Wall Street sinks as "fiscal cliff" fears escalate

NEW YORK (Reuters) - U.S. stocks slid on Friday after a Republican plan to avoid the "fiscal cliff" failed to gain support on Thursday night, shrinking hopes that a deal would be reached before the new year.


Trading was volatile as investors lost confidence in the prospect of a deal between the White House and Republicans. Lower volume ahead of the Christmas and New Year's holidays exaggerated market swings. The CBOE Volatility Index <.vix> or VIX, the market's favored anxiety measure, rose 5 percent to 18.56, but was off the day's high.


Republican House Speaker John Boehner failed to garner enough votes even from his own party to pass his "Plan B" tax bill late on Thursday. This was the latest setback in negotiations to avoid $600 billion in tax hikes and spending cuts that some say could tip the U.S. economy into recession.


"The failure with Plan B was disappointing, if not terribly surprising, but now there's a real lack of clarity about what will happen, and markets hate that," said Mike Hennessy, managing director of investments for Morgan Creek in Chapel Hill, North Carolina.


The day's biggest loser on the New York Stock Exchange was Herbalife , which dropped for an eighth straight session. Investor Bill Ackman recently ramped up his campaign against the company. Herbalife skidded 19 percent to $27.25 and has lost more than 35 percent this week.


Plan B, which called for tax increases on those who earn $1 million or more a year, was not going to pass the Democratic-led Senate or win acceptance from the White House anyway. But it exposed the reality that it will be difficult to get Republican support for the more expansive tax increases that President Barack Obama has urged.


Still, the declines of about 1 percent in the three major U.S. stock indexes suggest that investors do not believe the economy will be unduly damaged by the absence of a deal, said Mark Lehmann, president of JMP Securities, in San Francisco.


"You could have easily woken up today and seen the market down 300 or 400 points, and everyone would have said, 'That's telling you this is really dire,'" Lehmann said.


"I think if you get into mid-January and (the talks) keep going like this, you get worried, but I don't think we're going to get there."


Banking shares, which outperform in times of economic expansion and have led the market on signs of progress with resolving the fiscal impasse, led declines. Citigroup Inc fell 2 percent to $39.35, while Bank of America slid 2.3 percent to $11.25. The KBW Banks index <.bkx> lost 1.4 percent.


The Dow Jones industrial average <.dji> dropped 142.29 points, or 1.07 percent, to 13,169.43. The Standard & Poor's 500 Index <.spx> dropped 15.69 points, or 1.09 percent, to 1,428.00. The Nasdaq Composite Index <.ixic> dropped 39.23 points, or 1.29 percent, to 3,011.15.


Even with the day's declines, the S&P 500 is up nearly 1 percent for the week and about 13 percent for the year.


The day's round of data indicated the economy was surprisingly resilient in November; consumer spending rose by the most in three years and a gauge of business investment jumped.


But separate data showed consumer sentiment slumped in December. The S&P Retail Index <.spxrt> fell 1.4 percent.


U.S.-listed shares of Research in Motion sank 21 percent to $11.09 after the Canadian company, known as the BlackBerry maker, reported its first-ever decline in its subscriber numbers on Thursday alongside a new fee structure for its high-margin services segment.


(Additional reporting by Ryan Vlastelica and Leah Schnurr; Editing by Bernadette Baum and Jan Paschal)



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Syrian rebels fight for strategic town in Hama province


BEIRUT (Reuters) - Rebels began to push into a strategic town in Syria's central Hama province on Thursday and laid siege to at least one town dominated by President Bashar al-Assad's minority sect, activists said.


The operation risks inflaming already raw sectarian tensions as the 21-month-old revolt against four decades of Assad family rule - during which the president's Alawite sect has dominated leadership of the Sunni Muslim majority - rumbles on.


Opposition sources said rebels had won some territory in the strategic southern town of Morek and were surrounding the Alawite town of al-Tleisia.


They were also planning to take the town of Maan, arguing that the army was present there and in al-Tleisia and was hindering their advance on nearby Morek, a town on the highway that runs from Damascus north to Aleppo, Syria's largest city and another battleground in the conflict.


"The rockets are being fired from there, they are being fired from Maan and al-Tleisia, we have taken two checkpoints in the southern town of Morek. If we want to control it then we need to take Maan," said a rebel captain in Hama rural area, who asked not to be named.


Activists said heavy army shelling had targeted the town of Halfaya, captured by rebels two days earlier. Seven people were killed, 30 were wounded, and dozens of homes were destroyed, said activist Safi al-Hamawi.


Hama is home to dozens of Alawite and Christian villages among Sunni towns, and activists said it may be necessary to lay siege to many minority areas to seize Morek. Rebels want to capture Morek to cut off army supply lines into northern Idlib, a province on the northern border with Turkey where rebels hold swathes of territory.


From an offshoot of Shi'ite Islam, Alawites have largely stood behind Assad, many out of fear of revenge attacks. Christians and some other minorities have claimed neutrality, with a few joining the rebels and a more sizeable portion of them supporting the government out of fear of hardline Islamism that has taken root in some rebel groups.


Activists in Hama said rebels were also surrounding the Christian town of al-Suqeilabiya and might enter the city to take out army positions as well as those of "shabbiha" - pro-Assad militias, the bulk of whom are usually Alawite but can also include Christians and even Sunnis.


"We have been in touch with Christian opposition activists in al-Suqeilabiya and we have told them to stay downstairs or on the lowest floor of their building as possible, and not to go outside. The rebels have promised not to hurt anyone who stays at home," said activist Mousab al-Hamdee, speaking by Skype.


He said he was optimistic that potential sectarian tensions with Christians could be resolved but that Sunni-Alawite strife may be harder to suppress.


SECTARIAN FEARS


U.N. human rights investigators said on Thursday that Syria's conflict was becoming more "overtly sectarian", with more civilians seeking to arm themselves and foreign fighters - mostly Sunnis - flocking in from 29 countries.


"They come from all over, Europe and America, and especially the neighboring countries," said Karen Abuzayd, one of the U.N. investigators, told a news conference in Brussels.


Deeper sectarian divisions may diminish prospects for post-conflict reconciliation even if Assad is ousted, and the influx of foreigners raises the risk of fighting spilling into neighboring countries riven by similar communal fault lines.


Some activists privately voiced concerns of sectarian violence, but the rebel commander in Hama said fighters had been told "violations" would not be tolerated and argued that the move to attack the towns was purely strategic.


"If we are fired at from a Sunni village that is loyal to the regime we go in and we liberate it and clean it," he said. "So should we not do the same when it comes to an Alawite village just because there is a fear of an all-out sectarian war? We respond to the source of fire."


President Vladimir Putin of Russia, Assad's main ally and arms supplier, warned that any solution to the conflict must ensure government and rebel forces do not merely swap roles and fight on forever. It appeared to be his first direct comment on the possibility of a post-Assad Syria.


The West and some Arab states accuse Russia of shielding Assad after Moscow blocked three U.N. Security Council resolutions intended to increase pressure on Damascus to end the violence, which has killed more than 40,000 people. Putin said the Syrian people would ultimately decide their own fate.


Assad's forces have been hitting back at rebel advances with heavy shelling, particularly along the eastern ring of suburbs outside Damascus, where rebels are dominant.


A Syrian security source said the army was planning heavy offensives in northern and central Syria to stem rebel advances, but there was no clear sign of such operations yet.


Rebels seized the Palestinian refugee district of Yarmouk earlier this week, which put them within 3 km (2 miles) of downtown Damascus. Heavy shelling and fighting forced thousands of Palestinian and Syrian residents to flee the Yarmouk area.


Rebels said on Thursday they had negotiated to put the camp - actually a densely packed urban district - back into the hands of pro-opposition Palestinian fighters. There are some 500,000 Palestinian refugees and their descendants living in Syria, and they have been divided by the uprising.


Palestinian factions, some backed by the government and others by the rebels, had begun fighting last week, a development that allowed Syrian insurgents to take the camp.


A resident in Damascus said dozens of families were returning to the camp but that the army had erected checkpoints. Many families were still hesitant to return.


LEBANON BORDER POST TAKEN


Elsewhere, Syrian insurgents took over an isolated border post on the western frontier with Lebanon earlier this week, local residents told Reuters on Thursday.


The rebels already hold much of the terrain along Syria's northern and eastern borders with Turkey and Iraq respectively.


They said around 20 rebels from the Qadissiyah Brigade overran the post at Rankus, which is linked by road to the remote Lebanese village of Tufail.


Video footage downloaded on the Internet on Thursday, dated December 16, showed a handful of fighters dressed in khaki fatigues and wielding rifles as they kicked down a stone barricade around a small, single-storey army checkpoint.


Syrian Interior Minister Ibrahim al-Shaar arrived in Lebanon on Wednesday for treatment of wounds sustained in a bomb attack on his ministry in Damascus a week ago.


Lebanese medical sources said Shaar had shrapnel wounds in his shoulder, stomach and legs but they were not critical.


The Syrian opposition has tried to peel off defectors from the government as well as from the army, though only a handful of high-ranking officials have abandoned Assad.


The conflict has divided many Syrian families. Security forces on Thursday arrested an opposition activist who is also the relative of Vice President Farouq al-Sharaa, the Syrian Observatory said. The man was arrested along with five other activists who are considered pacifists, it said.


Sharaa, a Sunni Muslim who has few powers in Assad's Alawite-dominated power structure, said earlier this week that neither side could win the war in Syria. He called for the formation of a national unity government.


(Reporting by Erika Solomon; Editing by Andrew Osborn)



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Shiri Appleby Expecting Her First Child




Celebrity Baby Blog





12/20/2012 at 03:00 PM ET



Shiri Appleby Expecting First Child
Charley Gallay/Getty


Shiri Appleby is going to be a mom.


The actress and fiancé Jon Shook are expecting their first child this spring, PEOPLE confirms.


“Thank you for all the well wishes,” Appleby, 34, says. “We can’t wait to meet our little Baby Shook!”


Shook, a chef and owner at Los Angeles restaurant Animal, proposed to the actress in Italy in July.


Appleby, who recently had guest-starring roles on Chicago Fire and Franklin & Bash, is best known for playing Liz on Roswell.


She’ll next appear on the second season of Girls as a new love interest for Adam.


– Sarah Michaud


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AP IMPACT: Steroids loom in major-college football


WASHINGTON (AP) — With steroids easy to buy, testing weak and punishments inconsistent, college football players are packing on significant weight — 30 pounds or more in a single year, sometimes — without drawing much attention from their schools or the NCAA in a sport that earns tens of billions of dollars for teams.


Rules vary so widely that, on any given game day, a team with a strict no-steroid policy can face a team whose players have repeatedly tested positive.


An investigation by The Associated Press — based on interviews with players, testers, dealers and experts and an analysis of weight records for more than 61,000 players — revealed that while those running the multibillion-dollar sport say they believe the problem is under control, that control is hardly evident.


The sport's near-zero rate of positive steroids tests isn't an accurate gauge among college athletes. Random tests provide weak deterrence and, by design, fail to catch every player using steroids. Colleges also are reluctant to spend money on expensive steroid testing when cheaper ones for drugs like marijuana allow them to say they're doing everything they can to keep drugs out of football.


"It's nothing like what's going on in reality," said Don Catlin, an anti-doping pioneer who spent years conducting the NCAA's laboratory tests at UCLA. He became so frustrated with the college system that it was part of the reason he left the testing industry to focus on anti-doping research.


___


EDITOR'S NOTE — Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the first of a two-part series.


___


While other major sports have been beset by revelations of steroid use, college football has operated with barely a whiff of scandal. Between 1996 and 2010 — the era of Barry Bonds, Mark McGwire, Marion Jones and Lance Armstrong — the failure rate for NCAA steroid tests fell even closer to zero from an already low rate of less than 1 percent.


The AP's investigation, drawing upon more than a decade of official rosters from all 120 Football Bowl Subdivision teams, found thousands of players quickly putting on significant weight, even more than their fellow players. The information compiled by the AP included players who appeared for multiple years on the same teams.


For decades, scientific studies have shown that anabolic steroid use leads to an increase in body weight. Weight gain alone doesn't prove steroid use, but very rapid weight gain is one factor that would be deemed suspicious, said Kathy Turpin, senior director of sport drug testing for the National Center for Drug Free Sport, which conducts tests for the NCAA and more than 300 schools.


Yet the NCAA has never studied weight gain or considered it in regard to its steroid testing policies, said Mary Wilfert, the NCAA's associate director of health and safety.


The NCAA attributes the decline in positive tests to its year-round drug testing program, combined with anti-drug education and testing conducted by schools.


The AP's analysis found that, regardless of school, conference and won-loss record, many players gained weight at exceptional rates compared with their fellow athletes and while accounting for their heights.


Adding more than 20 or 25 pounds of lean muscle in a year is nearly impossible through diet and exercise alone, said Dan Benardot, director of the Laboratory for Elite Athlete Performance at Georgia State University.


In nearly all the rarest cases of weight gain in the AP study, players were offensive or defensive linemen, hulking giants who tower above 6-foot-3 and weigh 300 pounds or more. Four of those players interviewed by the AP said that they never used steroids and gained weight through dramatic increases in eating, up to six meals a day. Two said they were aware of other players using steroids.


"I ate 5-6 times a day," said Clint Oldenburg, who played for Colorado State starting in 2002 and for five years in the NFL. Oldenburg's weight increased over four years from 212 to 290.


Oldenburg told the AP he was surprised at the scope of steroid use in college football, even in Colorado State's locker room. "There were a lot of guys even on my team that were using." He declined to identify any of them.


The AP found more than 4,700 players — or about 7 percent of all players — who gained more than 20 pounds overall in a single year. It was common for the athletes to gain 10, 15 and up to 20 pounds in their first year under a rigorous regimen of weightlifting and diet. Others gained 25, 35 and 40 pounds in a season. In roughly 100 cases, players packed on as much 80 pounds in a single year.


In at least 11 instances, players that AP identified as packing on significant weight in college went on to fail NFL drug tests. But pro football's confidentiality rules make it impossible to know for certain which drugs were used and how many others failed tests that never became public.


Even though testers consider rapid weight gain suspicious, in practice it doesn't result in testing. Ben Lamaak, who arrived at Iowa State in 2006, said he weighed 225 pounds in high school. He graduated as a 320-pound offensive lineman and said he did it all naturally.


"I was just a young kid at that time, and I was still growing into my body," he said. "It really wasn't that hard for me to gain the weight. I love to eat."


In addition to random drug testing, Iowa State is one of many schools that have "reasonable suspicion" testing. That means players can be tested when their behavior or physical symptoms suggest drug use. Despite gaining 81 pounds in a year, Lamaak said he was never singled out for testing.


The associate athletics director for athletic training at Iowa State, Mark Coberley, said coaches and trainers use body composition, strength data and other factors to spot suspected cheaters. Lamaak, he said, was not suspicious because he gained a lot of "non-lean" weight.


But looking solely at the most significant weight gainers also ignores players like Bryan Maneafaiga.


In the summer of 2004, Bryan Maneafaiga was an undersized 180-pound running back trying to make the University of Hawaii football team. Twice — once in pre-season and once in the fall — he failed school drug tests, showing up positive for marijuana use but not steroids.


He'd started injecting stanozolol, a steroid, in the summer to help bulk up to a roster weight of 200 pounds. Once on the team, he'd occasionally inject the milky liquid into his buttocks the day before games.


"Food and good training will only get you so far," he told the AP recently.


Maneafaiga's former coach, June Jones, said it was news to him that one of his players had used steroids. Jones, who now coaches at Southern Methodist University, believes the NCAA does a good job rooting out steroid use.


On paper, college football has a strong drug policy. The NCAA conducts random, unannounced drug testing and the penalties for failure are severe. Players lose an entire year of eligibility after a first positive test. A second offense means permanent ineligibility for sports.


In practice, though, the NCAA's roughly 11,000 annual tests amount to a fraction of all athletes in Division I and II schools. Exactly how many tests are conducted each year on football players is unclear because the NCAA hasn't published its data for two years. And when it did, it periodically changed the formats, making it impossible to compare one year of football to the next.


Even when players are tested by the NCAA, experts like Catlin say it's easy enough to anticipate the test and develop a doping routine that results in a clean test by the time it occurs. NCAA rules say players can be notified up to two days in advance of a test, which Catlin says is plenty of time to beat a test if players have designed the right doping regimen. By comparison, Olympic athletes are given no notice.


Most schools that use Drug Free Sport do not test for anabolic steroids, Turpin said. Some are worried about the cost. Others don't think they have a problem. And others believe that since the NCAA tests for steroids their money is best spent testing for street drugs, she said.


Doping is a bigger deal at some schools than others.


At Notre Dame and Alabama, the teams that will soon compete for the national championship, players don't automatically miss games for testing positive for steroids. At Alabama, coaches have wide discretion. Notre Dame's student-athlete handbook says a player who fails a test can return to the field once the steroids are out of his system.


The University of North Carolina kicks players off the team after a single positive test for steroids. Auburn's student-athlete handbook calls for a half-season suspension for any athlete caught using performance-enhancing drugs.


At UCLA, home of the laboratory that for years set the standard for cutting-edge steroid testing, athletes can fail three drug tests before being suspended. At Bowling Green, testing is voluntary.


At the University of Maryland, students must get counseling after testing positive, but school officials are prohibited from disciplining first-time steroid users.


Only about half the student athletes in a 2009 NCAA survey said they believed school testing deterred drug use. As an association of colleges and universities, the NCAA could not unilaterally force schools to institute uniform testing policies and sanctions, Wilfert said.


"We can't tell them what to do, but if went through a membership process where they determined that this is what should be done, then it could happen," she said.


___


Associated Press writers Ryan Foley in Cedar Rapids, Iowa; David Brandt in Jackson, Miss.; David Skretta in Lawrence, Kan.; Don Thompson in Sacramento, Calif., and Alexa Olesen in Shanghai, China, and researchers Susan James in New York and Monika Mathur in Washington contributed to this report.


___


Contact the Washington investigative team at DCinvestigations (at) ap.org.


Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the first of a two-part series.


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Wall Street advances on 'fiscal cliff' talks

NEW YORK (Reuters) - U.S. stocks edged up in a thinly traded session on Thursday after Republican House Speaker John Boehner pledged to keep working on a solution to the "fiscal cliff" while still criticizing President Barack Obama's approach to budget talks.


NYSE Euronext was the day's biggest gainer, surging 33.5 percent to $32.12 as the S&P 500's top percentage gainer, after IntercontinentalExchange Inc said it would buy the operator of the New York Stock Exchange for $8.2 billion.


ICE shares were last down 0.7 percent at $127.40.


Republicans in the U.S. House of Representatives pushed ahead with their own fiscal plan, complicating negotiations with the White House over a way to avoid a series of steep tax hikes and spending cuts due in early 2013. Obama has vowed to veto the plan.


Investors have hoped for an agreement soon between policymakers, but progress has been slow. Boehner said he expected to continue to work with Obama to find a solution, but repeated his charge that Obama and the Democrats were trying to "slow walk" the country over the fiscal cliff.


"Speaker Boehner went on the air and basically told us he doesn't like what the president's doing or not doing, and the markets rallied on that, which was kind of weird. But we have very light volume," said Stephen Guilfoyle, a trader at Meridian Equity Partners in New York.


About 4 billion shares had changed hands on major U.S. exchanges, a typically light day of trading for late December.


The Dow Jones industrial average <.dji> advanced 27.94 points, or 0.21 percent, to 13,279.91. The Standard & Poor's 500 Index <.spx> gained 5.51 points, or 0.38 percent, to 1,441.32. The Nasdaq Composite Index <.ixic> rose 5.44 points, or 0.18 percent, to 3,049.80.


Stocks rallied earlier in the week on signs of progress in the fiscal cliff negotiations, but with the S&P 500 up 14.6 percent so far this year, investors are taking the opportunity to engage in some hedging as 2012 comes to a close.


Herbalife lost 10.2 percent to $33.54 following news that hedge fund manager Bill Ackman was betting against the company as part of his big end-of-the-year short.


The S&P Financial Index <.gspf> gained 1.04 percent.


The U.S. economy grew 3.1 percent in the third quarter, faster than previously estimated, while the number of Americans filing new claims for jobless benefits rose more than expected in the latest week.


Existing home sales jumped 5.9 percent in November, more than expected, and by the fastest monthly pace in three years. An index of housing shares <.hgx> gained 0.43 percent.


But KB Home slid 7 percent to $15.49 as the company reported higher homebuilding costs and expenses in the fourth quarter.


(Additional reporting by Ryan Vlastelica and Leah Schnurr; Editing by Bernadette Baum, Nick Zieminski and Jan Paschal)



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Clinton not responsible for Benghazi shortcomings: inquiry


WASHINGTON (Reuters) - The leaders of an official inquiry into the fatal attack on a U.S. mission in Benghazi, Libya, did not find Secretary of State Hillary Clinton responsible for security lapses even as they outlined widespread failings within her department.


The unclassified version of the report, released late Tuesday by the State Department, concluded that the mission was completely unprepared to deal with a September 11 attack that killed U.S. Ambassador Chris Stevens and three other Americans.


Responsibility for security shortcomings in Benghazi lay farther down the State Department command chain, said Retired Ambassador Thomas Pickering, who lead the inquiry.


"We fixed (responsibility) at the assistant secretary level, which is, in our view, the appropriate place to look for where the decision-making in fact takes place, where - if you like - the rubber hits the road," Pickering said after closed-door meetings with congressional committees.


A deputy assistant secretary in the Bureau of Near Eastern affairs resigned after the report, a Capitol Hill source said. Media outlets reported other resignations, including Eric Boswell, the assistant secretary of state for diplomatic security, one of his deputies and another official.


State Department officials declined to comment.


The report by the Accountability Review Board probing the attack and comments by its two lead authors suggested that Clinton, who accepted responsibility for the incident, would not be held personally culpable.


"The secretary of state has been very clear about taking responsibility here, it was from my perspective not reasonable in terms of her having a specific level of knowledge," said retired Admiral Michael Mullen, the former chairman of the U.S. Joint Chiefs of Staff and the other inquiry leader.


Pickering and Mullen spoke to the media after briefing members of the House Foreign Affairs Committee and Senate Foreign Relations Committee behind closed doors on classified elements of their report.


Clinton had been expected to appear at an open hearing on Benghazi on Thursday, but is recuperating after suffering a concussion, dehydration and a stomach bug last week and will instead be represented by her top two deputies.


"GROSSLY INADEQUATE"


The unclassified version of the report cited "leadership and management" deficiencies, poor coordination among officials and "real confusion" in Washington and in the field over who had the authority to make decisions on policy and security concerns.


The scathing report could tarnish Clinton's four-year tenure as secretary of state, which has seen her consistently rated as the most popular member of President Barack Obama's Cabinet.


Clinton, who intends to step down in January, said in a letter accompanying the review that she would adopt all of its recommendations, which include stepping up security staffing and requesting more money to fortify U.S. facilities.


The National Defense Authorization Act for 2013, which is expected to go to Congress for final approval this week, includes directing the Pentagon increase the Marine Corps presence at diplomatic facilities by up to 1,000 Marines.


Some Capitol Hill Republicans who had criticized the Obama administration's handling of the Benghazi attacks said they were impressed by the report.


"It was very thorough," said Senator Johnny Isakson. Another Republican, Senator John Barrasso said: "It was very, very critical of major failures at the State Department at very high levels." Both spoke after the closed-door briefing.


But Republicans continued to call for Clinton to testify as soon as she is able.


Senator Bob Corker, who will be the top Republican on the Senate Foreign Relations Committee when the new Congress is seated early next year, said Clinton should testify about Benghazi before her replacement is confirmed by the Senate.


"I do think it's imperative for all concerned that she testify in an open session prior to any changing of the regime," Corker said.


Republicans have focused much of their firepower on U.S. Ambassador to the United Nations Susan Rice, who appeared on television talk shows after the attack and suggested it was the result of a spontaneous protest rather than a premeditated attack.


The report concluded that there was no such protest.


Rice, widely seen as President Barack Obama's top pick for the State job, withdrew her name from consideration last week.


(Additional reporting by Toby Zakaria; Editing by Doina Chiacu)



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Taylor Swift's Cat Really, Really Likes Her New Song















UPDATED
12/19/2012 at 03:00 PM EST

Originally published 12/19/2012 at 02:00 PM EST



Taylor Swift's cat Meredith is no trouble at all – just a fan.

"What's on the radio right now?" the Red singer asks her feline friend as her new single, "I Knew You Were Trouble," plays in the background of a video she posted Tuesday (watch above). "Is it my song?"

Her response: Meow! (We'll interpret that as an enthusiastic yes.)

"Isn't that exciting?" Swift asks to a seemingly understanding Meredith, whom she took home last November. Another meow. "Good talk."

Not that Meredith's just a fan. The cat, a regular fixture on Swift's Twitter feed, has a following of her own. "It's a crazy situation," she said in October. "Cause it's a cat."

Although we're guessing Meredith has a little competition now that her mom's dating One Direction singer Harry Styles, it's clear who the real fan is here. "She is awesome," Swift previously said. "She's, like, the most adorable cat in the world."

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Experts: Kids are resilient in coping with trauma


WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.


Last week's school shooting in Connecticut raises the question: What will be the psychological fallout for the children who survived?


For people of any age, regaining a sense of security after surviving violence can take a long time. They're at risk for lingering anxiety, depression, post-traumatic stress disorder.


But after the grief and fear fades, psychiatrists say most of Newtown's young survivors probably will cope without long-term emotional problems.


"Kids do tend to be highly resilient," said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.


And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.


"That's the way they gain mastery over a situation that's overwhelming," Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.


Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they're dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.


Among the challenges will be spotting which children are struggling enough that they may need professional help.


Newtown's tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher's body to escape to safety.


There's little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.


Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.


Violence isn't all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don't become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.


In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.


Friday's shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.


But those who weren't as close to the danger may be at extra risk, too, if this wasn't their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.


Right after a traumatic event, it's normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.


To help, parents will have to follow their child's lead. Grilling a child about a traumatic experience isn't good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.


Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it's difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn't in pain or lonely but also isn't coming back, Brymer said.


When problem behaviors or signs of distress continue for several weeks, Brymer says it's time for an evaluation by a counselor or pediatrician.


Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found "the power of the support of the people who went through it with you is huge," she said.


Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown's Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.


Finally, avoid watching TV coverage of the shooting, as children may think it's happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.


___


EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.


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Wall St slips as "cliff" talks sour, but hopes remain

NEW YORK (Reuters) - U.S. stocks fell on Wednesday as talks to avert a fiscal crisis by the end of the year turned sour following recent progress, even as the market's moderate decline points to expectations that a deal will be reached.


President Barack Obama and congressional Republicans are struggling to come up with a deal to avoid early 2013 tax hikes and spending cuts that many economists say could pull the U.S. economy back into recession.


House Speaker John Boehner said his chamber will pass a proposal that Obama had already threatened to veto as it spares many wealthy Americans from tax hikes needed to balance the budget. Obama has already agreed to reductions in benefits for senior citizens.


"My guess is they're close to a deal, and right before, it looks like the deal is about to blow up either on manufactured or legitimate reasons," said Uri Landesman, president of hedge fund Platinum Partners in New York.


He said if the market thought the deal was off, the S&P 500 would slide below 1,400. It stands now near 1,440, nor far from a two-month high.


The CBOE volatility index <.vix> surged 10.2 percent to trade above 17, but has remained relatively stable. Its 14- 50- and 200-day averages are all within 1.2 points.


Landesman said the VIX's stability indicates "the bulls have control of this market still."


The Dow Jones industrial average <.dji> fell 63.01 points, or 0.47 percent, to 13,287.95. The S&P 500 <.spx> lost 7.77 points, or 0.59 percent, to 1,439.02. The Nasdaq Composite <.ixic> dropped 4.97 points, or 0.16 percent, to 3,049.56.


General Motors bucked the overall weakness to surge 6.7 percent to $27.20 after the company said it will buy back 200 million of its shares from the U.S. Treasury, which plans to sell the rest of its GM stake over the next 15 months.


Banks and energy shares - groups that outperform during periods of economic expansion - have led recent gains, indicating a shift to focusing on a growing economy as Wall Street looks past the budget talks.


The S&P 500 added 2.3 percent over the past two sessions, the first time it has marked two straight days of 1 percent gains since late July.


Defensive sectors led the downside on Wednesday, with the S&P health care sector index <.gspa> down 0.9 percent.


Oracle shares helped cap losses in the Nasdaq after it reported earnings that beat expectations on strong software sales growth. Oracle jumped 3.7 percent to $34.09.


Knight Capital Group Inc climbed 6 percent to $3.53 after it agreed to be bought by Getco Holdings in a deal valued at $1.4 billion. The stock, which nearly collapsed after a trading error in August, remains down about 70 percent so far this year.


Data showed homebuilding permits touched their highest level in nearly 4-1/2 years in November. The PHLX housing index <.hgx> fell 0.6 percent, but is up nearly 70 percent this year as the housing market has turned the corner.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)



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Egypt opposition protests against constitution


CAIRO (Reuters) - Opponents of Egyptian President Mohamed Mursi staged protests in Cairo on Tuesday against an Islamist-backed draft constitution that has divided Egypt but looks set to be approved in the second half of a referendum this weekend.


Several hundred protesters outside the presidential palace chanted "Revolution, revolution, for the sake of the constitution" and called on Mursi to "Leave, leave, you coward!". While the protest was noisy, numbers were down on previous demonstrations.


Mursi obtained a 57 percent "yes" vote for the constitution in the first part of the referendum last weekend, state media said, less than he had hoped for.


The opposition, which says the law is too Islamist, will be encouraged by the result but is unlikely to win the second part this Saturday, which is to be held in districts seen as even more sympathetic towards Mursi's Muslim Brotherhood.


The National Salvation Front opposition coalition said there were widespread voting violations last Saturday and called for protests to "bring down the invalid draft constitution".


The Ministry of Justice said it was appointing judges to investigate complaints of voting irregularities.


Opposition marchers converged on Tahrir Square, cradle of the revolution that toppled Hosni Mubarak almost two years ago, and Mursi's presidential palace, still ringed with tanks after earlier protests.


A protester at the presidential palace, Mohamed Adel, 30, said: "I have been camping here for weeks and will continue to do so until the constitution that divided the nation, and for which people died, gets scrapped."


The build up to the first day of voting saw clashes between supporters and opponents of Mursi in which eight people died. Recent demonstrations in Cairo have been more peaceful, although rival factions clashed on Friday in Alexandria, Egypt's second biggest city.


RESIGNATION


Egypt's public prosecutor resigned under pressure from his opponents in the judiciary, dealing a blow to Mursi and drawing an angry response from his supporters in the Muslim Brotherhood.


In a statement on its Facebook page, the Islamist group that propelled Mursi to power in an election in June, said the enforced departure of public prosecutor Talaat Ibrahim was a "crime" and authorities should not accept the resignation.


Further signs of opposition to Mursi emerged when a judges' club urged its members not to supervise Saturday's vote. But the call is not binding and balloting is expected to go ahead.


If the constitution is passed, national elections can take place early next year, something many hope will help end the turmoil that has gripped Egypt since the fall of Mubarak.


The closeness of the first referendum vote and low turnout give Mursi scant comfort as he seeks to assemble support for difficult economic reforms.


"This percentage ... will strengthen the hand of the National Salvation Front and the leaders of this Front have declared they are going to continue this fight to discredit the constitution," said Mustapha Kamal Al-Sayyid, a professor of political science at Cairo University.


Mursi is likely to become more unpopular with the introduction of planned austerity measures, Sayyid told Reuters.


To tackle the budget deficit, the government needs to raise taxes and cut fuel subsidies. Uncertainty surrounding economic reform plans has already forced the postponement of a $4.8 billion loan from the International Monetary Fund. The Egyptian pound has fallen to eight-year lows against the dollar.


Mursi and his backers say the constitution is needed to move Egypt's democratic transition forward. Opponents say the document is too Islamist and ignores the rights of women and of minorities, including Christians who make up 10 percent of the population.


Demonstrations erupted when Mursi awarded himself extra powers on November 22 and then fast-tracked the constitution through an assembly dominated by his Islamist allies and boycotted by many liberals.


The referendum has had to be held over two days because many of the judges needed to oversee polling staged a boycott in protest. In order to pass, the constitution must be approved by more than 50 percent of those voting.


(Additional reporting by Tamim Elyan and Edmund Blair; Writing by Giles Elgood; Editing by Alison Williams)



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