Fed minutes suggest new bond-buying plan is likely

The Federal Reserve will likely announce a new bond buying program in December to try to spur job growth.

The purchases would be intended to lower long-term borrowing rates to encourage spending and strengthen the economy. The hope is that more hiring would follow.

Minutes of the Fed's Oct. 23-24 policy meeting released Wednesday suggest that it will unveil a Treasury-buying plan to replace a program that expires at year's end. Under the existing program, called “Operation Twist,” the Fed has been selling $45 billion a month in short-term Treasurys and using the proceeds to buy an equal amount of longer-term securities.

When Operation Twist ends, the Fed will run out of short-term investments to sell. The minutes show support among the Fed's policymakers to replace Twist with another program of long-term bond purchases.

A new bond-buying program would come on top of a program the Fed launched in September. It began buying $40 billion a month in mortgage bonds to try to reduce long-term rates and make home buying more affordable. It was its third round of bond purchases.

The Fed also said in September that it planned to keep its benchmark short-term rate near zero through mid-2015. And it signaled a readiness to take other stimulative steps if hiring didn't pick up.

The Fed reaffirmed that stance at its October policy meeting but took no new action. Officials decided to wait to see whether the aggressive steps they announced in September would boost the economy.

In a statement after the October meeting, the Fed said that while the economy is improving moderately, job growth remained slow and the unemployment rate elevated. The rate is now 7.9 percent.

Many analysts say the economy is growing in the current October-December quarter at a weak annual rate below 2 percent — too slow to drive down unemployment. In part, that's why the Fed will likely take further action at its final policy meeting of the year Dec. 11-12.

Operation Twist hasn't expanded the Fed's portfolio of bond holdings. It's instead revamped the portfolio by shrinking the proportion made up of short-term investments and expanding the proportion made up of longer-term investments.

If the Fed launches a new bond-buying program, it would expand the portfolio.

Critics say the Fed's continued pumping of money into the financial system is heightening the risk of high inflation. But Fed Chairman Ben Bernanke and his allies think the bigger risk would come from doing too little to boost a persistently sluggish economy.

Read More..

Brown says Prop. 30 not a panacea, thanks Cal State for support

Gov. Jerry Brown said Tuesday his tax hike measure wasn't a "panacea" to the state's budget problems and that more effort will be needed to manage the state's finances.

Speaking to the Cal State Board of Trustees, Brown thanked the board, students and faculty for helping to pass Proposition 30 in last week's election. The measure will raise the state sales tax a quarter-cent for four years and increase the income tax of the state's highest earners for seven years.

The trustees were scheduled to vote Tuesday on a series of proposed "incentive" fees aimed at boosting graduation rates and freeing classroom space. But the proposal was pulled before Tuesday's meeting.

Brown acknowledged those needs and told the board that "there are tough decisions ahead."

But he added: "Keeping down fees means keeping down costs. It also means we have to look for more revenues to invest in higher education."

He said Sacramento needs to "find ways to collaborate" and said he would look to "lower adversarial relationships."

Proposition 30, which will allow Cal State to reimburse students for a $249 tuition hike that went into effect this fall, was a vote of confidence in higher education and should signal an effort to find new ways to do business, Brown said.

"That means getting out of your comfort zone, whether trustees, faculty or students," he said.

In opening remarks, board Chairman A. Robert Linscheid said he removed the fee proposal from the agenda to study its consequences further, in light of Proposition 30 passing and after hearing objections from students and others.

"The mission is still important, to free up space for other students, but there may be other avenues to get to that goal," Linscheid said.

Many students and faculty criticized the proposal as a "punishment fee," contending it would create more obstacles for students and set up a hierarchy favoring those who could pay. Students had planned to protest the fee increases.

The proposed fees, which would have taken effect next fall, include:

--A per-unit supplement of $372 for "super seniors" who have accumulated 160 semester units.

--A $91 per-unit fee to repeat a class.

--A $182 per-unit fee for any course load of 18 units or more.

Read More..

Verizon and HTC’s latest twist: The $199 Droid DNA

Verizon and HTC unveiled a new device that the two hope will appeal to customers during the holiday season, while helping to reverse HTC’s floundering fortunes.

The phone, the Droid DNA, sports a 5-inch screen, putting it more in the “phablet” category with Samsung‘s Galaxy Note. It runs on Android 4.1.1 Jelly Bean and includes a boatload of powerful features, including a Super LCD 3 display with 440 pixels per inch, capable of playing 1080p HD video.

HTC noted the screen rivals traditional HDTVs, while the pixel density is among the highest available on any smartphone. The iPhone 5′s Retina display, for example, is 326 pixels per inch.

The device runs on a quad-core, 1.5Ghz Snapdragon processor from Qualcomm, with 4G LTE integrated on the same piece of silicon as the application processor. Having one chip instead of two improves battery life.

The phone is also capable of wireless charging and full HD video chat. The device has an 8-megapixel rear-facing camera and a 2.1-megapixel camera in the front. HTC noted its phone features HTC ImageSense and HTC ImageChip to create faster image processing and better quality photos, as well as a quick-launch camera option.

The Droid DNA also has Beats audio and two amplifiers, one for headphone and one for speaker. And it’s equipped with near-field communications technology to share music and other content by tapping other NFC-enabled devices.

Droid DNA goes on sale on November 21 for $ 199.99 with a two-year contract. Pre-sales begin today. The phone is available exclusively through Verizon.

The hefty specs should appeal to customers looking for alternatives to the latest gadgets from Samsung and Apple during the holiday season. For HTC, it’s pretty important that they do.

The Taiwanese handset maker really needs a hit phone. Previously the darling of the smartphone world, HTC has been having a tough time lately. Samsung and Apple are dominating the industry’s profits and market share, leaving little for HTC, Motorola, Nokia, and other handset vendors. HTC also has faced litigation, though it reached a settlement with Apple a few days ago.

The company has said it plans to go bolder with its messaging to consumers and the media, relying less on joint marketing campaigns with the carriers and standing more independently to tell the HTC story. It also has said it would try to generate buzz through social media and by seeing out influential celebrities and “superfans” for endorsements. So far, it’s unclear whether such steps are paying off.

Related stories:

Wireless News Headlines – Yahoo! News

Read More..

Day-Lewis heeded inner ear to find Lincoln's voice

LOS ANGELES (AP) — A towering figure such as Abraham Lincoln, who stood 6 feet 4 and was one of history's master orators, must have had a booming voice to match, right? Not in Daniel Day-Lewis' interpretation.

Day-Lewis, who plays the 16th president in Steven Spielberg's epic film biography "Lincoln," which goes into wide release this weekend, settled on a higher, softer voice, saying it's more true to descriptions of how the man actually spoke.

"There are numerous accounts, contemporary accounts, of his speaking voice. They tend to imply that it was fairly high, in a high register, which I believe allowed him to reach greater numbers of people when he was speaking publicly," Day-Lewis said in an interview. "Because the higher registers tend to reach farther than the lower tones, so that would have been useful to him."

"Lincoln" is just the fifth film in the last 15 years for Day-Lewis, a two-time Academy Award winner for best actor ("My Left Foot" and "There Will Be Blood"). Much of his pickiness stems from a need to understand characters intimately enough to feel that he's actually living out their experiences.

The soft, reedy voice of his Lincoln grew out of that preparation.

"I don't separate vocal work, and I don't dismember a character into its component parts and then kind of bolt it all together, and off you go," Day-Lewis said. "I tend to try and allow things to happen slowly, over a long period of time. As I feel I'm growing into a sense of that life, if I'm lucky, I begin to hear a voice.

"And I don't mean in a supernatural sense. I begin to hear the sound of a voice, and if I like the sound of that, I live with that for a while in my mind's ear, whatever one might call it, my inner ear, and then I set about trying to reproduce that."

Lincoln himself likely learned to use his voice to his advantage depending on the situation, Day-Lewis said.

"He was a supreme politician. I've no doubt in my mind that when you think of all the influences in his life, from his childhood in Kentucky and Indiana and a good part of his younger life in southern Illinois, that the sounds of all those regions would have come together in him somehow.

"And I feel that he probably learned how to play with his voice in public and use it in certain ways in certain places and in certain other ways in other places. Especially in the manner in which he expressed himself. I think, I've no doubt that he was conscious enough of his image."

Read More..

The Neediest Cases: Single Mother Battling Breast Cancer Takes Strength From Her Children

She had not expected her fingernails to feel as if they had been hollowed out.

Suzanne DeChillo/The New York Times

Josmery Batista, 34, with her children: Analisse, 4, left; Erika, 10; and Jeremy, 1. Ms. Batista is receiving chemotherapy treatment.

For the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.

Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.

Josmery Batista, 34, had braced herself for many of the side effects that would result from her palliative chemotherapy treatment. She knew about the dizzy spells, the head pain and the body aches, just as she knew about the fatigue, which weakens her so much at times that she is unable to bathe her infant son or even to hold him.

But when her nails became so brittle that she could not properly wash dishes, a development as alarming as it was discouraging, she sought comfort and reassurance from one of her new friends walking the same path.

Ms. Batista, a single mother of three, knows that she is blessed to have found a support group of others, like her, who are undergoing cancer treatment, and she gains additional courage from the memory of friends who did not survive. She also knows how blessed she is to have sisters to lean on for help.

But friends and siblings alone are not what fortify her will to survive.

“My children give me the strength to fight this illness, this disease,” Ms. Batista said. “My support system has been a great help. But what keeps me going is my kids.”

Five months into her pregnancy with her son, Jeremy Tavarez, now 1, Ms. Batista began to experience excruciating pain from her neck to her midsection. She had no idea what was wrong. When she sought help, examinations ruled out ailments like arthritis or liver problems. Tests for cancer would have involved radiation and, thus, potential harm to the baby, so Ms. Batista waited until after the birth to be tested further. Last November, one month after her son’s birth, Ms. Batista was told she had Stage 4 breast cancer. The disease has since spread to her liver and her bones.

She receives chemotherapy treatment every 21 days at Elmhurst Hospital Center, near her home in Flushing, Queens, and is then required to take pills for the next 14 days. The side effects of that medication are the cause of much of her discomfort.

Petite yet resilient, Ms. Batista is driven to take Tylenol instead of a nap. She will weather the lethargy and endure the pain to ensure that her son and her other two children, Erika, 10, and Analisse Tavarez, 4, can have as normal a life as possible. Whenever she is able to, she plays with her children, accompanies them to school or helps them with homework.

“Even though she’s battling every day, going to the hospital and stuff like that, she doesn’t let her kids fully know, and they’re happy,” said Ms. Batista’s sister Dalisa Batista, who assists with child care.

Josmery Batista, who came to the United States from the Dominican Republic in 1998, had been employed for 13 years as a jewelry sample maker in Manhattan. She has been unable to work since her treatment began and is living month to month as a result.

She receives $450 a month in food stamps and collects $868 monthly in workers’ compensation, a payment that is set to expire in January. Ms. Batista says her children’s father also provides $400 a month in child support. Her rent is $1,100 a month.

With her finances tight, Catholic Charities Brooklyn and Queens, one of the agencies supported by The New York Times Neediest Cases Fund, granted Ms. Batista $500 from the fund in September to cover five weeks of child care when she is at treatment and her relatives are unavailable. The agency also supplies the family with food from the Queens North Community Center pantry, which is affiliated with Catholic Charities.

“She stays very strong,” said Dalisa, who describes her sister as an inspiration. “I never really see her crying at home. She doesn’t cry in front of the kids.” Dalisa added that her niece Erika, who is still too young to fully grasp the severity of her mother’s situation, boosted morale with a child’s innocent honesty.

“Her daughter always gives her strength because she always tells her, ‘You’re beautiful with no hair,’ ” Dalisa said. “She tells her stuff like ‘I don’t want you to wear wigs. You’re beautiful to me.’ ”

The future holds many questions, but estimates are that Josmery Batista will be receiving treatments for at least the next six months. She says she will continue to do what she has been doing all along, basking in the love of those around her.

“I live my life as normal as possible, and I push myself to do the things I need to do,” Ms. Batista said. “I’m not going to allow the illness to dictate how I’m going to carry my life and what I need to do as a mother.”

Read More..

Medicare paid $1.5 billion in improper therapy claims in 2009

A new federal report says skilled-nursing facilities overbilled Medicare for therapy and other care, costing taxpayers $1.5 billion in 2009. (Wally Skalij/Los Angeles Times)

By Chad Terhune

November 13, 2012, 10:48 a.m.

Medicare paid $1.5 billion in improper claims for skilled nursing care in 2009, federal investigators found.

The inspector general of the Department of Health and Human Services said Tuesday that 25% of all Medicare claims submitted by skilled nursing facilities had errors and the majority of those bills were "upcoded" for ultra-high therapy that wasn't necessary.

About 15,000 nursing homes and other facilities provide this physical therapy, rehabilitation and other care to patients, often after a hospital stay. Medicare generally covers these services for up to 100 days related to an illness.

The inspector general's office urged Medicare to increase its scrutiny of these skilled-nursing claims, particularly in light of previous reports identifying billing problems in this area.

Medicare officials agreed with the recommendations and said it has already taken steps to reduce inaccurate and fraudulent billing.

The $1.5 billion in improper payments represented nearly 6% of the $26.9 billion paid overall to skilled-nursing facilities in 2009, according to the report. Medicare's overall payouts for these services rose to $32.2 billion in fiscal year 2012.

In this latest report, the inspector general said in one case the skilled-nursing facility provided the highest level of therapy even though the physician refused to authorize it. In another case, speech therapy was billed for even though it wasn't medically necessary or given.

The Obama administration has tried to crack down on fraud and abuse in Medicare in hopes of recovering some of the estimated $60 billion lost annually in the federal program. The government's enforcement efforts have taken on added importance at a time of rising entitlement spending and mounting federal debt.

ALSO:

California speeds revamp of health insurance market

Blue Shield's union ties raise concerns about conflicts

Government settlement points up Medicare's vulnerabilities

Follow Chad Terhune on Twitter

Read More..

U.S. to become world's largest oil producer before 2020, IEA says

This post has been corrected. See below for details.

The U.S. will become the world’s top producer of oil within five years, a net exporter of the fuel around 2030 and nearly self-sufficient in energy by 2035, according to a new report from the International Energy Agency.

It’s a bold set of predictions for a nation that currently imports some 20% of its energy needs.

Recently, however, an “energy renaissance” in the U.S. has caused a boost in oil, shale gas and bio-energy production due to new technologies such as hydraulic fracturing, or fracking. Fuel efficiency has improved in the transportation sector. The clean energy industry has seen an influx of solar and wind efforts.

Quiz: Why are California gas prices so high? 

By 2015, U.S. oil production is expected to rise to 10 million barrels per day before increasing to 11.1 million bpd by 2020, overtaking second-place Russia and front-runner Saudi Arabia. The U.S. will export more oil than it brings into the country in 2030.

Around the same time, however, Saudi Arabia will be producing some 11.4 million bpd of oil, outpacing the 10.2 million from the U.S. In 2035, U.S. production will slip to 9.2 million bpd, far behind the Middle Eastern nation’s 12.3 million bpd. Iraq will exceed Russia to become the world’s second largest oil exporter.

At that point, real oil prices will reach $125 a barrel. By then, however, the U.S. won’t be relying much on foreign energy, according to the IEA’s World Energy Outlook.

Globally, the energy economy will undergo a “sea change,” according to the report, with nearly 90% of Middle Eastern oil exports redirecting toward Asia.

“No country is an energy ‘island,’ and the interactions between different fuels, markets and prices are intensifying,” according to the report.

And what of energy efficiency efforts?

Fossil fuels, which enjoyed a 30% jump in subsidies last year to $523 billion worldwide, will still surpass renewable energy sources, according to IEA. But so-called green power will become the world’s second-largest form of generation within three years and will threaten coal’s supremacy by 2035.

That progression, however, “hinges critically on continued subsidies” for wind, solar and bio-fuel technologies, which last year amounted to some $88 billion and needs to reach $4.8 trillion through 2035, according to IEA.

Even then, however, “the world is still failing to put the global energy system onto a more sustainable path,” according to the report.

Quiz: Test your knowledge of business news

Global energy demand will boom by more than a third by 2035, rising to 99.7 million barrels a day from 87.4 million last year. China’s demand will rise 60% over the period; India’s will more than double. Demand in developed countries will increase just 3%, with the desire for oil and coal losing share in the overall energy mix.

Energy-related carbon dioxide emissions will creep up, causing a long-term average temperature increase of 3.6 degrees Celsius. Energy production will continue to suck at the world’s water resources – it already accounts for 15% of total water use.

[10:15 a.m.: A previous version of this post gave an incorrect conversion of the temperature increase in Fahrenheit. The correct Fahrenheit increase is 6.5 degrees.]

ALSO:

IMF warns of 'alarmingly high' risk of deep global slowdown

Like Feinstein, Boxer urges federal inqury into high gas prices

Iraq oil output will nearly triple by 2035, says 'landmark study'

Read More..

Judge halves slander verdict won by casino mogul

LOS ANGELES (AP) — A judge has slashed a damage verdict favoring casino mogul Steve Wynn in a slander case against "Girls Gone Wild" founder Joe Francis.

Superior Court Judge Joanne O'Donnell issued the ruling Friday invalidating certain claims and trimming the damage amount from $40 million to $19 million.

The move comes after lawyers for Francis argued that O'Donnell erred when she allowed jurors to consider allegations that Francis slandered Wynn in comments made to TV's "Good Morning America" on the eve of trial.

The judge also says Wynn isn't entitled to punitive damages on the claims, which accounted for $20 million of the verdict.

A call to Wynn's attorney Barry Langberg was not immediately returned.

Read More..

Personal Best: Quitting Smoking for Good

Few smokers would claim that it’s easy to quit. The addiction to nicotine is strong and repeatedly reinforced by circumstances that prompt smokers to light up.

Yet the millions who have successfully quit are proof that a smoke-free life is achievable, even by those who have been regular, even heavy, smokers for decades.

Today, 19 percent of American adults smoke, down from more than 42 percent half a century ago, when Luther Terry, the United States surgeon general, formed a committee to produce the first official report on the health effects of smoking. Ever-increasing restrictions on where people can smoke have helped to swell the ranks of former smokers.

Now, however, as we approach the American Cancer Society’s 37th Great American Smokeout on Thursday, the decline in adult smoking has stalled despite the economic downturn and the soaring price of cigarettes.

Currently, 45 million Americans are regular smokers who, if they remain smokers, can on average expect to live 10 fewer years. Half will die of a tobacco-related disease, and many others will suffer for years with smoking-caused illness. Smoking adds $96 billion to the annual cost of medical care in this country, Dr. Nancy A. Rigotti wrote in The Journal of the American Medical Association last month. Even as some adult smokers quit, their ranks are being swelled by the 800,000 teenagers who become regular smokers each year and by young adults who, through advertising and giveaways, are now the prime targets of the tobacco industry.

People ages 18 to 25 now have the nation’s highest smoking rate: 40 percent. I had to hold my breath the other day as dozens of 20-somethings streamed out of art gallery openings and lighted up. Do they not know how easy it is to get hooked on nicotine and how challenging it can be to escape this addiction?

Challenging, yes, but by no means impossible. On the Web you can download a “Guide to Quitting Smoking,” with detailed descriptions of all the tools and tips to help you become an ex-smoker once and for all.

Or consult the new book by Dr. Richard Brunswick, a retired family physician in Northampton, Mass., who says he’s helped hundreds of people escape the clutches of nicotine and smoking. (The printable parts of the book’s provocative title are “Can’t Quit? You Can Stop Smoking.”)

“There is no magic pill or formula for beating back nicotine addiction,” Dr. Brunswick said. “However, with a better understanding of why you smoke and the different tools you can use to control the urge to light up, you can stop being a slave to your cigarettes.”

Addiction and Withdrawal

Nicotine beats a direct path to the brain, where it provides both relaxation and a small energy boost. But few smokers realize that the stress and lethargy they are trying to relieve are a result of nicotine withdrawal, not some underlying distress. Break the addiction, and the ill feelings are likely to dissipate.

Physical withdrawal from nicotine is short-lived. Four days without it and the worst is over, with remaining symptoms gone within a month, Dr. Brunswick said. But emotional and circumstantial tugs to smoke can last much longer.

Depending on when and why you smoke, cues can include needing a break from work, having to focus on a challenging task, drinking coffee or alcohol, being with other people who smoke or in places you associate with smoking, finishing a meal or sexual activity, and feeling depressed or upset.

To break such links, you must first identify them and then replace them with other activities, like taking a walk, chewing sugar-free gum or taking deep breaths. These can help you control cravings until the urge passes.

If you’ve failed at quitting before, try to identify what went wrong and do things differently this time, Dr. Brunswick suggests. Most smokers need several attempts before they can become permanent ex-smokers.

Perhaps most important is to be sure you are serious about quitting; if not, wait until you are. Motivation is half the battle. Also, should you slip and have a cigarette after days or weeks of not smoking, don’t assume you’ve failed and give up. Just go right back to not smoking.

Aids for Quitting

Many if not most smokers need two kinds of assistance to become lasting ex-smokers: psychological support and medicinal aids. Only about 4 percent to 7 percent of people are able to quit smoking on any given attempt without help, the cancer society says.

All 50 states and the District of Columbia have free telephone-based support programs that connect would-be quitters to trained counselors. Together, you can plan a stop-smoking method that suits your smoking pattern and helps you avoid common pitfalls.

Online support groups and Nicotine Anonymous can help as well. To find a group, ask a local hospital or call the cancer society at (800) 227-2345. Consider telling relatives and friends about your intention to quit, and plan to spend time in smoke-free settings.

More than a dozen treatments can help you break the physical addiction to tobacco. Most popular is nicotine replacement therapy, sold both with and without a prescription. The Food and Drug Administration has approved five types: nicotine patches of varying strengths, gums, sprays, inhalers and lozenges that can curb withdrawal symptoms and help you gradually reduce your dependence on nicotine.

Two prescription drugs are also effective: an extended-release form of the antidepressant bupropion (Zyban or Wellbutrin), which reduces nicotine cravings, and varenicline (Chantix), which blocks nicotine receptors in the brain, reducing both the pleasurable effects of smoking and the symptoms of nicotine withdrawal. Combining a nicotine replacement with one of these drugs is often more effective than either approach alone.

Other suggested techniques, like hypnosis and acupuncture, have helped some people quit but lack strong proof of their effectiveness. Tobacco lozenges and pouches and nicotine lollipops and lip balms lack evidence as quitting aids, and no clinical trials have been published showing that electronic cigarettes can help people quit.

The cancer society suggests picking a “quit day”; ridding your home, car and workplace of smoking paraphernalia; choosing a stop-smoking plan, and stocking up on whatever aids you may need.

On the chosen day, keep active; drink lots of water and juices; use a nicotine replacement; change your routine if possible; and avoid alcohol, situations you associate with smoking and people who are smoking.

Read More..

Google announces $199 Acer laptop

Google has announced yet another computer for its line of Chromebooks, this one built by Acer with a sticker price of $199.

The Acer C7 Chromebook will be available for purchase online at Google Play and BestBuy.com on Tuesday. You'll also be able to pick one up at select Best Buy stores starting this week. 

The C7 features an 11.6-inch display with an 1,366 by 768 pixel resolution. The computer runs on an Intel Core processor and includes 32 gigabytes of storage. The Acer C7 is 1 inch thick and weighs 3 pounds.

It comes with an HD camera, three USB 2.0 ports, an HDMI out as well as a VGA port. The one glaring weakness is its short 3.5-hour battery life.

Google's Chromebook computers are built on the concept of having little to no internal storage in order to sell for low prices. Instead, Google gives people who purchase Chromebooks 100 GB of storage in the cloud, which they can use for two years.

Chromebooks aren't capable of installing programs such as Photoshop, but they can connect to most websites, such as Pandora, Hulu and the Web apps Google offers, including Google Docs.

The announcement of the Acer C7 Chromebook comes as a bit of a surprise as Google announced the $249 Samsung Chromebook just one month ago.

ALSO:

RIM sets Jan. 30 BlackBerry 10 launch event

Review: Microsoft Surface shines but lacks apps [Video]

Psy the baby whisperer? Babies love 'Gangnam Style' too

Read More..