Well: Meatless Main Dishes for a Holiday Table

Most vegetarian diners are happy to fill their plates with delicious sides and salads, but if you want to make them feel special, consider one of these main course vegetarian dishes from Martha Rose Shulman. All of them are inspired by Greek cooking, which has a rich tradition of vegetarian meals.

I know that Greek food is not exactly what comes to mind when you hear the word “Thanksgiving,” yet why not consider this cuisine if you’re searching for a meatless main dish that will please a crowd? It’s certainly a better idea, in my mind, than Tofurky and all of the other overprocessed attempts at making a vegan turkey. If you want to serve something that will be somewhat reminiscent of a turkey, make the stuffed acorn squashes in this week’s selection, and once they’re out of the oven, stick some feathers in the “rump,” as I did for the first vegetarian Thanksgiving I ever cooked: I stuffed and baked a huge crookneck squash, then decorated it with turkey feathers. The filling wasn’t nearly as good as the one you’ll get this week, but the creation was fun.

Here are five new vegetarian recipes for your Thanksgiving table — or any time.

Giant Beans With Spinach, Tomatoes and Feta: This delicious, dill-infused dish is inspired by a northern Greek recipe from Diane Kochilas’s wonderful new cookbook, “The Country Cooking of Greece.”

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Northern Greek Mushroom and Onion Pie: Meaty portobello mushrooms make this a very substantial dish.

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Roasted Eggplant and Chickpeas With Cinnamon-Tinged Tomato Sauce and Feta: This fragrant and comforting dish can easily be modified for vegans.

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Coiled Greek Winter Squash Pie: The extra time this beautiful vegetable pie takes to assemble is worth it for a holiday dinner.

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Baked Acorn Squash Stuffed With Wild Rice and Kale Risotto: Serve one squash to each person at your Thanksgiving meal: They’ll be like miniature vegetarian (or vegan) turkeys.

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Privatizing Greece, Slowly but Not Surely

Eirini Vourloumis for The International Herald Tribune

Potential privatization hit a wall at Katakolo, a seaside town where Christos Konstantopoulos paused near abandoned beachfront homes. More Photos »

THE government inspectors set out from Athens for what they thought was a pristine patch of coastline on the Ionian Sea. Their mission was to determine how much money that sun-kissed shore, owned by the Greek government, might sell for under a sweeping privatization program demanded by the nation’s restive creditors.

What the inspectors found was 7,000 homes — none of which were supposed to be there. They had been thrown up without ever having been recorded in a land registry.

“If the government wanted to privatize here, they would have to bulldoze everything,” says Makis Paraskevopoulos, the local mayor. “And that’s never going to happen.”

Athens agreed. It scratched the town, Katakolo, off a list of potential properties to sell. But as Greece redoubles its efforts to raise billions to cut its debt and stoke its economy, the situation in Katakolo illustrates the daunting hurdles ahead.

In the three years since the International Monetary Fund, the European Central Bank and the European Commission — the so-called troika of lenders — first required Greece to sell state assets, a mere 1.6 billion euros have been raised. Last Tuesday, European leaders said Greece needed an additional 15 billion euros in aid through 2014 to meet debt-reduction targets — partly because Athens has failed to make money on privatization.

Now, the troika may consider cutting an already lowered target for Greece to raise 19 billion euros by 2015 to about 10 billion euros as investors worry that Greece may have to leave the euro. The troika is requiring that Greece must still raise 50 billion through privatizations by 2022.

The I.M.F. estimates that those funds, should they materialize, will trim only up to 1 percent from Greece’s debt, which is expected to rise to a staggering 189 percent of the nation’s economic output in 2013, from 175 percent this year.

But with Greece’s economy headed into its sixth year of recession, and unemployment at 25 percent, the nation’s immediate goal is to lure any investment it can through long-term leases on state properties to create jobs and get money flowing into depleted public coffers.

“This could put the economy back in motion,” says Andreas Taprantzis, the executive director of the Hellenic Republic Asset Development Fund, a new agency set up to hasten privatization. If investors develop land, restructure highways or build business parks, the activity would “help employment, which is a major issue for Greece,” he says.

Indeed, privatization is one of the last hopes here for luring foreign cash.

Efforts stumbled anew last summer, when the government fell and two chaotic elections were held, amplifying fears of what is known in financial circles as a “Grexit” — a Greek exit from the euro. Investor confidence fell so low that a recent survey by the BDO consulting firm found that Greece was considered more risky for investment than Syria.

Yet as Prime Minister Antonis Samaras took steps last week to secure an additional 31.5 billion euros of bailout money from creditors, the thinking is that if one major asset can be sold now, investors will feel better about spending their money on Greece.

OFFICIALS are trotting out Greece’s most tempting offer: OPAP, the highly profitable gambling company in which the government has a major stake. Its gambling agencies abound around Athens and in Greek villages. Last week, as the government went on a road show to China to drum up investor interest, eight bids landed, including one from a Chinese concern.

Still, Mr. Taprantzis’s agency faces a daunting task. The idea of the country selling off its crown jewels touches a raw nerve here. Many Greeks say the government is buckling to decrees from the troika. Citizen protests have flared over nearly every state asset up for offer, including ones that have long bled cash — even if shedding them would help Greece’s finances.

Others say the government is so desperate that prime assets will be sold too cheaply. In the case of OPAP, Greeks grumble about the government’s logic in selling one of the few things that brings a steady stream of money to the treasury.

Given the culture of clientelism that pervades business dealings in Greece, others are concerned that properties will wind up in the hands of powerful Greek oligarchs who, these critics worry, may be waiting for an opportunity to get them at a cut-rate price.

Dimitris Bounias contributed reporting.

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UCLA's Shabazz Muhammad cleared by NCAA, eligible to compete now

UCLA freshman Shabazz Muhammad is eligible to play for the Bruins men's basketball team immediately, the NCAA announced Friday when it reinstated him after hearing an appeal from the university.

Muhammad, a 6-foot-6 swingman listed by many as the nation’s top high school recruit last year, will travel with UCLA to New York on Saturday for its games in the Legends Classic tournament, and he's expected to make his college debut Monday when the No. 13 Bruins (3-0) play Georgetown (2-0).

“I am excited to be able to play for UCLA starting next Monday," Muhammad said in a statement.

"My family and friends were very supportive of me throughout this process and I couldn’t have gone through this without them.”

The 5 p.m. PST game will be held at the Barclays Center in Brooklyn and will be televised on ESPN2. 

"Look out New York City," said Bill Trosch, the attorney for the Muhammad family.

The Las Vegas native has yet to play for the Bruins this season after the NCAA declared him ineligible on Nov. 9 for violating its amateurism rules following an investigation that spanned more than a year.

“I am relieved that this long, arduous process has come to an end," UCLA Coach Ben Howland said in a statment. "So many people worked very hard on this case and I am eternally grateful to them as well as the Bruin family, who stood by us throughout. I am pleased that Shabazz will be able to begin his collegiate career.” 

Said Trosch: "There were many times during the investigation that my faith in the NCAA wavered. I understand the NCAA’s ruling, and am grateful that they have done the right thing, allowing Shabazz back on the court."

In its Nov. 9 ruling, the NCAA said that in addition to other "pending issues," Muhammad accepted airfare and lodging for three unofficial recruiting visits. The visits, to Duke and North Carolina, were paid for by financial advisor Benjamin Lincoln.

The Muhammad family has said Lincoln is a longtime family friend whose assistance should be allowed under NCAA rules.

The school and NCAA enforcement agreed on the facts of the case, and therefore it was determined by the NCAA that Muhammad couldn’t play in UCLA's season opener against Indiana State, said a person with knowledge of the situation who is not allowed to speak publicly about it.

But UCLA disagreed that a violation occurred and formally appealed the NCAA’s decision earlier this week.

The NCAA appeals committee had a hearing Friday with UCLA and, after several hours, a decision was rendered. 

In a statement, the NCAA said that UCLA acknowledged amateurism violations occurred and asked the NCAA on Friday to reinstate Muhammad with conditions.

The school required Muhammad to sit 10% of the season (three games) and to repay about $1,600 in impermissible benefits, the approximate cost of the three unofficial trips paid for by Lincoln.

But because Muhammad has already sat out three games, he has served his suspension and is eligible to compete immediately.

"I’m delighted that Shabazz can join the team on Monday and hopefully will have a successful season with UCLA," said Robert Orr, Muhammad's attorney. "I’m appreciative of the tenacious effort by the UCLA administration to try and help Shabazz in this. They’re to be commended for all they’ve done."

UCLA Athletic Director Dan Guerrero said the Bruins family is "extremely grateful" the matter is over.

"This entire process has been challenging on many fronts, but we believe strongly in the principles of fairness, integrity and due process," he said in a statement.

"We are satisfied with the outcome and pleased that Shabazz will be able to join his teammates on the floor, representing UCLA in Brooklyn on Monday night.” 

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New Variety owner Jay Penske slashes one-quarter staff

LOS ANGELES (TheWrap.com) – Jay Penske, the new owner of Variety, laid off nearly a quarter of the company’s staff on Thursday.

Between 20 and 25 employees from the struggling Hollywood trade’s circulation, database and conference departments were laid off. The editorial staff was not affected. Variety had about 120 employees before Thursday’s cuts.

“Without a doubt, this is a challenging day, and I particularly wanted to notify and acknowledge those of you who will be saying goodbye to valued colleagues and friends,” Penske, the CEO of Penske Media Corporation wrote in a memo obtained by the industry blog Deadline, which he also owns. “As we look ahead, Variety’s business holds almost limitless potential and I will remain available to answer any questions you might have regarding today’s changes and our future.”

Penske bought the paper last month at the fire-sale price of $ 25 million. In his memo, Penske said that he planned to invest in the editorial and digital departments while trimming the database services and business branch.

The jobs eliminated came from the LA411 and NY411 units – directories for production resources – and its administration and conference units, according to the memo. Deadline said that the cuts totaled 20 to 25 employees.

He also cut circulation staff, in what may presage a move to cut back on the paper’s printing schedule. Variety currently prints daily during the week and a weekly edition on Friday.

TheWrap previously reported that Penske planned to maintain the print edition and drop the paywall that blocked non-subscribers from reading Variety’s site, placing it in direct competition with competitors like the Hollywood Reporter, TheWrap and its corporate sister Deadline. The paywall has since been torn down.

Neither Penske nor Variety returned calls or emails from TheWrap requesting comment.

Here’s the full memo:

Dear Team

For the past six months, we have diligently reviewed every aspect of the Variety business. And in more recent weeks, we have outlined to Variety senior management an exciting and also aggressive trajectory for the brand’s resurgence. These steps will include substantial further investment in editorial and digital, but will unfortunately require some immediate eliminations in the following business units: LA411/NY411, Circ, Systems, Conferences, and Admin.

Without a doubt, this is a challenging day, and I particularly wanted to notify and acknowledge those of you who will be saying goodbye to valued colleagues and friends. As we look ahead, Variety’s business holds almost limitless potential and I will remain available to answer any questions you might have regarding today’s changes and our future. As always, please don’t hesitate to reach out to me, or see Tammy Chase to arrange an appointment.

Sincerely,

Jay Penske

CEO

Celebrity News Headlines – Yahoo! News

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N.F.L. Paid Millions Over Brain Injuries, Article Says

Three retired N.F.L. players received at least $2 million in disability payments as a result of brain trauma injuries from their playing days, according to an article by ESPN and the PBS series “Frontline.”

The payments were made in the 1990s and early 2000s by the Bell/Rozelle N.F.L. Player Retirement Plan, a committee comprising representatives of the owners, players and the N.F.L. commissioner.

The N.F.L. is being sued by several thousand retired players who accuse the league of concealing a link between head hits and brain injuries. The league denies the accusation and has said it did not mislead its players.

The article, however, cites a letter written in 2000 from the director of the retirement plan who stated that Mike Webster, who retired in 1990, had a disability that was “the result of head injuries he suffered as a football player with the Pittsburgh Steelers and the Kansas City Chiefs.”

Webster died in 2002. The article cites similar payments to Gerry Sullivan, a Browns lineman, and a third, unnamed player.

The article provides more details than were known about Webster’s case; his fight for disability benefits was known. The retired players say in their complaint that “the N.F.L.’s own physician independently examined Webster and concluded that Webster was mentally ‘completely and totally disabled as of the date of his retirement and was certainly disabled when he stopped playing football sometime in 1990.’ ”

However, Greg Aiello, an N.F.L. spokesman, said that the ESPN report “underscores that we have had a system in place with the union for many years to address player injury claims on a case-by-case basis.” The disability plan, he said, was “collectively bargained with the players.”

“All decisions concerning player injury claims are made by the disability plan’s board, not by the N.F.L. or by the Players Association,” Aiello said.

The board has seven members: three owner representatives, three player representatives and one nonvoting representative of the commissioner.

The disclosures in the article came a day after Commissioner Roger Goodell spoke at the Harvard School of Public Health, where he trumpeted the league’s efforts to increase the safety of its players and proclaimed that “medical decisions override everything else.”

Jeffrey Standen, a law professor at Willamette University in Oregon, said the details about Webster’s disability payments did not amount to a smoking gun. The plan’s determination that Webster sustained head injuries is not the same as the N.F.L. making that decision.

“The problem is the N.F.L. didn’t make the admission; it was the board,” Standen said. “They’re not the same body. As a legal matter, the fact that they paid Webster is not going to matter much in legal terms. But it’s evidence to throw in front of a jury.”

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Trying to Keep Your E-Mails Secret When the C.I.A. Chief Couldn’t

If David H. Petraeus couldn’t keep his affair from prying eyes as director of the Central Intelligence Agency, then how is the average American to keep a secret?

In the past, a spymaster might have placed a flower pot with a red flag on his balcony or drawn a mark on page 20 of his mistress’s newspaper. Instead, Mr. Petraeus used Gmail. And he got caught.

Granted, most people don’t have the Federal Bureau of Investigation sifting through their personal e-mails, but privacy experts say people grossly underestimate how transparent their digital communications have become.

“What people don’t realize is that hacking and spying went mainstream a decade ago,” said Dan Kaminsky, an Internet security researcher. “They think hacking is some difficult thing. Meanwhile, everyone is reading everyone else’s e-mails — girlfriends are reading boyfriends’, bosses are reading employees’ — because it’s just so easy to do.”

Face it: no matter what you are trying to hide in your e-mail in-box or text message folder — be it an extramarital affair or company trade secrets — it is possible that someone will find out. If it involves criminal activity or litigation, the odds increase because the government has search and subpoena powers that can be used to get any and all information, whether it is stored on your computer or, as is more likely these days, stored in the cloud. And lawyers for the other side in a lawsuit can get reams of documents in court-sanctioned discovery.

Still determined? Thought so. You certainly are not alone, as there are legitimate reasons that people want to keep private all types of information and communications that are not suspicious (like the contents of your will, for example, or a chronic illness). In that case, here are your best shots at hiding the skeletons in your digital closet.

KNOW YOUR ADVERSARY. Technically speaking, the undoing of Mr. Petraeus was not the extramarital affair, per se, it was that he misunderstood the threat. He and his mistress/biographer, Paula Broadwell, may have thought the threat was their spouses snooping through their e-mails, not the F.B.I. looking through Google’s e-mail servers.

“Understanding the threat is always the most difficult part of security technology,” said Matthew Blaze, an associate professor of computer and information science at the University of Pennsylvania and a security and cryptography specialist. “If they believed the threat to be a government with the ability to get their login records from a service provider, not just their spouse, they might have acted differently.”

To hide their affair from their spouses, the two reportedly limited their digital communications to a shared Gmail account. They did not send e-mails, but saved messages to the draft folder instead, ostensibly to avoid a digital trail. It is unlikely either of their spouses would have seen it.

But neither took necessary steps to hide their computers’ I.P. addresses. According to published accounts of the affair, Ms. Broadwell exposed the subterfuge when she used the same computer to send harassing e-mails to a woman in Florida, Jill Kelley, who sent them to a friend at the F.B.I.

Authorities matched the digital trail from Ms. Kelley’s e-mails — some had been sent via hotel Wi-Fi networks — to hotel guest lists. In crosschecking lists of hotel guests, they arrived at Ms. Broadwell and her computer, which led them to more e-mail accounts, including the one she shared with Mr. Petraeus.

HIDE YOUR LOCATION The two could have masked their I.P. addresses using Tor, a popular privacy tool that allows anonymous Web browsing. They could have also used a virtual private network, which adds a layer of security to public Wi-Fi networks like the one in your hotel room.

By not doing so, Mr. Blaze said, “they made a fairly elementary mistake.” E-mail providers like Google and Yahoo keep login records, which reveal I.P. addresses, for 18 months, during which they can easily be subpoenaed. The Fourth Amendment requires the authorities to get a warrant from a judge to search physical property. Rules governing e-mail searches are far more lax: Under the 1986 Electronic Communications Privacy Act, a warrant is not required for e-mails six months old or older. Even if e-mails are more recent, the federal government needs a search warrant only for “unopened” e-mail, according to the Department of Justice’s manual for electronic searches. The rest requires only a subpoena.

Google reported that United States law enforcement agencies requested data for 16,281 accounts from January to June of this year, and it complied in 90 percent of cases.

GO OFF THE RECORD At bare minimum, choose the “off the record” feature on Google Talk, Google’s instant messaging client, which ensures that nothing typed is saved or searchable in either person’s Gmail account.

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Investigators find major flaws in L.A. Fire Department data

A long-awaited review of the Los Angeles Fire Department found the agency relied on inaccurate data, which provided the public with an erroneous portrait of the department’s performance that was used to make critical staffing decisions.

“All prior reporting data should not be relied upon until they are properly recalculated and validated,” the task force appointed by Fire Chief Brian Cummings concluded.

While the Fire Department has acknowledged some mistakes in its data, the 32-page report found more widespread problems and delves more deeply into a series of factors that contributed to the faulty figures. Among other things, the experts found systemic flaws in a 30-year-old computerized dispatch network and a lack of adequate training for firefighters assigned to complex data analysis.

INTERACTIVE: Check response times in your L.A. neighborhood

The probe was launched after department officials acknowledged earlier this year that LAFD performance reports released to City Hall leaders and the public made it appear rescuers were getting to emergencies faster than they actually were.

The task force report, scheduled to be discussed Tuesday by the Fire Commission, said the department has corrected the computer-system flaws that led to the inaccurate figures.

“The No. 1 goal was to restore confidence in the Fire Department's statistics in the eyes of the public and city leaders,” said Fire Commissioner Alan Skobin, who helped oversee the report. “We now have the ability to identify and pull out accurate data.”

Still, the report paints a picture of a department woefully behind in using technology to help speed up emergency responses and improve efficiency by analyzing thousands of dispatch records that churn through the department's computer system each day.

The report recommends installing GPS devices on fire units so dispatchers know their location at all times, an upgrade that has been discussed since at least 2009. That could ensure that the closest rescuers are sent to those in need.

The task force also said upgrades or replacement of the aging computer system at the heart of dispatch operations may be needed, as well as hiring professional analysts to scrutinize the data.

Some money has been set aside to help pay for the GPS upgrade and the dispatch system changes. But whether all the changes raised in the report could be funded is unclear, given that the LAFD already is projected to run a $5.2-million deficit in its current budget.

The report’s findings in some ways parallel recent probes by City Controller Wendy Greuel and Jeffrey Godown, an expert brought in by Mayor Antonio Villaraigosa as questions grew about the department’s performance figures.

The task force includes members of the chief’s own staff, as well as experts from USC, the RAND Corp. and the Los Angeles Police Department’s COMPSTAT unit, which is recognized for its crime data analysis.

Indeed, the Fire Department hopes to roll out its own version of the LAPD’s data-reporting system, called FIRESTATLA. It would allow managers, elected officials and the public access to regularly updated reports on detailed response times and other statistics by neighborhood, Skobin said. The new system is estimated to cost up to $500,000, he said.

In March, fire officials acknowledged that they had changed the way in which they evaluated response times without telling the public or city officials. Their method made it appear that crews surpassed national standards more frequently than they actually did.

Those faulty statistics were used by Cummings and other top fire officials to push for a new cost-cutting deployment plan that shut down firetrucks and ambulances at more than one-fifth of the city's 106 firehouses. Cummings initially defended the department’s data when questions arose about its accuracy.

Later, he acknowledged that yet another set of numbers used in reports on the proposed deployment changes were projections, not actual response times. Some council members said they might not have voted for the budget cuts had they been aware that projections were used.

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French mayor ends hunger strike after crisis aid

PARIS (Reuters) – A French mayor who went on hunger strike a week ago to demand emergency aid for his town ended his protest on Thursday and packed up the tent he had been sleeping in outside parliament after the government met his demands.

“I regret that things came to that but it was necessary,” Stephane Gatignon, mayor of Sevran, a poor town on the outskirts of Paris, told Reuters.

Gatignon slept six nights on the pavement outside the National Assembly to press his demand for 5 million euros ($ 6.4 million) of rescue aid, saying the economic crisis was pushing Sevran and dozens of other poor towns to the brink of ruin.

France’s cash-strapped government is seeking to slash its deficit in line with broader efforts to end a debt crisis that has plagued Europe for three years.

While the government is urging local authorities to do their part, it will increase aid to many of the poorest towns next year in a budget package that the lower house of parliament approved this week.

Gatignon said the government had indicated it was willing to deploy those funds in a way that would satisfy his demands. The office of urban affairs minister Francois Lamy did not respond to requests for comment.

The Sevran mayor looked weary but relieved after six days of consuming nothing but sugary tea.

“Today it’ll be a bit of broth, then some soup and slowly back to normal eating,” Gatignon said.

(Reporting by Emile Picy and Brian Love; Editing by Sonya Hepinstall and Robin Pomeroy)

Celebrity News Headlines – Yahoo! News

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High & Low Finance: Bank of America and MBIA Revisit the Mortgage Debacle

Two villains in the financial crisis — whose negligence, or worse, caused untold suffering when the property bubble burst — are fighting it out. They are battling in the courts, and now in the bond market, where lucky owners of one bond issued by a company that may yet go broke are being offered the chance to cash out at par value. Lawyers are cleaning up.The only people who don’t seem to be doing very well are those who are most deserving: the victims of the crisis.

The battle being fought on the most fronts is between Bank of America — the bank that made the critical mistake of acquiring Countrywide Financial, once the country’s largest mortgage lender — and MBIA, the troubled monoline insurer that now warns it may not be able to keep paying claims on structured finance securities unless the bank pays it billions for the sins of Countrywide.

The insurance claims that could well tilt MBIA into bankruptcy are likely to be made by Merrill Lynch, which Bank of America acquired during the financial crisis, not long after it bought Countrywide. Kenneth D. Lewis, the bank’s chief executive then, will go down in history as the Ado Annie of Wall Street, after the character in the musical “Oklahoma” who sang, “I always say ‘Come on, let’s go!’ just when I ought to say nix.”

There was a lot of that willingness to proceed while ignoring risks during the credit boom that preceded the crash. Nowhere was it on display more than in the transactions that led to the battles now being waged.

Put briefly, Countrywide sold a lot of mortgage loans to securitizations it created, and paid small premiums to MBIA to insure that investors would not lose money. MBIA issued that insurance after doing no work at all to verify that the loans met the stated criteria, instead relying on Countrywide’s assurances and promises it would buy back bad loans. The securities got top ratings from Moody’s and Standard & Poor’s, which also chose to trust rather than verify.

MBIA in those days — the securitizations in dispute covered second-mortgage loans issued between 2004 and 2007 — was a supremely confident organization. It had grown by selling insurance on municipal bonds, insurance that it was confident would never lead to any claims, or at least not to any significant ones. Other insurers had leapt into its market, and MBIA was fighting for market share in the rapidly growing securitization market.

In 2004, the insurer made a fateful decision, to stop doing due diligence on mortgage loans before it issued insurance on securities based on those loans. Countrywide says the evidence shows that MBIA thought premiums were so low that it needed to cut costs; MBIA says that had it taken the time to check, it would have lost the business to competitors.

Countrywide, also fighting for market share, was cutting corners, too. A lot of the home loans it made and put into securitizations seem not to have met the required criteria, a fact that would have been obvious with even minimal review efforts. But nobody was checking.

After the financial crisis exploded, it became clear that MBIA was in enough trouble that it would never be able to sell any new muni bond policies unless it did something. It came up with a clever idea to split in two. The good — United States muni bond — policies would go into one unit. The unit would be well capitalized and have no responsibility for the bad — the foreign government and structured finance — policies. MBIA got its regulator, what was then the New York State Insurance Department, to approve the deal before those who owned the structured finance policies found out about that.

One suit, in which Bank of America challenged the split, went to trial this year. It has been five months since the trial ended, but no verdict has been announced. Whatever that judge decides, an appeal is likely. Another judge, hearing a suit filed by MBIA claiming that Countrywide committed fraud in unloading bad mortgages into the insured securitizations, may soon decide whether to throw out the suit (as Countrywide wants) or declare MBIA a winner without a trial (as MBIA wants.)

Unfortunately for MBIA, the deadline for getting more cash is approaching. It expects to pay out a lot of money on one set of particularly foolish policies — with Merrill Lynch, now owned by that same Bank of America, as the recipient. It appears that MBIA will not have the cash to pay the claims, although it is not clear how soon that will happen.

Floyd Norris comments on finance and the economy at nytimes.com/economix.

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October home sales hit 3-year high; prices up 17% year over year

Consumer columnist David Lazarus talks with real estate reporter Alejandro Lazo, DataQuick analyst Andrew LePage and Bill McBride of the Calculated Risk blog about the strong October real estate numbers.

Southern California's real estate market bucked the typical fall slowdown last month, with buyers snapping up pricier homes and sales roaring up 18% over the prior month.

Sales hit a three-year high for an October, rising 25% from the same month last year. The median sale price for a Southland house last month was $315,000, equal to September and up 17% from October 2011, according to real estate research firm DataQuick.

A decline in the number of foreclosed homes has caused a shortage of inventory in entry-level neighborhoods, pushing up home prices. Demand from investors also remains strong, with these buyers snapping up a near-record level of homes last month.

"There is a growing appreciation of the fact that we've come to a sort of a point of inflection in the housing market," Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, said. "The housing market, for a large number of factors, is perceived as having turned a corner."

The region's median hit bottom at $247,000 in April 2009 and has slowly crawled its way up since. The median is the point at which half the homes in the area sold for more and half for less.

Quiz: Test your knowledge of business news

The rebound stems from more people chasing fewer homes. Interest rates remain near record-low levels, luring buyers. Investors with cash have poured into the market looking for cheap properties to flip or rent. And foreclosure resales have sunk to a five-year low, tightening the supply of cheap homes.

An estimated 21,075 newly built and previously owned houses and condominiums sold throughout the region last month. Coastal markets saw the biggest increases in sales — though every county posted double-digit gains compared with October last year. Orange County saw the biggest surge, with sales up 41%. Ventura rose 35%, San Diego, 31%, Los Angeles, 25%, San Bernardino, 18% and Riverside 13%.

Absentee buyers — investors and some second-home buyers — snapped up a near-record 28% of homes throughout the Southland last month. These investors paid a median $245,000, a 23% increase from October last year.

A recent report by real estate website Zillow showed that many investors and others are paying market value for foreclosed homes in the region, erasing the discount between foreclosed homes and regular properties. Discounts were marginal on bank-owned homes in September, with the discount in the Inland Empire just 2% and in the Los Angeles area 4% in September, Zillow said.

Bruce Norris, president of Norris Group, an investment company in Riverside that buys foreclosed homes, said he expects prices to increase in coming years as the Obama administration has encouraged banks to curtail foreclosures. That will push up prices, he said.

"It is policy driven," Norris said. "Since the policy is going to continue … you are about to see a pretty substantial price increase within the next two years."

Indeed, the high level of affordability ushered in by the housing crash could erode quickly in California. This week the California Assn. of Realtors reported that homes in the state are getting less affordable as property values rise. The group estimated that 49% of home buyers in the third quarter could afford a median-priced house in California, a decline from 51% last quarter. The rise in prices is offsetting the benefit to home shoppers from low mortgage interest rates.

Christopher Thornberg, a principal at Beacon Economics and one of the first to call attention to the housing bubble, said home shoppers should expect expensive housing in the Golden State for the foreseeable future. The reason: Construction of new homes remains highly expensive for builders.

"Why would it stop?" he said. "The economy is growing. Short of a fiscally led second recession, there is no reason in the world that it's going to do anything but to continue."

The region's lowest-cost areas — often those the most starved for inventory these days — posted the weakest sales numbers last month, according to DataQuick. The number of homes that sold below $200,000 in the region dropped 11% from October last year. Sales in these markets have slowed because of the drop in foreclosures, while increased demand has pushed up prices.

Sales of previously foreclosed-upon homes made up just 16% of the resale market last month, a drop from 17% last month and 33% in October 2011. Foreclosure resales peaked at 57% in February 2009.

In the meantime, sales surged in several mid- and higher-cost neighborhoods throughout Southern California in October, DataQuick said. Sales of homes between $300,000 and $800,000 increased 42% year over year. Sales of homes costing more than $500,000 were up 55% and sales of homes more than $800,000 rose 52%.

Bill McBride, lead writer for the housing blog Calculated Risk, said that with the upswing in prices homeowners are encouraged to keep their homes off the market.

"Why is there no inventory? I ask every real estate agent that, just to hear what they tell me. And they say people don't have enough equity in their homes and so they aren't listing them," McBride said. "That is a solid argument. But I also think the people are sensing that prices are going up and there is no urgency to sell."

alejandro.lazo@latimes.com

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