Huge job losses set off recession alarms

By JEANNINE AVERSA, AP Economics Writer

WASHINGTON - It’s no longer a question of recession or not. Now it’s how deep and how long. Workers’ pink slips stacked ever higher in March as jittery employers slashed 80,000 jobs, the most in five years, and the national unemployment rate climbed to 5.1 percent. Job losses are nearing the staggering level of a quarter-million this year in just three months.

For the third month in a row total U.S. employment rolls shrank — often a telltale sign that the economy has jolted dangerously into reverse.

At the same time, the jobless rate rose three-tenths of a percentage point, a sharp increase usually associated with times of deep economic stress.

The grim picture described by the Labor Department on Friday provided stark evidence of just how much the jobs market has buckled under the weight of the housing, credit and financial crises. Businesses and jobseekers alike are feeling the pain.

“It is now very clear that the fat lady has sung for the economic expansion. The country has slipped into a recession,” said Stuart Hoffman, chief economist at PNC Financial Services Group. Indeed, there is widening agreement that the first recession since 2001 has arrived. Even Ben Bernanke, in a rare public utterance for a Federal Reserve chairman, used the “r” word, acknowledging for the first time this week that a recession was possible.

Job losses were widespread last month, hitting workers at factories, construction companies, retailers, banks, real-estate firms and even temporary-help agencies. Also mortgage brokers, hotels, computer design shops, accounting firms, architecture and engineering companies, legal services, airlines and other transportation as well as telecommunications companies.

Those cuts swamped employment gains elsewhere, including at hospitals and other heath-care sites, educational services, child day-care providers, bars and restaurants, insurance companies, museums, zoos and parks. And the government, which is almost always up.

In fact, private employers have shed jobs for four straight months, though December showed an overall gain for the economy because the government increase outweighed the private loss.

March’s losses were the most since the same month in 2003, when companies were still struggling to recover from the last recession. Adding to the angst: Revised figures showed losses were actually deeper than first reported for both January and February.

All told, the economy now has lost 232,000 jobs in the first three months of this year.

On Wall Street, investors took the weak employment figures in stride. The Dow Jones industrials lost just 16.61 points, while other indexes edged higher.

All the economy’s problems are forcing people and businesses to hunker down, crimping spending and hiring, a vicious cycle.

“Across the board, businesses have become very, very conservative,” said Joel Naroff, president of Naroff Economic Advisors. More downbeat about their own sales prospects because of cautious consumers, employers are cutting back. “It only makes sense for them to run leaner if we are going into a recession or already in one” as Naroff now believes.

The new employment figures were much weaker than economists were expecting. They were anticipating a drop of 50,000 payroll jobs.

Michael Gregory, senior economist at BMO Capital Markets Economics, said the employment report was “emitting recession signals.”

The national unemployment rate of 5.1 percent, relatively modest by historical standards, is nonetheless the highest since September 2005, following the devastating blows of the Gulf Coast hurricanes.

Some groups are feeling more of the strains from the economy’s current woes. The unemployment rate for Hispanics, for instance, jumped to 6.9 percent in March, the highest in over four years. The rate for blacks climbed to 9 percent, a two-month high.

With the public on edge, Congress, the White House and presidential contenders are scrambling to come up with their own relief plans to stem record-high home foreclosures and stabilize housing — even as they engage in a political blame game.

Democrats want more economic assistance, including extending unemployment benefits. The Bush administration has resisted, saying the government’s $168 billion stimulus package of tax rebates for people and tax breaks for businesses will be sufficient once it kicks in.

“We don’t like to see one job lost, let alone 80,000,” Commerce Secretary Carlos Gutierrez said in an interview with The Associated Press. “These are challenging times,” he said. Gutierrez was hopeful the economy would turn around in the second half of this year, given the relief efforts by the government and the Federal Reserve. “We’ll get through this.”

Democrats were skeptical of the administration’s efforts.

“Our economy is spiraling downward,” said presidential contender Hillary Rodham Clinton. “It is time for this administration to put ideology aside and get serious about stemming this crisis.”

Barack Obama said, “Instead of doing nothing for out-of-work Americans, we need a second stimulus that extends unemployment insurance and helps communities that have been hit hard by this recession.”

Republican John McCain said the unemployment news “underlines the need to focus on innovation, which grows the economy and creates an urgent need for effective worker retraining.”

Given the worsening employment situation, the Federal Reserve probably will lower a key interest rate, now at 2.25 percent, later this month.

The Fed has taken a number of extraordinary actions recently — slashing interest rates, providing financial backing to JP Morgan’s takeover of troubled Bear Stearns and opening an emergency lending program for big investment houses. All the actions were aimed at limiting damage to the national economy.

With the pace of hiring slowing, the number of unemployed people increased to 7.8 million in March.

Workers with jobs saw modest wage gains. Average hourly earnings for jobholders rose to $17.86 in March and are up 3.6 percent over the past 12 months. With lofty energy and food prices, workers may feel like their paychecks are shrinking. If the job market continues to falter, wage growth probably will slow, too, making consumers even less inclined to spend, which would further hurt the economy.

Many analysts believe the economy shrank in the first three months of this year and could still be ebbing now. The government will release its estimate of first-quarter economic growth later this month. Under one rough rule, if the economy contracts for six straight months it is considered in a recession. When a determination is made by a panel of experts about when a recession has started and ended — it is usually done well after the fact.

Bernanke and the Bush administration are hopeful the economy will improve in the second half of this year. Even so, Bernanke predicted this week that the unemployment rate would rise further. Some analysts say it could climb to 5.75 percent or higher this year.

Advises Hoffman: “If you’ve got a job, hang on to it the best you can.”

0 Comments : 04.5.08

Pirates seize French ship off Somalia

By JAMEY KEATEN, Associated Press Writer

PARIS - Pirates seized control of a French luxury yacht carrying 30 crew members Friday off the coast of Somalia, the French government and the ship’s owner said.

Attackers stormed the 288-foot “Le Ponant” as it returned without passengers from the Seychelles, in the Indian Ocean, toward the Mediterranean Sea, said officials with French maritime transport company CMA-CGM.

The corporate officials said they were in close contact with the French Foreign Ministry, which said in a statement that the boat and its crew had been attacked by pirates.

The ship was in the high seas in the Gulf of Aden, off the coast of Somalia in the Indian Ocean, the ministry said. At least some of the crew members are French, it said.

According to the company’s Web site, the three-mast boat features four decks, two restaurants, and indoor and outdoor luxury lounges. It can hold up to 64 passengers.

Pirates seized more than two dozen ships off the Somali coast last year.

The U.S. Navy has led international patrols to try to combat piracy in the region. Last year, the guided missile destroyer USS Porter opened fire to destroy pirate skiffs tied to a Japanese tanker.

Wracked by more than a decade of violence and anarchy, Somalia does not have its own navy, and a transitional government formed in 2004 with U.N. help has struggled to assert control.

The International Maritime Bureau, which tracks piracy, said in its annual report earlier this year that global pirate attacks rose 10 percent in 2007, marking the first increase in three years.

__

Associated Press Writer Pierre-Yves Roger in Paris contributed to this report.

0 Comments : 04.4.08

Iraq’s Sadr orders followers off streets

By Khaled Farhan

NAJAF, Iraq (Reuters) - Iraqi Shi’ite cleric Moqtada al-Sadr called on his followers on Sunday to stop battling government forces after a week of fighting in southern Iraq and Baghdad threatened to spiral out of control.

A crackdown on Shi’ite militants in the southern oil port of Basra has sparked an explosion of violence that risked undoing the past year’s improvements in Iraq’s security.

“Because of the religious responsibility, and to stop Iraqi blood being shed … we call for an end to armed appearances in Basra and all other provinces,” Sadr said in a statement given to journalists by his aides in the holy Shi’ite city of Najaf.

“Anyone carrying a weapon and targeting government institutions will not be one of us.”

U.S. forces have been drawn deeper into the fighting, which exposed a rift in Iraq’s Shi’ite majority between parties in Prime Minister Nuri al-Maliki’s government and Sadr’s populist street movement.

The government welcomed Sadr’s statement but said it would press on with its offensive in Basra.

“The operation in Basra will continue and will not stop until it achieves its goals. It is not targeting the Sadrists but criminals,” spokesman Ali al-Dabbagh told Reuters.

Scores of people have been killed in clashes in southern Iraq and in Shi’ite neighborhoods of the capital, where an indefinite curfew is now in place to contain further violence.

In his statement, Sadr also called for an end to “random arrests” of his followers and for them to benefit from an amnesty law passed by parliament in February aimed at freeing thousands of prisoners from Iraqi jails.

Maliki, in Basra to oversee the six-day-old operation, has ordered Shi’ite fighters there to lay down their arms and has extended a 72-hour deadline until April 8 for them to turn over heavy and medium weapons in return for cash.

Sadr aide Hazem al-Araji said Mehdi Army fighters would not hand over guns: “The weapons of the resistance will not be delivered to the Iraqi government,” he told journalists.

Araji also said there had been an agreement with the government to stop “random arrests,” an underlying grievance of Sadr’s followers that has fuelled this week’s violence.

Sadr’s followers have accused Maliki and the Supreme Islamic Iraqi Council, his most powerful Shi’ite ally in government, of trying to crush them ahead of provincial elections due in October in which they are expected to make a strong showing.

KEY TEST

Sadrists have complained that Iraqi and U.S. forces have exploited a truce called by the cleric last August to make indiscriminate arrests. The U.S. military says it only targets those who disobeyed Sadr’s ceasefire order.

A key test will be whether Sadr’s unruly militia, which he has sought to reorganize in recent months to root out rogue elements, will obey his order to stand down.

Shortly after Sadr’s statement, a salvo of rockets or mortars was fired at the Green Zone diplomatic and government compound in central Baghdad. The U.S. military has blamed rogue Mehdi Army militiamen for similar barrages in the past week.

But in the southern city of Nassiriya a Reuters reporter said clashes with security forces had stopped and Mehdi Army fighters were seen withdrawing from the streets.

This week’s fighting has placed the United States in a dilemma. While it wants Iraqi forces to take the lead on security, the Basra operation endangered Sadr’s truce, a key factor in the drop in violence in Iraq since last June.

The United States also risks being sucked into an intra- Shi’ite conflict at a time when it plans to pull out some 20,000 troops and decide soon on future troop levels. Democrats seeking to succeed President George W. Bush want speedier withdrawals.

U.S. forces said they killed at least 14 fighters in two helicopter missile strikes in Baghdad early on Sunday. They also said special forces have been operating alongside Iraqi units in Basra, where air strikes killed 22 fighters on Saturday.

The government offensive has so far had little success reclaiming the streets of Basra.

Shortly before Sadr’s statement, Reuters Television pictures showed masked Mehdi Army fighters brandishing machine guns and rocket-propelled grenade launchers outside a state television transmission station after setting fire to Iraqi troop carriers.

(Additional reporting by Waleed Ibrahim, Wisam Mohammed and Peter Graff in Baghdad; Writing by Ross Colvin; Editing by Giles Elgood)

0 Comments : 03.30.08

al-Sadr pulls fighters off Iraq streets

By QASSIM ABDUL-ZAHRA, Associated Press Writer
BAGHDAD - Shiite cleric Muqtada al-Sadr said Sunday that he was pulling his fighters off the streets nationwide and called on the government to stop raids against his followers and free them from prison.

The Iraqi government quickly welcomed al-Sadr’s apparent move to resolve a widening conflict with his movement, sparked Tuesday by operations against his backers in the oil-rich southern city of Basra.

Al-Sadr’s nine-point statement was issued by his headquarters in the holy city of Najaf and broadcast through loudspeakers on Shiite mosques. It said the first point was: “taking gunmen off the streets in Basra and elsewhere.”

He also demanded that the Iraqi government stop “haphazard raids” and release security detainees who haven’t been charged, two issues cited by his movement as reasons for fighting the government.

Followers handed out sweets in Baghdad’s main Mahdi Army militia stronghold of Sadr City.

Government spokesman Ali al-Dabbagh called the statement “positive and responsible.” But he also warned in a telephone interview broadcast on Iraqi state TV. that security forces would continue to target those who don’t follow the order.

“We expect a wide response to this call,” he said. “After this announcement, anybody who targets the government and its institutions will be regarded … as outlaws.”

Scattered firing could be heard in central Baghdad hours after al-Sadr’s statement was released, and rockets or mortars were fired toward the U.S.-protected Green Zone.

At least seven Iraqis were killed and 21 wounded when two rounds apparently fell short, striking houses in the commercial district of Karradah, police said.

A U.S. public address system in the Green Zone warned people to “duck and cover” and to stay away from windows.

Iraqi security forces have been facing fierce resistance to their crackdown on militia violence in the southern city of Basra.

Dozens of Shiite gunmen stormed a state TV facility in central Basra before al-Sadr’s declaration Sunday, forcing Iraqi troops guarding the building to flee and setting armored vehicles on fire.

One of al-Maliki’s top security officials was killed in a mortar attack against the palace that houses the military operations center, officials said.

The prime minister’s Dawa party issued a statement of condolences identifying the slain official as Salim Qassim, known by his nickname Abu Laith al-Kadhimi.

The strength of the resistance to the week-old offensive has taken the U.S.-backed government by surprise, forcing it to come up with a new tactical plan targeting several Mahdi Army strongholds, a government official said.

The official, who was in Basra but spoke on condition of anonymity because he wasn’t authorized to release the information, said Prime Minister Nouri al-Maliki also had brought in reinforcements and appealed to local tribal leaders to help secure the area.

The prime minister, himself a Shiite, has called the fight “a decisive and final battle” and vowed to remain in Basra until government forces wrest control from militias, including the Mahdi Army that is loyal to radical cleric Muqtada al-Sadr.

But al-Maliki also acknowledged Saturday that he may have miscalculated by failing to foresee the strong backlash the offensive would provoke in Baghdad and other cities where Shiite militias wield power.

Hundreds of militants, soldiers and civilians have been killed as fighting spread to Baghdad neighborhoods and other southern cities.

Several clashes have involved U.S. forces and the U.S. military launched airstrikes in Basra. The military said 16 enemy fighters were killed in when an AC-130 gunship strafed heavily armed militants attacking Iraqi troops during clashes on Saturday.

U.S. and Iraqi troops also repelled an attack against American special forces Saturday in Suwayrah, a Shiite militia stronghold 25 miles south of Baghdad, killing 13 enemy fighters, the military said in a statement.

Iraqi police said three militants were killed and 21 detained when clashes resumed there on Sunday.

In other violence, a suicide car bomber killed five U.S.-backed Sunni fighters and wounded eight other people near the oil hub of Beiji, 155 miles north of Baghdad.

Gunmen also killed five policemen in Duluiyah, a Sunni-dominated area 45 miles north of Baghdad.

The U.S. military said separately that American and Iraqi troops unearthed 14 badly decomposed bodies in a mass grave on Saturday in Muqdadiyah, northeast of Baghdad. It was the second such find since Thursday, when 37 bodies were found.

___

Associated Press writers Hamid Ahmed and Saad Abdul-Kadir contributed to this article.

0 Comments : 03.30.08

The man who made lists to fend off depression

By Arthur Spiegelman
LOS ANGELES (Reuters) - His mother suffered dark depressions and tried to dominate his life. His sister and daughter had severe mental problems, his father and wife died young and a beloved uncle committed suicide in his arms.

So what did Peter Mark Roget, the creator of Roget’s Thesaurus, do to handle all the pain, grief, sorrow, affliction, woe, bitterness, unhappiness and misery in a life that lasted over 90 years?

He made lists.

The 19th century British scientist made lists of words, creating synonyms for all occasions that ultimately helped make life easier for term paper writers, crossword puzzle lovers and anyone looking for the answer to the age-old question: “What’s another word for …”

And according to a new biography, making his lists saved Roget’s life and by keeping him from succumbing to the depression and misery of those around him.

“As a boy he stumbled upon a remarkable discovery — that compiling lists of words could provide solace, no matter what misfortunes may befall him,” says Joshua Kendall author of the just published “The Man Who Made Lists” (Putnam, $25.95), a study of Roget’s life (1779 to 1869) based on diaries, letters and even an autobiography composed of lists.

Kendall, in a recent interview, said Roget cared more for words than people and that making lists on the scale that he did was obsessive-compulsive behavior that helped him fend off the demons that terrorized his distinguished British family.

Madness was a regular guest in Roget’s home, Kendall said. One of his grandmothers either had schizophrenia or severe depression, Roget’s mother lapsed into paranoia, often accusing the servants of plotting against her. Both his sister and his daughter suffered depression and mental problems.

Then there was the case of Roget’s uncle, British member of Parliament Sir Samuel Romilly, known for his opposition to the slave trade and for his support of civil liberties. He slit his own throat while Roget tried to get the razor out of his hands.

Unlike a Thesaurus, no one understood Uncle Sam’s last words: “My dear….I wish…”

Indeed, to quote most of the Thesaurus listing for pain, Roget’s was a life filled with grief, pain, suffering, distress, affliction, woe, bitterness, heartache, unhappiness, infelicity and misery.

NOT WHOLLY EVIL

Kendall said, “The lists gave him an alternative world to which to repair.” Many writers have declared their debt to Roget, including Peter Pan’s creator, J.M. Barrie. In homage, he put a copy of the Thesaurus in Captain Hook’s cabin so he could declare: “The man is not wholly evil — he has a Thesaurus in his cabin.

The 20th century poet Sylvia Plath called herself “Roget’s Strumpet” to pay respects for all the word choices he gave her.

But the British journalist Simon Winchester holds Roget responsible for helping to dumb down Western culture because his work allows a writer to look it up rather than think it out.

Roget made his first attempt at a Thesaurus at age 26 but put aside the effort and did not publish his book until 1852 when he was in his 70s and retired. He then kept busy with it for the rest of his life.

It became an instant hit in Britain but did not sell that well when an American edition was published two years later. But when Americans went crazy for crossword puzzles in the 1920s, the Thesaurus assumed its place on reference shelves.

Kendall’s book is written in a style that he calls “narrative non-fiction” which contains a lot of dialogue and descriptions of how Roget and his friends feel and think, all, he says, based on source material.

“I did a lot of work to stitch together a narrative,” he said, adding that all the scenes in the book are based on actual events.

0 Comments : 03.28.08

Next Page »
Games Play
Games Play