Tag Archives: investment

How To End The War On The Car: Recognize It Is A Win-Win Situation

In Toronto , the new Mayor thinks roads belong to trucks and cars , and thinks bike lanes slow them down. He calls bike lanes and streetcars a “war on the car.” In fact, there is some evidence of exactly the opposite; in many cases, a person on a bike might otherwise be taking up road space in a car. In New York , the investment in bike lanes has resulted in a 13% increase in usage last year, and an 88% increase in the last three years. According to

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How To End The War On The Car: Recognize It Is A Win-Win Situation

How To End The War On The Car: Recognize It Is A Win-Win Situation

In Toronto , the new Mayor thinks roads belong to trucks and cars , and thinks bike lanes slow them down. He calls bike lanes and streetcars a “war on the car.” In fact, there is some evidence of exactly the opposite; in many cases, a person on a bike might otherwise be taking up road space in a car. In New York , the investment in bike lanes has resulted in a 13% increase in usage last year, and an 88% increase in the last three years. According to

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How To End The War On The Car: Recognize It Is A Win-Win Situation

Wall Street Quietly Creates a New Way to Profit From Homeowner Distress

Auctions allow private investors to acquire rights to collect overdue property taxes, levy escalating fees on homeowners, and foreclose on those who do not pay. Some auctions, like this one in Washington, D.C., take place in person. Others occur online, where bidders can buy property tax liens by the thousands. Credit: Emma Schwartz When Florida retiree Gladys Walker fell behind in paying taxes on her modest Pompano Beach home, she had no idea one of America’s biggest banks and a major Wall Street hedge fund engaged in frenzied bidding for the right to collect her debt—all $768.25 of it. “I just couldn’t come up with the money,” said Walker, 67, a former hotel worker who makes do on a monthly Social Security check. Barely more than a year after a taxpayer bailout of major financial institutions, Bank of America and the hedge fund, Fortress Investment Group, spotted a fresh money-making opportunity – collecting the tax debts of tens of thousands of people like Walker. The bank and hedge fund can add interest charges and fees, and they bundled the debts as securities for investors. In late May and early June, proxies for the two institutions quietly bought hundreds of millions of dollars in homeowners’ property tax debts in Florida by bidding at a series of online auctions held by county tax collectors. They didn’t use their names but donned multiple other identities, dominating the auctions and repeatedly bidding on the same parcels – in the case of Walker’s small home, more than 8,000 times. Then, in September, Bank of America’s securities division packaged $301 million worth of the tax liens it and Fortress had acquired into bonds pitched privately to major investors. The anticipated return – estimated at between 7 to 10 percent – is possible because buyers of tax debts can assess a panoply of interest charges and other fees. When the debt goes unpaid long enough, the liens buyer can seize properties through foreclosure. Because the bonds were sold privately, there’s no public record indicating who purchased them, the prices paid, or the anticipated return. Moody Investment Services spokesman Tom Lemmon said the type of offering, known as a tax lien securitization trust, is fairly uncommon. Bank of America, he added, may make additional offerings in future years. A Bank of America spokesman, while otherwise declining comment, said that the bank and Fortress had not acted together in bidding in the auctions. Bank of America spokesman William Halldin said by email: “Our bids were made independent of any other organization. Any suggestion that they weren’t independent is simply incorrect.” Fortress, which is headed by former Fannie Mae chief Daniel Mudd, had no comment. The Florida securities deal illustrates how financial institutions, including some beneficiaries of federal bailout dollars, are actively creating new ways to profit from the financial distress of homeowners. Acting as surrogate tax collectors, they can help local governments quickly and efficiently bolster their budgets by tens of millions of dollars and in some cases find new owners for dilapidated property. Miami-Dade County, for instance, took in more than $374 million in June 2009 from the sale of about 60,000 property tax liens. added by: toyotabedzrock

Wall Street Quietly Creates a New Way to Profit From Homeowner Distress

Auctions allow private investors to acquire rights to collect overdue property taxes, levy escalating fees on homeowners, and foreclose on those who do not pay. Some auctions, like this one in Washington, D.C., take place in person. Others occur online, where bidders can buy property tax liens by the thousands. Credit: Emma Schwartz When Florida retiree Gladys Walker fell behind in paying taxes on her modest Pompano Beach home, she had no idea one of America’s biggest banks and a major Wall Street hedge fund engaged in frenzied bidding for the right to collect her debt—all $768.25 of it. “I just couldn’t come up with the money,” said Walker, 67, a former hotel worker who makes do on a monthly Social Security check. Barely more than a year after a taxpayer bailout of major financial institutions, Bank of America and the hedge fund, Fortress Investment Group, spotted a fresh money-making opportunity – collecting the tax debts of tens of thousands of people like Walker. The bank and hedge fund can add interest charges and fees, and they bundled the debts as securities for investors. In late May and early June, proxies for the two institutions quietly bought hundreds of millions of dollars in homeowners’ property tax debts in Florida by bidding at a series of online auctions held by county tax collectors. They didn’t use their names but donned multiple other identities, dominating the auctions and repeatedly bidding on the same parcels – in the case of Walker’s small home, more than 8,000 times. Then, in September, Bank of America’s securities division packaged $301 million worth of the tax liens it and Fortress had acquired into bonds pitched privately to major investors. The anticipated return – estimated at between 7 to 10 percent – is possible because buyers of tax debts can assess a panoply of interest charges and other fees. When the debt goes unpaid long enough, the liens buyer can seize properties through foreclosure. Because the bonds were sold privately, there’s no public record indicating who purchased them, the prices paid, or the anticipated return. Moody Investment Services spokesman Tom Lemmon said the type of offering, known as a tax lien securitization trust, is fairly uncommon. Bank of America, he added, may make additional offerings in future years. A Bank of America spokesman, while otherwise declining comment, said that the bank and Fortress had not acted together in bidding in the auctions. Bank of America spokesman William Halldin said by email: “Our bids were made independent of any other organization. Any suggestion that they weren’t independent is simply incorrect.” Fortress, which is headed by former Fannie Mae chief Daniel Mudd, had no comment. The Florida securities deal illustrates how financial institutions, including some beneficiaries of federal bailout dollars, are actively creating new ways to profit from the financial distress of homeowners. Acting as surrogate tax collectors, they can help local governments quickly and efficiently bolster their budgets by tens of millions of dollars and in some cases find new owners for dilapidated property. Miami-Dade County, for instance, took in more than $374 million in June 2009 from the sale of about 60,000 property tax liens. added by: toyotabedzrock

Gates Foundation invests in Monsanto/ Both will profit at expense of small-scale African farmers

Farmers and civil society organizations around the world are outraged by the recent discovery of further connections between the Bill and Melinda Gates Foundation and agribusiness titan Monsanto. Last week, a financial website published the Gates Foundation’s investment portfolio, including 500,000 shares of Monsanto stock with an estimated worth of $23.1 million purchased in the second quarter of 2010 (see the filing with the Securities and Exchange Commission). This marks a substantial increase from its previous holdings, valued at just over $360,000 (see the Foundation’s 2008 990 Form). “The Foundation’s direct investment in Monsanto is problematic on two primary levels,” said Dr. Phil Bereano, University of Washington Professor Emeritus and recognized expert on genetic engineering. “First, Monsanto has a history of blatant disregard for the interests and well-being of small farmers around the world, as well as an appalling environmental track record. The strong connections to Monsanto cast serious doubt on the Foundation’s heavy funding of agricultural development in Africa and purported goal of alleviating poverty and hunger among small-scale farmers. Second, this investment represents an enormous conflict of interests.” Monsanto has already negatively impacted agriculture in African countries. For example, in South Africa in 2009, Monsanto’s genetically modified maize failed to produce kernels and hundreds of farmers were devastated. According to Mariam Mayet, environmental attorney and director of the Africa Centre for Biosafety in Johannesburg, some farmers suffered up to an 80% crop failure. While Monsanto compensated the large-scale farmers to whom it directly sold the faulty product, it gave nothing to the small-scale farmers to whom it had handed out free sachets of seeds. “When the economic power of Gates is coupled with the irresponsibility of Monsanto, the outlook for African smallholders is not very promising,” said Mayet. Monsanto’s aggressive patenting practices have also monopolized control over seed in ways that deny farmers control over their own harvest, going so far as to sue—and bankrupt—farmers for “patent infringement.” News of the Foundation’s recent Monsanto investment has confirmed the misgivings of many farmers and sustainable agriculture advocates in Africa, among them the Kenya Biodiversity Coalition, who commented, “We have long suspected that the founders of AGRA—the Bill and Melinda Gates Foundation—had a long and more intimate affair with Monsanto.” Indeed, according to Travis English, researcher with AGRA Watch, “The Foundation’s ownership of Monsanto stock is emblematic of a deeper, more long-standing involvement with the corporation, particularly in Africa.” In 2008, AGRA Watch, a project of the Seattle-based organization Community Alliance for Global Justice, uncovered many linkages between the Foundation’s grantees and Monsanto. For example, some grantees (in particular about 70% of grantees in Kenya) of the Alliance for a Green Revolution in Africa (AGRA)—considered by the Foundation to be its “African face”—work directly with Monsanto on agricultural development projects. Other prominent links include high-level Foundation staff members who were once senior officials for Monsanto, such as Rob Horsch, formerly Monsanto Vice President of International Development Partnerships and current Senior Program Officer of the Gates Agricultural Development Program. Transnational corporations like Monsanto have been key collaborators with the Foundation and AGRA’s grantees in promoting the spread of industrial agriculture on the continent. This model of production relies on expensive inputs such as chemical fertilizers, genetically modified seeds, and herbicides. Though this package represents enticing market development opportunities for the private sector, many civil society organizations contend it will lead to further displacement of farmers from the land, an actual increase in hunger, and migration to already swollen cities unable to provide employment opportunities. In the words of a representative from the Kenya Biodiversity Coalition, “AGRA is poison for our farming systems and livelihoods. Under the philanthropic banner of greening agriculture, AGRA will eventually eat away what little is left of sustainable small-scale farming in Africa.” A 2008 report initiated by the World Bank and the UN, the International Assessment of Agricultural Knowledge, Science and Technology for Development (IAASTD), promotes alternative solutions to the problems of hunger and poverty that emphasize their social and economic roots. The IAASTD concluded that small-scale agroecological farming is more suitable for the third world than the industrial agricultural model favored by Gates and Monsanto. In a summary of the key findings of IAASTD, the Pesticide Action Network North America (PANNA) emphasizes the report’s warning that “continued reliance on simplistic technological fixes—including transgenic crops—will not reduce persistent hunger and poverty and could exacerbate environmental problems and worsen social inequity.” Furthermore, PANNA explains, “The Assessment’s 21 key findings suggest that small-scale agroecological farming may offer one of the best means to feed the hungry while protecting the planet.” The Gates Foundation has been challenged in the past for its questionable investments; in 2007, the L.A. Times exposed the Foundation for investing in its own grantees and for its “holdings in many companies that have failed tests of social responsibility because of environmental lapses, employment discrimination, disregard for worker rights, or unethical practices.” The Times chastised the Foundation for what it called “blind-eye investing,” with at least 41% of its assets invested in “companies that countered the foundation’s charitable goals or socially-concerned philosophy.” cont. added by: JanforGore

Barclays layoffs 2010

A branch of Barclays bank in north London. British bank Barclays has boosted first-half profits by nearly a third thanks to a sharp drop in bad debts, as well as strong lending and investment banking activities, it announced on Thursday. Barclays Capital, the investment banking arm of Barclays Plc, plans to cut as many as several hundred jobs , mostly in back-office support functions, a person familiar with the situation said on Tuesday. The cuts would come in the wake of a drop in market acti

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Barclays layoffs 2010

Diddy Set To Guest On ‘Entourage’

The Bad Boy mogul plays himself on HBO show. Lenny Kravitz and Mark Wahlberg also make cameos in episode, airing in August. By Mawuse Ziegbe Diddy Photo: Getty Images For its seventh season, HBO’s “Entourage” is enlisting a superstar who’s known for rolling with his own mega-entourage. Diddy will make a guest appearance on the series’ upcoming season, which kicks off June 27. The show’s creator, Doug Ellin, told EW.com that Diddy will appear as himself alongside “Entourage” executive producer Mark Wahlberg in an episode set to air in August. “Turtle [Jerry Ferrara] is starting a business, and he’s trying to get them to invest in it,” Ellin explained. “He’s going to a lot of people about this investment.” Diddy tweeted the news on Thursday and included a link to a story posted on AOL’s TheBoombox.com . Rocker Lenny Kravitz will also make a cameo in the star-packed episode. “Ari’s trying to trade favors,” Ellin revealed to EW.com of the plotline that finds Jeremy Piven’s hard-driving agent wheeling and dealing as usual. “He’s got to get Lenny to do a movie so someone else will do something for him.” Diddy won’t be the first hip-hop artist to show up on “Entourage”: Bow Wow played an up-and-coming comedian, 50 Cent taunted Turtle in a guest spot as a cocky driver and Snoop also did his thing on the HBO hit; the West Coast MC played himself. Wahlberg recently told MTV News the new season could be the setup for a much buzzed-about “Entourage” movie. “I am more focused on making that movie than my own films,” Wahlberg said. “I just think we can make a great movie. I think people always wanted [it] and have complained that the episodes are too short — they’ve always wanted more. I think we’re going to do it,” he said. “We just have to end strong, and this season is, by far, the best season so far.” Both Diddy and Kravitz have been making power moves in Hollywood. Kravitz gave a touching portrayal as a male nurse in the Oscar-winning drama “Precious” , and Diddy’s scene-stealing turn in this month’s “Get Him to the Greek” won raves from co-star Jonah Hill. Are you excited for a new season of “Entourage”? Which other rappers would you like to see make a cameo? Let us know in the comments! Related Artists Diddy

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Diddy Set To Guest On ‘Entourage’

CNBC’s Insana Rips Ron Paul: He ‘Doesn’t Even Have a Basic Understanding of Fundamental Economics’

This one was one that you just couldn’t let go – that libertarian champion and former Republican presidential candidate Rep. Ron Paul, Texas, doesn’t have a basic understanding of economics. That was the claim made by CNBC senior analyst and commentator Ron Insana on the June 14 broadcast of “Closing Bell.” At issue was a June 14 Washington Post article by Robert O’Hara and Dan Keating that suggested there was a conflict of interest in Paul’s investments and his policy stances, as in he is a proponent of the gold standard and other uses for the precious medal. ” Rep. Ron Paul is captivated by gold,” O’Hara and Keating wrote. “Over the past two decades, he has written books about the virtues of gold-backed currency. He has made uncounted speeches about the precious metal. He even took a leadership post on the House subcommittee that oversees the nation’s monetary policy, mints and gold medals.” O’Hara and Keating detailed just how extensive Paul’s investments are – valued at $1.7 million. “But his focus on gold goes beyond the theoretical,” they wrote. “In recent years, Paul (R-Tex.) has poured hundreds of thousands of his own dollars into stocks of some of the world’s largest gold-mining operations, according to a review of his financial disclosure forms by The Washington Post. In 2008, while advocating for the United States to reinstate a gold standard, he reported owning up to $1.5 million in shares of at least nine gold-production companies. In addition, he disclosed up to $200,000 in silver stocks. In all, those holdings represented close to half of his assets.” But according to Insana, who has had an on-again-off-again career at CNBC after a failed attempt to try his hand at running a hedge fund , took a shot at Paul’s investment strategy, claiming the Texas congressman was some sort of investing simpleton. “Listen, the Ron Paul stuff, you know, if it weren’t part of a conflict story would be funny because Ron Paul is one of the many elected representatives who we have that doesn’t even have a basic understanding of fundamental economics, let alone more complex issues and better ways to hedge against inflation than buying gold,” Insana said. “Gold is a complex instrument. You know, it speaks to a bigger point. He doesn’t even know what he’s doing.” As unsophisticated as Insana’s claim that Paul’s investment in gold is, assuming Paul had held this commodity going back to late 2008, he would be up over 50 percent with his investment, while the S&P 500 is down nearly 13 percent in the same time period.

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CNBC’s Insana Rips Ron Paul: He ‘Doesn’t Even Have a Basic Understanding of Fundamental Economics’

Peter Jackson Won’t Replace Guillermo Del Toro On ‘The Hobbit’

‘Lord of the Rings’ director and ‘Hobbit’ producer won’t direct, manager says. By Gil Kaufman Guillermo del Toro Photo: Matt Carr/ Getty Images After years of delays and behind-the-scenes battles, the long-awaited, two-part “Lord of the Rings” prequel is searching for a new director after Guillermo del Toro dropped out of the project over the weekend. One thing seems sure, “LOTR” director and mastermind Peter Jackson, who is producing “The Hobbit” films, doesn’t appear to be in the running to step back into the director’s chair for the project. Jackson’s manager, Ken Kamins, told Entertainment Weekly over the holiday weekend that he spoke to his client about taking over the project. “As for Peter directing, that’s not something he can consider at this time as he has other commitments to other projects,” Kamins said. “But make no mistake, Peter and [producing partner Fran Walsh’s] commitment to the franchise is total and they will do everything necessary to protect the films and the investment made by New Line, [parent company] Warner Bros. and MGM.” Plans called for representatives of the studios to meet this week with Jackson and Walsh to discuss who might step into Del Toro’s shoes. The production of “The Hobbit” has been a long and winding road, and given the huge time commitment to filming two “Hobbit” films back-to-back, Del Toro said in a press release posted on TheOneRing.net on Sunday that he could not wait any longer for filming to start. “In light of ongoing delays in the setting of a start date for filming ‘The Hobbit,’ I am faced with the hardest decision of my life,” he said. “After nearly two years of living, breathing and designing a world as rich as Tolkien’s Middle Earth, I must, with great regret, take leave from helming these wonderful pictures. I remain grateful to Peter, Fran and Philippa Boyens, New Line and Warner Brothers and to all my crew in New Zealand. I’ve been privileged to work in one of the greatest countries on Earth with some of the best people ever in our craft and my life will be forever changed. The blessings have been plenty, but the mounting pressures of conflicting schedules have overwhelmed the time slot originally allocated for the project. Both as a co-writer and as a director, I wish the production nothing but the very best of luck and I will be first in line to see the finished product. I remain an ally to it and its makers, present and future, and fully support a smooth transition to a new director.” Pre-production on the two “Hobbit” movies , currently slated for release in December 2012 and 2013, has been going on for several years. Just last week, Del Toro, 45, told EW that he’s been toiling for two years in New Zealand with Jackson’s team designing the creatures, the sets, the wardrobes and action sequences. Jackson weighed in on the news as well, telling TheOneRing.net, “We feel very sad to see Guillermo leave ‘The Hobbit,’ but he has kept us fully in the loop, and we understand how the protracted development time on these two films, due to reasons beyond anyone’s control — has compromised his commitment to other long term projects. The bottom line is that Guillermo just didn’t feel he could commit six years to living in New Zealand, exclusively making these films, when his original commitment was for three years. Guillermo is one of the most remarkable creative spirits I’ve ever encountered and it has been a complete joy working with him. Guillermo’s strong vision is engrained into the scripts and designs of these two films, which are extremely fortunate to be blessed with his creative DNA. Guillermo is co-writing ‘The Hobbit’ screenplays with Philippa Boyens, Fran Walsh and myself, and happily our writing partnership will continue for several more months, until the scripts are fine tuned and polished. New Line and Warner Bros. will sit down with us this week, to ensure a smooth and uneventful transition, as we secure a new director for ‘The Hobbit.’ We do not anticipate any delay or disruption to ongoing pre-production work.” Check out everything we’ve got on “The Hobbit.” For breaking news, celebrity columns, humor and more — updated around the clock — visit MTVMoviesBlog.com .

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Peter Jackson Won’t Replace Guillermo Del Toro On ‘The Hobbit’

The Humiliation of a Creepy Russian Sugar Daddy [Venture Capital]

Russia’s Digital Sky Technologies might be the toast of Silicon Valley, but the investment firm gives the Russian founder of Chatroulette the creeps. Sometimes it takes a teenager to say the obvious, rude things adults can’t bring themselves to utter. More