It's officially here: The iPad mini, the subject of endless speculation and rumors over the past year, made its debut Tuesday at the California Theater in San Jose, Calif. The iPad mini starts at $329 and hits store shelves Nov. 2. Pre-sales begin Oct. 26. It boasts a 7.9-inch display, weighs 0.68 pounds and is 7.2mm thick. The design closely resembles the iPod Touch and comes in both black and white.
Related: Get Ready for a Big Week in Tech: Apple & Facebook Earnings, Mini iPad, Windows 8 & More
As is the case with all Apple products, there is an option to pay up for more hardware. Here are the price points:
$329 for 16GB
$429 for 32GB
$529 for 64GB
In mid-November Apple will roll out the Wi-fi and 4G mini for $459 for 16GB, $559 for 32GB, and $659 for 64GB.
The iPad mini screen measures 1,024x768, the same resolution as the iPad 2. It also includes a dual-core A5 processor, a front-facing FaceTime HD camera, Apple's "Lightning" connector and a 5-megapixel back camera. A fully charged iPad mini will get 10 hours of battery life.
Apple (AAPL) stock was trading nearly two percent lower after the iPad mini presentation.
Related: Why Apple's Stock is Dropping
John Biggs, East Coast editor of TechCrunch, says the Apple event lacked the shock and awe of previous product announcements.
"Everybody was expecting an iPad mini and we got an iPad mini," he says in an interview with The Daily Ticker. "To see an iPad mini pop up is no huge surprise."
Biggs says the new mini may be pricey but it would not deter Apple devotees and tech "dorks" from adding to their Apple collections. The smaller screen will attract consumers who use tablet devices for reading -- "it's Apple's e-reader" -- Biggs says, and the new mini is not likely to cut into sales of the larger iPad versions, which still feature bigger screens and a higher resolution display.
The starting price for the iPad mini is $130 more than the Kindle Fire HD and Nexus 7 — Apple's two main competitors in the e-reader space. Most Apple insiders and analysts were expecting a lower entry point for the mini, says CNET's Brian Tong, and consumer sticker shock could drag down sales expectations. The mini's price would have been even higher if Apple made it with a retina display, he adds.
"It will sell well but won't break records," Tong says. "It will sell because it's Apple. Never underestimate the Apple consumer."
Microsoft will unveil its first tablet device, Surface, next week.
Related: Microsoft Launches Its Own Tablet--and Admits Apple Was Right
Biggs says the Surface's size and user-face are more conducive to typing, an important feature for some consumers. The tablet market may be expanding but there's still only one winner, according to Biggs — Apple. "You're getting the premium product," he says.
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US economic growth improves to 2 pct. rate in Q3
Labels: BusinessWASHINGTON (AP) -- The U.S. economy expanded at a slightly faster 2 percent annual rate from July through September, buoyed by an uptick in consumer spending and a burst of government spending.
Growth improved from the 1.3 percent rate in the April-June quarter, the Commerce Department said Friday.
The pickup in growth may help President Barack Obama's message that the economy is improving. Still, growth remains too weak to rapidly boost hiring. And the 1.74 percent rate for 2012 so far trails last year's 1.8 percent growth, a point GOP nominee Mitt Romney will emphasize.
The report is the last snapshot of economic growth before Americans choose a president in 11 days.
The economy improved because consumer spending rose 2 percent in the July-September quarter, up from 1.5 percent in the second quarter. Spending on homebuilding and renovations increased more than 14 percent. And federal government spending expanded sharply on the largest increase in defense spending in more than three years.
Growth was held back by the first drop in exports in more than three years and flat business investment in equipment and software.
The economy was also slowed by the severe drought this summer in the Midwest. That sharply cut agriculture stockpiles and reduced growth by nearly a half-point.
The government's report covers gross domestic product. GDP measures the nation's total output of goods and services — from restaurant meals and haircuts to airplanes, appliances and highways.
The first of three estimates of growth for the July-September quarter sketched a picture that's been familiar all year: The economy is growing at a tepid rate, slowed by high unemployment and corporate anxiety over an unresolved budget crisis and a slowing global economy.
While growth remains modest, the factors supporting the economy have changed. Exports and business investment drove growth for most of the recovery, but are now fading. Meanwhile, consumer spending has ticked up and housing is adding to growth after a six-year slump.
Consumer spending drives nearly 70 percent of economic activity.
Businesses have grown more cautious since spring, in part because customer demand has remained modest and exports have declined as the global economy has slowed.
Many companies worry that their overseas sales could dampen further if recession spreads throughout Europe and growth slows further in China, India and other developing countries. Businesses also fear the tax increases and government spending cuts that will kick in next year if Congress doesn't reach a budget deal.
Since the recovery from the Great Recession began in June 2009, the U.S. economy has grown at the slowest rate of any recovery in the post-World War II period. And economists think growth will remain sluggish at least through the first half of 2013. Some analysts believe the economy will start to pick up in the second half of next year.
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Disney buying Lucasfilm for $4.05 billion
Labels: BusinessLOS ANGELES (AP) — Disney is paying $4.05 billion to buy Lucasfilm Ltd., the production company behind "Star Wars," from its chairman and founder, George Lucas. It's also making a seventh movie in the "Star Wars" series called "Episode 7," set for release in 2015, with plans to follow it with Episodes 8 and 9 and then one new movie every two or three years.
The Walt Disney Co. announced the blockbuster agreement to make the purchase in cash and stock Tuesday. The deal includes Lucasfilm's prized high-tech production companies, Industrial Light & Magic and Skywalker Sound, as well as rights to the "Indiana Jones" franchise.
Disney CEO Bob Iger said in a statement that the acquisition is a great fit and will help preserve and grow the "Star Wars" franchise.
"The last 'Star Wars' movie release was 2005's 'Revenge of the Sith' — and we believe there's substantial pent-up demand," Iger said.
Kathleen Kennedy, the current co-chairman of Lucasfilm, will become the division's president and report to Walt Disney Studios Chairman Alan Horn. Lucas will be creative consultant on new "Star Wars" films.
Lucas said in a statement, "It's now time for me to pass 'Star Wars' on to a new generation of filmmakers."
The deal brings Lucasfilm under the Disney banner with other brands including Pixar, Marvel, ESPN and ABC, all companies that Disney has acquired over the years. A former weatherman who rose through the ranks of ABC, Iger has orchestrated some of the company's biggest acquisitions, including the $7.4 billion purchase of animated movie studio Pixar in 2006 and the $4.2 billion acquisition of comic book giant Marvel in 2009.
Disney shares were not trading with stock markets closed due to the impact of Superstorm Sandy in New York.
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Has Obama Been Good for Millionaires?
Labels: BusinessThe question of whether Americans are better off than they were four years ago depends, of course, on the American.
For the 12 million unemployed, the answer is most certainly no.
But for many of America's millionaires, the answer may be more affirmative.
A new study from WealthInsight, the London-based wealth-research and data firm (and yes, they are non-partisan), showed that the United States added 1.1 million millionaires between Jan. 1, 2009 and the end of 2011, the latest period measured. There were 5.1 million millionaires in America at the end of 2011, compared with around 4 million at the end of 2008.
That works out to more than 1,000 millionaires a day under the Obama administration. (They defined millionaires as people with total net worth of $1 million or more, excluding primary residence).
(Read more: Rich Will Spend More Under Romney: Poll)
"It's true that Obama has been good for millionaires, at least in absolute terms," said Andrew Amoils, analyst at WealthInsight. "He certainly hasn't been bad for millionaires."
Amoils said that quantitative easing and financial bailouts especially helped the finance sector, which accounts for the largest share of millionaires. It also helped that markets recovered in 2009.
The timeframe is worth noting. Measured against the 2007 peak, when 5.27 million Americans had a net worth of at least $1 million, the nation lost 165,360 millionaires. Their combined wealth is down six percent, to $18.8 trillion from a peak of more than $20 trillion in 2007.
We don't know how 2012 will turn out, though if stock markets continue to strengthen, the millionaire count for 2012 is likely to increase. Wealth Insight says the number of millionaires in America will grow to more than six million by 2016, and their combined fortunes will jump 25 percent over the same period.
(Read more: Millionaires Give Nine Percent of Income to Charity)
Where did all the millionaires come from between 2008 and 2011?
Mainly from retail, tech and finance -- and in both blue and red states.
Of the sectors adding the largest number of people worth $30 million or more, the retail, fashion, and luxury goods sector ranked first. That was followed by energy and utilities, then tech, telecoms and finance. Transportation and construction saw the biggest drops.
The number of people worth $30 million or more grew 26 percent in Connecticut since 2008, 20 percent in Kansas, 12 percent in Michigan, showing that the wealth creation was nationwide.
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Obama Wins 2012 Election: Why Your Taxes Are Going Up
Labels: BusinessWhen President Obama and the new Congress begin to tackle important legislation and federal policy in January, one of the key issues will be how to reform America's byzantine tax code.
Obama campaigned on a platform to raise taxes on the wealthiest Americans, declaring that millionaires and billionaires need to "pay their fair share." The president proposed the highly controversial "Buffett Rule," which would make sure those individuals earning more than $1 million a year would pay at least 30% of their income in federal taxes.
Related: Do the Rich Have a Moral Obligation to Pay Higher Taxes? Gov. Jerry Brown Says 'Yes'
The top individual tax rate is currently 35% but few U.S. households and individuals actually pay that much; various tax deductions and loopholes reduce one's tax burden.
According to the Obama campaign, the richest 400 taxpayers in 2008 (who each made more than $110 million that year) paid an average income tax rate of just 18%. In 2009 over 20,000 U.S. households with more than $1 million in income paid a federal tax rate of less than 15%.
Obama has vowed to raise the top income tax rate for individuals to 39.6% and let the Bush-era tax breaks end for the highest income earners. The majority of Americans — those who are lower to middle class — could also see a 2% tax increase if Congress allows the temporary payroll tax holiday to expire at the end of the year.
Related: Here's Why Your Taxes Are Going Up 2% Next Year: Just Explain It
Nearly half of voters support raising taxes on incomes over $250,000, according to Tuesday night's exit polls.
Len Burman, a professor of public affairs at Syracuse University and a co-founder of the bipartisan Tax Policy Center, believes higher tax rates play just a small role in resolving the nation's budget woes.
"In the long term [Obama] is going to need to raise taxes on more than just the rich," Burman says in an interview with The Daily Ticker. "The budget problem isn't going to be solved without broader-based tax increases, preferably done in the context of tax reform and also serious entitlement reform. We're not going to be able to solve this on the tax side alone."
Burman, who recently co-wrote the new book "Taxes in America: What Everyone Needs to Know," says tax rates do not need to be raised for any income group if Congress and the White House would agree on one simple change: raising the capital gains rate, i.e. the profits from the sale of an investment. Assets, such as stocks, art or real estate, that are held for at least a year are currently taxed at a special 15% rate; Obama wants to raise that to 20%.
"The problem with a low tax rate on capital gains is not that it allows Mitt Romney and Warren Buffett to pay very low taxes but that it creates this huge opportunity for tax sheltering," he notes. "There's a whole industry that's devoted to coming up with these schemes. [Raising capital gains rates] could make the tax system more progressive and allow for lower tax rates" and a reduction in the deficit Burman says.
Obama's tax proposal also targets the Alternative Minimum Tax, the Estate Tax and as well as many personal tax credits and itemized deductions. Obama would make permanent the 2007 AMT patch and index it for inflation. He would raise the estate tax to 45% from 35% on estates worth more than $3.5 million. He would lower the corporate tax rate to 28% from 35% and provide a refundable $3,000 credit per added employee for companies that expand their workforce. He would tax carried interest as ordinary income.
Related: Corporate Tax Loopholes=Corporate Socialism: Pulitzer Prize Winner David Cay Johnston
A divided Congress refused to compromise with Obama during his first term and could very well dismiss the president's tax reforms for the next four years. Republicans are loathe to raise taxes by even a penny and Obama has said he would veto any budget bills that did not include tax increases. Neither party wants to raise taxes in a weak economy. But the options available for reducing the deficit and generating new revenue are few and far between.
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Giants, Ravens feel the urgency of Sunday's showdown
Labels: SportsEAST RUTHERFORD, New Jersey (Reuters) - The New York Giants and Baltimore Ravens, both coming off one-sided losses, are looking forward to Sunday's playoff-caliber showdown with a sense of urgency running through both teams.
The Super Bowl champion Giants need to win their last two games, including a regular season finale against Philadelphia, to ensure a place in the playoffs, while the Ravens, on a three-game losing skid, can win the AFC North title with a victory.
"We have the two-game schedule and we have to win both games to get in the playoffs and everybody's aware of that," New York coach Tom Coughlin told reporters before Wednesday's practice.
The Giants (8-6) are tied for the NFC East lead with the Washington Redskins and Dallas Cowboys, but would come up on the losing end of tiebreakers with both teams.
Since Washington and Dallas meet in their final game, two wins would guarantee the Giants a wildcard berth.
The Ravens (9-5) were beaten 34-17 at home last week by Denver, but clinched a playoff berth nonetheless for a fifth successive season. Coach John Harbaugh said it is essential the team got get on track.
"We understand what's at stake," Harbaugh told reporters in a conference call to the Giants' practice facility. "The guys are excited to play. We have plenty to play for. We‘re trying to play for a division championship.
"You do want to build momentum and you want to be your best at the end of the year. You want to build toward that and peak at the right time, and that's what we're really hoping to do."
Coughlin said his team had been plagued by inconsistency and that quarterback Eli Manning was the man to lead them out of the trend after the team was shut out 34-0 last week by Atlanta.
"It's our whole football team," Coughlin said, not laying the blame on any particular phase of the game.
"Hopefully, because of the position that Eli is in, he's going to lead us out of the inconsistencies," Coughlin said about a team that scored 50 points in beating New Orleans two weeks ago before being blanked by the Falcons.
The Giants hope history can repeat itself.
Last season, the up-and-down New Yorkers put it all together at the end of the season, winning their last two games to reach the postseason and sweeping four playoff games culminating in a Super Bowl triumph over the New England Patriots.
"The reality of it is we haven't been able to play to substantiate what I would say is the personality of this team," Coughlin said about the 2012 edition of the club.
"So I'm definitely counting on the veterans to go ahead and prove this and do it with consistency. Last year we did it over a six-game run, and we're in that situation again."
Ravens running back Ray Rice said he expected a high intensity showdown game against the Giants.
"They have a lot at stake and we got a lot at stake," said Rice. "We're trying to clinch the AFC North and I think they are in a three-way tie. There's going to be a playoff atmosphere on Sunday."
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The Super Bowl champion Giants need to win their last two games, including a regular season finale against Philadelphia, to ensure a place in the playoffs, while the Ravens, on a three-game losing skid, can win the AFC North title with a victory.
"We have the two-game schedule and we have to win both games to get in the playoffs and everybody's aware of that," New York coach Tom Coughlin told reporters before Wednesday's practice.
The Giants (8-6) are tied for the NFC East lead with the Washington Redskins and Dallas Cowboys, but would come up on the losing end of tiebreakers with both teams.
Since Washington and Dallas meet in their final game, two wins would guarantee the Giants a wildcard berth.
The Ravens (9-5) were beaten 34-17 at home last week by Denver, but clinched a playoff berth nonetheless for a fifth successive season. Coach John Harbaugh said it is essential the team got get on track.
"We understand what's at stake," Harbaugh told reporters in a conference call to the Giants' practice facility. "The guys are excited to play. We have plenty to play for. We‘re trying to play for a division championship.
"You do want to build momentum and you want to be your best at the end of the year. You want to build toward that and peak at the right time, and that's what we're really hoping to do."
Coughlin said his team had been plagued by inconsistency and that quarterback Eli Manning was the man to lead them out of the trend after the team was shut out 34-0 last week by Atlanta.
"It's our whole football team," Coughlin said, not laying the blame on any particular phase of the game.
"Hopefully, because of the position that Eli is in, he's going to lead us out of the inconsistencies," Coughlin said about a team that scored 50 points in beating New Orleans two weeks ago before being blanked by the Falcons.
The Giants hope history can repeat itself.
Last season, the up-and-down New Yorkers put it all together at the end of the season, winning their last two games to reach the postseason and sweeping four playoff games culminating in a Super Bowl triumph over the New England Patriots.
"The reality of it is we haven't been able to play to substantiate what I would say is the personality of this team," Coughlin said about the 2012 edition of the club.
"So I'm definitely counting on the veterans to go ahead and prove this and do it with consistency. Last year we did it over a six-game run, and we're in that situation again."
Ravens running back Ray Rice said he expected a high intensity showdown game against the Giants.
"They have a lot at stake and we got a lot at stake," said Rice. "We're trying to clinch the AFC North and I think they are in a three-way tie. There's going to be a playoff atmosphere on Sunday."
Cruz: Meeting Pinto family was "toughest by far"
Labels: SportsEAST RUTHERFORD, N.J. (AP) — For much of his hour-long visit with the family of a 6-year-old boy killed in the Connecticut school shootings, Victor Cruz talked about football, life and young Jack, the child who idolized him.
Tears were shed. Feelings were shared. Cleats and gloves worn by Cruz to honor Jack Pinto at Sunday's game against Atlanta were given to his family.
The New York Giants wide receiver somberly recounted Wednesday his meeting with Pinto's parents and brother in Newtown, Conn.
He struggled in his retelling only when asked about the family's decision to bury the child in the receiver's No. 80 Giants jersey. The father of an infant girl, Cruz stopped for a moment, and his eyes became watery.
"You never go through some circumstances like this and circumstances where a kid faces or a family faces something of this magnitude at their school," Cruz said. "This definitely was the toughest by far."
Jack Pinto was buried on Monday and Cruz telephoned the family to ask whether he could visit them Tuesday.
The family disclosed after Friday's massacre that Cruz was Jack's favorite player. The boy was one of 20 first-graders and six adults killed in the shootings at the Sandy Hook Elementary School.
Cruz drove to Newtown with his girlfriend, Elaina Watley, and their daughter, Kennedy.
"I had no expectations. I was a little nervous," Cruz said. "I just didn't know how I was going to be received. You never know when they are going through something like that. You never know how it is going to go down."
Seeing the family outside the home along with some local children made Cruz feel better.
"They were still pretty emotional, crying and stuff like that," Cruz said. "I saw how affected they were by just my presence alone. I got out and gave them the cleats and the gloves and they appreciated it. The older brother (Ben) was still emotional, so I gave them to him."
Cruz had written "Jack Pinto, My Hero" and "R.I.P. Jack Pinto" on his cleats before the Giants' loss to the Falcons Sunday in Atlanta.
The 26-year-old player best known for his salsa dances after touchdowns, signed autographs for the children before heading inside.
"I didn't want to go in there and make a speech," Cruz said. "I just wanted to go and spend some time with them and be someone they could talk to, and be someone they can vent to, talk about how much of a fans they are of the team, or different times they watched the Super Bowl."
Cruz spent that part of the visit sitting in the chair where Jack's father, Dean, sat when he watched the Giants' Super Bowl win over the New England Patriots in February.
It was a day Jack got to see his favorite team win a championship.
"It was just an emotional time," Cruz said. "I spent a little bit of time with them. We got to smile a little bit, which was good for them. It was a time where I just wanted to be a positive voice, a positive light in the tunnel where it can really be negative, so it was a good time. They are a great family and they're really united at this time and it was good to see."
Cruz said it was strange thinking about a child being buried in his jersey. He did not know how to react. Should he thank the family?
"It leaves you kind of blank," Cruz said. "I am definitely honored by it. I am definitely humbled by it, and it's definitely an unfortunate but humbling experience for me."
The visit also gave Cruz time to reflect, especially looking at his daughter.
"Ever since it happened I've kind of been spending more time with her, just cherishing the little moments, the little time you get with her because you never know when that can be taken from you," he said.
Giants coach Tom Coughlin said he was incredibly proud of Cruz for visiting with the Pinto family.
"Hopefully some of their grief might at least temporarily be suspended in being able to embrace Victor Cruz," Coughlin said, adding what he did speaking volumes of what he has inside.
Baltimore Ravens running back Ray Rice said what Cruz did took heart.
"You've got to be able to put yourself in that family's situation to understand at least what they're going through," Rice said in a conference call with the New York media about Sunday's game against the Giants. "That's what it's about. That's something that you don't just say, 'I'm going to do it.' You do it from the heart, from within and what he did was amazing."
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Tears were shed. Feelings were shared. Cleats and gloves worn by Cruz to honor Jack Pinto at Sunday's game against Atlanta were given to his family.
The New York Giants wide receiver somberly recounted Wednesday his meeting with Pinto's parents and brother in Newtown, Conn.
He struggled in his retelling only when asked about the family's decision to bury the child in the receiver's No. 80 Giants jersey. The father of an infant girl, Cruz stopped for a moment, and his eyes became watery.
"You never go through some circumstances like this and circumstances where a kid faces or a family faces something of this magnitude at their school," Cruz said. "This definitely was the toughest by far."
Jack Pinto was buried on Monday and Cruz telephoned the family to ask whether he could visit them Tuesday.
The family disclosed after Friday's massacre that Cruz was Jack's favorite player. The boy was one of 20 first-graders and six adults killed in the shootings at the Sandy Hook Elementary School.
Cruz drove to Newtown with his girlfriend, Elaina Watley, and their daughter, Kennedy.
"I had no expectations. I was a little nervous," Cruz said. "I just didn't know how I was going to be received. You never know when they are going through something like that. You never know how it is going to go down."
Seeing the family outside the home along with some local children made Cruz feel better.
"They were still pretty emotional, crying and stuff like that," Cruz said. "I saw how affected they were by just my presence alone. I got out and gave them the cleats and the gloves and they appreciated it. The older brother (Ben) was still emotional, so I gave them to him."
Cruz had written "Jack Pinto, My Hero" and "R.I.P. Jack Pinto" on his cleats before the Giants' loss to the Falcons Sunday in Atlanta.
The 26-year-old player best known for his salsa dances after touchdowns, signed autographs for the children before heading inside.
"I didn't want to go in there and make a speech," Cruz said. "I just wanted to go and spend some time with them and be someone they could talk to, and be someone they can vent to, talk about how much of a fans they are of the team, or different times they watched the Super Bowl."
Cruz spent that part of the visit sitting in the chair where Jack's father, Dean, sat when he watched the Giants' Super Bowl win over the New England Patriots in February.
It was a day Jack got to see his favorite team win a championship.
"It was just an emotional time," Cruz said. "I spent a little bit of time with them. We got to smile a little bit, which was good for them. It was a time where I just wanted to be a positive voice, a positive light in the tunnel where it can really be negative, so it was a good time. They are a great family and they're really united at this time and it was good to see."
Cruz said it was strange thinking about a child being buried in his jersey. He did not know how to react. Should he thank the family?
"It leaves you kind of blank," Cruz said. "I am definitely honored by it. I am definitely humbled by it, and it's definitely an unfortunate but humbling experience for me."
The visit also gave Cruz time to reflect, especially looking at his daughter.
"Ever since it happened I've kind of been spending more time with her, just cherishing the little moments, the little time you get with her because you never know when that can be taken from you," he said.
Giants coach Tom Coughlin said he was incredibly proud of Cruz for visiting with the Pinto family.
"Hopefully some of their grief might at least temporarily be suspended in being able to embrace Victor Cruz," Coughlin said, adding what he did speaking volumes of what he has inside.
Baltimore Ravens running back Ray Rice said what Cruz did took heart.
"You've got to be able to put yourself in that family's situation to understand at least what they're going through," Rice said in a conference call with the New York media about Sunday's game against the Giants. "That's what it's about. That's something that you don't just say, 'I'm going to do it.' You do it from the heart, from within and what he did was amazing."
Heisman winner Manziel glad to get back in huddle
Labels: SportsJohnny Manziel is ready to get back to being Johnny Football.
After not talking to the media all season until Nov. 26, two days after the regular season finale, the Texas A&M quarterback has been from Florida to New York to Hollywood. Along the way, he won the Heisman Trophy and a host of other major awards.
Manziel is back on the College Station campus after a "Tonight Show" appearance this week, when he presented actress Megan Fox with a No. 12 Texas A&M baby jersey for her newborn son. Manziel did a Top 10 list for David Letterman last week, along with plenty of other media appearances as the Heisman winner.
"He got back in here the other day, he just said, 'Hey, coach, I'm ready to play some football.' He's through with all that," Aggies coach Kevin Sumlin said Wednesday.
"He can get back to just being with his teammates and practicing," the coach said during a conference call featuring the Cotton Bowl coaches. "Just talking with him yesterday, he looks excited to just be off the circuit, be back in the huddle calling plays."
No. 10 Texas A&M (10-2) plays 12th-ranked Oklahoma (10-2) at Cowboys Stadium on Jan. 4. While Manziel will be the eighth Heisman winner to play in the Cotton Bowl, he is the first since Texas running back Ricky Williams 14 years ago.
Oklahoma coach Bob Stoops said preparing to face Manziel presents unique challenges.
"Unique in that he's the leading rusher. It makes it really difficult. He throws the ball so well, throws it so well on the run," Stoops said. "But he's one of those guys, maybe sometimes the worst thing you can do is cover everybody because there he goes. He just has a great knack, an instinct for avoiding pressure and creating plays."
Manziel had 4,600 yards of total offense in 12 games to break the SEC record set two years earlier by Heisman winner Cam Newton, who needed 14 games to gain 4,327 yards. Manziel became the first freshman, first player in the SEC and the fifth player overall with 3,000 yards passing and 1,000 yards rushing in the same season.
Along with the Heisman Trophy, Manziel was named The Associated Press Player of the Year, the SEC's top player and the winner of the Davey O'Brien Award that goes to the nation's top quarterback.
All of this for a kid who just turned 20 years old two weeks ago.
Sumlin said he has had a conversation with his young quarterback about handling things moving forward, and the fact that he's just getting started.
"People are asking, What are you going to do now? With success, there comes other things," Sumlin said. "I think we've got a lot of the things in place here to help him, which really helped him through the process originally, and we've got a lot of things in place that are going to continue to help him handle a lot of these things. ... I think you can see he's pretty mature for a 20 year old."
Without being specific, Sumlin said the Aggies would help Manziel through that process.
"But, like I said, shoot, he's happy to be back here in the building," Sumlin said. "Sitting in meetings, watching video."
Notes: With Aggies offensive coordinator Kliff Kingsbury gone to become Texas Tech's head coach, Sumlin said running backs coach Clarence McKinney will call plays in the Cotton Bowl. ... Before becoming Houston's head coach in 2008, and going to A&M after last season, Sumlin was an Oklahoma assistant for Stoops from 2003-07. Before that he was offensive coordinator at Texas A&M for a win over Oklahoma. "I had great respect for Kevin before he was the O-coordinator there when they beat us," Stoops said. "Heck, Kevin and I used to run around South Florida together recruiting when he was at Purdue, I was at K-State. We were chasing the same kids all the time."
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After not talking to the media all season until Nov. 26, two days after the regular season finale, the Texas A&M quarterback has been from Florida to New York to Hollywood. Along the way, he won the Heisman Trophy and a host of other major awards.
Manziel is back on the College Station campus after a "Tonight Show" appearance this week, when he presented actress Megan Fox with a No. 12 Texas A&M baby jersey for her newborn son. Manziel did a Top 10 list for David Letterman last week, along with plenty of other media appearances as the Heisman winner.
"He got back in here the other day, he just said, 'Hey, coach, I'm ready to play some football.' He's through with all that," Aggies coach Kevin Sumlin said Wednesday.
"He can get back to just being with his teammates and practicing," the coach said during a conference call featuring the Cotton Bowl coaches. "Just talking with him yesterday, he looks excited to just be off the circuit, be back in the huddle calling plays."
No. 10 Texas A&M (10-2) plays 12th-ranked Oklahoma (10-2) at Cowboys Stadium on Jan. 4. While Manziel will be the eighth Heisman winner to play in the Cotton Bowl, he is the first since Texas running back Ricky Williams 14 years ago.
Oklahoma coach Bob Stoops said preparing to face Manziel presents unique challenges.
"Unique in that he's the leading rusher. It makes it really difficult. He throws the ball so well, throws it so well on the run," Stoops said. "But he's one of those guys, maybe sometimes the worst thing you can do is cover everybody because there he goes. He just has a great knack, an instinct for avoiding pressure and creating plays."
Manziel had 4,600 yards of total offense in 12 games to break the SEC record set two years earlier by Heisman winner Cam Newton, who needed 14 games to gain 4,327 yards. Manziel became the first freshman, first player in the SEC and the fifth player overall with 3,000 yards passing and 1,000 yards rushing in the same season.
Along with the Heisman Trophy, Manziel was named The Associated Press Player of the Year, the SEC's top player and the winner of the Davey O'Brien Award that goes to the nation's top quarterback.
All of this for a kid who just turned 20 years old two weeks ago.
Sumlin said he has had a conversation with his young quarterback about handling things moving forward, and the fact that he's just getting started.
"People are asking, What are you going to do now? With success, there comes other things," Sumlin said. "I think we've got a lot of the things in place here to help him, which really helped him through the process originally, and we've got a lot of things in place that are going to continue to help him handle a lot of these things. ... I think you can see he's pretty mature for a 20 year old."
Without being specific, Sumlin said the Aggies would help Manziel through that process.
"But, like I said, shoot, he's happy to be back here in the building," Sumlin said. "Sitting in meetings, watching video."
Notes: With Aggies offensive coordinator Kliff Kingsbury gone to become Texas Tech's head coach, Sumlin said running backs coach Clarence McKinney will call plays in the Cotton Bowl. ... Before becoming Houston's head coach in 2008, and going to A&M after last season, Sumlin was an Oklahoma assistant for Stoops from 2003-07. Before that he was offensive coordinator at Texas A&M for a win over Oklahoma. "I had great respect for Kevin before he was the O-coordinator there when they beat us," Stoops said. "Heck, Kevin and I used to run around South Florida together recruiting when he was at Purdue, I was at K-State. We were chasing the same kids all the time."
Andersen changes directions, heads to Wisconsin
Labels: SportsGary Andersen publicly pledged his allegiance to Utah State not long ago. Now he's on the verge of becoming Wisconsin's coach.
Wisconsin reportedly will hire Andersen to replace Bret Bielema, who left the Badgers earlier this month to take the Arkansas job.
The news about Andersen broke Tuesday night and neither Utah State nor Wisconsin had anything official to announce about Andersen on Wednesday. The delay is at least in part tied to laws in Wisconsin that require a state job to be posted for at least two weeks before it can be filled. The two-week posting was up at the end of business on Wednesday.
The school was expected to introduce Andersen at a news conference Thursday, but a snowstorm might change those plans.
The 48-year-old Andersen just completed his fourth and best season at Utah State. The 18th-ranked Aggies finished 11-2 with a bowl victory against Toledo and won the Western Athletic Conference.
It's been a remarkable rise for a program that had been near the bottom of major college football for years, and stuck in distant third in its own state behind BYU and Utah. The Aggies won nine games in the previous four seasons before Andersen took over. The last football coach to finish his tenure in Logan, Utah, with a winning record was Phil Krueger who went 21-12 from 1973-75.
Andersen drew interest from California, Colorado and Kentucky last month, but decided to pass on those opportunities and received a contract extension from Utah State.
"The interest I have received is a compliment to the quality young men in this program," Andersen said in the statement released Nov. 30. "I love Cache Valley, this university and these young men, and I am humbled and excited to continue to be the coach here. The leadership of President (Stan) Albrecht and Mr. Barnes, as well as the support from the fans and community, are big reasons why this is the right place for myself and my family at this time."
That was before Wisconsin had an opening. Bielema announced he was leaving on Dec. 4, three days after the Badgers won their third straight Big Ten title and trip to the Rose Bowl.
As late as last week, before Utah State played in the Famous Idaho Potato Bowl, Andersen was saying he was committed to the Aggies.
"I love the kids I get to coach here. ... The kids I have in the program, it just was not time. I look them in the eye and I need to be where I'm at," he told the Idaho Statesman newspaper.
When Wisconsin called, Andersen changed his mind.
It's a tough spot in which many coaches find themselves. It's imperative for recruiting purposes to show unwavering commitment to your current school. But when a coach does jump to another job, he looks like a liar.
"If you can, it's good to not say anything," former Arkansas and Mississippi coach Houston Nutt said. "It's almost now impossible because there's so much information out there."
Washington State coach Mike Leach said he felt his only obligation was to his employer and his team.
"I think you handle it honestly with the people you work for, but by the same token you don't let the media or public into your personal business," he said.
Apparently, many in Utah were caught off guard by the Andersen-to-Wisconsin news.
"I can't believe this..." Utah State receiver Alex Wheat posted on his Twitter account when word started to spread.
"I hate rumors.." tight end DJ Tialavea tweeted.
A few hours later, that changed.
"Coach A just called me. Explained the situation. No hard feelings. I have nothing but respect for the man. We must fight on. (hash)AggieNation," Wheat posted.
"Just got that phone call always have and always will love ya coach!" Tialavea tweeted.
The Wisconsin State Journal, which first reported that the Andersen would be the next Badgers' coach, reported Wednesday that Andersen spent Tuesday night calling his Utah State players.
The should buy plenty of good will for Andersen as he heads from his old job to his new one.
Read More..
Wisconsin reportedly will hire Andersen to replace Bret Bielema, who left the Badgers earlier this month to take the Arkansas job.
The news about Andersen broke Tuesday night and neither Utah State nor Wisconsin had anything official to announce about Andersen on Wednesday. The delay is at least in part tied to laws in Wisconsin that require a state job to be posted for at least two weeks before it can be filled. The two-week posting was up at the end of business on Wednesday.
The school was expected to introduce Andersen at a news conference Thursday, but a snowstorm might change those plans.
The 48-year-old Andersen just completed his fourth and best season at Utah State. The 18th-ranked Aggies finished 11-2 with a bowl victory against Toledo and won the Western Athletic Conference.
It's been a remarkable rise for a program that had been near the bottom of major college football for years, and stuck in distant third in its own state behind BYU and Utah. The Aggies won nine games in the previous four seasons before Andersen took over. The last football coach to finish his tenure in Logan, Utah, with a winning record was Phil Krueger who went 21-12 from 1973-75.
Andersen drew interest from California, Colorado and Kentucky last month, but decided to pass on those opportunities and received a contract extension from Utah State.
"The interest I have received is a compliment to the quality young men in this program," Andersen said in the statement released Nov. 30. "I love Cache Valley, this university and these young men, and I am humbled and excited to continue to be the coach here. The leadership of President (Stan) Albrecht and Mr. Barnes, as well as the support from the fans and community, are big reasons why this is the right place for myself and my family at this time."
That was before Wisconsin had an opening. Bielema announced he was leaving on Dec. 4, three days after the Badgers won their third straight Big Ten title and trip to the Rose Bowl.
As late as last week, before Utah State played in the Famous Idaho Potato Bowl, Andersen was saying he was committed to the Aggies.
"I love the kids I get to coach here. ... The kids I have in the program, it just was not time. I look them in the eye and I need to be where I'm at," he told the Idaho Statesman newspaper.
When Wisconsin called, Andersen changed his mind.
It's a tough spot in which many coaches find themselves. It's imperative for recruiting purposes to show unwavering commitment to your current school. But when a coach does jump to another job, he looks like a liar.
"If you can, it's good to not say anything," former Arkansas and Mississippi coach Houston Nutt said. "It's almost now impossible because there's so much information out there."
Washington State coach Mike Leach said he felt his only obligation was to his employer and his team.
"I think you handle it honestly with the people you work for, but by the same token you don't let the media or public into your personal business," he said.
Apparently, many in Utah were caught off guard by the Andersen-to-Wisconsin news.
"I can't believe this..." Utah State receiver Alex Wheat posted on his Twitter account when word started to spread.
"I hate rumors.." tight end DJ Tialavea tweeted.
A few hours later, that changed.
"Coach A just called me. Explained the situation. No hard feelings. I have nothing but respect for the man. We must fight on. (hash)AggieNation," Wheat posted.
"Just got that phone call always have and always will love ya coach!" Tialavea tweeted.
The Wisconsin State Journal, which first reported that the Andersen would be the next Badgers' coach, reported Wednesday that Andersen spent Tuesday night calling his Utah State players.
The should buy plenty of good will for Andersen as he heads from his old job to his new one.
Cowboys trusting Bryant to make call on finger
Labels: SportsIRVING, Texas (AP) — The Dallas Cowboys couldn't trust receiver Dez Bryant to even run the right routes less than two months ago.
Now they're letting him dictate whether he plays with a broken left index finger. They are also drawing inspiration from Bryant's insistence on waiting until after the season for a surgery serious enough for owner Jerry Jones to startle his emerging star by mistakenly saying it would involve taking bone from his hip.
"Finding a way to play shows a lot of toughness because that's not easy to do," said tight end Jason Witten, who would know because he once ran 30 yards downfield without a helmet before getting tackled and played in the opener this season with a lacerated spleen. "He earned my respect."
Bryant broke the finger on a catch against Cincinnati two weeks ago. He scored a critical touchdown in the 20-19 win after the injury and made it clear early last week that he would play against Pittsburgh.
Playing with a padded glove that exposed the tip of the broken finger, Bryant looked like a decoy in the first quarter because Tony Romo kept throwing to Miles Austin, but he still scored a touchdown for the sixth straight game — catching a ball away from his body, fingers first — and finished with four catches for 59 yards.
The Cowboys (8-6) beat the Steelers 27-24 in overtime last weekend and emerged with control of their playoff hopes. Dallas moves on with wins over New Orleans (6-8) at home on Sunday and at Washington in the finale.
"I just wanted to be out there and I felt like I needed to," Bryant said. "Miles came up to me and said, 'We're all really inspired by you playing.' I can tell from the guys that it meant a lot."
Seven weeks earlier — in that same locker room — Bryant had to acknowledge that his route-running wasn't precise enough, and that it cost Romo one of four interceptions in a 29-24 loss to the New York Giants. He also botched a punt return so badly that coach Jason Garrett took those duties away from him.
Bryant did have 110 yards receiving that day — a season high at the time — and made a spectacular catch that appeared to win the game in the final seconds. But a replay showed that his fingers came down first out of bounds, so he still had just two touchdowns through seven games.
The third-year pro was on his way to another mediocre season, and still didn't know whether Dallas County prosecutors would pursue family violence charges against him over an altercation with his mother during the summer. That incident came after his first two years were marred by lawsuits over unpaid bills for tickets and jewelry and a scene at the mall for wearing sagging pants.
Just as his career-best touchdown streak started, though, Bryant got word that a deal had been reached that could lead to dismissal of the family violence charges. He celebrated by having the same career high in receiving yardage twice — 145 against Cleveland and Washington. With eight touchdowns in six games, Bryant is now tied for the among NFL receivers with 10 scores.
"I'm proud of him," Witten said. "You talk about him dealing with all the stuff he's dealt with the three years he's been here. He's almost like a little brother. You keep offering him support and encouragement. He's a good kid. It kind of seemed like he's put it all behind him."
Jones, ever the optimist, has been guarded as Bryant kept stringing together good games. He gushed about the receiver after beating the Steelers, but scared Bryant a little by offering the possibility of a bone graft involving Bryant's hip ("You're not touching my hip," Bryant told reporters Sunday after hearing the Jones diagnosis). Turns out Jones just misunderstood the doctors. The bone will come from the hand. But Jones' point was clear: the injury is serious.
"He certainly is playing with some risks, but he was inspirational out there to everybody involved in the organization," Jones said. "He meant it because we were still playing for all the marbles, and he wanted to give everything he could."
While Dallas coach Jason Garrett said medical opinions did factor in the decision, Bryant said his reasoning was simple: The Cowboys were still in the playoff hunt. Had Dallas been eliminated, he said he might have gone ahead with surgery. There's some personal incentive, too. Two more 100-yard games would give him six for the season and probably push him past 1,300 yards. With that kind of production, he could end up leading the league in touchdowns. He might go to his first Pro Bowl.
"I know that you go by catches and yards and touchdowns, but I go by how many times he does the right thing, makes the right choice, runs the right route, the depth that he's at, the timing that he came out, his ability to read the coverage," Romo said. "You know there's a lot of stuff involved and he didn't do as well in the beginning of the year, but he's really come on as of lately."
Bryant's come so far, the Cowboys are trusting him to call the shots.
Read More..
Now they're letting him dictate whether he plays with a broken left index finger. They are also drawing inspiration from Bryant's insistence on waiting until after the season for a surgery serious enough for owner Jerry Jones to startle his emerging star by mistakenly saying it would involve taking bone from his hip.
"Finding a way to play shows a lot of toughness because that's not easy to do," said tight end Jason Witten, who would know because he once ran 30 yards downfield without a helmet before getting tackled and played in the opener this season with a lacerated spleen. "He earned my respect."
Bryant broke the finger on a catch against Cincinnati two weeks ago. He scored a critical touchdown in the 20-19 win after the injury and made it clear early last week that he would play against Pittsburgh.
Playing with a padded glove that exposed the tip of the broken finger, Bryant looked like a decoy in the first quarter because Tony Romo kept throwing to Miles Austin, but he still scored a touchdown for the sixth straight game — catching a ball away from his body, fingers first — and finished with four catches for 59 yards.
The Cowboys (8-6) beat the Steelers 27-24 in overtime last weekend and emerged with control of their playoff hopes. Dallas moves on with wins over New Orleans (6-8) at home on Sunday and at Washington in the finale.
"I just wanted to be out there and I felt like I needed to," Bryant said. "Miles came up to me and said, 'We're all really inspired by you playing.' I can tell from the guys that it meant a lot."
Seven weeks earlier — in that same locker room — Bryant had to acknowledge that his route-running wasn't precise enough, and that it cost Romo one of four interceptions in a 29-24 loss to the New York Giants. He also botched a punt return so badly that coach Jason Garrett took those duties away from him.
Bryant did have 110 yards receiving that day — a season high at the time — and made a spectacular catch that appeared to win the game in the final seconds. But a replay showed that his fingers came down first out of bounds, so he still had just two touchdowns through seven games.
The third-year pro was on his way to another mediocre season, and still didn't know whether Dallas County prosecutors would pursue family violence charges against him over an altercation with his mother during the summer. That incident came after his first two years were marred by lawsuits over unpaid bills for tickets and jewelry and a scene at the mall for wearing sagging pants.
Just as his career-best touchdown streak started, though, Bryant got word that a deal had been reached that could lead to dismissal of the family violence charges. He celebrated by having the same career high in receiving yardage twice — 145 against Cleveland and Washington. With eight touchdowns in six games, Bryant is now tied for the among NFL receivers with 10 scores.
"I'm proud of him," Witten said. "You talk about him dealing with all the stuff he's dealt with the three years he's been here. He's almost like a little brother. You keep offering him support and encouragement. He's a good kid. It kind of seemed like he's put it all behind him."
Jones, ever the optimist, has been guarded as Bryant kept stringing together good games. He gushed about the receiver after beating the Steelers, but scared Bryant a little by offering the possibility of a bone graft involving Bryant's hip ("You're not touching my hip," Bryant told reporters Sunday after hearing the Jones diagnosis). Turns out Jones just misunderstood the doctors. The bone will come from the hand. But Jones' point was clear: the injury is serious.
"He certainly is playing with some risks, but he was inspirational out there to everybody involved in the organization," Jones said. "He meant it because we were still playing for all the marbles, and he wanted to give everything he could."
While Dallas coach Jason Garrett said medical opinions did factor in the decision, Bryant said his reasoning was simple: The Cowboys were still in the playoff hunt. Had Dallas been eliminated, he said he might have gone ahead with surgery. There's some personal incentive, too. Two more 100-yard games would give him six for the season and probably push him past 1,300 yards. With that kind of production, he could end up leading the league in touchdowns. He might go to his first Pro Bowl.
"I know that you go by catches and yards and touchdowns, but I go by how many times he does the right thing, makes the right choice, runs the right route, the depth that he's at, the timing that he came out, his ability to read the coverage," Romo said. "You know there's a lot of stuff involved and he didn't do as well in the beginning of the year, but he's really come on as of lately."
Bryant's come so far, the Cowboys are trusting him to call the shots.
Has Obama Been Good for Millionaires?
Labels: BusinessThe question of whether Americans are better off than they were four years ago depends, of course, on the American.
For the 12 million unemployed, the answer is most certainly no.
But for many of America's millionaires, the answer may be more affirmative.
A new study from WealthInsight, the London-based wealth-research and data firm (and yes, they are non-partisan), showed that the United States added 1.1 million millionaires between Jan. 1, 2009 and the end of 2011, the latest period measured. There were 5.1 million millionaires in America at the end of 2011, compared with around 4 million at the end of 2008.
That works out to more than 1,000 millionaires a day under the Obama administration. (They defined millionaires as people with total net worth of $1 million or more, excluding primary residence).
(Read more: Rich Will Spend More Under Romney: Poll)
"It's true that Obama has been good for millionaires, at least in absolute terms," said Andrew Amoils, analyst at WealthInsight. "He certainly hasn't been bad for millionaires."
Amoils said that quantitative easing and financial bailouts especially helped the finance sector, which accounts for the largest share of millionaires. It also helped that markets recovered in 2009.
The timeframe is worth noting. Measured against the 2007 peak, when 5.27 million Americans had a net worth of at least $1 million, the nation lost 165,360 millionaires. Their combined wealth is down six percent, to $18.8 trillion from a peak of more than $20 trillion in 2007.
We don't know how 2012 will turn out, though if stock markets continue to strengthen, the millionaire count for 2012 is likely to increase. Wealth Insight says the number of millionaires in America will grow to more than six million by 2016, and their combined fortunes will jump 25 percent over the same period.
(Read more: Millionaires Give Nine Percent of Income to Charity)
Where did all the millionaires come from between 2008 and 2011?
Mainly from retail, tech and finance -- and in both blue and red states.
Of the sectors adding the largest number of people worth $30 million or more, the retail, fashion, and luxury goods sector ranked first. That was followed by energy and utilities, then tech, telecoms and finance. Transportation and construction saw the biggest drops.
The number of people worth $30 million or more grew 26 percent in Connecticut since 2008, 20 percent in Kansas, 12 percent in Michigan, showing that the wealth creation was nationwide.
Read More..
For the 12 million unemployed, the answer is most certainly no.
But for many of America's millionaires, the answer may be more affirmative.
A new study from WealthInsight, the London-based wealth-research and data firm (and yes, they are non-partisan), showed that the United States added 1.1 million millionaires between Jan. 1, 2009 and the end of 2011, the latest period measured. There were 5.1 million millionaires in America at the end of 2011, compared with around 4 million at the end of 2008.
That works out to more than 1,000 millionaires a day under the Obama administration. (They defined millionaires as people with total net worth of $1 million or more, excluding primary residence).
(Read more: Rich Will Spend More Under Romney: Poll)
"It's true that Obama has been good for millionaires, at least in absolute terms," said Andrew Amoils, analyst at WealthInsight. "He certainly hasn't been bad for millionaires."
Amoils said that quantitative easing and financial bailouts especially helped the finance sector, which accounts for the largest share of millionaires. It also helped that markets recovered in 2009.
The timeframe is worth noting. Measured against the 2007 peak, when 5.27 million Americans had a net worth of at least $1 million, the nation lost 165,360 millionaires. Their combined wealth is down six percent, to $18.8 trillion from a peak of more than $20 trillion in 2007.
We don't know how 2012 will turn out, though if stock markets continue to strengthen, the millionaire count for 2012 is likely to increase. Wealth Insight says the number of millionaires in America will grow to more than six million by 2016, and their combined fortunes will jump 25 percent over the same period.
(Read more: Millionaires Give Nine Percent of Income to Charity)
Where did all the millionaires come from between 2008 and 2011?
Mainly from retail, tech and finance -- and in both blue and red states.
Of the sectors adding the largest number of people worth $30 million or more, the retail, fashion, and luxury goods sector ranked first. That was followed by energy and utilities, then tech, telecoms and finance. Transportation and construction saw the biggest drops.
The number of people worth $30 million or more grew 26 percent in Connecticut since 2008, 20 percent in Kansas, 12 percent in Michigan, showing that the wealth creation was nationwide.
Obama Wins 2012 Election: Why Your Taxes Are Going Up
Labels: BusinessWhen President Obama and the new Congress begin to tackle important legislation and federal policy in January, one of the key issues will be how to reform America's byzantine tax code.
Obama campaigned on a platform to raise taxes on the wealthiest Americans, declaring that millionaires and billionaires need to "pay their fair share." The president proposed the highly controversial "Buffett Rule," which would make sure those individuals earning more than $1 million a year would pay at least 30% of their income in federal taxes.
Related: Do the Rich Have a Moral Obligation to Pay Higher Taxes? Gov. Jerry Brown Says 'Yes'
The top individual tax rate is currently 35% but few U.S. households and individuals actually pay that much; various tax deductions and loopholes reduce one's tax burden.
According to the Obama campaign, the richest 400 taxpayers in 2008 (who each made more than $110 million that year) paid an average income tax rate of just 18%. In 2009 over 20,000 U.S. households with more than $1 million in income paid a federal tax rate of less than 15%.
Obama has vowed to raise the top income tax rate for individuals to 39.6% and let the Bush-era tax breaks end for the highest income earners. The majority of Americans — those who are lower to middle class — could also see a 2% tax increase if Congress allows the temporary payroll tax holiday to expire at the end of the year.
Related: Here's Why Your Taxes Are Going Up 2% Next Year: Just Explain It
Nearly half of voters support raising taxes on incomes over $250,000, according to Tuesday night's exit polls.
Len Burman, a professor of public affairs at Syracuse University and a co-founder of the bipartisan Tax Policy Center, believes higher tax rates play just a small role in resolving the nation's budget woes.
"In the long term [Obama] is going to need to raise taxes on more than just the rich," Burman says in an interview with The Daily Ticker. "The budget problem isn't going to be solved without broader-based tax increases, preferably done in the context of tax reform and also serious entitlement reform. We're not going to be able to solve this on the tax side alone."
Burman, who recently co-wrote the new book "Taxes in America: What Everyone Needs to Know," says tax rates do not need to be raised for any income group if Congress and the White House would agree on one simple change: raising the capital gains rate, i.e. the profits from the sale of an investment. Assets, such as stocks, art or real estate, that are held for at least a year are currently taxed at a special 15% rate; Obama wants to raise that to 20%.
"The problem with a low tax rate on capital gains is not that it allows Mitt Romney and Warren Buffett to pay very low taxes but that it creates this huge opportunity for tax sheltering," he notes. "There's a whole industry that's devoted to coming up with these schemes. [Raising capital gains rates] could make the tax system more progressive and allow for lower tax rates" and a reduction in the deficit Burman says.
Obama's tax proposal also targets the Alternative Minimum Tax, the Estate Tax and as well as many personal tax credits and itemized deductions. Obama would make permanent the 2007 AMT patch and index it for inflation. He would raise the estate tax to 45% from 35% on estates worth more than $3.5 million. He would lower the corporate tax rate to 28% from 35% and provide a refundable $3,000 credit per added employee for companies that expand their workforce. He would tax carried interest as ordinary income.
Related: Corporate Tax Loopholes=Corporate Socialism: Pulitzer Prize Winner David Cay Johnston
A divided Congress refused to compromise with Obama during his first term and could very well dismiss the president's tax reforms for the next four years. Republicans are loathe to raise taxes by even a penny and Obama has said he would veto any budget bills that did not include tax increases. Neither party wants to raise taxes in a weak economy. But the options available for reducing the deficit and generating new revenue are few and far between.
Read More..
Obama campaigned on a platform to raise taxes on the wealthiest Americans, declaring that millionaires and billionaires need to "pay their fair share." The president proposed the highly controversial "Buffett Rule," which would make sure those individuals earning more than $1 million a year would pay at least 30% of their income in federal taxes.
Related: Do the Rich Have a Moral Obligation to Pay Higher Taxes? Gov. Jerry Brown Says 'Yes'
The top individual tax rate is currently 35% but few U.S. households and individuals actually pay that much; various tax deductions and loopholes reduce one's tax burden.
According to the Obama campaign, the richest 400 taxpayers in 2008 (who each made more than $110 million that year) paid an average income tax rate of just 18%. In 2009 over 20,000 U.S. households with more than $1 million in income paid a federal tax rate of less than 15%.
Obama has vowed to raise the top income tax rate for individuals to 39.6% and let the Bush-era tax breaks end for the highest income earners. The majority of Americans — those who are lower to middle class — could also see a 2% tax increase if Congress allows the temporary payroll tax holiday to expire at the end of the year.
Related: Here's Why Your Taxes Are Going Up 2% Next Year: Just Explain It
Nearly half of voters support raising taxes on incomes over $250,000, according to Tuesday night's exit polls.
Len Burman, a professor of public affairs at Syracuse University and a co-founder of the bipartisan Tax Policy Center, believes higher tax rates play just a small role in resolving the nation's budget woes.
"In the long term [Obama] is going to need to raise taxes on more than just the rich," Burman says in an interview with The Daily Ticker. "The budget problem isn't going to be solved without broader-based tax increases, preferably done in the context of tax reform and also serious entitlement reform. We're not going to be able to solve this on the tax side alone."
Burman, who recently co-wrote the new book "Taxes in America: What Everyone Needs to Know," says tax rates do not need to be raised for any income group if Congress and the White House would agree on one simple change: raising the capital gains rate, i.e. the profits from the sale of an investment. Assets, such as stocks, art or real estate, that are held for at least a year are currently taxed at a special 15% rate; Obama wants to raise that to 20%.
"The problem with a low tax rate on capital gains is not that it allows Mitt Romney and Warren Buffett to pay very low taxes but that it creates this huge opportunity for tax sheltering," he notes. "There's a whole industry that's devoted to coming up with these schemes. [Raising capital gains rates] could make the tax system more progressive and allow for lower tax rates" and a reduction in the deficit Burman says.
Obama's tax proposal also targets the Alternative Minimum Tax, the Estate Tax and as well as many personal tax credits and itemized deductions. Obama would make permanent the 2007 AMT patch and index it for inflation. He would raise the estate tax to 45% from 35% on estates worth more than $3.5 million. He would lower the corporate tax rate to 28% from 35% and provide a refundable $3,000 credit per added employee for companies that expand their workforce. He would tax carried interest as ordinary income.
Related: Corporate Tax Loopholes=Corporate Socialism: Pulitzer Prize Winner David Cay Johnston
A divided Congress refused to compromise with Obama during his first term and could very well dismiss the president's tax reforms for the next four years. Republicans are loathe to raise taxes by even a penny and Obama has said he would veto any budget bills that did not include tax increases. Neither party wants to raise taxes in a weak economy. But the options available for reducing the deficit and generating new revenue are few and far between.
Wall Street sinks after election as "fiscal cliff" eyed
Labels: BusinessNEW YORK (Reuters) - The Dow industrials lost more than 300 points in a sell-off on Wednesday that drove all major stock indexes down over 2 percent in the wake of the presidential election as investors' focus shifted to the looming "fiscal cliff" debate and Europe's economic troubles.
The Standard & Poor's 500 Index posted its biggest daily percentage drop since June, with all 10 S&P sectors solidly lower and about 80 percent of stocks on both the New York Stock Exchange and the Nasdaq ending in negative territory. Both the Dow and the S&P 500 closed at their lowest levels since early August.
Financial stocks and energy shares, two sectors that could face increased regulation after President Barack Obama's re-election, were the weakest on the day. The S&P financial index (.GSPF) lost 3.5 percent, while the S&P energy index (REU:^GSPEI) fell 3.1 percent. An S&P index of technology shares (.GSPT) slid 2.8 percent as the stock of Apple Inc (AAPL) entered bear market territory.
Obama's victory had been anticipated, though many polls indicated a close race between the president and Mitt Romney, his Republican challenger, going into election day.
The election was considered a major source of uncertainty for the market, but now the focus turns to the fiscal cliff, with investors worrying that if no deal is reached over some $600 billion in spending cuts and tax increases due to kick in early next year, it could derail the economic recovery.
The Republican Party retained control of the U.S. House of Representatives, while the Senate remained under Democratic control.
David Joy, chief market strategist at Ameriprise Financial in Boston, said this kind of divided government was disappointing "since that configuration has resulted in gridlock and there's no clear path towards unlocking that.
"It holds implications for how quickly we resolve the fiscal cliff issue, or whether it gets resolved at all," said Joy, who helps oversee $571 billion in assets.
The market's losses were broad, with pessimism exacerbated by overseas concerns after the European Commission said the region would barely grow next year, dashing hopes for improvement in the short term.
Still, some viewed the day's slide as a buying opportunity, saying it was unlikely that no deal would be reached on the fiscal cliff and arguing that Europe's troubles were already priced into markets.
"There's no question that Europe is lagging the rest of the developed and emerging world, but stocks will find a base soon, when investors start seeing through some of the smoke over the region and cliff," said Richard Weiss, who helps oversee about $120 billion in assets as a senior money manager at American Century Investments in Mountain View, California.
The Dow Jones industrial average (^DJI) slid 312.95 points, or 2.36 percent, to close at 12,932.73. The Standard & Poor's 500 Index (^GSPC) fell 33.86 points, or 2.37 percent, to 1,394.53. The Nasdaq Composite Index (^IXIC) lost 74.64 points, or 2.48 percent, to close at 2,937.29.
The S&P 500 closed below the key 1,400 level for the first time since August 30, while the Dow ended under 13,000 for the first time since August 2.
About 7.81 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, slightly below last year's daily average of 7.84 billion, though Wednesday's volume did surpass that of many recent sessions.
Contributing to the Nasdaq's decline, Apple shares fell 3.8 percent to $558, off 20.8 percent from an all-time intraday high of $705.07 set on September 21. That slump puts the stock of the world's most valuable publicly traded company in bear market territory.
Despite Wednesday's sell-off, all three major U.S. stock indexes were still up for the year. At Wednesday's close, the Dow was up 5.9 percent for 2012 so far, while the S&P 500 was up 10.9 percent and the Nasdaq was up 12.8 percent.
Wednesday's plunge was a reversal from Tuesday's rally when voting was under way. Defense and energy shares were among the market leaders that day, causing speculation that some investors were betting on a Romney win.
On Wednesday, an index of defense shares (.DFX) fell 2.9 percent, its biggest one-day drop in a year. Shares of United Technologies (UTX) dropped 2.9 percent to $77.68 while Lockheed Martin (LMT) sank 3.9 percent to $91.15.
Energy shares fell as investors bet that the industry may see increased regulation in Obama's second term, with less access to federal lands and water. Crude oil shed more than 4 percent while an index of coal companies (.DJUSCL) plunged 8.8 percent. Coal firms Peabody Energy (BTU) lost 9.6 percent to $26.24 and Arch Coal (ACI) sank 12.5 percent to $7.58.
Among financials, JPMorgan Chase & Co (JPM) fell 5.6 percent to $40.46 and Goldman Sachs (GS) dropped 6.6 percent to $117.98.
"The notion that you may have gotten a respite on the financial services side (with regulation) if Romney had been elected is obviously being unwound," said Mike Ryan, chief investment strategist at UBS Wealth Management Americas in New York.
Healthcare stocks were mixed as President Obama's re-election rules out the possibility of a wholesale repeal of his healthcare reform law, though questions remain as to what parts of the domestic policy will be implemented. The S&P health care index (REU:^GSPAI) shed 1.9 percent. In contrast, Tenet Healthcare (THC) was the S&P 500's biggest percentage gainer, up 9.6 percent at $27.34.
In 2008, stocks also rallied on election day, but then fell by the largest margin on record for a day following the vote, with each of the three major U.S. stock indexes posting losses ranging from 5 percent to 5.5 percent.
After the bell, both Qualcomm Inc (QCOM) and Whole Foods Market Inc (WFM) reported results. Qualcom's revenue beat expectations, sending shares up 8 percent to $62.75 in extended trading, while Whole Foods dropped 3.3 percent to $92.75 after the bell. In the regular session, Qualcomm slid 3.7 percent to close at $58.12, while Whole Foods dropped 2.1 percent to $95.93.
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The Standard & Poor's 500 Index posted its biggest daily percentage drop since June, with all 10 S&P sectors solidly lower and about 80 percent of stocks on both the New York Stock Exchange and the Nasdaq ending in negative territory. Both the Dow and the S&P 500 closed at their lowest levels since early August.
Financial stocks and energy shares, two sectors that could face increased regulation after President Barack Obama's re-election, were the weakest on the day. The S&P financial index (.GSPF) lost 3.5 percent, while the S&P energy index (REU:^GSPEI) fell 3.1 percent. An S&P index of technology shares (.GSPT) slid 2.8 percent as the stock of Apple Inc (AAPL) entered bear market territory.
Obama's victory had been anticipated, though many polls indicated a close race between the president and Mitt Romney, his Republican challenger, going into election day.
The election was considered a major source of uncertainty for the market, but now the focus turns to the fiscal cliff, with investors worrying that if no deal is reached over some $600 billion in spending cuts and tax increases due to kick in early next year, it could derail the economic recovery.
The Republican Party retained control of the U.S. House of Representatives, while the Senate remained under Democratic control.
David Joy, chief market strategist at Ameriprise Financial in Boston, said this kind of divided government was disappointing "since that configuration has resulted in gridlock and there's no clear path towards unlocking that.
"It holds implications for how quickly we resolve the fiscal cliff issue, or whether it gets resolved at all," said Joy, who helps oversee $571 billion in assets.
The market's losses were broad, with pessimism exacerbated by overseas concerns after the European Commission said the region would barely grow next year, dashing hopes for improvement in the short term.
Still, some viewed the day's slide as a buying opportunity, saying it was unlikely that no deal would be reached on the fiscal cliff and arguing that Europe's troubles were already priced into markets.
"There's no question that Europe is lagging the rest of the developed and emerging world, but stocks will find a base soon, when investors start seeing through some of the smoke over the region and cliff," said Richard Weiss, who helps oversee about $120 billion in assets as a senior money manager at American Century Investments in Mountain View, California.
The Dow Jones industrial average (^DJI) slid 312.95 points, or 2.36 percent, to close at 12,932.73. The Standard & Poor's 500 Index (^GSPC) fell 33.86 points, or 2.37 percent, to 1,394.53. The Nasdaq Composite Index (^IXIC) lost 74.64 points, or 2.48 percent, to close at 2,937.29.
The S&P 500 closed below the key 1,400 level for the first time since August 30, while the Dow ended under 13,000 for the first time since August 2.
About 7.81 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, slightly below last year's daily average of 7.84 billion, though Wednesday's volume did surpass that of many recent sessions.
Contributing to the Nasdaq's decline, Apple shares fell 3.8 percent to $558, off 20.8 percent from an all-time intraday high of $705.07 set on September 21. That slump puts the stock of the world's most valuable publicly traded company in bear market territory.
Despite Wednesday's sell-off, all three major U.S. stock indexes were still up for the year. At Wednesday's close, the Dow was up 5.9 percent for 2012 so far, while the S&P 500 was up 10.9 percent and the Nasdaq was up 12.8 percent.
Wednesday's plunge was a reversal from Tuesday's rally when voting was under way. Defense and energy shares were among the market leaders that day, causing speculation that some investors were betting on a Romney win.
On Wednesday, an index of defense shares (.DFX) fell 2.9 percent, its biggest one-day drop in a year. Shares of United Technologies (UTX) dropped 2.9 percent to $77.68 while Lockheed Martin (LMT) sank 3.9 percent to $91.15.
Energy shares fell as investors bet that the industry may see increased regulation in Obama's second term, with less access to federal lands and water. Crude oil shed more than 4 percent while an index of coal companies (.DJUSCL) plunged 8.8 percent. Coal firms Peabody Energy (BTU) lost 9.6 percent to $26.24 and Arch Coal (ACI) sank 12.5 percent to $7.58.
Among financials, JPMorgan Chase & Co (JPM) fell 5.6 percent to $40.46 and Goldman Sachs (GS) dropped 6.6 percent to $117.98.
"The notion that you may have gotten a respite on the financial services side (with regulation) if Romney had been elected is obviously being unwound," said Mike Ryan, chief investment strategist at UBS Wealth Management Americas in New York.
Healthcare stocks were mixed as President Obama's re-election rules out the possibility of a wholesale repeal of his healthcare reform law, though questions remain as to what parts of the domestic policy will be implemented. The S&P health care index (REU:^GSPAI) shed 1.9 percent. In contrast, Tenet Healthcare (THC) was the S&P 500's biggest percentage gainer, up 9.6 percent at $27.34.
In 2008, stocks also rallied on election day, but then fell by the largest margin on record for a day following the vote, with each of the three major U.S. stock indexes posting losses ranging from 5 percent to 5.5 percent.
After the bell, both Qualcomm Inc (QCOM) and Whole Foods Market Inc (WFM) reported results. Qualcom's revenue beat expectations, sending shares up 8 percent to $62.75 in extended trading, while Whole Foods dropped 3.3 percent to $92.75 after the bell. In the regular session, Qualcomm slid 3.7 percent to close at $58.12, while Whole Foods dropped 2.1 percent to $95.93.
Coal company announces layoffs in response to Obama win
Labels: BusinessA coal company headed by a prominent Mitt Romney donor has laid off more than 160 workers in response to President Obama's election victory.
Murray Energy said Friday that it had been "forced" to make the layoffs in response to the bleak prospects for the coal industry during Obama's second term. In a prayer circulated by the company, CEO Robert Murray said Americans had voted "in favor of redistribution, national weakness and reduced standard of living and lower and lower levels of personal freedom."
"The American people have made their choice. They have decided that America must change its course, away from the principals of our Founders," Murray said in the prayer, which was delivered in a meeting with staff members earlier this week.
"Lord, please forgive me and anyone with me in Murray Energy Corporation for the decisions that we are now forced to make to preserve the very existence of any of the enterprises that you have helped us build."
Murray cited pending regulations from the Environmental Protection Agency and the possibility of a carbon tax as factors that could lead to the "total destruction of the coal industry by as early as 2030."
In August, Murray shuttered an operation in Ohio, again blaming the Obama Administration and its alleged "war on coal."
Mitt Romney echoed this line on the campaign trail, accusing Obama of undermining the country's energy security.
Administration officials responded to these attacks by affirming that Obama supports "clean coal." They also pointed out that more coal miners were on the job in the U.S. this year than at any time since 1997, and that U.S. coal exports have risen 31%.
Domestically, however, coal production has dropped sharply, falling roughly 15% in 2011 versus years prior, according to the National Mining Association.
But the industry's woes go way beyond Obama's policies.
Utility companies are increasingly ditching coal in favor of cheaper, cleaner natural gas. In addition, the recession and improved energy efficiency have crimped demand for power.
Looking ahead, the coal industry faces a rule going into effect in 2015 that tightens the amount of mercury coal plants can emit, as well as regulations on mountain-top mining. Both will make coal production and coal-fired power plants more expensive.
The rules themselves are not Obama's doing, although he has implemented them fairly quickly. Most stem from the Clean Air Act, which was signed by Richard Nixon and strengthened during the first Bush presidency.
CNNMoney's Steve Hargreaves contributed reporting.
Read More..
Murray Energy said Friday that it had been "forced" to make the layoffs in response to the bleak prospects for the coal industry during Obama's second term. In a prayer circulated by the company, CEO Robert Murray said Americans had voted "in favor of redistribution, national weakness and reduced standard of living and lower and lower levels of personal freedom."
"The American people have made their choice. They have decided that America must change its course, away from the principals of our Founders," Murray said in the prayer, which was delivered in a meeting with staff members earlier this week.
"Lord, please forgive me and anyone with me in Murray Energy Corporation for the decisions that we are now forced to make to preserve the very existence of any of the enterprises that you have helped us build."
Murray cited pending regulations from the Environmental Protection Agency and the possibility of a carbon tax as factors that could lead to the "total destruction of the coal industry by as early as 2030."
In August, Murray shuttered an operation in Ohio, again blaming the Obama Administration and its alleged "war on coal."
Mitt Romney echoed this line on the campaign trail, accusing Obama of undermining the country's energy security.
Administration officials responded to these attacks by affirming that Obama supports "clean coal." They also pointed out that more coal miners were on the job in the U.S. this year than at any time since 1997, and that U.S. coal exports have risen 31%.
Domestically, however, coal production has dropped sharply, falling roughly 15% in 2011 versus years prior, according to the National Mining Association.
But the industry's woes go way beyond Obama's policies.
Utility companies are increasingly ditching coal in favor of cheaper, cleaner natural gas. In addition, the recession and improved energy efficiency have crimped demand for power.
Looking ahead, the coal industry faces a rule going into effect in 2015 that tightens the amount of mercury coal plants can emit, as well as regulations on mountain-top mining. Both will make coal production and coal-fired power plants more expensive.
The rules themselves are not Obama's doing, although he has implemented them fairly quickly. Most stem from the Clean Air Act, which was signed by Richard Nixon and strengthened during the first Bush presidency.
CNNMoney's Steve Hargreaves contributed reporting.
U.S. to Pass Saudi Arabia in Energy Production, IEA Says: Huge Foreign Policy, Economic Implications
Labels: BusinessA new report by the International Energy Association says the U.S. will become the world's largest oil producer by 2017, overtaking current leaders Saudi Arabia and Russia. U.S. energy policies initiated by the George W. Bush administration and implemented by President Barack Obama have moved the U.S. toward energy independence and away from Middle East energy sources. U.S. oil production has risen rapidly since 2008 and oil imports are at their lowest level in two decades.
"North America is at the forefront of a sweeping transformation in oil and gas production that will affect all regions of the world, yet the potential also exists for a similarly transformative shift in global energy efficiency," says IEA Executive Director Marian von der Hoeven in a statement.
The IEA also says the U.S. could become self-sufficient in energy by 2035 and a net exporter of natural gas by 2020. The Obama administration's push to develop and grow domestic natural gas capabilities has led to a natural gas drilling boom. Production has jumped 15% in four years but the glut in natural gas supplies have also caused the price of natural gas to plummet. According to the White House, the U.S. holds a 100-year supply of natural gas and domestic production is at an all-time high. The Daily Ticker's Aaron Task and Henry Blodget both agree that the explosion in domestic energy production could alter the geopolitical landscape and U.S. labor market.
"The foreign policy implications are maybe even bigger than the economic ones," says Task.
"For 50 years or more we have been just addicted and coupled to a region of the world where so many people hate us," Blodget adds.
Oil and petroleum imports have fallen an average of more than 1.5 million barrels per day and domestic crude oil production has increased by an average of more than 720,000 barrels per day since 2008. As domestic drilling has expanded so has the number of oil and gas production jobs. According to the Federal Reserve Bank of St. Louis, job growth in these industries has risen 25% since January 2010.
Related: The Fracking Revolution: More Jobs and Cheaper Energy Are Worth the "Manageable" Risks, Yergin Says
President Obama says natural gas production could support 600,000 jobs by the end of the decade. Most of these positions are highly desirable from a financial standpoint. Drilling and support jobs pay about $34.50 an hour, 50% more than the national average according to The New York Times.
Cheap natural gas and the administration's eagerness to expand U.S. energy production has shifted resources away from green energy technologies like solar and wind.
Related: Robert F. Kennedy Jr.: Renewable Energy Is Key to U.S. Growth
The method of extracting natural gas from shale rock formations has come under intense scrutiny. Many local cities and communities have already banned the practice. Hydraulic fracturing, more commonly referred to as hydrofracking or fracking, involves injecting large amounts of sand, water and chemicals into the ground at high pressures. Critics of fracking say this process produces millions of gallons of wastewater that contain highly corrosive salts and carcinogens. These radioactive elements could pollute water sources such as rivers and underground aquifers and pose serious dangers to the environment and individuals.
More From The Daily Ticker
U.S. Energy Policy... Brought to You by Exxon Mobil
Top 10 U.S. Cities Most at Risk for Smartphone Theft and Loss
The Middle Class Is Worse Off Than You Think: Michael Greenstone
JCPenney: With Sales Sliding, Believers Getting Harder to Find
Check Out Yahoo! Finance's Breakout
Emerging Markets Are Best Way to Play a Fiscal Cliff Resolution: Dempsey
Who's Hiring? An Inside Out View of High Unemployment
Icahn's Move Into Netflix Fuels Buyout Speculation
Read More..
"North America is at the forefront of a sweeping transformation in oil and gas production that will affect all regions of the world, yet the potential also exists for a similarly transformative shift in global energy efficiency," says IEA Executive Director Marian von der Hoeven in a statement.
The IEA also says the U.S. could become self-sufficient in energy by 2035 and a net exporter of natural gas by 2020. The Obama administration's push to develop and grow domestic natural gas capabilities has led to a natural gas drilling boom. Production has jumped 15% in four years but the glut in natural gas supplies have also caused the price of natural gas to plummet. According to the White House, the U.S. holds a 100-year supply of natural gas and domestic production is at an all-time high. The Daily Ticker's Aaron Task and Henry Blodget both agree that the explosion in domestic energy production could alter the geopolitical landscape and U.S. labor market.
"The foreign policy implications are maybe even bigger than the economic ones," says Task.
"For 50 years or more we have been just addicted and coupled to a region of the world where so many people hate us," Blodget adds.
Oil and petroleum imports have fallen an average of more than 1.5 million barrels per day and domestic crude oil production has increased by an average of more than 720,000 barrels per day since 2008. As domestic drilling has expanded so has the number of oil and gas production jobs. According to the Federal Reserve Bank of St. Louis, job growth in these industries has risen 25% since January 2010.
Related: The Fracking Revolution: More Jobs and Cheaper Energy Are Worth the "Manageable" Risks, Yergin Says
President Obama says natural gas production could support 600,000 jobs by the end of the decade. Most of these positions are highly desirable from a financial standpoint. Drilling and support jobs pay about $34.50 an hour, 50% more than the national average according to The New York Times.
Cheap natural gas and the administration's eagerness to expand U.S. energy production has shifted resources away from green energy technologies like solar and wind.
Related: Robert F. Kennedy Jr.: Renewable Energy Is Key to U.S. Growth
The method of extracting natural gas from shale rock formations has come under intense scrutiny. Many local cities and communities have already banned the practice. Hydraulic fracturing, more commonly referred to as hydrofracking or fracking, involves injecting large amounts of sand, water and chemicals into the ground at high pressures. Critics of fracking say this process produces millions of gallons of wastewater that contain highly corrosive salts and carcinogens. These radioactive elements could pollute water sources such as rivers and underground aquifers and pose serious dangers to the environment and individuals.
More From The Daily Ticker
U.S. Energy Policy... Brought to You by Exxon Mobil
Top 10 U.S. Cities Most at Risk for Smartphone Theft and Loss
The Middle Class Is Worse Off Than You Think: Michael Greenstone
JCPenney: With Sales Sliding, Believers Getting Harder to Find
Check Out Yahoo! Finance's Breakout
Emerging Markets Are Best Way to Play a Fiscal Cliff Resolution: Dempsey
Who's Hiring? An Inside Out View of High Unemployment
Icahn's Move Into Netflix Fuels Buyout Speculation
Eurozone back in recession in Q3
Labels: BusinessLONDON (AP) -- The 17-country eurozone has bowed to the inevitable and fallen back into recession for the first time in three years as a sprawling debt crisis took its toll on the region's stronger economies.
And with surveys pointing to increasingly depressed conditions across the eurozone at a time of high unemployment in many countries, there are fears that the recession will deepen, and make the debt crisis even more difficult to handle.
Official figures Thursday showed that the eurozone contracted by 0.1 percent in the July to September period from the quarter before as economies including Germany and the Netherlands suffer from falling demand.
The decline reported by Eurostat, the EU's statistics office, was in line with market expectations and follows on from the 0.2 percent fall recorded in the second quarter. As a result, the eurozone is officially in recession, commonly defined as two straight quarters of falling output.
"We can dispense with the euphemisms and equivocation, and openly proclaim that the euro area economy is indeed in technical recession," said James Ashley, senior European economist at RBC Capital Markets.
Because of the eurozone's grueling three-year debt crisis, the region has the focus of concern for the world economy. The eurozone's economy is worth around €9.5 trillion, or $12.1 trillion, which puts it on a par with the U.S. economy. The region, with its 332 million population, is the U.S.'s largest export customer, and any fall-off in demand will hit order books.
While the U.S has managed to bounce back from its own savage recession in 2008-09, albeit inconsistently, and China continues to post still-strong growth, Europe's economies have been on a downward spiral — and there is little sign of any improvement in the near-term.
The eurozone has managed to avoid returning to recession for the first time since the financial crisis following the collapse of U.S. investment bank Lehman Brothers, mainly thanks to the strength of its largest single economy, Germany.
But even that country is struggling now as confidence wanes and exports drain in light of the debt problems afflicting large chunks of the eurozone.
Germany's economy grew a muted 0.2 percent in the third quarter, down from a 0.3 percent increase in the previous quarter. Over the past year, Germany's annual growth rate has more than halved to 0.9 percent from 1.9 percent.
Perhaps the most dramatic decline among the eurozone's members was seen in the Netherlands, whose economy shrank 1.1 percent on the previous quarter.
Five eurozone countries are in recession — Greece, Spain, Italy, Portugal and Cyprus. Those five are also at the center of Europe's debt crisis and are imposing austerity measures, such as cuts to pensions and increases to taxes, in an attempt to stay afloat.
As well as hitting workers' incomes and living standards, these measures have also led to a decline in economic output and a sharp increase in unemployment.
Spain and Greece have unemployment rates of over 25 percent. Their young people are faring even worse with every other person out of work. As well as being a cost to governments who have to pay out more for benefits, it carries a huge social and human cost.
Protests across Europe on Wednesday highlighted the scale of discontent and with economic surveys pointing to the downturn getting worse, the voices of anger may well get louder still.
"The likelihood is that this anger will continue to grow unless European leaders and policymakers start to act as if they have a clue as to how to resolve the crisis starting to unravel before their eyes," said Michael Hewson, markets analyst at CMC Markets.
The wider 27-nation EU, which includes non-euro countries, avoided the same fate. It saw output rise 0.1 percent during the quarter, largely on the back of an Olympics-related boost in Britain.
The EU's output as a whole is greater than the U.S. It is also a major source of sales for the world's leading companies. Forty percent of McDonald's global revenue comes from Europe - more than it generates in the U.S. General Motors, meanwhile, sold 1.7 million vehicles in Europe last year, a fifth of its worldwide sales.
Read More..
And with surveys pointing to increasingly depressed conditions across the eurozone at a time of high unemployment in many countries, there are fears that the recession will deepen, and make the debt crisis even more difficult to handle.
Official figures Thursday showed that the eurozone contracted by 0.1 percent in the July to September period from the quarter before as economies including Germany and the Netherlands suffer from falling demand.
The decline reported by Eurostat, the EU's statistics office, was in line with market expectations and follows on from the 0.2 percent fall recorded in the second quarter. As a result, the eurozone is officially in recession, commonly defined as two straight quarters of falling output.
"We can dispense with the euphemisms and equivocation, and openly proclaim that the euro area economy is indeed in technical recession," said James Ashley, senior European economist at RBC Capital Markets.
Because of the eurozone's grueling three-year debt crisis, the region has the focus of concern for the world economy. The eurozone's economy is worth around €9.5 trillion, or $12.1 trillion, which puts it on a par with the U.S. economy. The region, with its 332 million population, is the U.S.'s largest export customer, and any fall-off in demand will hit order books.
While the U.S has managed to bounce back from its own savage recession in 2008-09, albeit inconsistently, and China continues to post still-strong growth, Europe's economies have been on a downward spiral — and there is little sign of any improvement in the near-term.
The eurozone has managed to avoid returning to recession for the first time since the financial crisis following the collapse of U.S. investment bank Lehman Brothers, mainly thanks to the strength of its largest single economy, Germany.
But even that country is struggling now as confidence wanes and exports drain in light of the debt problems afflicting large chunks of the eurozone.
Germany's economy grew a muted 0.2 percent in the third quarter, down from a 0.3 percent increase in the previous quarter. Over the past year, Germany's annual growth rate has more than halved to 0.9 percent from 1.9 percent.
Perhaps the most dramatic decline among the eurozone's members was seen in the Netherlands, whose economy shrank 1.1 percent on the previous quarter.
Five eurozone countries are in recession — Greece, Spain, Italy, Portugal and Cyprus. Those five are also at the center of Europe's debt crisis and are imposing austerity measures, such as cuts to pensions and increases to taxes, in an attempt to stay afloat.
As well as hitting workers' incomes and living standards, these measures have also led to a decline in economic output and a sharp increase in unemployment.
Spain and Greece have unemployment rates of over 25 percent. Their young people are faring even worse with every other person out of work. As well as being a cost to governments who have to pay out more for benefits, it carries a huge social and human cost.
Protests across Europe on Wednesday highlighted the scale of discontent and with economic surveys pointing to the downturn getting worse, the voices of anger may well get louder still.
"The likelihood is that this anger will continue to grow unless European leaders and policymakers start to act as if they have a clue as to how to resolve the crisis starting to unravel before their eyes," said Michael Hewson, markets analyst at CMC Markets.
The wider 27-nation EU, which includes non-euro countries, avoided the same fate. It saw output rise 0.1 percent during the quarter, largely on the back of an Olympics-related boost in Britain.
The EU's output as a whole is greater than the U.S. It is also a major source of sales for the world's leading companies. Forty percent of McDonald's global revenue comes from Europe - more than it generates in the U.S. General Motors, meanwhile, sold 1.7 million vehicles in Europe last year, a fifth of its worldwide sales.
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