A-Rod implicated in PED use again as MLB probes


NEW YORK (AP) — Alex Rodriguez is in the middle of Major League Baseball's latest doping investigation after an alternative weekly newspaper reported baseball's highest-paid star was among the big leaguers listed in the records of a Florida clinic the paper said sold performance-enhancing drugs.


The Miami New Times said Tuesday that the three-time AL MVP bought human growth hormone and other performance-enhancing substances during 2009-12 from Biogenesis of America LLC, a now-closed anti-aging clinic in Coral Gables, Fla., near Rodriguez's offseason home.


The new public relations firm for the New York Yankees third baseman issued a statement denying the allegations.


New Times said it obtained records detailing purchases by Rodriguez, 2012 All-Star game MVP Melky Cabrera, 2005 AL Cy Young Award winner Bartolo Colon and 2011 AL championship series MVP Nelson Cruz of Texas.


Cabrera left San Francisco after the season to sign with Toronto, while Oakland re-signed Colon.


Other baseball players the newspaper said appeared in the records include Washington pitcher Gio Gonzalez, who finished third in last year's NL Cy Young Award voting, and San Diego catcher Yasmani Grandal.


Biogenesis, which the New Times said was run by Anthony Bosch, was located in a beige, nondescript office park. The former clinic is no longer listed as a business in its directory,


"There was a flier put out by the building management a couple weeks ago. It was put on all the doors and windows of all the offices," said Brad Nickel, who works in a cruise planning company on the floor above where the clinic was located. "It just said this guy's not really a doctor, he doesn't belong here, he's no longer allowed here, call the police or the building management if you see him."


The New Times posted copies of what it said were Bosch's handwritten records, obtained through a former Biogenesis employee it did not identify.


Bosch's lawyer, Susy Ribero-Ayala, said in a statement the New Times report "is filled with inaccuracies, innuendo and misstatements of fact."


"Mr. Bosch vehemently denies the assertions that MLB players such as Alex Rodriguez and Gio Gonzalez were treated by or associated with him," she said.


Rodriguez appears 16 times in the documents New Times received, the paper said, either as "Alex Rodriguez," ''Alex Rod" or the nickname "Cacique," a pre-Columbian Caribbean chief.


Rodriguez admitted four years ago that he used PEDs from 2001-03. Cabrera, Colon and Grandal were suspended for 50 games each last year by MLB following tests for elevated testosterone. Responding to the testosterone use, MLB and the players' union said Jan. 10 they were authorizing the World Anti-Doping Agency laboratory outside Montreal to store each major leaguer's baseline testosterone/epitestosterone (T/E) ratio in order to detect abnormalities.


"We are always extremely disappointed to learn of potential links between players and the use of performance-enhancing substances," MLB said in a statement. "Only law enforcement officials have the capacity to reach those outside the game who are involved in the distribution of illegal performance-enhancing drugs. ... We are in the midst of an active investigation and are gathering and reviewing information."


A baseball official, speaking on condition of anonymity because he was not authorized to make public statements, said Monday that MLB did not have any documentation regarding the allegations. If MLB does obtain evidence, the players could be subject to discipline. First offenses result in a 50-game suspension and second infractions in 100-game penalties. A third violation results in a lifetime ban.


Rodriguez is sidelined for at least the first half of the season after hip surgery Jan. 16. A 50-game suspension would cost him $7.65 million of his $28 million salary.


"The news report about a purported relationship between Alex Rodriguez and Anthony Bosch are not true," Rodriguez said in a statement issued by a publicist. "He was not Mr. Bosch's patient, he was never treated by him and he was never advised by him. The purported documents referenced in the story — at least as they relate to Alex Rodriguez — are not legitimate."


Jay Reisinger, a lawyer who has represented Rodriguez in recent years, said the three-time AL MVP had retained Roy Black, an attorney from Rodriguez's hometown of Miami. Black's clients have included Rush Limbaugh and William Kennedy Smith.


Bosch did not return a phone message seeking comment.


MLB hopes to gain the cooperation of Bosch and others connected with the clinic, another baseball official said, also on condition of anonymity because no public statements on the matter were authorized. In order to successfully discipline players based on the records, witnesses would be needed to authenticate them, the official said.


Players could be asked to appear before MLB for interviews, but the official said MLB would be reluctant to request interviews before it has more evidence.


Rodriguez spent years denying he used PEDs before Sports Illustrated reported in February 2009 that he tested positive for two steroids in MLB's anonymous survey while with the Texas Rangers in 2003. Two days later, he admitted in an ESPN interview that he used PEDs over a three-year period. He has denied using PEDs after 2003.


If the new allegations were true, the Yankees would face high hurdles to get out of the final five years and $114 million of Rodriguez's record $275 million, 10-year contract. Because management and the players' union have a joint drug agreement, an arbitrator could determine that any action taken by the team amounted to multiple punishments for the same offense.


But if Rodriguez were to end his career because of the injury, about 85 percent of the money owed by the Yankees would be covered by insurance, one of the baseball officials said.


Gonzalez, 21-8 for the Washington Nationals last season, posted on his Twitter feed: "I've never used performance enhancing drugs of any kind and I never will, I've never met or spoken with tony Bosch or used any substance provided by him. anything said to the contrary is a lie."


Colon was not issuing a statement, agent Adam Katz said through spokeswoman Lisa Cohen.


"We are aware of certain allegations and inferences," Cruz's law firm, Farrell & Reisinger, said in a statement. "To the extent these allegations and inferences refer to Nelson, they are denied."


Cruz and Gonzalez had not previously been linked to performance-enhancing drugs. Cruz hit 24 home runs last year for the Rangers.


The New Times report said it obtained notes by Bosch listing the players' names and the substances they received. Several unidentified employees and clients confirmed to the publication that the clinic distributed the substances, the paper said. The employees said that Bosch bragged of supplying drugs to professional athletes but that they never saw the sports stars in the office.


The paper said the records list that Rodriguez paid for HGH; testosterone cream; IGF-1, a substance banned by baseball that stimulates insulin production; and GHRP, which releases growth hormones.


___


Associated Press writers Jennifer Kay in Coral Gables, Fla., and Curt Anderson in Miami, and AP Sports Writers Howard Fendrich and Tim Reynolds contributed to this report.


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Philadelphia opera co.: New name, new vision






PHILADELPHIA (AP) — The Opera Company of Philadelphia is getting a name change that officials say is in better harmony with its move toward more innovative programming and greater diversity in its repertoire.


The company said Tuesday it will now be known simply as Opera Philadelphia. The new name and logo will appear on all of its brochures and ads.






The announcement was made in conjunction with the unveiling of the 2013-2014 season.


The company plans to continue bringing opera to new audiences with surprise “pop-up” concerts in famous Philadelphia locations. Past performances at a downtown Macy’s and the Reading Terminal Market have received millions of views on YouTube.


Opera Philadelphia says it has five new operas in development and aims to present challenging contemporary works along with classics like “Carmen” and “La Boheme.”


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Wall Street flat, investors look for new catalyst

NEW YORK (Reuters) - Stocks were flat on Tuesday as investors looked for new reasons in economic data or earnings to extend a rally that pushed major averages near five-year highs.


Equities have been on a tear lately, with the S&P 500 recently climbing for eight straight sessions, extending its rise in January to 5.1 percent. The index hovered around 1,500, suggesting there was still support for a market that has been hovering around five-year highs.


"A move like this in one month is extraordinary, and keeping the gains going will depend on concrete news like earnings and data that show the economy is getting better," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "We haven't seen enough of that to make people jump in after the rally we've had."


The gains have largely come on a strong start to earnings season, though results were mixed on Tuesday with Pfizer Inc rising but Ford Motor Co dropping after its report.


Both companies reported profits that topped expectations, but Ford also forecast a wider loss in its European segment. Shares dropped 3.6 percent to $13.32 as one of the biggest percentage losers on the S&P 500.


Pfizer, a Dow component, rose 1.2 percent to $27.16 after its results while Eli Lilly and Co rose 1.2 percent to $53.25 after reporting adjusted fourth-quarter earnings and revenue that beat expectations.


In economic news, stocks retreated slightly after data showed U.S. consumer confidence dropped to its lowest level in more than a year in January. Americans were more pessimistic about the economic outlook and their financial prospects, according to the Conference Board.


In addition, home prices rose 0.6 percent in November, as expected, according to the S&P Case/Shiller Home Price Index. The news comes a day after data showed an unexpected drop in December pending home sales.


Thomson Reuters data showed that of the 150 companies in the S&P 500 that have reported earnings so far, 67.3 percent have beaten analysts' expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


The Dow Jones industrial average <.dji> was up 13.40 points, or 0.10 percent, at 13,895.33. The Standard & Poor's 500 Index <.spx> was down 1.01 points, or 0.07 percent, at 1,499.17. The Nasdaq Composite Index <.ixic> was down 18.21 points, or 0.58 percent, at 3,136.09.


The Nasdaq was pressured by a pair of disappointing tech outlooks. Seagate Technology Plc forecast third-quarter revenue below expectations while BMC Software Inc gave a 2013 profit view that was below forecasts.


Seagate shares slumped 8.7 percent to $34.10 while BMC fell 7.8 percent to $41.


On the upside in technology, Yahoo Inc rose 1.2 percent to $20.55 a day after forecasting a rise in annual revenue.


The Federal Reserve's Open Market Committee is due to hold two days of meetings on interest rates beginning on Tuesday.


In a sign of an improved view towards equities, investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record, research provider TrimTabs Investment Research said.


(Editing by Kenneth Barry and Nick Zieminski)



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Wall Street flat, investors look for new catalyst






NEW YORK (Reuters) – Stocks were flat on Tuesday as investors looked for new reasons in economic data or earnings to extend a rally that pushed major averages near five-year highs.


Equities have been on a tear lately, with the S&P 500 recently climbing for eight straight sessions, extending its rise in January to 5.1 percent. The index hovered around 1,500, suggesting there was still support for a market that has been hovering around five-year highs.






“A move like this in one month is extraordinary, and keeping the gains going will depend on concrete news like earnings and data that show the economy is getting better,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “We haven’t seen enough of that to make people jump in after the rally we’ve had.”


The gains have largely come on a strong start to earnings season, though results were mixed on Tuesday with Pfizer Inc rising but Ford Motor Co dropping after its report.


Both companies reported profits that topped expectations, but Ford also forecast a wider loss in its European segment. Shares dropped 3.6 percent to $ 13.32 as one of the biggest percentage losers on the S&P 500.


Pfizer, a Dow component, rose 1.2 percent to $ 27.16 after its results while Eli Lilly and Co rose 1.2 percent to $ 53.25 after reporting adjusted fourth-quarter earnings and revenue that beat expectations.


In economic news, stocks retreated slightly after data showed U.S. consumer confidence dropped to its lowest level in more than a year in January. Americans were more pessimistic about the economic outlook and their financial prospects, according to the Conference Board.


In addition, home prices rose 0.6 percent in November, as expected, according to the S&P Case/Shiller Home Price Index. The news comes a day after data showed an unexpected drop in December pending home sales.


Thomson Reuters data showed that of the 150 companies in the S&P 500 that have reported earnings so far, 67.3 percent have beaten analysts’ expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


The Dow Jones industrial average <.dji> was up 13.40 points, or 0.10 percent, at 13,895.33. The Standard & Poor’s 500 Index <.spx> was down 1.01 points, or 0.07 percent, at 1,499.17. The Nasdaq Composite Index <.ixic> was down 18.21 points, or 0.58 percent, at 3,136.09.</.ixic></.spx></.dji>


The Nasdaq was pressured by a pair of disappointing tech outlooks. Seagate Technology Plc forecast third-quarter revenue below expectations while BMC Software Inc gave a 2013 profit view that was below forecasts.


Seagate shares slumped 8.7 percent to $ 34.10 while BMC fell 7.8 percent to $ 41.


On the upside in technology, Yahoo Inc rose 1.2 percent to $ 20.55 a day after forecasting a rise in annual revenue.


The Federal Reserve’s Open Market Committee is due to hold two days of meetings on interest rates beginning on Tuesday.


In a sign of an improved view towards equities, investors poured $ 55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record, research provider TrimTabs Investment Research said.


(Editing by Kenneth Barry and Nick Zieminski)


Business News Headlines – Yahoo! News





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US consumer confidence plunges on higher taxes






WASHINGTON (AP) — U.S. consumer confidence plunged in January to its lowest level in more than a year, reflecting higher Social Security taxes that left Americans with less take-home pay.


The Conference Board said Tuesday that its consumer confidence index dropped 8.1 points in January from December to a reading of 58.6, the lowest since November 2011.






The index has declined for three straight months since hitting a nearly five-year high of 73.1 in October 2012. It’s still above the post-recession low of 40.9 reached in October 2011.


Conference Board economist Lynn Franco said the tax increase was the key reason confidence tumbled in January, making Americans less optimistic about the next six months.


For a worker earning $ 50,000 a year, take-home pay will shrink this year by about $ 1,000.


“It may take a while for confidence to rebound and consumers to recover from their initial paycheck shock,” Franco said.


The index fell sharply in December as congressional Republicans and President Barack Obama moved closer to the fiscal cliff without reaching a resolution on sharp spending cuts and tax increases.


Congress and the White House ultimately struck a deal on Jan. 1 to prevent income taxes from rising on most Americans. But they delayed the spending cuts for only two months. And they allowed a temporary cut in Social Security taxes to expire.


The survey was conducted through Jan. 17, at which point most people began to realize their paychecks were lighter.


Consumers were less confident in January than December about current economic conditions, the survey showed. And their outlook for the job market also grew more pessimistic.


Most economists attributed the drop in confidence to the increase in payroll taxes.


Joshua Shapiro, chief U.S. economist at MFR Inc., also noted that sharp divisions in Washington over spending cuts and tax increases likely made consumers less optimistic about the economy, too.


“All the negative news about the dysfunction in Washington surrounding the fiscal cliff negotiations contributed to the December plunge, and ongoing shenanigans concerning the debt ceiling and fiscal sanity in general continued to weigh in January,” Shapiro said.


Taxes are rising at a time when wages and salaries are barely growing. The combination is expected to hurt consumer spending and slow economic growth.


Many economists predict economic growth slowed in the October-December quarter to an annual rate of around 1 percent. That would be much weaker that the 3.1 percent rate in the July-September quarter. Most economists don’t expect growth to pick up much in the first quarter of 2013.


The decline in confidence comes as the economy is signaling improvement elsewhere.


A recovery in housing market is looking more sustainable and is expected to strength this year.


A separate report Tuesday showed home prices accelerated this fall, pushed higher by rising sales and a tighter supply of available homes. The Standard & Poor’s/Case-Shiller 20-city home price index rose 5.5 percent in November compared with the same month a year ago. That’s the largest year-over-year gain in six years.


The U.S. auto industry and financial sector are also picking up.


Auto sales reached a five-year high of 14.5 million in 2012. Analysts expect sales will climb even higher this year, to 15.5 million.


Stocks are near their all-time highs. The Standard and Poor’s 500 has more than doubled from its low in 2009.


Still, the job market remains sluggish. Employers have added an average of about 150,000 jobs a month for the past two years. That’s enough for a gradual decline in the unemployment rate, which remains high at 7.8 percent.


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Report links A-Rod with PED use; MLB investigates


NEW YORK (AP) — Major League Baseball says it is "extremely disappointed" about a new report that says records from an anti-aging clinic in the Miami area link Alex Rodriguez and other players to the purchase of performance-enhancing drugs.


The Miami New Times said in a story Tuesday that it had obtained files through an employee at a recently closed clinic called Biogenesis.


MLB responded with a statement that says "through our Department of Investigations, we have been actively involved in the issues in South Florida." The unsigned statement also says "we are always extremely disappointed to learn of potential links between players and the use of performance-enhancing substances."


Other players on the list include Melky Cabrera, Gio Gonzalez, Bartolo Colon and Nelson Cruz. Cabrera and Colon were each suspended for failing drug tests last season. Rodriguez has admitted using steroids from 2001-03 but insisted he stopped after that.


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Why haven't we learned from fires?






STORY HIGHLIGHTS


  • Pyrotechnics, overcrowding, poor exits have contributed to tragic fires in recent years

  • You would think the world would have learned from past incidents, John Barylick says

  • Concertgoers have to be their own fire marshals, he says




Editor's note: John Barylick, author of "Killer Show," a book on the 2003 Station nightclub fire in Rhode Island, is an attorney who represented victims in wrongful death and personal injury cases arising from the fire.


(CNN) -- Sunday morning we awoke to breaking news of another tragic nightclub fire, this time in Brazil. At last report the death toll exceeded 230.


This tragedy is not without precedent. Next month will mark the 10th anniversary of a similar nightclub fire in Rhode Island. At this sad time, it's appropriate to reflect on what we've learned from club fires -- and what we haven't.


Rhode Island's Station nightclub fire of 2003, in which 100 concertgoers lost their lives, began when fireworks set off by Great White, an 80s heavy metal band, ignited flammable packing foam on the club's walls.


Deadly blazes: Nightclub tragedies in recent history



John Barylick

John Barylick





Panicked patrons stampeded toward the club's main exit, and a fatal pileup ensued. Contributing to the tragedy were illegal use of pyrotechnics, overcrowding and a wall covering that would have failed even the most rudimentary flammability tests.


Video images of the Station fire were broadcast worldwide: A concert begins; the crowd's mood changes from merry, to curious, to concerned, to horrified -- in less than a minute. You'd think the world would have learned from it. You would be wrong.



The following year, the Republica Cromanon nightclub in Argentina went up in flames, killing 194 people. The club was made to hold about 1,000 people, but it was estimated that more than 3,000 fans were packed inside the night of the fire, which began when fans began lighting flares that caught the roof on fire.


Echoes of the past: Rhode Island victims 'can't help but watch'


Then, in January 2009, at least 64 New Year's revelers lost their lives in a nightclub in Bangkok, Thailand, after fire ignited its ceiling. Many were crushed in a rush to get out of the club. In December of that same year, a fire in a Russian nightclub, ignited by pyrotechnics, killed 156 people. Overcrowding, poor exits, and indoor fireworks all played roles in these tragedies; yet no one bothered to learn from mistakes of the past.


While responsibility for concert disasters unquestionably lies with venue operators, performers and promoters, ultimately, we, as patrons of clubs and concerts, can enhance our own safety by taking a few simple steps. The National Fire Protection Association urges concertgoers to:


• Be observant. Is the concert venue rundown or well-maintained? Does the staff look well-trained?


• As you proceed to your seat, observe how long the process takes. Could you reverse it in a hurry? Do you pass through pinch points? Is furniture in the way?


• Once seated, take note of the nearest exit. (In an emergency, most people try to exit by the door they entered, which is usually not the closest, and is always overcrowded.) Then, share the location of that nearest exit with your entire party. Agree that at the first sign of trouble, you will all proceed to it without delay.


• Once the show begins, remain vigilant. If you think there's a problem, LEAVE IMMEDIATELY. Do not stay to "get your money's worth" despite concerns about safety. Do not remain to locate that jacket or bag you placed somewhere. No concert is worth your life. Better to read about an incident the next day than be counted as one of its statistics.


Read more: How to protect yourself in a crowd


To be sure, all fire codes must be vigorously enforced, and club and concert hall operators must be held to the highest standards. A first step is banning indoor pyrotechnics in all but the largest, stadium-type venues.


But, ultimately, we are our own best "fire marshals" when it comes to avoiding, and escaping, dangerous situations. We can still enjoy shows. But it is up to us to look out for our own safety.


In coming days, Rhode Islanders will follow the unfolding news from Brazil with a sense of queasy deja vu -- the rising body counts, the victim identification process, the grieving families, and the assigning (and dodging) of blame. If only they had learned from our tragedy.


The opinions expressed in this commentary are solely those of John Barylick.







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“Zero Dark Thirty” hits the U.K.: did critics zero in on torture scenes?






LOS ANGELES (TheWrap.com) – “Zero Dark Thirty” landed this week in the United Kingdom, where the Kathryn Bigelow drama continued to stir debate over its depiction of the use of torture in the CIA’s decade-long hunt for Osama bin Laden.


As they have in the U.S., some critics accused the filmmakers of implying that enhanced interrogation techniques could be a useful form of intelligence gathering, while others believed that Bigelow and screenwriter Mark Boal were more ambiguous in their portrayal of torture’s efficacy.






Most reviewers were floored by the propulsive storyline, the performance of star Jessica Chastain and the gripping dramatization of the raid on bin Laden’s compound in Pakistan.


In the Evening Standard, David Sexton argues that the film is ambivalent about waterboarding and other brutal methods, noting that a key piece of information is only discovered after interrogators ply a detainee with food and kindness.


“This has proved offensive to those who, to avoid having to accept there may be negative consequences from taking the moral high ground, prefer to believe that torture must always be ineffective as well as wrong,” Sexton writes. “Some of these critics – most notably nitwit Naomi Wolf, who has tastefully compared Bigelow to Leni Riefensthal and dubbed her ‘torture’s handmaiden’ – have claimed the film’s disturbing representation of torture amounts to a blithe commendation of the practice, not really a possible interpretation for those who have actually seen the movie.”


In a four-star review, Sexton went on to hail “Zero Dark Thirty” as “terrifically good” and said the depiction of the raid was a “masterclass in action filmmaking.”


In The Independent, Anthony Quinn praised the film for avoiding simplistic conclusions about America’s controversial interrogation methods.


“The waterboarding, the beatings, the dog collars, all the stuff you’ve heard about is here, and perhaps some you haven’t – the spectacle of a man being forced inside a small wooden box is as harrowing as any,” Quinn writes. “Is this an abhorrent crime? Would the information be impossible to gain by other means? The film isn’t saying either way; it is asking us to make up our own minds.”


Quinn also argued that the film is more effective because it was directed by a woman and that because of her gender, Bigelow has a less “gung-ho” relationship to violence than a Ridley Scott or Michael Mann might bring to the same material (he may not have seen “Point Break”)


Robbie Collins maintains in his review of the film in the Telegraph that Bigelow and Boal leave it to audiences to decide whether torture is right or wrong.


“These scenes are every bit as hellish to watch as they should be, and Bigelow’s genius is to make them feel at once gratuitous and necessary,” Collins writes.


He also praised the film for eschewing jingoism and for having the courage to end on a deflated note.


“Where, then, does Zero Dark Thirty leave us?” Collins asks.


“In the same place it leaves Maya: with our thirst for justice quenched, but our sense of rightness shaken. “Where do you want to go?” a pilot asks her, and she starts shedding tear after tear. This, finally, is what victory looks like, and its likeness to defeat is terrifying.”


Peter Bradshaw of The Guardian was more unsettled by the film’s relationship with torture and seemed to wish it had taken a firmer position.


“There is nothing in Zero Dark Thirty comparable to Gavin Hood’s soul-searching 2007 movie, Rendition, in which Jake Gyllenhaal’s CIA agent denounces waterboarding information as valueless; he quotes Shakespeare’s The Merchant of Venice and says torture victims ‘speak upon the rack,/ Where men enforced do speak anything,’” Bradshaw writes. “I can well believe that, but for me the most sinister depiction of torture is non-depiction. Many Hollywood movies about the war on terror have managed to ignore the subject, implying non-existence. Despite its fence-sitting, I prefer Bigelow’s account.”


Bradshaw was also less enamored of the film on an artistic level, writing that “It is well made, with a relentless, dour drumbeat of tension and a great final sequence, but nowhere near as good as the first season of Homeland.”


Empire Magazine’s Kim Newman mostly skirted the political debate surrounding “Zero Dark Thirty,” but was ecstatic about Bigelow’s directing, the film’s pacing and star turns.


“Like Bigelow’s The Hurt Locker, it’s a relatively new kind of American patriotic war movie, counterprogramming jaded paranoid fantasies like the Bourne movies or the liberal horror stories (Redacted, Rendition, In The Valley Of Elah, Green Zone etc.) thrown up by the War On Terror,” Newman writes. “It’s measured, seething with suppressed emotion, unafraid of slow stretches and false trails, snapping shut like a mantrap when blood is shed. If it grips in a more intellectual, journalistic manner than its Oscar-winning predecessor, it’s because Chastain’s character is necessarily absent during the climax – though she has a terrific post-traumatic outburst when the case is closed.”


Movies News Headlines – Yahoo! News




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Osborne: HS2 is engine for growth









George Osborne: “I think it is the engine for growth in the north and the midlands”



The HS2 high-speed rail network will be an “engine for growth” for the north of England and the Midlands, the chancellor has said.


George Osborne admitted the £32bn project was expensive and would take many years, but said it would create “tens of thousands of jobs”.


But critics say the plan is flawed.


Some argue that there is little evidence to suggest the introduction of the line will help reduce regional inequalities in the country.


The first phase of the high-speed rail project will link London to Birmingham. Now the government has announced that its preferred route for phase two will run northwards along two branches – one to Manchester and Manchester Airport; the other to Toton near Nottingham, and then on to Sheffield and Leeds.


Heal the divide?


Mr Osborne’s fellow Conservative MP, Andrew Bridgen, said his North West Leicestershire constituency would have “all the pain and none of the gain”.


Continue reading the main story



This morning all roads to Manchester were gridlocked. As usual. All snarled up, a nasty mess of lorries and commuters.


There’s a huge infrastructure problem here. Freight has increased 60% since 1995. There simply isn’t enough rail capacity to shift it off the roads.


But what if there was an additional rail line to London? HS2 as well as the West Coast main line. North West-based haulage giant Eddie Stobart says the increase in capacity would transform its business. In doing so, it might also transform many people’s commute.


And hey presto, the region’s moving again. Or so the theory goes. It’s about keeping people, parts and products on the move.


But what about the businessman who told me he’d leave Warrington if HS2 didn’t stop at his town? There may also be economic losers if it gets businesses relocating too.



“It’s going to cut my constituency north to south, destroy lots of countryside and put fear and planning paralysis to a lot of my communities.”


Mr Osborne acknowledged that “you can’t build a brand new railway line without having some impact on families” but added that there would be “a very generous compensation scheme”.


On Sunday, Deputy Prime Minister Nick Clegg suggested that the extension of the high-speed rail line would “heal the north-south divide”.


But Prof John Tomaney from the School of Planning at University College London (UCL) said that, given the evidence in countries where high-speed lines have been introduced, such as France, Spain and South Korea, there was very little evidence of reducing regional inequalities.


“On the contrary, in fact the evidence seems to suggest that it’s the capital cities which gain principally from these developments,” he told the BBC.


“A very good example would be the Madrid to Seville line in Spain. That line was built in order to promote the growth of Seville. But in actual fact, following its completion, Madrid grew at a much faster rate than Seville.


“In fact the gap between their economic performances widened. The relationship between Seoul and Busan [in South Korea] is very similar.”


Regeneration debate


Music mogul and rail enthusiast Pete Waterman said that HS2 would regenerate major areas of Britain.


“Just look at what the Olympics did for parts of South East London – some people complain about the cost, but the area has been completely transformed. The same will happen [with the HS2 hubs],” he told the BBC.


But Richard Wellings from the Institute of Economic Affairs (IEA) disputed this.


“If you look at somewhere like Doncaster, which has had a very fast link to London for decades now, it still remains one of the poorest towns in the UK. If you compare its policy statistics with neighbouring boroughs that don’t have the same links to London, they’re very similar.”


‘Economic error’


There have been many estimates of the economic benefits of HS2.


The HS2 business case, put forward by the Department for Transport in February 2011, concluded that phase one, from London to the West Midlands, would generate £20bn in economic welfare benefits, mostly as a result of time savings to business travellers.


The total benefits for the whole network were estimated at £44bn, although the accountants KPMG put their estimate much lower, saying HS2 could boost annual economic output between £17bn and £29bn in 2040.


According to the government, phase one would create about 40,000 jobs. That includes a potential 30,000 jobs in “planned employment growth” around the high-speed rail stations, 9,000 in construction of the line and 1,500 in the operation of the trains.


But groups who oppose HS2 say the business case is based on unrealistic assumptions – that projections do not take into account competition from conventional rail – and question the strategic benefits.


A separate study by KPMG, commissioned by the West Midlands Integrated Transport Authority (Centro), found that HS2 would add some £1.5bn in gross value to the West Midlands, the equivalent of a £300 rise in average wages.




IEA Deputy Editorial Director, Richard Wellings questions the business case for High Speed 2.



But the IEA’s Mr Wellings said the government was making “a basic economic error” with HS2.


“It’s not just the basic cost of around £33bn, there’ll also be loads of add-ons – leaking infrastructure around the stations, the huge regeneration schemes that will be taxpayer funded – the kind of thing we saw along the route of HS1.


“So this is very, very bad news for taxpayers and the wider economy,” he told the BBC.


But the British Chambers of Commerce (BCC) said projects like HS2 created “confidence, jobs and competitiveness”.


And Sir Richard Leese, chair of Manchester City Council, said that while high-speed rail did not guarantee growth, it would give both major cities and smaller towns in the north “a better chance”.


“Fundamentally in the north of England it’s not about speed, although shorter journeys are better for the economy, it is about capacity. It’s about more capacity for passengers and more capacity for freight as well.”


BBC News – Business





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Money fears vs. real benefits in Medicaid choice






WASHINGTON (AP) — President Barack Obama thinks his health care law makes states an offer they can’t refuse.


Whether to expand Medicaid, the federal-state program for the poor and disabled, could be the most important decision facing governors and legislatures this year. The repercussions go beyond their budgets, directly affecting the well-being of residents and the finances of critical hospitals.






Here’s the offer:


If states expand their Medicaid programs to cover millions of low-income people now left out, the federal government will pick up the full cost for the first three years and 90 percent over the long haul.


About 21 million uninsured people, most of them adults, eventually would gain health coverage if all the states agree.


Adding up the Medicaid costs under the law, less than $ 100 billion in state spending could trigger nearly $ 1 trillion in federal dollars over a decade, according to the nonpartisan Urban Institute.


“It’s the biggest expansion of Medicaid in a long time, and the biggest ever in terms of adults covered,” said Mark McClellan, who ran Medicare and Medicaid when George W. Bush was president.


“Although the federal government is on the hook for most of the cost, Medicaid on the whole is one of the biggest items in state budgets and the fastest growing. So there are some understandable concerns about the financial implications and how implementation would work,” McClellan said.


A major worry for states is that deficit-burdened Washington sooner or later will renege on the 90-percent deal. The regular Medicaid match rate averages closer to 50 percent. That would represent a significant cost shift to the states.


Many Republicans also are unwilling to keep expanding government programs, particularly one as complicated as Medicaid, which has a reputation for being inefficient and unwieldy.


Awaiting decisions are people such as Debra Walker of Houston, a part-time home health care provider. She had a good job with health insurance until she got laid off in 2007.


Walker was recently diagnosed with diabetes, and she’s trying to manage by getting discounted medications through a county program for low-income uninsured people.


Walker estimates she earned about $ 10,000 last year, which means she would qualify under the income cutoff for the Medicaid expansion. But that could happen only if Gov. Rick Perry, R-Texas, reconsiders his opposition.


“I think that would be awesome if the governor would allow that program to come into the state,” Walker said. “That would be a help for me, robbing Paul to pay Peter for my medicines.”


She seems determined to deal with her diabetes problem. “I don’t want to lose a limb later on in life,” said Walker, 58. “I want to beat this. I don’t want to carry this around forever.”


As Obama’s law was originally written, low-income people such as Walker would not have had to worry or wait. Roughly half the uninsured people gaining coverage under the law were expected to go into Medicaid. The middle-class uninsured would get taxpayer-subsidized private coverage in new insurance markets called exchanges.


But last year the Supreme Court gave states the right to opt out of the Medicaid expansion. The court upheld the rest of the law, including insurance exchanges and a mandate that virtually everyone in the United States have health coverage, or face a fine.


The health care law will go into full effect next Jan. 1, and states are scrambling to crunch the numbers and understand the Medicaid trade-offs.


States can refuse the expansion outright or indefinitely postpone a decision. But if states think they’ll ultimately end up taking the deal, there’s a big incentive to act now: The three years of full federal funding for newly eligible enrollees are only available from 2014 through 2016.


So far, 17 states and the District of Columbia have said they’ll take it. That group includes three Republican-led states, Arizona, Nevada and New Mexico. Arizona Gov. Jan Brewer was prominent among GOP leaders who had tried get the law overturned.


An additional 11 states, all led by Republicans, say they want no part of it. Perry says it tramples states’ rights.


The remaining states are considering options.


In some cases, GOP governors are trying to persuade balky legislatures led by Republicans. Hospitals treating the uninsured are pressing for the expansion, as are advocates for the poor and some chambers of commerce, which see an economic multiplier from the infusion of federal dollars. Conservative foes of “Obamacare,” defeated at the national level, want to hold the line.


The entire debate is overshadowed by some big misconceptions, including that the poor already have Medicaid.


Many of them do, but not all. Medicaid generally covers low-income disabled people, children, pregnant women and some parents. Childless adults are left out in most states.


The other misconception is that Medicaid is so skimpy that people are better off being uninsured.


Two recent studies debunked that.


One found a 6 percent drop in the adult death rate in states that already have expanded Medicaid along the lines of the federal health care law. A second looked at Oregonians who won a lottery for Medicaid and compared them with ones who weren’t picked and remained uninsured. The Medicaid group had greater access to health care, less likelihood of being saddled with medical bills, and felt better about their overall health.


Skeptics remain unconvinced.


Louisiana’s health secretary, Bruce D. Greenstein, is concerned that the Medicaid expansion could replace private insurance for many low-wage workers in his state, dragging down quality throughout the health care system because the program pays doctors and hospitals far less than private insurance. He says the Obama administration and Congress missed a chance to overhaul Medicaid and give states a bigger say in running the program.


“Decisions are made by fiat,” he said. “There is not any sense of a federal-state partnership, what this program was founded on. I don’t feel in any way that I am a partner.” The Obama administration says it is doing its best to meet state demands for flexibility.


But one thing the administration has been unwilling to do is allow states to partly expand their Medicaid programs and still get the generous matching funds provided by the health care law.


That could have huge political implications for states refusing the expansion, and for people such as Walker, the diabetes patient from Houston.


These numbers explain why:


Under the new law people making up to 138 percent of the federal poverty line, about $ 15,400 for an individual, are eligible to be covered by Medicaid.


But for most people below the poverty line, about $ 11,200 for an individual, Medicaid would be the only option. They cannot get subsidized private coverage through the new health insurance exchanges.


So if a state turns down the Medicaid expansion, some of its low-income people still can qualify for government-subsidized health insurance through the exchanges. But the poorest cannot.


In Texas, somebody making a couple of thousand dollars more than Debra Walker still could get coverage. But Walker would be left depending on pay-as-you-go charity care.


“It’s completely illogical that this has happened,” said Edwin Park, a health policy expert with the Center on Budget and Policy Priorities, which advocates for low-income people.


Federal officials say their hands are tied, that Congress intended the generous federal matching rate solely for states undertaking the full expansion. States doing a partial expansion would have to shell out more of their own money.


“Some people are going to be between a rock and a hard spot,” said Walker.


Yahoo! Finance – Personal Finance





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