The New Old Age Blog: Grief Over New Depression Diagnosis

When the American Psychiatric Association unveils a proposed new version of its Diagnostic and Statistical Manual of Mental Disorders, the bible of psychiatric diagnoses, it expects controversy. Illnesses get added or deleted, acquire new definitions or lists of symptoms. Everyone from advocacy groups to insurance companies to litigators — all have an interest in what’s defined as mental illness — pays close attention. Invariably, complaints ensue.

“We asked for commentary,” said David Kupfer, the University of Pittsburgh psychiatrist who has spent six years as chairman of the task force that is updating the handbook. He sounded unruffled. “We asked for it and we got it. This was not going to be done in a dark room somewhere.”

But the D.S.M. 5, to be published in May, has generated an unusual amount of heat. Two changes, in particular, could have considerable impact on older people and their families.

First, the new volume revises some of the criteria for major depressive disorder. The D.S.M. IV (among other changes, the new manual swaps Roman numerals for Arabic ones) set out a list of symptoms that over a two-week period would trigger a diagnosis of major depression: either feelings of sadness or emptiness, or a loss of interest or pleasure in most daily activities, plus sleep disturbances, weight loss, fatigue, distraction or other problems, to the extent that they impair someone’s functioning.

Traditionally, depression has been underdiagnosed in older adults. When people’s health suffers and they lose friends and loved ones, the sentiment went, why wouldn’t they be depressed? A few decades back, Dr. Kupfer said, “what was striking to me was the lack of anyone getting a depression diagnosis, because that was ‘normal aging.’” We don’t find depression in old age normal any longer.

But critics of the D.S.M. 5 now argue that depression may become overdiagnosed, because this version removes the so-called “bereavement exclusion.” That was a paragraph that cautioned against diagnosing depression in someone for at least two months after loss of a loved one, unless that patient had severe symptoms like suicidal thoughts.

Without that exception, you could be diagnosed with this disorder if you are feeling empty, listless or distracted, a month after your parent or spouse dies.

“D.S.M. 5 is medicalizing the expected and probably necessary process of mourning that people go through,” said Allen Frances, a professor emeritus at Duke who chaired the D.S.M. IV task force and has denounced several of the changes in the new edition. “Most people get better with time and natural healing and resilience.”

If they are diagnosed with major depression before that can happen, he fears, they will be given antidepressants they may not need. “It gives the drug companies the right to peddle pills for grief,” he said.

An advisory committee to the Association for Death Education and Counseling also argued that bereaved people “will receive antidepressant medication because it is cheaper and ‘easier’ to medicate than to be involved therapeutically,” and noted that antidepressants, like all medications, have side effects.

“I can’t help but see this as a broad overreach by the APA,” Eric Widera, a geriatrician at the University of California, San Francisco, wrote on the GeriPal blog. “Grief is not a disorder and should be considered normal even if it is accompanied by some of the same symptoms seen in depression.”

But Dr. Kupfer said the panel worried that with the exclusion, too many cases of depression could be overlooked and go untreated. “If these things go on and get worse over time and begin to impair someone’s day to day function, we don’t want to use the excuse, ‘It’s bereavement — they’ll get over it,’” he said.

The new entry for major depressive disorder will include a note — the wording isn’t final — pointing out that while grief may be “understandable or appropriate” after a loss, professionals should also consider the possibility of a major depressive episode. Making that distinction, Dr. Kupfer said, will require “good solid clinical judgment.”

Initial field trials testing the reliability of D.S.M. 5 diagnoses, recently published in The American Journal of Psychiatry, don’t bolster confidence, however. An editorial remarked that “the end results are mixed, with both positive and disappointing findings.” Major depressive disorder, for instance, showed “questionable reliability.”

In an upcoming post, I’ll talk more about how patients might respond to the D.S.M. 5, and to a new diagnosis that might also affect a lot of older people — mild neurocognitive disorder.

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”


This post has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this post misspelled the surname of a professor emeritus at Duke who chaired the D.S.M. IV task force. He is Allen Frances, not Francis.

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HCA Must Pay Kansas City Foundation $162 Million





HCA, the nation’s largest profit-making hospital chain, was ordered on Thursday to pay $162 million after a judge in Missouri ruled that it had failed to abide by an agreement to make improvements to dilapidated hospitals that it bought in the Kansas City area several years ago.




The judge also ordered a court-appointed accountant to determine whether HCA had actually provided the levels of charitable care that it agreed to at the time.


The ruling came in response to a suit filed in 2009 by a community foundation that was created when HCA acquired the hospitals. Among other things, the foundation was responsible for ensuring that HCA met the obligations outlined in the deal.


The dispute in Kansas City is the second time in recent years that HCA has come under legal fire from officials in communities that sold troubled nonprofit community hospitals to HCA.


In another dispute in New Hampshire in 2011, a judge ruled in HCA’s favor, deciding that Portsmouth Regional Hospital would remain part of HCA after community leaders tried to regain control. During testimony in a 2011 trial, a former hospital official claimed he had difficulties getting HCA to pay for what he and others described as critical equipment and facility upgrades.


In an e-mailed statement, a spokesman for HCA said the company was disappointed in the court’s ruling and intended to appeal. He also added that the two cases were “rare exceptions” and that the company had enjoyed positive relationships with communities across the country.


The suit is among several problems for HCA. The company disclosed last year, for example, that the United States attorney’s office in Miami had subpoenaed documents as part of an inquiry to determine whether unnecessary cardiology procedures had been performed at HCA hospitals in Florida and elsewhere. At stake in that case is whether HCA inappropriately billed Medicare and private insurers for the procedures. HCA has denied any wrongdoing.


Financially, Thursday’s judgment is a slap on the wrist for HCA, which posted net income of $360 million in just the third quarter of last year. But the ruling may reverberate beyond HCA as communities across the country put their troubled nonprofit hospitals up for sale.


In many cases, the buyers with the deepest pockets have been profit-making hospital chains that want to convert the community hospitals to profit status, typically agreeing to spend money to fix them and to maintain certain levels of charitable care in the community.


In 2011, for instance, Vanguard Health Systems, which went public that year and has as its largest shareholder the private equity firm Blackstone Group, bought eight hospitals in Detroit. As part of that deal, Vanguard Health agreed to spend $850 million over five years to fix and maintain the hospitals.


The trouble in the Kansas City area began a year after HCA acquired a dozen hospitals from Health Midwest in 2003 for $1.125 billion. As part of the deal, HCA agreed to make $300 million in capital improvements in the first two years and an additional $150 million in the following three. The hospital chain also agreed to maintain the levels of care that had been provided to low-income individuals and families in the area for 10 years.


But when the members of the Health Care Foundation of Greater Kansas City, a nonprofit created from the proceeds of the sale of the hospital, received their first report from HCA in 2004 they discovered the hospital was already way behind.


Of the $300 million it was supposed to spend in the first two years, its own documents showed it had spent only about $50 million, according to Mark G. Flaherty, one of the founding members of the foundation and its general counsel.


HCA’s reports to the foundation also indicated that the level of charitable care it provided at the system’s large inner-city hospital had fallen while charitable care provided at the more affluent suburban hospital had risen sharply, Mr. Flaherty said.


“That was a big red flag to us,” he said.


After repeatedly asking HCA executives for explanations but receiving none, the foundation sued HCA in 2009. The case went to trial for several weeks in 2011.


HCA argued in the trial that it had met its obligation to spend money on hospital facilities by building two new hospitals at a cost of hundreds of millions of dollars, rather than repairing older facilities. But Judge John Torrence of Jackson County Circuit Court ruled that the agreement called for improvements to existing hospitals.


He said HCA still owed $162 million of the $300 million it had agreed to spend between 2003 and 2005. He then named a court-appointed forensic accountant to determine whether HCA had met its other capital commitments and whether it provided the charitable care it had said it would.


HCA’s own written statements claimed “differing amounts,” the judge wrote in his ruling. One HCA report said it provided $48 million in charitable care to the area in 2009 while another report on its Web site said it provided more than $87 million. The annual report to the foundation claimed it provided $185 million in uncompensated and charity care that year, the judge wrote.


During the trial, when asked about the widely differing numbers, the president of HCA’s Midwest division and other HCA executives had no explanation.


The money will be paid to the foundation, which will use it to create grants to provide care for uninsured or underinsured families in the area. It is unclear whether the spending on improvements will occur.


Depending on what the court-appointed accountant discovers, HCA may owe even more money, said Paul Seyferth of Seyferth Blumenthal & Harris, which represents the foundation.


“We think they’re going to have a tremendously difficult time convincing anybody that they spent what they claim they spent,” Mr. Seyferth said.


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Ki Suh Park dies at 80; architect helped rebuild L.A. after riots









From rubble and wreckage, Ki Suh Park often saw possibility. It was so as he stood amid the destruction of the Korean War, when he resolved to study architecture and help rebuild his homeland. And it was so as he drove down Western Avenue after the 1992 Los Angeles riots, when he vowed to help rebuild a community after the violence that wracked his adopted home.


Park, an architect who rose to become a leader in the city's Korean American community, died Jan. 16 at Stanford University Medical Center after a four-year battle with pancreatic cancer, his family said. He was 80.


Antonia Hernandez, an immigrant rights activist who served with him on Rebuild L.A., a campaign to help rebuild and revitalize riot-stricken areas, credits Park with representing the Korean community while encouraging consensus during a time when tensions were still raw.





"Ki Suh gave voice to these people and their concerns, their anger, their frustration, but he did it in a way that didn't add to the tension and the confrontation," Hernandez said this week in an interview with The Times.


Park loved the vibrancy and diversity of Los Angeles, and often said that the city gave him energy. He delighted in the concept of Korean tacos. "Only in America, only in L.A.," he would tell friends.


His journey to both places began with a letter.


Ki Suh Park was born March 15, 1932, in Seoul, Korea, the second of nine children of Seung Man Park, an agricultural geneticist, and Haechung Im Park, a schoolteacher. Park lived with relatives to continue his studies in Seoul after his parents left to find work.


As the Korean War began, Park was 18 and feared he'd be forced to join invading communist forces. He went into hiding.


"Guests are coming," his grandparents would warn as soldiers approached, and he and his sister would scramble to take cover behind furniture. Eventually, he made his way to Pusan, where he worked as a translator for the U.S. Joint Advisory Command.


When he told U.S. soldiers about his dreams of studying abroad, they encouraged him to write to American newspapers seeking sponsorship. He did, and the Los Angeles Times printed his letter on May 5, 1952.


"I am anxious to continue an education in the United States in order to be of value to the rebuilding of Korea," he wrote.


His words caught the interest of a number of luminaries, including illustrator Norman Rockwell and author James Michener. In the end, a friend of Rockwell's, a Montebello family, and an Indiana congressman helped Park immigrate. He even shook hands with future presidents Lyndon B. Johnson and John F. Kennedy.


"Today, Korea's buildings are broken and destroyed," a 21-year-old Park told The Times upon his arrival in March 1953. "But one day the war in Korea will be over. Then Korea will rebuild. I want to take part in rebuilding it."


But Park never would return to live in Korea, becoming an American citizen instead. He studied at East L.A. College and then UC Berkeley, where met and married his wife, Ildong. He graduated in 1957, a Phi Beta Kappa with a bachelor's degree in architecture, and went on to earn graduate degrees in architecture and city planning at MIT. He became a father, an architect, and soon, an Angeleno.


In 1961, Gruen Associates, a prominent architecture firm in Los Angeles, hired Park at a time when few firms had Asian Americans in their ranks. Early on, he and his family lived a simple life in an apartment on Westmoreland Avenue, near downtown. Often, he would come home, have dinner, and go back to the office to keep working.


"I had such faith in the future," Park told The Times in 1994. "Faith that if I work really hard and do my best, opportunity will open up for me and that's what attracted me to come to this country. I still believe that."


By the time he became a partner at Gruen in 1972, Park had earned a reputation for exacting standards and perfectionism. Anyone who worked with Park remembers toiling for hours on a drawing or memo, only to have it returned with typos and errors highlighted.


Thom Mayne, who worked under Park before becoming a premier architect, remembers the demands Park put on others, and on himself. "He just moved at the speed of light. He moved the way his brain moved. If you didn't move there with him, that was your problem," said Mayne, adding that Park influenced the way he runs his Morphosis practice today.


Park, who rose to managing partner of Gruen in 1981, oversaw a number of landmark Los Angeles projects, including the expansion of the Los Angeles Convention Center (along with Pei Cobb Freed and Partners), the planning and design of the 105 Freeway, the Koreatown Plaza, the Segerstrom Concert Hall in Orange County, and planning for the Metro Gold and Orange lines. The convention center and the 105 Freeway, in particular, were "urban environment game-changers," said Michael Enomoto, Gruen's current managing partner, who worked with Park for 40 years.


Park became known for the way he handled complex, multifaceted projects. During the contentious talks over the path of the 105 Freeway through a swath of urban neighborhoods, Park was credited with listening to residents' concerns about displacement and the effects on surrounding communities. He received plaudits for his work, becoming the first Korean American to be named to the College of Fellows of the American Institute of Architects in 1986.


Park also served on the boards of the county's Natural History Museum, the Korean American Museum in Koreatown and the California Community Foundation, among other civic organizations, insisting on the same high standards.


He approached his Rebuild L.A. efforts with the same seriousness, working to find common ground among Korean store owners and African American community members. "Our survival and the future of the city depend on it," he said. "The whole world lives in this city, and if we can make it happen, this can be the model for the future of the entire world."


Twenty years later, the measure of Rebuild L.A.'s successes is mixed.


"Sometimes, I feel like a tiny grain of sand," he told The Times in 1994. "But you can't remake the world overnight or remake the city overnight."


But always, he maintained faith in progress. "How do you know where you are in the ocean unless you have a benchmark?" he once told The Times.


For him, Park often said, his life's benchmarks were his children. His three sons attended UCLA, Harvard and Princeton. Two became lawyers, one a doctor. He is survived by his wife of 56 years, Ildong Park; sons David, Kevin and Edwin; four grandchildren and six siblings.


A memorial service will be held Thursday at 11 a.m. at the Westwood United Methodist Church, 10497 Wilshire Blvd., Los Angeles.


christine.maiduc@latimes.com





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Google dominates the mobile app market, has 5 of the top 6 apps in the U.S.







Wondering why Apple (AAPL) is sinking so much effort into building its own Maps application? Because it doesn’t want Google (GOOG) to gobble up all the revenue from big-name mobile applications. ComScore has published its most recent monthly review of the top iOS and Android apps in the United States ranked by unique visitors and has found that Google captured 5 of the top 6 spots with Google Maps, Google Play, Google Search, Gmail and YouTube. In fact, Facebook (FB) was the only non-Google app to crack the top 6, although it also had the benefit of being the most-visited app in the entire country by a margin of more than 10 million unique visitors. iTunes was the only Apple app to crack the top 10, meanwhile, as it ranked eighth with roughly 46 million unique visitors last month.


[More from BGR: As data gets cheaper for Verizon to transmit, customers are paying more]






This article was originally published on BGR.com


Wireless News Headlines – Yahoo! News





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Obama inauguration TV viewership down by 17.2 million from 2009






LOS ANGELES (Reuters) – Some 20.6 million Americans watched President Barack Obama’s inauguration ceremony and related events on television, according to ratings data on Wednesday. That’s down sharply from his first inauguration in 2009.


TV ratings company Nielsen said 18 U.S. television networks and cable channels carried live coverage over about six hours of Monday’s swearing-in ceremony, speech and parade in Washington.






Monday’s TV audience was a drop of 17.2 million from 2009, when 37.8 million Americans – the highest number since Ronald Reagan’s 1981 inauguration – watched Obama formally take office as the first black president in U.S. history.


The Nielsen figures did not measure viewers who watched Monday’s daylong ceremonies online via live streaming on many TV channels, nor overseas audiences.


Second-term inaugurations of U.S. presidents have traditionally drawn smaller numbers of viewers than those for first terms.


Reagan’s 1981 inauguration drew the biggest television audience of the past 44 years, attracting some 41.8 million U.S. viewers, according to Nielsen.


(Reporting By Jill Serjeant; Editing by Bill Trott)


TV News Headlines – Yahoo! News





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Well: Long Term Effects on Life Expectancy From Smoking

It is often said that smoking takes years off your life, and now a new study shows just how many: Longtime smokers can expect to lose about 10 years of life expectancy.

But amid those grim findings was some good news for former smokers. Those who quit before they turn 35 can gain most if not all of that decade back, and even those who wait until middle age to kick the habit can add about five years back to their life expectancies.

“There’s the old saw that everyone knows smoking is bad for you,” said Dr. Tim McAfee of the Centers for Disease Control and Prevention. “But this paints a much more dramatic picture of the horror of smoking. These are real people that are getting 10 years of life expectancy hacked off — and that’s just on average.”

The findings were part of research, published on Wednesday in The New England Journal of Medicine, that looked at government data on more than 200,000 Americans who were followed starting in 1997. Similar studies that were done in the 1980s and the decades prior had allowed scientists to predict the impact of smoking on mortality. But since then many population trends have changed, and it was unclear whether smokers today fared differently from smokers decades ago.

Since the 1960s, the prevalence of smoking over all has declined, falling from about 40 percent to 20 percent. Today more than half of people that ever smoked have quit, allowing researchers to compare the effects of stopping at various ages.

Modern cigarettes contain less tar and medical advances have cut the rates of death from vascular disease drastically. But have smokers benefited from these advances?

Women in the 1960s, ’70s and ’80s had lower rates of mortality from smoking than men. But it was largely unknown whether this was a biological difference or merely a matter of different habits: earlier generations of women smoked fewer cigarettes and tended to take up smoking at a later age than men.

Now that smoking habits among women today are similar to those of men, would mortality rates be the same as well?

“There was a big gap in our knowledge,” said Dr. McAfee, an author of the study and the director of the C.D.C.’s Office on Smoking and Public Health.

The new research showed that in fact women are no more protected from the consequences of smoking than men. The female smokers in the study represented the first generation of American women that generally began smoking early in life and continued the habit for decades, and the impact on life span was clear. The risk of death from smoking for these women was 50 percent higher than the risk reported for women in similar studies carried out in the 1980s.

“This sort of puts the nail in the coffin around the idea that women might somehow be different or that they suffer fewer effects of smoking,” Dr. McAfee said.

It also showed that differences between smokers and the population in general are becoming more and more stark. Over the last 20 years, advances in medicine and public health have improved life expectancy for the general public, but smokers have not benefited in the same way.

“If anything, this is accentuating the difference between being a smoker and a nonsmoker,” Dr. McAfee said.

The researchers had information about the participants’ smoking histories and other details about their health and backgrounds, including diet, alcohol consumption, education levels and weight and body fat. Using records from the National Death Index, they calculated their mortality rates over time.

People who had smoked fewer than 100 cigarettes in their lifetimes were not classified as smokers. Those who had smoked at least 100 cigarettes but had not had one within five years of the time the data was collected were classified as former smokers.

Not surprisingly, the study showed that the earlier a person quit smoking, the greater the impact. People who quit between 25 and 34 years of age gained about 10 years of life compared to those who continued to smoke. But there were benefits at many ages. People who quit between 35 and 44 gained about nine years, and those who stopped between 45 and 59 gained about four to six years of life expectancy.

From a public health perspective, those numbers are striking, particularly when juxtaposed with preventive measures like blood pressure screenings, colorectal screenings and mammography, the effects of which on life expectancy are more often viewed in terms of days or months, Dr. McAfee said.

“These things are very important, but the size of the benefit pales in comparison to what you can get from stopping smoking,” he said. “The notion that you could add 10 years to your life by something as straightforward as quitting smoking is just mind boggling.”

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DealBook | The Trade: An Asset So Toxic They Called It ‘Nuclear Holocaust’

On March 16, 2007, Morgan Stanley employees working on one of the toxic assets that helped blow up the world economy discussed what to name it. Among the team members’ suggestions: “Subprime Meltdown,” “Hitman,” “Nuclear Holocaust” and “Mike Tyson’s Punchout,” as well a simple yet direct reference to a bag of excrement.

Ha ha. Those hilarious investment bankers.

Then they gave it its real name and sold it to a Chinese bank.

We are never going to have a full understanding of what bad behavior bankers engaged in in the years leading up to the financial crisis. The Justice Department and the Securities and Exchange Commission have failed to hold big wrongdoers to account.

We are left with what scraps we can get from those private lawsuits lucky enough to get over the high hurdles for document discovery. A case brought in a New York State Supreme Court in Manhattan against Morgan Stanley by a Taiwanese bank, which bought a piece of the same deal the Chinese bank did, has cleared that bar.

The results are explosive. Hundreds of pages of internal Morgan Stanley documents, released publicly last week, shed much new light on what bankers knew at the height of the housing bubble and what they did with that secret knowledge.

The lawsuit concerns a $500 million collateralized debt obligation called Stack 2006-1, created in the first half of 2006. Collections of mortgage-backed securities, C.D.O.’s were at the heart of the financial crisis.

But the documents suggest a pattern of behavior larger than this one deal: people across the bank understood that the American housing market was in trouble. They took advantage of that knowledge to create and then bet against securities and then also to unload garbage investments on unsuspecting buyers.

Morgan Stanley doesn’t see the narrative as the plaintiffs do. The firm is fighting the lawsuit, contending that the buyers were sophisticated clients and could have known what was going on in the subprime market. The C.D.O. documents disclosed, albeit obliquely, that Morgan Stanley might bet against the securities, a strategy known as shorting. The firm did not pick the assets going into the deal (though it was able to veto any assets). And any shorting of the deal was part of a larger array of trades, both long and short. Indeed, Morgan Stanley owned a big piece of Stack, in addition to its short bet.

Regarding the profane naming contest, Morgan Stanley said in a statement: “While the e-mail in question contains inappropriate language and reflects a poor attempt at humor, the Morgan Stanley employee who wrote it was responsible for documenting transactions. It was not his job or within his skill set to assess the state of the market or the credit quality of the transaction being discussed.”

Philip Blumberg, the Morgan Stanley lawyer who composed most of the names, meet the underside of a bus, courtesy of your employer.

Another Morgan Stanley employee sent an e-mail that same morning, suggesting that the deal be called “Hitman.” This might have been an attempt to manage up, because “Hitman” was the nickname of his boss, Jonathan Horowitz, who helped head the part of the group that oversaw mortgage-backed C.D.O.’s. Mr. Horowitz replied, “I like it.”

Both Mr. Blumberg and Mr. Horowitz, now at JPMorgan, declined to comment through representatives at their banks.

In February 2006, Morgan Stanley began putting together the Stack C.D.O. According to an internal presentation, Stack “represents attractive business for Morgan Stanley.”

Why? In addition to fees, another bullet point listed: “Ability to short up to $325MM of credits into the C.D.O.” In other words, Morgan Stanley could — and did — sell assets to the Stack C.D.O., intending to profit if the securities backed by those assets declined. The bank put on a $170 million bet against Stack, even as it was selling it.

In the end, of the $500 million of assets backing the deal, $415 million ended up worthless.

“While investors and taxpayers all over the world continue to choke on Wall Street’s toxic subprime products, to this day not a single major Wall Street executive has been held accountable for misconduct relating to those products,” said Jason C. Davis, a lawyer at Robbins Geller who is representing the plaintiff in the lawsuit. “They are generally untouchable, but we are pleased that the court in this case is ordering Morgan Stanley to turn over damning evidence, so that the jury will get to see what Morgan Stanley really knew about the troubled nature of its supposedly ‘higher-than-AAA’ quality product.”

Why might Morgan Stanley have bet against the deal? Did its traders develop a brilliant thesis by assessing the fundamentals of the housing market through careful analysis of the public data? The documents suggest something more troubling: bankers found out that the housing market was diseased from their colleagues down the hall.

Bankers were getting information from fellow employees conducting and receiving private assessments of the quality of the mortgages that the bank would purchase to back securities. These reports weren’t available to the public. It would be crucial information for trading in securities backed by those kinds of mortgages.

In one e-mail from Oct. 21, 2005, a Morgan Stanley employee warned a banker that the mortgages Morgan Stanley was buying from loan originators were troubled. “The real issue is that the loan requests do not make sense,” he wrote. As an example, he cited “a borrower that makes $12K a month as an operation manger (sic) of an unknown company — after research on my part I reveal it is a tarot reading house. Compound these issues with the fact that we are seeing what I would call a lot of this type of profile.”

In another e-mail from March 17, 2006, another Morgan Stanley employee wrote about a “deteriorating appraisal quality that is very flagrant.”

Two of the employees who received those e-mails joined an internal hedge fund, headed by Howard Hubler, that was formed only the next month, in April 2006. As recounted in Michael Lewis’s “The Big Short,” Mr. Hubler infamously bet against the subprime market on Morgan Stanley’s behalf, a fact that Morgan Stanley’s chief financial officer conceded in late 2007. Mr. Hubler’s group was supposed to be separate from the rest of Morgan Stanley, but the two bankers continued to receive similar information about the underlying market, according to a person briefed on the matter.

At no point did they receive material, nonpublic information, a Morgan Stanley spokesman says.

I struggle to see how the private assessments that the subprime market was imploding were immaterial.

Another of Morgan Stanley’s main defenses is that it couldn’t have thought the investment it sold to the Taiwanese was terrible because it, too, lost money on securities backed by subprime mortgages. As the Morgan Stanley spokesman put it, “This deal must be viewed in the context of a significant write-down for Morgan Stanley in 2007, when the firm recorded huge losses in its public securities filings related to other subprime C.D.O. positions.”

This is a common refrain offered by big banks like Citigroup, Merrill Lynch and Bear Stearns to absolve them of any responsibility.

But does losing money wipe away sin?

Yes, Mr. Hubler made his bets in what turned out to be a deeply disastrous way. As part of a complex array of trades, he bet against the middle slices of subprime mortgage C.D.O.’s. He bought the supposedly safe top parts. The income from the top slices helped offset the cost of betting against the middle slices. But when the market collapsed, the top slices — called “super senior” because they were supposedly safer than Triple A — didn’t hold their value, losing billions for Mr. Hubler and Morgan Stanley. Mr. Hubler did not respond to requests for comment.

So Morgan Stanley lost a great deal of money.

But let’s review what the documents suggest is the big picture.

In the fall of 2005, bank employees shared nonpublic assessments of how the subprime market was a house of tarot cards.

In February 2006, the bank began creating Stack in part so that it could bet against it.

In April 2006, the bank created its own internal hedge fund, led by Mr. Hubler, who shorted the subprime market. Among the traders in this internal shop were people who helped create Stack and other deals like it, and at least two employees who had access to the private due diligence reports.

Mr. Hubler’s group had no investment position in Stack, according to the person briefed on the matter, but it sure looks as if the bank saw what was coming and tried to position itself for a subprime market collapse.

Finally, by early 2007, the bank appeared to realize that the subprime market was faring even worse than it expected. Even the supposedly safe pieces of C.D.O.’s that it owned, including its piece of Stack, were facing losses. So Morgan Stanley bankers set to scouring the world to peddle as a safe and sound investment what its own employees were internally deriding.

Morgan Stanley declined to comment on whether it made money on its Stack investments over all. But it looks to have turned out well for the bank. In Stack, it managed to fob off a nuclear bomb to the Taiwanese bank.

Unfortunately for Morgan Stanley, it had so many other pieces of C.D.O.’s, so many nuclear warheads, that it couldn’t find nearly enough suckers around the world to buy them all.

And so when the real collapse came, Morgan Stanley was left with billions of dollars in losses.

That hardly seems exculpatory.


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Marijuana still a drug with no accepted medical use, court says









WASHINGTON — Marijuana will continue to be considered a highly dangerous drug under federal law with no accepted medical uses, after a U.S. appeals court Tuesday refused to order a change in the government's 40-year-old drug classification schedule.

The decision keeps in place an odd legal split over marijuana, a drug deemed to be as dangerous as heroin and worse than methamphetamine by federal authorities, but one that has been legalized for medical use by voters or legislators in 20 states and the District of Columbia.

A marijuana advocacy group went to court, arguing that federal officials had a duty to reexamine the medical evidence and reclassify marijuana as a drug that has clear benefits for those who are suffering and in pain. Joe Elford, counsel for Americans for Safe Access, said federal drug officials had a bias against marijuana that caused them to ignore its benefits and to exaggerate its dangers.

But three judges said they had a duty to defer to the judgment of federal health experts who had concluded they needed more evidence before reclassifying marijuana.

"To establish accepted medical use, the effectiveness of a drug must be established in well-controlled, well-designed, well-conducted and well-documented scientific studies [with] a large number of patients. To date, such studies have not been performed," the Drug Enforcement Administration said in defense of its decision. The passage was quoted in Tuesday's opinion.

Judge Harry Edwards, writing for the Court of Appeals for the District of Columbia, said the judges did not dispute that "marijuana could have some medical benefits." Instead, he said, they were not willing to overrule the DEA because they had not seen large "well-controlled studies" that proved the medical value of marijuana.

"We're disappointed, but not surprised," said Steph Sherer, executive director of Americans for Safe Access. She said more than 1 million patients used marijuana as medicine across the nation.

She said the group would appeal to the Supreme Court. "We are also turning our attention to Congress. It is time we had a conversation about marijuana at the federal level," she said.

In December, President Obama and Sen. Patrick J. Leahy (D-Vt.), chairman of the Senate Judiciary Committee, said they were prepared to reconsider federal law that makes possession of small amounts of marijuana a crime. They were reacting to voters in Colorado and Washington who opted to permit recreational users to have an ounce of marijuana at home.

"So, what we're going to need to have is a conversation about how do you reconcile a federal law that still says marijuana is a federal offense and state laws that it's legal," Obama told ABC News.

Leahy said he would consider legislative proposals that could relax federal enforcement against small amounts of marijuana.

david.savage@latimes.com



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Google’s fourth quarter results shine after ad rate decline slows






SAN FRANCISCO (Reuters) – Revenue from Google Inc’s core Internet business outpaced many analysts’ expectations during the crucial holiday quarter and advertising rates fell less than in previous periods, pushing its shares up more than 4 percent.


The world’s largest Internet search company introduced new product listings during the fourth quarter – typically its strongest – and also benefited from business growth in international markets, analysts said.






Excluding traffic-acquisition costs, the business generated net revenue of $ 9.83 billion, up from $ 8.13 billion a year earlier, Google reported on Tuesday. That surpassed a $ 9.6 billion average forecast from six analysts polled by Reuters.


“Business looked really strong, especially from a profitability perspective. They really grew their margins in the core business,” said Sameet Sinha, an analyst with B. Riley Caris. “Most of that strength seems to be coming from international markets which grew revenues quite substantially: up 23 percent year over year, versus the 15 percent growth in the third quarter.”


Average cost-per-click, a critical metric that denotes the price advertisers pay Google, declined 6 percent from a year ago, the fifth consecutive quarter of decline.


Google executives told analysts on a conference call that the company had focused on improving the metric – shoring up margins – while lowering the overall growth rate of paid clicks in the holiday quarter.


“Click prices are still declining, but it’s better than expected,” said BGC Partners analyst Colin Gillis.


MOTOROLA MOBILITY “STILL LOSING MONEY”


Consolidated net income in the fourth quarter was $ 2.89 billion or $ 8.62 per share, compared with $ 2.71 billion, or $ 8.22 per share, in the year-ago period when Google had not yet acquired Motorola.


Excluding certain items, Google said it earned $ 10.65 per share in the fourth quarter.


“The core business is a great business and the fourth-quarter is always a time for Google to shine. However, Motorola is still losing money and click rates still declined. They only declined 6 percent, but go back four or five quarters and click prices were improving. So mobile is still pressuring click prices,” Gillis said.


The company posted consolidated revenue – which includes its Motorola Mobility mobile phone business but not the television set-top box business it recently agreed to sell – of $ 14.42 billion on Tuesday.


Motorola Mobility had an operating loss of $ 353 million during the quarter.


Shares of Google were up roughly 4.5 percent at $ 734.46 in after-hours trading on Tuesday.


(Reporting By Alexei Oreskovic; Editing by Bernard Orr)


Tech News Headlines – Yahoo! News





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“Zero Dark Thirty” heads to Europe: will torture controversy follow?






LOS ANGELES (TheWrap.com) – Best Picture Oscar nominee “Zero Dark Thirty” rolls out in several Western European countries starting Wednesday, absent – at least for now – the firestorm of criticism that has accompanied its U.S. release.


The movie has been a lightning rod for detractors in the U.S. over its perceived endorsement of torture, an allegation that director Kathryn Bigelow and Sony executives have repeatedly denied.






“Overall, I believe Europeans are far less ambiguous than Americans when it comes to the use of torture,” Bruce Nash of box-office tracking service TheNumbers told TheWrap.


“To the extent that the film is perceived as pro-torture — whether it is or not, and I don’t believe it is — if that somehow became how the film is defined, that would hurt it at the box office,” Nash said. “But I don’t think that’s the case.”


Bigelow, screenwriter Marc Boal and several others involved with the picture have been in Europe for the past two weeks to promote the film. Boal told the New York Times that interviewers in France seemed to regard the torture issue as belonging to the Americans, and in fact appreciated the film’s head-on approach.


Indeed, the film begins its foreign run with a lot of momentum. The dark thriller about the hunt for Osama bin Laden was No. 1 in its first week of wide release on January 11 and has finished a strong second for the past two weeks.


Of course, the publicity surrounding the torture issue hasn’t hurt it at the box office in the U.S. The domestic haul for “Zero Dark Thirty” to this point is nearly $ 57 million, ahead of pre-release projections and likely heading for $ 100 million.


The film’s five Oscar nominations and the critical acclaim it has received have helped, too, but even Sony has acknowledged the flood of news stories raised the film’s profile.


Universal will be handling the film’s release in most countries in Western Europe, after buying rights to those territories from Megan Ellison’s Annapurna Pictures, which financed it and cut distribution deals territory by territory.


It will open in France and Switzerland on Wednesday and in the U.K and Finland on Friday. Its debut in Germany will be on January 31, and Austria, Sweden, Denmark, Italy, Norway and South Africa will follow in February. Regional distributors will handle the film’s February releases in Russia and Latin America, and the Annapurna is still considering a China run.


“Zero Dark Thirty” is one of three Best Picture Oscar nominees that is currently hitting overseas theaters with a distributor different than the one that handled its U.S.release.


Sony, which along with the Weinstein Company co-financed “Django Unchained,” is overseeing the foreign release of Quentin Tarantino’s slave saga. It opened last weekend and took in $ 48 million from 54 overseas markets.


DreamWorks’ “Lincoln,” distributed by Disney in North America, debuted in Spain and Mexico this past weekend via Fox.


With an explanatory preamble approved by director Steven Spielberg added, “Lincoln” opened to $ 2.3 million on 344 screens in Spain and to $ 729,000 on 259 screens in Mexico. “Lincoln” goes much wider next weekend, when it opens in 19 markets including Brazil, Germany, Italy, Russia and the U.K..


As for the torture controversy that accompanied “Zero Dark Thirty’s” U.S. release, it doesn’t seem to have caused the slightest ripple.


Indeed, the fact that torture has been used in the war against terror has been seen as a reality in Europe for some time.


In December, Europe’s highest court, the Grand Chamber of the European Court of Human Rights, concluded that techniques used routinely by the Bush-era CIA in connection with its extraordinary-renditions program constituted torture.


If torture does not become an issue, The Numbers’ Nash said it should do solid business. He pointed out that other U.S. films about the war on terror have done pretty well overseas. In 2006, “United 93″ made $ 31 million domestically and nearly $ 45 million overseas. Oliver Stone’s “World Trade Center” did $ 70 million in the U.S. and went to make $ 92 million abroad that same year.


Bigelow’s last movie, “The Hurt Locker,’” was about a U.S. bomb squad in the Iraq war, and it nearly doubled its $ 17 million domestic take, with $ 32 million from abroad in 2009. The bulk of that foreign run came after its surprise victory over “Avatar” for the Best Picture Oscar, however.


This weekend’s U.K. and France debuts will be telling, but Universal quietly opened “Zero Dark Thirty” on just 250 screens in Spain on January 4. With a minimum of criticism, politicians’ ire or public furor, the movie has taken in nearly $ 4 million over three weekends.


Movies News Headlines – Yahoo! News





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