U.S. Spies Buy Stake in Firm That Monitors Blogs, Tweets

October 20th, 2009

Via: Wired:

America’s spy agencies want to read your blog posts, keep track of your Twitter updates — even check out your book reviews on Amazon.

In-Q-Tel, the investment arm of the CIA and the wider intelligence community, is putting cash into Visible Technologies, a software firm that specializes in monitoring social media. It’s part of a larger movement within the spy services to get better at using ”open source intelligence” — information that’s publicly available, but often hidden in the flood of TV shows, newspaper articles, blog posts, online videos and radio reports generated every day.

Visible crawls over half a million web 2.0 sites a day, scraping more than a million posts and conversations taking place on blogs, online forums, Flickr, YouTube, Twitter and Amazon. (It doesn’t touch closed social networks, like Facebook, at the moment.) Customers get customized, real-time feeds of what’s being said on these sites, based on a series of keywords.

“That’s kind of the basic step — get in and monitor,” says company senior vice president Blake Cahill.

Then Visible “scores” each post, labeling it as positive or negative, mixed or neutral. It examines how influential a conversation or an author is. (”Trying to determine who really matters,” as Cahill puts it.) Finally, Visible gives users a chance to tag posts, forward them to colleagues and allow them to response through a web interface.

In-Q-Tel says it wants Visible to keep track of foreign social media, and give spooks “early-warning detection on how issues are playing internationally,” spokesperson Donald Tighe tells Danger Room.

Of course, such a tool can also be pointed inward, at domestic bloggers or tweeters. Visible already keeps tabs on web 2.0 sites for Dell, AT&T and Verizon. For Microsoft, the company is monitoring the buzz on its Windows 7 rollout. For Spam-maker Hormel, Visible is tracking animal-right activists’ online campaigns against the company.

“Anything that is out in the open is fair game for collection,” says Steven Aftergood, who tracks intelligence issues at the Federation of American Scientists. But “even if information is openly gathered by intelligence agencies it would still be problematic if it were used for unauthorized domestic investigations or operations. Intelligence agencies or employees might be tempted to use the tools at their disposal to compile information on political figures, critics, journalists or others, and to exploit such information for political advantage. That is not permissible even if all of the information in question is technically ‘open source.’”

Visible chief executive officer Dan Vetras says the CIA is now an “end customer,” thanks to the In-Q-Tel investment. And more government clients are now on the horizon. “We just got awarded another one in the last few days,” Vetras adds.

Tighe disputes this — sort of. “This contract, this deal, this investment has nothing to do with any agency of government and this company,” he says. But Tighe quickly notes that In-Q-Tel does have “an interested end customer” in the intelligence community for Visibile. And if all goes well, the company’s software will be used in pilot programs at that agency. “In pilots, we use real data. And during the adoption phase, we use it real missions.”

Neither party would disclose the size of In-Q-Tel’s investment in Visible, a 90-person company with expected revenues of about $20 million in 2010. But a source familiar with the deal says the In-Q-Tel cash will be used to boost Visible’s foreign languages capabilities, which already include Arabic, French, Spanish and nine other languages.

Research Credit: JB


Real Estate Collapse Entering New Phase: Banks Refusing to Repossess Abandoned Homes, or Even File Foreclosures

October 19th, 2009

Not only are there no bids in some markets, the accumulation of property taxes means that some properties have negative valuations, like a derivative trade that’s gone bad.

Via: Dayton Daily News:

Nobody is sure exactly how many bank walkaways are occurring. For various reasons, they can’t be identified in searches of public real estate and court data without individually pulling case files, experts say.

But nobody questions that they are on the increase.

David Rothstein, a researcher with Policy Matters Ohio, summarized the way they occur like this:

* The lender files a foreclosure, gets the foreclosure judgment in court, takes the property to sheriff’s auction but doesn’t bid on it if no one else does.

* The lender files as above, gets the judgment, sets the sheriff’s auction, then cancels the sale at the last minute.

* The lender files as above but then never requests a sheriff’s auction.

* The lender doesn’t even bother to file foreclosure.

All of these actions leave the foreclosed property in the hands of the original owner who, in many cases, has moved out and is unaware the lender hasn’t taken it.

One indicator of the trend in walkaways is the gap between the number of foreclosure filings by lenders and the number of properties actually sold at sheriff’s auction.

A Dayton Daily News analysis of Montgomery County records found that, through September, foreclosure filings are on a pace this year to decrease by 8 percent. Meanwhile, foreclosed properties sold at sheriff’s sale will be down more than 21 percent. Over the three years an average of 2,500 foreclosure filings have not made it to sale at auction.

A foreclosure filing may not make it to auction for a number of reasons, including owners coming up with the money or lenders working out deals with them. But, Rothstein said, the growing difference between filings and sales suggests walkaways are playing an increasing role.

“When we look at the numbers, it’s not like thousands of people are getting loan modifications that would lift them out of the foreclosure process,” he said. “So what’s happening to those other properties?”

Another indicator is the falling number of properties that banks are repossessing, said Daren Blomquist, a spokesman for RealtyTrac, Inc. Data from RealtyTrac shows that bank repossessions, called REOs, have been steadily declining in Montgomery County over the last three years. The 2009 monthly average for repossessions is only 43 percent of what it was in 2007, a newspaper analysis of the data show.

“There’s something happening once the properties enter foreclosure that is at the very least slowing down the process,” Blomquist said. “Maybe not to that (Montgomery County’s) extreme, but we’re seeing a similar pattern nationwide.”

Another indicator is the number of canceled sheriff’s sales, said Chuck Rodersheimer, a Dayton attorney who specializes in bankruptcy and foreclosure cases. ZIP codes like 45405 and 45406 northwest of downtown Dayton illustrate the problem, he said.

A newspaper analysis of sheriff’s sale data found that 45406 had 721 cancellations since 2006, by far the most of any county ZIP code. The 45405 ZIP was second with 594 cancellations.

Some of those neighborhoods have a lot of old, deteriorating housing stock, many of which are for sale or vacant, and accumulating unpaid taxes. The cost to the bank for taking responsibility for those properties, he said, is going to far outstrip anything they could hope to get out of selling the homes.

The sheriff’s sale cancellations in those neighborhoods, Rodersheimer said, are unlikely to be a result of negotiations between the owner and lender. “It’s going to be the fact that the bank didn’t want the property any more.”

In some instances, lenders don’t even bother to file a foreclosure. Figures by RealtyTrac released this week show foreclosure filings in the greater Dayton area are down almost 21 percent.

John Carter, housing inspector with the city of Dayton, finds the decline in foreclosures “very scary,” because houses are continuing to go vacant.

For every 100 houses that he orders boarded up, he said, 40 to 50 properties have a mortgage but no foreclosure filed. When he contacts the banks, they sometimes tell him they have no plans to foreclose.

“That makes it look like the foreclosure numbers are going down, but in actuality the banks are not even starting foreclosure,” Carter said. “So there’s no number to track now.”


MIT Micro UAV Uses Lasers for Autonomous Navigation Indoors

October 18th, 2009


Iranian Commanders Assassinated

October 18th, 2009

Update: Iran Blames “Foreign Elements” for Attack on Guards

Via: Reuters:

Iran’s Revolutionary Guards accused “foreign elements” linked to the United States of involvement in Sunday’s attack that killed at least two senior commanders of the elite force, state television reported.

“Surely foreign elements, particularly those linked to the global arrogance, were involved in this attack,” a Guards statement quoted by television said. Iran often uses the term “global arrogance” to refer to the United States, its old foe.

—End Update—

Via: BBC:

Several top commanders in Iran’s elite Revolutionary Guard have been killed in a suicide bombing in the volatile south-east of the country.

Iranian state media say at least 20 people have died in the attack, in the province of Sistan-Baluchistan, and dozens more injured.

The commanders were in the region for a meeting with tribal leaders.

No group has claimed responsibility for the attack, which was condemned by Iran’s Parliamentary Speaker.

Iran has previously accused a Sunni resistance group, Jundallah, of terrorist activities in the province.

Sistan-Baluchistan is mainly made up of the Baluchi ethnic group who are Sunni Muslims, some of whom oppose Shia rule.

The deputy commander of the Guard’s ground force, General Noor Ali Shooshtari, and the Guard’s chief provincial commander, Rajab Ali Mohammadzadeh, were among the dead, Irna state news agency reported.

Parliamentary speaker Ali Larijani, speaking at an open session of parliament which was broadcast live of state radio, said: “We express our condolences for their martyrdom.

“The intention of the terrorists was definitely to disrupt security in Sistan-Baluchistan Province.”


India: Chartered U.S. Aircraft Forced to Land at Mumbai Airport; “Confusion About Its Call Sign”; 205 Marines Aboard

October 18th, 2009

Via: Times of India:

A US aircraft with 205 American marine commandos on board was on Sunday made to land at Mumbai airport for allegedly violating the Indian airspace.

The chartered plane was on its way from Fujiriah in UAE to Bangkok, an airport official said. The aircraft was using a civilian call sign, officials said.

“A US aircraft with 205 US Marines on board, on its way from Fujiriah to Bangkok, was forced to land in Mumbai while overflying Indian airspace as there was some confusion about its call sign,” a Mumbai airport spokesperson said.

The aircraft landed at Mumbai airport on Sunday morning and has been parked at a remote bay, the spokesperson said adding, all passengers are on board. Indian Air Force is looking into the issue, the spokesperson said.

Meanwhile, US authorities said they were in touch with relevant officials to resolve the issue after a US chartered aircraft was forced to land at Mumbai airport for alleged violation of the Indian airspace.

“We are aware of the situation, and are in touch with relevant officials to resolve this issue, which is a routine matter,” a US embassy spokesperson said.


Six Accused of Insider Trading After Wiretapping Investigation

October 18th, 2009

This case is a joke—not because the people involved aren’t crooks, but because the amounts of money involved are noise level.

The Feds plucked some low hanging douche bags and put them on display for the retail investor to see as part of a confidence trick.

“Behold, retail investor, we’re using ‘powerful investigative tools’ to bust the crooks who plague our markets. Go back to sleep. Dow 10,000. Green shoots.”

Via: Los Angeles Times:

Federal authorities shook the often secretive world of hedge funds with the arrests Friday of the billionaire founder of a major New York operation and five others on charges they engaged in extensive insider trading that allegedly netted more than $20 million in illicit profits.

After taking the unusual step of using wiretaps in the investigation, authorities accused Raj Rajaratnam, the founder of the $7-billion hedge fund Galleon Group, two executives at California companies and three others of multiple counts of conspiracy and securities fraud.

It’s the biggest criminal case involving hedge fund insider trading, said Preet Bharara, the U.S. attorney for Manhattan, and is believed to be the first time that court-authorized wiretaps have been used in insider-trading cases.

“This aggressive use of wiretaps is important. It shows that we are targeting white-collar insider trading rings with the same powerful investigative tools that have worked so successfully against the mob and drug cartels,” Bharara said.

…

According to the SEC, Goel gave Rajaratnam information about Intel’s quarterly earnings and about a joint venture with Clearwire Corp., a wireless broadband technology company. In exchange, Rajaratnam made $250,000 by trading shares of Hilton and PeopleSupport Inc. in Goel’s private account at Charles Schwab, the agency alleged.

The criminal case is based partly on information provided by an informant who had traded tips with Rajaratnam. The informant has pleaded guilty and agreed to wear a wire to record conversations with Rajaratnam.

Wiretaps are expensive and time-consuming, requiring FBI agents to listen to hours of phone calls.

“You don’t see wiretaps used frequently in securities investigations,” said Steve Peikin, the former head of the securities fraud unit at the Manhattan U.S. attorney’s office. “The use of wiretaps reflects that the government thinks this is serious conduct involving a significant amount of money.”

Among the conversations recorded was a July 2008 phone call in which Chiesi told Rajaratnam that Akamai Technologies Inc. in Cambridge, Mass., was going to lower its earnings projections.

“They’re gonna guide down,” Chiesi allegedly said. “I just got a call from my guy.”

In a call a month later, Chiesi pressed Moffat to keep quiet about information they were allegedly sharing about a reorganization at Advanced Micro.

“You put me in jail if you talk,” Chiesi said, adding, “I’m dead if this leaks. I really am . . . and my career is over. I’ll be like Martha [expletive] Stewart.”


Russia’s Leaders See Chinese Fascism as Template for Governance

October 18th, 2009

Via: New York Times:

Nearly two decades after the collapse of the Communist Party, Russia’s rulers have hit upon a model for future success: the Communist Party.

Or at least, the one that reigns next door.

Like an envious underachiever, Vladimir V. Putin’s party, United Russia, is increasingly examining how it can emulate the Chinese Communist Party, especially its skill in shepherding China through the financial crisis relatively unbowed.

United Russia’s leaders even convened a special meeting this month with senior Chinese Communist Party officials to hear firsthand how they wield power.

In truth, the Russians express no desire to return to Communism as a far-reaching Marxist-Leninist ideology, whether the Soviet version or the much attenuated one in Beijing. What they admire, it seems, is the Chinese ability to use a one-party system to keep tight control over the country while still driving significant economic growth.

It is a historical turnabout that resonates, given that the Chinese Communists were inspired by the Soviets, before the two sides had a lengthy rift.

For the Russians, what matters is the countries’ divergent paths in recent decades. They are acutely aware that even as Russia has endured many dark days in its transition to a market economy, China appears to have carried out a fairly similar shift more artfully.

The Russians also seem almost ashamed that their economy is highly dependent on oil, gas and other natural resources, as if Russia were a third world nation, while China excels at manufacturing products sought by the world.

“The accomplishments of China’s Communist Party in developing its government deserve the highest marks,” Aleksandr D. Zhukov, a deputy prime minister and senior Putin aide, declared at the meeting with Chinese officials on Oct. 9 in the border city of Suifenhe, China, northwest of Vladivostok. “The practical experience they have should be intensely studied.”

Mr. Zhukov invited President Hu Jintao, general secretary of the Chinese Communist Party, to United Russia’s convention, in November in St. Petersburg.

The meeting in Suifenhe capped several months of increased contacts between the political parties. In the spring, a high-level United Russia delegation visited Beijing for several days of talks, and United Russia announced that it would open an office in Beijing for its research arm.

The fascination with the Chinese Communist Party underscores United Russia’s lack of a core philosophy. The party has functioned largely as an arm of Mr. Putin’s authority, even campaigning on the slogan “Putin’s Plan.” Lately, it has championed “Russian Conservatism,” without detailing what exactly that is.

Indeed, whether United Russia’s effort to learn from the Chinese Communist Party is anything more than an intellectual exercise is an open question.

Whatever the motivation, Russia in recent years has started moving toward the Chinese model politically and economically.


U.S. Spends $400 Per Gallon of Gas in Afghanistan

October 17th, 2009

Via: The Hill:

The Pentagon pays an average of $400 to put a gallon of fuel into a combat vehicle or aircraft in Afghanistan.

The statistic is likely to play into the escalating debate in Congress over the cost of a war that entered its ninth year last week.

Pentagon officials have told the House Appropriations Defense Subcommittee a gallon of fuel costs the military about $400 by the time it arrives in the remote locations in Afghanistan where U.S. troops operate.

“It is a number that we were not aware of and it is worrisome,” Rep. John Murtha (D-Pa.), the chairman of the House Appropriations Defense panel, said in an interview with The Hill. “When I heard that figure from the Defense Department, we started looking into it.”

The Pentagon comptroller’s office provided the fuel statistic to the committee staff when it was asked for a breakdown of why every 1,000 troops deployed to Afghanistan costs $1 billion. The Obama administration uses this estimate in calculating the cost of sending more troops to Afghanistan.

The Obama administration is engaged in an internal debate over its future strategy in Afghanistan. Part of this debate concerns whether to increase the number of U.S. troops in that country.

The top U.S. general in Afghanistan, Stanley McChrystal, reportedly has requested that about 40,000 additional troops be sent.
Democrats in Congress are divided over whether to send more combat troops to stabilize Afghanistan in the face of waning public support for the war.

Any additional troops and operations likely will have to be paid for through a supplemental spending bill next year, something Murtha has said he already anticipates.

Afghanistan — with its lack of infrastructure, challenging geography and increased roadside bomb attacks — is a logistical nightmare for the U.S. military, according to congressional sources, and it is expensive to transport fuel and other supplies.

A landlocked country, Afghanistan has no seaports and a shortage of airports and navigable roads. The nearest port is in Karachi, Pakistan, where fuel for U.S. troops is shipped.

From there, commercial trucks transport the fuel through Pakistan and Afghanistan, sometimes changing carriers. Fuel is then transferred to storage locations in Afghanistan for movement within the country. Military transport is used to distribute fuel to forward operating bases. For many remote locations, this means fuel supplies must be provided by air.

One of the most expensive ways to supply fuel is by transporting it in bladders carried by helicopter; the amount that can be flown at one time can barely satisfy the need for fuel.

The cheapest way to transport fuel is usually by ship. Other reasonable methods to provide fuel are by rail and pipeline. The prices go up exponentially when aircraft are used, according to congressional sources.

The $400 per gallon reflects what in Pentagon parlance is known as the “fully burdened cost of fuel.”

“The fully burdened cost of fuel is a recognition that there are a lot of other factors that come into play,” said Mark Iden, the deputy director of operations at the Defense Energy Support Center (DESC), which provides fuel and energy to all U.S. military services worldwide.

The DESC provides one gallon of JP8 fuel, which is used for both aircraft and ground vehicles, at a standard price of $2.78, said Iden.


Thousands at Cow Palace Seeking Mortgage Help

October 17th, 2009

Via: San Francisco Chronicle:

The Cow Palace, site of rodeos and rock concerts, was transformed into a foreclosure-prevention fair on Friday that drew thousands of struggling borrowers hoping for help to make their mortgages more affordable.

Armed with sleeping bags or folding chairs, many spent a chilly night on the pavement outside the Daly City event center.

“I’m just trying to keep my house,” said Gerasim Karapetian of Yorba Linda (Orange County), as he waited in the bleachers to meet with a loan counselor. “I drove eight hours, got here at 2 a.m., and waited outside all night. The line wrapped around the whole parking lot.”

He was among more than 4,000 people from around California and neighboring states who converged on the Save the Dream tour organized by NACA, the Neighborhood Assistance Corp. of America, a Massachusetts nonprofit ( www.naca.com).

The five-day event continues through Tuesday. Similar NACA tours in Cleveland, Chicago, St. Louis, Atlanta, Phoenix, Los Angeles and Las Vegas drew huge crowds, reflecting the nationwide spread of the foreclosure crisis.

The Cow Palace arena’s concrete floor was a beehive of purposeful activity, set up with 300 tables where NACA counselors wearing bright red or yellow T-shirts met one-on-one with homeowners to enter their financial information into software for transmission to their lenders – who were across the hall. Banks sent dozens of representatives to review homeowners’ cases and in some cases modify their loans on the spot to make them more affordable.

Research Credit: ottilie


LATIN AMERICAN REGIONAL CURRENCY: SUCRE

October 17th, 2009

Via: AFP:

Leftist Latin American leaders agreed here on the creation of a regional currency, the Sucre, aimed at scaling back the use of the US dollar.

Nine countries of ALBA, a leftist bloc conceived by Venezuelan President Hugo Chavez, met in Bolivia where they vowed to press ahead with a new currency for intra-regional trade to replace the US dollar.

“The document is approved,” said Bolivia’s President Evo Morales, who is hosting the summit.

The new currency, dubbed the Sucre, would be rolled out beginning in 2010 in a non-paper form.

That move echoes the European Union’s introduction of the euro precursor, the ECU, an account unit designed to tie down stable exchange rates between member states before the national currencies were scraped.

ALBA’s member states are Venezuela, Bolivia, Cuba, Ecuador, Nicaragua, Honduras, Dominica, Saint Vincent and Antigua and Barbuda.

The currency, which was backed in April this year, is named after Jose Antonio de Sucre, who fought for independence from Spain alongside Venezuelan hero Simon Bolivar in the early 19th century.

The bloc also called for the replacement of the World Bank’s International Centre for Settlement of Investment Disputes, which arbitrates international contract disputes and has probed a slew of disputes involving ALBA members and western energy firms.

Most ALBA members have already withdrawn from the organization, with Ecuador announcing last July that it would pull out of the group.

On Friday Bolivian media reported the country intents to nationalize a electricity distribution firm owned by Spain’s Red de Electrica de Espana.

It is just the latest in a series of nationalizations in Venezuela, Ecuador and Bolivia.

In May, Venezuela nationalized 74 energy services firms operating in the oil-rich Maracaibo Lake region.

Bolivia’s Evo Morales has indicated that parts for his country’s energy and rail sectors will be nationalized.


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