The Big Squander PAUL KRUGMAN

NYTIMES:

Earlier this week, the inspector general for the Troubled Asset Relief Program, a k a, the bank bailout fund, released his report on the 2008 rescue of the American International Group, the insurer. The gist of the report is that government officials made no serious attempt to extract concessions from bankers, even though these bankers received huge benefits from the rescue. And more than money was lost. By making what was in effect a multibillion-dollar gift to Wall Street, policy makers undermined their own credibility — and put the broader economy at risk.

For the A.I.G. rescue was part of a pattern: Throughout the financial crisis key officials — most notably Timothy Geithner, who was president of the New York Fed in 2008 and is now Treasury secretary — have shied away from doing anything that might rattle Wall Street. And the bitter paradox is that this play-it-safe approach has ended up undermining prospects for economic recovery. For the job of fixing the broken economy is far from done — yet finishing the job has become nearly impossible now that the public has lost faith in the government’s efforts, viewing them as little more than handouts to the people who got us into this mess.

About the A.I.G. affair: During the bubble years, many financial companies created the illusion of financial soundness by buying credit-default swaps from A.I.G. — basically, insurance policies in which A.I.G. promised to make up the difference if borrowers defaulted on their debts. It was an illusion because the insurer didn’t have remotely enough money to make good on its promises if things went bad. And sure enough, things went bad.

So why protect bankers from the consequences of their errors? Well, by the time A.I.G.’s hollowness became apparent, the world financial system was on the edge of collapse and officials judged — probably correctly — that letting A.I.G. go bankrupt would push the financial system over that edge. So A.I.G. was effectively nationalized; its promises became taxpayer liabilities.

But was there any way to limit those liabilities? After all, banks would have suffered huge losses if A.I.G. had been allowed to fail. So it seemed only fair for them to bear part of the cost of the bailout, which they could have done by accepting a “haircut” on the amounts A.I.G. owed them. Indeed, the government asked them to do just that. But they said no — and that was the end of the story. Taxpayers not only ended up honoring foolish promises made by other people, they ended up doing so at 100 cents on the dollar.

Could things have been different? Some commentators argue that government officials had no way to force the banks to accept a haircut — either they let A.I.G. go bankrupt, which they weren’t ready to do, or they had to honor its contracts as written.

But this seems like a naïve view of how Wall Street works. Major financial firms are a small club, with a shared interest in sustaining the system; ever since the days of J.P. Morgan, it has been common in times of crisis to call on the big players to forgo short-term profits for the industry’s common good. Back in 1998, it was a consortium of private bankers — not the government — that put up the funds to rescue the hedge fund Long Term Capital Management.

Furthermore, big financial firms have a long-term relationship, both with the government and with each other, and can pay a price if they act selfishly in times of crisis. Bear Stearns, the investment bank, earned itself a lot of ill will by refusing to participate in that 1998 rescue, and it’s widely believed that this ill will played a major factor in the demise of Bear Stearns itself, 10 years later.

So officials could have called on bankers to offer a better deal, for their own sake, and simultaneously threatened to name and shame those who balked. It was their choice not to do that, just as it was their choice not to push for more control over bailed-out banks in early 2009.

And, as I said, these seemingly safe choices have now placed the economy in grave danger.

For the economy is still in deep trouble and needs much more government help. Unemployment is in double-digits; we desperately need more government spending on job creation. Banks are still weak, and credit is still tight; we desperately need more government aid to the financial sector. But try to talk to an ordinary voter about this, and the response you’re likely to get is: “No way. All they’ll do is hand out more money to Wall Street.”

So here’s the real tragedy of the botched bailout: Government officials, perhaps influenced by spending too much time with bankers, forgot that if you want to govern effectively you have retain the trust of the people. And by treating the financial industry — which got us into this mess in the first place — with kid gloves, they have squandered that trust.

Sarah from Alaska "how did she get elected GOV?"

from HUFFINGTON POST


I have, of course, all my life read. I'm a lover of books, magazines, and newspapers."
- Former Alaska Governor Sarah Palin

"Sometimes, big shot, you don't seem to give me credit for very much intelligence at all. I've been to school in my life - and I'm a magazine reader!"
- Baby Doll

Sarah Palin took her book tour to the Rush Limbaugh Show this morning. The Oprah and Barbara Walters interviews have been fun, because they mostly just asked her about Levi Johnston, and it's gratifying that God sent him to ruin her life and save the Republic. (Sometimes God opens a door. And it's to Bristol's room.) But the Rush interview was different. To Rush's credit, he actually asked her about politics.

Policy. That's where she shines.

See if you can pick out a theme to her answers.

Unemployment?

But those commonsense solutions there, especially with the cutting taxes on the job creators? That's not even being discussed.
Healthcare reform?

Not when there are commonsense solutions to meeting health care challenges in our country... So lots of commonsense solutions that need to be plugged in before ever considering federal government taking it over.
The 2010 elections?

It's all about Americans who are hurting right now and what those solutions are that are so obvious, so commonsense that need to be plugged in.
The recent special congressional election in New York State?

They are seeking commonsense, conservative solutions to all the challenges that we're facing. I'm glad to see this.
Independent voters?

Todd's not a Republican and yet he's got more commonsense conservatism than a whole lot of Republicans that I know... But in answer to your question, I don't think that the third party movement will be what's necessary to usher in some commonsense conservative ideals... In Alaska, about 70% of Alaskans are independent. So that's my base. That's where I am from and that's been my training ground, is just implementing commonsense conservative solutions.
The Future of the Republican Party?

Let's go back to what Reagan did in the early eighties and stay committed to those commonsense free market principles that worked.
The overall message of her book?

It was just a lot of hard work and it was a lot of very commonsense measures that I undertook politically and practically speaking, and the book is about that, and hopefully people will read it and enjoy it and learn something from it.
In answering about a dozen questions, Palin said some combination of "solutions," "conservative" and "commonsense" twenty-five times. Is this an interview or a drinking game? Was Rush rewarding her by tossing her fish?

Her excitement got the better of her when she said, "But those common sense solutions there." This was a shoehorn too far, as the correct form, in Hillbilly, is obviously "Those there commonsense solutions."

Mencken identified those-there this as a perfectly good hill country adverbial pronoun. (His example, from everyday use: "Those-there wops has all took to the woods.") But he warned that the adverb promised to coalesce with the pronoun so completely as to obliterate all sense of its distinct existence, even as a false noun or adjective. Little did he know.

But splitting an adverbial pronoun, just to squeeze in one more "commonsense?" That's just wrong.

To be fair to Barbara Walters, she did ask Sarah Palin at least one political question: Did Palin think President Obama deserved a Nobel Prize?

Palin replied:

Maybe someday there will be some deserved event, and issues that he tackles that will allow that presentation of Nobel Peace Prize, and I'll be the first to applaud that but two weeks into office and he's already nominated? That's premature. -- Sarah Palin, Author
H.L. Mencken, your move.

BLOOD SUCKERS part #2 Questions About Cholesterol Drug’s Benefit

Study Raises Questions About Cholesterol Drug’s Benefit NYTimes NATASHA SINGER

ORLANDO, Fla. — For patients taking a statin to control high cholesterol, adding an old standby drug, niacin, was superior in reducing buildup in the carotid artery to adding Zetia, a newer drug that reduces bad cholesterol, according to a new study.

The results of the study, published in The New England Journal of Medicine, were presented here Sunday night at an annual meeting of the American Heart Association.

The study has been a polarizing topic here and has also attracted the attention of a powerful senator who has been investigating the conduct of two drug makers, Merck and Schering-Plough, in relation to their sales and marketing of Zetia and a combination cholesterol drug, Vytorin, which includes Zetia. The drug makers merged this month.

The small study, with only 208 patients, has attracted outsize attention because the researchers did a head-to-head comparison of niacin and Zetia, which has been heavily marketed.

The Food and Drug Administration approved Zetia in 2002 to lower bad cholesterol, a risk factor for heart disease. But the drug has not yet proved to have a longer-term clinical benefit in reducing heart attacks and deaths. Merck, the maker of the drug, is conducting a clinical trial on that issue involving up to 18,000 patients. Statins like Lipitor have proved in studies to significantly lower the risk of heart attack.

Some cardiologists here hailed the study as an indication that the popularity of Zetia and Vytorin, which had combined sales last year of about $4.6 billion, has far outstripped their evidence of a concrete benefit on heart health. Other doctors here dismissed the study because it did not directly measure the drugs’ effects on reducing heart attacks.

Nevertheless, this study has the potential to make big waves in the use of cholesterol drugs.

“It will certainly strengthen the idea that, after you give a statin, the weight of the evidence is that, as a second agent, you should give niacin,” said Dr. Roger S. Blumenthal, a professor of medicine at the Johns Hopkins University Medical School. “That is the implication of the study.”

But Dr. Peter S. Kim, the president of Merck Research Laboratories, said Sunday in an interview that the study was limited because it did not compare the groups of patients taking a statin and a second drug to a placebo group. Furthermore, he said, a drug’s ability to improve artery-wall thickness has not been proved to automatically correlate with a reduction in heart attacks.

Zetia, he said, lowers bad cholesterol and lowering bad cholesterol is a known good.

The study results “should be compared to the overwhelming body of evidence that lowering LDL cholesterol is an important thing to do to improve cardiovascular health,” Dr. Kim said.

The study randomly assigned patients who were taking a statin and who had heart disease or a risk of heart disease to additionally take either Zetia or Niaspan.

Statins are a class of drug which lowers LDL, known as bad cholesterol because it can cause arterial thickening and lead to heart problems. The drugs work by inhibiting the production of cholesterol in the liver.

Zetia, which inhibits the absorption of cholesterol in the intestines, lowers bad cholesterol.

Niaspan is a prescription extended-release form of niacin, not the over-the-counter vitamin. Niacin increases HDL, known as “good cholesterol.” Niaspan is made by Abbott Laboratories, which financed the study.

Over the course of the 14-month study, the bad cholesterol of the patients on Zetia decreased by 19.2 percent, but the patients’ arterial wall thickness stayed the same, the study said. In the niacin group, good cholesterol increased by 18.4 percent and the carotid wall thickness decreased.

By itself, the study does not have major significance, said Dr. James H. Stein, a professor at the University of Wisconsin medical school. But taken in the context of more than 30 years of research on and use of niacin, he said, the study adds to the weight of evidence that it can a great benefit to patients with heart disease, he said. “Compare that to Zetia where there is not a shred of evidence that it does anything good for blood vessels or heart disease,” Dr. Stein said.

On Friday, Senator Charles E. Grassley, Republican of Iowa, wrote to the Department of Health and Human Services, asking its director, Kathleen Sebelius, what action she intended to take in light of the study results. Mr. Grassley sits on the Senate Finance Committee which has jurisdiction over Medicare and its drug spending. In 2006 and 2007, the drug makers made more than $300 million through Medicare Part D in sales of Vytorin, a drug that combines Zetia and a statin, Mr. Grassley wrote.

In response to a query from a reporter, a Merck spokesman said the small trial did not change the company’s belief in the demonstrated ability of Zetia and Vytorin to reduce bad cholesterol.

DRUG Makers are BLOOD SUCKERS!

Drug Makers Raise Prices in Face of Health Care Reform


Even as drug makers promise to support Washington’s health care overhaul by shaving $8 billion a year off the nation’s drug costs after the legislation takes effect, the industry has been raising its prices at the fastest rate in years.

In the last year, the industry has raised the wholesale prices of brand-name prescription drugs by about 9 percent, according to industry analysts. That will add more than $10 billion to the nation’s drug bill, which is on track to exceed $300 billion this year. By at least one analysis, it is the highest annual rate of inflation for drug prices since 1992.

The drug trend is distinctly at odds with the direction of the Consumer Price Index, which has fallen by 1.3 percent in the last year.

Drug makers say they have valid business reasons for the price increases. Critics say the industry is trying to establish a higher price base before Congress passes legislation that tries to curb drug spending in coming years.

“When we have major legislation anticipated, we see a run-up in price increases,” says Stephen W. Schondelmeyer, a professor of pharmaceutical economics at the University of Minnesota. He has analyzed drug pricing for AARP, the advocacy group for seniors that supports the House health care legislation that the drug industry opposes.

A Harvard health economist, Joseph P. Newhouse, said he found a similar pattern of unusual price increases after Congress added drug benefits to Medicare a few years ago, giving tens of millions of older Americans federally subsidized drug insurance. Just as the program was taking effect in 2006, the drug industry raised prices by the widest margin in a half-dozen years.

“They try to maximize their profits,” Mr. Newhouse said.

But drug companies say they are having to raise prices to maintain the profits necessary to invest in research and development of new drugs as the patents on many of their most popular drugs are set to expire over the next few years.

“Price adjustments for our products have no connection to health care reform,” said Ron Rogers, a spokesman for Merck, which raised its prices about 8.9 percent in the last year, according to a stock analyst’s report.

This year’s increases mean the average annual cost for a brand-name prescription drug that is taken daily would be more than $2,000 — $200 higher than last year, Professor Schondelmeyer said.

And this means that the cost of many popular drugs has risen even faster. Merck, for example, now sells daily 10-milligram pills of Singulair, the blockbuster asthma drug, at a wholesale price of $1,330 a year — $147 more than last year. Singulair is now selling at retail, on drugstore.com, for nearly $1,478 a year.

The drug companies “can charge what they want — it’s not fair,” Eric White, the 42-year-old owner of a small jewelry store in Queens, said as he left a pharmacy recently.

Despite having drug insurance, Mr. White says he now pays $110 a month out of pocket for two brand-name allergy medicines, even as he has cut prices in his jewelry store by at least 40 percent to keep customers coming through the door.

He shook his head. “What can I do?” he said. “I need my medicines.”

The drug industry has actively opposed some of the cost-cutting provisions in the House legislation, which passed Nov. 7 and aims to cut drug spending by about $14 billion a year over a decade.

But the drug makers have been proudly citing the agreement they reached with the White House and the Senate Finance Committee chairman to trim $8 billion a year — $80 billion over 10 years — from the nation’s drug bill by giving rebates to older Americans and the government. That provision is likely to be part of the legislation that will reach the Senate floor in coming weeks.

But this year’s price increases would effectively cancel out the savings from at least the first year of the Senate Finance agreement. And some critics say the surge in drug prices could change the dynamics of the entire 10-year deal.

“It makes it much easier for the drug companies to pony up the $80 billion because they’ll be making more money,” said Steven D. Findlay, senior health care analyst with the advocacy group Consumers Union.

Name-brand prices have risen even as prices of widely used generic drugs have fallen by about 9 percent in the last year, Professor Schondelmeyer said. But name brands account for 78 percent of total prescription drug spending in this country. And as long as a name-brand drug still has patent protection it faces no price competition from generics.

Ken Johnson, senior vice president of the industry association — the Pharmaceutical Research and Manufacturers of America — criticized the analysis Professor Schondelmeyer had conducted for AARP, saying it was politically motivated.

“In AARP’s skewed view of the world, medicines are always looked at as a cost and never seen as a savings — even though medicines often reduce unnecessary hospitalization, help avoid costly medical procedures and increase productivity through better prevention and management of chronic diseases,” he said.

But Professor Schondelmeyer’s analysis — which found prices for the name-brand drugs most widely used by the Medicare population rising by 9.3 percent in the last year, the fastest rate since 1992 — is in line with the findings of a leading Wall Street analyst, too. The report was released on Monday.

Catherine J. Arnold, a drug industry analyst at Credit Suisse, said her latest study of the nation’s eight biggest pharmaceutical companies showed markedly similar results: list prices rising an average of 8.7 percent in the 12 months ending Sept. 30 — the highest rate of growth since at least 2004.

As does Professor Schondelmeyer, Ms. Arnold based her price calculations on reported wholesale prices and a formula that puts more emphasis on each company’s best-selling drugs.

Ms. Arnold said the prospect of cost containment under health care reform, as well as the tougher business environment, entered into the decisions of manufacturers to raise prices this year.

The industry stands to gain about 30 million customers with drug insurance from the legislation pending in Congress. But the industry also faces the prospect of tougher negotiations from both public and private buyers as the government tries to squeeze savings out of the health system.

“If you’re going to take price increases,” Ms. Arnold said, “here and now might be the place to do that, because the next year and the year after that might be tough.”

Mr. Johnson did not dispute the Credit Suisse study or deny Ms. Arnold’s finding that American drug makers have raised prices at the fastest rate in five years.

He said both studies were incomplete by failing to include rebates that drug makers give distributors. But Ms. Arnold, Professor Schondelmeyer and a 2007 Congressional study of Medicare said the rebates often accrue to the middlemen, not consumers, and higher manufacturer prices lead to higher retail prices.

And the drug industry’s own major consulting firm, IMS Health, has also reported a significant run-up in prices. Back in April, IMS predicted that United States drug sales might actually decline this year.

Billy Tauzin, president of the industry’s trade association, highlighted the gloomy prediction in a June 1 letter to President Obama shortly before striking the deal to cut drug costs by $80 billion. In negotiating the deal, the drug makers argued that they could not afford to give up more than that.

But in October, IMS made an unusual change in the middle of its forecasting cycle, saying it now believed United States sales would grow at least 4.5 percent in 2009 — or $21 billion more than expected six months earlier.

A major reason, IMS said, was higher-than-expected price increases for drugs in the United States.

For Some Smokers, Even Home Is Off Limits

NYTimes C. J. HUGHES

The movement to ban smoking in New York City has grown so quickly that no place seems immune — certainly not restaurants or bars, and public beaches and parks may not be far behind. Now the efforts are rapidly expanding into the living room.

More landlords are moving to prohibit smoking in their apartment buildings, telling prospective tenants they can be evicted if they light up in them.

This month, the Related Companies will ban smoking at some of its downtown apartment buildings because of health concerns about secondhand smoke, according to company officials.

Smokers who already live in any of these buildings will not be affected, according to Jeff Brodsky, a president of Related, which is a national developer with 17 buildings in Manhattan.

But any new renters must promise not to smoke at home, even if they continue to elsewhere.

Kenbar Management, a local developer, is going a step further. When its new project, 1510 Lexington Avenue, opens in December, smoking will be banned in all 298 units, in addition to private and shared terraces.

And the typical smoker’s refuge — directly outside the building — is also off limits; tenants must agree not to smoke on any of the sidewalks that wrap around the building, which takes up most of a block in East Harlem, according to Kinne Yon, a Kenbar principal.

The trend has predictably divided smokers and nonsmokers in New York.

“I think it’s absolutely absurd,” said Bryan Marx, 53, a cabinetmaker who has lived at Tribeca Park, a Related building on Chambers Street, since 1999. He smokes hand-rolled cigarettes in his apartment, but said that he cut back on a cigar habit a few years ago to appease a neighbor.

“How about a little tolerance?” Mr. Marx added. “Smokers have become the whipping boys for everything that’s unhealthy about living in New York City.”

Across the country, the movement to ban smoking in residential buildings is gaining traction. The Department of Housing and Urban Development has strongly encouraged public housing agencies to ban smoking in some or all of their units.

So far, about 50 public housing agencies have now forbidden smoking, according to Betsy Feigin Befus, a lawyer with the National Multi Housing Council, a landlord trade group that has tracked the efforts.

Other cities, through legislation or by initiatives of developers, have taken similar steps. In California, for example, all apartments and condos in Richmond, near San Francisco, must outlaw cigarette smoking, according to an ordinance passed in July. Across the bay in Belmont, a ban on smoking in apartments took effect in January after a 14-month grace period, with $100 fines possible for offenders.

While there is no question about the dangers of secondhand smoke, there is debate about whether the amount of smoke that may be transmitted from one apartment to another is harmful. A recent study by New York City’s health department found that about 57 percent of nonsmokers had been exposed to substantial levels of cigarette smoke, raising suspicions among experts that apartment dwellers might be susceptible to secondhand smoke from their neighbors.

New York City has been at the forefront of efforts to ban smoking in bars and restaurants, and the city’s health commissioner, Dr. Thomas A. Farley, said in September that he supported a ban on smoking at city beaches and parks. But the city, he said, has no plan to push for a smoking ban in public housing developments.

The city did help Related research the health effects of smoke in apartment buildings, Dr. Farley said, adding, “Our focus would be on individuals having their homes smoke-free.”

Pan Am Equities, a real estate management company, may have been one of the first in New York to introduce a smoking ban to an apartment building. About 18 months ago, the company asked new renters to promise not to smoke; the ban did not affect existing tenants, according to David Iwanier, a company vice president.

All of Pan Am’s rentals — which include 270 Park Avenue South, 145 West 67th Street and 60 West 23rd Street — are affected, though Mr. Iwanier would not discuss the reasons for the ban.

“It was just something we decided to do,” he said. And in terms of lease renewals, he added, “we’ve not had any negative feedback.”

Mr. Brodsky, of Related, said that existing tenants would be reassured that they would not be evicted or pressured to leave. He would not specify which of the developer’s buildings are in line for the ban, saying only that they are among the six in or near Battery Park City and Chelsea. Those include Tribeca Park; the Caledonia, which abuts the High Line park; and Tribeca Green in Battery Park City, which bills itself as “New York’s most environmental rental.”

“I think it’s a bloody good thing,” said Dale Smith, 41, a Broadway producer who formerly worked in the health care industry. A resident of Tribeca Green for nearly three years, Mr. Smith, who does not smoke, said he had complained to his landlord about secondhand smoke in his apartment.

“A policy that is in place because something has proven to be hazardous in eating establishments should be effective in the home,” he said.

Experts say there is no known law in the United States that prohibits landlords from banning smoking in their buildings, and many trial judges have sided with the nonsmoker. In New York, for example, a 2006 decision found that tenants had the right to break a lease because the landlord failed to safeguard an apartment from secondhand smoke.

Co-ops and condominiums have been somewhat slower to embrace such bans, according to real estate lawyers.

In interviews with several lawyers who represent real estate concerns, only one, Stuart Saft, knew of any buildings that had instituted a smoking ban. He said that of the 100 or so co-op buildings he represents on the Upper East and West Sides of Manhattan, only two have banned smoking outright in the last few years.

A poll commissioned by the NYC Coalition for a Smoke Free City suggested that a residential smoking ban might not hurt rentals or sales. The survey of 1,000 New Yorkers, which was administered by Zogby International in July, found that 58 percent would pay more to live in smoke-free housing; 68 percent might not live in a smoking building in the first place.

Yet some real estate brokers question the wisdom of instituting a smoking ban during a housing downturn, with vacancy rates climbing.

That 950,000 New Yorkers — or 16 percent of the population — call themselves smokers, according to the city’s health department, is not insignificant, said Daniel Baum, chief executive at the Developers Group/The Real Estate Group of New York, a brokerage that focuses on rentals.

“I think in general it’s probably not an ideal time to try to limit potential tenants,” Mr. Baum said. “Every occupied apartment counts.”

And Audrey Silk, the founder of Citizens Lobbying Against Smoker Harassment, a nine-year-old advocacy group, said the trend was troubling from a civil liberties perspective.

“If we’re talking about annoying odors, where do you draw the line?” she said. “What about cooking odors, from fish or curry?”

Yet some smokers seemed resigned to their fate. Brian Mossotti, 28, a day trader, moved into the Pan Am-run building on 23rd Street 14 months ago, after the developer’s ban had taken effect. After receiving three warnings from management about fumes in the hallway, including a stern letter in September, Mr. Mossotti finally agreed to take his two-a-day cigarette habit to the sidewalk, he said.

“You can’t smoke in bars because of the whole secondhand smoke thing, so it doesn’t surprise me,” he said. “But it is irritating.”

Palin's book goes rogue on some facts

FACT CHECK: Palin's book goes rogue on some facts
By CALVIN WOODWARD Associated Press

Sarah Palin's new book reprises familiar claims from the 2008 presidential campaign that haven't become any truer over time.

Ignoring substantial parts of her record if not the facts, she depicts herself as a frugal traveler on the taxpayer's dime, a reformer without ties to powerful interests and a politician roguishly indifferent to high ambition.

Palin goes adrift, at times, on more contemporary issues, too. She criticizes President Barack Obama for pushing through a bailout package that actually was achieved by his Republican predecessor George W. Bush — a package she seemed to support at the time.

A look at some of her statements in "Going Rogue," obtained by The Associated Press in advance of its release Tuesday:

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PALIN: Says she made frugality a point when traveling on state business as Alaska governor, asking "only" for reasonably priced rooms and not "often" going for the "high-end, robe-and-slippers" hotels.

THE FACTS: Although travel records indicate she usually opted for less-pricey hotels while governor, Palin and daughter Bristol stayed five days and four nights at the $707.29-per-night Essex House luxury hotel (robes and slippers come standard) overlooking New York City's Central Park for a five-hour women's leadership conference in October 2007. With air fare, the cost to Alaska was well over $3,000. Event organizers said Palin asked if she could bring her daughter. The governor billed her state more than $20,000 for her children's travel, including to events where they had not been invited, and in some cases later amended expense reports to specify that they had been on official business.

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PALIN: Boasts that she ran her campaign for governor on small donations, mostly from first-time givers, and turned back large checks from big donors if her campaign perceived a conflict of interest.

THE FACTS: Of the roughly $1.3 million she raised for her primary and general election campaigns for governor, more than half came from people and political action committees giving at least $500, according to an AP analysis of her campaign finance reports. The maximum that individual donors could give was $1,000; $2,000 for a PAC.

Of the rest, about $76,000 came from Republican Party committees.

She accepted $1,000 each from a state senator and his wife in the weeks after the two Republican lawmakers' offices were raided by the FBI as part of an investigation into a powerful Alaska oilfield services company. After AP reported those donations during the presidential campaign, she said she would give a comparative sum to charity after the general election in 2010, a date set by state election laws.

PALIN: Rails against taxpayer-financed bailouts, which she attributes to Obama. She recounts telling daughter Bristol that to succeed in business, "you'll have to be brave enough to fail."

THE FACTS: Palin is blurring the lines between Obama's stimulus plan — a $787 billion package of tax cuts, state aid, social programs and government contracts — and the federal bailout that Republican presidential candidate John McCain voted for and President George W. Bush signed.

Palin's views on bailouts appeared to evolve as McCain's vice presidential running mate. In September 2008, she said "taxpayers cannot be looked to as the bailout, as the solution, to the problems on Wall Street." A week later, she said "ultimately what the bailout does is help those who are concerned about the health care reform that is needed to help shore up our economy."

During the vice presidential debate in October, Palin praised McCain for being "instrumental in bringing folks together" to pass the $700 billion bailout. After that, she said "it is a time of crisis and government did have to step in."

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PALIN: Says Ronald Reagan faced an even worse recession than the one that appears to be ending now, and "showed us how to get out of one. If you want real job growth, cut capital gains taxes and slay the death tax once and for all."

THE FACTS: The estate tax, which some call the death tax, was not repealed under Reagan and capital gains taxes are lower now than when Reagan was president.

Economists overwhelmingly say the current recession is far worse. The recession Reagan faced lasted for 16 months; this one is in its 23rd month. The recession of the early 1980s did not have a financial meltdown. Unemployment peaked at 10.8 percent, worse than the October 2009 high of 10.2 percent, but the jobless rate is still expected to climb.

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PALIN: She says her team overseeing the development of a natural gas pipeline set up an open, competitive bidding process that allowed any company to compete for the right to build a 1,715-mile pipeline to bring natural gas from Alaska to the Lower 48.

THE FACTS: Palin characterized the pipeline deal the same way before an AP investigation found her team crafted terms that favored only a few independent pipeline companies and ultimately benefited a company with ties to her administration, TransCanada Corp. Despite promises and legal guidance not to talk directly with potential bidders during the process, Palin had meetings or phone calls with nearly every major candidate, including TransCanada.

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PALIN: Criticizes an aide to her predecessor, Gov. Frank Murkowski, for a conflict of interest because the aide represented the state in negotiations over a gas pipeline and then left to work as a handsomely paid lobbyist for ExxonMobil. Palin asserts her administration ended all such arrangements, shoving a wedge in the revolving door between special interests and the state capital.

THE FACTS: Palin ignores her own "revolving door" issue in office; the leader of her own pipeline team was a former lobbyist for a subsidiary of TransCanada, the company that ended up winning the rights to build the pipeline.

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PALIN: Writes about a city councilman in Wasilla, Alaska, who owned a garbage truck company and tried to push through an ordinance requiring residents of new subdivisions to pay for trash removal instead of taking it to the dump for free — this to illustrate conflicts of interest she stood against as a public servant.

THE FACTS: As Wasilla mayor, Palin pressed for a special zoning exception so she could sell her family's $327,000 house, then did not keep a promise to remove a potential fire hazard on the property.

She asked the city council to loosen rules for snow machine races when she and her husband owned a snow machine store, and cast a tie-breaking vote to exempt taxes on aircraft when her father-in-law owned one. But she stepped away from the table in 1997 when the council considered a grant for the Iron Dog snow machine race in which her husband competes.

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PALIN: Says Obama has admitted that the climate change policy he seeks will cause people's electricity bills to "skyrocket."

THE FACTS: She correctly quotes a comment attributed to Obama in January 2008, when he told San Francisco Chronicle editors that under his cap-and-trade climate proposal, "electricity rates would necessarily skyrocket" as utilities are forced to retrofit coal burning power plants to reduce carbon dioxide emissions.

Obama has argued since then that climate legislation can blunt the cost to consumers. Democratic legislation now before Congress calls for a variety of measures aimed at mitigating consumer costs. Several studies predict average household costs probably would be $100 to $145 a year.

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PALIN: Welcomes last year's Supreme Court decision deciding punitive damages for victims of the nation's largest oil spill tragedy, the Exxon Valdez disaster, stating it had taken 20 years to achieve victory. As governor, she says, she'd had the state argue in favor of the victims, and she says the court's ruling went "in favor of the people." Finally, she writes, Alaskans could recover some of their losses.

THE FACTS: That response is at odds with her reaction at the time to the ruling, which resolved the long-running case by reducing punitive damages for victims to $500 million from $2.5 billion. Environmentalists and plaintiffs' lawyers decried the ruling as a slap at the victims and Palin herself said she was "extremely disappointed." She said the justices had gutted a jury decision favoring higher damage awards, the Anchorage Daily News reported. "It's tragic that so many Alaska fishermen and their families have had their lives put on hold waiting for this decision," she said, noting many had died "while waiting for justice."

___

PALIN: Describing her resistance to federal stimulus money, Palin describes Alaska as a practical, libertarian haven of independent Americans who don't want "help" from government busybodies.

THE FACTS: Alaska is also one of the states most dependent on federal subsidies, receiving much more assistance from Washington than it pays in federal taxes. A study for the nonpartisan Tax Foundation found that in 2005, the state received $1.84 for every dollar it sent to Washington.

___

PALIN: Says she tried to talk about national security and energy independence in her interview with Vogue magazine but the interviewer wanted her to pivot from hydropower to high fashion.

THE FACTS are somewhat in dispute. Vogue contributing editor Rebecca Johnson said Palin did not go on about hydropower. "She just kept talking about drilling for oil."

___

PALIN: "Was it ambition? I didn't think so. Ambition drives; purpose beckons." Throughout the book, Palin cites altruistic reasons for running for office, and for leaving early as Alaska governor.

THE FACTS: Few politicians own up to wanting high office for the power and prestige of it, and in this respect, Palin fits the conventional mold. But "Going Rogue" has all the characteristics of a pre-campaign manifesto, the requisite autobiography of the future candidate.

GOP blizzard of untrue statements

Health scare tactics
A GOP blizzard of untrue statements By Ruth Marcus

I'm hoping, for your sake, that you didn't spend your Saturday night as I did: watching the House debate health-care reform on C-SPAN.

Pathetic, I know. The outcome wasn't in doubt, and the arguments were as familiar as an old pair of slippers. Moral imperative! Government takeover! Long-overdue protections! Crippling mandates!

I'm not a huge fan of the House measure, but I was glad to see it straggle across the finish line, if only to keep the process going. And, by the end of the long debate, I was cheering for it even more because of the appalling amount of misinformation being peddled by its opponents.

I don't mean the usual hyperbole about "a children-bankrupting, health-care-rationing, freedom-crushing, $1 trillion government takeover of our health-care system," as Texas Republican Jeb Hensarling put it. Or the tired canards about taxpayer-funded abortion or insurance subsidies for illegal immigrants.

Or the extraneous claims about alleged Democratic excesses, as in this from Georgia Republican Jack Kingston: "Let's remember the Pelosi plan for jobs: an $800 billion stimulus plan that caused unemployment to go from 8.5 percent to over 10 percent."

Caused? We can debate whether the stimulus was effective, although the best evidence is that it prevented things from being even worse. No rational person believes the stimulus "caused" unemployment to rise.

I mean the flood of sheer factual misstatements about the health-care bill.

The falsehood-peddling began at the top, with Minority Leader John Boehner:

"If you're a Medicare Advantage enrollee . . . the Congressional Budget Office says that 80 percent of them are going to lose their Medicare Advantage."

Not true. The CBO hasn't said anything of the sort. Boehner's office acknowledges that he misspoke: He meant to cite a study from the Medicare actuary estimating that projected enrollment would be down by 64 percent -- if the cuts took effect. Choosing not to enroll in Medicare Advantage is different from "losing" it.

But Boehner wasn't alone.

Kentucky Republican Brett Guthrie: "The bill raises taxes for just about everyone."

Not true. The bill imposes a surtax on the top 0.3 percent of households, individuals making more than $500,000 a year and couples making more than $1 million.

Georgia Republican Tom Price: "This bill, on Page 733, empowers the Washington bureaucracy to deny lifesaving patient care if it costs too much."

Not true. The bill sets up a Center for Comparative Effectiveness Research "in order to identify the manner in which diseases, disorders, and other health conditions can most effectively and appropriately be prevented, diagnosed, treated, and managed clinically."

Are Republicans against figuring out what works? There's nothing in there about cost, and certainly nothing about denying "lifesaving patient care."

Price, again: "This bill, on Page 94, will make it illegal for any American to obtain health care not approved by Washington."

Not true. The vast majority of Americans get their insurance through their employers. The bill envisions setting minimum federal standards for such insurance, in part to determine who is eligible to buy coverage through the newly created insurance exchanges. This is hardly tantamount to making it "illegal" to obtain "health care" without Washington's approval.

Michigan Republican Dave Camp: "Americans could face five years in jail if they don't comply with the bill's demands to buy approved health insurance."

Not true. The bill requires people to obtain insurance or, with some hardship exceptions, pay a fine. No one is being jailed for being uninsured. People who intentionally evade paying the fine could, in theory, be prosecuted -- just like others who cheat on their taxes.

California Republican Buck McKeon: "I offered two amendments to try to improve this bill -- one to require members of Congress to enroll in the public option like we're going to require all of you to do."

Not true. No one is required to enroll in the public option. In fact, most people won't even be eligible to enroll in the public option or other plans available through the exchanges.

Florida Republican Ginny Brown-Waite: "The president's own economic advisers have said that this bill will kill 5.5 million jobs."

Not true. Christina Romer, chair of the Council of Economic Advisers, has estimated that the bill would increase economic growth and add jobs. Republicans misuse Romer's previous economic research on the impact of tax increases to produce the phony 5.5 million number.

You have to wonder: Are the Republican arguments against the bill so weak that they have to resort to these misrepresentations and distortions?

NICHOLAS D. KRISTOF Chemicals in Our Food, and Bodies

source: NYTimes

Your body is probably home to a chemical called bisphenol A, or BPA. It’s a synthetic estrogen that United States factories now use in everything from plastics to epoxies — to the tune of six pounds per American per year. That’s a lot of estrogen.

More than 92 percent of Americans have BPA in their urine, and scientists have linked it — though not conclusively — to everything from breast cancer to obesity, from attention deficit disorder to genital abnormalities in boys and girls alike.

Now it turns out it’s in our food.

Consumer Reports magazine tested an array of brand-name canned foods for a report in its December issue and found BPA in almost all of them. The magazine says that relatively high levels turned up, for example, in Progresso vegetable soup, Campbell’s condensed chicken noodle soup, and Del Monte Blue Lake cut green beans.

The magazine also says it found BPA in the canned liquid version of Similac Advance infant formula (but not in the powdered version) and in canned Nestlé Juicy Juice (but not in the juice boxes). The BPA in the food probably came from an interior coating used in many cans.

Should we be alarmed?

The chemical industry doesn’t think so. Steven Hentges of the American Chemistry Council dismissed the testing, noting that Americans absorb quantities of BPA at levels that government regulators have found to be safe. Mr. Hentges also pointed to a new study indicating that BPA exposure did not cause abnormalities in the reproductive health of rats.

But more than 200 other studies have shown links between low doses of BPA and adverse health effects, according to the Breast Cancer Fund, which is trying to ban the chemical from food and beverage containers.

“The vast majority of independent scientists — those not working for industry — are concerned about early-life low-dose exposures to BPA,” said Janet Gray, a Vassar College professor who is science adviser to the Breast Cancer Fund.

Published journal articles have found that BPA given to pregnant rats or mice can cause malformed genitals in their offspring, as well as reduced sperm count among males. For example, a European journal found that male mice exposed to BPA were less likely to make females pregnant, and the Journal of Occupational Health found that male rats administered BPA had less sperm production and lower testicular weight.

This year, the journal Environmental Health Perspectives found that pregnant mice exposed to BPA had babies with abnormalities in the cervix, uterus and vagina. Reproductive Toxicology found that even low-level exposure to BPA led to the mouse equivalent of early puberty for females. And an array of animal studies link prenatal BPA exposure to breast cancer and prostate cancer.

While most of the studies are on animals, the Journal of the American Medical Association reported last year that humans with higher levels of BPA in their blood have “an increased prevalence of cardiovascular disease, diabetes and liver-enzyme abnormalities.” Another published study found that women with higher levels of BPA in their blood had more miscarriages.

Scholars have noted some increasing reports of boys born with malformed genitals, girls who begin puberty at age 6 or 8 or even earlier, breast cancer in women and men alike, and declining sperm counts among men. The Endocrine Society, an association of endocrinologists, warned this year that these kinds of abnormalities may be a consequence of the rise of endocrine-disrupting chemicals, and it specifically called on regulators to re-evaluate BPA.

Last year, Canada became the first country to conclude that BPA can be hazardous to humans, and Massachusetts issued a public health advisory in August warning against any exposure to BPA by pregnant or breast-feeding women or by children under the age of 2.

The Food and Drug Administration, which in the past has relied largely on industry studies — and has generally been asleep at the wheel — is studying the issue again. Bills are also pending in Congress to ban BPA from food and beverage containers.

“When you have 92 percent of the American population exposed to a chemical, this is not one where you want to be wrong,” said Dr. Ted Schettler of the Science and Environmental Health Network. “Are we going to quibble over individual rodent studies, or are we going to act?”

While the evidence isn’t conclusive, it justifies precautions. In my family, we’re cutting down on the use of those plastic containers that contain BPA to store or microwave food, and I’m drinking water out of a metal bottle now. In my reporting around the world, I’ve come to terms with the threats from warlords, bandits and tarantulas. But endocrine disrupting chemicals — they give me the willies.

I invite you to comment on this column on my blog, On the Ground. Please also join me on Facebook, watch my YouTube videos and follow me on Twitter.

November 2, 2009

US Military Deaths in Iraq War at 4,357

Pelosi claim CIA lied validated

Pelosi claim CIA lied validated by House Intelligence Committee
By Jared Allen - TheHill 10/27/09

Democrats on the Intelligence Committee have concluded that the CIA did not fully inform Congress about the use of enhanced interrogation techniques during a September 2002 briefing.

The new report seemingly validates House Speaker Nancy Pelosi’s (D-Calif.) claim earlier this year that she was lied to about the program.

Reps. Jan Schakowsky and Anna Eshoo – the chairwomen of a pair of subcommittees investigating the legitimacy of briefings given to Congress by intelligence officials – have identified at least five instances going back to at least 2001 in which the C.I.A. withheld information from or lied to Congress, the two Democrats said on Tuesday.

At least one the C.I.A.’s obfuscations was already known. A 2008 C.I.A. Inspector Generals report determined that the agency withheld information from Congress relating to the shooting down of a plane carrying missionaries over Peru in 2001.

But Schakowsky said their ongoing investigation found that the practice of incomplete briefings or outright lying was part of a “large disease” of misinforming even the chairmen of the select intelligence committees.

On June 24 of this year current C.I.A. Director Leon Panetta first alerted the House Intelligence Committee about a top-secret program to assassinate top al Qaeda operatives, and it was long suspected that the agency had been ordered by Vice President Cheney to keep Congress in the dark.

Schakowsky and Eshoo identified “Director Panetta’s June 24 notification” as one of the five instances linked to a complete communication breakdown between the intelligence community and Congress.

In addition, the C.I.A. withheld information or lied about the 2005 destruction of videotapes recording the interrogation of al Qaeda operatives by intelligence officials, and the agency had also done so during a September 2002 briefing of the so-called “Gang of Eight” in Congress on the enhanced interrogation of terrorism suspects, Schakowsky and Eshoo said.