Looking Ahead: Economic Reports for the Week of Dec. 10





ECONOMIC REPORTS Data scheduled to be released include the trade deficit for October and wholesale trade for October (Monday); import prices for November (Wednesday); weekly jobless claims, retail sales for November, the Producer Price Index for November and business inventories for October (Thursday); and the Consumer Price Index for November and industrial production for November (Friday).


CORPORATE EARNINGS Companies scheduled to report quarterly earnings include Costco Wholesale (Wednesday); and Hovnanian Enterprises and Adobe Systems (Thursday).


IN THE UNITED STATES On Monday, the governor of the Bank of England, Mervyn King, will speak at the Economic Club of New York. Also Monday, a trial will begin in Boston in a lawsuit brought by the owners of Dragon Systems, the speech-recognition company, who contend that Goldman Sachs did not warn them about risky accounting practices that led to the bankruptcy of the rival to which they sold the company for stock.


On Tuesday, the Senate Banking Committee will conduct a hearing about the Department of Housing and Urban Development’s rental housing assistance programs, and the Agriculture Department will issue its monthly crop report.


On Wednesday, the Federal Open Market Committee concludes a two-day meeting, and a House Financial Services subcommittee will conduct a hearing about the regulation of over-the-counter swaps markets under the Dodd-Frank financial overhaul law.


On Thursday, the House Financial Services Committee will conduct a hearing about the effect of the Volcker Rule on markets, businesses, investors and job creation; and a House Agriculture subcommittee will conduct a hearing about derivatives changes under the Dodd-Frank financial overhaul law.


On Friday, a lockup period will expire for 156 million shares of Facebook, and Elisse B. Walter will succeed Mary L. Schapiro as chairwoman of the Securities and Exchange Commission.


OVERSEAS On Wednesday, European Union finance ministers will hold emergency talks about establishing a euro-area banking supervisor.


On Thursday, euro-area finance ministers will meet to ratify an aid payment to Greece, and European Union leaders will begin a two-day summit meeting on the future of the bloc.


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Surgeon infected patients during heart procedure, Cedars-Sinai admits









A heart surgeon at Cedars-Sinai Medical Center unwittingly infected five patients during valve replacement surgeries earlier this year, causing four of the patients to need a second operation.


The infections occurred after tiny tears in the latex surgical gloves routinely worn by the doctor allowed bacteria from a skin inflammation on his hand to pass into the patients' hearts, according to the hospital. The patients survived the second operation and are still recovering, hospital officials said.


The outbreak led to investigations by the hospital and both the L.A. County and California departments of public health. The federal Centers for Disease Control and Prevention was also consulted.





Hospital officials called it a "very unusual occurrence" probably caused by an unfortunate confluence of events: the nature of the surgery, the microscopic rips in the gloves and the surgeon's skin condition. Valve replacement requires the surgeon to use thick sutures and tie more than 100 knots, which can cause extra stress on the gloves, they said.


Nevertheless, the hospital's goal is to have zero infections, said Harry Sax, vice chairman of the hospital's department of surgery. "Any hospital-acquired infection is unacceptable," he said.


The infections raise questions about what health conditions should prevent a surgeon from operating and how to get the best protection from surgical gloves. Surgeons with open sores or known infections aren't supposed to operate, but there is no national standard on what to do if they have skin inflammation, said Rekha Murthy, medical director of the hospital's epidemiology department. She added that there were also no national standards on types of gloves used, whether to wear double gloves or how many times surgeons should change those gloves during a procedure.


Healthcare-acquired infections are very common throughout the United States. Each year, infections cause 99,000 deaths in the country, including about 12,000 in California. Hospitals in the state are required to report certain infections to the California Department of Public Health. That reporting makes the public more aware of the quality of care provided at local hospitals and is an important tool for reducing infections, said Debby Rogers, deputy director of the department's Center for Health Care Quality.


Cedars-Sinai has low rates for hospital-acquired infections compared with the state and national average but has not performed as well on other surgical quality measures recently, according to the Leapfrog Group, an employer-backed nonprofit focused on healthcare quality. The organization gave the hospital a C rating last month on its national report card, down from an A in June, though it was not related to the infection outbreak.


"Clearly this hospital is making attempts to reduce infections, but they have more work to do," said Leah Binder, Leapfrog's chief executive.


Cedars-Sinai Medical Center conducts about 360 valve replacement surgeries each year and said infections occur in fewer than 1% of its cases — lower than the national average.


The hospital learned about the problem in June after three patients who had undergone valve replacement surgery showed signs of infection. Doctors diagnosed the patients with an infection called endocarditis. Concerned there might be a connection among the cases, epidemiologists analyzed the bacteria, staphylococcus epidermidis, and determined that it was an identical strain and therefore must have come from a single source. "It led to the question of gee, I wonder where it came from?" Murthy said.


Epidemiologists homed in on the surgeon with the skin inflammation. The bacteria matched, and then they made a surprising discovery: microscopic tears in the gloves typically worn by surgeons after performing valve replacement surgery. The surgeon, whose name was not released, was not allowed to operate again until he healed. He is still a member of the medical staff but no longer performs surgeries at the hospital.


The hospital soon found the same infection in two more patients. Officials also reached out to 67 patients who had heart valve replacements with the same surgeon but didn't find any other cases. One of the five infected patients was treated with antibiotics, and the other four had new valve replacement surgeries. Sax said the hospital apologized to the patients and has continued to monitor their health. The hospital has also covered the cost of their care, including follow-up treatment and all the related surgeries.


All surgeons doing valve replacements are now required to change gloves more frequently, officials said. Some surgeons are wearing double gloves during the operations, Sax said.


Following the outbreak, Cedars-Sinai did the proper follow-up to ensure the safety of their patients, said Dawn Terashita, a medical epidemiologist with L.A. County, who was notified in September. What occurred at Cedars-Sinai was an unintentional consequence of the surgery, she said.


"There is no way to keep a room entirely sterile and all the people in it sterile," she said. "You will always have risk of infection."


anna.gorman@latimes.com





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James Cameron Relives Voyage to Ocean’s Deepest Spot












SAN FRANCISCO — The first thing James Cameron saw 7 miles below the sea was man-made: tracks from a remotely operated vehicle.


“When I got to the bottom, I saw skid marks from the ROV,” Cameron said yesterday (Dec. 4) here at the annual meeting of the American Geophysical Union, referring to a 2009 survey by the Monterey Bay Aquarium Research Institute. Scientific results of the film director’s expedition to the Mariana Trench were presented at the meeting this week, and Cameron and the researchers described the highlights to a packed crowd.












Cameron reported a new, corrected depth for his landing — 35,803 feet (10,912 meters) — which beats by five feet (1.5 m) the record set by U.S. Navy Lt. Don Walsh and Jacques Piccard in 1960 at the same spot. However, “because the error [calculating the depth] on Don’s dive is much greater, we’re just going to have to call it a tie,” Cameron said.


Deepsea Challenger


Cameron’s Deepsea Challenger expedition made dives to the New Britain Trench and the Mariana Trench in the southwestern Pacific Ocean between Jan. 31 and April 3, with one manned dive by Cameron to the Mariana’s Challenger Deep, the deepest spot in any ocean.


Unusual, never-before-seen species were snared and brought back to the surface. A bizarre microbial mat community was discovered living on altered rocks in the Sirena Deep, another deep pool 6.77 miles (10.9 kilometers) below the surface.


Changes in temperature and salinity starting at 26,200 feet (8 km) deep hint at an unknown current coming into the Challenger Deep, said Doug Bartlett, a microbiology professor at the Scripps Institution of Oceanography at UC San Diego.


The filmmaker journeyed inside a high-tech lime-green machine — a steel sphere encased in foam — dubbed the Deepsea Challenger. The expedition traveled with two unmanned seafloor “landers” — large contraptions hoisted over the side of a ship and dropped to the seafloor. Once on the bottom, bait attached to the lander lured seafloor creatures to the craft, and a suite of instruments took samples, photographs and data. [Images: James Cameron's Historic Deep-Sea Dive]


The two contraptions working together proved to be a very good system, Cameron said. “We could rendezvous on the bottom and see the results of that bait running for six to eight hours, and that’s how Doug could find a new species of giant arthropod,” Cameron said.


Challenging journey


The March 26 dive proved to be a physical and mental challenge for Cameron. “I did yoga for six months so I could contort myself into the sphere,” he said.


As he sank through the water, Cameron said he “burned though my whole checklist,” designed to distract him during the long hours of the dive. “I still had 3,000 meters left to go with pretty much nothing left to do but sit quietly and think about the pressure building up around the hull,” he said.


The sub touched down gently, and Cameron immediately took a sample of the seafloor, as planned. This was a good contingency, because the sub’s hydraulic fluid line then burst, leaving him unable to collect more samples.


To his surprise, the sub’s voice communications worked perfectly. “We actually expected they wouldn’t, and I would have to default to texting,” he said. “Texting while driving is not a good thing, especially if you’re using two hands to operate seven joysticks and you’re 7 miles down.”


Cameron first drove the sub about 200 meters, finding the seafloor elevation stayed the same. In fact, Challenger Deep turned out to be remarkably flat, and the sub was easy to drive. “The vehicle was quite nimble, the sub’s yaw rate was very good,” he said. (Yaw describes the left-to-right rotation of a craft.)


A quick return


After about three hours, some of the submersible’s batteries had low charge readings, the steering was problematic, and it was time to return to the surface. The mission should have lasted five to six hours. “I hate this. I hated having to go back,” Cameron recalled thinking.


The trip to the top was mercifully short at 73 minutes. The submersible covered nearly 7 miles in a little over an hour — slow in a car, but like riding a missile for a human in a metal ball. Cameron said the surface trip is when he noticed the aches and pains from the cramped sub. “That’s when your butt is really sore, and when you notice how much it hurts.” [Infographic: James Cameron's Mariana Trench Dive]


The sub now sits in a barn in Santa Barbara, waiting for Cameron or another group with enough money to send it back to the deep ocean. He declined to say how much it cost to build and mount the expedition.


“I would love for the sub to dive again,” he said. “I personally feel that we just barely got started before we had to turn back and there’s just so much out there.”


“And if not, at the very least, the technical innovations can be incorporated into other vehicle platforms,” Cameron added. “As far as I’m concerned, it’s an open source situation.”


Reach Becky Oskin at [email protected]. Follow her on Twitter @beckyoskin. Follow OurAmazingPlanet on Twitter @OAPlanet. We’re also on Facebook and Google+.


Copyright 2012 OurAmazingPlanet, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Linux/Open Source News Headlines – Yahoo! News


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Mick Jagger and Keith Richards to duet on “Letterman” Top 10












LOS ANGELES (TheWrap.com) – Mick Jagger and Keith Richards are no strangers to Top 10 lists, but now they’re poised to expand their knowledge of them beyond the music charts.


Rolling Stones leaders Jagger and Richards will appear on “Late Show With David Letterman” on Tuesday to deliver the Top Ten list for the night, CBS said Friday.












Though this will mark the first time that Jagger and Richards have appeared on “Letterman,” they’ve appeared on the stage of the Ed Sullivan Theater – where “Late Show” is taped – before. The Stones made numerous appearances on “The Ed Sullivan Show,” starting with their maiden performance on October 25, 1964.


The group is currently celebrating its 50th anniversary and recently released the greatest-hits anthology “GRRR!” They be in the area to play the Barclays Center in Brooklyn on Saturday, and at Newark’s Prudential Center on Thursday.


The group will also perform at the Hurricane Sandy benefit concert 12.12.12 – The Concert for Sandy Relief, which takes place Wednesday at Madison Square Garden. Other performers at the benefit will include Paul McCartney, the Who, Bruce Springsteen & the E Street Band, Billy Joel and Eric Clapton, among others.


Letterman has been rubbing shoulders with rock royalty lately – earlier this week, he was joined on his show by the surviving members of Led Zeppelin. Last weekend, Letterman and the group received Kennedy Center Honors.


TV News Headlines – Yahoo! News


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U.S. now hindered by distance it kept on Syria conflict









WASHINGTON — With the Syrian civil war apparently near a turning point, Obama administration officials are finding their ability to influence the fast-moving events and growing violence hampered by their reluctance to become too deeply involved during the first 21 months of the conflict.


As the opposition has scored major gains against the regime of President Bashar Assad in recent days, U.S. officials have stepped up diplomatic efforts and begun weighing whether to start providing arms or other military assistance to the rebels.


But at a moment when the future of the strategically key nation may be up for grabs, Washington's power is limited by its weak ties to rebel field commanders who will have a major say in what comes next if Assad is toppled, say diplomats, opposition officials and regional experts.





"We don't have a presence on the ground and we haven't given assistance in any measure to these people," said James Jeffrey, a veteran U.S. diplomat who retired last summer after a final posting as U.S. ambassador to Iraq. "This is going to have an impact on our influence ... and it didn't have to be this way."


Though the administration has provided diplomatic pressure, humanitarian relief and nonlethal aid, it has been unwilling to supply arms or to use U.S. military force to set up a no-fly zone, as it did in the Libyan civil war last year. Officials fear that weapons would end up in the hands of extremists, and they want to limit U.S. military involvement at a time when Americans are war-weary and world powers and Arab states are divided on the conflict.


But it has become clear that, as they plan their approach to the next stage of the war, U.S. officials will have to try to overcome the unhappiness of rebel commanders who don't understand America's unwillingness to provide the military help it gave Libyan rebels last year.


The stakes are high. If the regime falls — by no means a certainty — the United States and its allies will want to move quickly to try to steer Syria toward a moderate, multiethnic government and away from a sectarian bloodbath. U.S. officials and allies are now busy formulating plans to help Syrians form a new government.


The number of extremist fighters in groups such as the Al Qaeda-linked Al Nusra Front has been rising, and if those groups take control of a new government, the geopolitical landscape of the region could change overnight in dangerous ways. Obama, who has been criticized by conservatives for failing to do more in Syria, could face accusations that his policy of limited engagement "lost" Syria.


The issue came up in the presidential campaign, with Republican challenger Mitt Romney saying he would supply arms to the Syrian opposition and Obama advocating a more cautious approach.


"We can't simply suggest that giving heavy weapons to the Syrians is a simple proposition that would lead us to be safer over the long term," the president said in the final debate of the campaign.


The rebel commanders' frustration with the United States has been apparent in recent weeks, in demonstrations that in some cases have shown up on YouTube.


One video shows a Nov. 30 demonstration in the village of Binish in which rebel fighters brandish their weapons and declare that they are fighting to create an Islamist Syria that would not be led by a Western-backed coalition of opposition groups, the newly formed National Coalition of Syrian Revolutionary and Opposition Forces.


"We will not leave the revolution to the coalition that is a game in the hand of America and serves the American project," one of the fighters says in Arabic. "Oh, Obama, listen and listen!"


Though his views may be more radical than those of most opposition fighters, there is widespread unhappiness that America has not done more.


"Syrians have been looking for U.S. leadership, but unfortunately the United States has chosen not to get involved and people here have gotten more and more upset," said Khalid Saleh, an executive board member of the Syrian National Council opposition bloc and a representative to the new coalition. He said he believes the United States could still take a lead role, but he has not seen signs that the administration wants to do so.


He noted that whereas France and Britain have recognized the new coalition as the legitimate government-in-waiting in Syria, the United States has been reluctant to do the same — a sign, in his view, that Washington still wants others to lead the way. U.S. officials are expected to formally recognize the group Wednesday at an international meeting on Syria in Marrakech, Morocco.


Dan Layman, an official with the Syrian Support Group, a Washington-based organization that sends nonlethal supplies to the opposition, said he understands the U.S. reluctance to send arms that could end up in the hands of extremists. But he said some Syrian commanders have complained that they have felt compelled to affiliate themselves with militant groups because those groups have access to weapons that are not being supplied by the West.


"We're concerned that some of these commanders may be moving to the wrong side of the street out of necessity," said Layman, whose group is licensed by the U.S. government and funded mostly by Syrian Americans.


U.S. officials have limited their ties to the rebels since the beginning of the conflict, when they urged demonstrators not to turn to arms.


Though they are in regular contact with military councils — provincial bodies that try to coordinate the patchwork of militias — relationships are not strong with individual groups, said Andrew Tabler, a leading Syria expert at the Washington Institute for Near East Policy. The United States could have built a valuable relationship, for example, with Al Farouq brigade, a nationalist but mainline group, he said.


Though the new coalition has been praised in the West for its inclusiveness and leadership, diplomats acknowledge that it's not clear whether the umbrella group would be strong enough to issue orders to the militias that could hold the most power in a post-Assad Syria.


One unsettling possibility is that Syria could be filled with militias that retain their weapons, as in postrevolutionary Libya, but without goodwill toward the United States or loyalty to a transitional government.


"You could have dozens of militias, battle-tested and brimming with weapons, that don't necessarily consider the authorities in Damascus to be sovereign," said David Schenker, a Pentagon official in the George W. Bush administration who is now with the Washington Institute for Near East Policy.


paul.richter@latimes.com





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The Era of Twitter Without Instagram Has Now Begun












We know everyone is a little bummed about all those filtered photos disappearing from your Twitter streams this weekend, but let’s not get all worked up about it: They are disappearing, and there is no scandal.


RELATED: Why You Can’t See Instagram Photos on Twitter Anymore












TechCrunch’s  Drew Olanoff got a little too excited on Friday and thought a single in-stream photo meant that Instagram was allowing its Twitter cards back on Twitter and thought the two services were planning a sudden reunion. You may have seen some, too, but a Facebook spokesperson assured users these Instagram photos on Twitter were the last holdouts in the switchover. ”What you are seeing now may be some sort of regression depending on the mobile client, but we’re checking in with the engineers,” read Facebook’s statement, via Talking Points Memo’s Carl Franzen.


RELATED: How to Get Over the Twitter-Instagram War on Photos


Which means the end of this particular social-media marriage is upon us. Despite the immediate user backlash, Instagram CEO Kevin Systrom has made it pretty clear that the photo-sharing app doesn’t plan on making nice with Twitter. In case you hadn’t accepted the reality of Silicon Valley competition the first time around, this photo-friendly weekend might be the time to check out our handy three-step guide to getting over it. 


Social Media News Headlines – Yahoo! News


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“American Idol” producer Nigel Lythgoe signs with Shine America












LOS ANGELES (TheWrap.com) – “American Idol” and “So You Think You Can Dance” executive producer Nigel Lythgoe has entered a multi-year production deal with Shine America.


Under the exclusive deal between Nigel Lythgoe Productions and Shine, Lythgoe will jointly develop and produce entertainment franchises for the global television marketplace with the Shine Group, Shine America CEO Rich Ross said Thursday.












Nigel Lythgoe Productions will continue to be based in Los Angeles. The agreement begins January 1, 2013.


“I am thrilled to be teaming up with Shine to develop new shows for a global audience,” Lythgoe said. “We live in one world and need to create content for that market. I cannot think of a more exciting company to partner with in order to face that challenge.”


“Nigel is clearly one of the world’s leading television producers, with an un-matched track record in TV programming both here in the U.S. and in the UK,” Ross added. “We are thrilled to welcome Nigel and his team to the Shine family and we look forward to developing the next wave of entertainment franchises together.”


Shine America, the U.S. arm of the Shine Group, the production company chaired by Rupert Murdoch‘s daughter Elisabeth Murdoch, produces and distributes a variety of scripted and unscripted programs. Past and current shows include “The Biggest Loser,” “The Office,” “Ugly Betty,” “Tabatha Takes Over,” and adaptations of Shine Group formats “MasterChef” and “Minute to Win It.”


TV News Headlines – Yahoo! News


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The New Old Age Blog: A Son Lost, a Mother Found

My friend Yvonne was already at the front door when I woke, so at first I didn’t realize that my mother was missing.

It was less than a week after my son Spencer died. Since that day, a constant stream of friends had been coming and going, bringing casseroles and soup, love, support and chatter. Mom hated it.

My 94-year-old mother, who has vascular dementia, has been living in my home in upstate New York for the past few years. Like many with dementia, mom is courteous but, underneath, irascible. Pride defines her, especially pride in her Phi Beta Kappa intellect. She hates to be confronted with how she has become, as she calls it, “stupid.”

The parade of strangers confused her. She had to be polite, field solicitous questions, endure mundane comments. She could not remember what was going on or why people were there. It must have been stressful and annoying.

That night, like every night since the state troopers brought the news, I woke hourly, tumbling in panic. As if it were not too late to save my son. Mom knew something was wrong, but she could not remember what. As I overslept that morning, she must have decided enough was enough. She was going home.

In a cold sky, the sun blazed over tall pines. As I opened the door, the dogs raced out to greet Yvonne and her two housecleaners. Yvonne often brags about her cleaning duo. They were her gift to me. They were going to clean my house before the funeral reception, which was scheduled for later that week. This was a very big gift because, like my mother before me, I am a very bad housekeeper.

Mom’s door was shut. I cautioned the housecleaners to avoid her room as I showed them around. Yvonne went to the kitchen to listen to the 37 unheard messages on my answering machine; the housecleaners went out to their van to get their instruments of dirt removal.

I ducked into Mom’s room to warn her about the upcoming noise. The bed was unmade; the floor was littered with crumpled tissues; the room was empty.

Normally, I would have freaked out right then. I knew Mom was not in the house, because I had just shown the whole house to the cleaners. Although Mom doesn’t wander like some dementia patients, she does on occasion run away. But I could not muster a shred of anxiety.

“Yvonne,” I called, “did you see my mother outside?”

Yvonne popped her head into the living room, eyebrows raised.“Outside? No!” She was alarmed. “Is she missing?”

“Yeah,” I said wearily, “I’ll look.” I stepped out onto the front porch, tightening the belt of my bathrobe and turning up the collar. Maybe she had walked off into the woods. The dogs danced around my legs, wanting breakfast.

I had no space left in my body to care. Either we would find her, or we would not. Either she was alive, or she was not. My child was gone. How could I care about anything ever again?

Then I saw my car was missing. My mouth fell open and my eyeballs rolled up to the right, gazing blindly at the abandoned bird’s nest on top of the porch light: What had I done with the keys?

Mom likes to run away in the car when she is angry. She used to do it a lot when my father was still alive — every time they fought. Since Mom took off in my car almost a year ago, after we had had a fight, I’d kept the keys hidden. Except for this week; this week, I had forgotten.

I was reverting to old habits. I had left the doors unlocked and the keys in the cupholder next to the driver’s seat. Exactly like Mom used to do.

“Uh-oh,” I said aloud. Mom was still capable of driving, even though she did not know where she was going. I just really, really hoped that she didn’t hurt anybody on the road. I pulled out my cellphone, about to call the police.

“Celia!” Yvonne shouted from the kitchen. She hurried up behind me, excited. “They found your mother. There are two messages on your machine.”

At that very moment, Mom was holed up at the College Diner in New Paltz, a 20-minute drive over the mountain, through the fields, left over the Wallkill River and away down Main Street.

Yvonne called the diner. They promised to keep the car keys until someone arrived. By that time, Yvonne had to go to work. She drove my friend Elizabeth to the diner, and Elizabeth drove Mom home in my car.

Half an hour later, they walked in the front door. Mom’s cheeks were rouged by the chill air and her eyes sparkled, her white hair riffing with static electricity. “Hello, hello,” she sang out. “Here we are.” She was wearing the flannel nightgown and robe I had dressed her in the night before. It was covered by her oversized purple parka, and her bare feet were shoved into sneakers.

I started laughing as soon as I saw her. I couldn’t help it. Elizabeth and Mom started laughing too. “You had a big adventure,” I said, hugging them both. “How are you?”

“I’m just marvelous,” said my mother. Mom always feels great after doing something rakish. We settled her on the sofa with her feet on the ottoman. By the time I got her blanket tucked in around her shoulders, she had fallen asleep.

Elizabeth couldn’t stop laughing as she described the scene. “Your mother was holding court in this big booth. She was sitting there in her nightgown and her parka, talking to everybody, with this plate of toast and coffee and, like, three of the staff hovering around her.”

The waitress said Mom seemed “a little disoriented” when she got there. Mom said she was meeting a friend for breakfast, but since she was wearing a nightgown and didn’t know whom she was meeting or where she lived, the staff thought there might be a problem. They convinced Mom to let them look in the glove compartment of the car, where they found my name and number.

It was then that I realized I was laughing – something I’d thought I would never be able to do again. “Elizabeth, Elizabeth, I’m laughing,” I said.

“Ha, ha, ha,” laughed Elizabeth, holding her belly.

“Ha, ha, ha,” I laughed, rolling on the floor.

And she who gave me life, who had suffered the death of my child and the extinction of her own intellect, snoozed on: oblivious, jubilant, still herself, still mine.

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U.S. spy agencies to detail cyber attacks from abroad









WASHINGTON — The U.S. intelligence community is nearing completion of its first detailed review of cyber spying against American targets from abroad, including an attempt to calculate U.S. financial losses from hacker attacks based in China, officials said.


The National Intelligence Estimate, the first involving cyber espionage, also will seek to determine how large a role the Chinese government plays in directing or coordinating digital attacks aimed at stealing U.S. intellectual property, according to officials who spoke on the condition of anonymity to discuss a classified undertaking.


The Pentagon requested the estimate more than a year ago, and it sparked a broad review of evidence and analysis from the 17 U.S. intelligence agencies. The document has been submitted to the National Intelligence Council, which coordinates such efforts, but it was unclear whether the council had reached or approved final conclusions. The study is expected to be given to policymakers early next year.





U.S. intelligence agencies monitor daily digital assaults from hackers based in China who seek to steal intellectual property from American and other Western companies, current and former intelligence officials said. Intelligence analysts disagree over the extent to which the intrusions are organized by Chinese authorities, but the CIA and National Security Agency have traced cyber attacks and thefts to Chinese military and intelligence agencies.


"We know much more about who is doing this than we did even two years ago," one official involved in the effort said. "We have traced attacks back to a desk in a [People's Liberation Army] office building."


Some analysts believe the Chinese government has a broad policy of encouraging theft of intellectual property through cyber attacks, but that it leaves the details to intelligence services, state-owned companies and freelancers. As a result, at least some of the attacks appear poorly orchestrated.


U.S. officials have raised concerns about cyber espionage with Chinese officials. Beijing has denied any involvement.


Obama administration officials have publicly warned in recent months about threats to national security from cyber attacks, but they have tiptoed around the issue of who is to blame. "It's no secret that Russia and China have advanced cyber capabilities," Defense Secretary Leon E. Panetta said in a speech on Oct. 11 in New York.


Russia engages in cyber espionage against government targets, as does China, the United States, Israel, France and other nations. But Russia does not systematically steal corporate secrets from U.S. companies to aid its own national companies, U.S. intelligence officials say.


Last week, the congressionally sponsored U.S.-China Economic and Security Review Commission alleged that China has "an elaborate strategy for obtaining America's advanced technology by subterfuge, either stealing it outright or by requiring U.S. companies to turn over technology to Chinese business partners as a condition for investment and market access in China."


Part of that strategy relies on computer attacks, the commission said.


"In 2012, Chinese state-sponsored actors continued to exploit U.S. government, military, industrial and nongovernmental computer systems," the report said. "The volume of exploitation attempts yielded enough successful breaches to make China the most threatening actor in cyberspace."


Losses from the theft of U.S. intellectual property through cyber attacks and theft are difficult to quantify but are believed to be in the billions of dollars a year.


In one recent case, Brian Milburn, who runs Solid Oak Software Inc. in Santa Barbara, sued the Chinese government and nine companies for $2.2 billion in January 2010 in federal court in Santa Ana, alleging that his Cybersitter child-monitoring software had been pirated and illegally sold to 57 million users in China. The lawsuit was settled for an undisclosed amount in April, though the Chinese government did not participate in the settlement.


As the lawsuit unfolded, Milburn was targeted for harassment by Chinese hackers thought to have been tracked by U.S. intelligence, according to his Los Angeles lawyer, Gregory Fayer. He said the hackers blocked orders on the Cybersitter website, costing Milburn tens of thousands of dollars in lost sales.


"The guys they put on us were the virtual Chinese A-Team of hackers," Milburn said in a phone interview Thursday. "They were the most patient people I've ever seen. They basically used the same techniques against me that they would use for cyber espionage."


ken.dilanian@latimes.com





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Zynga moves to enter US gambling market












NEW YORK (AP) — Online games company Zynga said it has asked Nevada gambling regulators for a decision that could pave the way for it to enter the U.S. gambling market.


This follows Zynga’s October disclosure that it has signed a deal to offer online poker and casino games, played with real money, in the U.K. It plans to launch those games in the first half of 2013.












Zynga Inc. said in an email late Wednesday that it is seeking an “application for a preliminary finding of suitability” from the Nevada Gaming Control Board. This, the company says, is part of its plan to enter regulated “real-money gaming,” that is, gambling markets.


Zynga has not said what it plans to do with a gaming license. But the company, whose games are played primarily on Facebook, has faltered in recent months and is looking for additional revenue sources beyond online games such as “FarmVille 2″ and “Words With Friends.”


The San Francisco-based company says the process with Nevada regulators should take 12 to 18 months. If Zynga passes the first regulatory hurdle, it can then apply for a gaming license in the state. That, the company said, takes two to three months.


Zynga’s stock rose 17 cents, or 7.1 percent, to close Thursday at $ 2.49. The company went public about a year ago, when its stock priced at $ 10 per share.


Gaming News Headlines – Yahoo! News


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