saying 'Oh, are you ... ?"' said the elder von Trapp, now 69. "The film, for better or for worse, made us a mass market commodity."
The von Trapps have never directly profited from the film or Broadway musical: Maria, whose husband died in 1947, sold the rights to the family story to a German film company in the mid-1950s for just $9,000. Johannes and now his son run the cross-country skiing lodge that trades on the family's fame with Austrian food, waitresses wearing dirndls and pictures of the family, but not a single poster from the movie.
"'The Sound of Music' was great, but it was an American version of my family's life," said Johannes, who no longer sings, although he still has a pleasant, reedy bass voice. "It wasn't what we were. I just got tired of being cast as a 'Sound of Music' person."
The family legacy has been particularly onerous for him.
People would ask about Liesl, and he would have to point out that his eldest sibling was not 16 going on 17, but 54 in 1965 - and male.
They would ask whether he was Kurt or Friedrich, and he would have to explain that his father and mother had three children together, and he was the youngest. His mother was presented as a near-saint in the movie; in real life, she was difficult and domineering, people who knew her said. By 1969, he had graduated from Dartmouth, completed a master's degree at the Yale school of forestry and was planning on an academic career in natural resources. He returned to Stowe to put the inn's finances in order, and ended up running the place. He tried to leave, moving to a ranch in British Columbia in 1977 and staying a few years, then moving to a ranch in Montana. But the professional management in Stowe kept quitting. "Now I'm stuck here," he said.
As long as Maria was alive, the von Trapp siblings grudgingly got along.
"She was a very strong-minded, strong-willed woman," said Marshall Faye, a baker who has worked at the lodge for more than 30 years. "She ruled the family. Anything they did had to have her blessing."
After Maria died in 1987, the family members - 32 of whom owned stock in the lodge - started to fracture. Johannes engineered a buyout in 1994 and settled lawsuits with relatives in 1999. "I honestly resented the fact that none of my older siblings could've took over the business," he said. "Then I could've run off and done whatever I wanted to do."
If he had to run a lodge, he wanted a quiet, dignified one. He enjoys events like the Friday night wine tastings, where he can sip Grüner Veltliners and greet guests in the patrician fashion he learned as a boy.
But in the off season, the "Sound of Music" bus tours arrive, full of seniors who line their purses with cellophane so they can stuff them with Austrian pastries at the breakfast buffet. He recently discovered that his gift shop had been selling a stuffed goat that sings "The Lonely Goatherd."
"Isn't that awful?" he said, sighing. "My staff hid it from me for months. But it does sell."
Since the buyout, the lodge has been profitable, if not enormously so, he said. It provides well for his family - his wife, Lynne, whom he met when she was a singing waitress at the lodge one summer, and his children, Sam and Kristina, who recently moved back to Stowe and built a house on the 2,400-acre, or 970-hectare, property for her own family, he said.
For Sam, a generation removed from "The Sound of Music," the burden of being a von Trapp is lighter. He has seen the movie only a couple of times, and is the child of a Vermonter, not the son of an Austrian baron. "For him, there were all those issues in the family, too, that came along with that little leap into fame," Sam said of his father.
Since his return, the younger von Trapp has made snow making his big project, spending nights on the snow-covered meadows in 10-degree Fahrenheit (minus-12 Celsius) weather, doing the heavy manual work it requires. He plans to bring back holiday singalongs and to advertise the lodge during ABC's broadcast of "The Sound of Music" on Sunday, which his father once opposed.
The movie is "one of the reasons - the big one - that people come here," said Ron Tanner, a marketing consultant who works at the lodge. "The TV ad will be to say, 'Hey, the next generation has taken over the Trapp Family Lodge."'
New York Times Co. seeking to sell its stake in the Red Sox
By Richard Pérez-Peña
Thursday, December 25, 2008
The New York Times Co. is trying to sell its stake in the Boston Red Sox baseball team, seeking to raise cash and shield its newspaper franchise from rapidly falling revenue, a person briefed on the plans said on Wednesday.
Under pressure from investors to sell noncore assets in recent years, executives of the Times Company have said repeatedly that they were open to selling the stake, but only on the right terms.
But recently, they have been actively shopping the company's stake in New England Sports Ventures, which owns the Red Sox, said the person briefed on the plans, who was not authorized to discuss the matter and was given anonymity. The Times Company informed its partners in the venture of its plans last month.
The company executives have suggested that the central aim of any sale is to protect the company's newspapers, particularly the flagship Times. They have also been reluctant to consider the sale of About.com, an Internet site that is profitable and growing.
The company paid $75 million for a 17.5 percent stake in New England Sports Ventures, which bought the Red Sox in 2002 along with their stadium, Fenway Park, and 80 percent of New England Sports Network, a regional cable channel.
With credit largely frozen, this is a difficult time to be trying to sell any major asset, and it is not clear how much interest there might be, or at what price. But over the long run, prices for sports franchises tend to rise fast.
The Times Company reported on Wednesday that revenue from continuing operations in November was down 13.9 percent compared with the month a year earlier. For the year, it was down 7.6 percent.
The company recently said it planned to borrow $225 million against its headquarters building on Eighth Avenue in Midtown Manhattan, anticipating that it would not be able to renew a revolving line of credit that is set to expire in May.
By Richard Pérez-Peña
Thursday, December 25, 2008
The New York Times Co. is trying to sell its stake in the Boston Red Sox baseball team, seeking to raise cash and shield its newspaper franchise from rapidly falling revenue, a person briefed on the plans said on Wednesday.
Under pressure from investors to sell noncore assets in recent years, executives of the Times Company have said repeatedly that they were open to selling the stake, but only on the right terms.
But recently, they have been actively shopping the company's stake in New England Sports Ventures, which owns the Red Sox, said the person briefed on the plans, who was not authorized to discuss the matter and was given anonymity. The Times Company informed its partners in the venture of its plans last month.
The company executives have suggested that the central aim of any sale is to protect the company's newspapers, particularly the flagship Times. They have also been reluctant to consider the sale of About.com, an Internet site that is profitable and growing.
The company paid $75 million for a 17.5 percent stake in New England Sports Ventures, which bought the Red Sox in 2002 along with their stadium, Fenway Park, and 80 percent of New England Sports Network, a regional cable channel.
With credit largely frozen, this is a difficult time to be trying to sell any major asset, and it is not clear how much interest there might be, or at what price. But over the long run, prices for sports franchises tend to rise fast.
The Times Company reported on Wednesday that revenue from continuing operations in November was down 13.9 percent compared with the month a year earlier. For the year, it was down 7.6 percent.
The company recently said it planned to borrow $225 million against its headquarters building on Eighth Avenue in Midtown Manhattan, anticipating that it would not be able to renew a revolving line of credit that is set to expire in May.
ALL PHOTOGRAPHS COPYRIGHT IAN WALTHEW 2008
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