Monday, March 12, 2012

No deal, so government shutdown looms

WASHINGTON — House Speaker John Boehner said Tuesday that private talks with President Obama failed to produce a deal to avoid a government shutdown and warned that the House Republicans "will not be put in a box" of accepting options they refuse to endorse.

Short of an agreement to cover the rest of the budget year, Boehner said House Republicans want a stopgap bill that would keep the government running for one more week and slash another $12 billion in spending.

The White House has shown no interest in that approach.

Friday is the deadline to avoid a shutdown. Boehner's account of the meeting between Obama and top lawmakers of both parties, released in a statement from his office, did nothing to suggest the White House and Congress were closer to reaching a deal.

Boehner again insisted the parties have not even agreed on a target for spending cuts. The White House disputes that.

As the meeting was taking place, White House press secretary Jay Carney had expressed confidence that a deal could still be reached this week as long all sides were reasonable.

Yet some public frustration also seeped into the White House's words.

"The fact is that the president is calling this meeting in part because Congress can't get its work done," Carney said as Obama met with Boehner, Senate Majority Leader Harry Reid and the top House appropriators from both parties.

The White House has begun advising government agencies on the proper steps in preparation for a shutdown of the government.

Boehner has already orchestrated action by Congress to pass a pair of stopgap bills, so far cutting $10 billion from an estimated $1.2 trillion budget to fund the day-to-day operations of government through Sept. 30.

Yet broader negotiations have stalled on legislation blending immediate spending cuts with the money required to run federal agencies through the end of September.

Democrats are accusing the GOP of pressing harmful spending cuts and attaching a social policy agenda to the must-pass spending bill. Boehner counters that the White House is pressing gimmicky budget cuts.

Boehner's latest short-term bill includes $12 billion in immediate spending cuts and enough money to operate the Pentagon through the end of September.

AP

3 NATO Troops Killed in Afghanistan

KABUL, Afghanistan - Three NATO troops died Wednesday when their vehicle was struck by a roadside bomb, while gunmen opened fire on people praying in a mosque in eastern Afghanistan, killing three and wounding four others, officials said.

Assailants also ambushed a convoy belonging to U.N.'s Office for Project Services on the main Kabul-Kandahar highway, killing two Afghan guards, wounding another and damaging two vehicles, said Jailani Khan, highway police chief for Zabul province.

The three NATO troops died when their vehicle was struck by an improvised explosive device in the country's volatile south, a NATO statement said. Their nationalities were not released.

Also in the south, police clashed with insurgents and retook control of Miya Nishin district in Kandahar late Tuesday, a day after militants had overrun it, said Esmatullah Alizai, provincial police chief.

However, hours later, Alizai said his forces lost Ghorak district in the same province to the militants.

Kandahar borders mountainous Uruzgan province, where fierce fighting since Saturday between Taliban militants and Afghan and NATO forces have reportedly left more than 100 people dead, including dozens of civilians.

The mosque attack occurred in Ismail Kheil, a village in neighboring Khost province on Tuesday evening. Two unidentified men entered the building and fatally shot three people while wounding four others, said Wazir Pacha, a provincial police spokesman.

The unidentified assailants fled, and the motive for the shooting remained unknown, Pacha said.

NATO said it faced a seasonal surge in militant operations, but dismissed recent suicide and bomb attacks as "militarily insignificant."

A bomb killed 35 people, most of them police trainers, in a bus in the capital, Kabul, on Sunday. In the eastern city of Jalalabad, Nangarhar Gov. Gul Agha Sherzoi said Wednesday that a Pakistani and two Afghans were arrested for allegedly planning suicide attacks against him.

"We find ourselves in the midst of the so-called fighting season, when what we had predicted is taking place: an increase in suicide bombings and more desperate attempts by the enemies of peace and stability to present the illusion that they are stronger than they are," said Lt. Col. Maria Carl, spokeswoman for NATO's International Security Assistance Force.

Violence has claimed about 2,400 lives, including civilians, militants and troops, so far this year, according to an Associated Press tally of figures from Western military and Afghan officials.

Aid agencies warned Tuesday that goodwill toward foreign forces has faded since the fall of the Taliban five years ago because of airstrikes and botched raids by U.S. and NATO troops.

The ACBAR umbrella group of 94 foreign and Afghan aid agencies said foreign forces had killed at least 230 Afghan civilians this year, including 60 women and children.

AP's tally puts the figure through June 17 at 152, while another 169 were killed by insurgents.

It was not clear how the umbrella group - which includes Oxfam, Save the Children and CARE International - arrived at its higher total.

Karzai has pleaded repeatedly for international forces to coordinate more closely with Afghan authorities in order to protect civilians near military front lines.

The aid agencies laid much of the blame on U.S. actions, alleging that indiscriminate use of force had resulted in the death of innocents.

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Associated Press Writer Amir Shah contributed to this report.

Home sales suffer 6.7% July tumble

The housing market stumbled in July as sales of existing homesfell 6.7 percent - but only 3.3 percent in the Midwest - the NationalAssociation of Realtors said Monday.

The July drop broke a five-month winning streak in home resales.They fell to a seasonally adjusted annual rate of 3.35 million unitsin July, down from their robust rate of 3.59 million in June and 3.54million in May, the real estate trade group said.

The Midwest rate dropped 3.3 percent to 890,000 units.

Some economists said the sluggish economic recovery is dullingdemand and the housing market will need stronger over-all economicgrowth before displaying new vigor.

"The rise in consumer confidence after the gulf war has playedout. Declining interest rates and pent-up demand is more or lessover. So we'll see more of this until we get more positive growth,"said Mark Zandi, analyst at the West Chester, Pa., consulting firmRegional Financial Associates.

Falling mortgage rates this month could help revive sales. Bylast week, 30-year rates were down to 9.17 percent nationwide, afour-year low. "Lower interest rates should help sales in August andSeptember," said Zandi.

Despite the July decline, nationwide sales were 0.9 percentabove the level posted one year ago, just before the recession began,and higher than the annual rate for the first four months of thisyear.

Realtors President Harley Rouda said this is a strong indicatorthat the housing industry has firmed in many areas. "The market isholding strong," he said.

Richard Peach, economist at the Mortgage Bankers Association ofAmerica, said it was unrealistic to expect resales to continue attheir May-June pace, which was similar to the peaks seen in 1986 and1987.

"Now we are back down to something that can be sustained," Peachsaid.

The realtors' report showed other signs the market is firming.The national median price of an existing home sold in July rose to$103,000, or 1 percent higher than a month earlier and 5 percentabove the year-ago median price of $98,100, NAR said.

TECH TIPS

2004-2005 Mercury Mountaineer

Bulletin: Rattling noise-right front fender while driving

ACCORDING TO TSB 04-25-5, some 2004-2005 Mountaineers built through 9/27/2004 at the St. Louis assembly plant may exhibit a rattling noise from the right front upper fender area while driving. This condition may be due to insufficient clearance between the right hood hinge and the right inner fender lip.

Check and correct clearance using the following service procedure:

NOTE: This repair procedure involves St. Louis built vehicles only. Check the 11th character in the vehicle identification number before proceeding. "Z" designates a St. Louis built vehicle.

1. Open hood and insert a piece of paper between the right hood hinge bolt and the right inner fender lip.

2. Close the hood and see if the paper moves freely.

3. If the paper moves freely, this is not the source of the noise. Continue with normal diagnosis.

4. If the paper does not move freely, proceed to step 5.

5. Bend the right inner fender lip inboard (towards the engine) 0.08-0.12-in. (2-3mm) to increase the clearance between the hood hinge bolt and the fender lip (Fig. 1).

NOTE: Do not bend the lip too far. The lip can contact the hood shock if bent too far.

2004-2005 Mercury Mountaineer; 2000-2004 Ford Crown Victoria, Taurus, Expedition, F450; Ranger; 2000-2005 Ford Explorer, 2000-2004 Lincoln LS, Town Car, Navigator; 2000-2004 Mercury Grand Marquis, Sable; 2000-2005 Mercury Mountaineer

Bulletin: Aluminum corrosion service tip

ACCORDING TO TSB 40-25-1, some vehicles may exhibit a bubbling or blistering under the paint on aluminum body parts. This is due to iron contamination of the aluminum panel.

This TSB provides service tips and procedures, outlining methods to properly prepare and protect aluminum body parts from cross contamination.

(Ford's Scientific Research Laboratory has performed a number of tests on vehicle body parts returned for corrosion related concerns. Testing has revealed that the aluminum corrosion was caused by iron particles working their way into the aluminum body part, prior to it being painted.)

When repairing a vehicle for corrosion or collision damage, it is essential that extreme care be taken to cover and protect all aluminum parts to prevent cross metal contamination. Areas in a shop where metal work is performed should be sectioned off, using at the very least curtain walls, to prevent metal dust migration. Cross contamination can also occur through the use of metalworking tools (hammers, dollys, picks, grinding wheels, etc.). Tools used for aluminum repairs should be kept separate and not used to repair other metals. Wire brushed used on aluminum should be made of stainless steel.

NOTE: This procedure should only be used on non-perforated metal. Review warranty and policy manual for vehicle with perforated metal. Always read entire procedure before proceeding.

1. Corrosion should be removed by blasting. Use an aggressive blasting material, such as acrylic (salt grain size). Use a DA sander with 180-grit paper backed abrasive. Only sand and featheredge the damaged area.

2. Mix and apply Ford approved epoxy primer, per the manufacturer's label instructions. Bake at 140�F (60�C), or use an infrared lamp for curing. If necessary, mix and apply two-part polyester filler to a slight over crown. Allow polyester filler to cure 20-30 minutes, or mix and apply spray polyester filler two-three coats as necessary. Allow to cure per manufacturer's label instructions.

3. Hand-sand the repair area with 80-grit sandpaper to remove excess filler. Finish-sand the repair area with 400-grit sandpaper.

4. Mix and apply Ford approved primer/surfacer per manufacturer's label instructions. Bake at 140�F (60�C) or use infrared lamp for curing.

5. Sand the primer/surfacer with 400-600-grit to level the surface.

6. The next two steps are wet-on-wet. Mix and apply to hiding Ford recommended basecoat material per manufacturer's label instructions. Allow to flash.

7. Mix and apply two coats (2 mils minimum) of Ford approved clearcoat per manufacturer's label instructions. Allow flash time. Finish bake at 140�F (60�C).

Singapore bank DBS Group says 4Q profit falls 18 percent on debt portfolio write-downs

DBS Group Holdings Ltd. of Singapore, Southeast Asia's largest bank by market capitalization, said Friday that its profit in the fourth quarter fell 18 percent, partly because of further write-downs in its debt-related portfolio.

Results for the quarter were also dragged down by a charge related to its stake in struggling Thai lender TMB Bank PCL, it said.

DBS reported a net profit of 491 million Singapore dollars (US$346 million; euro237 million), or S$1.37 (US$0.96; euro0.66) a share, for the three months ending Dec. 31. In the same quarter of 2006, its profit was S$596 million, or S$1.44 a share.

The bank said it made additional allowances for S$1.21 billion (US$853 million; euro583 million) of collateralized debt obligations, and reported charges of S$170 million (US$120 million; euro82 million) in the quarter for the S$267 (US$188 million; euro129 million) of CDOs with some exposure to U.S. subprime mortgages.

The write-down brings its cumulative losses for such CDOs to S$240 million, about 90 percent of the total.

For the remaining S$944 million (US$666 million; euro455 million) of investment CDOs, S$30 million (US$21 million; euro14 million) was taken as general allowances during the quarter "as a prudential measure," DBS said in a statement.

In addition, the bank recorded a charge of S$67 million (US$47 million; euro32 million) for its 6.8 percent stake in TMB Bank to reflect current market valuation for the investment.

"With the additional allowances we took this quarter, we are well covered for risks associated with U.S. subprime assets," DBS Chairman Koh Boon Hwee said in the statement. He remains "cautiously optimistic about the year ahead," he said.

The net quarterly profit was lower than the S$557 million estimated by a Dow Jones Newswires poll of analysts.

"DBS took a more aggressive approach to the write-down of CDOs, and it makes sense, since it will remove this overhang," said Kim Eng Securities analyst Pauline Lee.

Net interest income for the quarter was S$1.06 billion (US$748 million; euro511 million), up 14 percent from S$932 million. Noninterest income was S$474 million (US$334 million; euro228 million), up 1 percent from S$468 million reported a year earlier.

DBS said it will pay a dividend of 20 Singapore cents (14 U.S. cents; 10 euro cents) a share for the fourth quarter, bringing total dividends for the year to 80 cents (56 U.S. cents; 38 euro cents), up from 71 cents in 2006.

DBS shares were up 2.2 percent in early afternoon trade in Singapore at S$17.68.

Earlier this week, DBS named Richard Stanley, Citigroup Inc.'s top China manager, as its new chief executive effective May 1.

Let's draw the right lessons ; It's a question that's taxing millions of people in this country: how will the meltdown on Wall Street impact India?

It's a question that's taxing millions of people in this country:how will the meltdown on Wall Street impact India? The short answerto that is: only peripherally those employed in the India offices ofthe major Wall Street firms will face some turbulence; the stockmarkets will gyrate some more; television and print journalists willspend many thousands of man-hours analysing the whys and thewherefores of the issue; and politicians and intellectuals of allhues will congratulate themselves for having kept India insulatedfrom the fallout of what is definitely the worst global financialcrisis since the Crash of 1929.

However, the crisis in the US, and some other parts of the West,does have important lessons for us; and it's important that we drawthe right ones. We have heard from the policymakers, includingFinance Minister P. Chidambaram, that Indian markets are safer thanthose in the US and most others. Is this by design? Or default? Thedistinction is important to ensure that we remain unscathed infuture, too.

One of the reasons for this relative safety is that we are notyet as globalised as many other countries are. Expectedly,politicians on the Left wing of the Indian polity and their fellowtravellers are tom-tomming this isolation as an achievement .Tragically, even centrist politicians are buying this argument.There's a very real danger that India will end up drawing the wronglessons from the crisis.

The fact is that the Indian financial sector is nowhere near asreformed as it should be. This results in suboptimal allocation ofresources and high operating costs. To celebrate this non-achievement on the reforms front is to worship at the altar of avery mediocre status quo, as the opportunity cost of not reformingis infinitely higher than the actual losses that may indirectlyresult from reforms. Tragically though, the bigger opportunity lossis less visible than that smaller actual loss that individual firmsmay suffer.

It must also be noted here that financial market reforms like thepension, insurance and banking sector reforms that India has beendragging its feet on invariably result in greater economicactivity, and the multiplier effect lifts the living standards ofindividuals not even remotely connected to the sector. Example: aboost to the insurance sector will make more funds available forinfrastructure projects, which will benefit everyone from the tycoonat the helm of the company implementing the project, to thosesections of society whose lives become easier as a result of suchinfrastructure, to daily labourers who get assured work for longerperiods of time.

Interestingly, parallels are being drawn with the East AsianCrisis of a decade ago. There, too, India's relative isolationstopped the contagion from washing up on our shores. But here, too,we drew the wrong lessons. In every case, then and now, thecountries affected had far higher standards of living than India's.So, the choice seems to be between remaining isolated and poor onthe one hand and being connected with the rest of the world,occasionally facing an ebbing tide that lowers all boats, and thenrising together again.

Distinction also needs to be made between institutions andindividuals... Right institutions or instruments in the hands ofwrong individuals can lead to disastrous consequences. The USsituation is partly explained by this. At the same time, the crisisalso proves that regulation as distinct from the micro-managementthat it often degenerates into in India has a lofty place in theworld's, and India's, financial market infrastructure. It isnobody's case that Indian markets should be reformed to benefit theinvestment bankers and other moneybags who so visibly gain from suchinitiatives. We must reform our financial infrastructure so that thehousewife in some small town, the labourer at a road-building siteand the vegetable seller at the street corner can also look forwardto a better tomorrow.

Children of terrorist victims bond at summer camp

MIDDLEBURG, Virginia (AP) — Jason Vadhan didn't know anyone when he arrived at a summer camp for young people who, like him, have lost a loved one in a terrorist attack. But it didn't take long for him to form profound relationships.

Vadhan, whose grandmother was on United Flight 93, is one of the 77 participants in Project Common Bond, a summer camp that brings together relatives of Sept. 11 victims as well as youths from around the world who have been scarred by terrorism.

When the 18-year-old Vadhan, of Atlantic Beach, New York, finished a roundtable and interviews with reporters last week, other campers gathered in an adjoining room and burst into applause when he walked in.

"I came here not knowing one person," Vadhan said, "and when that door opened and there were people cheering for us, I walked right up to a kid I met three days ago, and I gave him a hug and I cried."

Project Common Bond is organized by Tuesday's Children, a nonprofit dedicated to serving the families of Sept. 11 victims. But the camp has, over the years, taken on a more international focus. This year's eight-day camp — held on the campus of a girls' private school about 40 miles (65 kilometers) west of Washington — included participants from eight countries, including, for the first time, Russia and Sri Lanka.

Many of the campers, who range in age from 15 to 20, return each year for the friendships, the sense of community and the shared experiences. Their lives are shaped by extraordinary events, but at Project Common Bond, they feel normal.

"It's so simple here," said Julie Griffin, 19, whose father was killed on Sept. 11. "Everybody just gets it."

Losing a relative to terrorism is different because the tragedy plays out in public, said Fran Furman, director of counseling at Tuesday's Children.

"You're unique in a way that you didn't choose to be unique," Furman said. "It's very, very difficult to feel like you can connect and bond with other teens."

Yet at the camps, close relationships form instantaneously.

"There's that deep connection," said Caitlin Leavey, 20, whose father, a firefighter, died while responding to the World Trade Center attack. "One of my friends doesn't speak English, and I'm still able to communicate with her and make a lasting friendship. I think that's amazing."

In the mornings, campers attend classes and group discussions on peacemaking and conflict resolution. This year's theme was dignity: how terrorists took it away; how they can reclaim it; and how they can encourage it in others.

Some have even chosen conflict resolution as a college major or career path based on their camp experiences.

"I wanted to turn my tragedy into something positive," said Leavey, who's majoring in peace and conflict studies at New York University and wears a necklace with the name of her father's fire company, Ladder 15.

Afternoons at the camp are all about fun, with sports, drama, music, art and dance.

Mijal Tenenbaum wasn't sure fun would be part of the experience when she attended last year's camp in Belfast, Northern Ireland.

"I thought it would be weird, that we would be here and be awkward all the time because there would be this big elephant in the room that we would not talk about," said Tenenbaum, a 17-year-old from Argentina whose father was killed in the 1994 bombing of a Jewish community center in Buenos Aires. But when she arrived, she said, "it felt amazing."

Another gathering for children of Sept. 11 victims, called America's Camp, will be held in two weeks in Hinsdale, Massachusetts. But Project Common Bond is the only one with international participants.

The 10th anniversary of Sept. 11 has not been a major focus of this year's camp, although a few campers are painting a mailbox that will be installed at the 9/11 Memorial at Ground Zero, serving as a symbolic receptacle for messages of peace from around the world.

The killing of terrorist leader Osama bin Laden, on the other hand, has come up frequently. The responses have been wide-ranging, said Monica Meehan McNamara, a family therapist and scholar who designs the curriculum for the camp. Some said they were happy and wanted to celebrate, while others argued another killing wouldn't solve anything.

Marie Clyne, 21, a camp counselor from Lindenhurst, New York, whose mother was killed on Sept. 11, said she felt more relief than joy. "It was kind of like, 'Finally, the bad guy is gone,'" she said. But, she added, "I see both sides."

Sometimes the campers are forced to abandon their preconceptions. Project Common Bond includes both Israelis and Palestinians, and young people who hail from opposite sides of other conflicts.

Richard John Hill, 18, comes from a unionist family in Northern Ireland, and his uncle was killed by the Irish Republican Army. At Project Common Bond, he met someone from a nationalist family whose mother was killed by the IRA.

"That was entirely new to me," he said. "I can't explain how powerful that was."

Organizers hope to hold the camp abroad again next year, possibly in Spain. In the meantime, campers use social media to stay in touch throughout the year, and some even travel to visit one another.

Tenenbaum said she has someone to reach out to whenever she's feeling down.

"It's nice to have friends all over the world who know what I'm talking about," she said.