Archive for June 18th, 2009

What’s next for the Lakers

Might as well come out and say it.

Say what?

The Lakers have the look of a three-time champion.

Great. Slurp away.

They do, actually. I know that LeBron James(notes) is coming into his own and that the Nuggets are in their prime and that the East has all sorts of fitful contenders ready to step up (no Nets or 76er-like foils this time around for Los Angeles), but the Los Angeles’ mix of potential on offense and defense has me thinking they can do this again in 2010, and 2011.

I’d go further, honestly, but I wouldn’t mind keeping some credibility.

Here’s the deal, though. Kobe Bryant(notes) can’t give in to his all-on-me instincts, Phil Jackson has to remain the coach, Andrew Bynum(notes) and Jordan Farmar(notes) have to keep improving at the rate the 2007-08 season suggested, and the team needs to pay the luxury tax.

Pay it again. Pay it for Lamar Odom(notes), and Trevor Ariza(notes). This isn’t an either/or proposition. You have to bring them both back.

Though we’ve spent a while on the Lakers’ look, it will be much simpler than Orlando’s turn. It comes down to retaining both Odom and Ariza, two players who are appropriately valued by the media, and by other teams. The Lakers paid the tax last year, they have a few expiring contracts (Adam Morrison(notes), Derek Fisher(notes); as if they’d trade the latter) for 2009-10 that could be packaged for an upgrade at point guard, but by and large any chance at sustaining the championship run will have to take its cue from internal development.

Odom might have to play the martyr here. Though his skill set leaves us drooling, even your parents know that he’ll turn 30 in November, and that he’s best suited for a team like the Lakers. His leverage isn’t great.

That said, the Lakers need him, badly. Odom made Derek Fisher’s awful defense in the Western Conference playoffs passable when, with Shannon Brown(notes) on the court for defense and defense only, he ran an offense that Brown hasn’t been able to grasp yet. He’ll, he runs it with Fisher out there.

Yes, Luke Walton(notes) can do a lot of the same things. Run the offense off the bench. Rebound and start the break. Make the pass that leads to the pass that gets credited as the assist. Occasionally post up or hit three-pointers. Luke can do it all, and cheaper. Love Luke. Love Lamar, more. He’s just better.

And all Ariza does is play lockdown defense, create turnovers, and hit three-pointers at an ever-improving rate. He’s not much for driving, or the in-between game, as the Magic exposed during the Finals. But while you might not recall him missing a series of pull-up jumpers during the championship round, you surely recall Ariza hitting three-pointer after three-pointer after three-pointer.

And you have to bring him back. Have to. He may only play D and hit threes, but you need that. On both ends. Up to seven, maybe eight million. Beat the offer, bring him back.

You know why, Buss family? Because you’re going to be playing into June. Deep into June, every year. And you’re going to make that money back. And this team, as presently constructed, is special. Three-peat, special. Maybe more.

I’m not giddy. I’m not a Laker fan. I didn’t get too much (or, any) sun while in Los Angeles last week. I just know greatness when I see it. And even with Kobe and Lamar in their 30s, lots of tread on Kobe’s rubber, and the ever-present potential for falloff, selfish play, lackadaisical play, ennui, earthquake, whatever … this is a special, special team.

And you keep special teams together. At any price. And especially when players like Ariza and Odom want to stay in town, and like the arrangement Phil Jackson has created. They’re both lanky forwards, they’re completely different, and they both work. On both ends. The Lakers could be top three in offensive and defensive efficiency next year. That would mean 70 wins, or so.

To get there, you have to bring them both back, and pay the luxury tax again.

And then you have to sit back, and wait for June to roll around again. I don’t toss this stuff out there, lightly. It’s not my money, but June is pretty special to me, and to us all. And I want to see Ariza and Odom there, every June, trading fours.

Make it happen, Dr. Buss.

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NBA still shoulders burden of Donaghy

Tim Donaghy supposedly had his knee busted in federal prison by “the New York mob.” The same group also has promised to “shoot him,” presumably when he’s free.

And then there’s the tell-all book he penned from the pen that will “detail the culture of manipulation and fraud that permeates the NBA.”

The former NBA referee was transferred Wednesday from federal prison in Pensacola, Fla., to a so-called halfway house in Tampa, which, if nothing else, means he’ll have an easier time producing wild tabloid headlines, sensible or not.

For the NBA, the credibility of the tales hardly matter.

Donaghy remains the league’s worst PR nightmare, a crooked ref who plays into the conspiracy that commissioner David Stern sits in his Manhattan tower and fixes games. Some people will believe anything on the topic.

Now Donaghy is halfway out, in desperate need of money and possibly eyeballing every checkbook journalist in America.

Why else would he have Executive Prison Consultants publicize his November 2008 prison attack?

Who the heck issues a press release about their knee capping?

Well, it worked. News of the beating rotated the globe, putting Donaghy’s name out there smack dab in the middle of the NBA Finals even if the story is dubious on numerous levels. Sort of like the shooting threat or the book that no publisher appears willing to touch.

“In November he was on a [grounds keeping] job [at the prison] when he was approached by an inmate who just blindsided him with a blow with a stick-like object into the knee area,” said Pat Zaranek of Executive Prison Consultants, his de facto spokesman. “It debilitated Tim immediately.”

The Federal Bureau of Prisons had no comment on the alleged incident and there is no independent verification that it ever occurred. The Philadelphia Inquirer did report that Donaghy told the same story to his father.

Zaranek didn’t know the other inmate’s name or what the object was, but since they were all doing yard work a shovel handle seems reasonable. The other inmate was transferred to a different federal facility, Zaranek said. Even before the attack the guy supposedly told Donaghy what was coming.

“This person apparently told Tim Donaghy that he had ties to the New York mob and they were going to shoot him and break his knee caps.”

Since the knee was taken care of, is Donaghy now in danger of getting murdered? Even for the “New York mob,” actually blasting a guy inside of prison is extreme; so now that he can walk the streets, is it coming?

“That is a concern,” Zaranek said. “How Tim is going to deal with that when he’s eventually freed is a good question.”

A better question is why the heck the mob was whacking Donaghy in the knee, or, even better, warning him that he was going to get whacked in the knee and shot. Wouldn’t they just, you know, do it?

And why bother with a shovel handle if you’re going to later use a gun?

“If the mob is going to do something that serious, they normally don’t telegraph it; it’s just done,” said Michael Franzese, a former Mafia capo in New York’s Colombo Crime Family who is now an author and inspirational speaker.

“If guys are serious and they want to eliminate someone they’re not going to give them a warning,” Franzese said. “It could’ve been some dumb, low-level guy, but a sophisticated guy from the mob wouldn’t do it that way.”

Franzese offered his own theory about why Donaghy’s knee got hit. Franzese served seven years in prison for crimes ranging from racketeering to game fixing. He said Donaghy called him a number of times before his incarceration and the two spoke at length about gambling, prison and life after it. He found the former ref to be bitter, accusatory and still in a bit of denial.

“Tim didn’t seem like a real likeable guy,” Franzese said.

Franzese figures in prison, Donaghy rubbed someone the wrong way and paid for it.

“Who knows how he carried himself? There are a lot of guys in prison, and on the street, that claim mob ties. He probably came off the wrong way to one of them.”

Zaranek said the “fundamental connection” to the mob is the insider basketball information Donaghy provided two long-time friends resulted in bets that eventually traced back to organized crime in New York.

However, Donaghy cooperated with federal authorities and gave up both of his friends, who also were sent to prison. He offered no knowledge of anyone in New York to the FBI, which he reiterated to Franzese.

“I grilled him on that,” Franzese said. “He kept saying, ‘No, it’s only these two guys that I know.’ ”

If Donaghy didn’t know any mobsters, then why would the mob bother with him? Why not bust his friend’s knee? Even if Donaghy did know names, why attack him if he’d kept silent and actually did time rather than cooperate with the feds?

“I don’t think he had any further information,” Franzese said.

Yeah, well, it’s an exciting story. So is the possible hit waiting for him on the street.

If Donaghy is doing this to help sell his book or kick up a speaking career, a la Franzese, then you can understand. Franzese said Donaghy was obsessed about how he’d support his family after his incarceration. Hiring Executive Prison Consultants was a bold move. Zaranek said they can cost as much as $25,000, although Donaghy may have paid half of that.

Donaghy’s problem is that Franzese was a major crime figure clearing $7 million a week in a variety of illegal businesses. He’s billed as a real life Tony Soprano or Michael Corleone, and boldly quit the mob without federal witness protection.

Donaghy appears to be more wannabe than wise guy.

The manuscript Donaghy wrote in prison has thus far attracted no publishers and does not have a professional writer attached, according to Zaranek.

An acquisitions editor at a major New York publishing house who participated in a call with Donaghy said the book stands little chance. Donaghy had no detailed allegations of game fixing or specific league conspiracies. It was focused on trying to portray himself as just a good guy who made some mistakes.

“His best allegation was that the NBA would send in intermediaries of Stern’s to speak to the refs before a big game and make clear they wanted certain things called a certain way,” said the editor. “Then it would change game to game in a series because Donaghy claimed they wanted a long series.

“But he had nothing specific. He just said some of the [other refs] really listened to it.”

The NBA did not respond for comment on Donaghy, or his potential book allegation, but having supervisors meet with referees is standard practice.

Franzese said they discussed the book and said, “I think the tell-all book is more a reflection of his anger and bitterness to the NBA.”

This isn’t to say Franzese doesn’t believe in rampant illegal activity involving players, coaches and referees. He just doesn’t think Donaghy knows anything about it. Franzese said a smart referee who keeps his business quiet can easily earn six figures a season just making sure the point spread is met on one to two games per week.

“I’d have paid a ref like that a ton,” he said.

A ref like Donaghy, Franzese doesn’t have a lot of time for, at this point. By most accounts, that’s Donaghy though; always talking a bigger game than he could deliver, always trying to appear as more than he actually was.

On Wednesday, Donaghy takes a major step toward freedom, and if his ability to drum up publicity while behind bars is any indication, you’re going to be hearing plenty from him.

David Stern’s nightmare continues, believe it or not.

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Mousavi supporters rally in Iran, mourn dead

Supporters of Mir Hossein Mousavi rallied in the streets of Tehran again Thursday over the disputed presidential election, answering the opposition leader’s call to turn out dressed in black to mourn demonstrators killed in clashes, a witness said.

The protest by opponents of President Mahmoud Ahmadinejad was in open defiance of the country’s supreme leader, who has urged the nation to unite behind the Islamic state. It came a day after tens of thousands marched silently down a main street of the capital, brandishing posters of Mousavi and waving V-for-victory signs, amateur video showed. Some covered their mouths with masks.

International news organizations have been banned from covering the protests over last Friday’s election, which the government declared hard-line Ahmadinejad won by a landslide. Mousavi and his supporters claim the election was rigged and he was the true winner.

The regime has also blocked communication channels, such as Web sites and mobile phone networks, to make it more difficult for Mousavi supporters to organize protests. The mobile phone network in Tehran appeared to go down at the start of Thursday’s demonstration, as it has intermittently since shortly after the election results were announced. Text messaging has been blocked almost constantly since Friday.

On Monday, hundreds of thousands turned out in a huge procession that recalled the scale of protests during the 1979 Islamic Revolution. Seven demonstrators were shot and killed that day by pro-regime militia in the first confirmed deaths during the unrest.

Mousavi’s Web site said he may join the rally Thursday but it was not immediate clear if he attended. The rally began late in the afternoon in downtown Tehran, according to the witness who spoke on condition of anonymity out of safety concerns.

The protest was the fourth straight day of major marches in the capital — rallies that recalled the unrest three decades ago that brought down Western-backed Shah Mohammad Reza Pahlavi and propelled the Islamic clergy to power.

The street protests have presented one of the gravest threats to Iran’s complex blend of democracy and religious authority since the system emerged out of the Islamic revolution. But the chances of bringing down the Islamic system appear remote. The ruling clerics still command deep public support and are defended by Iran’s most powerful military force — the Revolutionary Guard — as well as a vast network of militias.

But Mousavi’s opposition movement has forced the country’s supreme leader, Ayatollah Ali Khamenei, into the center of the escalating crisis, questioning his role as the final authority on all critical issues.

Iran’s main electoral authority has said it was prepared to conduct a limited recount of ballots at sites where candidates claim irregularities. The re-count would be overseen by the Guardian Council, an unelected body of 12 clerics and Islamic law experts close to Khamenei.

Mousavi alleges the Guardian Council is not neutral and has already indicated it supports Ahmadinejad. He wants an independent investigation.

The Council’s spokesman, Abbasali Khadkhodaei, said Thursday they received a total of 646 complaints from the three candidates who ran against Ahmadinejad in the June 12 vote.

On Thursday, state radio reported that the council has invited Mousavi and two other candidates who ran against Ahmadinejad to a meeting early next week. It did not say exactly when or where the meeting would take place.

Another pivotal figure in the escalating drama is former President Hashemi Rafsanjani, who heads the Assembly of Experts — a cleric-run body that is empowered to dismiss the supreme leader.

Rafsanjani was a fierce critic of Ahmadinejad during the election, but has not publicly backed Mousavi. Iranian TV showed pictures of Rafsanjani’s daughter, Faezeh Hashemi, speaking to hundreds of Mousavi supporters on Wednesday.

A group of hard-line students rallied outside the Tehran prosecutor’s office Thursday, accusing Rafsanjani’s daughter and his son, Mahdi, of treason, state radio reported. They said Rafsanjani supports these actions and shouted: “Shame on you, children of Hashemi.”

For the moment, protesters have focused on the results of the balloting rather than challenging the Islamic system of government. But a shift in anger toward Iran’s non-elected theocracy would sharply change the stakes. Instead of a clash over the June 12 election results, it would become a showdown over the foundation of Iran’s system of rule — the almost unlimited authority of the clerics at the top.

On Thursday, Mousavi’s Web site said that both Mousavi and former reformist President Mohammad Khatami sent a joint letter to Iran’s head of judiciary, Ayatollah Mahmoud Hashemi Shahroudi, asking him to take measures to stop violence against protesters by police and help to release detained demonstrators.

The Iranian government has directly accused the United States of meddling in the deepening crisis. A statement by state-run Press TV blamed Washington for “intolerable” interference. The report, on Press TV, cited no evidence.

“Despite wide coverage of unrest, foreign media have not been able to provide any evidence on a single violation in the election process,” state radio said Thursday.

President Barack Obama said he shared the world’s “deep concerns” but it was “not productive, given the history of U.S.-Iranian relations, to be seen as meddling.”

The two countries severed diplomatic relations after militants seized the U.S. Embassy in Tehran following the 1979 Islamic Revolution that toppled the Shah.

A crackdown on dissent continued, with more arrests of opposition figures reported. The country’s most powerful military force — the Revolutionary Guard — said Iranian Web sites and bloggers must remove materials that “create tension” or face legal action.

The government has blocked certain Web sites, such as BBC Farsi, Facebook, Twitter and several pro-Mousavi sites that are vital conduits for Iranians to tell the world about protests and violence. Many other sites, including Gmail and Yahoo, were unusually slow and rarely connect.

Mousavi has condemned the blocking of Web sites, saying the government did not tolerate the voice of the opposition.

In a statement, Google Inc.’s video sharing site, YouTube, said this week it would allow clips depicting violence in Iran because of their journalistic merit.

“In general, we do not allow graphic or gratuitous violence on YouTube,” the company said. “However, we make exceptions for videos that have educational, documentary, or scientific value. The limitations being placed on mainstream media reporting from within Iran make it even more important that citizens in Iran be able to use YouTube to capture their experiences for the world to see.”

Iranian Press TV said Khamenei would lead the weekly prayers ceremony on Friday. There was no immediate word whether Ahmadinejad would attend, but attends the service whenever Khamenei gives it.

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Report: Health care costs to rise 9 pct in 2010

Employers who offer health insurance coverage could see a 9 percent cost increase next year, and their workers may face an even bigger hit, according to a report from consulting firm PricewaterhouseCoopers.

Costs will rise in part because workers worried about losing their jobs are using their health care more while they still have it, the firm said in the report released to The Associated Press. The report also said rising unemployment is driving up medical costs.

Health care reform legislation currently being hashed out in Congress likely will have little impact on next year’s costs, said PWC principal Michael Thompson. But he noted that the intense focus on health care may slow price increases.

“Nobody wants to be front page news when all the lights are shining on your industry,” he said.

The report projects the expected cost increase per person for employee benefits plans, and it factors in things such as price increases, as well as utilization changes.

Businesses confronted with increases will likely pass some of the burden to employees via higher premiums, deductibles or copays, Thompson said.

“If the underlying costs go up by 9 percent, employees’ costs actually go up by double digits,” he said, noting that will have a “major, major impact” when many employers also are freezing or cutting pay.

A total of 42 percent of employers surveyed said they would increase employees’ share of costs.

The 9 percent increase predicted for 2010, however, represents a slight decrease from the 9.2 percent PWC projected for this year, and 9.9 percent predicted for 2008. A growing use of generic drugs has helped tame spending, according to the most recent survey.

Actual cost increases for this year and last were not available.

PWC surveyed more than 500 employers and health insurers. One of the factors it found that may increase medical costs next year is the lingering threat of unemployment. Workers worried about losing their health coverage along with their jobs tend to seek medical care they might otherwise put off.

PWC also said health care providers tend to shift costs to private insurance plans to make up for the revenue drop they see from a rise in the uninsured population or from an increase in the percentage of people covered by Medicaid, the state-federal insurance program for the poor.

Georgetown University health economist Jean Mitchell said she sees one main reason behind any health care cost increase: overutilization. Mitchell, who was not involved with the survey, said health care costs have been rising faster than inflation because the payment system rewards care providers for doing more.

“Until we fix that, we’re never going to be able to rein in health care costs,” she said.

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Gay Rock Pioneers

We’ve come a long way from the Village People to Adam Lambert. Maybe not musically, but certainly socially. California may not know it, but homosexuality is as American as “American Idol.” The times, thankfully, are changing. Lambert announced his sexuality on the cover of “Rolling Stone,” and the world yawned. But coming-out parties were not always so manufactured and celebrated. It took a generation of closeted, ambivalent, and tortured gay musicians to allow Lambert to step out so easily.

There was a time, not so long ago, when a gay singer only had three paths: be a caricature, stay in the closet, or claim “bisexuality,” that catch-all phrase that presumes homosexuality but makes it seem hip. Bisexuals were cool, counter-culture. Bisexuals could sleep with supermodels AND Mick Jagger. Who WOULDN’T want to be bisexual?
Being gay, on the other hand, wasn’t nearly as cool. Especially for a rock star. Gay singers played Vegas or discos. A gay guy would never front a metal band or an alt-rock group. Those guys were straight. Maybe bisexual. But definitely not gay. Dressing up like an Indian at the YMCA? Gay. Wearing leather from head to toe and carrying a riding crop. Not gay. Right?

Here are GetBack’s Gay Rock Pioneers: ten musicians who made it easy for Adam Lambert, Clay Aiken, and every other future “American Idol” runner-up (and, eventually, “AI” winner) to say, “I’m gay.” Now if they could only make music half as good as these guys.
GALLERY: View All of the Gay Rock Pioneers
Freddie Mercury
The beloved Queen frontman is the Susan B. Anthony of gay rock stars. If not for Freddie, the music world would be a closeted, dysfunctional hinterland. Mercury contracted AIDS in 1987 and denied rumors of his illness until a day before his death in 1991. This, despite years of romps at gay bathhouses, an affair with a male record exec, and a five-year live-in relationship. Homophobia and gay-bashing ran deep during the onset of the AIDS epidemic in the ’80s. Mercury can be forgiven for fearing that fans would shun his classic rock band if he came out. Still, he’s a prime example of how far we’ve come.
Rob Halford
Maybe the leather and studs should have been a clue. While right-wing paranoids were accusing Judas Priest of placing secret Satanic messages in their recordings, Halford was busy living a secret life, fairly certain that coming out would jeopardize his macho heavy-metal franchise. He finally did step out in 1998, making the world safe for gays and straights to bang their heads side by side.
David Bowie
Throughout the ’70s, rumors flew about Bowie’s sexual orientation and romantic partners, many of them fueled by the Thin White Duke himself. He declared his bisexuality in a 1972 interview and again in a ‘76 Playboy article. He since said he regretted it. He also has been in a heterosexual marriage with supermodel since 1992.
Elton John
Elton John kept perhaps the biggest secret that wasn’t a secret. His flamboyant stage costumes and diva behavior didn’t leave many guessing about his sexuality. Still, he and his fans had a “don’t ask, don’t tell” policy throughout the ’70s, aside from the occasional requisite “bisexual” statement. He even married female Renate Blauel on Valentine’s Day, 1984, to help feed the straight fantasy. By the ’90s, however, John had a new head of hair and a new gay lover, David Furnish. The two entered a civil partnership in 2005 and are one of rock’s royal gay couples.

Michael Stipe
No one really suspected or cared that R.E.M.’s singer was gay until the 1980s AIDS scare, when suddenly everyone became concerned about Stipe’s skinny frame. Rumors started flying that Stipe deflected with characteristic crypticness. Among his many quotable “is he/isn’t he” lines is this one: the person who deserves to know who he’s sleeping with is the person sitting on his lap. As Stipe began enunciating more clearly on his records, he also became comfortable talking more concretely about his sex life. In 2001 he revealed he was in a relationship with “an amazing man.”
Bob Mould
Husker Du’s ’80s Minneapolis guitar noise was the epitome of teen angst and alienation, inspiring indie and mainstream bands from the Pixies to Green Day. At the center of the fury was a closeted Bob Mould, who was outed in the ’90s, well into his solo career. He is now a public supporter of same-sex marriage.
Melissa Etheridge
Melissa Etheridge is the only woman in our boy’s club of Gay Rock Pioneers for two reasons: she rocks harder than most guys, and she has remained one of the most dedicated gay rights activists of any of her gay musical peers. Since coming out in 1993, Etheridge has shone a spotlight on same-sex marriage, parenthood (she has four kids, including a son whose biological dad is David Crosby), and the movement for equal rights.
Boy George
Boy George is the last of a breed: an openly gay performer whose stage demeanor was so gay that it made his homosexuality a non-issue. It was as if he wasn’t gay at all, the same way that Sammy Davis, Jr., wasn’t really black to racists of our parents’ generation. So what if George was sleeping with drummer Jon Moss? Fans were more concerned with his drug habit, which, sadly, has shown no signs of abating 20 years later.
George Michael
From his “Teen Beat” years in Wham! to his five-o’clock-shadowed heyday as a solo superstar, George Michael had stadiums of girls fooled. He kept his homosexuality a secret for years and claims he was more worried about his mother’s reaction than his fans’. No word how mom reacted to his ‘98 bust in a Beverly Hills public toilet. Michael has been in a long-term relationship with former cheerleader coach Kenny Goss. They share homes in London and Dallas. Michael’s mom knows.

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T-Pain Takes Auto-Tune Country Despite Jay-Z Diss

Did you see T-Pain Auto-Tuning with Taylor Swift Tuesday at the Country Music Awards? During a skit, Taylor Swift has a three-part dream. One of her dreams is to make a rap record.
For some strange reason Taylor’s hip-hop fantasy does not include lyrical rap king Jay-Z who recently sparked a buzz with his song “Death Of Auto-Tune.” Instead, Taylor actually has the nerve to record a track and video with T-Pain, the guy Jay-Z blames on “D.O.A.” for ruining the genre.
In the 90-second video spoof “Thug Story,” cutesy Swift adopts gangsta attire, a white T, diamond-encrusted grill and plenty of bling around her neck as she raps alongside T-Pain about her thuggish tales of living with her parents, baking cookies and not owning a gun.
While the concept is genius, the skit isn’t as funny as it could have been. (See my colleague Wendy Geller’s full CMT review for her take.) Still, the timing is great, considering all the attention Jay-Z has been getting for “D.O.A.”
I know that T-Pain didn’t make this Taylor Swift video to spite Jay-Z. But in a way, it still feels like he did. Just two weeks ago, Jay-Z released a song that says that hip-hop is in a horrible state because of Auto-Tune and names checks T-Pain. And when interviewed by Hot 97’s Angie Martinez, Jay said he would be fine if the song prompted T-Pain to never speak to him again.
But the best part is that T-Pain is completely unfazed.
Not only does T-Pain walk on stage while Jay-Z is performing this diss song at Hot 97’s Summer Jam in New York, a week later, he is on the CMT awards “T-Paining” with country sweetheart Taylor Swift. T-Pain is bringing more mainstream attention to the style and reaching a whole new audience. You never know, a couple country artists might decide to jump on the bandwagon. Maybe this is already in the works.
I just like that T-Pain is focused and does not appear to be bothered by Jay-Z’s opinion. That’s good stuff.
Yeah, I think there is an over saturation of Auto-Tune songs in the marketplace. But I’m not mad at T-Pain. He is not forcing people to work with him and request his features and production work. If I were in his position, I would ride the wave too. He was smart to take the opportunity to work with Taylor Swift. The girl is LARGE.

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Total US jobless rolls drop sharply to nearly 6.7M

The total number of people on the unemployment insurance rolls dropped for the first time since early January, the government said Thursday, while new claims for benefits rose slightly.

The Labor Department said the total unemployment insurance rolls fell by 148,000 to 6.69 million in the week ending June 6, the largest drop in more than seven years. The decline is a sign that layoffs are easing.

The drop also breaks a string of 21 straight increases in continuing claims, the last 19 of which were records. A dip in continuing claims several weeks ago was later revised higher.

The department also said initial claims rose 3,000 to a seasonally adjusted 608,000 last week, above analysts’ expectations. The four-week average, which smooths fluctuations, fell by 7,000 to 615,750. Continuing claims data lags initial claims by one week.

The drop in continuing claims could signal a slowing in the rise of the unemployment rate, which reached a 25-year high of 9.4 percent in May. Many economists forecast the rate could reach 10 percent by the end of the year.

Still, millions of Americans are receiving unemployment compensation under an emergency federal program authorized by Congress last summer and extended by the Obama administration’s stimulus package.

About 2.36 million people received benefits under that program in the week ending May 30, an increase of more than 102,000 from the previous week. That’s in addition to the 6.7 million people receiving benefits under the 26-week program typically provided by states.

Economists also are closely watching the level of first-time claims for signs the economy will recover by mid-summer, as many analysts predict.

“If the labor market is indeed stabilizing, we should see a marked decline in new unemployment filings in the weeks ahead,” economists at Wrightson ICAP wrote in a note to clients this week.

The four-week average of claims has dropped by about 40,000 from nearly 659,000 in early April, its peak for the current recession.

But many economists want to see it fall further. Bruce Kasman, chief economist at JPMorgan Chase & Co., said Tuesday that a drop in the four-week average to 580,000 by next month would be sufficient to declare the recession over.

Kasman is chairman of the American Bankers Association’s economic advisory committee, a group of economists for large banks that this week predicted the economy will recover in the third quarter. The Federal Reserve also expects the economy to begin growing again this year.

First-time jobless claims are a measure of the pace of layoffs and are seen as a timely, if volatile, indicator of the economy’s health. Initial claims stood at 390,000 a year ago.

Consumers and businesses have cut back on spending in response to the bursting of the housing bubble and the financial crisis, sending the economy into the longest recession since World War II. Companies have cut a net total of 6 million jobs since the downturn began in December 2007, in an effort to reduce costs.

Still, job cuts are slowing. The Labor Department said employers eliminated 345,000 positions in May, about half the monthly average of jobs lost in the first quarter.

More job cuts have been announced in the past week. MySpace, the social networking Web site owned by News Corp., said Tuesday it will cut nearly 30 percent of its work force, or about 420 jobs.

And Cessna Aircraft Co., the nation’s largest builder of corporate jets, said Friday it will cut 1,300 jobs by August, on top of 6,900 layoffs that it previously announced.

Among the states, Pennsylvania reported the largest increase in initial claims for the week ending June 6. It attributed the increase of 6,861 claims to layoffs in the construction, service and transportation industries. The next largest increases were in Florida, Ohio, California and New York.

Arkansas had the largest decrease of 1,206, which it attributed to fewer layoffs in the auto industry. The next largest drops were in Puerto Rico, Wisconsin, Arizona and Nebraska.

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20 including Somali official killed in bombing

A suicide bombing outside a hotel in western Somalia killed at least 20 people Thursday including the national security minister. The Somali president accused al-Qaida of being behind the attack.

Witness Mohamed Nur said a small car headed toward the gate of the Medina Hotel in Belet Weyne, then drove into vehicles leaving the hotel and exploded.

Information Minister Farhan Ali Mohamud announced the death of National Security Minister Omar Hashi Aden but declined to give any other details.

Somalia’s president accused al-Qaida of being behind the bombing, which he said also killed a senior Somali diplomat.

“It was an act of terrorism and it is part of the terrorist attack on our people,” Sheik Sharif Sheik Ahmed told journalists in the capital. “Al-Qaida is attacking us.”

Experts have expressed fears that foreign Islamic militants could use Somalia as a base for terror in the region.

Al-Shabab, an extremist Islamist group in Somalia, is considered by the U.S. State Department to be a terrorist organization with links to al-Qaida. Al-Shabab has denied the links.

The United States accuses al-Shabab of harboring al-Qaida-linked terrorists who allegedly blew up U.S. Embassies in Kenya and Tanzania in 1998. The United States has attempted to kill suspected al-Qaida members in Somalia several times with airstrikes.

Somalia has not had an effective government for 18 years after warlords overthrew a longtime dictator and plunged the country into anarchy and chaos. The lawlessness has also allowed piracy to thrive off the country’s coast, making Somalia the world’s worst piracy hotspot.

Islamic insurgents have been trying to topple Somalia’s weak, Western-backed government for more than two years. There was a surge of violence in May, during which almost 200 people were killed. The U.N. says the conflict has displaced more than 122,000 people.

At least 17 people were killed in overnight battles between Islamic insurgents and government forces in Mogadishu, witnesses said Thursday.

Information Minister Farhan Ali Mohamed denied the government targeted residential areas, adding government forces were only defending themselves.

An insurgent spokesman, Hassan Mahdi, said his side did not attack any government positions but were defending themselves. Mahdi said once the insurgents repulsed the government forces then the government side started shelling residential areas.

Neither spokesman gave any casualty figures. Mogadishu does not have any clearly defined battlegrounds and both sides’ forces are located close to residential areas.

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Democrats plan to pass financial overhaul quickly

Democratic leaders have committed to enacting by the end of the year the biggest regulatory revision to the U.S. financial system since the 1930s — an undertaking so ambitious it has some lawmakers worried about missteps.

“We have to evaluate it, weigh it, slow it down and make sure we do it right,” said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee. “Because if we don’t, we will pay dearly.”

Treasury Secretary Timothy Geithner was expected to outline the administration’s plan on Thursday before the Senate panel and the House Financial Services Committee.

The proposal is aimed at filling in regulatory gaps and increasing oversight of the financial markets to prevent another economic calamity.

“We don’t want to stifle innovation,” said President Barack Obama in a speech Wednesday.

“But I’m convinced that by setting out clear rules of the road and ensuring transparency and fair dealings, we will actually promote a more vibrant market,” he added.

Obama wants to empower the Federal Reserve to oversee the largest and most influential financial firms. He also wants to create a council of federal regulators, chaired by the treasury secretary, to monitor risk across the broader market.

A new consumer protection agency would be created to prevent deceptive practices by such companies as credit card lenders and mortgage brokers.

The plan comes amid public skepticism about the way Obama’s handling some aspects of the economic crisis. A substantial majority of Americans — 60 percent — believe he doesn’t have a strategy for dealing with the budget deficit, and almost half disapprove of Obama’s handling of problems facing the auto industry, according to a New York Times/CBS News poll published Thursday.

Still, 57 percent approve of the president’s overall handling of the economy, according to the telephone survey of 895 adults contacted Friday through Tuesday.

Obama’s lofty job approval rating slipped a bit in a new Wall Street Journal/NBC News poll. The poll found 56 percent approved of the job Obama was doing, down from 61 percent in April.

Obama’s financial overhaul proposal was well-received among Democrats on Capitol Hill, who said it would prevent another round of bank bailouts and protect consumers from predatory lending practices.

“We regard this as very pro-market,” said Rep. Barney Frank, D-Mass., who chairs the House Financial Services Committee. “Unless you have investors that are well-protected, you don’t have a market.”

Senate Banking Committee Chairman Christopher Dodd said there would be “some debate,” but “I think we’re all seeking the same results.”

But a swift legislative endorsement of the plan could be difficult.

Dodd, D-Conn., is leading a major overhaul of the nation’s health care system, while the Senate also faces a debate on whether to confirm Supreme Court nominee Sonia Sotomayor.

In addition to the Senate’s packed schedule, several lawmakers, including Dodd, have questioned whether Obama’s proposal relies too heavily on the Federal Reserve and expressed concern that the Fed, as an independent agency, doesn’t answer to Congress.

“It’s certainly worthy of a thorough and full-throated debate and discussion as to whether or not that’s a better alternative than vesting the Fed,” Dodd told reporters after Obama’s speech. “There’s not a lot of confidence in the Fed at this point.”

Geithner told reporters at a briefing that the administration had looked at a range of alternatives to giving the Fed expanded powers and had come to the conclusion that “we do not believe there is a plausible alternative.”

House Republicans said Obama’s plan would go too far and bury the market in unnecessary regulation.

Senate Republicans were less dismissive but stopped far short of endorsing the proposal. Shelby and Sen. Judd Gregg, R-N.H., questioned aspects of the plan but said they hoped to work with Democrats to make it stronger.

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Retailers Head for Exits in Detroit

They call this the Motor City, but you have to leave town to buy a Chrysler or a Jeep.

Borders Inc. was founded 40 miles away, but the only one of the chain’s bookstores here closed this month. And Starbucks Corp., famous for saturating U.S. cities with its storefronts, has only four left in this city of 900,000 after closures last summer.
There was a time early in the decade when downtown Detroit was sprouting new cafes and shops, and residents began to nurture hopes of a rebound. But lately, they are finding it increasingly tough to buy groceries or get a cup of fresh-roast coffee as the 11th largest U.S. city struggles with the recession and the auto-industry crisis.

No national grocery chain operates a store here. A lack of outlets that sell fresh produce and meat has led the United Food and Commercial Workers union and a community group to think about building a grocery store of its own.

One of the few remaining bookstores is the massive used-book outlet John K. King has operated out of an abandoned glove factory since 1983. But Mr. King is considering moving his operations to the suburbs.

Last week, Lochmoor Chrysler Jeep on Detroit’s East Side stopped selling Chrysler products, one of the 789 franchises Chrysler Group LLC is dropping from its retail network. It was Detroit’s last Chrysler Jeep store.

“The lack of retail is one of the biggest challenges the city faces,” said James Bieri, president of Bieri Co., a Detroit-based real-estate brokerage. “Trying to understand how to get it to come back will be one of the most important keys to its resurgence — if it ever has one.”

Detroit’s woes are largely rooted in the collapse of the auto industry. General Motors Corp., one of downtown’s largest employers and the last of the Big Three auto makers with its headquarters here, has drastically cut white-collar workers and been offered incentives to move to the suburbs. Other local businesses that serviced the auto maker, from ad agencies and accounting firms to newsstands and shoe-shine outlets, also have been hurt.

The city’s 22.8% unemployment rate is among the highest in the U.S.; 30% of residents are on food stamps.

“As the city loses so much, the tax base shrinks and the city has to cut back services,” said Margaret Dewar, a professor of urban planning at the University of Michigan. That causes such hassles for retailers as longer police-response times, as well as less-frequent snow plowing and trash pickup.
While all of southeast Michigan is hurting because of the auto-industry’s troubles, Detroit’s problems are compounded by decades of flight to the suburbs.

Hundreds of buildings were left vacant by the nearly one million residents who have left. Thousands of businesses have closed since the city’s population peaked six decades ago.

Navigating zoning rules and other red tape to develop land for big-box stores that might cater to a low-income clientele is daunting.

The lack of grocery stores is especially problematic. The last two mainstream chain groceries closed in 2007, when The Great Atlantic & Pacific Tea Co. sold most of the southeast Michigan stores in its Farmer Jack chain to Kroger Corp., which declined to purchase the chain’s two Detroit locations, causing them to close.

A 2007 study found that more than half of Detroit residents had to travel twice as far to reach a grocery store than a fast-food outlet or convenience store.

Michelle Robinson, 42 years old, does most of her shopping at big-box stores in the suburbs. When visitors staying at the hotel near her downtown office ask where to shop, she sends them to a mall in Dearborn, 12 miles away.

A few retailers are thriving. Family Dollar Stores Inc. has opened 25 outlets since 2003. A handful of independent coffee shops and a newly opened Tim Horton’s franchise cater to workers downtown.

Discount grocer Aldi Inc. opened stores in the city in 2001 and 2005. A spokeswoman said the chain is “very bullish” on Detroit. Farmer’s markets draw crowds looking for fresh produce.

Olga Stella, an official at the Detroit Economic Growth Corporation, works to persuade businesses to move to the city. She says companies have underestimated Detroit’s economic potential and that Aldi and Family Dollar are proof there’s money to be made here.

Meanwhile, the former Lochmoor Chrysler Jeep is now Lochmoor Automotive Group, a used-car dealership and repair shop. Gina Russo, daughter of the dealer’s longtime owner, is being groomed to take over the family business. She has agreed to start selling small pickup trucks made by India’s Mahindra & Mahindra Ltd.

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