Month: February 2010

  • Even with Obama’s help, Reid probably doomed


    Even with Obama’s help, Reid probably doomed

    The president travels to Nevada, stumps hard for Senate leader, but it’s unlikely to make a difference

    Alex Koppelman

    Feb. 19, 2010 |
    For President Obama, this Friday might as well have been Harry Reid Day. Even without a presidential declaration giving it the official name, Obama’s day so far has been all about campaigning for the Senate majority leader.
    Obama held two events in Reid’s home state of Nevada on Friday, a town hall at a high school in Henderson and a speech to the Las Vegas Chamber of Commerce and the Las Vegas Convention and Visitors Authority. At both events, the president made it clear that this trip was all about trying to give Reid’s reelection campaign a much-needed boost.
    Even the choice of location for the second event of the day was a favor to Reid. Obama spoke to the Chamber and the LVCVA at the Aria Casino, which is part of City Center, an enormous multi-casino development that’s part of an enormous new multi-casino development, City Center. the senator was a big backer of CityCenter, the largest private construction project in American history, which faced serious difficulties — including the threat of bankruptcy — once the recession began. Reid has even run an ad touting his work on behalf of the development. 
    The president wasn’t sparing with his praise of Reid.
    “You could not have a better fighter on behalf of the people of Nevada than Sen. Harry Reid. I’m proud to call him a friend,” Obama said during the speech at CityCenter.
    “He’s never been afraid to make tough decisions, even if they weren’t politically popular, if they were the right decisions for his state and the right decisions for America. So I just want to reiterate: His leadership has made a tremendous difference. Through these economic storms, he’s never lost sight of the struggles and the hardships of the people who sent him to Washingotn. Every Nevadan should know the strength and the character of the man that I hope and expect to serve in Washington for many years to come. So thank you, Harry, for doing the work you do.”
    Those words, and the president’s appearance, might give Reid and his supporters some brief moments of cheer. But they’re unlikely to provide much more than that. At this point in the campaign, the majority leader looks all but doomed to defeat; he’s trailing both of his potential Republican opponents in the polls, and has been for months. An appearance by the president can certainly get donors’ wallets to open up a bit wider, but Reid has plenty of money, and it’s not doing much for him so far.
    Other than that, these days endorsements — even from relatively popular politicians — just don’t do much in races like this one. Once upon a time, when elected officials had huge machines behind them, endorsements could really turn a race. Now, things are different. Look, for example, at New Jersey Gov. Jon Corzine’s reelection campaign last year; Obama stumped for him, too, and Corzine spent much of the race trying to link himself as closely to the president as possible. He lost anyway.

    — Alex Koppelman

  • Tuesday, February 23, 2010 

    Maurice Tsai/Bloomberg

    Shoppers walked past a shoe store in Taipei, Taiwan, on Sunday.

    February 23, 2010

    Asia’s Boom Conceals Some Darker Prospects

    HONG KONG — Taiwan grew at an 18 percent annualized rate in the fourth quarter. Japan is about to have its biggest initial public offering in more than a decade. A big Hong Kong property developer quickly sold hundreds of apartments in a remote suburb over the weekend after bringing in thousands of potential buyers with free buses from the city’s center.

    It is beginning to sound a lot like 2006 in Asia. Or is it?
    Asia’s booming developing powerhouses are clearly beating Europe and the United States in the recovery and proving to be a pocket of great hope for the global economy.
    But a look at Asia beyond the headlines shows the region still faces significant economic challenges, ranging from deflation in anemic Japan to an over-reliance on exports in places like Taiwan. China is the region’s only strong pillar, but economists warn of headwinds there, too, notably a possible real estate bubble.
    As Asia’s role in the global economy expands, the threats facing the Asian economy grow in importance as well.
    “Basically, we are bullish on the region,” said Robert Subbaraman, chief economist for Asia outside Japan at Nomura in Hong Kong. “But there are a lot of risks out there.”
    At the top of Mr. Subbaraman’s “worry list” are issues that actually lie beyond the region itself. They include a possible renewed slowdown in the world’s big advanced economies, where many households are still paying down debt and worrying about double-digit unemployment rates.
    “The world is such an interconnected place, and the Asian economies are so open, that Asia will get hit hard again if something goes pear-shaped elsewhere,” he said.
    Despite its generally sound economic fundamentals, Asia has a string of home-grown problems to contend with.
    China is both Asia’s greatest hope and its greatest risk. The Chinese economy grew 8.7 percent last year and is closing in on Japan as the world’s second-largest economy, after that of the United States.
    But the pace of growth has been so rapid that many analysts are worried that the economy may soon begin to overheat. A flood of easy credit has helped real estate and stock markets soar, leading the authorities to rein in lending in recent months. And analysts caution that some of the loans made in a country determined to prime the economic pump may ultimately go sour.
    Erwin Sanft, head of China and Hong Kong research at BNP Paribas, wrote in a note Monday that over the course of this year, “the numerous potential unhealthy side effects of the stimulus program will also probably become more apparent.”
    Those include high inflation, misallocation of capital, overinvestment in heavy industry, and the accelerated use of scarce resources and environmental degradation, Mr. Sanft wrote.
    The possible bubble in real estate is spilling over to places like Hong Kong, where last year a mainland Chinese citizen purchased a luxury apartment at what was believed to be the highest price ever on a per-square-foot basis.
    Over the weekend, the Hong Kong developer Sun Hung Kai Properties sold 900 apartments in its new Yoho Midtown complex at prices that were almost double those of a year earlier.
    The rebound in Taiwan looks equally impressive but likewise is fraught with obstacles.
    Data released Monday showed the island country’s economy powering ahead at an annualized rate of 18 percent in the fourth quarter, significantly above economists’ expectations.
    It is the latest piece of good news for the country, whose reliance on exports meant that it took a hard hit during the global economic crisis. Unemployment has come down slightly, to 5.7 percent, after peaking at more than 6 percent in August, and several companies in Taiwan’s huge semiconductor manufacturing industry have announced plans to hire thousands of workers this year as orders pick up.
    After hitting bottom last March along with global markets, Taiwan’s Taiex stock market index closed up 78 percent in 2009 and is still about 74 percent above its low of last year. In January, Taiwanese exports were up 75.8 percent from a year earlier, with exports to China, the country’s biggest trading partner, having risen a whopping 187.8 percent. By contrast, shipments to the United States, Taiwan’s second-largest export market, rose 13.7 percent.
    But Taiwan’s great reliance on exports to China compared with other major economies means that if the economy were to slow unexpectedly, the effect on Taiwan could be severe.
    Political disputes between Taiwan and the mainland also are a question mark going forward. Taiwan’s president, Ma Ying-jeou, has been working to complete agreements that would lift some barriers on cross-Straits trade and investment. The agreements, Mr. Ma has argued, would aid Taiwan’s economy and help keep the island competitive with neighboring countries that have recently signed free-trade deals with China.
    But the political opposition has mounted street rallies against Mr. Ma’s efforts, warning that the pacts could cost Taiwan jobs by, among other things, reducing tariffs on low-cost mainland imports. His political foes have also complained that his representatives have conducted negotiations with Beijing out of public view and warn that the deals may erode Taiwan’s de facto political independence from the mainland.
    In Japan on Monday, Dai-ichi Mutual Life Insurance, one of the largest Japanese life insurers, said that it would sell about ¥1.1 trillion, or $12 billion, in shares in what would most likely be the country’s largest I.P.O. since 1998.
    On the surface, it is good news for the Japanese economy, where I.P.O. offerings have nearly ground to a halt. I.P.O.’s generally signal that companies are trying to raise money to invest in jobs and growth and that investors are confident enough about the economy to put their money in companies there.
    But the Dai-ichi Mutual Life I.P.O. belies the severe sluggishness of the Japanese economy — the world’s second largest but also one of the weakest links in Asia. The company said it needed the funds to finance overseas expansion because its business in Japan was waning as the population fell.
    The latest data suggest that the economy has escaped a double-dip recession but that deflation — which has weighed down the economy for long periods over the past two decades — remains a serious risk.
    The problem is that policy makers’ hands are tied. Japan’s public debt, at 181 percent of gross domestic product; a quickly aging population; and lower tax revenues mean that the government cannot spend its way out of the crisis. And interest rates set by the Bank of Japan are already close to zero.
    What has resulted is gridlock and finger-pointing between the government and the central bank. The government has been pushing the Bank of Japan to do more. “The government will undoubtedly do all it can,” Prime Minister Yukio Hatoyama told legislators Monday. “I also hope the B.O.J. will conduct monetary policy appropriately.”
    Despite problems in Japan and a possible bubble in China, many economists say they believe that external forces still pose the greatest risk to the Asian economy.
    According to Mr. Subbaraman of Nomura, rising oil prices would hurt Asia’s energy-hungry economies, while a debt default by Greece could also shake investor confidence in Asia — even though most of the region has surplus reserves, rather than debt problems.
    The Greece worries also mean many of the region’s central banks are now more reluctant to start raising interest rates in a bid to head off nascent inflation, economists say.This raises the risk that more Draconian rate rises may be needed further down the line. “If you raise too late, the inflation genie will get out of the bottle — and it is hard to get it back in,” Mr. Subbaraman said.
    Still, optimism is the overriding feeling despite the headwinds. “Asia is growing up,” said Bill Belchere, global economist at Mirae Asset in Hong Kong. “I think the recovery will actually be a lot stronger and a lot more durable than many people think.”

    Copyright 2010 New York Times

  • Kerik Is Sentenced in Corruption Case By SAM DOLNICK

    February 18, 2010

    ‘d like to apologize to the American people,” said Bernard B. Kerik, the former New York police commissioner, after his sentencing Thursday.

    WHITE PLAINS — Bernard B. Kerik, a former New York police commissioner who rose to national prominence, was sentenced to four years in prison on Thursday after pleading guilty to eight felony charges, including tax fraud and lying to White House officials.

    Under the terms of a plea agreement, the prosecution and the defense recommended that Judge Stephen C. Robinson sentence Mr. Kerik to 27 to 33 months in prison. But the judge departed from the sentencing recommendations, giving Mr. Kerik a longer sentence because he said he had betrayed the public’s trust.

    “I think it’s fair to say that with great power comes great responsibility and great consequences,” Judge Robinson said. “I think the damage caused by Mr. Kerik is in some ways immeasurable.”

    Federal prosecutors had denounced Mr. Kerik, a former police detective who rose to the upper echelons of power, as a corrupt official who sought to trade his authority for lavish benefits. He pleaded guilty on the eve of his trial in November.

    Wearing a pinstriped navy-blue suit, Mr. Kerik was thinner and clean-shaven — without the mustache he was long identified with — as he entered the courtroom in United States District Court here. He surveyed the gallery, packed with friends and supporters, embracing some, nodding to others.

    When Judge Robinson offered him a chance to speak before sentencing, Mr. Kerik rose from the defense table and spoke in a low and gravelly voice.

    “I make no excuses,” he said. “I take full responsibility for the grave mistakes I’ve made. Believe me when I say I have learned from this and I have become and will continue to become a better person. I know I must be punished. I only ask that you allow me to return to my wife and two little girls as soon as possible.”

    As the judge delivered the sentence, Mr. Kerik sat impassively at the defense table, flanked by his lawyers. Behind him, his supporters — including Geraldo Rivera and Steven McDonald, a former New York City police officer who was paralyzed from the neck down in 1986 — sat silently.

    Mr. Kerik will begin serving his sentence on May 17. Prosecutors had requested that Mr. Kerik be sent to prison immediately, but Judge Robinson allowed him to surrender later to get his affairs in order in light of the length of the sentence. Mr. Kerik has awaited sentencing under strict house arrest at his home in Franklin Lakes, N.J.

    The sentence follows a fall from a rarefied perch where he wielded power with a signature mix of brash confidence and tough-guy charm.

    He was a close ally of former Mayor Rudolph W. Giuliani, whom he served as a bodyguard and driver. Mr. Giuliani then tapped him for a senior position in the Correction Department, and he went on to become the agency’s commissioner. As testament to his clout, Mr. Kerik had a jail named after him in downtown Manhattan. (The name has since been changed.)

    Mr. Kerik later served as police commissioner, and his performance after the 9/11 attacks turned him into a national figure, earning him the respect of President George W. Bush, who nominated him to lead the Department of Homeland Security. That bid quickly collapsed in scandal, marking the beginning of the end of Mr. Kerik’s career.

    The case against Mr. Kerik centered on charges that a New Jersey construction company, the Interstate Industrial Corporation, which was suspected of ties to organized crime, had paid for renovations at his home in the Riverdale section of the Bronx. Prosecutors said company officials had hoped Mr. Kerik would help them obtain a city license.

    In June 2006, Mr. Kerik pleaded guilty in State Supreme Court in the Bronx to two misdemeanors tied to the renovation of his apartment. He paid $221,000 in fines and penalties but avoided any jail time.

    In the more recent federal case, Mr. Kerik pleaded guilty to two counts of tax fraud, one count of making a false statement on a loan application and five counts of making false statements to the federal government while being vetted for senior posts. Judge Robinson ordered him to pay restitution of $187,931 to the Internal Revenue Service.

    Prosecutors had called for Judge Robinson to make an example out of Mr. Kerik, and to punish him for his “egotism and hubris.”

    During the hearing, Judge Robinson said he admired much about Mr. Kerik, particularly his leadership in the 9/11 aftermath. But, he said, “the fact that Mr. Kerik would use that event for personal gain and aggrandizement is a dark place in the soul for me.”

    Mr. Kerik’s lawyer, Michael F. Bachner, asked the judge for leniency, citing his years of public service, and the dozens of letters of support written by family members, former colleagues in the Police Department and even strangers who said they admired Mr. Kerik’s bravery.

    When asked if Mr. Kerik intended to appeal the sentence, Mr. Bachner said, “No comment.”

    After the sentencing, Mr. Kerik paused outside the courthouse, where he read a statement before being driven off in a black sport utility vehicle.

    “I’d like to apologize to the American people for the mistakes I’ve made and for which I have just accepted responsibility,” he said. “As history is written, I can only hope that I will be judged for the 30 years of service I have given to this country and the city of New York.”

    Copyright.2010 New York Times

  • February 18, 2010

    Defying Injury, Vonn Wins Gold in Downhill

    WHISTLER, British Columbia — Standing next to the start house, Lindsey Vonn heard the radio crackle. She lifted it to her ear.

    “Jules just had a great run; she’s in first by almost a second,” her husband, Thomas, said, using the nickname of Vonn’s longtime rival and teammate Julia Mancuso. It is Thomas Vonn’s job, as coach and adviser, to provide race updates. Watching on a television monitor as Mancuso rocketed to the front of the pack in Wednesday’s women’s Olympic downhill, he radioed a report of where Lindsey stood.

    “You now have to attack from start to finish or you’re not going to win,” Thomas said. “Somebody else is going to win the gold medal.”

    Not just somebody else. Mancuso and Vonn have been dueling for ski championships since they were 12 years old, when they first were among the world’s top-ranked juniors.

    So this is what it has come to, Vonn thought to herself. After several days of weather postponements, after a week of speculation about an injured right shin, after a year’s buildup to her quest for a medal, it would come down to one bold charge after an old familiar foe.

    “One all-out run,” Vonn would later say, “with nothing left behind.”

    In one of the most stirring descents in Olympic downhill skiing history, Vonn ignored the pain in her injured shin, chased down Mancuso and caught up to nearly a lifetime of expectations to become the first American woman to win an Olympic downhill gold medal. With an aggressive style and stance she held throughout her run — jaw, hands, knees and hips always angling forward for more speed — Vonn’s time of 1 minute 44.19 seconds on the bumpy, treacherous Whistler race course was 0.56 of a second ahead of Mancuso. Elisabeth Görgl of Austria won the bronze medal.

    “It was a fight all the way down but I told myself to keep pushing regardless of the consequences,” said Vonn, who remains a favorite to win additional gold medals. “I had to go for it every second.”

    While Mancuso’s thrilling run seemed smooth, elegant and efficient, Vonn’s seemed tinged with elements of force and desperation. The bruised shin sustained more than two weeks ago was painful, she said, but pain-killers and adrenaline masked the debilitating effects. From the start, Vonn built her lead over Mancuso, increasing it at nearly every timed interval down the race course. Still, she had one nearly disastrous bobble about two-thirds of the way down at the sharp right turn known as Frog Bank, and then, she almost lost it all 10 seconds from the end.

    Coming off the dramatic Hot Air jump within sight of the huge finish line grandstand, Vonn flew about 50 yards in the air and wobbled as she landed. Her skis continued to tremble and wander as she dropped into a high-speed tuck through the final 150 yards.

    Watching on television, Thomas Vonn yelled at the screen: “Just get to the finish!”

    When Vonn crossed the finish line, she looked to the scoreboard.

    “Seeing my name and the number one next to it was the best feeling I’ve had in my life,” she said.

    Coming to a stop, Vonn fell backward in the snow and raised her arms.

    “Then I spent the next 20 minutes just bawling,” she said. “I couldn’t stop crying.”

    Mancuso, who won an Olympic gold medal in giant slalom in 2006, had skied the downhill of her life, and though defeated by Vonn, she seemed ebullient afterward.

    “I skied well from the start and I am on the podium again,” said Mancuso, who has not been in the top three in a major international race since she placed third in a downhill at Whistler two years ago. “I thought it was really cool that Lindsey had all this pressure, and for her to come through with a great race with all the expectations is really inspiring.

    “For all our ups and downs through all the years, we’re two different stories on the podium and we’re proud to be here together.”

    Mancuso was nearly bumped into the bronze medal spot by Sweden’s Anja Paerson, who, skiing after Mancuso and Vonn, appeared to be headed for a second-place finish when she flew too high and too far off the Hot Air jump, landed off balance, crashed through a gate and tumbled out of control. Six of the 45 skiers did not finish the course.

    Vonn said she knew when her husband told her it was Mancuso who was in first place that it would take a spectacular run to come out on top.

    “She always seems to be a big-game racer,” Vonn said.

    By contrast, for many years, it was Vonn who struggled to have her best races at the most important times. A year ago, at the world ski championships, Thomas had to come to the start to ease Lindsey’s nerves, which worked as Vonn won. They had expected to follow the same routine Wednesday, but Lindsey surprised Thomas about 15 minutes before her start when she told him he could go watch the race on television instead.

    “What?” Thomas said.

    “I’m good,” Lindsey answered. “I’ve got this. Go ahead.”

    As Thomas said later, “I knew she was really ready now, it was a turning point.” The shin injury that had been talked about so often in the last week was not much discussed in the final minutes before the race.

    “It hurt and she knew it would hurt,” Thomas said. “But when you’re getting ready to race in the Olympics, you can’t feel anything. The Olympics are the ultimate numbing cream.”

    Vonn would not predict how her shin would hold up in Thursday’s women’s super combined, an all-day event that is one run of downhill followed by one run of slalom. She has skied on consecutive days only once since the injury.

    “I’m sure it will be very sore, but I’m not worrying about that now,” Vonn said, standing next to the finish area, where a gaggle of American fans, including many from her family, chanted her name. “I came here to win a gold medal. I stood up to the pressure. I went for it with no fear. I will attack in all the next events; I’ll keep that promise. But I simply can’t feel any happier. And I know I will always have today.”

    Copyright 2010 The New York Times Company

  • Las Vegas Sports Books Prepare for Big Money Weekend

    Gambling on the Super Bowl

    Posted: wnRenderDate(‘Saturday, February 6, 2010 12:11 AM EST’, ”, true); Feb 05, 2010 9:11 PM PST

    Updated: wnRenderDate(‘Saturday, February 6, 2010 2:01 AM EST’, ”, true); Feb 05, 2010 11:01 PM PST

    LAS VEGAS - Las Vegas sports books are counting down to Super Bowl Sunday. The big game means big business for Las Vegas, and casinos expect to cash in on this weekend’s game. The game pits the AFC Champion Indianapolis Colts against the NFC Champion New Orleans Saints.

    Bettors are already flooding the Las Vegas Hilton Race and Sports Book and looking to get some action on the game. “I figured if you can’t be there live, this is the next best place,” said bettor and Arizona visitor Monte Hoopes. “I’m a Peyton Manning fan, so I’m rooting for the Colts.” Arizona visitor Greg Impellitier is counting on the New Orleans Saints to pull off a victory. “(The) Saints are going to come marching in,” he said. “There is only going to be one team that’s going to win the Super Bowl, and my pick is the New Orleans Saints.”

    The Colts are favored by five and a half points, but many gamblers are betting with their hearts and rooting for the underdog Saints. “There’s a lot of support for the Saints in this game, so we’re thinking it’s going to be about 50-50 this year, which is a good thing for all the bookmakers,” said Hilton Race and Sports Book Vice President Jay Kornegay. Nevada sports books predict about $86 million in bets this Super Bowl weekend. That is up from $81 million last year.

    Things are also looking good outside the sports books. 278 thousand visitors are coming to Las Vegas for the big game. That is 33 thousand more than last year. The Las Vegas Convention and Visitors Authority credits an improving economy and new attractions such as CityCenter. “Honestly, it’s a whole different skyline compared to last year at Super Bowl time, and we’re starting to see a few positive signs in the economy. We’re starting to see people wanting to get out a little bit more,” said LVCVA Public Relations Manager Jeremy Handel.

    Super Bowl weekend is expected to generate nearly $90 million in non-gaming revenue.

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  • East Coast Is Hit by ‘Potentially Epic Snowstorm

    February 6, 2010

    Snow and more Snow.

    WASHINGTON — One of the largest winter storms the Mid-Atlantic region has seen in decades swept into Washington and Baltimore on Friday, grounding flights, closing schools and government offices, and sending residents racing to stock up on groceries and rock salt before the snow accumulated to what are expected to be record-setting depths.

    “Tonight into Saturday morning will be about as dangerous as winter weather can get around here,” said Christopher Strong of the National Weather Service’s Baltimore-Washington office.

    He added in an e-mail alert that travel conditions would be “extremely dangerous and life-threatening,” and recommended that people in the region stay off the roads and out of the way of plowing crews and emergency vehicles.

    Jane Lubchenco, administrator of the National Oceanic and Atmospheric Administration, parent agency of the weather service, called the blizzard “a potentially epic snowstorm” that could rival the 28 inches of snow that a January 1922 storm dropped on the capital.

    “The National Weather Service has been very clear that this is a storm to take very seriously,” she said. The halls of the Capitol building were quiet, and the federal government sent many workers home four hours early on Friday. Dr. Lubchenco said she was making contingency plans for all government offices in and near the capital to be closed through Tuesday.

    “If it is as much and as heavy as they are forecasting, it may be a number of days before people are actually moving around again,” she said. “This is a serious storm.”

    As snow began to accumulate on the White House grounds and the National Mall in the afternoon, much of Washington was hunkered down, bracing for what newspapers and bloggers have been calling the “snowpocalypse,” or “snowmageddon,” and the streets in the center of the city were unusually quiet. Schools in suburban Virginia were closed for the day, and students in Maryland and the District of Columbia had shortened school days.

    As the sun set and temperatures began to drop below freezing, accumulations in Washington quickly reached about 2 inches of wet, heavy snow, precisely as had been predicted all day long. As of 5 p.m. Friday, all operations had ceased at Ronald Reagan National Airport and only a few international flights were scheduled to take off from Dulles International Airport. Domestic flights into and out of both airports on Saturday had been canceled. There was no final word on the fate of incoming or outgoing international flights at Dulles.

    As the snow intensified, temperatures dropped, and the weather service warned of blizzard-level winds gusting to 35 miles per hour in the nation’s capital, Washington’s transit system said it would shut down the above-ground rail tracks just outside of town at 11 p.m. Friday, and that there would be no bus service on Saturday.

    Shelves at some supermarkets in the Virginia and Maryland suburbs resembled something out of the old Soviet bloc, stripped nearly bare of eggs, milk, meat and chicken by shoppers who carried fresh memories of the icy roads and deep drifts of a December storm that buried Washington in more than 18 inches of snow.

    The weather service issued a blizzard warning on Friday afternoon for Annapolis, Md., saying that by late Friday night northeasterly winds would start to whip through with gusts of 35 to 40 miles an hour. A blizzard warning for Atlantic City, N.J., was posted earlier in the day. Late Friday, the weather service also issued an overnight tornado watch along the coast of North Carolina.

    In Pittsburgh, snow started falling just after midday. Dozens of school districts and local colleges in and around the city closed early on Friday. and the state’s health department canceled H1N1 vaccine clinics that were scheduled for Saturday.

    Officials closed some lanes on the Parkway North, a freeway that runs from downtown into the northern suburbs, to free road crews to spend more time keeping other roads clear. Travel was already snarled up and down the East Coast by the time the first flakes fell. Numerous Amtrak trains in the storm track along the Eastern seaboard from Savannah, Ga., to Boston were canceled on Friday and Saturday, although alternate service was available for some routes. Amtrak was posting schedule changes and cancellations on its Web site. A number of airlines were canceling flights out of major cities in the affected areas.

    In Virginia, which was expected to take the brunt of the storm, Gov. Robert F. McDonnell declared a state of emergency and warned residents in the storm’s path to prepare emergency kits, stay off roads and brace for outages. The state’s General Assembly called off all floor sessions and committee meetings scheduled for Friday, the first time in recent memory that the Legislature was shut down because of snow, The Associated Press reported.

    The National Weather Service predicted “near-blizzard conditions” and issued a winter storm warning extending from Friday to late Saturday that covered a broad stretch of the Mid-Atlantic region. Snow was expected to spread northward late on Friday to the New York City area and possibly the southern edge of New England.

    Accumulations of two feet or more were expected in the heart of the storm, with southern New Jersey getting up to 18 inches. But New York may escape with just a few inches of snow as the system spirals out to sea, said Carl Erickson, a senior meteorologist at AccuWeather.com.

    “The further south you go, the more snow you’re going to see,” he said. “But 50 or 60 miles north of New York City there may not be a flake.”

    President Obama did not cancel any of his events on Friday, and he was scheduled to deliver a speech at a meeting of the Democratic National Committee on Saturday. But he did not make any public comments about the snow. That contrasted with last year, when he playfully mocked the reaction of his new city to an approaching snowstorm, saying Washington would do well to emulate “flinty Chicago toughness.”

    “Even a transplanted Hawaiian-to-Chicagoan has sufficient respect for a forecast of nearly two feet of snow,” Robert Gibbs, the White House press secretary, told reporters on Friday. He added that the snowstorm would not affect the president’s weekend schedule: “He doesn’t even have to shovel the walk.”

    John M. Broder reported from Washington and Jack Healy from New York. Jeff Zeleny and Janie Lorber contributed reporting from Washington, Anahad O’Connor from New York, and Sean D. Hamill from Pittsburgh.

    Copyright 2010 The New York Times Company

  • Snow piles up, paralyzing nation’s capital

    WASHINGTON – A blizzard battered the Mid-Atlantic region Saturday, with emergency crews struggling to keep pace with the heavy, wet snow that has piled up on roadways, toppled trees and left thousands without electricity.

    Officials urged people to huddle at home and out of the way of emergency crews. Forecasters said the storm could be the biggest for the nation’s capital in modern history.

    A record 2 1/2 feet or more was predicted for Washington. As of early Saturday, 10 inches of snow was reported at the White House, while parts of Maryland and West Virginia were buried under more than 20 inches. Forecasters expected snowfall rates to increase, up to 2 inches per hour through Saturday morning.

    Blizzard warnings were issued for the District of Columbia, Baltimore, parts of New Jersey and Delaware, and some areas west of the Chesapeake Bay.

    “Things are fairly manageable, but trees are starting to come down,” said D.C. fire department spokesman Pete Piringer, whose agency responded to some of the falling trees. No injuries were reported.

    Airlines canceled flights, churches called off weekend services and people wondered if they would be stuck at home for several days in a region ill-equipped to deal with so much snow.

    “D.C. traditionally panics when it comes to snow. This time, it may be more justifiable than most times,” said Becky Shipp, who was power-walking in Arlington, Va., Friday. “I am trying to get a walk in before I am stuck with just the exercise machine in my condo.”

    The region’s second snowstorm in less than two months brought heavy, wet snow and strong winds that forecasters warned could gust near 60 mph in some areas along the coast.

    Hundreds of thousands of customers across the region had lost electricity and more outages were expected to be reported because of all the downed power lines. A hospital fire in D.C. sent about three dozen patients scurrying from their rooms to safety in a basement. The blaze started when a snow plow truck caught fire near the building.

    Authorities blamed the storm for hundreds of accidents, including a deadly tractor-trailer wreck that killed a father and son who had stopped to help someone in Virginia. Some area hospitals asked people with four-wheel-drive vehicles to volunteer to pick up doctors and nurses to take them to work.

    The country band Rascal Flatts postponed a concert Saturday in Ohio, but the Atlanta Thrashers-Washington Capitals NHL game went on as planned.

    In Dover, Del., Shanita Foster lugged three gallons of water out of a Dollar General store.

    “That’s all we need right now. We’ve got everything else,” said Foster, adding that she was ready with candles in case the power went out.

    Shoppers jammed aisles and emptied stores of milk, bread, shovels, driveway salt and other supplies. Many scrambling for food and supplies were too late.

    “Our shelves are bare,” said Food Lion front-end manager Darlene Baboo in Dover. “This is just unreal.”

    Metro, the transit system the Washington area is heavily dependent upon, closed all but the underground rail service and suspended bus service.

    Maryland’s public transportation also shut down Saturday, including Baltimore’s Metro. Maryland Transit Administration spokeswoman Jawauna Greene said the underground portion of the Metro could reopen later Saturday but it depended on the weather conditions.

    “We have trees on the overhead wires, trees on train tracks. We can’t get anything out,” she said.

    Amtrak also canceled several of its Northeast Corridor trains Saturday, and New Jersey’s transit authority expected to suspend bus service. As much as a foot of snow was reported in parts of that state.

    Across the region, transportation officials deployed thousands of trucks and crews and had hundreds of thousands of tons of salt at the ready. Several states exhausted or expected to exhaust their snow removal budgets.

    Maryland budgeted about $60 million, and had already spent about $50 million, Gov. Martin O’Malley said. Virginia Gov. Bob McDonnell, who has been in office less than a month, declared his second snow emergency, authorizing state agencies to assist local governments. As of early Saturday, some parts of Virginia had already seen more than 18 inches of snow.

    The snow comes less than two months after a Dec. 19 storm dumped more than 16 inches on Washington. Snowfalls of this magnitude — let alone two in one season — are rare in the area. According to the National Weather Service, Washington has gotten more than a foot of snow only 13 times since 1870.

    The heaviest on record was 28 inches in January 1922. The biggest snowfall for the Washington-Baltimore area is believed to have been in 1772, before official records were kept, when as much as 3 feet fell, which George Washington and Thomas Jefferson penned in their diaries.

    In Washington, tourists made the best of it Friday, spending their days in museums or venturing out to see the monuments before the snow got too heavy.

    A group of 13 high school students from Cincinnati was stranded in D.C. when a student government conference they planned to attend was canceled — after they had already arrived. So they went sightseeing.

    At the Smithsonian‘s natural history museum, Caitlin Lavon, 18, and Hannah Koch, 17, took pictures of each other with the jaws of a great white shark in the Ocean Hall.

    “Our parents are all freaking out, sending texts to be careful,” Koch said. “Being from Ohio, I don’t think I’ve ever seen that much snow at once.”

    ___

    Associated Press writers Brett Zongker and Sarah Karush in Washington, Kathleen Miller in Falls Church, Va., David Dishneau in Chantilly, Va., Ben Nuckols in Hanover, Md., Randall Chase in Dover, Del., and Steve Szkotak in Richmond, Va., contributed to this report.

  • Settlement Plan Drafted for Sept. 11 Lawsuits

    February 5, 2010

    Settlement Plan Drafted for Sept. 11 Lawsuits

    With a firm trial date looming for thousands of lawsuits brought by workers at ground zero against the city, lawyers for both sides are engaged in intensive talks aimed at settling some or all the cases.

    The first 12 cases are scheduled for trial on May 16 in Manhattan. But Judge Alvin K. Hellerstein, who is overseeing the litigation, said at a recent hearing that a detailed settlement plan about 70 pages long had been drafted.

    “There have been intensive discussions going on looking to settlements of individual cases and globally of all cases,” he said.

    Lawyers for the plaintiffs and the city declined to comment on the negotiations.

    “The parties have been working very hard,” said Judge Hellerstein, of the United States District Court for the Southern District of New York. “The settlement is complicated.”

    The lawsuits against 90 government agencies and private companies were filed beginning in 2004 by more than 9,000 rescue and cleanup workers who sued over illnesses and injuries they say stemmed from working at the World Trade Center site in the aftermath of the Sept. 11 terrorist attack.

    Several hundred lawyers are working on the cases, and the court documents run to tens of millions of pages.

    The plaintiffs claim that the city, along with its contractors and other major defendants like the Port Authority of New York and New Jersey, offered inadequate safety procedures and supervision to shield them from exposure to contaminants while working amid the debris in a 16-acre area at the site.

    Plaintiffs are seeking compensatory damages for pain and suffering and economic loss, as well as, in certain cases, medical monitoring. They may also seek punitive damages in appropriate cases, said Paul J. Napoli, one of the lead lawyers for the plaintiffs.

    James E. Tyrrell Jr., the lead lawyer for the defendants, contends that no link can be proven between the illnesses of plaintiffs and exposure at ground zero, and that some are making false claims. If the cases come to trial, juries will have to decide whether the defendants are at fault, whether the plaintiffs are actually sick and whether their conditions were caused by their work at the disaster site, Mr. Tyrrell said.

    The litigation is complex and politically charged. Among those suing are firefighters, police officers, construction workers and other responders who draw public sympathy. Many elected officials and advocacy groups are demanding compensation, long-term medical treatment and monitoring for the workers from the federal government.

    Mayor Michael R. Bloomberg supports a bill pending in Congress that would offer federal relief to people harmed by work at the site. But the city has, at the same time, been fighting the workers in court, arguing, among other things, that it is immune from damages in cases involving a civil defense disaster or a national emergency. At issue is how great the city’s liability would be if it lost the cases.

    “We would rather stand with the responders before Congress than fight them in the courtroom,” said Jason Post, a spokesman for the mayor. “Responders and workers should not have to prove that the city or the contractors are somehow responsible for their harms — which plaintiffs are obligated to prove and which the city thinks is not the case.”

    Still, in 2007, Mr. Bloomberg said the city was willing to explore settling the cases.

    Although the cases have been consolidated, they are being considered separately and not as a class-action lawsuit. The court, lawyers for the plaintiffs and the city are selecting a small group of sample cases to bring to trial in the hope that the verdicts will guide settlement of the remaining lawsuits.

    “No one seriously thinks that all of these cases would ever be tried,” said Richard A. Nagareda, a law professor who teaches complex civil litigation at Vanderbilt University Law School. “Ultimately, everybody understands there’s going to be some sort of comprehensive settlement. The question is, what is the price?”

    The city is arguing that its liability is capped at $350 million under federal law, but lawyers for the plaintiffs are disputing that figure. If they prevail, the city could face an enormous cost for its share of the compensation. The city and its contractors are covered by an insurance fund of almost $1 billion financed by the Federal Emergency Management Agency. The private contractors named as defendants have their own insurance, although the coverage available has not been determined.

    “We believe there’s sufficient coverage to pay all claims with money to spare,” Mr. Napoli said.

    As in other cases involving exposure to environmental hazards, establishing cause and effect is likely to be difficult. The plaintiffs have been asked to fill out lengthy questionnaires that ask about pre-existing diseases, their medical history as far back as 1995 and other exposures that could have caused the illnesses, like the use of tobacco products.

    But what makes the 9/11 cases even more daunting, some legal experts note, is that the collapse and conflagration of the two towers in 2001 created an unfamiliar toxic soup from the dust and fumes.

    “There’s not a lot of experience with this kind of risk,” said Anthony J. Sebok, a professor who specializes in mass torts at Benjamin N. Cardozo School of Law. “It may be very difficult from a technical point of view to get testimony from experts.”

    The cases also involve thousands of people claiming hundreds of different ailments of varying severity. Many of them were subject to different types of exposure over different periods. To make the litigation more manageable, a severity chart has been created to classify injuries in six major disease categories by type and seriousness, a classification scheme that will help the court pick a sample of cases.

    The trials could still be delayed as lawyers continue to request documents, file motions and work their way through hearings to decide which expert testimony will be allowed. No decision has been made on whether to try the first cases separately or together, but Judge Hellerstein has said that he is not “enamored of the idea” of grouping the cases and that he may bring in other judges to conduct simultaneous trials.

    Some of the plaintiffs said they hoped for a fair resolution. Glen Klein, 51, a former police officer from Centereach on Long Island who blames his respiratory and gastrointestinal problems on the hundreds of hours he spent on recovery work at ground zero, said that any money would go to pay about $30,000 in credit-card debt he had acquired since his ailments forced him to stop working in 2005.

    Anything else he would invest, he said.

    “If I woke up one day with a rare cancer, I’d like to take care of my family,” said Mr. Klein, who is married and has three children. “I feel I’m just waiting for the hammer to drop on me.”

    Copyright 2010 The New York Times Company