Retailers facing ‘critical’ time







Nearly 140 retailers are in a “critical condition” despite Christmas being their peak trading time, business recovery firm Begbies Traynor has said.






Its UK business solvency survey found 13,700 more firms were in distress, a 35% rise in the quarter to December.


It said many could struggle to meet their quarterly rent payment, due on Christmas Day.


Begbies Traynor has predicted a rise in the number of both national and regional retail insolvencies in 2013.


The report suggested the worst affected retailers include specialists in books, news and stationery, where distress signals were 85% higher on the previous quarter.


Online retailers, supermarkets and shops selling decor and household goods have meanwhile, seen sales figures improve.


Traders of furniture, lighting, home decorations, hardware and paints have seen a combined 13% fall in distress levels in the last three months, as homeowners decide to “improve, not move”.


‘Window shopping”


Julie Palmer, partner at the company, said many consumers were browsing in high street stores before finding the product they want for a better price on the internet.


“While book sales usually peak in the run up to Christmas, the move by consumers to use traditional book retailers simply for window shopping before purchasing online at discount prices has seriously impacted this sector, which has already suffered considerably from the growing popularity of e-book readers,” she said.


Pharmacies, personal care outlets, and off-licences have also seen their distress signals rise.


Begbies Traynor said this was thanks to consumers being more careful with what they spent their money on.


The latest high-profile high street casualty was electrical chain Comet, which closed all its 236 stores this month.


Ms Palmer added: “Though the performance of national retailers is well documented, it represents just the tip of the iceberg with thousands of smaller and specialist retailers struggling to stay afloat in today’s austerity Britain.


She said that some may survive, thanks to last-minute Christmas shopping, but that others would be hit by the quarterly rent day, which falls on Christmas Day, as well as fierce competition and pressure to keep profit margins low.


The predicts a number of national or regional retail chains could fail in the next 12 months.


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How to Get Free Last-Minute Shipping






First, the bad news: the cut off for free shipping on most online sites was Tuesday, Dec 18th. But the good news – we’ve got some sneaky ways to finagle free rush shipping and a list of sites still offering free shipping guaranteed to arrive before December 25th.


Free Rush Shipping
Some of the biggest online retailers are still offering free last minute shipping:






  • Barnes & Noble – free shipping on Nook HD through Dec. 22

  • MacMall – free 2-day shipping on orders over $ 299 and under 25lbs – through 6 p.m. PST Dec. 22.

  • Macy’s – free shipping on orders over $ 99. Place order 11:59 p.m. EST Dec. 20.

  • The Northface – free 2-day shipping on everything through 11:59 p.m. Dec. 19.

  • Walmart.com has extended free shipping through December 19th on some items (check product page for eligibility)

  • Overstock.com – free shipping on select gifts. Place order by Dec. 22 to receive by Christmas.

  • Newegg   Free 2-Day shipping on over 200 items

  • Target – free shipping on Daily Deals

  • Victoria’s Secret – free shipping on orders over $ 100 using code “SHIP12.” Order by 5 p.m. EST on Dec. 20.

  • Zappos – free shipping for all items with guaranteed Christmas delivery if ordered by 11:59 p.m. PST Dec. 22.

And the biggest of the big online retailers, Amazon, has a limited set of items available for free expedited shipping. These include jewelry, watches, clothing, video games, laptops, headphones, and kitchen items.


[Related: Great Gifts for Under $ 25]


But since many of the above deals are limited to select items, take a look at…


How to Get Free 2-Day Shipping on Just About Everything
Amazon Prime is a yearly subscription service. In exchange for a $ 79 fee, you get free 2 day shipping all year long. And yes, that also applies at Christmas (must order by 3 p.m. EST Dec. 22 to receive on time). Best deal is that you can get a free 6-month trial.a1b8f  free shipping fp How to Get Free Last Minute Shipping


And here’s the real sneaky surprise: Do you have a family member who already belongs to Prime? They can nominate up to four people for the same free shipping benefits. Prime members nominate someone by going to their account, clicking “Settings” and “Manage Prime Membership.”


Also, Amazon Student is a free 6-month membership to Prime with all the benefits, providing you have an email address that ends in .edu.


But you don’t have to limit yourself to Amazon. Shoprunner.com also offers free 2-day shipping, though the membership service costs $ 8.95 a month – so not entirely free, but if you have numerous items still to buy, you could save a bundle.  And Shoprunner has tons of participating online retailers like Toys R Us, Sports Authority, Claire’s, PetSmart and EMS. Say you want to buy something from PetSmart.com, if you sign in with Shoprunner, many of the items on the site will be eligible for free 2-day shipping. One more thing to try: I was able to sign up for a free 1-year membership to Shoprunner using the promo code RUNNER. The site implied I had to be an American Express member, but it never asked for my details about the credit card, and now I have a membership. Good luck.


Ship to Store
Finally, the best last-minute option for many is to ship to store. You peruse all the options from home, pay online, and then pick up your selection at your local store. Tons of big retailers offer this service, and it guarantees your item will be in stock and waiting for you at customer service. Major retailers offering free Ship to Store include:


  • Best Buy

  • Target

  • Toys R Us

  • Walmart

  • Sears

[Related: Best E-Reader for Under $ 100]


Brad Marshland contributed to this story.


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Barbra Streisand goes on a “Guilt Trip” with Seth Rogen






LOS ANGELES (Reuters) – Road-trip movies have been dominated by teenagers on wild adventures or “Hangover” style bro-mances, but Barbra Streisand and Seth Rogen are driving the genre into new territories with mother-son comedy “The Guilt Trip” to usher in the holiday season.


“The Guilt Trip,” which hits U.S. theaters this week, follows struggling novice inventor Andy (Seth Rogen), who is guilted in to bringing his mother on a work-related road-trip across the country.






Streisand, 70, who broke out as an actress in 1968′s comedy “Funny Girl,” returns to her comedic roots as Joyce, Andy’s overbearing mother, who becomes closer to her son over the duration of their tense and comedic adventures on the road.


The actress told reporters at a recent press conference that it was her son Jason Gould who convinced her to do the project after reading the script with her, and Streisand found a deeper connection to the story.


“Mothers develop guilt trips,” Streisand said. “(When my own son was young) I was working a lot and I felt guilty as a parent that I cannot pick (up) my son everyday from school, bake him cookies, that kind of thing. And so you try and compensate.”


“I thought it was interesting to investigate this – trying to be his friend versus a mother…this movie, it hit on all those things that I thought I could explore.”


Rogen, 30, also related closely to the mother-son storyline, saying that while he has a “good relationship” with his own mom, even she can drive him “crazy” sometimes.


“That dynamic where your mother is trying and the more she tries, the more it bugs you, the more it bugs you, the more she tries….All that is very, at times, real to my relationship with my mother,” Rogen said.


STAYING OUT OF THE SPOTLIGHT


Streisand, who is one of the few actresses to win a Tony, Emmy, Grammy and Oscar award over her six-decade career, last took a leading role in 1996′s “The Mirror Has Two Faces,” which she also directed and produced.


The actress initially had reservations about signing onto the movie and said she gave the movie studio numerous clauses “because I kept wanting an out some way.”


Her requests included having a set “no more than 45 minutes away from my house” and later morning starts, as “my husband (James Brolin) and I stay up until two or three in the morning so we don’t function…at six in the morning.”


Streisand’s requests were granted, and thus came about a road trip movie where the actors never actually went on the road. The film ended up largely being shot on a sound stage with Streisand and Rogen in a car against a green screen while backdrops of landmarks such as the Grand Canyon, were added in later.


With the exception of a supporting role as Ben Stiller’s mother in 2004′s “Meet The Fockers” and 2010′s “Little Fockers,” Streisand has stayed out of the spotlight in recent years, and attributes that as one of the keys to her long-standing success.


“I don’t make many movies and I don’t make that many appearances. Less is more. Maybe that keeps a little mystery,” Streisand said, adding that she likes to “stay at home a lot.”


While she hasn’t signed onto another project just yet, she said what keeps her satisfied as an artist is engaging in work that is “private” as opposed to being on public display.


“I love recording and I love making films as a filmmaker,” she said. “Because it uses every bit of what you have experienced or know, whether it’s graphics, composition, decorating, psychology, storytelling, whatever it is. It’s a wonderful thing.”


(Editing by Piya Sinha-Roy and Lisa Shumaker)


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Few tests done at toxic sites after superstorm






OLD BRIDGE, N.J. (AP) — For more than a month, the U.S. Environmental Protection Agency has said that the recent superstorm didn’t cause significant problems at any of the 247 Superfund toxic waste sites it’s monitoring in New York and New Jersey.


But in many cases, no actual tests of soil or water are being conducted, just visual inspections.






The EPA conducted a handful of tests right after the storm, but couldn’t provide details or locations of any recent testing when asked last week. New Jersey officials point out that federally designated Superfund sites are EPA’s responsibility.


The 1980 Superfund law gave EPA the power to order cleanups of abandoned, spilled and illegally dumped hazardous wastes that threaten human health or the environment. The sites can involve long-term or short-term cleanups.


Jeff Tittel, executive director of the Sierra Club in New Jersey, says officials haven’t done enough to ensure there is no contamination from Superfund sites. He’s worried toxins could leach into groundwater and the ocean.


“It’s really serious and I think the EPA and the state of New Jersey have not done due diligence to make sure these sites have not created problems,” Tittel said.


The EPA said last month that none of the Superfund sites it monitors in New York or New Jersey sustained significant damage, but that it has done follow-up sampling at the Gowanus Canal site in Brooklyn, the Newtown Creek site on the border of Queens and Brooklyn, and the Raritan Bay Slag site, all of which flooded during the storm.


But last week, EPA spokeswoman Stacy Kika didn’t respond to questions about whether any soil or water tests have been done at the other 243 Superfund sites. The agency hasn’t said exactly how many of the sites flooded.


“Currently, we do not believe that any sites were impacted in ways that would pose a threat to nearby communities,” EPA said in a statement.


Politicians have been asking similar questions, too. On Nov. 29, U.S. Sen. Frank Lautenberg, D-N.J., wrote to the EPA to ask for “an additional assessment” of Sandy’s impact on Superfund sites in the state.


Elevated levels of lead, antimony, arsenic and copper have been found at the Raritan Bay Slag site, a Superfund site since 2009. Blast furnaces dumped lead at the site in the late 1960s and early 1970s, and lead slag was also used there to construct a seawall and jetty.


The EPA found lead levels as high as 142,000 parts per million were found at Raritan Bay in 2007. Natural soil levels for lead range from 50 to 400 parts per million.


The EPA took four samples from the site after Superstorm Sandy: two from a fenced-off beach area and two from a nearby public playground. One of the beach samples tested above the recreational limit for lead. In early November, the EPA said it was taking additional samples “to get a more detailed picture of how the material might have shifted” and will “take appropriate steps to prevent public exposure” at the site, according to a bulletin posted on its website. But six weeks later, the agency couldn’t provide more details of what has been found.


The Newtown Creek site, with pesticides, metals, PCBs and volatile organic compounds, and the Gowanus Canal site, heavily contaminated with PCBs, heavy metals, volatile organics and coal tar wastes, were added to the Superfund list in 2010.


Some say the lead at the Raritan Bay site can disperse easily.


Gabriel Fillippeli, director of the Center for Urban Health at Indiana University-Purdue University Indianapolis, said lead tends to stay in the soil once it is deposited but can be moved around by stormwaters or winds. Arsenic, which has been found in the surface water at the site, can leach into the water table, Fillippeli said.


“My concern is twofold. One is, a storm like that surely moved some of that material physically to other places, I would think,” Fillippeli said. “If they don’t cap that or seal it or clean it up, arsenic will continue to make its way slowly into groundwater and lead will be distributed around the neighborhood.”


The lack of testing has left some residents with lingering worries.


The Raritan Bay Slag site sits on the beach overlooking a placid harbor with a view of Staten Island. On a recent foggy morning, workers were hauling out debris, and some nearby residents wondered whether the superstorm increased or spread the amount of pollution at the site.


“I think it brought a lot of crud in from what’s out there,” said Elise Pelletier, whose small bungalow sits on a hill overlooking the Raritan Bay Slag site. “You don’t know what came in from the water.” Her street did not flood because it is up high, but she worries about a park below where people go fishing and walk their dogs. She would like to see more testing done.


Thomas Burke, an associate dean at the Johns Hopkins School of Public Health, says both federal and state officials generally have a good handle on the major Superfund sites, which often use caps and walls to contain pollution.


“They are designed to hold up,” Burke said of such structures, but added that “you always have to be concerned that an unusual event can spread things around in the environment.” Burke noted that the storm brought in a “tremendous amount” of water, raising the possibility that groundwater plumes could have changed.


“There really have to be evaluations” of communities near the Superfund sites, he said. “It’s important to take a look.”


Officials in both New York and New Jersey note they’ve also been monitoring less toxic sites known as brownfields and haven’t found major problems. The New York DEC said in a statement that brownfields in that state “were not significantly impacted” and that they don’t plan further tests for storm impacts.


Larry Ragonese, a spokesman for the New Jersey Department of Environmental Protection, said the agency has done visual inspections of major brownfield sites and also alerted towns and cities to be on the lookout for problems. Ragonese said they just aren’t getting calls voicing such concerns.


Back at the Raritan Bay slag site, some residents want more information. And they want the toxic soil, which has sat here for years, out.


Pat Churchill, who was walking her dog in the park along the water, said she’s still worried.


“There are unanswered questions. You can’t tell me this is all contained. It has to move around,” Churchill said.


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Obama starts Hawaiian vacation, leaving Washington on ice






KAILUA, Hawaii (Reuters) – Taking what promised to be a very brief Christmas break from the ongoing struggle to avoid the “fiscal cliff” of tax hikes and spending cuts, President Barack Obama relaxed with his family on Saturday at a beach retreat in Hawaii.


Congress was to return to Washington next Thursday and Obama has pledged to work with lawmakers to strike a deal to avoid the economic shock from tax and spending measures set to take effect on January 1 if a deal can’t be reached, which many economists say could push the U.S. economy back into recession.






The president is expected to indulge in some of his favorite pastimes on the island where he was born and raised: golf, an expedition for the local treat “shave ice,” and an evening out with family and friends. He hit the links at the nearby Marine Corps base under sunny skies on Saturday afternoon.


On Sunday, he is expected to attend funeral services for Senator Daniel Inouye, the long-serving Democrat from Hawaii who died on Monday, but the president has no other public events on his schedule.


On Saturday, Democratic Senate Majority Leader Harry Reid said he had urged Hawaii Governor Neil Abercrombie, a Democrat, to name Inouye’s successor “with due haste.”


“It is critically important to ensure that the people of Hawaii are fully represented in the pivotal decisions the Senate will be making before the end of the year,” Reid, of Nevada, said in a statement.


Obama’s idyll was not expected to last more than four days, and he will likely retrace the more than 4,800-mile trip from the Aloha State to Washington after Christmas in a bid to cut a deal with Republicans, who failed on Thursday to agree on competing tax and spending bills of their own.


Before leaving Washington on Friday evening, Obama urged Congress to come up with a stopgap measure to spare the U.S. economy the jolt of $ 600 billion in tax increases and spending cuts economists say would likely derail the economy.


The president asked lawmakers for a stripped-down deal to continue lower tax rates on middle income earners and extend unemployment insurance benefits to avoid some of the worst effects of the “fiscal cliff” in the new year.


Obama’s family holiday, in a quiet beach front community on the other side of the island from bustling Honolulu, should also provide some respite from the somber focus on the Newtown, Connecticut, school massacre and the consequent bitter debate over measures to change America’s gun culture and prevent violence.


The president’s weekly radio and Internet addresses, which in recent weeks have centered on his argument for extending tax cuts for all but the wealthiest Americans, on Saturday offered holiday greetings to U.S. military forces.


(Reporting By Mark Felsenthal and Richard Cowan; Editing by Vicki Allen, Todd Eastham and Paul Simao)


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Facebook Poke App Is Frustrating as Hell






Facebook Poke: Startup Screen


Poke, the new iPhone app from Facebook, lets you send short messages, photos and videos to friends that automatically self destruct after a few seconds. If you have the Facebook app on your phone already, logging in is effortless.


Click here to view this gallery.






[More from Mashable: 2012′s Biggest Winners and Losers]


I was never a big poker on Facebook. When I joined the social network in 2007, giving someone a “poke” was still pretty common. It was a connection that stopped short of an actual friend request, a way to test the waters of a reconnection with, say, an ex.


The new app, Facebook Poke (as it’s listed in the App Store), doesn’t have much in common with poking of old. It’s essentially a clone of other texting apps where all the messages have a built-in self-destruct. It’s ideal for clandestine activities, shall we say.


[More from Mashable: Facebook Introduces Snapchat Competitor, Poke]


Here’s how it works: Let’s say you have a sudden urge to send one of your Facebook friends a photo of a, er, cucumber. But you don’t want to just send them a cucumber pic that they could post and re-share to the world. Poke lets you send the pic, but the recipient will only have 1, 3, 5 or 10 seconds to view your majestic vegetable. And they need to press and hold the screen while viewing, or the pic goes away.


You can send photos, videos or text messages via Poke, although you can’t use it for anything too elaborate since the message content lasts 10 seconds maximum. After that, boom. The message, whatever it was, is gone forever. There isn’t even a record on the sender’s phone (although a log of who you’ve poked and who’s poked you still remains).


Poke is pretty unforgiving. The recipient must press and hold the notification to see the content. Once you touch, the countdown starts, and there’s no going back — even if you let go. Videos just stop, with no chance of re-watching. You slip, and you’re done.


I suspect Poke will engender a lot of frustration because of this limitation. You feel as if it should at least pause the countdown when you remove your finger.


The app also lets you just “poke” people — meaning send a message with no content — about the only way the app is similar to the old act of poking. Those are just simple notifications, and don’t expire.


It gets more annoying: All your poke recipients need to download the app to see them. Poking only works on mobile right now, and Facebook’s been careful to ensure notifications for incoming pokes only appear in its mobile apps.


Checking out your profile on the web won’t reveal any trace of poking. On a smartphone, a note appears that encourages pokees to download the app.


What if someone does a screengrab of your poke, turning it into something more permanent? There’s nothing you can do, but the app will inform you if someone does that, with a “flash” icon beside their name in your feed. If you see your ephemeral wild moment appear on Tumblr the next day, at least you’ll know who to blame.


Poke isn’t that intuitive. It displays some basic instructions when you first log in, but would benefit greatly from one of those tutorial overlays that have become ubiquitous among iOS apps. Also, I find it odd that your front-facing camera isn’t selected by default. But maybe my expectation for the subject material of most pokes is off the mark.


You can add text and colored line drawings to any pics you send. That’s helpful to get the attention on the thing in the photo you really want the person to look at in those three seconds of poke life.


At first I found it frustrating that Poke doesn’t let you take horizontal photos or videos. But that’s actually a good idea. If you think about it, if the only people seeing this content are people glancing at their phones for a few seconds, so vertical pics make total sense. In the time it took a person to turn their phone and the accelerometer to react, the message will probably be gone. If you want masterpieces, try Flickr.


Bottom line: Poke is an annoying app, but it probably has more to do with the nature of what it’s trying to do than any design flaws. How do you like Poke? Let us know in the comments.


Image courtesy of iStockphoto, jcsmily


This story originally published on Mashable here.


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Reports: Rolling Stones guitarist Wood ties knot






LONDON (AP) — Two British newspapers say Rolling Stones guitarist Ronnie Wood has married his fiancee Sally Humphreys at a ceremony at London‘s Dorchester Hotel.


The Sun and the Daily Mirror carried photographs of the 65-year-old rocker with a pale boutonniere and a dark blue suit, and his 34-year-old bride in a traditional white gown and a clutch of matching white flowers.






The Sun quoted Wood as saying “I’m feeling great” as he and his bride kissed and posed for pictures outside the exclusive hotel in London’s upscale Mayfair district.


The newspapers said the guests included singer Rod Stewart and his wife Penny Lancaster as well as ex-Beatle Paul McCartney and his wife Nancy Shevell.


A call and an email to Wood’s U.S.-based agent weren’t immediately returned Saturday.


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No new vote in Venezuela if Chavez sworn in late: official






CARACAS (Reuters) – Venezuela will not call fresh elections if Hugo Chavez‘s cancer prevents him from taking office by January 10, the head of Congress said on Saturday, despite a constitutional mandate that the swearing-in take place on that date.


Chavez is recovering in Cuba from a six-hour cancer operation that followed his October re-election. The socialist leader has not been heard from for nearly two weeks, raising doubts as to whether he will be fit to continue governing.






Opposition leaders may pounce on the issue of the swearing-in date to demand that authorities call fresh elections because of Chavez’s apparently critical state of health due to an undisclosed type of cancer in the pelvic region.


A constitutional dispute over succession could lead to a messy transition toward a post-Chavez era in the South American nation with the world’s largest oil reserves.


“Since Chavez might not be here in on January 10, (the opposition) hopes the National Assembly will call elections within 30 days. They’re wrong. Dead wrong,” said Diosdado Cabello, the National Assembly’s president and one of Chavez’s closest allies, during a ceremony to swear in a recently elected governor.


“That’s not going to happen because our president is named Hugo Chavez, he was reelected and is in the hearts of all Venezuelans.”


He suggested Chavez may need more time to recover from his surgery. Officials in recent weeks have recognized his condition was serious, and the garrulous leader’s unusual silence has built up alarm even among supporters.


The constitution says “the elected candidate will assume the Presidency of the Republic on January 10th of the first year of their constitutional term, via swearing-in by the National Assembly.”


It says new elections are to be called if the National Assembly determines a “complete absence” of the president because of death, physical or mental impairment or abandoning the job.


The opposition believes it would have a better shot against Chavez’s anointed successor, Vice President Nicolas Maduro, than against the charismatic former soldier who for 14 years has been nearly invincible at the ballot box.


Chavez allies want to avoid a public debate over the president’s health because his cancer has been treated as a state secret. His treatment in communist Cuba has helped keep his condition under wraps, and the Venezuelan government has given only terse and cryptic statements about his post-operation recovery.


Constitutional lawyer Jose Vice Harold said he expects the Supreme Court, which is controlled by Chavez allies, will rule that Chavez may extend his existing term without having to be sworn in with the expectation that he will eventually recover.


“What they are doing is taking the debate over succession from the National Assembly, which is where it belongs, and moving it to the Supreme Court where behind closed doors they can decide the next steps are,” said Harold, a Chavez critic and constitutional law professor as the Universidad Catholic Andres Bellow.


Chavez has vastly expanded presidential powers and built a near-cult following among millions of poor Venezuelans, who love his feisty language and oil-financed social welfare projects.


Opposition leaders are smarting from this month’s governors elections in which Chavez allies won 20 of 23 states. They are trying to keep attention focused on day-to-day problems from rampant crime to power outages.


(Reporting by Brian Ellsworth; Editing by Paul Simao)


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Scenarios: Seven ways the US ‘fiscal cliff’ crisis could end






WASHINGTON (Reuters) – So what now?


The U.S. House of Representatives‘ rejection of a bill to raise taxes on just 0.18 percent of Americans – those making more than $ 1 million a year – has raised questions about the Republican-led chamber’s ability to approve any plan to avert the looming “fiscal cliff.”






Unless President Barack Obama and the U.S. Congress can forge a deal during the Christmas and New Year’s holiday season, the largest economy in the world could be thrust back into a recession because of the steep tax increases and spending cuts that are due to begin in January.


The threat of across-the-board government spending cuts and tax increases – about $ 600 billion worth – was intended to shock the Democratic-led White House and Senate and the Republican-led House into moving past their many differences to approve a plan that would bring tax relief to most Americans and curb runaway federal spending.


For weeks, Obama and House Speaker John Boehner, the top Republican in Congress, have struggled to find a compromise.


But after a glimmer of hope that a deal was close early this week, Boehner – apparently under pressure from anti-tax House Republicans aligned with the conservative Tea Party movement – pressed the “pause” button on negotiations. He then tried to push a backup plan through the House late on Thursday, only to see his fellow Republicans kill it.


Where do Obama and Congress go from here? Here are some possible scenarios.


* Obama and Boehner go back into their secret negotiations.


Before Boehner started touting his failed “Plan B” to boost taxes on those who make more than $ 1 million, he and Obama were moving closer together on a plan to raise taxes on certain high-income Americans and cut spending. They could pick up where they left off and quickly cut a deal to bridge the gap.


But a compromise with possibly $ 1 trillion in new taxes and $ 1 trillion in new, long-term spending cuts could be a tough sell for both Republicans and Democrats in Congress.


Boehner would have to persuade enough Republicans on the idea of tax increases. Obama, meanwhile, would have to get Democrats in Congress to back cuts to some social safety net programs such as Social Security pensions and Medicare and Medicaid health insurance for the elderly and poor. House Republicans appear to be the tougher sell.


* A huge drop in the stock market sends a loud message to Washington politicians to stop arguing and cut a quick but meaningful deal.


That is what happened in late September 2008, after Congress rejected a massive financial bailout package despite warnings by Federal Reserve Chairman Ben Bernanke and then-Treasury Secretary Henry Paulson of an economic collapse if the bill failed.


The Dow Jones Industrial Average plunged more than 700 points and Congress quickly reversed course, approving the $ 700 billion Troubled Asset Relief Program just days later.


The “fiscal cliff” may not be as dramatic a situation, but the tax increases and cuts in federal spending could deal a stiff blow to the economy.


* No deal happens in the dwindling days of 2012 and the U.S. government jumps off the fiscal cliff – at least temporarily.


On January 1, income taxes would go up on just about everyone. During the first week of January, Congress could scramble and get a quick deal on taxes and the $ 109 billion in automatic spending cuts that most lawmakers want to avoid.


Why could they reach a deal in January if they fail in December?


The reason would be that once taxes go up, it would be easier to allow a few of those increases to remain in place – mostly on the wealthy – and repeal those that would hit middle- and lower-income taxpayers.


Such a scenario would mean that no member of Congress technically would have to vote for a tax increase on anyone – taxes would have risen automatically – and the only votes would be to decrease tax rates for most Americans back to their 2012 levels.


* No deal occurs for another six weeks or so.


If Congress does not raise the nation’s debt limit, by mid-February the Treasury Department likely would exhaust its ability to borrow. That would put the nation at risk of defaulting on its debt.


Republicans have withheld their approval of the debt-limit increase as leverage to try to get the kind of “fiscal cliff” solution they want: Fewer increases in spending and taxes, and more cuts to Social Security, Medicare and Medicaid.


This is the strategy they employed in mid-2011 during the last fight over the debt limit, which is about $ 16.4 trillion.


Republicans wrung spending cuts out of Democrats in return for new borrowing authority, but paid a political price. Global financial markets were rocked by the long uncertainty brought on by the standoff in Congress, one ratings agency downgraded U.S. credit standing and Republicans saw their public approval ratings sink.


* Boehner decides on a gutsy move: Call a House vote on a bill that would raise tax rates for families with net annual incomes above $ 250,000, exactly what Obama has sought.


The plan could pass the House with strong Democratic support and some Republican votes. As soon as it passed, the House likely would leave town for the rest of the year without addressing other Obama priorities such as increasing the government’s debt limit.


* A partial deal is struck at any point.


Congress could pass a plan that would put off most of the income tax increases that are due in January, or extend some other expiring tax breaks – namely one to prevent middle-class taxpayers from being subject to higher tax rates aimed at the wealthy under the alternative minimum tax.


* Stock markets do not tank and Washington politicians conclude that the “fiscal cliff” is not such a bad thing.


Under this scenario, Congress and the White House could continue sniping at each other throughout 2013 and 2014 as they try to revamp tax policy and impose long-term spending cuts.


(Editing by David Lindsey and Will Dunham)


Economy News Headlines – Yahoo! News





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Italy PM Monti resigns, elections likely in February






ROME (Reuters) – Italian Prime Minister Mario Monti tendered his resignation to the president on Friday after 13 months in office, opening the way to a highly uncertain national election in February.


The former European commissioner, appointed to lead an unelected government to save Italy from financial crisis a year ago, has kept his own political plans a closely guarded secret but he has faced growing pressure to seek a second term.






President Giorgio Napolitano is expected to dissolve parliament in the next few days and has already indicated that the most likely date for the election is February 24.


In an unexpected move, Napolitano said he would hold consultations with political leaders from all the main parties on Saturday to discuss the next steps. In the meantime Monti will continue in a caretaker capacity.


European leaders including German Chancellor Angela Merkel and European Commission President Jose Manuel Barroso have called for Monti’s economic reform agenda to continue but Italy’s two main parties have said he should stay out of the race.


Monti, who handed in his resignation during a brief meeting at the presidential palace shortly after parliament approved his government’s 2013 budget, will hold a news conference on Sunday at which he is expected clarify his intentions.


Ordinary Italians are weary of repeated tax hikes and spending cuts and opinion polls offer little evidence that they are ready to give Monti a second term. A survey this week showed 61 percent saying he should not stand.


Whether he runs or not, his legacy will loom over an election which will be fought out over the painful measures he has introduced to try to rein in Italy’s huge public debt and revive its stagnant economy.


His resignation came a couple of months before the end of his term, after his technocrat government lost the support of Silvio Berlusconi‘s centre-right People of Freedom (PDL) party in parliament earlier this month.


Speculation is swirling over Monti’s next moves. These could include outlining policy recommendations, endorsing a centrist alliance committed to his reform agenda or even standing as a candidate in the election himself.


The centre-left Democratic Party (PD) has held a strong lead in the polls for months but a centrist alliance led by Monti could gain enough support in the Senate to force the PD to seek a coalition deal which could help shape the economic agenda.


BERLUSCONI IN WINGS


Senior figures from the alliance, including both the UDC party, which is close to the Roman Catholic Church, and a new group founded by Ferrari sports car chairman Luca di Montezemolo, have been hoping to gain Monti’s backing.


He has not said clearly whether he intends to run, but he has dropped heavy hints he will continue to push a reform agenda that has the backing of both Italy’s business community and its European partners.


The PD has promised to stick to the deficit reduction targets Monti has agreed with the European Union and says it will maintain the broad course he has set while putting more emphasis on reviving growth.


Berlusconi’s return to the political arena has added to the already considerable uncertainty about the centre-right’s intentions and increased the likelihood of a messy and potentially bitter election campaign.


The billionaire media tycoon has fluctuated between attacking the government’s “Germano-centric” austerity policies and promising to stand aside if Monti agrees to lead the centre right, but now appears to have settled on an anti-Monti line.


He has pledged to cut taxes and scrap a hated housing tax which Monti imposed. He has also sounded a stridently anti-German line which has at times echoed the tone of the populist 5-Star Movement headed by maverick comic Beppe Grillo.


The PD and the PDL, both of which supported Monti’s technocrat government in parliament, have made it clear they would not be happy if he ran against them and there have been foretastes of the kind of attacks he can expect.


Former centre-left prime minister Massimo D’Alema said in an interview last week that it would be “morally questionable” for Monti to run against the PD, which backed all of his reforms and which has pledged to maintain his pledges to European partners.


Berlusconi who has mounted an intensive media campaign in the past few days, echoed that criticism this week, saying Monti risked losing the credibility he has won over the past year and becoming a “little political figure”.


(Additional reporting by Gavin Jones, Massimiliano Di Giorgio and Paolo Biondi; Writing by Gavin Jones and James Mackenzie; Editing by Michael Roddy)


World News Headlines – Yahoo! News





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