Another "family values" Republican shows his true colors

NEW YORK - What started last month with an anonymous woman's Craigslist dating search for men who don't "look like toads" ended Wednesday with the resignation of two-term Rep. Christopher Lee, R-N.Y., a married father who passed himself off as a divorced lobbyist when he sent her a topless muscle photo of himself.

Gawker.com broke the story about the lying lawmaker under the headline "Married GOP Congressman Sent Sexy Pictures to Craigslist Babe."

Within hours, he had quit his $174,000-a-year job and issued this statement:


"I regret the harm that my actions have caused my family, my staff and my constituents. I deeply and sincerely apologize to them all. I have made profound mistakes and I promise to work as hard as I can to seek their forgiveness. The challenges we face in Western New York and across the country are too serious for me to allow this distraction to continue, and so I am announcing that I have resigned my seat in Congress effective immediately."


Answering a Washington-area "Women for Men" ad last month, Lee described himself as 39, divorced, a lobbyist and a "fit, fun classy guy." And to prove it, he e-mailed the shirtless photo to the unnamed government worker from Maryland.

Once she figured out the man she thought might have been a JC Penney model was actually a 46-year-old congressman, she went to Gawker with copies of their bantering e-mails about bad Craigslist dates.

Lee wouldn't discuss the incident Wednesday afternoon when intercepted by Fox News enroute to his car, saying, "I have to work this out with my wife."

He resigned later in the afternoon. Gov. Andrew Cuomo is expected to set a date for a special election to fill Lee's seat. 

For a while it seemed he might try to tough it out. A Lee spokesman earlier told Gawker that Lee believed his e-mail account had been hacked around Jan. 21, although the date on the e-mails containing the topless Blackberry portrait was dated Jan. 14.

In the warp-speed world of online news, the Gawker story was added to Lee's Wikipedia profile by mid-afternoon, though it should be noted that in the case of the fit, fun philanderer, he was answering, not placing, an ad.

"In February of 2011 Representative Chris Lee was found to have been posting personal ads on Craigslist looking for women and lying about his age and marriage after e-mails and risque photos he sent to a woman were uncovered."


http://gawker.com/#!5756377/craigslist-congressman-resigns

Source: Politics Daily

Egyptian dictator Mubarak is richest man in the world?

Gamal and Hosni Mubarak (Egyptian Dictator)
Courtesy: Getty Images

President Hosni Mubarak's family fortune could be as much as $70bn (£43.5bn) according to analysis by Middle East experts, with much of his wealth in British and Swiss banks or tied up in real estate in London, New York, Los Angeles and along expensive tracts of the Red Sea coast.

After 30 years as president and many more as a senior military official, Mubarak has had access to investment deals that have generated hundreds of millions of pounds in profits. Most of those gains have been taken offshore and deposited in secret bank accounts or invested in upmarket homes and hotels.

According to a report last year in the Arabic newspaper Al Khabar, Mubarak has properties in Manhattan and exclusive Beverly Hills addresses on Rodeo Drive.

His sons, Gamal and Alaa, are also billionaires. A protest outside Gamal's ostentatious home at 28 Wilton Place in Belgravia, central London, highlighted the family's appetite for western trophy assets.

Amaney Jamal, a political science professor at Princeton University, said the estimate of $40bn-70bn was comparable with the vast wealth of leaders in other Gulf countries.

"The business ventures from his military and government service accumulated to his personal wealth," she told ABC news. "There was a lot of corruption in this regime and stifling of public resources for personal gain.

"This is the pattern of other Middle Eastern dictators so their wealth will not be taken during a transition. These leaders plan on this."

Al Khabar said it understood the Mubaraks kept much of their wealth offshore in the Swiss bank UBS and the Bank of Scotland, part of Lloyds Banking Group, although this information could be at least 10 years old.

There are only sketchy details of exactly where the Mubaraks have generated their wealth and its final destination.

Christopher Davidson, professor of Middle East politics at Durham University, said Mubarak, his wife, Suzanne, and two sons were able to accumulate wealth through a number of business partnerships with foreign investors and companies, dating back to when he was in the military and in a position to benefit from corporate corruption.

He said most Gulf states required foreigners give a local business partner a 51% stake in start-up ventures. In Egypt, the figure is commonly nearer 20%, but still gives politicians and close allies in the military a source of huge profits with no initial outlay and little risk.

"Almost every project needs a sponsor and Mubarak was well-placed to take advantage of any deals on offer," he said.

"Much of his money is in Swiss bank accounts and London property. These are the favourites of Middle Eastern leaders and there is no reason to think Mubarak is any different. Gamal's Wilton Place home is likely to be the tip of the iceberg."

Al Khabar named a series of major western companies that, partnered with the Mubarak family, generated an estimated $15m a year in profits.

Aladdin Elaasar, author of The Last Pharaoh: Mubarak and the Uncertain Future of Egypt in the Obama Age, said the Mubaraks own several residences in Egypt, some inherited from previous presidents and the monarchy, and others the president has commissioned.

Hotels and land around the Sharm el-Sheikh tourist resort are also a source of Mubarak family wealth.

Source: The Guardian

Carlos Slim unveils $8.3bn investment drive

Mexican tycoon Carlos Slim says he is to invest $8.3bn in 19 countries, mainly in Latin America.

The bulk of the money, some $3.6bn, is destined for his businesses in Mexico, including telecommunications, mining and road-building.

Drug-related violence affecting some regions of Mexico was no reason to stop investing in the country, Mr Slim said.

Last year he knocked Bill Gates off the top of Forbes magazine's billionaire's list with a fortune put at $53.5bn.

The planned $3.6bn for Mexico, a 13% rise on last year, would go to a range of sectors, with the bulk going to telecommunications, Mr Slim told a news conference in Mexico City.

"Whoever doesn't invest, be it out of fear or caution, will be left behind," he said.

Mr Slim said he believed the Mexican economy would continue to grow in 2011 and 2012.

Violence and insecurity in the country were serious problems, he said, but violence could be found everywhere.

"What can be more worrying is economic uncertainty, to see that developed countries have huge deficits, high rates of unemployment, undercapitalised financial systems, and that they are merely adopting palliative measures that don't resolve the problems."

Other key countries for investment were Brazil, Colombia, Peru, Chile and Argentina, he said.

Mr Slim, 71, the son of Lebanese immigrants, controls more than 200 companies across Latin America, ranging from telecoms, where he first made his fortune, to infrastructure, banking and retail.

In 2008, he bought stakes in the New York Times newspaper and in the struggling bank Citigroup.

Clash over U.S. spending looms with Obama speech

WASHINGTON – Democrats and Republicans are gearing up for a clash over what is likely to be a central theme of President Barack Obama's address to Congress on Tuesday: deficit reduction and spending cuts.

Obama, a Democrat, is scheduled to make his State of the Union address at 9:00 p.m. on Tuesday (0200 GMT on Wednesday), and the White House has signaled the president will focus his time primarily on the economy and U.S. fiscal woes.

Reining in U.S. spending is likely to be part of that equation, but both parties disagree on how to do that.

Republicans have called for $100 billion in cuts. Democrats are fearful that large cuts in domestic spending could stifle the still-fragile economic recovery and jeopardize hopes of reducing the 9.4 percent unemployment rate.

That debate, which has played out in recent days, continued ahead of Obama's speech. Senator Jeff Sessions, a Republican from Alabama, expressed skepticism on Monday that Obama would get serious about reducing spending.

"He's got to get on the road to fiscal sanity, and I'm not sure we're going to hear that," Sessions said in an interview with Reuters Insider.

"Business as usual cannot be continued. And I am just terribly afraid the president (hasn't) got it, that he's in denial. He's talking about investments, still, which are spending programs. And I'm really worried about that."

Obama plans to emphasize the need for U.S. global competitiveness in the speech and views investment in education and infrastructure as crucial to that effort.

White House spokesman Robert Gibbs said both political parties agreed the issue of spending cuts needed to be addressed.

"We're not going to have a debate in Washington about whether we need to make some changes and whether we need to control our spending," he told reporters.

"We're going to have, hopefully, a bipartisan discussion and work together on how we go about doing that."

Gibbs declined to comment on whether the president would outline vision for deficit reduction measures or whether he would now endorse specific proposals from the bipartisan deficit commission that made a series of controversial recommendations last year.


Source: Reuters

Stocks fall on Goldman's results

NEW YORK (Reuters) – The S & P 500 was on track to post its worst day in about two months on Wednesday as disappointing results from Goldman Sachs (GS.N) and Wells Fargo (WFC.N) deflated hopes for strong bank earnings.

The Nasdaq fell more than 1 percent, also its biggest daily percentage loss since Nov 23, as news came from Cree Inc (CREE.O), that its stock tumbled 14.1 percent to $53.87.

A semiconductor index (.SOX) also dropped 2 percent, its worst percentage decline since Aug 30.

Goldman Sachs Group Inc's stock fell 3 percent to $169.48 after the Wall Street firm posted a 53 percent drop in profit as trading revenue tumbled. Shares of Wells Fargo & Co lost 2.1 percent to $31.78 after the company posted a fourth-quarter profit that missed some analysts'estimates.

With financials, "I think expectations were for some better results after a fairly robust fourth quarter and start to 2011," said Thomas Villalta, portfolio manager for Jones Villalta Asset Management in Austin, Texas.

Villalta said he was still bullish on financials for 2011, however, noting the sector's recent gains. Financials have been among market leaders in the recent rally, with the S&P 500 up 12.7 percent since the start of the fourth quarter.

Optimism about financial sector earnings strengthened after JPMorgan Chase's (JPM.N) results on Friday beat targets.

But not all analysts have been bullish on the sector: Data from Thomson Reuters StarMine on Friday suggested most banks would miss earnings expectations.

Hurting the Dow were shares of American Express Co (AXP.N), down 2.8 percent at $45.06. The company said restructuring charges, related to closing down some locations in its global servicing network, would reduce fourth-quarter earnings.

The Dow Jones industrial average (.DJI) was down 10.14 points, or 0.09 percent, at 11,827.79. The Standard & Poor's 500 Index (.SPX) was down 10.62 points, or 0.82 percent, at 1,284.40, its biggest daily percentage loss since Nov 23. The Nasdaq Composite Index (.IXIC) was down 32.00 points, or 1.16 percent, at 2,733.84.

Shares of Cree and its rival LED lighting makers fell after it reported weaker-then-expected sales, profit and a current quarter outlook late on Tuesday.

Rubicon Technology Inc (RBCN.O) slumped 6.5 percent to $21.03 and Veeco Instruments Inc (VECO.O) tumbled 5.2 percent to $46.62. Shares of circuit maker Linear Technology Corp (LLTC.O) also dove 3.3 percent to $34.93 and semiconductor provider Marvell Technology Group (MRVL.O) fell 3.1 percent to $21.22.

Among bright spots for fourth-quarter results were earnings from Apple Inc (AAPL.O) and InternationalBusiness Machines Corp (IBM.N), both released after Tuesday's closing bell.

Apple's profit blew past Wall Street's expectations on strong sales of iPhones, iPads and Mac computers. The stock was up 0.6 percent at $342.63 as a number of brokerages, including Goldman Sachs and Bank of America Merrill, raised their price targets on the stock.

Shares of IBM, whose results also surpassed expectations, rose 3.3 percent to $155.60.

"We saw two of the big names report last night with more-than solid numbers, and that, if anything, validates the move we had in the fourth quarter," said Bennett Gaeger, managing director at Stifel Nicolaus in Baltimore.

"But in the semis, people are taking some profits off some of the better performers."

Obama's education focus faces big hurdles

WASHINGTON – Signs of trouble are arising for President BarackObama's plan to put education overhaul at the forefront of his agenda as he adjusts to the new reality of a divided government.

Giving students and teachers more flexibility is an idea with bipartisan support. Yet the debate about the overdue renewal of the nation's chief education law, known as No Child Left Behind, is complicated by political pressures from the coming 2012 presidential campaign and disputes over timing, money and scope of the update.

While education might offer the best chance for the White House to work with newly empowered Republicans, any consensus could fade in the pitiless political crosscurrents, leaving the debate for another day, perhaps even another presidency.

If so, parents, teachers and students would labor under a burdensome set of testing guidelines and other rules that many say are lowering standards.

It's that scenario that the president and his administration intend to invoke as a way to rally public support and spur lawmakers and interest groups into action against long odds.

"No one I'm talking to is defending the status quo," Education Secretary Arne Duncan said in an interview. "Everyone I talk to really shares my sense of urgency that we have to do better for our children. We're fighting for our country here."

Duncan said Obama's State of the Union address on Jan. 25 will reflect his commitment to education.

Obama has spoken about the effect on the U.S. economy and competitiveness from lagging student test scores. Lawmakers and advocates will watch to see whether he keeps the issue in the spotlight in the months ahead.

"I don't think there's any substitute but for him to be out front," said Rep. George Miller of California, the top Democrat on the House Education and Workforce Committee.

Some Republicans, wary of another giant bill like health care, would prefer a series of small measures to the broad rewrite of No Child Left Behind favored by the administration.

Democrats and many outside advocates say Congress must enact an overhaul this year, before the 2012 campaign. For some in the GOP, getting it right is more important than getting it fast, and they refuse to spend any new money to do it.

"There's room to make cuts, and I think pretty substantial cuts, that would enable us to use some of those savings on things we think work," said Rep. Duncan Hunter, a California conservative who's the new chairman of a House Education and Workforce subcommittee. "I like the piecemeal approach. ... If you do it in bite-size pieces, you can tell what needs to be tweaked as you go."

No Child Left Behind would not have passed without President George W. Bush's strong advocacy in the first year of his administration. Since then, many lawmakers have concluded that the law failed to meet its overall objectives of raising student achievement. Instead, they say, it has meant relying too much on test results and arbitrary measurements that don't help students learn.

The Obama administration produced a framework for a new law last year. It would ease many testing requirements, put a new focus on teacher performance and the lowest-performing schools, and replace proficiency requirements with loftier goals of boosting college graduation rates.

Duncan has worked with lawmakers of both parties over the past two years to lay the groundwork for a rewrite. Republican and Democratic leaders of the education committees in the House and Senate say they want to move forward. "Everyone agrees this law needs reform," said Rep. John Kline, R-Minn., chairman of the Housecommittee.

Obama focused on health care at the start of his presidency, when Democrats controlled Congress. Now Republicans control the House and are more powerful in the Senate. It's not clear that an education overhaul ranks high on their list of priorities, even if committee leaders support it.

The "Pledge to America," which the House GOP released before taking power in the November elections, never mentions education. Brendan Buck, a spokesman for House Speaker John Boehner, R-Ohio, said Boehner's focus is on "addressing the top priorities of the American people — creating jobs and cutting spending."

Administration officials will try to make the case that education is crucial for the economy and jobs — an argument Obama tried to use with health care, with limited success. "This isn't a distraction from the economy. This is important for the economy," said White House domestic policy adviser Melody Barnes.

Source: AP News

Euro slips before euro zone meeting.... stocks fall

SYDNEY - The euro eased on Monday as investors waited to see if officials will agree to beef up a euro zone safety fund, while Asian shares mostly fell, led by drop in Shanghai in the wake of China's latest attempt to contain inflation.

European Central Bank Jean-Claude Trichet gave the thumbs up for a bigger safety-net fund on Sunday, a day before a regular meeting of euro zone finance ministers, who are due to discuss an increase in the effective lending capacity of the European Financial Stability Facility (EFSF).

Some analysts played down the chances of a clear outcome this week and pointed to a February 4 European Council meeting as a more likely stage for such decisions to be made.

Still, this week's meeting could give investors a better sense of how much agreement or dissent there is among euro zone members to enlarging the facility.

Any disappointment could see the euro come under renewed pressure. For now, the euro was at $1.3330, having rallied some 4 percent last week to a one-month high around $1.3456 on Friday.

"There could be a further upside for the euro if confidence in the rescue scheme grows. But I think the euro has already risen to pretty good levels," said a trader for a Japanese trust bank in Tokyo.

Meanwhile, a breach of key support took the Shanghai Composite Index (.SSEC) down nearly 3 percent at one stage to lows not seen since early October.

The steep fall in Chinese stocks spooked other markets. Japan's Nikkei (.N225) erased most of its gains to close flat, while shares elsewhere in Asia fell 0.6 percent (.MIAPJ0000PUS).

South Korea's KOSPI (.KS11), which hit a record high early in the session, ended 0.4 percent lower, HongKong's Hang Seng index (.HSI) shed 0.3 percent and Australia's S&P/ASX 200 index (.AXJO) slid 0.8 percent.

Chinese bank shares were among the biggest losers after China on Friday raised banks' required reserves (RRR) for the fourth time in over two months.

On Monday, Chinese media said the central bank has devised calibrated reserve ratios for different banks to tighten curbs on bank lending and tame quickening inflation.

Investors also sold global miners like BHP Billiton (BHP.AX) on worries China's voracious appetite for commodities will cool. BHP fell 1.2 percent.

"With growth still strong, Beijing will likely battle inflation wholeheartedly. Get ready for more hikes in both RRR (at least another 150 bps) and interest rates (two, 25 bps) in the next six months," HSBC economists Qu Hongbin and Sun Junwei wrote in a report.

According to EPFR Global, flows into the emerging market equity funds that it tracks slowed in the week ended January 12 due to worries that high inflation rates will trigger more measures to rein in price pressures.

But underlying appetite for risk persisted, with emerging market local currency and high yield bond funds enjoying solid weeks, EPFR noted.

Asian high-yield bond issuers have wasted no time this year in taking advantage of the healthy appetite for their paper.

Last week, PRC property developer Evergrande Real Estate Group made history with a 9.25 billion yuan ($1.4 billion) synthetic renminbi bond issue, the biggest to date in the fast growing market.

Commodity prices fell, with U.S. crude oil nearing $91 a barrel, but still not far off a two-year high of around $92.58 set early this month.

Copper on the London Metal Exchange eased 0.3 percent to $9,622 a tonne, within reach of a record high of $9,754 set on January 4.

U.S. markets are shut on Monday for a public holiday, but the flow of earnings results will kick up a gear this week with Apple (APPL.O), Citi (C.N) and Goldman Sachs (GS.N) among major firms due to unveil their results.

Source: Reuters