Well: Myths of Weight Loss Are Plentiful, Researcher Says

If schools reinstated physical education classes, a lot of fat children would lose weight. And they might never have gotten fat in the first place if their mothers had just breast fed them when they were babies. But be warned: obese people should definitely steer clear of crash diets. And they can lose more than 50 pounds in five years simply by walking a mile a day.

Those are among the myths and unproven assumptions about obesity and weight loss that have been repeated so often and with such conviction that even scientists like David B. Allison, who directs the Nutrition Obesity Research Center at the University of Alabama at Birmingham, have fallen for some of them.

Now, he is trying to set the record straight. In an article published online today in The New England Journal of Medicine, he and his colleagues lay out seven myths and six unsubstantiated presumptions about obesity. They also list nine facts that, unfortunately, promise little in the way of quick fixes for the weight-obsessed. Example: “Trying to go on a diet or recommending that someone go on a diet does not generally work well in the long term.”

Obesity experts applauded this plain-spoken effort to dispel widespread confusion about obesity. The field, they say, has become something of a quagmire.

“In my view,” said Dr. Jeffrey M. Friedman, a Rockefeller University obesity researcher, “there is more misinformation pretending to be fact in this field than in any other I can think of.”

Others agreed, saying it was about time someone tried to set the record straight.

“I feel like cheering,” said Madelyn Fernstrom, founding director of the University of Pittsburgh Weight Management Center. When it comes to obesity beliefs, she said, “We are spinning out of control.”

Steven N. Blair, an exercise and obesity researcher at the University of South Carolina, said his own students believe many of the myths. “I like to challenge my students. Can you show me the data? Too often that doesn’t come into it.”

Dr. Allison sought to establish what is known to be unequivocally true about obesity and weight loss.

His first thought was that, of course, weighing oneself daily helped control weight. He checked for the conclusive studies he knew must exist. They did not.

“My goodness, after 50-plus years of studying obesity in earnest and all the public wringing of hands, why don’t we know this answer?” Dr. Allison asked. “What’s striking is how easy it would be to check. Take a couple of thousand people and randomly assign them to weigh themselves every day or not.”

Yet it has not been done.

Instead, people often rely on weak studies that get repeated ad infinitum. It is commonly thought, for example, that people who eat breakfast are thinner. But that notion is based on studies of people who happened to eat breakfast. Researchers then asked if they were fatter or thinner than people who happened not to eat breakfast — and found an association between eating breakfast and being thinner. But such studies can be misleading because the two groups might be different in other ways that cause the breakfast eaters to be thinner. But no one has randomly assigned people to eat breakfast or not, which could cinch the argument.

So, Dr. Allison asks, why do yet another study of the association between thinness and breakfast? “Yet, I can tell you that in the last two weeks I saw an association study of breakfast eating in Islamabad and another in Inner Mongolia and another in a country I never heard of.”

“Why are we doing these?” Dr. Allison asked. “All that time and effort is essentially wasted. The question is: ‘Is it a causal association?’” To get the answer, he added, “Do the clinical trial.”

He decided to do it himself, with university research funds. A few hundred people will be recruited and will be randomly assigned to one of three groups. Some will be told to eat breakfast every day, others to skip breakfast, and the third group will be given vague advice about whether to eat it or not.

As he delved into the obesity literature, Dr. Allison began to ask himself why some myths and misconceptions are so commonplace. Often, he decided, the beliefs reflected a “reasonableness bias.” The advice sounds so reasonable it must be true. For example, the idea that people do the best on weight-loss programs if they set reasonable goals sounds so sensible.

“We all want to be reasonable,” Dr. Allison said. But, he said, when he examined weight-loss studies he found no consistent association between the ambitiousness of the goal and how much weight was lost and how long it had stayed off. This myth, though, illustrates the tricky ground weight-loss programs have to navigate when advising dieters. The problem is that on average people do not lose much – 10 percent of their weight is typical – but setting 10 percent as a goal is not necessarily the best strategy. A very few lose a lot more and some people may be inspired by the thought of a really life-changing weight loss.

“If a patient says, ‘Do you think it is reasonable for me to lose 25 percent of my body weight,’ the honest answer is, ‘No. Not without surgery,’” Dr. Allison said. But, he said, “If a patient says, ‘My goal is to lose 25 percent of my body weight,’ I would say, ‘Go for it.’”

Yet all this negativism bothers people, Dr. Allison conceded. When he talks about his findings to scientists, they often say: “O.K., you’ve convinced us. But what can we do? We’ve got to do something.” He replies that scientists have an ethical duty to make clear what is established and what is speculation. And while it is fine to recommend things like bike paths or weighing yourself daily, scientists must make sure they preface their advice with the caveat that these things seem sensible but have not been proven.

Among the best established methods is weight-loss surgery, which, of course, is not right for most people. But surgeons have done careful studies to show that on average people lose substanial amounts of weight and their health improves, Dr. Allison said. For dieters, the best results occur with structured programs, like ones that supply complete meals or meal replacements.

In the meantime, Dr. Allison said, it is incumbent upon scientists to change their ways. “We need to do rigorous studies,” he said. “We need to stop doing association studies after an association has clearly been demonstrated.”

“I never said we have to wait for perfect knowledge,” Dr. Allison said. But, as John Lennon said, “Just give me some truth.”

Read More..

Well: Myths of Weight Loss Are Plentiful, Researcher Says

If schools reinstated physical education classes, a lot of fat children would lose weight. And they might never have gotten fat in the first place if their mothers had just breast fed them when they were babies. But be warned: obese people should definitely steer clear of crash diets. And they can lose more than 50 pounds in five years simply by walking a mile a day.

Those are among the myths and unproven assumptions about obesity and weight loss that have been repeated so often and with such conviction that even scientists like David B. Allison, who directs the Nutrition Obesity Research Center at the University of Alabama at Birmingham, have fallen for some of them.

Now, he is trying to set the record straight. In an article published online today in The New England Journal of Medicine, he and his colleagues lay out seven myths and six unsubstantiated presumptions about obesity. They also list nine facts that, unfortunately, promise little in the way of quick fixes for the weight-obsessed. Example: “Trying to go on a diet or recommending that someone go on a diet does not generally work well in the long term.”

Obesity experts applauded this plain-spoken effort to dispel widespread confusion about obesity. The field, they say, has become something of a quagmire.

“In my view,” said Dr. Jeffrey M. Friedman, a Rockefeller University obesity researcher, “there is more misinformation pretending to be fact in this field than in any other I can think of.”

Others agreed, saying it was about time someone tried to set the record straight.

“I feel like cheering,” said Madelyn Fernstrom, founding director of the University of Pittsburgh Weight Management Center. When it comes to obesity beliefs, she said, “We are spinning out of control.”

Steven N. Blair, an exercise and obesity researcher at the University of South Carolina, said his own students believe many of the myths. “I like to challenge my students. Can you show me the data? Too often that doesn’t come into it.”

Dr. Allison sought to establish what is known to be unequivocally true about obesity and weight loss.

His first thought was that, of course, weighing oneself daily helped control weight. He checked for the conclusive studies he knew must exist. They did not.

“My goodness, after 50-plus years of studying obesity in earnest and all the public wringing of hands, why don’t we know this answer?” Dr. Allison asked. “What’s striking is how easy it would be to check. Take a couple of thousand people and randomly assign them to weigh themselves every day or not.”

Yet it has not been done.

Instead, people often rely on weak studies that get repeated ad infinitum. It is commonly thought, for example, that people who eat breakfast are thinner. But that notion is based on studies of people who happened to eat breakfast. Researchers then asked if they were fatter or thinner than people who happened not to eat breakfast — and found an association between eating breakfast and being thinner. But such studies can be misleading because the two groups might be different in other ways that cause the breakfast eaters to be thinner. But no one has randomly assigned people to eat breakfast or not, which could cinch the argument.

So, Dr. Allison asks, why do yet another study of the association between thinness and breakfast? “Yet, I can tell you that in the last two weeks I saw an association study of breakfast eating in Islamabad and another in Inner Mongolia and another in a country I never heard of.”

“Why are we doing these?” Dr. Allison asked. “All that time and effort is essentially wasted. The question is: ‘Is it a causal association?’” To get the answer, he added, “Do the clinical trial.”

He decided to do it himself, with university research funds. A few hundred people will be recruited and will be randomly assigned to one of three groups. Some will be told to eat breakfast every day, others to skip breakfast, and the third group will be given vague advice about whether to eat it or not.

As he delved into the obesity literature, Dr. Allison began to ask himself why some myths and misconceptions are so commonplace. Often, he decided, the beliefs reflected a “reasonableness bias.” The advice sounds so reasonable it must be true. For example, the idea that people do the best on weight-loss programs if they set reasonable goals sounds so sensible.

“We all want to be reasonable,” Dr. Allison said. But, he said, when he examined weight-loss studies he found no consistent association between the ambitiousness of the goal and how much weight was lost and how long it had stayed off. This myth, though, illustrates the tricky ground weight-loss programs have to navigate when advising dieters. The problem is that on average people do not lose much – 10 percent of their weight is typical – but setting 10 percent as a goal is not necessarily the best strategy. A very few lose a lot more and some people may be inspired by the thought of a really life-changing weight loss.

“If a patient says, ‘Do you think it is reasonable for me to lose 25 percent of my body weight,’ the honest answer is, ‘No. Not without surgery,’” Dr. Allison said. But, he said, “If a patient says, ‘My goal is to lose 25 percent of my body weight,’ I would say, ‘Go for it.’”

Yet all this negativism bothers people, Dr. Allison conceded. When he talks about his findings to scientists, they often say: “O.K., you’ve convinced us. But what can we do? We’ve got to do something.” He replies that scientists have an ethical duty to make clear what is established and what is speculation. And while it is fine to recommend things like bike paths or weighing yourself daily, scientists must make sure they preface their advice with the caveat that these things seem sensible but have not been proven.

Among the best established methods is weight-loss surgery, which, of course, is not right for most people. But surgeons have done careful studies to show that on average people lose substanial amounts of weight and their health improves, Dr. Allison said. For dieters, the best results occur with structured programs, like ones that supply complete meals or meal replacements.

In the meantime, Dr. Allison said, it is incumbent upon scientists to change their ways. “We need to do rigorous studies,” he said. “We need to stop doing association studies after an association has clearly been demonstrated.”

“I never said we have to wait for perfect knowledge,” Dr. Allison said. But, as John Lennon said, “Just give me some truth.”

Read More..

Facebook Beats Forecasts on Earnings and Revenue


SAN FRANCISCO — Facebook made a lot of money in the last quarter. It also spent a lot. And that made investors once again cautious about the company.


After an eight-month roller coaster ride on the public markets, Facebook did well in the fourth quarter of 2012 by aggressively ramping up advertisements aimed at its users, including on mobile phones. In its financial report on Wednesday, it beat expectations, increasing revenue by a handsome 40 percent from the same period a year ago.


But its expenses also climbed rapidly as the company hired engineers and built data centers, causing profit to dip from the last quarter in 2011. With that, Wall Street lost some enthusiasm.


Facebook shares, which had closed at $31.24 on Wednesday, fell more than 3 percent in after-hours trading after the results were released.


In recent weeks, the stock had recovered much of the ground it lost in the eight months since its introduction last year.


“The quarter was a little like a cold shower after you’ve been out all night — it’s something that makes you sober up very quickly,” said Jordan Rohan, an analyst at Stifel Nicolaus, adding that the numbers made it clear that Facebook intended to spend more “to go after the opportunities before them.”


In the conference call with analysts after the earnings report, Mark Zuckerberg, chief executive of Facebook, cautioned Wall Street that profit might not grow as fast as investors would like. That, he said, was because Facebook would continue to spend money hiring people and building products for the future, like the new search tool it introduced earlier this month. “It’s important to start planting seeds,” he said.


The most closely watched part of the earnings report was how much money the company brought in from its mobile users; most people log in to the site using their cellphones. Facebook said advertising on the mobile newsfeed accounted for 23 percent of its advertising revenue, up from 14 percent in the third quarter but slightly lower than some analysts had forecast.


Mr. Zuckerberg predicted that the company would eventually make more money on every minute spent on the Facebook mobile app than on the desktop computer.


Facebook reported fourth-quarter revenue of $1.59 billion, compared with $1.52 billion predicted by analysts surveyed by Bloomberg. The company earned $64 million in net income, or 3 cents a share. Excluding certain items, Facebook said it had a net income of $426 million in the fourth quarter, or 17 cents a share, beating analysts’ expectations by 2 cents.


Facebook’s biggest, long-term challenge remains how to profit from the enormous piles of personal data of its one billion users without alienating them or inviting the wrath of government regulators in the United States and abroad. The company reported on Wednesday that it had 1.06 billion active users — those who log in at least once a month.


Secondarily, it must figure out a way to profit abroad. Most of its revenue still comes from North America and to a lesser extent Europe.


Despite the stock’s decline after the earnings report, it is still much recovered since last year’s slump. It opened at $38 a share last May, but shortly after that, the stock plummeted as Wall Street soured on its ability to increase profit as fast as investors wanted. Shares sank to half the public offering price last September.


But the company focused on its advertising business and released a series of new products aimed at taking on some of its biggest rivals, including Google and Apple. Mr. Zuckerberg took the initiative to reassure investors it had their interests at heart. The improvement in the share price in recent weeks suggests that the company’s charm offensive is paying off.


In the last few months, Facebook has floated several trial balloons aimed at pleasing Wall Street and, in particular, convincing investors that it can thrive in the mobile era.


It offered marketers more refined targeting options, including Facebook Exchange, which allows companies to track users as they are browsing and shopping for products around the Web and lets companies show advertisements for those products when the users log back on to Facebook.


Before Christmas last year, in a bid to step into territory dominated by Amazon, it introduced the Gifts application, which lets users buy goods and services for their Facebook friends, and in turn, share with the company an extremely valuable piece of data: their credit card numbers. The company made clear in the conference call on Wednesday that this would not be an immediate moneymaker.


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Jerusalem Journal: Some Fear a Soccer Team’s Racist Fans Mirror Israel





JERUSALEM — The shouting match began long before kickoff, and many of the slogans had little to do with soccer.




“The Temple Mount is in our hands,” chanted the notoriously aggressive fans of the home team, Beitar Jerusalem.


The visitors from Umm al-Fahm, an Arab-Israeli town, had their own provocations. “With blood and fire, we will liberate Palestine,” they called in Hebrew.


The angry, defiant exchanges that punctuated Tuesday night’s unusually tense game here came amid intense protests by Beitar Jerusalem supporters over the team owner’s plans to recruit two Muslim players from Chechnya. Some young men had unfurled a banner at the previous game declaring “Beitar pure forever,” which reminded many here of Nazi Germany’s purging of Jews from athletics in 1933 and prompted statewide discussion about racism on and off the field.


“People in Israel usually try to locate Beitar Jerusalem as some kind of the more extreme fringe; this is a way to overcome the embarrassment,” said Moshe Zimmermann, a historian at Hebrew University who specializes in sports. “The fact is that the Israeli society on the whole is getting more racist, or at least more ethnocentric, and this is an expression.”


Reaction to the purity banner, perhaps the most controversial in a series of Beitar outbursts, was swift. One of the fans who made the sign was arrested and banned from games for the season. Fifty more were barred from Tuesday’s match, along with banners of all kinds, and the team was fined about $13,500, amid concerns that the episode could threaten Israel’s scheduled hosting of a European Under 21 soccer tournament in June.


President Shimon Peres sent the soccer association a sharply worded letter, and Ehud Olmert, the former prime minister who has been one of Beitar’s biggest financial boosters, wrote a much-discussed opinion article in the newspaper Yediot Aharanot declaring he would no longer be seen in the stands.


“The competition has long since stopped being of a sportsmanship nature,” Mr. Olmert wrote. “Either we remove this group of racists from our field and cut it off from the team, or we are all like them.”


Beitar, which was founded in 1936 and is the only one of Israel’s 30 professional soccer teams never to have had a single Arab player, has a long history of ugly fan behavior. Last March, hundreds stormed a mall near the stadium and beat up several Arab workers. A Nigerian Muslim who joined the team in 2004 quit after a year of harassment.


But such conflagrations are not limited to soccer. Last summer, a mob of Jewish teenagers pummeled a Palestinian youth nearly to death in what was widely condemned as an attempted lynching. While last week’s election results were widely seen as slowing Israel’s slide to the right, Yair Lapid, whose centrist party came in a strong second, was criticized for saying afterward that he would not form a coalition with “Zoabis,” a reference to an Arab-Israeli lawmaker.


Nor are the tensions only between Israel’s 1.5 million Arab citizens and its six million Jews. A left-leaning lawmaker filed a complaint with the elections commission this month asserting that a campaign advertisement depicting a blond Russian woman getting a conversion certificate faxed to her under the wedding canopy — as opposed to going through a substantive religious process as now required — was “racist and presents the immigrant population in a ridiculous light.” Last spring, Israeli lawmakers used racial slurs during protests against the influx of migrant workers from Africa, with one eventually apologizing for calling them “a cancer in our body.”


Adalah, a legal center for Arabs in Israel, counted 20 discriminatory laws passed by the current Parliament, including one restricting residency in certain communities. Nidal Othman, director of the Coalition Against Racism in Israel, said there had been a 20 percent to 30 percent increase in “racist incidents” in the past two years.


“When talking about Beitar, it’s actually showing a mirror for the Israeli society,” said Mr. Othman, a lawyer with the Mossawa Center, which advocates for civil and human rights. “The political leaders and the religious leaders of the community are feeding the society with different racist incitements — against Arabs at all, against Muslims at all and against different groups in Israel.”


Soccer, Israel’s national sport, has long been tinged by conflict because, as Professor Zimmermann put it, “In Israel, you cannot disconnect politics from whatever you do.” The major teams — Beitar, Maccabi and Hapoel — began as outgrowths of political movements and remain psychically linked to various parties. Beitar is Likud, the right-leaning faction headed by Prime Minister Benjamin Netanyahu, though in recent years it has also been associated with extremists amid the growth of a virulent fan group known as La Familia.


Abbas Swan, who spent three years on the Israeli national team and about 15 in professional soccer, said playing against Beitar “gave me more energy and more power.”


“They want to destroy all the society that I love, that I come from,” explained Mr. Swan, 37, now a youth coach. “Your emotion now plays, not your body and not your head. You can give 120 percent, not 100 percent.”


At Tuesday’s match, between singing religious songs and hurling vulgar epithets at their opponents, Beitar fans were blunt about their opposition to integrating their beloved team. They added a new chant to their repertoire, attacking the team’s owner, the Russian-Israeli oligarch Arcadi Gaydamak, as “son of a whore” because of his plan to put the Chechens on his roster.


“Arabs are impure people,” said Shlomo Buchbut, a 17-year-old student. “We don’t like Muslims.”


Lindy Mizrahi, one of the few women in the young, testosterone-filled stands, said she did not agree with the purity banner but nonetheless wanted only Jews to wear her team’s trademark yellow and black. “Beitar is a group of very Zionist Jews who believes that Jerusalem belongs to the Jews,” she explained. “We are for peace — but not inside Beitar.”


Avi Cohen, 22, who works in a warehouse, pointed to the Umm al-Fahm fans chanting “Allahu akbar,” which reminded him of what Palestinian suicide bombers said before blowing themselves up during the second intifada, or uprising. “They support and they represent all the terrorists,” Mr. Cohen said.


Hundreds of additional police officers deployed for Tuesday’s game removed 25 fans — 20 from Beitar — for racist behavior, and arrested five from Umm al-Fahm, two for attacking officers and three for raising a Palestinian flag.


The 1,000 Arabs at the game were sequestered behind locked gates in one corner, where they banged drums, tooted trumpets and clapped hands overhead.


“We didn’t come to watch the game,” said Mahmoud Jazmawe, 21, a road paver who was with two cousins. Added Ahmed Mhamed, 19: “They’re always cursing the Prophet Muhammad, so we came to answer back.”


Beitar, ranked fourth in the premier league with a record of 8-5-7, dominated its opponent, which plays in the second tier, scoring its first goal within eight minutes and finishing 5-0. Still, said Mohammed Mahamid, 36, a history teacher, “We won big.”


“We came to show them what the culture of soccer is and what playing without racism is,” he explained. “We brought a big crowd, we showed a force and that’s a victory.”


Irit Pazner Garshowitz contributed reporting.



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BlackBerry Maker Unveils Its New Line


Marcus Yam for The New York Times


Thorsten Heins, the chief executive of BlackBerry, which was known as Research in Motion, introduces the company's new phones.







BlackBerry’s maker unveiled a new operating system and a new line of phones on Wednesday, along with a new corporate name, with the hope of restoring its products’ status as a symbol of executive cool.




Analysts, technology reviewers and app developers with advance access to the BlackBerry Z10 and the BlackBerry 10 operating system have said it is the company’s first competitive touch-screen phone. But BlackBerry 10 arrives long after Apple’s iPhone and phones using Google’s Android operating system have come to dominate the smartphone market that the BlackBerry effectively created. According to IDC, BlackBerry now holds just 4.6 percent of that market, about one-tenth of its historic peak.


To emphasize the changes brought by the new operating system, Thorsten Heins, who took over as chief executive a year ago, said the company, known until now as Research In Motion, had adopted BlackBerry as its corporate name. Its Nasdaq trading symbol will become BBRY, and it will trade as BB in Toronto.


In addition to the BlackBerry Z10 phone, there will be a second model, the Q10, that includes one of the line’s signature physical keyboards. Verizon Wireless announced that it would price the Z10 at $200 with a two-year contract. BlackBerry 10 phones will also be carried by AT&T, Sprint and T-Mobile.


“Today represents a new day in the history of BlackBerry,” Mr. Heins said. “These BlackBerry 10 devices are absolutely the best typing experiences in the industry.”


BlackBerry said the Z10 would be available in the United States in March and in Canada on Feb. 5.


There were few surprises in the initial portion of Mr. Heins’s presentation at an event in New York. The company began demonstrating the touch-screen phone and operating system in May and also made prototypes available to app developers at the time. In recent weeks, photographs of the final version of the phones have made their way to various American and European technology Web sites.


Physically, the Z10 resembles an iPhone 5 with its corners snipped off.


But unlike its competitors, the Z10 lacks a button to take users back to a home page and relies entirely on users swiping their fingers across the 4.2-inch screen from different directions to summon features or menus.


While the Z10 lacks a physical keyboard, the main attraction of BlackBerrys for many current users, the company said that it had developed software which should alleviate some of the inadequacies of on-screen typing. According to BlackBerry, its software studies users’ common typing mistakes over time and then starts automatically correcting them. It will also build up a list of commonly used words and offer them as suggestions that can be selected with a flick of a finger.


While developing the new operating system, the company took great pains to improve its strained relationship with app developers. The operating system was also designed in a way that allows them to adapt Android apps for BlackBerry 10 by making some relatively minor modifications.


BlackBerry said Wednesday that more than 70,000 BlackBerry 10 apps were now available.


For corporate and government users, BlackBerry 10 server software will allow them to divide employees’ BlackBerry 10 phones into separate work and personal spheres and give I.T. managers complete control over the former.


This article has been revised to reflect the following correction:

Correction: January 30, 2013

Because of an editing error, an earlier version of this article referred imprecisely to the plans of major American carriers to offer the two new BlackBerry models. While Verizon Wireless, AT&T, Sprint and T-Mobile will all carry new BlackBerrys, not all will offer the Z10; Sprint has so far announced plans only to offer the other model, the Q10.



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9/11 Health Compensation Fund Makes First Payouts





A federal fund set up to compensate people sickened by the Sept. 11 terrorist attacks made its first awards on Tuesday, to 15 first responders.




The recipients’ names were not released, but 14 are firefighters and one is a correction officer who responded to the disaster early on, mainly on the first day, said Sheila Birnbaum, the special master of the $2.8 billion victim compensation fund.


Most of them had respiratory illnesses and none of them had cancer, she said. Their awards, which are tax-free, ranged from $10,000 to $1.5 million. But they are receiving only 10 percent at first because of uncertainty about how many people will ultimately apply for the benefits, which are available to first responders, volunteers, workers and residents who were in Lower Manhattan in the months after the attacks.


Ms. Birnbaum could not provide the total dollar amount awarded in this round.


The fund expires in October 2016. With thousands of people potentially eligible, it could in theory, according to an actuarial calculation, have to pay out $8.5 billion, far more than it can afford.


“If our estimates have been too conservative and there’s money we can afford, we’ll give you another check,” Ms. Birnbaum said.


Richard Alles, a deputy fire chief and legislative chairman of the Uniformed Fire Officers Association, said his members were pleased to see the money finally being disbursed. “It’s a tremendous relief for many people who are sick and dying from 9/11-related illnesses,” he said.


In late 2010, Congress approved the $2.8 billion compensation fund, along with a $1.5 billion fund for health monitoring and treatment. Dr. James Melius, chairman of the steering committee for the World Trade Center Medical Monitoring and Treatment Program, said he hoped the reality of the awards would encourage others to fill out their paperwork.


Ms. Birnbaum said $10,000 would be the lowest amount awarded.


The highest awards, she said, represented lost income for firefighters who were relatively young and mostly or completely disabled. The awards are compensation for lost wages, out-of-pocket expenses for doctors, medications and other health costs, and pain and suffering, which is based on the extent of someone’s disability. Other sources of compensation, like pensions, disability money and court settlements, are deducted from the amount before it is paid.


Ms. Birnbaum said she had not awarded money for cancer yet because she had not received any completed applications from people with cancer, and not because of any medical judgment. Fifty kinds of cancer were added to the list of eligible sicknesses last year despite a lack of evidence tying Sept. 11 to cancer.


“Each claim is looked at individually,” Ms. Birnbaum said. “The type of illness is not important. What is important is your economic loss.”


Ms. Birnbaum said one reason for the small number of payments was the glacial pace at which the paperwork was being filled out. More than 16,000 people have registered for the victim compensation fund, but only 2,500 have gone the next step and submitted eligibility forms, showing, for instance, that they were present at the disaster sites: the World Trade Center, the Pentagon, Shanksville, Pa., or the landfill and routes where debris was taken.


Of those, only 190 have submitted compensation forms, and many lack documentation, Ms. Birnbaum said.


She said her staff had been meeting with lawyers to advise them on how to get better affidavits from witnesses for people who did not have other ways to document that they had been at the disaster sites. “These affidavits are so bare,” she said, “that nobody could say that these showed anything.”


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To Open Eyes, W-2s List Cost of Health Plans





WASHINGTON — As workers open their W-2 forms this month, many will see a new box with information on the total cost of employer-sponsored health insurance coverage. To some, it will be a surprise, perhaps even a shock.




Workers often have little idea how much they and their employers are paying for coverage. In many cases, economists say, workers give up cash compensation to get and keep health benefits.


The disclosures, required by the 2010 health care law, are meant to make workers more cost-conscious. Health benefits are still tax-free. But labor unions and employer groups say it could be easier to tax them in the future, now that employers must report their value to the government.


The new information appears in Box 12 of the standard W-2 form, with a two-letter code, DD. The box shows the “cost of employer-sponsored health coverage.” And that amount is not taxable, the Internal Revenue Service says on the back of the form.


Jay J. Makled, a union steward for the United Automobile Workers at the Ford plant in Dearborn, Mich., described his reaction after seeing that his health coverage cost nearly $16,000 last year: “It’s quite expensive. I was surprised to see how much the company was paying for that benefit.”


Hourly employees represented by the union there said they generally did not pay any of the premium.


The number on the W-2 form is supposed to reflect the part of the cost paid by the employer and the part paid by the employee.


Prof. Nicole Huberfeld, an expert on health law at the University of Kentucky, who received her W-2 form on Monday, said, “Most people who get health insurance from their employers have no idea how much it costs.”


“People are often shocked when they see the cost, $12,000 to $16,000 a year,” Ms. Huberfeld said. “Many Americans believe this is something they get free. But employers pay lower wages because they provide insurance.”


In 2012, according to an annual survey by the Kaiser Family Foundation, premiums for employer-sponsored health insurance averaged $5,615 a year for single coverage and $15,745 for family coverage. Over five years, the costs have increased 25 percent for individual coverage and 30 percent for family coverage.


“Health coverage is a big piece of people’s income and a large part of the social welfare budget,” said C. Eugene Steuerle, a tax economist at the Urban Institute. “But the benefits are not taxable, and most of the spending is hidden, so we don’t consider the trade-offs. If we want to get control of health care costs, people have to be aware of them.”


That is the goal of the disclosure requirement, which was proposed by a bipartisan group of senators: two Republicans, Charles E. Grassley of Iowa and Michael B. Enzi of Wyoming, and two Democrats, Max Baucus of Montana and Ron Wyden of Oregon.


Congress acted after Peter R. Orszag, then the director of the Congressional Budget Office, told lawmakers: “The economic evidence is overwhelming, the theory is overwhelming, that when your firm pays for your health insurance, you actually pay through reduced take-home pay. The firm is not giving that to you for free.”


The tax-free treatment of employer-provided health benefits is the largest tax break in the tax code, costing the government roughly $180 billion a year in lost revenue, or 80 percent more than the home mortgage interest deduction, according to the administration.


Katie W. Mahoney, the executive director of health policy at the U.S. Chamber of Commerce, said, “It’s useful for employees to know the value of coverage their employers provide.” But she said some employers worried that reporting the benefit on the W-2 form could lead to taxing the benefit.


“That’s not the intent of the current requirement,” Ms. Mahoney said. “But once the information is collected by the government, it’s very easy for another administration to have a different intent.”


An employee of the A.F.L.-C.I.O. whose health coverage was listed as costing more than $20,000 said: “That knocks my socks off. When I saw the number, my eyes popped out. I appreciate my employer all the more.”


The employee said he had been told not to discuss the cost publicly because the union did not want to suggest that some employees had “Cadillac coverage.”


An employer that fails to comply with the reporting requirement could be subject to penalties of $200 per W-2 form, up to a maximum of $3 million, tax lawyers said.


Employers are exempt from the reporting obligation if they are required to file fewer than 250 W-2 forms, the I.R.S. said. That could change, but the agency said employers would be given at least six months’ notice.


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Investors Shrug Off a Weak Earnings Report From Amazon





A glorious future beats a glorious past.




Investors decimated Apple last week when it appeared that the world’s mightiest profit machine might be slowing down just a tad. But they cheered on Tuesday when Amazon said its fourth-quarter sales and earnings fell short of expectations. Oh, and expect a miserable first quarter, too.


Shares in Amazon immediately jumped nearly 10 percent in after-hours trading, about the same amount that Apple fell after releasing its news.


What caught the eye of investors was that operating margins as a percent of consolidated sales rose to 3.2 percent, from 2.7 percent a year ago.


“The carrot for Amazon investors is improvements to margin over time,” said Gene Munster, an analyst with Piper Jaffray. Apple, on the other hand, would need to build a cheaper iPhone to keep growing as fast as it has been, which would slice into its margins.


For more than a decade, Amazon has teetered between minimal profits and no profits. In 2012, it said Tuesday, it lost money. But Wall Street has always been more about promises than results, and Amazon is always on the verge of converting its overwhelming online presence into buckets of cash.


“As long as the dream is there, the stock is going to go up,” Mr. Munster said.


The short-term news Tuesday was not good. Earnings per share fell to 21 cents from 38 cents in the fourth quarter of 2011. Although fourth-quarter revenue went up 22 percent to $21.27 billion, both revenue and earnings did not meet expectations. Analysts had predicted revenue of $22.2 billion and earnings of 27 cents a share.


Forget about all that. What mattered was the improvement in margin.


Amazon has had plenty of opportunities to raise its margins in the past, but has instead routinely chosen to reward customers with subsidized shipping and higher discounts. In a conference call with analysts on Tuesday, Tom Szkutak, Amazon’s chief financial officer, repeated this mantra.


“Putting customers first is the only reliable way to create lasting value for shareholders,” he said.


Investors took some time to buy into this idea. “Wall Street gets in a kerfuffle when we lower product prices and invest heavily in the future,” Jeff Bezos, Amazon’s chief executive, acknowledged in 2005, at a point when the stock had tumbled 40 percent in less than a year. “So don’t buy our stock — instead buy our products and enjoy our investments.”


That was bad advice. The stock is up almost 700 percent since then, hitting a record this month.


Shares in Amazon fell nearly $16 in regular trading Tuesday, to $260.35. After-hours, shares went up more than $22.


Jason Moser, an analyst with the Motley Fool, who owns shares in the retailer, said that “many investors, myself included, will more than likely watch this story play out for as long as it takes.”


Mr. Moser added in an e-mail message that the market was “betting a lot on what Amazon hasn’t done yet and betting on the fact that it will do it based on what it’s doing now.” He added, “Kind of a ‘build it and they will come’ sort of thing.”


Some analysts are still skeptical.


“It’s much easier to sell goods at cost the way Amazon does than sell goods at a 40 percent margin like Apple,” said Colin Gillis of BGC Partners. “Once you’ve trained your customers to buy at cost, it’s difficult to train them away from it.”


Still, Mr. Gillis said: “Who’s going to undercut Amazon? They’re only making half a cent on every dollar. Who can run a business at less profit?”


Amazon continues to expand. Last year, the retailer announced it was building a million-square-foot warehouse in Patterson, Calif., about 85 miles southeast of San Francisco. Last week, it announced another million-square-foot warehouse barely 30 miles north of Patterson, in Tracy. It obviously has designs on fast (if not quite same-day) shipping to the seven million generally affluent, Internet-using residents of the Bay Area.


“We’ll continue to expand our footprint over time and become even closer and closer to customers,” Mr. Szkutak said on the conference call.


Many of those shoppers will be buying material that originated not with Amazon but with more than two million third-party sellers. The volume of items sold by these firms during the 2012 holidays was up 40 percent from 2011. Some of these sellers merely used Amazon to digitally display their goods, while others also used the retailer to ship it.


Amazon said earlier this month that third-party sellers sold enough Santa hats during the holiday for Santa to wear a new hat every day for the next 127 years, and enough guitar picks to give one to every attendee of Woodstock — about a half-million. Analysts expect third-party sales to outpace Amazon deals over the next few years.


Recently several states, including California, successfully made deals with Amazon to collect sales tax. That had the effect of raising prices on many Amazon items by more than 5 percent. Land-based retailers, which had agitated for years for such a move, thought the tax might finally level the playing field.


Their hopes might be misplaced. Any drop in online sales from the collecting of sales tax tends to be temporary, said Scot Wingo, chief executive of ChannelAdvisor, which helps retailers sell online, including on Amazon.


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Thaksin Shinawatra of Thailand Wields Influence From Afar


Philippe Lopez/Agence France-Presse — Getty Images


Thaksin Shinawatra, the former prime minister of Thailand, has been in self-imposed exile since 2008 to escape corruption charges.







BANGKOK — Millions of people across the globe have cut the tethers to their offices, working remotely from home, airport lounges or just about anywhere they can get an Internet connection. But the political party governing Thailand has taken telecommuting into an altogether different realm.




For the past year and a half, by the party’s own admission, the most important political decisions in this country of 65 million people have been made from abroad, by a former prime minister who has been in self-imposed exile since 2008 to escape corruption charges.


The country’s most famous fugitive, Thaksin Shinawatra, circles the globe in his private jet, chatting with ministers over his dozen cellphones, texting over various social media platforms and reading government documents e-mailed to him from civil servants, party officials say.


It might be described as rule by Skype. Or governance by instant messenger, a way for Mr. Thaksin to help run the country without having to face the warrant for his arrest in a case that many believe is politically motivated.


His (remote control) return to power, even if somewhat limited by distance, is a remarkable turnaround for the brash telecommunications billionaire who was deposed in a military coup in 2006, the catalyst for several years of brinkmanship between critics and supporters that led to four changes of government and violent street protests that left nearly 100 people dead.


Officially, his sister, Yingluck Shinawatra, is the prime minister (he nominated her for the job in 2011). But from his homes in Dubai and London, from the gold mines he owns in Africa and during regular visits to nearby Asian countries, Mr. Thaksin, 63, has harnessed the Internet and mobile technology to create one of the most unusual ways of governing a country.


“We can contact him at all hours,” said Charupong Ruangsuwan, the interior minister and secretary general of Mr. Thaksin’s Pheu Thai Party. “The world has changed. It’s a boundless world. It’s not like a hundred years ago when you had to use a telegraph.”


To illustrate the point during an interview, Mr. Charupong took out his iPhone and scrolled through a list of phone numbers for Mr. Thaksin. (Mr. Thaksin gives different numbers to different people, often depending on seniority, party officials say.)


“If we’ve got any problem, we give him a call,” Mr. Charupong said.


Mr. Thaksin himself declined to talk by phone, or Skype, for this article.


The day-to-day governance of the country is carried out by Ms. Yingluck, who is genial, photogenic and 18 years younger than Mr. Thaksin. She cuts the ribbons and makes the speeches.


Ms. Yingluck, 45, has on occasion sought to play down her brother’s role. Soon after taking office, when Mr. Thaksin joined a weekly cabinet meeting via Skype, reporters asked who was really the head of the government. Ms. Yingluck insisted that she was in charge and said Mr. Thaksin had joined the discussion to offer “moral support.” She has since consistently said she is in charge.


But if there is one thing that allies and enemies of Mr. Thaksin agree on, it is that he is the one making the big decisions.


“He’s the one who formulates the Pheu Thai policies,” said Noppadon Pattama, a senior official in Mr. Thaksin’s party who also serves as his personal lawyer. “Almost all the policies put forward during the last election came from him.”


Sondhi Limthongkul, a leader of the “yellow shirt” movement that has taken to the streets many times to demonstrate against Mr. Thaksin, agreed, saying, “He’s running the whole show.”


“If you want a huge project in Thailand worth billions of baht, you have to talk to Thaksin,” Mr. Sondhi, who seemed resigned to the turn of events, said in an interview.


Besides Skype, Mr. Thaksin uses various social media applications, including WhatsApp and Line, to keep in touch with the leaders of the party, senior party members say.


Many of the Skype sessions are reported in the Thai news media. This month, Mr. Thaksin had a video chat to discuss coming elections for governor in Bangkok. The one-hour video chat made news because party officials reported that Mr. Thaksin had told his colleagues that it did not matter whom they nominated because even a utility pole would defeat the opposition.


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DealBook: Chesapeake Energy Chief Steps Down

Chesapeake Energy’s co-founder and chief executive, Aubrey McClendon, will retire on April 1, the producer of oil and natural gas announced on Tuesday, almost eight months after investors complained about a contentious compensation plan.

Mr. McClendon, who gave up his chairman role last May, will also leave Chesapeake’s board on that date. Until then, he will transfer daily management responsibilities to other executives. A successor wasn’t named, though the company said that it had hired an executive search firm to find his replacement.

In an internal e-mail, Archie Dunham assured employees that “the company is not for sale.”

The surprise announcement of Mr. McClendon’s departure followed months of investor dissatisfaction with Chesapeake, which has struggled with prolonged low natural gas prices and efforts to move into more lucrative oil production. But shareholder ire spiked last spring, after Reuters reported on an unusual executive perquisite in which he was allowed to buy stakes in each well the company drilled.

To help finance those investments, Mr. McClendon often borrowed from companies that had conducted business with Chesapeake, raising concerns that he faced a conflict of interest.

In an attempt to quell the turmoil, Mr. McClendon agreed last May to give up his chairman role and to end the compensation plan ahead of schedule.

Chesapeake said on Tuesday that it expected to announce the results of a monthslong review into the compensation plan when it discloses its earnings next month. In the interim, the company said that the inquiry has not unveiled any improper conduct.

“Over the past 24 years, I have had the privilege of developing Chesapeake into one of the world’s premier energy companies,” Mr. McClendon said in a statement. “While I have certain philosophical differences with the new board, I look forward to working collaboratively with the company and the Board to provide a smooth transition to new leadership for the company.”

Below is a copy of Mr. Dunham’s e-mail to employees:

As you may have just read in an e-mail from Aubrey and will see in the press release this evening, the board of directors of Chesapeake has mutually agreed and accepted Aubrey McClendon’s resignation as C.E.O. effective upon appointment of his successor, and retirement from the company, effective April 1, 2013. The decision was made in full recognition and appreciation for the enormous achievements Aubrey has made in founding and building Chesapeake into the extraordinary enterprise it is today.

Over the past 24 years, Aubrey has created one of the most valuable companies in the energy industry. Under his strong leadership, Chesapeake has built an unmatched portfolio of natural gas and oil assets in creating one of the world’s leading energy companies. Aubrey has been a pioneer in the development of unconventional resources, and he has also been a leader in the effort to make the United States energy independent. Aubrey has done all of this with the support and expertise of the world-class senior management team he recruited to Chesapeake and the dedication of our employees.

For the transition, Aubrey remains our C.E.O. During this interim period, he will work closely with Steve Dixon, chief operating officer, and Nick Dell’Osso, chief financial officer, to transition certain day-to-day management responsibilities and assure that the company maintains the highest degree of operational excellence and strategic execution of our business plan. The board of directors and the senior management team are counting on your continued dedication and focus as we execute our strategy of developing our world-class assets and maintain our performance as a low-cost producer of oil and gas while further strengthening the balance sheet.

I would also like to address certain likely points of concern among you. First, the company is not for sale. Second, the board has confirmed the current drilling and completion budget of six billion dollars and is eager to see the exciting recent results of the company’s core of the core development strategy continue. Lastly, the board and management believe strongly in the culture of excellence at Chesapeake and are committed to seeing this culture thrive in the future. The board has no intention of eliminating childcare, shutting down the fitness center, or selling the company cafeterias. I’m sure that other false rumors will appear, so when they surface, ask Steve or Nick if they are true. Our truly top notch 12,000 employees remain the company’s best asset, and we will continue to retain and attract the best talent in the industry.

We are at an important transition point for our company, but it is also a point of great opportunity. Thank you for all you do to make Chesapeake a great company.

Warm regards,

Archie Dunham

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