LilSugar

Five myths about the U.S. Postal Service

liliblu — Sun, 28 Feb 2010 18:51:56 -0800

What are your thoughts on the United States Postal Service?
By John E. Potter
Sunday, February 28, 2010
For 235 years, the U.S. Postal Service has delivered your mail in snow, rain and dark of night. However, tough market conditions are creating new challenges for our business. Misconceptions about the future of our enterprise abound; dispelling these myths will show that we can continue to deliver the mail.

1. The Postal Service wastes taxpayer dollars.
The Postal Service, reorganized in 1971 as an independent agency of the executive branch, operates as a commercial entity. We rely on the sale of postage, mail products and services for revenue.
A small annual appropriation from Congress reimburses the USPS for free mail for the blind and absentee-ballot mailing for overseas military personnel. Otherwise, we have not received taxpayer funds to support postal operations since 1982; in fact, though we're often described as "quasi-governmental," we're required by law to cover our costs.
2. The Postal Service is inefficient.
Ten years ago, it took 70 employees one hour to sort 35,000 letters. Today, in that same hour, two employees process that same volume of mail. Though the number of addresses in the nation has grown by nearly 18 million in the past decade, the number of employees who handle the increased delivery load has decreased by more than 200,000.
According to the U.N.-affiliated Universal Postal Union, we deliver nearly half of the world's mail. The World Economic Forum, host of the annual summit of global power players in Davos, Switzerland, consistently ranks the U.S. Postal Service among the top 4 percent of more than 120 nations' and territories' postal services.
But keeping operating costs down is the greatest testament to efficiency. Since 2002, the Postal Service has cut its costs by $43 billion, including by $6 billion in 2009. These savings have come through workforce and overtime reduction, the renegotiation of more than 500 supplier contracts, the consolidation of facilities, the closing of administrative offices, and cuts in travel expenses and supply budgets.
Despite such efforts, the Postal Service was added to the Government Accountability Office's "high-risk list" last July to help put it on a more sustainable financial path. The GAO assessment, with which we agree, accurately reflects the Postal Service's fiscal condition, but the announcement also noted that many of the actions we've taken to reduce costs should continue.
We've also asked Congress to eliminate the statutory requirement that we deliver mail six days a week. A switch to five-day delivery would help us save more than $3 billion a year while still devoting appropriate resources to delivering the mail.
3. Mail is not reliable.
Independent quarterly surveys conducted by IBM confirm that the Postal Service has achieved record reliability levels. In the last quarter of 2009, on-time overnight delivery of single-piece first-class mail was at 96 percent for the fifth straight quarter, an agency best.
We're not only punctual, we're trusted and secure. According to the Federal Trade Commission, as little as 2 percent of identity crimes occur through the mail. Theft of a wallet or purse is responsible for 5 percent -- meaning your documents are safer in the mail then they are in your pocket.
4. The USPS is not environmentally friendly.
There's no way around it: Delivering mail uses fossil fuels, and mail often produces paper waste. Still, the Postal Service is greener than you think. As long as consumers and businesses use physical mail, we're committed to finding ways to process it responsibly.
Our fleet of 44,000 alternative-fuel-capable vehicles is one of the largest in the world and includes electric, three-wheeled electric, hybrid electric, ethanol, fuel-cell, biodiesel and propane technology. More than a half-billion packages and envelopes that we provide free annually are recyclable and made of environmentally friendly materials. The quality of the raw materials in our packaging, including tape and labels, makes the USPS the only shipping company to meet the stringent eco-design and manufacturing standards set by McDonough Braungart Design Chemistry in its Cradle to Cradle program.
Last year, we recycled more than 200,000 tons of paper, plastics and other waste -- the equivalent of saving 1.67 million barrels of oil, according to an online Environmental Protection Agency calculator. There are Leadership in Energy and Environmental Design (LEED)-certified post offices, a 2.5-acre green roof on a major facility in downtown Manhattan, solar photovoltaic building systems and other sustainable building designs in use across the country.
Still, saving the environment doesn't begin and end with the Postal Service. That's why we encourage our customers to "read, respond and recycle." In 8,000 post offices nationwide, signs remind P.O. box customers to open their mail, take whatever action is necessary and place the waste in our recycling bins. The EPA reports that standard mail represents less than 2.1 percent of the material in our nation's landfills. (By comparison, disposable diapers represent 2.2 percent, glass beer and soft-drink bottles 3 percent, and yard trimmings 6.9 percent.)
5. The USPS can't compete with the private sector.
The Postal Service can and does compete. Our closest competitors, UPS and FedEx, don't threaten our business; as two of our biggest customers, they help build it. Our competition pays us to deliver more than 400 million of their ground packages every year in residential areas and on Saturdays. In turn, the USPS contracts with UPS and FedEx for air transportation to take advantage of their comprehensive air networks.
Although stamp prices have increased about 33 percent over the past 10 years, this increase is in line with inflation. By comparison, private carriers raised their prices by as much as 60 percent between 1999 and 2009. The Postal Service is, and has always been, a bargain.
It's no secret that the Postal Service has been losing money since 2007. What are not well known are the financial demands of the Postal Reform Act of 2006 -- demands not faced by the private sector. Though the USPS is self-supporting, its finances are tied to the federal budget because postal employees participate in federal retirement plans. In 2006, Congress required that the USPS prefund 80 percent of future postal retiree health benefits. This will cost more than $5 billion a year through 2016. No other federal agency or private company carries such a heavy burden.
Without the prefunding requirement, the Postal Service would have been better able to weather the recent recession. In 2008, prefunding contributed to a loss of $2.8 billion. Without it, we would have been $2.8 billion in the black.
Though we operate in a difficult legislative and economic environment, we are prepared to forge ahead. On March 2, we are releasing our plan for future financial viability and greater business flexibility -- a plan that will keep the Postal Service thriving for years to come.
John E. Potter is postmaster general of the United States.
http://www.washingtonpost.com/wp-dyn/content/article/2010/02/25/AR2010022504888.html?hpid%3Dopinionsbox1&sub=AR

Millions of Unemployed Face Years Without Jobs

Roarman — Tue, 23 Feb 2010 08:42:41 -0800

Even as the American economy shows tentative signs of a rebound, the human toll of the recession continues to mount, with millions of Americans remaining out of work, out of savings and nearing the end of their unemployment benefits.

Economists fear that the nascent recovery will leave more people behind than in past recessions, failing to create jobs in sufficient numbers to absorb the record-setting ranks of the long-term unemployed.

Call them the new poor: people long accustomed to the comforts of middle-class life who are now relying on public assistance for the first time in their lives - potentially for years to come.

Yet the social safety net is already showing severe strains. Roughly 2.7 million jobless people will lose their unemployment check before the end of April unless Congress approves the Obama administration’s proposal to extend the payments, according to the Labor Department.

Here in Southern California, Jean Eisen has been without work since she lost her job selling beauty salon equipment more than two years ago. In the several months she has endured with neither a paycheck nor an unemployment check, she has relied on local food banks for her groceries.

She has learned to live without the prescription medications she is supposed to take for high blood pressure and cholesterol. She has become effusively religious - an unexpected turn for this onetime standup comic with X-rated material - finding in Christianity her only form of health insurance.

“I pray for healing,” says Ms. Eisen, 57. “When you’ve got nothing, you’ve got to go with what you know.”

Warm, outgoing and prone to the positive, Ms. Eisen has worked much of her life. Now, she is one of 6.3 million Americans who have been unemployed for six months or longer, the largest number since the government began keeping track in 1948. That is more than double the toll in the next-worst period, in the early 1980s.

Men have suffered the largest numbers of job losses in this recession. But Ms. Eisen has the unfortunate distinction of being among a group - women from 45 to 64 years of age - whose long-term unemployment rate has grown rapidly.

In 1983, after a deep recession, women in that range made up only 7 percent of those who had been out of work for six months or longer, according to the Labor Department. Last year, they made up 14 percent.

Twice, Ms. Eisen exhausted her unemployment benefits before her check was restored by a federal extension. Last week, her check ran out again. She and her husband now settle their bills with only his $1,595 monthly disability check. The rent on their apartment is $1,380.

“We’re looking at the very real possibility of being homeless,” she said.

Every downturn pushes some people out of the middle class before the economy resumes expanding. Most recover. Many prosper. But some economists worry that this time could be different. An unusual constellation of forces - some embedded in the modern-day economy, others unique to this wrenching recession - might make it especially difficult for those out of work to find their way back to their middle-class lives.

Labor experts say the economy needs 100,000 new jobs a month just to absorb entrants to the labor force. With more than 15 million people officially jobless, even a vigorous recovery is likely to leave an enormous number out of work for years.

Some labor experts note that severe economic downturns are generally followed by powerful expansions, suggesting that aggressive hiring will soon resume. But doubts remain about whether such hiring can last long enough to absorb anywhere close to the millions of unemployed.

A New Scarcity of Jobs

Some labor experts say the basic functioning of the American economy has changed in ways that make jobs scarce - particularly for older, less-educated people like Ms. Eisen, who has only a high school diploma.

Large companies are increasingly owned by institutional investors who crave swift profits, a feat often achieved by cutting payroll. The declining influence of unions has made it easier for employers to shift work to part-time and temporary employees. Factory work and even white-collar jobs have moved in recent years to low-cost countries in Asia and Latin America. Automation has helped manufacturing cut 5.6 million jobs since 2000 - the sort of jobs that once provided lower-skilled workers with middle-class paychecks.

“American business is about maximizing shareholder value,” said Allen Sinai, chief global economist at the research firm Decision Economics. “You basically don’t want workers. You hire less, and you try to find capital equipment to replace them.”

During periods of American economic expansion in the 1950s, ’60s and ’70s, the number of private-sector jobs increased about 3.5 percent a year, according to an analysis of Labor Department data by Lakshman Achuthan, managing director of the Economic Cycle Research Institute, a research firm. During expansions in the 1980s and ’90s, jobs grew just 2.4 percent annually. And during the last decade, job growth fell to 0.9 percent annually.

“The pace of job growth has been getting weaker in each expansion,” Mr. Achuthan said. “There is no indication that this pattern is about to change.”

Before 1990, it took an average of 21 months for the economy to regain the jobs shed during a recession, according to an analysis of Labor Department data by the National Employment Law Project and the Economic Policy Institute, a labor-oriented research group in Washington.

After the recessions in 1990 and in 2001, 31 and 46 months passed before employment returned to its previous peaks. The economy was growing, but companies remained conservative in their hiring.

Some 34 million people were hired into new and existing private-sector jobs in 2000, at the tail end of an expansion, according to Labor Department data. A year later, in the midst of recession, hiring had fallen off to 31.6 million. And as late as 2003, with the economy again growing, hiring in the private sector continued to slip, to 29.8 million.

It was a jobless recovery: Business was picking up, but it simply did not translate into more work. This time, hiring may be especially subdued, labor economists say.

Traditionally, three sectors have led the way out of recession: automobiles, home building and banking. But auto companies have been shrinking because strapped households have less buying power. Home building is limited by fears about a glut of foreclosed properties. Banking is expanding, but this seems largely a function of government support that is being withdrawn.

At the same time, the continued bite of the financial crisis has crimped the flow of money to small businesses and new ventures, which tend to be major sources of new jobs.

All of which helps explain why Ms. Eisen - who has never before struggled to find work - feels a familiar pain each time she scans job listings on her computer: There are positions in health care, most requiring experience she lacks. Office jobs demand familiarity with software she has never used. Jobs at fast food restaurants are mostly secured by young people and immigrants.

If, as Mr. Sinai expects, the economy again expands without adding many jobs, millions of people like Ms. Eisen will be dependent on an unemployment insurance already being severely tested.

“The system was ill prepared for the reality of long-term unemployment,” said Maurice Emsellem, a policy director for the National Employment Law Project. “Now, you add a severe recession, and you have created a crisis of historic proportions.”

Fewer Protections

Some poverty experts say the broader social safety net is not up to cushioning the impact of the worst downturn since the Great Depression. Social services are less extensive than during the last period of double-digit unemployment, in the early 1980s.

On average, only two-thirds of unemployed people received state-provided unemployment checks last year, according to the Labor Department. The rest either exhausted their benefits, fell short of requirements or did not apply.

“You have very large sets of people who have no social protections,” said Randy Albelda, an economist at the University of Massachusetts in Boston. “They are landing in this netherworld.”

When Ms. Eisen and her husband, Jeff, applied for food stamps, they were turned away for having too much monthly income. The cutoff was $1,570 a month - $25 less than her husband’s disability check.

Reforms in the mid-1990s imposed time limits on cash assistance for poor single mothers, a change predicated on the assumption that women would trade welfare checks for paychecks.

Yet as jobs have become harder to get, so has welfare: as of 2006, 44 states cut off anyone with a household income totaling 75 percent of the poverty level - then limited to $1,383 a month for a family of three - according to an analysis by Ms. Albelda.

“We have a work-based safety net without any work,” said Timothy M. Smeeding, director of the Institute for Research on Poverty at the University of Wisconsin, Madison. “People with more education and skills will probably figure something out once the economy picks up. It’s the ones with less education and skills: that’s the new poor.”

Here in Orange County, the expanse of suburbia stretching south from Los Angeles, long-term unemployment reaches even those who once had six-figure salaries. A center of the national mortgage industry, the area prospered in the real estate boom and suffered with the bust.

Until she was laid off two years ago, Janine Booth, 41, brought home roughly $10,000 a month in commissions from her job selling electronics to retailers. A single mother of three, she has been living lately on $2,000 a month in child support and about $450 a week in unemployment insurance - a stream of checks that ran out last week.

For Ms. Booth, work has been a constant since her teenage years, when she cleaned houses under pressure from her mother to earn pocket money. Today, Ms. Booth pays her $1,500 monthly mortgage with help from her mother, who is herself living off savings after being laid off.

“I don’t want to take money from her,” Ms. Booth said. “I just want to find a job.”

Ms. Booth, with a résumé full of well-paid sales jobs, seems the sort of person who would have little difficulty getting work. Yet two years of looking have yielded little but anxiety.

She sends out dozens of résumés a week and rarely hears back. She responds to online ads, only to learn they are seeking operators for telephone sex lines or people willing to send mysterious packages from their homes.

She spends weekdays in a classroom in Anaheim, in a state-financed training program that is supposed to land her a job in medical administration. Even if she does find a job, she will be lucky if it pays $15 an hour.

“What is going to happen?” she asked plaintively. “I worry about my kids. I just don’t want them to think I’m a failure.”

On a recent weekend, she was running errands with her 18-year-old son when they stopped at an A.T.M. and he saw her checking account balance: $50.

“He says, ‘Is that all you have?’ ” she recalled. “ ‘Are we going to be O.K.?’ ”

Yes, she replied - and not only for his benefit.

“I have to keep telling myself it’s going to be O.K.,” she said. “Otherwise, I’d go into a deep depression.”

Last week, she made up fliers advertising her eagerness to clean houses - the same activity that provided her with spending money in high school, and now the only way she sees fit to provide for her kids. She plans to place the fliers on porches in some other neighborhood.

“I don’t want to clean my neighbors’ houses,” she said. “I know I’m going to come out of this. There’s no way I’m going to be homeless and poverty-stricken. But I am scared. I have a lot of sleepless nights.”

For the Eisens, poverty is already here. In the two years Ms. Eisen has been without work, they have exhausted their savings of about $24,000. Their credit card balances have grown to $15,000.

“I don’t know how we’re still indoors,” she said.

Her 1994 Dodge Caravan broke down in January, leaving her to ask for rides to an employment center.

She does not have the money to move to a cheaper apartment.

“You have to have money for first and last month’s rent, and to open utility accounts,” she said.

What she has is personality and presence - two traits that used to seem enough. She narrates her life in a stream of self-deprecating wisecracks, her punch lines tinged with desperation.

“See that,” she said, spotting a man dressed as the Statue of Liberty. Standing on a sidewalk, he waved at passing cars with a sign advertising a tax preparation business. “That will be me next week. Do you think this guy ever thought he’d be doing this?”

And yet, she would gladly do this. She would do nearly anything.

“There are no bad jobs now,” she says. “Any job is a good job.”

She has applied everywhere she can think of - at offices, at gas stations. Nothing.

“I’m being seen as a person who is no longer viable,” she said. “I’m chalking it up to my age and my weight. Blame it on your most prominent insecurity.”

Two Incomes, Then None

Ms. Eisen grew up poor, in Flatbush in Brooklyn. Her father was in maintenance. Her mother worked part time at a company that made window blinds.

She married Jeff when she was 19, and they soon moved to California, where he had grown up. He worked in sales for a chemical company. They rented an apartment in Buena Park, a growing spread of houses filling out former orange groves. She stayed home and took care of their daughter.

“I never asked him how much he earned,” Ms. Eisen said. “I was of the mentality that the husband took care of everything. But we never wanted.”

By the early 1980s, gas and rent strained their finances. So she took a job as a quality assurance clerk at a factory that made aircraft parts. It paid $13.50 an hour and had health insurance.

When the company moved to Mexico in the early 1990s, Ms. Eisen quickly found a job at a travel agency. When online booking killed that business, she got the job at the beauty salon equipment company. It paid $13.25 an hour, with an annual bonus - enough for presents under the Christmas tree.

But six years ago, her husband took a fall at work and then succumbed to various ailments - diabetes, liver disease, high blood pressure - leaving him confined to the couch. Not until 2008 did he secure his disability check.

And now they find themselves in this desert of joblessness, her paycheck replaced by a $702 unemployment check every other week. She received 14 weeks of benefits after she lost her job, and then a seven-week extension.

For most of October through December 2008, she received nothing, as she waited for another extension. The checks came again, then ran out in September 2009. They were restored by an extension right before Christmas.

Their daughter has back problems and is living on disability checks, making the church their ultimate safety net.

“I never thought I’d be in the position where I had to go to a food bank,” Ms. Eisen said. But there she is, standing in the parking lot of the Calvary Chapel church, chatting with a half-dozen women, all waiting to enter the Bread of Life Food Pantry.

When her name is called, she steps into a windowless alcove, where a smiling woman hands her three bags of groceries: carrots, potatoes, bread, cheese and a hunk of frozen meat.

“Haven’t we got a lot to be thankful for?” Ms. Eisen asks.

For one thing, no pinto beans.

“I’ve got 10 bags of pinto beans,” she says. “And I have no clue how to cook a pinto bean.”

Local job listings are just as mysterious. On a bulletin board at the county-financed ProPath Business and Career Services Center, many are written in jargon hinting of accounting or computers.

“Nothing I’m qualified for,” Ms. Eisen says. “When you can’t define what it is, that’s a pretty good indication.”

Her counselor has a couple of possibilities - a cashier at a supermarket and a night desk job at a motel.

“I’ll e-mail them,” Ms. Eisen promises. “I’ll tell them what a shining example of humanity I am.”

Source: http://www.nytimes.com/2010/02/21/business/economy/21unemployed.html?sq=... New Poor&st=cse&scp=1&pagewanted=all

Rob's Details Interview

athena4rob — Sat, 13 Feb 2010 08:34:10 -0800

COFFEEIt's the unseasonably cold November of 2008 when I go to New York's Bowery Hotel. There's a young man sitting in the garden, wrapped in about nine black sweaters and wearing a wool hat, smoking cigarettes, sipping a latte the size of his head, and furiously making notes on a script in the bitter cold. I have read about teenage girls lighting themselves on fire in front of his hotel, but at the moment Robert Pattinson is warming his hands on a coffee cup.
Hello, I'm Jenny. I think I'm here so you can check me out."Okay. I'm Rob. Um . . . would you like some fries? With gravy?"
Allen Coulter, the director of Hollywoodland and a creative force behind The Sopranos, has sent me. He was thinking about doing this movie-it wasn't quite there yet, but I should "come meet Rob."
Rob. When he came to the United States, he slept on his agent's sofa and then got a small part in a movie called Harry Potter and the Something of Something, which grossed nearly $900 million worldwide. And then he made another one, called Twilight, which grossed $385 million in theaters and almost another $200 million in U.S. DVD sales. Box-office riches, like so much of the female population of this planet, follow him from continent to continent, nursing a raging crush.
Coulter suggested I do some rewrite work on Remember Me (for the record, there is only one credited writer, Will Fetters), the first American release in which Rob will portray a mortal, nonmagical, carbon-based life form of the earthly realm-Salvador Dalí, whom he played in Little Ashes, surely doesn't qualify. As Rob scribbles away on the script's pages, it's clear he is starting his own revision process.
Rob's face is constantly busy-especially his kaleidoscopic eyes, which are continually rolling and dilating, because he is always thinking. Over the course of that latte, he contemplates Jimi Hendrix, French fries, girls, art, beer, his cousin the philosopher, girls, truth, God, his dog, girls, and whether this week's stalker has followed him from L.A. I don't think he could turn his brain off if he wanted to.
Despite the legion of fans trailing him from hotel to hotel, laying siege to each like the Roman army, he is neither fearful nor cocky-he's hungry, curious, forever reaching intellectually. That may not sound like a big deal, but think of the context: Complete strangers want to f*ck you, shoot you, be you, buy you, sell you, run their fingers through your hair, watch you have sex, hear you pee, eat chips with you, and kidnap you and stuff you in the trunk of their car. And you? You must know more, more, more about exotic tropical diseases.
Rob and I discover we share a mutual fascination with afflictions that maim and disfigure and disgust: He brings up cancrum oris, in which bacteria eat away at your face until you get kind of a window in the side of your head and the entire world sees your teeth; I mention cyclic vomiting syndrome, a condition in which you puke literally all the goddamn time; he delights in lymphatic filariasis, where parasitic worms burrow into your lymph nodes and can make your balls swell to the size of watermelons, forcing you to tote them around in a wheelbarrow.
We come up with a blockbuster hit movie, entitled Candiru Infestation, about a tiny fish that swims up your urethra and into your urinary tract and lodges in your cock with backward-facing umbrella spikes it shoots from its spine.

"f*cking brilliant! It could be like Finding Nemo!" says Rob. "And the little candiru is lost in the balls! Think of the soundtrack!"

BEER NO. 1Fourteen months later we're in London. New Moon, the second movie in the Twilight saga, has set box-office records for largest midnight opening and biggest opening-day gross. Remember Me, Rob's young-man-in-crisis drama, has wrapped. He has 24 hours before he has to start rehearsals for Bel Ami, based on the Guy de Maupassant novel, in which he plays a bed-hopping social climber.
He is waiting to pick me up in the bar of my hotel. He has ordered himself a pint of beer and, remembering my beverage of choice, a Diet Coke for me. He has the lovely manners of the good son of a good mum.
He says he wants to take me to a particular restaurant nearby, "just a little out-of-the-way place." So out of the way, it turns out, that after wandering around nearly all of Covent Garden, we can't find it. He doesn't seem too surprised, really. Of late he's been getting lost a lot in his own hometown. But then it's been a couple of years since he's actually lived here, and London is confusing as hell anyway.
Considering alternatives, we peek into a crowded café full of the young and beautiful, but he recoils. A few minutes later, when we come to a tiny Mexican place, his hackles go up a bit. Hmm. I ask him whether, at this point, he's able to sniff out crazed fans lurking under the tables.
"Yes. Sure. But last time I was here, the guacamole was bad."
Rob has made no sartorial concessions to Britain's ugliest winter weather in 30 years. A button-down, light Carhartt-like jacket, no gloves. He does have a hat, perhaps the same one he wore in New York. I'm swaddled like the Michelin Man and I'm f*cking freezing. He's cheery, unfazed, giggling away. It occurs to me that London seems to afford him a freedom he doesn't have in New York or Los Angeles. And a London night with deserted, snow-piled streets, after an epic storm that paralyzed Heathrow and shut down the Eurostar trains, is like an unbridled romp while going commando.
Without trying, we arrive back where we started, in front of the Covent Garden Hotel. Across the street there's a high-end sex-toy-and-bondage shop called Coco de Mer. I mention that I popped in there earlier (before the National Gallery, thank you), and I tell him about this insane S&M body-harness contraption they have that allows you to dress up like a horse and have a long tail.
"That's so English. I want to do this entire interview wearing it, from an equine point of view," he says, stomping the sidewalk with make-believe hooves. "Seriously. As an experiment in public perceptions. Is the place still open?"
BEER NO. 2We're inside, at a warm corner of the hotel's Brasserie Max, and Rob is having another beer. We're talking about how he copes. "When I was 17 until, I don't know, 20, I had this massive, baseless confidence. This very clear idea of myself and how I would achieve success, which involved making decisions. I saw myself picking up the phone and saying 'Absolutely not' or 'Definitely yes.' Having control. Except you have to figure out whether the way you think at 19 or 20 has any value. And eventually I understood, with all that control, which was probably illusory, I wasn't progressing. So now I'm relinquishing a bit. I'll be a tiny bit naked. Except tonight I won't, because it's f*cking freezing and my balls will shrivel up."

He may keep his balls covered in winter, but Allen Coulter says that during the shooting of Remember Me, Rob did bare himself: "It was about control, for him, in the beginning. But he wanted forward motion more than he wanted to protect himself. Really brave-especially for a young guy with a big target on his back."
Rob does seem eager to shed some clothing, to give up the reins.
"Shall we go see about that harness? Seriously, you eventually realize you can't make every single decision. I was always building, always protecting something. At the same time, I seemed to be losing the ability to move. I'd protected myself into checkmate. Even mentally." In that moment, he has a realization: "I can barely remember the last two years. Not like a haze of partying or anything like that. Just . . . it's been crazy."
There's been surreal stuff. Like the time at a charity event in Cannes when two attendees bid nearly $60,000 combined to have Rob give their daughters a kiss on the cheek. There's been scary stuff, though the idea he might truly be at risk strikes him as absurd: "I find it really funny-if I got shot, I would literally be in hysterics. I would be like, 'Are you serious? Jesus Christ, get Zac Efron! He's got more social relevance than I do.'" He's pretty sure there was some good stuff, too. "There was this one time with some elephants on a golf course in Barcelona . . ."
He drifts into a reverie. He gets amazed easily, and at the moment he's fixated on the mysterious green bar snacks. They're sort of like wasabi peas, but not. They're covered in chili powder and look like tiny tumors. He's eating every single one.
"f*ck, these are good. What are they? I want to snort them-they'd clear up my sinuses."
BEER NO. 3Rob's hunger is more than merely metaphorical. He orders two entrees-the mini beef burgers with tomato-and-onion relish and the mini chicken burgers with mango chutney-along with another pint. "I eat so much, I'm like a compulsive eater. I've been eating room service, and I'm always really worried about it, so I choose like six things on the menu and eat them all."
He doesn't want to miss anything, which implies a hint of regret. He didn't always want to be an actor. He modeled. He's a talented guitarist and keyboard player who has toyed with following his older sister Lizzy into pop music. But he's a serious type, and his most serious aspirations involved political speech writing. "It's fascinating. You'd have two or three minutes to affect someone. Make them hear you. Get the message out and maybe it will echo. I quite enjoyed doing press for the first Twilight, because there was a similarity. But after a bit I was ladling it out. If you want people to listen to you, you'd better have something to say. I felt a responsibility to be fascinating. You're bargaining with the audience. Is this enough for them? And that affects the way you look at art."
Art. It's illogical to think he's not allowed to have ideas about it merely because he has helped a lot of people make a lot of money.
"Before, I felt like I couldn't break through anything, including myself. And now it feels a bit as though I've climbed along the side of my brain and am at least looking in. But I know it will take me at least another 10 years before I'm remotely satisfied with anything I do. But with acting you keep trying in the hopes you might be . . . great. But then I think, does wanting to be good or even great, or even just wanting to make art, cheapen the experience?"

I worry his head is going to explode. He answers questions with questions. Doors open onto more doors. This sometimes leads to trouble with scripts: Since he sees every character's point of view, he often needs some sort of distillation. The catch is that unless the distillation somehow encompasses every character's essence, it only causes his imagination to fire more wildly. It's the kaleidoscope-vision thing.
Some people can have the ocean in front of them and just put their big toe in. Rob wants to swim until he drowns, and he's going to try to drink it all up before he goes under. His striving is a source of worry because he can't really tell anybody he wants more: "Please don't make this about me complaining. Please. I'm the luckiest bastard on the planet." He worries he might be selfish. He worries maybe he's a nonhumanist-separatist-weirdo because his most profound moments have been with his dog. And he worries about whether he can be an actor who can reach the masses and still ask for anything.
"If it exists out there-this invisible-creative-spirit-idea thing-then you're the medium through which it travels so everybody can touch it. But . . . what gives you the right to be the medium? What gives you the right to claim it? And then get an agent and say I want $20 million and a fruit basket to be the medium, thank you very much.
"As an actor, you can elevate the human condition or cheapen it. I would assume it's the same with anything you do-you try to elevate and maybe someday you will." An actor may indeed have the ability to raise us, but Rob unconsciously starts speaking sotto voce each time he utters the word actor or any variation of it.
Rob, did you know that every time you say actor or acting you lower your voice to a whisper?He's genuinely startled. "I do?"Yes, so quietly it's like you're saying Negro.He laughs, lightens up. "What if we were 'acting' like 'Negroes'? Then we'd be f*cked-we couldn't hear anything. . . ."
BEER NO. 4Rob asks the waiter for another beer. He's talking about an uncle who worked in a steel mill in the Yorkshire town his dad grew up in. Rob's father and his other uncles moved away as soon as they were old enough, but the eldest brother stayed there his whole life.
"They're bulldozing houses, whole streets of houses. And my dad asked him, 'Why stay?' He said, 'Who's going to look after our mom?' And I was just thinking, Jesus f*cking Christ, there might be something wrong with my emotional sight, because I'm not sure if I could make that kind of sacrifice. The only emotional connection of relevance is with my dog. My relationship with my dog, it's ridiculous.
"I think you need to be able to break through what you think about yourself to try to make any sort of art. I used to play music all the time, and the most amazing part was the freedom that came with kicking myself in the ass, letting go, and surprising myself."
He tried to let go a little bit with the photo shoot accompanying this interview-it wasn't easy.
"I really hate vaginas. I'm allergic to vagina. But I can't say I had no idea, because it was a 12-hour shoot, so you kind of get the picture that these women are going to stay naked after, like, five or six hours. But I wasn't exactly prepared. I had no idea what to say to these girls. Thank God I was hungover."

Is your mom going to have something to say about it?"Oh, God." He puts his head in his hands, shrugs. "Well, she quite enjoyed when I got her cable." It's not that Rob's mother now spends all night watching Skinemax in her London home. "No, no! God, no! It's just that there's nakedness all over the place now. But this shoot, it's kind of eighties nakedness, you know? If you look at porn in, like, the eighties, there was something kind of quaint about it, quite sweet-like this little naked community. The people who made it liked it, they had respect for it. Not remotely like the porn that's available now. No community in it at all. It's just everything, everywhere."
CANDYIn the U.K., Smarties are made of chocolate and are kind of like M&M's in weird colors like mauve and teal but somehow more delicious. Rob's not really a dessert guy, yet he's rapidly hoovering my last packet of Smarties. "Amazing. I've eaten like 5,000 of these already. See what you have to deal with?"
In Remember Me he plays a guy whose issues are eerily like his own. Tyler is a young man who has retreated into himself, but then he meets a woman, becomes conflicted, and has to choose whether to remain in lockdown or step into life and the world.
"Tyler is so aware of his actions. But he has no idea whether they're of any value at all. Can you be a person if you live in the bubble? He's stuck in the middle. At the same time, he's lucky to have the choice. Conflict is innate in a lucky person."
What attracted you to the role?"I'm a lucky person. Thank God. And I'm conflicted. Thank God."
He tells me about a book he read called Eat the Rich, by P.J. O'Rourke (full disclosure: P.J. was married briefly to my sister, though Rob had no idea). He was drawn to a part that says something like: One man's wealth does not mean another man's poverty-and vice versa. Rob's slightly embarrassed to voice this idea.
He is unsure whether to feel guilty, to bask in it all, or both. Thing is, there aren't any rules for a life as extraordinary as his is right now. He tells me an elephant story. Not the one about Barcelona elephants-one about some he'd met recently in California.
"Did you know elephants purr? It's completely scary if you don't know what it is. They purr like cats, but their heads are so deep they sound like velociraptors. You feel it in the ground under your feet. So this big female started sniffing my foot-big female elephant, that is. She sniffed it so hard it came up off the pavement like her trunk was a vacuum cleaner. Then she took my entire body in her mouth. I was holding on to her head, and as I slowly let go she tightened her grip really carefully until I'm just upside down in her mouth and she's going through my pockets with her trunk, looking for peppermints. It was the best day of my life."
So you gave up control to an elephant, got groped, mugged, had your candy tugged at-and it was glorious? "Yeah. So beautiful you can't imagine. And the baby elephant was so excited that it sprinted out and did its routine in five seconds and then curtsied to everybody. It was actually laughing. Brilliant. Did you know they can also do imitations of other animals? A horse, a chicken, a monkey-these elephants could, anyway. They were movie elephants. One had written a screenplay, and one really wants to direct."

He laughs. He was in Los Angeles, in discussions to star with Sean Penn in Water for Elephants, an adaptation of Sara Gruen's novel. The elephants are actors like him, and he wonders if he might, on some cosmic level, be a bit like them.
"Do you know how they die? The elephant guy told me their molars get ground down from eating wood but regenerate like six times. And after that they slowly starve to death. Which is poignant, but that must also be what gives them time to get to the elephant graveyard. They're incredibly designed creatures. I mean, people hang on way too f*cking long. If I knew that when my teeth fell out, that was it . . . Wow. The best day of my life. Beautiful, beautiful day."
A few moments later, Rob announces he's going to get a cab home and excuses himself.
Can I walk you? I don't like you going out there all by yourself."I'll be okay."

50 Cheap Date Ideas

PinkNC — Wed, 10 Feb 2010 07:17:05 -0800

Discount Dating

A lighter wallet is no excuse to turn date night into a luxury. Get out of your sweatpants, put down the cold pizza, and check out these 51 budget-friendly date ideas that will get you off the couch and into each other's pants.

Get on thin ice. Depending on the weather, head to an indoor or outdoor ice-skating rink - it's the perfect excuse to hold hands, "accidentally" fall on top of each other, and grab a cup of hot chocolate and cozy up to each other to keep warm.

Skip the pricey wine bar and grab a few beers at your local dive bar. Make sure you pick a place with a pool table or dartboard set up, and challenge him to a few games. Loser owes the winner a song on the jukebox.

He may hate to shop, but he'll end up thanking you if you drag him to a flea market. There's something for everyone and plenty of things you never knew existed - you might even discover he has a hobby or weird collection you didn't know about!

Settle in for a night of pampering: No pricey spa required. Use your empty wallets as an excuse to stay in - and up - all night. Run a bubble bath and then treat each other to full-body massages. Sleep in the next day.

Get an adrenaline rush at the roller-skating rink. As long as you don't mind being the oldest people there who aren't chaperoning their children, it's a great way to have fun and let loose with each other. Top it off with a bowl of ice cream when you get home.

Play house: Dress up in your most serious grownup outfit and leave your tiny apartment to visit some open houses. Spend the day arguing over where you would put the love seat, discussing the difference between eggshell and ecru paint, and giggling over strangers' hideous decorating choices.

Does he drive you up a wall sometimes? He probably feels the same way about you, so put on your sneakers and head to an indoor rock-climbing gym. Challenge him to a race to the top and relieve sore muscles with a hot shower together afterward. Just try not to gloat too much about beating him.

Celebrate the first snow of winter with a day of sledding. Pick a hilly spot in your town and use garbage can lids as makeshift sleds. Wear a bike helmet to up the dorky fun factor, and celebrate living through the experience with a cup of hot cocoa.

Spend the day picking fruit at a local farm, either one-on-one or with a few couples you know - the more the merrier. Once you've picked all the apples you can carry back to the car, get creative in the kitchen and think up some recipes with the fruit you picked. Judge each other's creations, Top Chef style.

Plan a trip. You might need to save up for awhile, but that doesn't mean you can't daydream. Plan your dream vacation with each other - it might be the incentive you need to start putting your loose change in the piggy bank.

Challenge your guy to a little friendly competition and surprise him by taking him to a rifle range. After each round, compare your targets - loser buys the next round of bullets; winner gets gloating privileges.

Spice up your movie-night routine by finding a drive-in movie theater. Stop at the supermarket on your way to load up on your favorite snacks, and bring blankets and pillows to make the car extra cozy. Let him pick the movie - you'll get points for being easygoing, even though you know you'll probably miss most of the movie.

The easiest way to booze it up on the cheap? Take a tour of a winery or brewery, and pick up some wine facts for your next dinner party while getting tipsy.

Dying to see a musical or play but can't afford the tickets? Call around to see if you can buy tickets to the dress rehearsal instead - you'll pay a fraction of the price for the same experience.

Wherever you live, chances are there are local bands dying for an audience. Check out MySpace for bands in your area and go to a show. Alternate with your guy on who gets to pick the band so that you both get a chance to enjoy your favorite music genres, and save cash on booze by bringing a flask.

Head to the bookstore and walk through the aisles together, showing each other your favorite books, bonding over the books you both hated, and flipping through a Kama Sutra book for ideas for later.

Bowl him over at the bowling alley. Psych him out by reminding him of how many gross people wore his shoes before him, and don't forget to program his sugary-sweet nickname ("Muffin Face") onto the computerized scoreboard instead of his real name.

Show him your rugged side and build something together. Ask him to help you build something like a coffee table or dresser for your place - he'll be psyched that you asked him, just as long as you can bite your tongue when the table he puts together falls apart the moment you set your cup of coffee down.

Appeal to his inner child (it shouldn't be too hard to tap into) and buy tickets for a carnival. Embrace the cheesiness - share cotton candy, let him try to win you a prize, and ride the Ferris wheel until you get nauseous. It's a great way to get to know each other if you've just started dating and will serve as a reminder of how much fun you can have together if you've been dating for awhile.

Keep up on the specials. For a break on your dinner bill, check out sites like Restaurant.com for the restaurant deals in your area. And check out the websites of your favorite bars - they might have drink specials on certain nights, like a free pizza with every drink.

Ask him about his fantasy cars and he'll probably talk your ear off. Head over to a local car dealership and test-drive the most expensive car they'll let you take out of the parking lot. Take turns at the wheel but resist the urge to nitpick each other's driving skills.

Indulge your sweet tooth with your sweetie - visit a chocolate or cookie factory. Do a quick Google search to see if there are any in your area and give one a call to see if it does tours. If it only does group tours, make it a group date and invite a few other couples.

Get spooked at a haunted house. Check out Hauntedhouse.com for listings in your state. Start off the night by watching a scary movie before you go, and then try not to laugh when he launches a foot into the air at every corner.

Get out those matching aprons and fire up the skillet for a night of cooking - for both of you. Learn how to cook each other's favorite meal and then do it together. Whether you end up with a delicious steak and tuna casserole for two or speed-dialing for Chinese takeout, you're guaranteed to enjoy the process.

Forget eating dinner parked in front of a Mad Men marathon until you and your boyfriend are tired of looking at each other. Invite another couple over that you don't know well for a potluck dinner. Ask them to bring the appetizer and dessert, and work on the main course with your guy. At least one of the dishes should come out edible, and you can bond with your new friends over your shared culinary failure.

Tap into your animal instincts by visiting a petting zoo. Bring some bread to feed the animals and spend a few hours debating him on why getting a pet monkey is a bad idea. When you get home, jump in the shower with him to scrub off the zoo smell.

Play 20 Questions. Whether you've been together for three weeks or three years, there are probably things you don't know about each other. Each of you should write down 20 questions about the other - make sure they're open-ended so you don't get boring one-word answers - and fire away. Take turns answering the questions and get to know each other a little better than you already do.

Take a pottery class together and decorate your apartment in misshapen vases and funky-looking coffee mugs. Resist the urge to make your guy recreate the scene from Ghost every time you walk into class.

Have pretentious conversations about art at a local show. You'll find them going on all year at community centers, schools, and libraries - you might even find a great piece of art to add to your home.

Take a hike. Spend the day hiking and taking pictures together. When you're ready to recover, add some extra romance to the evening - lie across the hood of the car and look at the stars.

If you're tired of a quiet dinner at home disintegrating into chips and dip on the couch with no conversation between the two of you except for requests to change the channel, grab a blanket and some food and have an indoor picnic. The best part of staying inside? No ants in your food - plus, you're free to get busy right then and there.

Take a class together. Sign up to learn something neither of you knows how to do. Community schools generally offer a lot of options for classes you can take in eight-week sessions, from cooking to karate.

Put on your walking shoes and head to the museum. Almost all museums have one day a week where you can get in for free or for a small suggested donation. Pick the exhibits you each want to see beforehand, and spend some time at each of them together.

Celebrate something special with a trip to a bed and breakfast. A one-night stay in the colder months won't break the bank, so you can put that extra cash toward a room with a hot tub or breakfast in bed. If you're in for a long car ride, grab a book on tape from the local library.

Look into the future: Go together for a psychic reading. Practice your poker faces and spend the rest of the night talking about how funny - or eerily accurate - the reading was.

Score major points and head to a baseball game with your guy. Tickets can be as cheap as $5 a person, but bring extra cash for some beer, hot dogs, and a giant foam finger.

Check the theater offerings at local colleges and high schools. Schools usually have a spring and a fall show, and it's a great way to see a version of your favorite plays and musicals for a fraction of the cost.

One man's junk is another couple's treasure. Grab your guy and see what you can dig up at local garage sales. Up your chances of scoring something great by going to the ritziest neighborhood in your area.

Rent bikes - a tandem one, if you're adventurous - and go for a long ride through the park. Pack a few sandwiches and plenty of water for a picnic, or just grab hot dogs from a stand when you're ready for a break.

See the stars without braving the cold by getting tickets to the planetarium. Sneak in a thin blanket and cozy up. For extra privacy, go during off-peak times - call ahead to see when those are.

Bummed that you can't afford a weeklong vacation with your man? Put things in perspective and volunteer together for a cause you both care about. TiVo Gossip Girl and sign up to work at a soup kitchen once a week, or cuddle up with lovable cats and dogs at your local animal shelter.

Want some quiet time? Exercise your creative talents by drawing each other. All you need are two pieces of paper, some art supplies, and a bottle of wine for a quiet, romantic night in. Go as artistic or as fun as you wish.

Get physical. Get free day passes to a gym whose membership you could never afford and have him spot you. Challenge him to a fitness competition, bribe him into taking a spin class with you, and take advantage of the gym's sauna or pool, if it has one.

You can knit holiday sweaters like nobody's business. Your man is a Guitar Hero rock star. It's great to have separate hobbies, but it's also fun to share. Pick a weekend to teach each other your hobbies, and serenade him with a guitar solo while he knits you a pair of mittens.

While you're waiting for your Netflix delivery, stop at your local library and rent a few old movies. Toss a coin to see whose pick you'll watch first, and promise not to interrupt with bored sighs, eye-rolling, or snoring sound effects during each other's choices.

Travel back in time and reminisce. If you or your guy still live close to where you grew up, give each other a tour of your childhoods. Grab a camera and take pictures of your all-grown-up selves as you visit each landmark.

Can't get away for a vacation? Sightsee in your own city. If you've lived in your area for a long time, chances are you never got around to seeing a lot of the tourist attractions. So grab your guy and pretend to be tourists for a weekend. Stop at a used bookstore or look online for travel guides for your city, put together an itinerary, and don't forget to take pictures!

Grab a cup of coffee and check out a local coffee shop's open mic night. You might luck out with a great show, or you may find a mixed bag of angsty guitar solos and bad poetry - either way, you'll have something to talk (or laugh) about on the way home.

You probably live within driving distance of a college or university. Log on to the school's website and check out the scheduled events - often, schools will open large events, like lectures and panels, to the public. Check back often - your guy's favorite movie director might be appearing at a screening at the school's drama department, or you might find a panel of your favorite authors speaking to the English majors.

Share a few laughs at a comedy club amateur night. Admission usually costs two drinks per person, and you're in for a hilarious night - whether you're laughing with the comedian or at him.
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Big Tobacco Working to Dodge Civil Judgments

stephley — Sun, 17 Jan 2010 07:22:38 -0800

WASHINGTON – Tobacco industry lawyers met secretly with Solicitor General Elena Kagan in an effort to avoid the government's last-ditch attempt to extract billions from companies that illegally concealed the dangers of cigarette smoking, The Associated Press has learned.

Four cigarette makers that control nearly 90 percent of U.S. retail cigarette sales have until Feb. 19 to persuade the government not to go to the Supreme Court and ask the justices to step into a landmark 10-year-old racketeering lawsuit.

In 2006, a judge ruled that the industry concealed the dangers of smoking for decades. Despite that finding, lower courts have said the government is not entitled to collect $280 billion in past profits or $14 billion for a national campaign to curb smoking.

As part of any effort to convince the government that it should skip a trip to the Supreme Court, the tobacco companies may have to drop plans to ask the justices to overturn the ruling that the industry engaged in racketeering.

On behalf of the industry, Washington lawyers Michael Carvin and Miguel Estrada made their pitch against seeking Supreme Court review in a mid-December meeting at the Justice Department with Kagan, according to two Washington attorneys outside the government who are familiar with the meeting in her office.

In the meeting, Carvin and Estrada left the impression the industry might be willing to end plans to seek a high court appeal of its own, if the Justice Department would do the same, said the Washington attorneys, who spoke on condition of anonymity so that they could discuss the private meeting with Kagan.

The discussion with Estrada and Carvin resulted in an internal department meeting a few days later. At this meeting, department lawyers discussed the possibility of seeking billions of dollars from the industry as part of a possible negotiated settlement of the suit, according to one of the private attorneys who learned about this second meeting from participants.

The department, the industry or both could request that the Supreme Court take the case, while at the same time asking that the case be delayed while the two sides try to work out a deal.

If the companies also agreed not to seek an appeal, they would be accepting the findings of U.S. District Judge Gladys Kessler that they engaged in a scheme to defraud the public by falsely denying the adverse health effects of smoking, concealing evidence nicotine is addictive and lying about their manipulation of nicotine in cigarettes to create addiction. Last May, a federal appeals court upheld the findings. The companies then pledged to appeal to the Supreme Court.

Kessler ordered the companies to make corrective statements about the adverse health effects of smoking, the addictiveness of smoking and nicotine, the companies' manipulation of cigarette design and composition to ensure optimum nicotine delivery and the adverse health effects of exposure to secondhand smoke. These statements must appear on company Web sites, cigarette packages and newspaper and television ads.

If Kessler's findings stand, they will set a precedent that other plaintiffs can use for future suits against the tobacco companies.

"The trial court's findings are devastating to the tobacco industry," said Matthew L. Myers, president of the Campaign for Tobacco-Free Kids, one of the public health groups allowed by Kessler to join the case in 2005 on the side of the Justice Department. "We have urged the department to go to the Supreme Court to significantly strengthen the remedies, particularly with regard to funding smoking cessation and public education."

Charles Miller, a Justice Department spokesman, declined comment, as did Carvin. Estrada didn't return telephone calls to his office.

Tobacco company defendants in the lawsuit are Philip Morris USA Inc. and its parent company, Altria Group Inc.; R.J. Reynolds Tobacco Co.; British American Tobacco Investments Ltd.; and Lorillard Tobacco Co. Philip Morris, R.J. Reynolds and Lorillard account for nearly 90 percent of U.S. retail cigarette sales. A former U.S. subsidiary of British American Tobacco, Brown & Williamson Tobacco Corp., merged with Reynolds in 2004.

The way the federal suit has played out contrasts sharply with state action against the tobacco industry.

The companies have agreed to pay $246 billion over 25 years to settle suits states brought to recover their costs of treating smoking-related illnesses in the Medicaid program, which serves the poor and disabled.

http://news.yahoo.com/s/ap/20100116/ap_on_bi_ge/us_tobacco_case_6

Frugal Tip Monday-Ways to Earn More Money

FashionWithoutGuilt — Tue, 12 Jan 2010 08:34:49 -0800

Did anyone get the message that it is already 2010. Where did time go!!! But no use crying over split milk. 2010 is here and now it's time to get in gear. LOL that rhymed. Here are some "GOALS" for 2010, not only for my blog and personally but financially too.
The end of last year my finances were not on track. I know Christmas and Birthdays but I was not being as responsible as I should. So this year I am putting myself on a "Money Rehab". I am trying not spend anymore until I make money from what I am not using. What I mean by that is,taking inventory of things in my home that are not being used (i.e. clothing, electronics, and anything else that can be up for sale).
So I will soon be posting items of clothing on Fashion Without Guilt that I am selling. And the sad part about is that, alot of the clothes I have not even worn yet. I know SHAME ON ME. But for all of you out there with this same dilemma, here are some good options for making extra money from items that are being used. 1. Reselling Sites-Ebay,Ecrater, and Craigslist are some of the most popular sites to post your new or gently used goods for profit.
2. Blogging-If many of you already have a blog, it would be smart to maybe post some of your items for sale. But please but cautious of this, I have a affordable fashion blog. If your blog is not geared towards fashion or something relevant to what you are selling, I recommend you making a completely new blog and linking the two.
3. Social Networks-In this day and age I think everyone has some type of social network log in. Whether it be Facebook, Twitter, or (if you still have one) Myspace. Try post your items for sale on your pages. You might have others that are in such of some new things.
But the main goal is to use what you have to make money. With doing this you are able to save more, buy something of leisure that you want, and have a clearer state of mind and house.
Are any of you planning on implementing this for a new source of 2010 INCOME?
DON'T FORGET TO FOLLOW ME ON TWITTER @FashionNoGuilt. And use the Buttons at the top of the post to share your favorite post with your friends.
Photo Courtesy:Uppitywoman08

Federal Reserve earned $45 billion in 2009

amybdk — Tue, 12 Jan 2010 13:48:29 -0800

Source

By Neil Irwin
Washington Post Staff Writer Tuesday, January 12, 2010

Wall Street firms aren't the only banks that had a banner year. The Federal Reserve made record profits in 2009, as its unconventional efforts to prop up the economy created a windfall for the government.

The Fed will return about $45 billion to the U.S. Treasury for 2009, according to calculations by The Washington Post based on public documents. That reflects the highest earnings in the 96-year history of the central bank. The Fed, unlike most government agencies, funds itself from its own operations and returns its profits to the Treasury.

The numbers are good news for the federal budget and a sign that the Fed has been successful, at least so far, in protecting taxpayers as it intervenes in the economy -- though there remains a risk of significant losses in the future if the Fed sells some of its investments or loses money on its stakes in bailed-out firms.

This turn of events comes as the banks that benefited from the Fed's actions are under the microscope. Starting at the end of the week, major banks are expected to announce significant earnings and employee bonuses. Anger in Washington is at such a high boil that the Obama administration will probably propose a fee on financial firms to recoup the cost of their bailout, officials confirmed Monday.

As it happens, the Fed's earnings for the year will dwarf those of the large banks, easily topping the expected profits of Bank of America, Goldman Sachs and J.P. Morgan Chase combined.

Much of the higher earnings came about because of the Fed's aggressive program of buying bonds, aiming to push interest rates down across the economy and thus stimulate growth. By the end of 2009, the Fed owned $1.8 trillion in U.S. government debt and mortgage-related securities, up from $497 billion a year earlier. The interest income on those investments was a major source of Fed profits -- though that income comes with risks, as the central bank could lose money if it later sells those securities to reduce the money supply.

The Fed also made money on its emergency loans to banks and other firms and on special programs to prop up lending, such as one that supports credit cards, auto loans, and other consumer and business lending. Those programs impose interest and fees on participants, with the aim of ensuring that the Fed does not lose money.

And while the central bank in its most recent financial report had recorded a $3.8 billion decline in the value of loans it made in bailing out the investment bank Bear Stearns and the insurer American International Group, the Fed also logged $4.7 billion in interest payments from those loans. Further losses -- or gains -- on the two bailouts are possible as time goes by. The Fed also charges fees for operating the plumbing of the financial system, such as clearing checks and electronic payments between banks.

From its revenue, the Fed deducts operating expenses, such as employee salaries, then returns to the Treasury almost all of the earnings that remain. The largest previous refund to the Treasury was $34.6 billion, in 2007.

"This shows that central banking is a great business to be in, especially in a crisis," said Vincent Reinhart, a resident scholar at the American Enterprise Institute and a former Fed official. "You buy assets that have a nice yield, and your cost of funds is very low. The difference is profit."

The Fed plans to release its estimate of 2009 earnings Tuesday. The Post's calculation is based on combining data through September from the Fed's monthly balance sheet report with more recent data from the Treasury's daily budget statement.

Fed officials do not make policy with an eye toward maximizing profits. They are charged by law with managing the nation's money supply to keep employment high and prices stable, and earnings fluctuate depending on a wide range of factors as they pursue that goal. In the crisis, the central bank's policy has been to create money and use it to buy a wide variety of assets, which in turn pay interest.

In effect, the unprecedented range of actions taken to address the crisis has made the Fed's balance sheet more like that of a private bank. A firm such as Bank of America takes money from depositors, whom it pays little or nothing in interest, and lends it out at significantly higher rates. The Fed, similarly, takes money that banks keep on deposit, at a rate of 0.25 percent, and lends it to the U.S. government by buying Treasury securities and, lately, to home buyers and other private borrowers though more exotic investments.

While that resulted in higher earnings in 2009, it exposes the Fed to more risks down the road. "They've moved up the risk-return curve, as they have more long-term assets and more things that involve credit risk," said Diane Swonk, chief economist at Mesirow Financial.

If the price of Treasury bonds or mortgage-related securities issued by Fannie Mae and Freddie Mac were to fall in the years ahead, and Fed leaders decided they need to drain money from the financial system by selling off some of their portfolio, the central bank would lose money. "If they do enough asset sales and rates go high enough, that could eat into future profits pretty substantially," said Michael Feroli, an economist at J.P. Morgan Chase.

Even as the Fed comes to resemble private banks in terms of its balance sheet and its earnings power, there remains one big difference. The CEO of the Federal Reserve, Chairman Ben S. Bernanke, received a modest cost-of-living raise for 2010, despite the record earnings: He now makes $199,700, with no bonus at all.

Generation Diva

D-Lee — Wed, 06 Jan 2010 18:20:57 -0800

How our obsession with beauty is changing our kids

There's a scene in "Toddlers & Tiaras," the TLC reality series, where 2-year-old Marleigh is perched in front of a mirror, smothering her face with blush and lipstick. She giggles as her mother attempts to hold the squealing toddler still, lathering her legs with self-tanner. "Marleigh loves to get tan," her mom says, as the girl presses her face against the mirror.
Marleigh is one of many pageant girls on the show, egged on by obsessive mothers who train their tots to strut and swagger, flip their hair and pout their lips. I watch, mesmerized by the freakishness of it all, but wonder how different Marleigh is from average girls all across America. On a recent Sunday in Brooklyn, I stumble into a spa that brands itself for the 0 to 12 set, full of tweens getting facialed and glossed, hands and feet outstretched for manis and pedis. "The girls just love it," says Daria Einhorn, the 21-year-old spa owner, who was inspired by watching her 5-year-old niece play with toy beauty kits.

Sounds extreme? Maybe. But this, my friends, is the new normal: a generation that primps and dyes and pulls and shapes, younger and with more vigor. Girls today are salon vets before they enter elementary school. Forget having mom trim your bangs, fourth graders are in the market for lush $50 haircuts; by the time they hit high school, $150 highlights are standard. Five-year-olds have spa days and pedicure parties. And instead of shaving their legs the old-fashioned way-with a 99-cent drugstore razor-teens get laser hair removal, the most common cosmetic procedure of that age group. If these trends continue, by the time your tween hits the Botox years, she'll have spent thousands on the beauty treatments once reserved for the "Beverly Hills, 90210" set, not junior highs in Madison, Wis.
Reared on reality TV and celebrity makeovers, girls as young as Marleigh are using beauty products earlier, spending more and still feeling worse about themselves. Four years ago, a survey by the NPD Group showed that, on average, women began using beauty products at 17. Today, the average is 13-and that's got to be an overstatement. According to market-research firm Experian, 43 percent of 6- to 9-year-olds are already using lipstick or lip gloss; 38 percent use hairstyling products; and 12 percent use other cosmetics. And the level of interest is making the girls of "Toddlers & Tiaras" look ordinary. "My daughter is 8, and she's like, so into this stuff it's unbelievable," says Anna Solomon, a Brooklyn social worker. "From the clothes to the hair to the nails, school is like No. 10 on the list of priorities."

Much has been made of the oversexualization of today's tweens. But what hasn't been discussed is what we might call their "diva-ization"-before they even hit the tween years. Consider this: according to a NEWSWEEK examination of the most common beauty trends, by the time your 10-year-old is 50, she'll have spent nearly $300,000 on just her hair and face. It's not that women haven't always been slaves to their appearance; as Yeats wrote, "To be born woman is to know … that we must labour to be beautiful." But today's girls are getting caught up in the beauty maintenance game at ages when they should be learning how to read-and long before their beauty needs enhancing. Twenty years ago, a second grader might have played clumsily with her mother's lipstick, but she probably didn't insist on carrying her own lip gloss to school.
New Methods, Old MessageWhy are this generation's standards different? To start, this is a group that's grown up on pop culture that screams, again and again, that everything, everything, is a candidate for upgrading. These girls are maturing in an age when older women are taking ever more extreme measures, from Botox to liposuction, to stay sexually competitive. They've watched bodies transformed on "Extreme Makeover"; faces taken apart and pieced back together on "I Want a Famous Face." They compare themselves to the overly airbrushed models in celebrity and women's magazines, and learn about makeup from the girls of "Toddlers & Tiaras," or the show's WEtv competitor, "Little Miss Perfect." And while we might make fun of the spoiled teens on MTV's "My Super Sweet 16," these shows raise the bar for what's considered over the top.
A combination of new technology and the Web, is responsible-at least in part-for this transformation in attitudes. Ads for the latest fashions, makeup tips and grooming products are circulated with a speed and fury unique to this millennium-on millions of ads, message boards and Facebook pages. Digital cameras come complete with retouching options, and anyone can learn how to use Photoshop to blend and tighten and thin. It's been estimated that girls 11 to 14 are subjected to some 500 advertisements a day-the majority of them nipped, tucked and airbrushed to perfection. And, according to a University of Minnesota study, staring at those airbrushed images from just one to three minutes can have a negative impact on girls' self-esteem. "None of this existed when I was growing up, and now it's just like, in your face," says Solomon, 30. "Kids aren't exempt just because they're young."

What that means for kids in the long term is effort and money washed down the drain each night, along with the remnants of a painted face. It's constant, and exhausting. I should know: at 27, my daily maintenance regimen takes at least an hour, and I own enough products to fill a large closet, not to mention a savings account. I have three shades of tanning lotion and $130 Crème de La Mer face cream I use so sparingly it defeats the purpose of having it, and 34-I counted this morning-varieties of lip balm, gloss and tint. I have hair wax and cream, a balm that's made of latex, surf spray for when I want that weathered look, and grooming cream to get rid of it. And I haven't even started to look at the anti-aging products yet.
This is what the 11-year-olds of the world have to look forward to-times 10. Eight- to 12-year-olds in this country already spend more than $40 million a month on beauty products, and teens spend another $100 million, according the NPD Group. This trend seems unaffected by the tanking economy: cosmetic surgery procedures dipped slightly last year, but cosmetics sales have increased between 1 and 46 percent, depending on the product, according to the Nielsen Co.
Forever Out of ReachThere's no evidence to prove that women who start primping early will primp more as they get older, but it's a safe assumption that they won't slow down. And what that means, say psychologists, is the evolution of a beauty standard that's becoming harder to achieve. New statistics from the American Society for Aesthetic Plastic Surgery show that cosmetic- surgery procedures performed on those 18 and younger have nearly doubled over the past decade. Dr. Alan Gold, the society's president, says that nearly 14 percent of Botox injections are given in the 19 to 34 age group-and while his trade group doesn't break down those ages any more specifically, he's seen a significant increase in the younger end of that group, seeking treatments as preventative. "I think what we've done is level the playing field, in that someone who may not have had great exposure to these things before-say, on a farm in Iowa-has the same options available to them," says Gold, who runs a private practice in Great Neck, N.Y. "Thomas Friedman has written how the world is flat economically. Well, it's getting flatter in terms of aging and appearance, too."
But if the world is flat, and impossible standards have become ubiquitous, can a person ever be satisfied with the way they look? In Susie Orbach's new book, "Bodies," the former therapist to Princess Diana argues that good looks and peak fitness are no longer a biological gift, but a ceaseless pursuit. And obsession at an early age, she says, fosters a belief that these are essential components of who we are-not, as she puts it, "lovely add-ons." "It primes little girls to think they should diet and dream about the cosmetic-surgery options available to them, and it makes body the primary place for self-identity."
The body, of course, cannot carry the weight of that-and these days, body dissatisfaction begins in grammar school. According to a 2004 study by the Dove Real Beauty campaign, 42 percent of first- to third-grade girls want to be thinner, while 81 percent of 10-year-olds are afraid of getting fat. "When you have tweens putting on firming cream"-as was revealed by 1 percent of girls in an NPD study-"it's clear they're looking for imaginary flaws," says Harvard psychologist Nancy Etcoff.

Which can lead to very real consequences-and a hefty debt. A lifetime of manis and pedis could cover four years at a public university; hair and face treatments would pay for a private college. "I think it's a very interesting time for girls, in that what we all grew up believing-that you have to play the hand you're dealt-is no longer true," says screenwriter Nora Ephron, who has written often on women and beauty. "In some sense, you really can go out and buy yourself a better face and a different body."
If tweens can be convinced they need to spend to perfect their already youthful skin, it's hard to imagine what they'll believe at 40. And with all the time they'll spend thinking about it, it's even harder to imagine all they're missing along the way.

newsweek.com

Where The Jobs Will Be In The Next Decade

Roarman — Mon, 04 Jan 2010 07:33:46 -0800

This month we begin a new decade with a big economic question: Where are the jobs?

The first decade of this century ended as a disaster for employment. Since the recession began two years ago, the U.S. has lost more than 7 million jobs.

Just to regain the jobs we've lost will be a huge challenge, says Harvard University labor economist Lawrence Katz. "We would need well over 300,000 [jobs] a month for four years in a row just to make up what we've lost in the last couple of years," Katz says.

He says there are very few periods in U.S. history when job growth has been that strong.

"So we're in a very deep hole," Katz says. "A normal recovery will not get us there for a very long time."

Jobs On The Horizon

Katz thinks it could take half a decade or more just to get to the employment levels we had two years ago. Still, he expects that during this new decade, the U.S. economy will eventually create 15 million new jobs, with the unemployment rate falling to around 5 percent.

The real question, he says, is what kind of jobs they'll be. "The worrisome trend is something I've called the polarization of the labor market."

Katz says the U.S. has experienced this for the past 15 years or so. It results in strong job growth for the high-paying jobs and the low-paying jobs at both ends of the labor market, but less growth in the middle to replace the well-paying manufacturing jobs the U.S. is losing.

Projections for the next decade from the Bureau of Labor Statistics suggest that elements of that basic trend will continue.

Top 10 List

Dixie Sommers, assistant commissioner for the Bureau of Labor Statistics, recites a list of the 10 occupations that the BLS expects will provide the greatest number of new jobs over the next decade. These include:

1. Registered nurses

2. Home health aids

3. Customer service representatives

4. Food preparation and serving workers

5. Personal and home care aides

6. Retail salespersons

7. Office clerks

8. Accountants

9. Nursing aides, orderlies and attendants

10. Postsecondary teachers

Six of the top seven fastest-growing occupations are low-skill, low-wage jobs.

Katz says the challenge is to move those jobs up the skills ladder. There's no reason, he says, that home health care workers couldn't be better educated to provide patients with greater value and, as a result, command higher wages to improve their own living standards.

"So [by] professionalizing those types of jobs, we could have a very optimistic vision of an economy," Katz says.

How that might square the goal of spending less on health care isn't clear.

Katz argues it wouldn't necessarily require spending more on education, but rather changing what's taught to focus more on different skills like problem solving, interpersonal relations and teamwork.

Leading Sectors

Once again this decade, the BLS is projecting that the health care sector will be a leader in producing new jobs: 4 million of them, including high-skill, high-paying jobs like doctors and nurses. The service sector, which includes health care, is expected to produce a whopping 96 percent of all new jobs, while manufacturing employment continues to shrink.

For job seekers, Sommers says nursing combines a huge number of openings with high pay - a median wage of more than $62,000 a year.

"Accountants [are] another one that's expected to grow pretty rapidly and pays around $59,000 on an annual average," Sommers says.

Less Training Required

For those who want to spend less time in school than accountants and nurses, but still make good money, Sommers suggests firefighting or becoming a sales representative for a manufacturer - especially one making technical and scientific products. Sales representatives can make about $70,000 a year, she says.

Finally, over the next decade, the best-paying, fastest-growing job that also requires little training is truck driving. According to the BLS, the folks driving the big tractor-trailer rigs earn about $37,000 a year on average.

SOURCE: http://www.npr.org/templates/story/story.php?storyId=122123729

The $175 Razor: A Sign of Economic Recovery in Retail?

PinkNC — Wed, 06 Jan 2010 06:13:35 -0800

By Sean Gregory – Wed Jan 6, 2010

The place feels like a jewelry store. Wood furnishings give the display that luxury vibe; sterling-silver pieces sit inside glass-enclosed cases. But at the Art of Shaving, a 14-year-old retail outlet that sells high-end grooming products, shoppers aren't searching for diamonds and pearls. It's the razors that rule the room.

Want to pay $3,400 for a sterling-silver razor, stand and brush? Believe it or not, there's actually a store for you. The Art of Shaving has 36 outlets around the country, and is set to expand. While sales took a predictable hit during the worst of the recession, perhaps it's a positive sign for the economy that the Art of Shaving's revenues rose 19% during the last quarter of the year.

If people will fork over insane amounts of money to properly trim their facial hair - in a New York City store, a razor with a nickel-plated brass handle costs $175 - perhaps national spending will finally loosen. "We're definitely linked to the economy," says Eric Malka, co-founder and CEO of the Art of Shaving. "As consumer confidence comes back and the stock market comes back, our consumers have been more willing to purchase our products." (See the best business deals of 2009.)

In fact, Procter & Gamble, the $79 billion consumer-goods giant, is even taking a bet on the blades. The maker of mass-market products such as Tide detergent, Crest toothpaste and Ivory soap purchased the Art of Shaving in June for an undisclosed sum. P&G's move surprised some analysts, as it represented the company's first real foray into retail, which has struggled during the downturn. "You kind of wonder what they are doing here," says Linda Bolton Weiser, equity research analyst at Caris & Co. "When companies start to veer off their main focus, it often doesn't work out."

P&G might have picked the right product to push in stores, however, since it already owns Gillette, the dominant shaving brand. The Art of Shaving gives P&G yet another outlet in which to sell the Gillette blades, and perhaps give its products a more premium cachet. "This is alternative marketing, just another way to promote the Gillette brand," says William Chappell, an analyst for SunTrust Robinson Humphrey. "P&G has already done everything you can think of with traditional marketing. This isn't a core push into retail. Now, if you tell me that they are selling Tide and Pampers as well as Gillette, that's a different story." (See the worst business deals of 2009.)

Though it may not signify a major strategic shift for P&G, the Art of Shaving is one of the more intriguing chips in company's portfolio. While neither the store nor P&G will specify how many new outlets will open over the next few years, expect a surge. "P&G acquired this business, and obviously wants to grow it," says Malka. "P&G has a mission to win with men, and the Art of Shaving is an important platform to serve men in the premium marketplace."

Malka and his wife, Myriam Zaoui, founded the company in their kitchen while Zaoui was studying to be an aromatherapist. "She blended some oils for me to put under my shaving cream so that the razor glided over the skin and didn't grab hair," Malka says. "It worked magic for my skin and was the catalyst for starting the shaving business." They sold their BMW for $12,000 - "We were broke," Malka says - and opened up a small Manhattan store in 1996. The company sells its own Art of Shaving–brand products in its stores and other high-end retailers like Bloomingdale's, Neiman Marcus, Nordstrom and Saks. (See the best pictures of 2009.)

On the surface, it seems outlandish that people would buy five ounces of shaving cream for $22. This stuff is a commodity that just sits on your bathroom shelf, right? But don't underestimate the importance of a smooth shave. "A lot of our customers suffer from shaving discomfort," says Malka. "So spending $100 on shaving products becomes very inexpensive once you realize the benefits our products have on your skin."

The Art of Shaving has corralled enough loyal customers to carve out a niche in the grooming sector. Heck, the company even sold some of those $3,400 sets this holiday season. "We're confident that the momentum we've experienced the last couple of months will continue into 2010," says Malka. "And now with our partners at P&G, we can take the business to another level." But in a still shaky economy, can the blade business avoid deep cuts along the way?

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