Peru’s capital highly vulnerable to major quake












LIMA, Peru (AP) — The earthquake all but flattened colonial Lima, the shaking so violent that people tossed to the ground couldn’t get back up. Minutes later, a 50-foot (15-meter) wall of Pacific Ocean crashed into the adjacent port of Callao, killing all but 200 of its 5,000 inhabitants. Bodies washed ashore for weeks.


Plenty of earthquakes have shaken Peru‘s capital in the 266 years since that fateful night of Oct. 28, 1746, though none with anything near the violence.












The relatively long “seismic silence” means that Lima, set astride one of the most volatile ruptures in the Earth’s crust, is increasingly at risk of being hammered by a one-two, quake-tsunami punch as calamitous as what devastated Japan last year and traumatized Santiago, Chile, and its nearby coast a year earlier, seismologists say.


Yet this city of 9 million people is sorely unprepared. Its acute vulnerability, from densely clustered, unstable housing to a dearth of first-responders, is unmatched regionally. Peru’s National Civil Defense Institute forecasts up to 50,000 dead, 686,000 injured and 200,000 homes destroyed if Lima is hit by a magnitude-8.0 quake.


“In South America, it is the most at risk,” said architect Jose Sato, director of the Center for Disaster Study and Prevention, or PREDES, a non-governmental group financed by the charity Oxfam that is working on reducing Lima’s quake vulnerability.


Lima is home to a third of Peru’s population, 70 percent of its industry, 85 percent of its financial sector, its entire central government and the bulk of international commerce.


“A quake similar to what happened in Santiago would break the country economically,” said Gabriel Prado, Lima’s top official for quake preparedness. That quake had a magnitude of 8.8.


Quakes are frequent in Peru, with about 170 felt by people annually, said Hernando Tavera, director of seismology at the country’s Geophysical Institute. A big one is due, and the chances of it striking increase daily, he said. The same collision of tectonic plates responsible for the most powerful quake ever recorded, a magnitude-9.5 quake that hit Chile in 1960, occurs just off Lima’s coast, where about 3 inches of oceanic crust slides annually beneath the continent.


A 7.5-magnitude quake in 1974 a day’s drive from Lima in the Cordillera Blanca range killed about 70,000 people as landslides buried villages. Seventy-eight people died in the capital. In 2007, a 7.9-magnitude quake struck even closer, killing 596 people in the south-central coastal city of Pisco.


A shallow, direct hit is the big danger.


More than two in five Lima residents live either in rickety structures on unstable, sandy soil and wetlands that amplify a quake’s destructive power or in hillside settlements that sprang up over a generation as people fled conflict and poverty in Peru’s interior. Thousands are built of colonial-era adobe.


Most quake-prone countries have rigorous building codes to resist seismic events. In Chile, if engineers and builders don’t adhere to them they can face prison. Not so in Peru.


“People are building with adobe just as they did in the 17th century,” said Carlos Zavala, director of Lima’s Japanese-Peruvian Center for Seismic Investigation and Disaster Mitigation.


Environmental and human-made perils compound the danger.


Situated in a coastal desert, Lima gets its water from a single river, the Rimac, which a landslide could easily block. That risk is compounded by a containment pond full of toxic heavy metals from an old mine that could rupture and contaminate the Rimac, said Agustin Gonzalez, a PREDES official advising Lima’s government.


Most of Lima’s food supply arrives via a two-lane highway that parallels the river, another potential chokepoint.


Lima’s airport and seaport, the key entry points for international aid, are also vulnerable. Both are in Callao, which seismologists expect to be scoured by a 20-foot (6-meter) tsunami if a big quake is centered offshore, the most likely scenario.


Mayor Susana Villaran’s administration is Lima’s first to organize a quake-response and disaster mitigation plan. A February 2011 law obliged Peru’s municipalities to do so. Yet Lima’s remains incipient.


“How are the injured going to be attended to? What is the ability of hospitals to respond? Of basic services? Water, energy, food reserves? I don’t think this is being addressed with enough responsibility,” said Tavera of the Geophysical Institute.


By necessity, most injured will be treated where they fall, but Peru’s police have no comprehensive first-aid training. Only Lima’s 4,000 firefighters, all volunteers, have such training, as does a 1,000-officer police emergency squadron.


But because the firefighters are volunteers, a quake’s timing could influence rescue efforts.


“If you go to a fire station at 10 in the morning there’s hardly anyone there,” said Gonzalez, who advocates a full-time professional force.


In the next two months, Lima will spend nearly $ 2 million on the three fire companies that cover downtown Lima, its first direct investment in firefighters in 25 years, Prado said. The national government is spending $ 18 million citywide for 50 new fire trucks and ambulances.


But where would the ambulances go?


A 1997 study by the Pan American Health Organization found that three of Lima’s principal public hospitals would likely collapse in a major quake, but nothing has been done to reinforce them.


And there are no free beds. One public hospital, Maria Auxiliadora, serves more than 1.2 million people in Lima’s south but has just 400 beds, and they are always full.


Contingency plans call for setting up mobile hospitals in tents in city parks. But Gonzalez said only about 10,000 injured could be treated.


Water is also a worry. The fire threat to Lima is severe — from refineries to densely-backed neighborhoods honeycombed with colonial-era wood and adobe. Lima’s firefighters often can’t get enough water pressure to douse a blaze.


“We should have places where we can store water not just to put out fires but also to distribute water to the population,” said Sato, former head of the disaster mitigation department at Peru’s National Engineering University.


The city’s lone water-and-sewer utility can barely provide water to one-tenth of Lima in the best of times.


Another big concern: Lima has no emergency operations center and the radio networks of the police, firefighters and the Health Ministry, which runs city hospitals, use different frequencies, hindering effective communication.


Nearly half of the city’s schools require a detailed evaluation to determine how to reinforce them against collapse, Sato said.


A recent media blitz, along with three nationwide quake-tsunami drills this year, helped raise consciousness. The city has spent more than $ 77 million for retention walls and concrete stairs to aid evacuation in hillside neighborhoods, Prado said, but much more is needed.


At the biggest risk, apart from tsunami-vulnerable Callao, are places like Nueva Rinconada.


A treeless moonscape in the southern hills, it is a haven for economic refugees who arrive daily from Peru’s countryside and cobble together precarious homes on lots they scored into steep hillsides with pickaxes.


Engineers who have surveyed Nueva Rinconada call its upper reaches a death trap. Most residents understand this but say they have nowhere else to go.


Water arrives in tanker trucks at $ 1 per 200 liters (52 gallons) but is unsafe to drink unless boiled. There is no sanitation; people dig their own latrines. There are no streetlamps, and visibility is erased at night as Lima’s bone-chilling fog settles into the hills.


Homes of wood, adobe and straw matting rest on piled-rock foundations that engineers say will crumble and rain down on people below in a major quake.


A recently built concrete retaining wall at the valley’s head lies a block beneath the thin-walled wood home of Hilarion Lopez, a 55-year-old janitor and community leader. It might keep his house from sliding downhill, but boulders resting on uphill slopes could shake loose and crush him and his neighbors.


“We’ve made holes and poured concrete around some of the more unstable boulders,” he says, squinting uphill in a strong late morning sun.


He’s not so worried if a quake strikes during daylight.


“But if I get caught at night? How do I see a rock?”


___


Associated Press writer Franklin Briceno contributed to this report.


___


Frank Bajak on Twitter: http://twitter.com/fbajak


Latin America News Headlines – Yahoo! News


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7 Apps You Don’t Want To Miss












Twitterific


Twitter client Twitterific released version 5 of its iOS app this week. Overhauled and redesigned, the updated app has a new customizable user interface, gesture support, and the ability to sync timeline positions between several different devices.


Click here to view this gallery.












[More from Mashable: Google Now Updated With Boarding Passes, Improved Voice Search]


It can be tough to keep up with all the new apps released every week. But you’re in luck — we take care of that for you, creating a roundup each weekend of our favorite new and updated apps.


This week a popular mobile photo editing app for iOS finally made its way to Android, and a hot email app for iOS saw a huge update.


[More from Mashable: Chihuly App Brings Glassblowing To The iPhone]


We found an app that lets you create virtual glass art projects with your iPhone, and an app for Android that lets you find and purchase art projects that others have created.


Check out the gallery above for a look at this week’s app highlights.


If you’re still looking for more, check out last week’s Apps You Don’t Want To Miss.


Think we left a great new app off the list? Let us know in the comments below.


Photo courtesy iStockphoto, scanrail


This story originally published on Mashable here.


Tech News Headlines – Yahoo! News


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Orlando Bloom’s Legolas returns to Middle Earth in 2014′s “There and Back Again”












LOS ANGELES (TheWrap.com) – Legolas was a fan favorite in Peter Jackson‘s “Lord of the Rings” trilogy, but J.R.R. Tolkien enthusiasts won’t see the warrior Elf return to Middle Earth until 2014 when “The Hobbit: There and Back Again” hits theaters.


Entertainment Weekly published the first image of Orlando Bloom reprising his role and he looks pretty much the same, with the exception of his very blue eyes (weren’t they brown before?).












It’s true that the character is not featured in the book this trilogy is being adapted from, but luckily for Bloom’s bank account, his father is.


“He’s Thranduil’s son, and Thranduil is one of the characters in ‘The Hobbit,’” Jackson explained. “And because elves are immortal it makes sense Legolas would be part of the sequence in the Woodland Realm.”


If you don’t recognize the man standing next to Legolas, it’s because he’s a new face in the franchise. Bard the Bowman – played by Luke Evans – is a heroic human Laketown warrior who (if you couldn’t tell by his name) is also quite the marksman. He’ll come into the picture when “The Hobbit: The Desolation of Smaug” lands in theaters on December 13, 2013.


Movies News Headlines – Yahoo! News


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On the edge of the “cliff,” U.S. cities like Charleston












CHARLESTON, South Carolina (Reuters) – For 37 years straight, Joseph P. Riley Jr. has sat behind the mayor’s desk here, shaping this city and its budget.


On a recent afternoon, Riley, 69, reached for a draft copy of next year’s spending plan and wondered aloud about what might get cut should politicians in Washington fail to find an agreement this month, unleashing $ 600 billion worth of spending reductions and tax hikes next year.












Hiring new police officers for the city of 123,000 could be put on hold, Riley said. A new piece of equipment for the fire department would have to wait. Sanitation workers might be in trouble, too.


“The thought that they would allow the economic harm that would ensue if we went over the fiscal cliff is mind-boggling,” said Riley, a Democrat who was elected to his 10th term last year.


Charleston, a beautiful city steeped in history and awash in tourist dollars, would seem at first glance a world apart from the harm that could be caused by the combination of spending cuts and higher taxes. Economists predict its arrival could send the United States hurtling back into a recession.


At its edges, however, Charleston harbors the people who are most vulnerable to Washington’s intransigence, making the city an emblem of a country’s worry and of the powerlessness people feel in the face of Washington’s indecision.


The sting of automatic cuts would be felt acutely by those who work in the defense sector and the poor. They form two prominent groups in Charleston County who may share little but the knowledge that federal belt-tightening is less a nuisance than an existential threat.


In South Carolina, defense spending accounts for $ 15.7 billion in annual economic activity – more than one in 10 dollars spent in the state – and nearly 140,000 jobs.


The Charleston area alone, which includes a large Air Force base and a Navy facility, holds more than 66,000 defense jobs and nearly half of the state’s military economic activity, according to a report released last month by the South Carolina Department of Commerce.


While Charleston, like the rest of the state, has seen a boom in military spending over the last decade, the area has the state’s second-highest concentration of people living in poverty, according to 2010 U.S. census data. More than one in four children live in poverty in the surrounding county.


From the anticipated cuts to the military to the shrinking of the safety net, Charleston shows what’s at stake should the United States fall off the fiscal cliff.


‘DEVASTATION’


A fast-talking engineer originally from Detroit, Michigan, Rebecca Ufkes founded UEC Electronics with her husband in neighboring Hanahan 17 years ago. Walking past employees in blue lab coats assembling components for military vehicles and commercial products last week, Ufkes described the chilling effect the possibility of cuts have had on Charleston’s defense industry.


In September, Ufkes traveled to Washington as a part of a lobbying effort organized by the Aerospace Industry Association, hoping to impress politicians with the dangers facing her 200-person company and its competitors should the anticipated $ 500 billion in defense cuts, over 10 years, come to pass.


She came away encouraged by her state’s largely Republican representation in Washington but frustrated by other lawmakers.


“South Carolina is a very pro-business state,” she said. “They are very keen on economics. It’s just that we are only one of 50 states.”


Ufkes, 48, said she worries not only about the uncertainty that has left defense contractors unsure where to invest but the impending tax increases, which she said will put her company, active in the commercial marketplace as well, at a disadvantage against foreign rivals.


“Probably the solution is not going to be perfect for UEC,” she said, “but I don’t want it to be devastating. Compromise and devastation are not the same thing.”


With a mug declaring, “Failure is not an option,” sitting on her desk, Ufkes predicted that her company would make it, no matter how devastating the cuts are.


“If we don’t survive,” she said. “I don’t know who will.”


NO ‘GIFTS’


Five miles (eight km) from Ufkes’ cutting-edge electronics manufacturer is the struggling North Charleston neighborhood of Chicora-Cherokee, where Bill Stanfield and his wife, Evelyn Oliveira, arrived fresh out of Princeton Theological Seminary 10 years ago.


They founded Metanoia, a development organization focusing on bettering the community by securing housing loans, planting a garden, and running after-school and summer programs.


Through government services like AmeriCorps, the national volunteer group, and funds from sources like the U.S. Department of Housing and Urban Development, Stanfield said his group received nearly a fifth of its funding from the federal government last year.


With politicians facing immense pressure over limiting cuts to entitlements like the Medicare health insurance program for seniors and the Social Security retirement program, advocates for the poor say they expect painful reductions in spending on education and housing.


“I don’t know if our housing program would survive,” Stanfield, 39, said.


Cuts to education will hit South Carolina hard, where the schools have bled money over the last five years.


According to the left-leaning Center on Budget and Policy Priorities, South Carolina’s cuts to education have been the fifth largest in the country, slicing 18 percent off of per-student spending during that period.


The Obama administration, which Republicans consider a profligate spender, has felt like lean times in neighborhoods like Chicora-Cherokee, Stanfield said.


“You know Mitt Romney said that people voted for Obama because of gifts?” Stanfield said. “There’s this misconception that President Obama has been a gravy train of funding. There was more funding under President Bush of these organizations than under Obama.”


‘GAME OF CHICKEN’


Last month, Riley, the Charleston mayor, went to Washington with a group of fellow city leaders, Democrats and Republicans, to lobby the White House and Congress to save cities from drastic cuts.


Vice President Joseph Biden and Democratic leaders from the House of Representatives and Senate met with the mayors. House Speaker John Boehner and other Republican leaders in Congress declined their invitation, Riley said.


While Riley supports Obama’s proposal to increase taxes on income earned over $ 250,000, a sticking point in the negotiations, he and other mayors cautioned that ending the tax-free status of municipal bonds would strangle cities’ access to needed capital.


Riley returned to Charleston feeling like a deal, which could prevent the harshest blows from hitting his city, its residents and jobs, was in the offing. Now, he said, he is not so sure.


“It looks like it’s a game of chicken,” he said, “and there are signals that they are going to go through with it.”


(Reporting By Samuel P. Jacobs Editing by Fred Barbash and Eric Beech)


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Cities see ‘anti-cuts’ marches













Campaigners “protesting against the Autumn Statement” have taken part in marches in Manchester and Liverpool.












Demonstrations were held in both cities by protest groups, including UK Uncut and Boycott Workfare, and trade unions.


Manchester organiser Mark Krantz said the “poorest will be going without” as a result of the Chancellor’s statement on Wednesday.


Prime Minister David Cameron has said the Chancellor’s plans would be “hugely helpful for working people”.


Mr Krantz, of Manchester Coalition Against Cuts, said the plans meant working people “face further cuts to their household budgets as pay and benefits have been set at below inflation levels”.


“Claims that ‘we now really are all in it together’ are clearly not true – rich people will not go hungry this Christmas, but the poorest will be going without,” he said.


“Council budgets for cities like Manchester and Liverpool, which have already suffered with jobs slashed and vital services shut, are now facing further cuts due to Osborne’s announcements.”


Michelle Smith, of Liverpool Against the Cuts, said the plans would “hit the most vulnerable in our society”.


She added that the Liverpool protest would be “highlighting the effect of the cuts on women in particular” and that all the groups involved were “protesting against the Chancellor’s Autumn Statement”.


Chancellor George Osborne delivered the coalition government’s plans for taxing and spending in his annual Autumn Statement on Wednesday.


The statement laid out changes to welfare and tax and cuts to local government budgets amongst other measures.


BBC News – Business


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Egyptian opposition to shun Mursi’s national dialogue












CAIRO (Reuters) – President Mohamed Mursi was expected to press ahead on Saturday with talks on ways to end Egypt‘s worst crisis since he took office even though the country’s main opposition leaders have vowed to stay away.


Cairo and other cities have been rocked by violent protests since November 22, when Mursi promulgated a decree awarding himself sweeping powers that put him above the law.












The upheaval in the most populous Arab nation, following the fall of Hosni Mubarak last year, worries the West, in particular the United States, which has given it billions of dollars in military and other aid since Egypt made peace with Israel in 1979.


Mursi’s deputy raised the possibility that a referendum set for December 15 on a new constitution opposed by liberals might be delayed. But the concession only goes part-way towards meeting the demands of the opposition, who also want Mursi to scrap the decree awarding himself wide powers.


On Friday, large crowds of protesters surged around the presidential palace, breaking through barbed wire barricades and climbing on tanks guarding the seat of Egypt’s first freely elected president, who took office in June.


As the night wore on, tens of thousands of opposition supporters were still at the palace, waving flags and urging Mursi to “Leave, leave”.


“AS LONG AS IT TAKES”


“We will stay here for as long as it takes and will continue to organize protests elsewhere until President Mursi cancels his constitutional decree and postpones the referendum,” said Ahmed Essam, 28, a computer engineer and a member of the liberal Dostour party.


Vice President Mahmoud Mekky issued a statement saying the president was prepared to postpone the referendum if that could be done without legal challenge.


Mursi’s planned dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. “Everything will be on the table,” a presidential source said.


Mursi could be joined by some senior judiciary figures and politicians such as Ayman Nour, one of the candidates in Mubarak’s only multi-candidate presidential race, in 2005, in which he was unsurprisingly trounced.


The opposition has demanded that Mursi rescind the decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.


EXPAT VOTE DELAYED


The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting within Egypt.


Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was intended to seem like a concession but would not change the opposition’s stance.


The opposition organized marches converging on the palace which Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.


Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo’s al-Azhar mosque for six Mursi partisans who were among the dead.


“With our blood and souls, we sacrifice to Islam,” they chanted.


A group led by leftist opposition leader Hamdeen Sabahy has called for an open-ended protest at the palace.


Some pro-Mursi demonstrators gathered in a mosque not far from the palace, but said they would not march towards the palace to avoid a repeat of the violence that took place on Wednesday night.


In a speech late on Thursday, Mursi had refused to retract his decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.


The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front’s coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as “arm-twisting and imposition of a fait accompli”.


ElBaradei said that if Mursi were to scrap the decree with which he awarded himself extra powers and postpone the referendum “he will unite the national forces”.


Murad Ali, spokesman for the Muslim Brotherhood’s Freedom and Justice Party, said opposition reactions were sad: “What exit to this crisis do they have other than dialogue?” he asked.


(This story corrects Mursi’s title to president in paragraph 1)


(Additional reporting by Omar Fahmy; Writing by Giles Elgood; Editing by Michael Roddy and Paul Tait)


World News Headlines – Yahoo! News


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New Sony online store offers remote downloads to PlayStation and mobile devices












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Australia’s Gillard in spoof: Mayans were right, world is ending












CANBERRA (Reuters) – According to Australian Prime Minister Julia Gillard, the Mayans were right and the apocalypse is near.


In a spoof 50-second video appearance promoting a local radio station‘s breakfast show, Gillard provided hair-raising details that she said would come when the world ends this month, as the ancient Mayans calendar predicted.












With the straight face she often uses in a normal press conference, and surrounded by Australian national flags, Gillard addressed viewers as “My dear remaining fellow Australians.”


“The end of world is coming. It wasn’t Y2K, it wasn’t even the carbon price,” said Gillard firmly. “It turns out that the Mayan calendar is true.”


Y2K was the computer glitch feared globally just before the year 2000, while the carbon tax refers to a major controversial policy put forward by her Labour government in 2012.


She went into terrifying details about the end of the world such as “flesh-eating zombies” and “demonic hell beasts”, but then wooed her constituents with promises.


“If you know one thing about me it is this: I will always fight for you to the very end,” she said, but noted that there is also a bright spot.


“At least this means I won’t have to do Q&A again,” she said, referring to an Australian TV show where politicians usually have to face tough questions from the audience.


A spokesman for Gillard said the video, which was uploaded by radio station Triple J on Thursday and has already been viewed more than 232,000 times on YouTube, was simply a spoof.


“It’s just bit of fun,” he told Reuters. “It’s just a bit of humor for the end of the year. Nothing else.”


The video comes out in the wake of a phone hoax in which two Australian presenters from another local radio station called the hospital which is treating Prince William’s wife Kate and posed as Queen Elizabeth and Prince Charles to ask questions about her condition.


(Reporting By Maggie Lu Yueyang, editing by Elaine Lies)


Celebrity News Headlines – Yahoo! News


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Trade-offs in raising Medicare eligibility age












WASHINGTON (AP) — Americans are living longer, and Republicans want to raise the Medicare eligibility age as part of any deal to reduce the government’s huge deficits.


But what sounds like a prudent sacrifice for an aging society that must watch its budget could have some surprising consequences, including higher premiums for people on Medicare.












Unlike tax hikes, which spawn hard partisan divisions, increasing the Medicare age could help ease a budget compromise because President Barack Obama has previously been willing to consider it. A worried AARP, the seniors’ lobby, is already running ads knocking down the idea as a quick fix that would cause long-term problems. House Democratic Leader Nancy Pelosi, D-Calif., doesn’t like it either.


But for Republicans seeking more than just tweaks to benefit programs, raising the current eligibility age of 65 has become a top priority, a symbol of their drive to rein in government. If Obama and the GOP can’t agree soon on a budget outline, it may trigger tax increases and spending cuts that would threaten a fragile economic recovery.


Increasing the eligibility age to 67 would reduce Medicare spending by about 5 percent annually, compounding into hundreds of billions of dollars over time. But things aren’t that simple.


“This is a policy change that seems straightforward, but has surprising ripple effects,” said Tricia Neuman, a leading Medicare expert with the nonpartisan Kaiser Family Foundation. “It’s a simple thing to describe, and the justification is that people are living longer, but I don’t think people have thought through the indirect effects.”


Among the cost shifts identified in a Kaiser study:


—Higher monthly premiums for seniors on Medicare. Their costs would go up because keeping younger, healthier 65- and 66-year-olds out of Medicare’s insurance pool would raise costs for the rest. The increase would be about 3 percent when the higher eligibility age is fully phased in.


—Higher premiums for private coverage under Obama’s health overhaul. That’s because older adults would stick with private insurance for two extra years before moving into Medicare. Compared with younger adults, they are more expensive to insure.


—An increase in employer costs because older workers would try to stay on company insurance plans.


—Higher out-of-pocket health care costs for two out of three older adults whose entry into Medicare would be delayed.


The Congressional Budget Office has also projected an increase in the number of uninsured. That possibility becomes more real with populous states like Texas saying they won’t accept the Medicaid expansion in Obama’s health overhaul, which would provide coverage to low-income adults. Then there’s the impact on people with physically demanding jobs, for whom extending their working years may be difficult.


Still, the idea isn’t going away.


Polls show that many Americans are willing to consider raising the age at which people become eligible for Medicare benefits as part of a plan to reduce deficits, even if on the whole it’s still unpopular.


A new Associated Press-GfK poll found that four in 10 back gradually raising the eligibility age, while 48 percent oppose that plan.


Those under age 30 were most supportive, while a clear majority of those between the ages of 30 and 64 were opposed. Seniors were split. Surprisingly, there were no significant differences by political party. Overall, foes of the idea were more adamant, with strong opponents outnumbering strong supporters by 2-1.


U.S. life expectancy has risen by about eight years since Medicare was created in 1965. During the 1980s, Republican President Ronald Reagan and Democratic congressional leaders agreed to gradually increase the age for receiving full Social Security benefits from 65 to 67. But they didn’t touch Medicare eligibility.


Since then, some policy experts have advocated aligning the Medicare and Social Security eligibility ages through a gradual phase-in that would spare those close to retirement.


The idea gained new life when Republicans won the House in 2010, and Budget Chairman Paul Ryan, R-Wis., embraced it. Obama indicated he was open to it during budget talks with Republicans in 2011. But the president quickly retreated, and now says he’s not willing to consider cutting Medicare unless Congress agrees to raise taxes on the wealthy.


The No. 2 Democrat in the House, Maryland Rep. Steny Hoyer, says raising the eligibility age and other cuts “clearly are on the table,” although he doesn’t see much chance for them if Republicans don’t yield on taxes.


For his part, House Speaker John Boehner, R-Ohio, has relented from pursuing other major changes to Medicare, such as privatization. But when it comes to the eligibility age, he is still pushing.


“It’s a structural change but it doesn’t require you to adopt a whole new model,” said Scott Gottlieb, a health policy expert with the business-oriented American Enterprise Institute. “It can be enacted quickly so you get the savings, and it can be phased in so you don’t affect people about to retire.”


AARP and other groups representing older adults are mobilizing against it.


“We are prepared to oppose this one pretty strongly,” said AARP legislative policy director David Certner. “It’s a pretty big deal.”


Raising the eligibility age is not the only Medicare cut in play. Hospitals and other service providers could see reductions in payments, drug companies may owe new rebates to the government and upper-income seniors would face higher monthly premiums. The total package could reach around $ 400 billion over 10 years.


Seniors/Aging News Headlines – Yahoo! News


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Wall Street Week Ahead: “Cliff” worries may drive tax selling












NEW YORK (Reuters) – Investors typically sell stocks to cut their losses at year end. But worries about the “fiscal cliff” – and the possibility of higher taxes in 2013 – may act as the greatest incentive to sell both winners and losers by December 31.


The $ 600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.












Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it’s still up nearly 32 percent for the year.


Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one’s tax bill is going to jump sharply just because the calendar changes.


“Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year,” said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


“You have a lot of high-net-worth individuals in taxable accounts, and that could be what’s affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual.”


Of this year’s top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.


The rush to avoid higher taxes on portfolio gains could cause additional weakness.


The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.


A PAIN PILL FROM THE FED?


Next week’s Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting – the Fed’s last one for the year.


Friday’s jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.


“After the FOMC meeting, I think it’s going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely,” said Mohannad Aama, managing director of Beam Capital Management LLC in New York.


“I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year,” he said.


MORE VOLUME AND VOLATILITY


Volume could increase as investors try to shift positions before year end, some analysts said.


While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade’s chief derivatives strategist.


Volatility could pick up as well, and some of that is already being seen in Apple’s stock.


“The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple’s volatility to carry over into the market volatility,” said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.


Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock’s 50-day moving average fell to $ 599.52 – below its 200-day moving average at $ 601.38.


“There’s a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple,” Aama said.


While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.


To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.


Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there’s a decent chance that the market could rally before year end.


“Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it’s hung in there in anticipation of something coming,” he said.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)


(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)


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