mynewhopeumc.org

Friday, April 3, 2009

General Motors (GM) and Chrysler will receive bridge loans from the government of Canada and the provincial government of Ontario, however no more will be forthcoming from either Canadian or US governments unless the companies can reinvent themselves.

“This is a regrettable but necessary step to protect the Canadian economy. We are doing this on the assumption that we obviously cannot afford either in the United States or Canada a catastrophic short-term collapse.” said Stephen Harper, Prime Minister of Canada.

“We cannot, we must not, and we will not let our auto industry simply vanish. This industry is, like no other, an emblem of the American spirit; a once and future symbol of America’s success,” said Barack Obama, President of the United States. “These companies – and this industry – must ultimately stand on their own, not as wards of the state.”File:Sinsheim quer.jpg

Chrysler will receive CA$1 billion and may in fact be eligible for as much as CA$4 billion. If Chrysler succeeds in the next 30 days with a restructuring plan it would be eligible for a US$6 billion loan. A part of Chrysler’s restructuring plan must include a partnership with Fiat within 30 days to appease the US administration. Fiat is a supplier of smaller fuel-efficient vehicles, and the merger will help Chrysler to be viable in the North American market. A Chrysler court bankruptcy would inevitably lead to it being sold off.

As a part of Chrysler’s restructuring plans, Tom LaSorda, the president of Chrysler announced that Canadian operations would fold if it does not receive both the US commitment of $2.3 billion of aid and a new Canadian Auto Workers CAW contract to reduce all-in costs by CA$19 per hour. As a result of this announcement Chrysler’s auto sales volume in Canada dropped 23% compared to March of 2008.

GM has until the end of May to restructure its company to receive up to CA$7.5 billion. As part of the companies restructuring, General Motor’s chief executive Rick Wagoner was replaced Sunday with Fritz Henderson, the current chief operating officer. Henderson spoke out on Tuesday that GM has submitted a restructuring plan which would close five plants, and this may be increased to meet the requirements for financial aid. He is in full compliance with Obama’s auto task force to seek bankruptcy if GM cannot negotiate with their unions, bondholders and others.

GM recently brought forward the “GM Total Confidence” program providing consumer purchase protection for customers who lose their job for economic reasons within the first two years from purchase. As a result of Chrysler’s restructuring announcement in Canada, GM’s Canadian vehicle sales volume fell only 17.3% compared to 2008, an increase from the previous month.

GM must reduce some of its legacy costs which include its pensions and union health care costs. A part of GM’s ailments arose from investing in supplying truck and SUVs during an economy of high gas prices when consumers were demanding fuel efficient vehicles.

Tony Clement, Canada’s Minister of Industry, is hoping that the CAW will support the restructuring process and re-negotiate their agreement. Whereas a United Auto Workers negotiator has said, “I don’t see how the UAW will do anything until they see what the bondholders will give up.”

The Obama administration is looking toward bankruptcy proceedings for the automakers, “as a mechanism to help them restructure quickly and emerge stronger. [It will] quickly clear away old debts that are weighing them down. What we are asking is difficult. It will require hard choices by companies. It will require unions and workers who have already made painful concessions to make even more. It will require creditors to recognise that they cannot hold out for the prospect of endless government bailouts.” said Obama.

The auto parts suppliers and IT software exporters in India have already been affected by the declining auto sales. GM and Chrysler software contracts provide US$300 to 350 million a year to vendors in India. As well these two major automakers usually award US$1 billion contracts to auto parts suppliers. “We are worried and closely watching the developments in the US to gauge the impact. The decline in auto sales in the US has already hit the order books of Indian suppliers,” said a Delhi auto parts supplier.

“Going forward, the industry will undoubtedly be smaller, but if our efforts are successful it will be viable and it will support good jobs for Canadians,” said Clements.

Betty Sutton, Ohio’s Congresswoman put forward the CARS act which provides a US$3,000 to 5,000 incentive for those who trade in their vehicle for a fuel-efficient car. “It clearly stimulates the economy, and it gets the consumer into the showroom and gets them buying again. But importantly — and this is what I particularly like about it — it really helps the environment quite a bit in two respects.” said William Clay Ford Jr., executive chairman of Ford Motor Co.

Ford Motor Company has not come forward with requests for assistance.

Since December GM and Chrysler have received US$17.4 billion government loans.

Sunday, October 5, 2008

Independent U.S. presidential candidate Ralph Nader had harsh words for the Democrats who engineered yesterday’s passage of the Emergency Economic Stabilization Act of 2008, a bailout of the U.S. financial system. At a campaign stop in Waterbury, Connecticut on Saturday, Nader said that Democrats passed up a chance to enact re-regulation of the financial system and instead gave Wall Street everything it wanted.

According to Nader, Senator Chris Dodd (D-CT), Representative Barney Frank (D-MA), and other Democrats considered but rejected measures such as a tax on transactions of derivatives (a “speculation tax”) because of their financial ties to Wall Street and its lobbyists. He said that Representative Chris Murphy (D-CT), who represents Waterbury, had “become a toady” of Nancy Pelosi. He drew enthusiastic applause by calling Murphy “a dynamic fraud”, and referred to Senator Joe Lieberman as “the Hermaphrodite of American Politics”. For Murphy and Representative Chris Shays (R-CT), Nader said, supporting the bailout despite the opposition of constituents was a “profile in betrayal”. Because there were no public hearings where taxpayers and experts could weigh in on the bailout, Nader characterized it as a return to “taxation without representation“—under “King George IV” 225 years after the 13 colonies were taxed under King George III.

Asked about causes of the financial crisis, Nader pointed to the deregulation of the financial sector with the 1999 Glass-Steagall Act and further deregulation in 2000, as well as the rise of overly complex financial derivatives. He outlined a four-part reform plan:

1. Re-regulation of financial markets
2. Increasing shareholder control of corporations
3. Taxpayer equity as part of any bailout, as in the 1979 bailout of Chrysler Corporation
4. Making speculators pay by enacting a 0.1% tax on derivatives transactions (which Nader said will amount to over $500 trillion this year)

Regarding the equity warrants included in the passed bailout, Nader relayed word from an unnamed source that Treasury Secretary Henry Paulson had told Wall Street executives “don’t worry, it’s not enforceable”.

Nader told reporters that he had abandoned the Green Party because “Greens are not disciplined, and they’re not mature”, and also lack the fund-raising capabilities to break into mainstream political discussions. “They bicker and bicker,” he said, pushing out their best people. However, he endorsed several local Green Party candidates, including Chris Murphy’s opponent Harold Burbank.

The virtual media blackout for third party campaigns by national newspapers and networks has been a source of continual frustration for the Nader campaign, as well as the campaigns of Libertarian Bob Barr and Green Cynthia McKinney and the post-campaign activities of Republican Ron Paul. According to Nader, reporters tell him that editors of national media are “very bigoted against third party and independent candidacies”. Even journalists for taxpayer-supported media, such as National Public Radio‘s Terry Gross and the Public Broadcasting Service‘s Jim Lehrer, have shut him out during this campaign. Debates, he lamented, are controlled by corporate interests through the Commission on Presidential Debates.

Nader spoke to a supportive crowd of about 60 people and his campaign raised over $2000 at the event, their third visit to Waterbury. The event took place in the former building of a closed-down bank.

Friday, July 25, 2008

Randy Pausch, professor of computer science, human-computer interaction, and design at Carnegie Mellon University has died at the age of 47. Pausch died from pancreatic cancer early this morning.

He was born Randolph Frederick Pausch on October 23, 1960 in Pittsburgh, Pennsylvania, United States. He was known for his “The Last Lecture” speech on September 18, 2007 at Carnegie Mellon University.

The Pittsburgh City Council declared November 19, 2007 to be “Dr. Randy Pausch Day.”

Finally, Brown University professor Andries van Dam followed Pausch’s last lecture with a tearful and impassioned speech praising him for his courage and leadership, calling him a role model.

Pausch repeated his “Last Lecture” speech to the Oprah Show.

On May 18, 2008, Pausch made a surprise return appearance at Carnegie Mellon, giving a speech at the commencement ceremony, as well as attending the School of Computer Science’s diploma ceremony.

He leaves behind his wife Jai and their three children: Dylan, 6, Logan, 4, and Chloe, 2.

Tuesday, August 31, 2010

Every September, the Apple iPod is redesigned. Last year saw the release of the iPod Nano 5th generation, bringing a video camera and a large range of colours to the Nano for the first time. But as Apple again prepares to unveil a redesigned product, the company has released their quarterly sales figures—and revealed that they have sold only 9m iPods for the quarter to June—the lowest number of sales since 2006, leading industry anylists to ponder whether the world’s most successful music device is in decline.

Such a drop in sales is not a problem for Apple, since the iPhone 4 and the iPad are selling in high numbers. But the number of people buying digital music players are concerning the music industry. Charles Arthur, technology editor of The Guardian, wrote that the decline in sales of MP3 players was a “problem” for record companies, saying that “digital music sales are only growing as fast as those of Apple’s devices – and as the stand-alone digital music player starts to die off, people may lose interest in buying songs from digital stores. The music industry had looked to the iPod to drive people to buy music in download form, whether from Apple’s iTunes music store, eMusic, Napster or from newer competitors such as Amazon.”

Mark Mulligan, a music and digital media analyst at Forrester Research, said in an interview that “at a time where we’re asking if digital is a replacement for the CD, as the CD was for vinyl, we should be starting to see a hockey-stick growth in download sales. Instead, we’re seeing a curve resembling that of a niche technology.” Alex Jacob, a spokesperson for the International Federation of the Phonographic Industry, which represents the worldwide music industry, agreed that there had been a fall in digital sales of music. “The digital download market is still growing,” they said. “But the percentage is less than a few years ago, though it’s now coming from a higher base.” Figures released earlier this year, Arthur wrote, “show that while CD sales fell by 12.7%, losing $1.6bn (£1bn)in value, digital downloads only grew by 9.2%, gaining less than $400m in value.”

Expectations that CDs would, in time, become extinct, replaced by digital downloads, have not come to light, Jacob confirmed. “Across the board, in terms of growth, digital isn’t making up for the fall in CD sales, though it is in certain countries, including the UK,” he said. Anylising the situation, Arthur suggested that “as iPod sales slow, digital music sales, which have been yoked to the device, are likely to slow too. The iPod has been the key driver: the IFPI’s figures show no appreciable digital download sales until 2004, the year Apple launched its iTunes music store internationally (it launched it in the US in April 2003). Since then, international digital music sales have climbed steadily, exactly in line with the total sales of iPods and iPhones.”

Nick Farrell, a TechEYE journalist, stated that the reason for the decline in music sales could be attributed to record companies’ continued reliance on Steve Jobs, CEO of Apple, saying that they had considered him the “industry’s saviour”, and by having this mindset had forgotten “that the iPod is only for those who want their music on the run. What they should have been doing is working out how to get high quality music onto other formats, perhaps even HiFi before the iPlod fad died out.”

When Jobs negotiated a deal with record labels to ensure every track was sold for 99 cents, they considered this unimportant—the iPod was not a major source of revenue for the company. However, near the end of 2004, there was a boom in sales of the iPod, and the iTunes store suddenly began raking in more and more money. The record companies were irritated, now wanting to charge different amounts for old and new songs, and popular and less popular songs. “But there was no alternative outlet with which to threaten Apple, which gained an effective monopoly over the digital music player market, achieving a share of more than 70%” wrote Arthur. Some did attempt to challenge the iTunes store, but still none have succeeded. “Apple is now the largest single retailer of music in the US by volume, with a 25% share.”

The iTunes store now sells television shows and films, and the company has recently launced iBooks, a new e-book store. The App Store is hugely successful, with Apple earning $410m in two years soley from Apps, sales of which they get 30%. In two years, 5bn apps have been downloaded—while in seven years, 10bn songs have been purchased. Mulligan thinks that there is a reason for this—the quality of apps simply does not match up to a piece of music. “You can download a song from iTunes to your iPhone or iPad, but at the moment music in that form doesn’t play to the strengths of the device. Just playing a track isn’t enough.”

Adam Liversage, a spokesperson of the British Phonographic Industry, which represents the major UK record labels, notes that the rise of streaming services such as Spotify may be a culprit in the fall in music sales. Revenues from such companies added up to $800m in 2009. Arthur feels that “again, it doesn’t make up for the fall in CD sales, but increasingly it looks like nothing ever will; that the record business’s richest years are behind it. Yet there are still rays of hope. If Apple – and every other mobile phone maker – are moving to an app-based economy, where you pay to download games or timetables, why shouldn’t recording artists do the same?”

Well, apparently they are. British singer Peter Gabriel has released a ‘Full Moon Club’ app, which is updated every month with a new song. Arthur also notes that “the Canadian rock band Rush has an app, and the industrial rock band Nine Inch Nails, led by Trent Reznor – who has been critical of the music industry for bureaucracy and inertia – released the band’s first app in April 2009.” It is thought that such a system will be an effective method to reduce online piracy—”apps tend to be tied to a particular handset or buyer, making them more difficult to pirate than a CD”, he says—and in the music industry, piracy is a very big problem. In 2008, the International Federation of the Phonographic Industry estimated that 95% of downloads were illegitimate. If musicians can increase sales and decrease piracy, Robert says, it can only be a good thing.

“It’s early days for apps in the music business, but we are seeing labels and artists experimenting with it,” Jacob said. “You could see that apps could have a premium offering, or behind-the-scenes footage, or special offers on tickets. But I think it’s a bit premature to predict the death of the album.” Robert concluded by saying that it could be “premature to predict the death of the iPod just yet too – but it’s unlikely that even Steve Jobs will be able to produce anything that will revive it. And that means that little more than five years after the music industry thought it had found a saviour in the little device, it is having to look around again for a new stepping stone to growth – if, that is, one exists.”

Friday, November 13, 2009

Wikinews interviewed author Marc Headley about his new book Blown for Good, and asked him about life inside the international headquarters of Scientology known as “Gold Base“, located in Gilman Hot Springs near Hemet, California. Headley joined the organization at age seven when his mother became a member, and worked at Scientology’s international management headquarters for several years before leaving in 2005.

April 9, 2005

A bid topping $17.7 billion was jointly proffered by Time Warner Inc. and Comcast Corporation on Thursday to buy beleaguered Adelphia Communications Corporation in an industry consolidation move. Adelphia is the fifth largest cable service provider in the United States with nearly 5 million subscribers.

The market-share grabbing bid trumps the previous Cablevision offer of $16.5 billion. The bid is under scrutiny by the presiding judge over the Adelphia’s Chapter 11 bankruptcy filing, and must also be approved by the company’s creditors owed in the range of $20 million.

The acquisition race to gain dominance in the cable service provider market is driven by the high cost of installation and maintenance of cable lines. Fiber optic networks deliver traditional entertainment programming over a cable wire and is becoming increasingly popular for broadband internet content. The growing trust and recognition of Voice over Internet Protocol (VoIP) suggests phone service subscribers will eventually migrate to cable voice communication as opposed to keeping with traditional copper land lines. Telephone company operators are scrambling to keep up.

The largest percentage of the bid would be put up by Time Warner (TW), who could gain by getting subscribers from the valuable Los Angeles market currently owned by Comcast and Adelphia. TW can also simultaneously divest itself of a stake owned by Comcast in TW by making a tax-free swap using some of the newly garnered Adelphia subscribers.

While the consolidation would likely get a look by the government with an eye towards a growing monopoly in the market, it would doubtfully be blocked considering the existence of competing technologies. Competition exists in the form of still numerous television by airwaves usage, satellite providers, radio content companies, and telecom providers.

Adelphia suffered a corporate scandal in 1992 with similarities to the WorldCom fall. Members of the Rigas family, founders of the company, were alleged to have siphoned off millions of dollars and hidden $2.3 billion leading to the bankruptcy filing. John Rigas and son Timothy were convicted July of 2004 and await sentencing.

Sunday, December 19, 2004

CRAIG, Alaska –Rachelle Waterman, (aka Rachelle Ann Monica Waterman and “smchyrocky”), a 16-year-old girl from Craig, Alaska, USA, has been charged with the first degree murder of her mother.

The case has rapidly received a wide following on the Internet, partly because Waterman kept a public record of her thoughts and activities on LiveJournal, a popular blogging service. The last entry, which has since been removed from public view, was posted on November 18, 2004 and read:

Just to let everyone know, my mother was murdered.

A diverse group of users, both friends and strangers, have posted over 5,000 comments on the journal, positive and negative, transforming the case into an Internet phenomenon. Every entry since March 2004 has apparently now been deleted or hidden, but a ZIP archive of the entire weblog, from before the entries were deleted, is available on Deadly Blogging.

Waterman was a tenth-grade honor (A-average) student in her second year at Craig High School. She was also a member of the Academic Decathlon team (ACDC) and sang in the choir, a profile that has left many people questioning her involvement in the killing and asking what motive there might be. At the time police say the killing occurred, Rachelle Waterman was apparently playing in a volleyball tournament in Anchorage, Alaska.

Apart from the online diary Rachelle kept, the case is also unusual because matricide committed by female minors is extremely rare.

The Waterman family is a locally prominent, middle-upper class family. Born on August 26, 1988, Rachelle showed an interest in acting, computers, movies and music, and was an honor roll student, involved in many extra-curricular activities, including choir, volleyball, and the decathlon team – advancing to upper levels and winning prizes in almost every endeavor. Her mother, Lauri, was a teachers’ aide and served on the board of the Little League and the town library. Rachelle Waterman’s 60-year-old father, Carl “Doc” Waterman, is a real estate agent and serves as president of the Craig School Board. Rachelle’s older brother, Geoffrey, lives out of town and is a student at Tacoma College.

Waterman and her alleged accomplices, Jason Arrant and Brian Radel, both 24 years old, are accused of murdering and conspiring to murder Waterman’s 48-year-old mother, Lauri Waterman.

Reportedly, Arrant dropped Radel off near the Waterman home shortly after 12:00 a.m. Sunday, November 13, 2004 (local time) where Radel proceeded to kidnap Lauri Waterman, force her into a minivan owned by the Waterman family, and kill her with a blunt object.

Arrant and Radel then allegedly met at Forest Service Road 3012 at about 2:30 a.m., and Arrant followed Radel to its dead end, where Radel had driven the Waterman’s van.

Arrant then allegedly watched as Radel doused the body and van with gasoline and then used a roll of paper towels to set it on fire, in an attempt to destroy the evidence.

Alaska State Police Lt. Rodney Dial has stated that a hunter discovered Lauri Waterman’s body and her burnt-out van, while driving on Forest Service Road 3012, a remote logging road, early in the afternoon of Sunday November 142004.

On Saturday, November 202004, Alaska State Police Trooper Robert Claus stated:

On Saturday, November 20, 2004, Rachelle appeared in Craig District Court, dressed in an orange CCJF jumpsuit, for arraignment on the charges. Waterman and her alleged co-conspirators, Jason Arrant, and Brian Radel, faced a 10-count indictment, listing 26 felonies.

The Fairbanks Daily News-Miner reported that, “the complaint against Rachelle Waterman relied on statements by all three co-defendants. The complaint says the girl told one of the suspects when she and her father would be out of town.”

A report in The Ketchikan Daily News stated that, “The first seven counts of the indictment allege that all three defendants committed the crimes of conspiracy to commit first-degree murder; first-degree murder; second-degree murder; kidnapping; first-degree burglary; first-degree vehicle theft and tampering with physical evidence.” Other charges were made against Arrant and Radel. The same report went on to state, “Trooper Robert Claus, Klawock resident Jan Bush and Deputy State Medical Examiner Susan Klingler testified before the grand jury.”

Magistrate Kay Clark presided over the arraignment and set bail at $150,000. Clark also appointed a public defender to represent Rachelle, who was sent to the Juneau Department of Corrections facility.

Judge Patricia Collins, of the Juneau Superior Court, has been assigned to run the trial for the case. Judge Collins originally set a date of February 3, 2005 for the trial, but, at an arraignment that week, the trial was rescheduled for August 22. According to court officials, another postponement is likely.

Rachelle Waterman’s court-appointed attorney for the trial is Assistant Public Advocate Steven Wells. Assistant District Attorney Daniel Schally is assigned to prosecute the case.

No motive for the crime has been suggested. Readers are closely scrutinizing Rachelle’s online journal for clues.

As early as February 24th of 2004, she posted the following:

Numerous readers have pointed to Rachelle’s negative comments concerning her mother’s wishes to send her to a “fat farm” to lose weight.

In another incident, her mother grounded her (restricted her to home) for receiving an 89% score on a test. Rachelle posted these comments to her journal in response to this situation (verbatim spelling):

Other readers have pointed to the title of Rachelle’s journal, “My Crappy Life (The Inside Look of an Insane Person)”, and her negative description of her hometown as “Hell, Alaska, United States”:

Rachelle posted the following poem to her journal on August 24, 2004, with an indication that she was depressed:

She also had a strong desire not to be at home:

and even posted an “Ode to Suicide” under the following post:

Finally, the weekend before Rachelle left on a trip, during which time her mother was allegedly killed, she noted in her second-to-last entry, “I had a migraine from about 9am-6pm”.

Rachelle Waterman is currently incarcerated at the Lemon Creek correctional facility, in Alaska. She signed an agreement to be placed into the general population. Corrections Deputy Commissioner Portia Parker indicated that Waterman “is an adult in the eyes of the law.”

Alaska law places persons charged with first-degree murder at the age of 16 or older in the adult court system, and most of the records concerning this case are open to the public for inspection.

One of the last entries in Rachelle’s journal wonders whether anyone is reading her comments (verbatim spelling):

Although Waterman has not yet been convicted, sociologists and forensic psychologists are beginning to study her journal and the circumstances of her writing it. (The police have seized her computer and are examining the contents of its hard drive for evidence.)

LiveJournal has subsequently restricted the viewing of her journal.

When interviewed by Alaskan television station KTUU about the nature of online journals, (in late November, 2004) forensic psychologist Susan LaGrande commented that “[i]t’s such an anonymous vehicle that you can be whoever or say whatever you want. You don’t have all the responsibilities that are inherent in a face-to-face real, legitimate relationship.

This same report pointed out that Rachelle Waterman had mentioned suicide in her online journal.

Criminologist Susan Magestro was interviewed by KTUU on the subject of juvenile crime, in late November, 2004, after Waterman became the second teenager within two months to be accused of murdering her own parent. She stated that “I think that we’re starting to see more violence with kids who are younger, and the behaviors that they’re exhibiting are more aggressive and more violent.” Magestro also opined that “we’ve got a lot more fetal alcohol and drug children who are growing up, and they don’t understand the consequences of some of their actions.” (There is no indication that Waterman was a so-called “fetal alcohol” or “drug” child.)

KTUU reported that Magestro “…blames violent movies, TV shows and videogames for desensitizing young people, making them unable to understand the consequences — or even the reality — of their actions.”

Although Waterman has been waived into the adult justice system due to the nature of the crime, the Governor of Alaska, Frank Murkowski, has proposed increasing the number of personnel assigned to the juvenile justice system.

Wednesday, December 5, 2007

On Tuesday, the United States Senate Committee on Homeland Security and Governmental Affairs‘s Permanent Subcommittee on Investigations held a hearing titled “Credit Card Practices: Unfair Interest Rate Increases.” The hearing examined the circumstances under which credit card issuers may increase the interest rates of cardholders who are in compliance with the terms of their credit cards. It was a follow-up to a March 2007 hearing.

Subcommittee Chairman Carl Levin said in his opening statement: “Today’s focus is on credit card issuers who hike the interest rates of cardholders who play by the rules — meaning those folks who pay on time, pay at least the minimum amount due, and wake up one day to find their interest rate has gone through the roof — again, not because they paid late or exceeded the credit limit, but because their credit card issuer decided they should be ‘repriced’.”

Present to testify on behalf of credit card issuers were Roger C. Hochschild of Discover Financial Services, Bruce L. Hammonds of Bank of America Corporation, and Ryan Schneider of Capital One Financial Corporation.

Much of the 90 minute hearing focused on specific cases where interest rates were raised, allegedly because credit scores of the debtor dropped, and not because they were delinquent or otherwise behind on payments. According to Levin, this practice made it so that almost all payments went towards finance charges with almost none toward repaying the principal. This, he felt, is an unfair practice, as the credit card companies were negligent in informing their customers of the rate hikes and the reason for such hikes.

The collective credit card debt of Americans totals an estimated US$900 billion. Issuers have come under pressure to disclose their policies in regards to setting fees and interest rates. The US Truth in Lending Act requires that terms of a loan be set forth up front. Fluctuating interest rates on credit cards would, on the surface, appear to violate this act.

Roger C. Hochschild disagreed, arguing that “every card transaction is a new extension of credit … This makes it difficult — and risky — to underwrite, and price, the loan based solely on the borrower’s credit-worthiness at the time of application [for the card].”

Ryan Schneider, agreed: “The ability to modify the terms of a credit card agreement to accommodate changes over time to the economy or the credit-worthiness of consumers must be preserved.”

“Attempts to interfere with the market here … will inevitably result in less credit being offered,” warned Bruce Hammonds. “Risk-based pricing has democratized access to credit,” he added.

All three credit card executives also mentioned an ongoing Federal Reserve System review of credit card rules that already proposes a 45-day notification ahead of any rate changes.

Committee members criticized the industry for varying practices. Included in the criticism was the practice of mailing checks to card-holders, failing to notify applicants that obtaining additional cards could lower their credit score and raise their rates, and “ambushing” card-holders with raised rates.

Ranking minority member of the subcommittee, Norm Coleman said, “families find themselves ensnared in a seemingly inescapable web of credit card debt. They particularly report being saddled with interest rates that skyrocketed on them seemingly out of the blue.”

[edit]

Monday, July 17, 2006

For 30 minutes, a mob of heavily-armed gunmen tore through a Shiite populated market town in Mahmoudiya, Iraq, exploding car bombs and shooting at people.

Police Capt. Rashid al-Samaraie said the assault which killed at least 60 began at 9 a.m. when mortars were fired into the town and a group of men in cars stormed a checkpoint, killing three Iraqi soldiers.

The gunmen proceeded to attack shoppers and passers-by with automatic weapons and rocket propelled grenades. Some of the 50 strong attack force threw grenades into open restaurants and cafes. Two car bombs also were detonated leading to further casualties.

Local town official Sheik Bassem Anizi said he was an eyewitness to the events as they unfolded. “I saw the armed gunmen shooting randomly at the people. The terrorists wanted to send a message saying we can attack anywhere we want and kill civilians,” he said. Anizi escaped the massacre by hiding behind a wall in a hardware shop.

Early reports said a total of 60 people died and about 50 people were injured.