Two Mexican nationals charged in killing of U.S. Coast Guardsman









Federal prosecutors charged two Mexican nationals in connection with killing U.S. Coast Guardsmen Terrell Horne III after they allegedly rammed his vessel with a drug-smuggling panga boat.

The two men, boat captain Jose Mejia-Leyva and Manuel Beltra-Higuera, are expected to appear in court Monday afternoon to face charges that they killed a federal officer.


Horne, 34, of Redondo Beach, was killed Sunday after suspected smugglers in a panga rammed his vessel off the Ventura County coast. He died of severe head trauma, officials said.

The Redondo Beach resident was second in command of the Halibut, an 87-foot patrol cutter based in Marina del Rey. Authorities said they could not recall a Coast Guard chief petty officer being killed in such a manner off the coast of California.








Early Sunday morning, the Halibut was dispatched to investigate a boat operating near Santa Cruz Island, the largest of California's eight Channel Islands. The island is roughly 25 miles southwest of Oxnard.


The boat, first detected by a patrol plane, had come under suspicion because it was operating in the middle of the night without lights and was a "panga"-style vessel, an open-hulled boat that has become "the choice of smugglers operating off the coast of California," said Coast Guard spokesman Adam Eggers.


The Coast Guard cutter contains a smaller boat, a rigid-hull inflatable used routinely for search-and-rescue operations and missions that require a nimble approach. When Horne and his team approached in the inflatable, the suspect boat gunned its engine, maneuvered directly toward the Coast Guard inflatable, rammed it and fled.


The impact knocked Horne and another guardsman into the water. Both were quickly plucked from the sea. Horne had suffered a traumatic head injury. While receiving medical care, he was raced to shore aboard the Halibut. Paramedics met the Halibut at the pier in Port Hueneme and declared Horne dead at 2:21 a.m.


The second crew member knocked into the water suffered minor injuries and was treated and released from a hospital later Sunday. He was not identified.





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News Corp shutting down iPad newspaper ‘The Daily’ on December 15th












News Corp’s iPad newspaper “The Daily” is officially dead. Launched in February 2011, The Daily was a “ bold experiment in digital publishing and an amazing vehicle for innovation,” but like so many pioneering ideas, it “could not find a large enough audience quickly enough” to keep the publication going, according to Rupert Murdoch, the Chairman of News Corporation and Chairman and CEO of Fox Group. The Daily will officially cease publishing on December 15th and will see Jesse Angelo, its Editor-in-Chief and Executive Editor of The New York Post move into the role of Publisher for the latter. The Daily was supposed to signal a new era of app-based interactive newspapers, but alas, in a world of Flipboard, Instapaper and social media, finding a new channel to distribute and aggregate news has proven to be challenging, even for corporations with plenty of resources.


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Additional copies of ‘Lincoln’ headed to theaters












LOS ANGELES (AP) — “Lincoln” is marching to more movie theaters.


Disney, which distributed the DreamWorks film, is making additional prints of director Steven Spielberg‘s historical saga starring Daniel Day-Lewis to meet an unexpected demand that has left some moviegoers in Alaska out in the cold.












“To say that we’re encouraged by the results to date or that they’ve exceeded our expectations is an understatement,” said Dave Hollis, head of distribution at the Walt Disney Co. “We’re in the midst of making additional prints to accommodate demand and will have them available to our partners in exhibition by mid-December for what we hope will be a great run through the holiday and awards corridor.”


The film, which opened in wide release Nov. 9 and has earned $ 83.6 million in North America so far, has been unavailable at some smaller venues, such as the Gross Alaska theaters in Juneau.


But the extra prints are coming a little too late to fit the movie into the five-screen Glacier Cinemas theater during the holiday season, said Kenny Solomon-Gross, general manager of the Gross Alaska, which runs two theaters in Juneau and one in Ketchikan, Alaska.


“When we had the room for ‘Lincoln,’ Disney didn’t have a copy for us,” Solomon-Gross said Monday.


His film lineup is pretty booked through the end of the year, and he probably can’t screen “Lincoln” until after the first of the new year. Yes, the excitement over the film will have dimmed, but then the Academy Awards season will be stirring up, he said. That should kick up the buzz.


In the meantime, Solomon-Gross plans to head to Las Vegas this week and catch the film there.


___


Follow AP Entertainment Writer Derrik J. Lang on Twitter at http://www.twitter.com/derrikjlang . Associated Press writer Rachel D’Oro in Anchorage, Alaska, contributed to this report.


___


Online:


http://www.thelincolnmovie.com


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Global Update: GlaxoSmithKline Tops Access to Medicines Index


Sang Tan/Associated Press







GlaxoSmithKline hung on to its perennial top spot in the new Access to Medicines Index released last week, but its competitors are closing in.


Every two years, the index ranks the world’s top 20 pharmaceutical companies based on how readily they get medicines they hold patents on to the world’s poor, how much research they do on tropical diseases, how ethically they conduct clinical trials in poor countries, and similar issues.


Johnson & Johnson shot up to second place, while AstraZeneca fell to 16th from 7th. AstraZeneca has had major management shake-ups. It did not do less, but the industry is improving so rapidly that others outscored it, the report said.


The index was greeted with skepticism by some drugmakers when it was introduced in 2008. But now 19 of the 20 companies have a board member or subcommittee tracking how well they do at what the index measures, said David Sampson, the chief author.


The one exception was a Japanese company. As before, Japanese drugmakers ranked at or near the index’s bottom, and European companies clustered near the top. Generic companies — most of them Indian — that export to poor countries are ranked separately.


Johnson & Johnson moved up because it created an access team, disclosed more and bought Crucell, a vaccine company.


The foundation that creates the index now has enough money to continue for five more years, said its founder, Wim Leereveld, a former pharmaceutical executive.


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Deficit Talks Stumble Over Down Payment





WASHINGTON — For all the growing angst over the state of negotiations to head off a fiscal crisis in January, the parties are farthest apart on a relatively small part of the overall deficit reduction program — the down payment.




President Obama and the House speaker, John A. Boehner, are in general agreement that the relevant Congressional committees must sit down next year and work out changes to the tax code and entitlement programs to save well more than $1 trillion over the next decade.


But before that work begins, both men want Congress to approve a first installment on deficit reduction in the coming weeks. The installment would replace the automatic spending cuts and tax increases that make up the “fiscal cliff,” while signaling Washington’s seriousness about getting its fiscal house in order. That is where the chasm lies in size and scope.


Mr. Obama says the down payment should be large and made up almost completely of tax increases on top incomes, partly because he and Congressional leaders last year agreed on some spending cuts over the next decade but have yet to agree on any tax increases.


Republicans have countered by arguing for a smaller down payment that must include immediate savings from Medicare and other social programs. Republicans, using almost mirror-image language, have said that they do not want to agree to specific tax increases and vague promises of future spending cuts.


Senator Kent Conrad of North Dakota, chairman of the Budget Committee and part of a bipartisan “Gang of Six” senators who devised the two-stage process, said: “I think there’s a lot of confusion between the initial down payment and the framework. That’s for sure.”


The two biggest areas of dispute are tax increases and the big government health insurance programs, Medicare and Medicaid. On the health programs, neither side believes Congress could meaningfully overhaul them in the four weeks that remain before the fiscal deadline.


“Entitlement reform is a big step, and it affects tens of millions of people,” said Senator Richard J. Durbin, Democrat of Illinois, another architect of the two-stage framework. “It’s not just a matter of cutting spending in an appropriation. It’s changing policy. And that’s why I was reluctant to include it in the down-payment conversation. I want this to be a thoughtful effort on both sides that doesn’t jeopardize this program.”


But Republicans say that it is possible to make some initial changes to the programs in coming weeks. “There are simpler things that can be done,” said Senator Michael D. Crapo, Republican of Idaho and another Gang of Six member. “The real structural changes would come later.”


Mr. Crapo said Congress could agree on some additional cuts to health care providers and change the way inflation is calculated to slow not only automatic increases in Medicare and Social Security benefits, but also the annual rise in tax brackets.


Democrats instead argue that the down payment should consist of a combination of tax increases and cuts to programs outside Medicare, Medicaid and Social Security, like farm programs. Mr. Obama has pushed for a return to the top tax rates under President Bill Clinton.


Republican leaders have said that they are willing to raise new tax revenues — albeit not as much as Democrats want — but Republicans want taxes to rise by closing loopholes and curbing tax deductions and credits.


If the two sides are able to come to an agreement on the down payment, it would also likely fix targets for larger savings in the tax code and entitlement programs. The White House and Congress would then spend much of the next year trying to hash out the specific policy changes needed to hit those targets.


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Syria army pounds rebels around Damascus









BEIRUT — Fierce clashes and heavy government bombardment were reported Sunday on the outskirts of Damascus as the Syrian military pressed an offensive aimed at securing the capital and its vulnerable international airport.


Syrian warplanes and artillery pounded rebel-held positions to the south and east of the capital, opposition spokesmen said, continuing a pattern of heavy strikes that has continued for at least four days.


The government appears intent on creating a security cordon around the capital and along the road to the nation's international airport, where flights were interrupted last week because of clashes along the main airport road — which skirts several rebel-dominated districts. The government reportedly brought in troop reinforcements to secure the route to the airport, about 15 miles southeast of downtown Damascus.





The pro-government Al Watan newspaper reported Sunday that the Syrian army "has completely opened the gates of hell before all who would even consider approaching Damascus or planning to attack it."


Losing access to its international airport would be a major psychological and strategic blow for the beleaguered government of President Bashar Assad, which has seen a steady erosion of its territory.


In recent weeks, rebels have overrun a number of military bases, while also seizing oil wells and a hydroelectric facility. Rebels already control several border crossings into neighboring Turkey and large swaths of territory in northwestern and eastern Syria.


The official state news service reported Sunday that troops killed scores of "Al Qaeda terrorists" in various Damascus suburbs, including Zamalka and Dariya. The government routinely links rebels to Al Qaeda, though opposition commanders insist that brigades linked to Al Qaeda or inspired by Osama bin Laden's philosophy represent a small minority of the highly fragmented rebel force.


The recent fighting and bombardment near Damascus appear to be the heaviest in the capital since last summer, when the army cleared opposition fighters from much of the city in methodical, district-by-district sweeps. Many rebels retreated to working-class suburbs and semirural enclaves where they enjoy considerable support.


The government declared last summer's "cleanup" operation in the capital a major victory, but the renewed clashes suggest that the rebel force was not vanquished but mostly fell back outside Damascus to fight another day.


Inside Damascus, a series of car bombings — most recently on Saturday — have killed and wounded many civilians in recent weeks. The government has blamed "terrorists" for the attacks. The rebels deny targeting civilians and say car bombs are aimed at security installations.


Also on Sunday, government and opposition spokesmen reported that a car bomb exploded in a residential district in the central city of Homs, killing as many as 15.


The city, Syria's third most populous, has been under virtual government siege for months. Homs was a major focus of the armed rebellion before twin rebel operations last summer targeted the nation's two major cities, Damascus and Aleppo.


The opposition reports that as many as 40,000 people have been killed in the 20-month Syrian conflict. The government has not provided casualty figures.



patrick.mcdonell@latimes.com


Special correspondent Nabih Bulos contributed to this report.





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Young down by boardwalk for benefit show












NEW YORK (AP) — Neil Young said Sunday that he couldn’t see performing in the area devastated by Superstorm Sandy without doing something to help people who were affected by it.


Young and his longtime backing band, Crazy Horse, will hold a benefit concert for the American Red Cross‘ storm relief effort Thursday at the Borgata Hotel Casino & Spa in Atlantic City. The New Jersey coastline areas were hit hard by the storm in late October.












People in the New York area who suffered damage in the storm have been supporting him for 40 years, he said.


“I couldn’t see coming back here and just playing and have it be business as usual,” he said. Young is touring in the area, with concerts scheduled for Monday in Brooklyn and Tuesday in Bridgeport, Conn.


Minimum ticket prices for the standing-room show in Atlantic City will be $ 75 and $ 150, although Young notes there’s no maximum. He hopes to raise several hundred thousand dollars for the Red Cross.


Young said he was invited to join the Dec. 12 benefit at New York’s Madison Square Garden that will feature Bruce Springsteen, Paul McCartney, the Who, Kanye West and others, but had other obligations. Besides, there’s enough star power there, he said.


“It wasn’t going to make much difference whether I was there or not, so I decided to go someplace where I could make a difference,” he said.


Young performed at a televised benefit in 2001 following the Sept. 11 terrorist attacks, memorably covering John Lennon’s “Imagine.”


Fans can expect a two-hour plus rock show on Thursday with opening band Everest. No special guests are planned, although Young issued an invitation to “anyone who wants to come in and play with us that we know and we know can play.”


It’s hard to resist wondering whether Young’s epic “Like a Hurricane” will make it onto the set list, given the occasion.


“Anything’s possible,” Young said. “We have the equipment.”


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Some Economists Doubt Dire Effects From Tax Increases





As anxious investors assess their portfolios in light of expected tax increases on investment income, hedge fund manager Douglas Kass has a simple message: Relax.




Mr. Kass, the founder of Seabreeze Partners Management, thinks much of the investing world has overestimated how hard the markets and investors would be hit if tax rates on dividends and capital gains rise at the end of the year, as the White House has proposed.


Mr. Kass can look for support to several economists who have studied past changes in tax rates and found that the shifts had less of an impact on investor behavior than was initially expected.


That’s largely because a dwindling number of investors are subject to the taxes on investment gains that are set to rise at the end of the year, with most stocks held in accounts that are exempt from taxes.


For example, only 14.7 percent of American households have mutual funds in taxable accounts, down from as high as 23.9 percent in 2001, according to data from the Investment Company Institute.


Douglas A. Shackelford, an economist who has examined the 2003 legislation that lowered the tax rates on capital gains and dividends, said that when those changes were being put in place “people thought this would be revolutionary,” setting off a wave of changes in the way companies rewarded their investors, and how investors evaluated companies.


In the end, “it made a difference, but it certainly was not revolutionary,” said Mr. Shackelford, a professor of taxation at the University of North Carolina’s business school. The limited number of investors who were subject to the changes in 2003 has grown even smaller today, he said.


While data on the tax status of all stockholders is hard to come by, many economists agree than an increasing proportion of the entire equities market is now held by retirement investors whose holdings are not subject to current tax law; by foreign investors who don’t pay American taxes, or by institutional investors like insurance companies and pension funds that are exempt from taxes.


Sam Stovall, the chief investment strategist at S&P Capital IQ, said that even among individual investors who do pay the taxes, many have incomes under $250,000 and would not be subject to the increased rates on investment income proposed by the White House. The result Mr. Stovall is anticipating is that the coming changes will cause “a lot less of a hit than most people are making it out to be.”


Mr. Stovall and others who share his views are not discounting the potential disruption to the financial markets if the White House and Congress fail to reach any agreement on the broad set of tax increases and spending cuts scheduled to hit at the start of the year. The largest of these changes are not on investment income. An increase in the payroll tax, for example, could remove $95 billion from the take-home pay of Americans.


But even if a broad agreement is reached, many strategists are expecting that taxes will rise on investment income, with the White House proposing that for households earning over $250,000 the rate on dividends rise to a peak of 39.6 percent from the current 15 percent, and the rate on capital gains increasing to 20 percent from 15 percent.


Wealthy households will face an additional 3.8 percent charge on most investment income to help pay for the recent health care legislation.


Neil J. Hennessy, the founder of Hennessy Funds, said at a year-end investing event last week that if politicians allow the rates to rise as much as the White House has proposed, dividends will become much less attractive and there could have a “disastrous effect” on the willingness of investors to put money into stocks.


Some companies have already acted ahead of the changes, with Costco and Las Vegas Sands leading the way in issuing special dividends before the end of the year so their shareholders can take advantage of current tax rates. Some investors have sold off stocks that issue regular dividends expecting the companies to become less valuable once a greater proportion of dividend income is lost to taxes.


Andrew Garthwaite, an analyst at Credit Suisse, has predicted that if the White House’s view on investment taxes prevails, it could lead to a long-term reduction in the value of the Standard & Poor’s 500-stock index of as much as 5 percent. Mr. Garthwaite cautioned that the figure is likely to be lower, and that investors have already incorporated some of those losses into the market by selling stocks.


Mr. Kass disputed Mr. Garthwaite’s estimates in a note to clients, and said he was looking at market losses of at most 1.6 percent and more likely closer to 0.8 percent. Part of the disagreement arises from Mr. Kass’s contention that many people who are subject to tax are either uninformed about tax law — and unlikely to respond to changes — or more focused on the long-term performance of their portfolio than on short-term tax payments.


Mr. Kass said that even the losses he has predicted assume that wealthy people will be willing to cash out of their stock positions and stay out, something that he said is unlikely given the small returns available in other financial investments.


But an even larger source of misunderstanding has come from the difficulty of ascertaining the amount of all United States stocks held by people who will have to pay the new, higher tax rates. Foreign investors controlled 12.4 percent of American stocks in 2011, up from 8.8 percent in 2004, Treasury Department data shows.


Among the stocks that are held in the United States, 48 percent are held directly by households, down from 65 percent in 1988, according to Federal Reserve figures. And 40.7 percent of households have mutual funds in tax-exempt accounts.


But only some of these have income over $250,000 a year, and a portion of those people have their money in accounts protected from taxes. Eric Toder, a co-director of the Tax Policy Center, said as a result market prices should have little to do with the taxes paid on gains because prices are largely “being determined by tax-exempt investors and by foreign investors.”


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Tens of thousands of Islamists rally for Morsi in Cairo









CAIRO — Islamists in Egypt's capital rallied Saturday to support President Mohamed Morsi in what is emerging as a decisive battle with opposition forces in the country's messy political transition away from three decades of Hosni Mubarak's corrupt and undemocratic rule.


Tens of thousands of Muslim Brotherhood and ultraconservative Islamists marched in a counterdemonstration to an energized week-old protest across the Nile in Tahrir Square by opposition groups challenging Morsi's expanded powers. Islamists back the president for his religious ideology but say Morsi's central aim is to rid state institutions of the lingering influence of the Mubarak era.


"There are different segments of society here. Not everyone who supports Morsi is a radical Islamist," said Mohamed Hassanein, standing amid banners and the static of loudspeakers in front of Cairo University. "He is the president for all Egyptians. He is trying protect state institutions from remnants of the old regime."





Such have been the president's talking points since he took office in June. He and the Brotherhood explain his recent decree expanding his power and the frantic race by an Islamist-dominated assembly to finish a draft constitution as the path to parliamentary elections early next year to move the country forward. Morsi told the nation Saturday that a referendum on the constitution would be held Dec. 15.


"We hope to ascend into a new era of Egypt's history, to a bright future for our beloved people," the president said in an address to the assembly. "This is a breakthrough, the first truly representative constitution that protects the rights, freedoms and human dignity of all Egyptians."


The Brotherhood has painted many of those protesting against Morsi as Mubarak loyalists who have infiltrated a wider protest movement to disrupt Egypt's transition. That view is testament to the vast differences over how Morsi's supporters and detractors view the nation's troubled political climate, even as Cairo maneuvers to rise as a leading voice in the Arab world's changing political landscape.


Protesters in Tahrir accuse the president of overstepping his bounds, peddling conspiracies and accumulating power reminiscent of Mubarak while brushing aside court rulings to propel the Brotherhood's Islamist agenda. Morsi's supporters argue that he is a good man, if an inexperienced politician, who has been unfairly tainted by liberals and leftists in a dangerous counterrevolution.


Morsi and the Brotherhood face high stakes in coming weeks. Once an outlawed opposition movement, the Brotherhood is now the country's dominant political force. Yet it has made many missteps, reversing promises, angering opposition leaders and failing to stem economic turmoil. The march Saturday was a show of unity before the vote on the draft constitution, which, if not passed, would damage Morsi's credibility.


"I'm here to watch and see what is happening, not because I'm fully convinced of the president," said Walid Alnasr, an Egyptologist, standing in a tightening crowd of men with their ears bent toward him. "The country is suffering from years and years of corruption. Do you think these things can change in three or four or five months? The president is new. He should be given time."


As Alnasr spoke, a bearded man stood at the edge of the crowd, holding up a copy of the Koran in the sunlight. "God's law," he said, and walked away.


The rally was a mix of extremists, moderates, students, professionals, men in suits and peasants from the provinces, including one wearing a white turban who spoke of the need for sharia, or Islamic law, while others tried to hush him.


"Let somebody more educated speak," they said.


The peasant was undeterred: "We're not only here for Morsi. We're here for sharia."


Another man, Hamed Abdelhamid, said, "The people in Tahrir Square are only 1% of the population. They don't represent Egypt. Most of our population is religious and is behind the president."


But the nation's judiciary, notably the Supreme Constitutional Court dominated by Mubarak-era judges, has undercut Morsi and the Brotherhood's wider ambitions, in part by dissolving the Islamist-led parliament in June. The president's decree last month to place his office and the constitutional assembly above legal jurisdiction, a move meant to limit the court's power, drew outrage from Morsi's opponents.


The court was expected to rule Sunday to dissolve the assembly amid charges it was unrepresentative. Opposition groups say the proposed constitution is influenced by Islamic law and could set back civil rights. But with the assembly's work done, it remains uncertain what leverage the court has against a leader who has ignored its decisions.


Many of the Islamists at the rally showed contempt for the courts. A poster pictured a regal Morsi standing next to an unruly collection of caricatures depicting holdover officials from the Mubarak era, including a constitutional court judge made to look like Miss Piggy and Prosecutor-General Abdel Meguid Mahmoud, who resembled the Disney character Goofy.


"Morsi will save the nation," said Ayman Alshahat, a teacher waving a banner. "He will continue the revolution to take back state institutions.... This is for all Egyptian people. This is an invitation to negotiations that will move the country forward."


The opposition and the Islamists are far from compromise. The rally to support Morsi had been planned for Tahrir, but the Brotherhood switched venues to Cairo University to avoid clashes with antigovernment protesters. Brotherhood offices in several cities have been attacked and set ablaze, and officials fear more violence if tension is not eased.


There was no rancor at the Morsi rally, which with flapping flags and practiced chants was a model of sameness. Brotherhood security guards stood at barricades, checking bags and asking for identification cards. Police stayed far to the edges. Images of Morsi — thin graying beard, smile, face bordered by glasses — bobbed in the sunlight. A child with a microphone recited poetry.


"We need Morsi's decree at this critical time because remnants of the old regime are back in Tahrir Square," said Fatima Ibrahim, a black veil covering all but her eyes. "The square used to be for revolutionaries, but it is not anymore. It has been taken over by others. But we'll move forward as long as we stay behind the president."


As she spoke, Islamists chanted: "Bread. Freedom. Islamic sharia."


Across the river in Tahrir Square the chant was: "Bread. Freedom. Social Justice."


jeffrey.fleishman@latimes.com


Special correspondent Reem Abdellatif contributed to this report.





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App of the Week: Hooked












App Name: Hooked


Price: Free












Available Platforms: Android


What does this app do? Words with Friends, Angry Birds, Mahjong Connect – these are just a few of the popular apps in the Google Play Store for Android devices. For game app lovers, wading through the possibilities can be daunting.


Hooked, a game recommendation app developed by Hooked Media Group, can help.


“There are hundreds of thousands of apps out there people may really enjoy,” says Pita Uppal, CEO of the San Francisco based company.


Uppal, who recognizes people like to play with variety game apps but may have no idea what to try, likens Hooked to Netflix and Pandora rolled into one.


Once you download the app, Hooked analyses more than 40 factors, such as device type, the kinds of games a user has on his or her device, and usage statistics. By looking at what a consumer already has and how he or she is using those games, Hooked aims to offer users intelligent suggestions.


From the homescreen, select the menu button at the top and then search categories such as “Top Picks for You,” which provides a customized, star-rated list of recommendations. Press the tools key in the upper right hand corner and customize your recommendations by category, such as puzzle and racing, or by price.


Select “My Games”, and the app displays a dashboard of icons to help you understand your game activity. A folder icon, for example, shows what and how many games you have installed, and a clock icon tells you the amount of time you’ve spent playing a particular game. I spent an entire minute playing “Stupid Zombies.”


Logging in through Facebook or Google+ allows you to see what your friends and connections are playing, too.


Is it easy to set up? Yes, the 2.1MB app installs quickly. Log in with your account and go.


Should I try it? Hooked is like a personal shopper for game-loving app users, and the more you use it the more it understands what you might like. For the moment, it is only available for Android, but Uppal says the company plans to launch Hooked for iOS in the coming months.


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