The Obama administration launched a new Web site on Tuesday that U.S. officials hope will make citizenship and other immigration services more accessible.
The new Citizenship and Immigration Services Web site was unveiled Tuesday at an event with Homeland Security Secretary Janet Napolitano, as well as White House and Homeland Security staff.
Napolitano said USCIS' Web site gets 230,000 visits a day, therefore it is important that it be easy to use and provides ``the kind of information that people seek.''
The site was revised in 90 days using in-house resources, officials said. CIS officials could not immediately provide a total cost for the revisions. Parts of the service, including its Spanish-language sections, were still under construction.
Citizenship and Immigration Services is responsible for processing millions of applications for citizenship, immigration to the U.S. and legal residency as well as claims for asylum and refugee status.
One of the highlights of the new site is a tool allowing users to get e-mail updates or text alerts about the status of their cases, as well as to check them online with their case number.
www.ImmigrationDirect.com/USCIS
Agencies
Showing posts with label Barack Obama. Show all posts
Showing posts with label Barack Obama. Show all posts
Friday, September 25, 2009
Monday, August 31, 2009
Does Barack Obama plan to take over the internet?
The new version of a US Senate bill allows President Barack Obama to seize temporary control of private sector networks during a cybersecurity emergency. The bill allows the President to "declare a cybersecurity emergency" related to the "non-governmental" computer networks for dealing with cyber threat. The bill is introduced by senator Jay Rockefeller, a West Virginia Democrat, who has spent months preparing the draft.
"I think the redraft, while improved, remains troubling due to its vagueness. It is unclear what authority senator Rockefeller thinks is necessary over the private sector. Unless this is clarified, we cannot properly analyze, let alone support the bill." said Larry Clinton, President, Internet Security Alliance, which counts representatives of Verizon, Verisign, Nortel, and Carnegie Mellon University on its board.
Large internet and telecommunications company representatives have expressed concerns about the bill in a teleconference with Rockefeller's aides. As a source familiar to the bill informed that the primary concern was the electrical grid regarding the consequences of an attack from a broadband connection.
Rockefeller's proposal provides an ease to a broader concern in Washington about the government's role in cybersecurity. President Obama has already acknowledged that the government is "not as prepared" and announced that a new cybersecurity coordinator position would be created inside the White House staff.
After three months, the post remains empty, one top cybersecurity aide has quit, and people are wondering that a government which has failed on the point of cybersecurity, how can they be trusted when they instruct the private sector.
The revised legislation of Rockefeller's proposal seeks to reshuffle the way the federal government addresses the topic. It seeks a cybersecurity workforce plan from every federal agency, a dashboard pilot project, measurements of hiring effectiveness, and the implementation of a "comprehensive national cybersecurity strategy" in six months, even though its mandatory legal review will take one year to complete.
The issue lies in section 201, which permits the President to "direct the national response to the cyber threat" if necessary for "the national defense and security." The White House is supposed to do a "periodic mapping" of private networks deemed to be critical, and those companies "shall share" requested information with the federal government.
"The language has changed but it doesn't contain any real additional limits. It simply switches the more direct and obvious language they had originally to the more ambiguous versions. The designation of what is a critical infrastructure system or network as far as I can tell has no specific process. There's no provision for any administrative process or review. That's where the problems seem to start. And then you have the amorphous powers that go along with it," said Lee Tien, Staff Attorney, Electronic Frontier Foundation.
So if any company is stated under the term "critical," a new set of regulations start like involving who you can hire, what information you must disclose, and when the government would exercise control over your computers or network.
Agencies
"I think the redraft, while improved, remains troubling due to its vagueness. It is unclear what authority senator Rockefeller thinks is necessary over the private sector. Unless this is clarified, we cannot properly analyze, let alone support the bill." said Larry Clinton, President, Internet Security Alliance, which counts representatives of Verizon, Verisign, Nortel, and Carnegie Mellon University on its board.
Large internet and telecommunications company representatives have expressed concerns about the bill in a teleconference with Rockefeller's aides. As a source familiar to the bill informed that the primary concern was the electrical grid regarding the consequences of an attack from a broadband connection.
Rockefeller's proposal provides an ease to a broader concern in Washington about the government's role in cybersecurity. President Obama has already acknowledged that the government is "not as prepared" and announced that a new cybersecurity coordinator position would be created inside the White House staff.
After three months, the post remains empty, one top cybersecurity aide has quit, and people are wondering that a government which has failed on the point of cybersecurity, how can they be trusted when they instruct the private sector.
The revised legislation of Rockefeller's proposal seeks to reshuffle the way the federal government addresses the topic. It seeks a cybersecurity workforce plan from every federal agency, a dashboard pilot project, measurements of hiring effectiveness, and the implementation of a "comprehensive national cybersecurity strategy" in six months, even though its mandatory legal review will take one year to complete.
The issue lies in section 201, which permits the President to "direct the national response to the cyber threat" if necessary for "the national defense and security." The White House is supposed to do a "periodic mapping" of private networks deemed to be critical, and those companies "shall share" requested information with the federal government.
"The language has changed but it doesn't contain any real additional limits. It simply switches the more direct and obvious language they had originally to the more ambiguous versions. The designation of what is a critical infrastructure system or network as far as I can tell has no specific process. There's no provision for any administrative process or review. That's where the problems seem to start. And then you have the amorphous powers that go along with it," said Lee Tien, Staff Attorney, Electronic Frontier Foundation.
So if any company is stated under the term "critical," a new set of regulations start like involving who you can hire, what information you must disclose, and when the government would exercise control over your computers or network.
Agencies
Sunday, June 21, 2009
Will Indian outsourcing benefit from downturn?
The turmoil in the financial market is likely to spell good news for the Indian outsourcing companies, as the downturn will compel multinationals to seek further economies for sustenance in these tough times, Wipro Technologies founder Azim Premji has said.
In an interview to the Sunday Times, Premji insisted that "the Indian outsourcing giants will benefit from this downturn, as all multinationals seek further economies."
Premji's statement comes at a time when the United States President Barack Obama has proposed changes in tax laws to curb outsourcing.
Obama proposing change in tax laws of that country had reportedly said, it's a tax code that says you should pay lower taxes if you create a job in Bangalore, than if you create one in Buffalo, New York.
Premji also voiced its concern about the "creeping tide of protectionism" in the West and said that "If we get into protectionism, then the West is going to get a wave of protectionism in response, and that is going to turn back the clock 20 years".
Premji further warned that it will be America and Europe that will suffer, because they will be excluded from the only growth markets left, in Asia, Africa and China.
CXOtoday
In an interview to the Sunday Times, Premji insisted that "the Indian outsourcing giants will benefit from this downturn, as all multinationals seek further economies."
Premji's statement comes at a time when the United States President Barack Obama has proposed changes in tax laws to curb outsourcing.
Obama proposing change in tax laws of that country had reportedly said, it's a tax code that says you should pay lower taxes if you create a job in Bangalore, than if you create one in Buffalo, New York.
Premji also voiced its concern about the "creeping tide of protectionism" in the West and said that "If we get into protectionism, then the West is going to get a wave of protectionism in response, and that is going to turn back the clock 20 years".
Premji further warned that it will be America and Europe that will suffer, because they will be excluded from the only growth markets left, in Asia, Africa and China.
CXOtoday
Wednesday, May 6, 2009
Obama remark on Bangalore misinterpreted, says Nasscom chief
US President Barack Obama's remark that American firms were shipping more jobs to Bangalore than creating them in Buffalo (in New York state) had been "misinterpreted", an IT industry lobby said here on Wednesday.
"Nothing much should be read about Obama's comment on Bangalore and Buffalo. I think his remark has been misinterpreted. What he said was of the additional revenue he would get from his tax reform proposals, he would invest some of it in research and training so that more jobs get created," Som Mittal, president of the National Association of Software and Services Companies (Nasscom) told reporters.
Contending that the current US tax system gave US-based multinationals shipping jobs to places like India an unfair advantage over domestic rivals, Obama Monday announced plans to reduce tax breaks for them.
"It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York," Obama said, spelling out his proposals to close corporate tax loopholes and crack down on overseas tax havens.
Allaying fears of job losses or decline in outsourcing or off-shoring, Mittal said the Obama proposal was not about India but how American subsidiaries were structured overseas in light of the taxation method followed by US firms over the years.
Admitting that Obama's protectionist measure was a matter of concern for the industry, Mittal asserted that Nasscom would study the proposal to assess what impact it would have on outsourcing or off-shoring and do the needful if the bill got drafted.
"The good part is that we have a voice. If we see that it's impacting us in any way, as the bill gets drafted, we will do the needful," Mittal said.
The US accounts for about 60 per cent ($30 billion) of the $50-billion IT export revenue from India. About 70 per cent of the export revenue is generated by Indian firms and the remaining by multinational captives or third party vendors in the sub-continent.
Endorsing Mittal's views, former Nasscom president and Satyam board chairman Kiran Karnik said he was sceptical about Obama's tax proposal becoming a law.
"It (tax reform bill) is unlikely to become a law as US firms will be the hardest hit. Obama's proposal is of concern because it's a sign of protectionism. In the recent G-20 meeting in London, world leaders said they were against protectionism," Karnik said.
In a lighter vein, a leading IT firm head said Obama seemed to have got his geography wrong as he should have mentioned Beijing instead of Bangalore since more manufacturing jobs were shipped to China than to India over the years.
"Looks like Obama got his geography wrong. Jobs are not going to Bangalore but Beijing, as manufacturing jobs are going to China and not India. Only 1000-2000 back office jobs have come to India," the official said on anonymity.
Agencies
"Nothing much should be read about Obama's comment on Bangalore and Buffalo. I think his remark has been misinterpreted. What he said was of the additional revenue he would get from his tax reform proposals, he would invest some of it in research and training so that more jobs get created," Som Mittal, president of the National Association of Software and Services Companies (Nasscom) told reporters.
Contending that the current US tax system gave US-based multinationals shipping jobs to places like India an unfair advantage over domestic rivals, Obama Monday announced plans to reduce tax breaks for them.
"It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York," Obama said, spelling out his proposals to close corporate tax loopholes and crack down on overseas tax havens.
Allaying fears of job losses or decline in outsourcing or off-shoring, Mittal said the Obama proposal was not about India but how American subsidiaries were structured overseas in light of the taxation method followed by US firms over the years.
Admitting that Obama's protectionist measure was a matter of concern for the industry, Mittal asserted that Nasscom would study the proposal to assess what impact it would have on outsourcing or off-shoring and do the needful if the bill got drafted.
"The good part is that we have a voice. If we see that it's impacting us in any way, as the bill gets drafted, we will do the needful," Mittal said.
The US accounts for about 60 per cent ($30 billion) of the $50-billion IT export revenue from India. About 70 per cent of the export revenue is generated by Indian firms and the remaining by multinational captives or third party vendors in the sub-continent.
Endorsing Mittal's views, former Nasscom president and Satyam board chairman Kiran Karnik said he was sceptical about Obama's tax proposal becoming a law.
"It (tax reform bill) is unlikely to become a law as US firms will be the hardest hit. Obama's proposal is of concern because it's a sign of protectionism. In the recent G-20 meeting in London, world leaders said they were against protectionism," Karnik said.
In a lighter vein, a leading IT firm head said Obama seemed to have got his geography wrong as he should have mentioned Beijing instead of Bangalore since more manufacturing jobs were shipped to China than to India over the years.
"Looks like Obama got his geography wrong. Jobs are not going to Bangalore but Beijing, as manufacturing jobs are going to China and not India. Only 1000-2000 back office jobs have come to India," the official said on anonymity.
Agencies
Saturday, March 7, 2009
Obama names Indian American Kundra as infotech czar
US President Barack Obama Thursday named Vivek Kundra, a 34-year-old Indian American, as the federal chief information officer (CIO) at the White House to advance the administration's technology agenda.
"Vivek Kundra will bring a depth of experience in the technology arena and a commitment to lowering the cost of government operations to this position," Obama said.
"I have directed him to work to ensure that we are using the spirit of American innovation and the power of technology to improve performance and lower the cost of government operations," he said.
"As Chief Information Officer (CIO), he will play a key role in making sure our government is running in the most secure, open, and efficient way possible."
A White House announcement noted the CIO directs the policy and strategic planning of federal information technology investments and is responsible for oversight of federal technology spending.
The Federal CIO establishes and oversees enterprise architecture to ensure system interoperability and information sharing and ensure information security and privacy across the federal government.
The CIO will also work closely with the chief technology officer to advance the president's technology agenda, it said.
New Delhi-born Kundra formerly served in Washington DC Mayor Adrian Fenty's cabinet as the chief technology officer (CTO) for the capital city, responsible for technology operations and strategy for 86 agencies.
He has been recognised among the top 25 CTOs in the US and as the 2008 IT Executive of the Year for his pioneering work to drive transparency, engage citizens and lower the cost of government operations.
Kundra is also recognised for his leadership in public safety communications, cyber security and IT portfolio management.
Before Kundra came to the capital, Virginia Governor Timothy M. Kaine appointed him assistant secretary of commerce and technology, the first dual cabinet role in the state's history.
Kundra's diverse record also includes technology and public policy experience in private industry and academia. He is a graduate of the University of Virginia's Sorensen Institute for Political Leadership and holds an MS in information technology from the University of Maryland.
Agencies
"Vivek Kundra will bring a depth of experience in the technology arena and a commitment to lowering the cost of government operations to this position," Obama said.
"I have directed him to work to ensure that we are using the spirit of American innovation and the power of technology to improve performance and lower the cost of government operations," he said.
"As Chief Information Officer (CIO), he will play a key role in making sure our government is running in the most secure, open, and efficient way possible."
A White House announcement noted the CIO directs the policy and strategic planning of federal information technology investments and is responsible for oversight of federal technology spending.
The Federal CIO establishes and oversees enterprise architecture to ensure system interoperability and information sharing and ensure information security and privacy across the federal government.
The CIO will also work closely with the chief technology officer to advance the president's technology agenda, it said.
New Delhi-born Kundra formerly served in Washington DC Mayor Adrian Fenty's cabinet as the chief technology officer (CTO) for the capital city, responsible for technology operations and strategy for 86 agencies.
He has been recognised among the top 25 CTOs in the US and as the 2008 IT Executive of the Year for his pioneering work to drive transparency, engage citizens and lower the cost of government operations.
Kundra is also recognised for his leadership in public safety communications, cyber security and IT portfolio management.
Before Kundra came to the capital, Virginia Governor Timothy M. Kaine appointed him assistant secretary of commerce and technology, the first dual cabinet role in the state's history.
Kundra's diverse record also includes technology and public policy experience in private industry and academia. He is a graduate of the University of Virginia's Sorensen Institute for Political Leadership and holds an MS in information technology from the University of Maryland.
Agencies
Tuesday, February 10, 2009
US Financial bailout may top $1 trillion
The Obama administration said Tuesday its new plan for rescuing America's crippled banking and financial sectors could top $1 trillion in a complex formula of cash infusions from government and the private sector.
Treasury Secretary Timothy Geithner revealed the massive rescue effort just hours after President Barack Obama said at his first White House news conference that Congress risked turning ``a crisis into a catastrophe'' if it fails to approve a separate $800-plus billion economic stimulus program. The plan has faced stiff opposition from Republican lawmakers.
The new financial bailout plan brought forward by Geithner grows out of a $700 billion rescue program put in place in October, under the Bush administration, as the depth of the country's critical financial sector troubles surfaced with a collapse of the housing market.
``Right now critical parts of our financial system are damaged,'' Geithner said in unveiling the new plan. ``Instead of catalyzing recovery, the financial system is working against recovery and that's the dangerous dynamic we need to change.''
Half of the bailout money was allocated by former President George W. Bush's administration, but that spending has come under heavy criticism for a lack of transparency and the failure of banks to put the money into the frozen credit market.
The second half of the $700 billion is now in the hands of the Obama administration, which plans to greatly expand the effort to unclog credit markets that provide loans to consumers and businesses. Funding for this effort would see a huge increase from $20 billion up to $100 billion, according to administration officials.
If a total of $100 billion from the bailout fund was used, it would be enough to support an additional $1 trillion in lending support through a Federal Reserve program that was announced in November but has yet to begin operations.
The administration also announced that the program would be expanded beyond consumer and small business loans to provide aid to the troubled commercial real estate sector.
The administration also announced a program to create a partnership between the government and the private sector to get private investors to buy bad assets that are currently weighing down the balance sheets of banks. Congressional aides who were briefed on this plan said that Treasury officials said it could involve between $250 billion and $500 billion in government support.
As Geithner put forward the new bailout package, the Senate, despite nearly unanimous Republican opposition, was expected to approve a $838 billion stimulus bill later Tuesday. Senate approval would set the stage for possibly contentious negotiations with the House on a final compromise on legislation. Congressional leaders hope to get the bill to Obama's desk in a few days.
Obama defended the stimulus plan in his press conference Monday night, saying the federal government ``is the only entity left with the resources to jolt our economy back to life.''
``The plan is not perfect,'' the president said. ``No plan is. I can't tell you for sure that everything in this plan will work exactly as we hope, but I can tell you with complete confidence that a failure to act will only deepen this crisis as well as the pain felt by millions of Americans.''
Obama goes to Fort Myers, Florida, a metropolitan area among the hardest-hit by mortgage foreclosures, for another town-hall meeting Tuesday like the one he held Monday in Elkhart, Indiana, to promote his economic plan.
Just three weeks after his inauguration was celebrated jubilantly around the world, Obama has run into the jarring difficulties of governing. He failed to win over the Republicans he courted for his economic plan. Some of his supporters have wondered if he has yielded too much ground in the pursuit of bipartisanship.
Yet Obama's approval ratings remain high — 67 per cent according to a Gallup Organization poll released Monday. He is trying to tap into that popularity to win public and congressional support for his economic recovery plan as the country faces its worst economic crisis in 80 years.
``This is not your ordinary, run-of-the-mill recession,'' Obama said in his address Monday night, issuing a dire warning of the consequences if Congress fails to agree on a stimulus package. He cited Japan's failure to take bold actions in time to reverse a recession that turned the 1990s into a ``lost decade'' with no economic growth.
Despite painting a dire picture of the American economy, Obama said the US could well be in better shape by next year, as measured by increased hiring, lending, home values and other factors.
``If we get things right, then, starting next year, we can start seeing significant improvement,'' Obama said.
Agencies
Treasury Secretary Timothy Geithner revealed the massive rescue effort just hours after President Barack Obama said at his first White House news conference that Congress risked turning ``a crisis into a catastrophe'' if it fails to approve a separate $800-plus billion economic stimulus program. The plan has faced stiff opposition from Republican lawmakers.
The new financial bailout plan brought forward by Geithner grows out of a $700 billion rescue program put in place in October, under the Bush administration, as the depth of the country's critical financial sector troubles surfaced with a collapse of the housing market.
``Right now critical parts of our financial system are damaged,'' Geithner said in unveiling the new plan. ``Instead of catalyzing recovery, the financial system is working against recovery and that's the dangerous dynamic we need to change.''
Half of the bailout money was allocated by former President George W. Bush's administration, but that spending has come under heavy criticism for a lack of transparency and the failure of banks to put the money into the frozen credit market.
The second half of the $700 billion is now in the hands of the Obama administration, which plans to greatly expand the effort to unclog credit markets that provide loans to consumers and businesses. Funding for this effort would see a huge increase from $20 billion up to $100 billion, according to administration officials.
If a total of $100 billion from the bailout fund was used, it would be enough to support an additional $1 trillion in lending support through a Federal Reserve program that was announced in November but has yet to begin operations.
The administration also announced that the program would be expanded beyond consumer and small business loans to provide aid to the troubled commercial real estate sector.
The administration also announced a program to create a partnership between the government and the private sector to get private investors to buy bad assets that are currently weighing down the balance sheets of banks. Congressional aides who were briefed on this plan said that Treasury officials said it could involve between $250 billion and $500 billion in government support.
As Geithner put forward the new bailout package, the Senate, despite nearly unanimous Republican opposition, was expected to approve a $838 billion stimulus bill later Tuesday. Senate approval would set the stage for possibly contentious negotiations with the House on a final compromise on legislation. Congressional leaders hope to get the bill to Obama's desk in a few days.
Obama defended the stimulus plan in his press conference Monday night, saying the federal government ``is the only entity left with the resources to jolt our economy back to life.''
``The plan is not perfect,'' the president said. ``No plan is. I can't tell you for sure that everything in this plan will work exactly as we hope, but I can tell you with complete confidence that a failure to act will only deepen this crisis as well as the pain felt by millions of Americans.''
Obama goes to Fort Myers, Florida, a metropolitan area among the hardest-hit by mortgage foreclosures, for another town-hall meeting Tuesday like the one he held Monday in Elkhart, Indiana, to promote his economic plan.
Just three weeks after his inauguration was celebrated jubilantly around the world, Obama has run into the jarring difficulties of governing. He failed to win over the Republicans he courted for his economic plan. Some of his supporters have wondered if he has yielded too much ground in the pursuit of bipartisanship.
Yet Obama's approval ratings remain high — 67 per cent according to a Gallup Organization poll released Monday. He is trying to tap into that popularity to win public and congressional support for his economic recovery plan as the country faces its worst economic crisis in 80 years.
``This is not your ordinary, run-of-the-mill recession,'' Obama said in his address Monday night, issuing a dire warning of the consequences if Congress fails to agree on a stimulus package. He cited Japan's failure to take bold actions in time to reverse a recession that turned the 1990s into a ``lost decade'' with no economic growth.
Despite painting a dire picture of the American economy, Obama said the US could well be in better shape by next year, as measured by increased hiring, lending, home values and other factors.
``If we get things right, then, starting next year, we can start seeing significant improvement,'' Obama said.
Agencies
Sunday, January 18, 2009
Will India-born executives bag Obama tech job?
Two prominent India-born executives are the frontrunners for the newly-created post of federal chief technology officer in the incoming Barack Obama Administration.
The two leading candidates are Padmasree Warrior, the chief technology officer (CTO) of Silicon Valley networking giant Cisco Systems and Vivek Kundra, who holds the same title in the government of Washington DC, US financial magazine BusinessWeek today quoted "sources with knowledge of the situation" as saying.
Warrior, who previously was the CTO at Motorola, represents hard-core technology expertise. Kundra, who was named to the DC post in 2007, has held similar government positions in the past and has a reputation for using technology to make government more open and inclusive, the report said.
Neither the Obama transition team nor the two executives would comment on their potential selection.
The President-elect is expected to announce his pick for CTO in a matter of days.
One of the sources told the magazine that the selection is being held up because it is not yet clear how the CTO will interact with the government's chief information officer and with the new cyber-security czar, another position that has not yet been filed.
Agencies
The two leading candidates are Padmasree Warrior, the chief technology officer (CTO) of Silicon Valley networking giant Cisco Systems and Vivek Kundra, who holds the same title in the government of Washington DC, US financial magazine BusinessWeek today quoted "sources with knowledge of the situation" as saying.
Warrior, who previously was the CTO at Motorola, represents hard-core technology expertise. Kundra, who was named to the DC post in 2007, has held similar government positions in the past and has a reputation for using technology to make government more open and inclusive, the report said.
Neither the Obama transition team nor the two executives would comment on their potential selection.
The President-elect is expected to announce his pick for CTO in a matter of days.
One of the sources told the magazine that the selection is being held up because it is not yet clear how the CTO will interact with the government's chief information officer and with the new cyber-security czar, another position that has not yet been filed.
Agencies
Sunday, January 4, 2009
Will US debt increase by $2 trillion in 2009?
The US national debt is expected to jump by as much as $2 trillion this year, thus putting more pressure on the American economy, a leading daily here said.
At present, the country's debt stands at nearly $10.7 trillion. Of this $3 trillion is held by foreign investors , with China ($652.9 billion) and Japan ($585.5 billion) being the top two creditors.
The soaring national debt would saddle taxpayers with huge new interest payments for years to come, the Washington Post said.
"Some analysts also worry that foreign investors, the largest United States creditors, may prove unable to absorb the skyrocketing debt, undermining confidence in the US as the bedrock of the global financial system," the Post wrote.
The newspaper said economists from across the political spectrum have endorsed the idea of going deeper into debt to combat the worst ever economic crisis since great depression of last century.
They argue that even with an increase of $2 trillion national debt, the United States is in relatively good financial shape as compared to other industrial nations.
Japan's public debt equalled 182% of its GDP in 2007 and that of Germany was 65%, the newspaper said referring to a forthcoming report by Scott Lilly, a senior fellow at the Centre for American Progress.
Even a $2 trillion increase would push the US debt to about 53 of the overall economy. This is "only a few percentage points above where it was in the early 1990s," Lilly was quoted as saying by the newspaper.
Source: Agencies
At present, the country's debt stands at nearly $10.7 trillion. Of this $3 trillion is held by foreign investors , with China ($652.9 billion) and Japan ($585.5 billion) being the top two creditors.
The soaring national debt would saddle taxpayers with huge new interest payments for years to come, the Washington Post said.
"Some analysts also worry that foreign investors, the largest United States creditors, may prove unable to absorb the skyrocketing debt, undermining confidence in the US as the bedrock of the global financial system," the Post wrote.
The newspaper said economists from across the political spectrum have endorsed the idea of going deeper into debt to combat the worst ever economic crisis since great depression of last century.
They argue that even with an increase of $2 trillion national debt, the United States is in relatively good financial shape as compared to other industrial nations.
Japan's public debt equalled 182% of its GDP in 2007 and that of Germany was 65%, the newspaper said referring to a forthcoming report by Scott Lilly, a senior fellow at the Centre for American Progress.
Even a $2 trillion increase would push the US debt to about 53 of the overall economy. This is "only a few percentage points above where it was in the early 1990s," Lilly was quoted as saying by the newspaper.
Source: Agencies
Chrysler gets $4-billion loan from US govt
Chrysler LLC said on Friday it has received an initial $4 billion emergency loan from the US government.
"This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.
But Chrysler later said its statement that talks continue between the US Treasury Department and Chrysler Financial about a loan should have been omitted.
Its earlier press release said a closing was expected in due course.
Two spokeswomen for the company could not immediately be reached by the media to clarify.
General Motors Corp received $4 billion in emergency loans on December 31.
Both Chrysler and GM have said they need the government cash to meet payouts to suppliers at a time when a plunge in auto sales has drained their cash holdings.
Under terms of the government bailout, Chrysler and GM will have to submit restructuring plans by mid-February and demonstrate that they are viable by the end of March.
Source: Agencies
"This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.
But Chrysler later said its statement that talks continue between the US Treasury Department and Chrysler Financial about a loan should have been omitted.
Its earlier press release said a closing was expected in due course.
Two spokeswomen for the company could not immediately be reached by the media to clarify.
General Motors Corp received $4 billion in emergency loans on December 31.
Both Chrysler and GM have said they need the government cash to meet payouts to suppliers at a time when a plunge in auto sales has drained their cash holdings.
Under terms of the government bailout, Chrysler and GM will have to submit restructuring plans by mid-February and demonstrate that they are viable by the end of March.
Source: Agencies
Saturday, January 3, 2009
US credit card cos losses could top $70 billion in 2009
Credit card companies have little to celebrate as many analysts brace for 2009 to be one of the worst years on record for consumer credit.
Losses for the industry could top $70 billion, but it is hard to predict how bad the pain will be.
US consumers have never before been so deeply in debt. There was nearly $1 trillion of credit and charge card debt outstanding as of October, up more than 25 per cent since 2003, according to the US Federal Reserve. That is in addition to $10.54 trillion in mortgage debt.
Unemployment, already at 15-year highs, is expected to rise to its highest levels since the early 1980s, when credit cards were not nearly as widespread.
In short, there's more debt than ever and fewer people are able to pay it.
"In many ways, we're in uncharted territory," said John Williams, an analyst at Macquarie Research.
Major credit losses are big trouble for Citigroup Inc, Bank of America, and other card issuers such as American Express Co and Discover Financial Services, which have seen their shares lose up to 80 per cent of their value in 2008.
The United States is not standing idly by. Citigroup received $45 billion of taxpayers' money in October and November. Bank of America has received $25 billion. American Express, which became a bank holding company, got approval last week to receive $3.4 billion from the taxpayer-funded Troubled Asset Relief Program.
Lenders, seeing potential big losses, are trying to protect themselves by tightening credit availability, which leaves consumers with fewer options.
This year's holiday shopping season was the worst since at least 1970, according to a report from the International Council of Shopping Centers.
"It is hard to see the light at the end of the tunnel," Williams said.
NOWHERE TO HIDE
No credit card company is safe. According to Citigroup analysts, more than one-fourth of the credit card portfolios of Citibank, Bank of America Corp, Capital One Corp, and Discover are subprime, which could lead to further losses.
Meanwhile, American Express is heavily exposed to troubled markets with high default rates such as Florida and California, and JP Morgan Chase & Co has to digest the portfolio of failed savings and loans company Washington Mutual.
Together, these six companies hold around 90 per cent of the total US outstanding credit card debt.
Citigroup and American Express have said they are tightening lending to mitigate their losses. JP Morgan and Bank of America declined to comment, while Capital One did not return calls seeking comment.
Credit card companies have reported increased losses. Discover, the No 4 US credit card network, posted worse-than-expected results in its fourth fiscal quarter, the first sign of the harsh deterioration of the industry, when the economic downturn picked up steam in October and November.
Discover almost doubled the money it set aside to cover credit losses. Analysts said its competitors would likely do the same in coming Credit Cards quarters, leading to lower earnings.
"Things have changed pretty rapidly in the last two months. I'm hopeful that we will see the worst in 2009, but I don't know yet," David Nelms, chief executive of Discover, told reporters in a recent interview.
Many analysts and credit card executives look at 2009 and remember the beginning of the mortgage crisis in early 2007, when lenders consistently underestimated what was coming up.
Said Chris Brendler, analyst at Stifel Nicolaus, "The risk is that things get much worse than expected."
Source: Agencies
Losses for the industry could top $70 billion, but it is hard to predict how bad the pain will be.
US consumers have never before been so deeply in debt. There was nearly $1 trillion of credit and charge card debt outstanding as of October, up more than 25 per cent since 2003, according to the US Federal Reserve. That is in addition to $10.54 trillion in mortgage debt.
Unemployment, already at 15-year highs, is expected to rise to its highest levels since the early 1980s, when credit cards were not nearly as widespread.
In short, there's more debt than ever and fewer people are able to pay it.
"In many ways, we're in uncharted territory," said John Williams, an analyst at Macquarie Research.
Major credit losses are big trouble for Citigroup Inc, Bank of America, and other card issuers such as American Express Co and Discover Financial Services, which have seen their shares lose up to 80 per cent of their value in 2008.
The United States is not standing idly by. Citigroup received $45 billion of taxpayers' money in October and November. Bank of America has received $25 billion. American Express, which became a bank holding company, got approval last week to receive $3.4 billion from the taxpayer-funded Troubled Asset Relief Program.
Lenders, seeing potential big losses, are trying to protect themselves by tightening credit availability, which leaves consumers with fewer options.
This year's holiday shopping season was the worst since at least 1970, according to a report from the International Council of Shopping Centers.
"It is hard to see the light at the end of the tunnel," Williams said.
NOWHERE TO HIDE
No credit card company is safe. According to Citigroup analysts, more than one-fourth of the credit card portfolios of Citibank, Bank of America Corp, Capital One Corp, and Discover are subprime, which could lead to further losses.
Meanwhile, American Express is heavily exposed to troubled markets with high default rates such as Florida and California, and JP Morgan Chase & Co has to digest the portfolio of failed savings and loans company Washington Mutual.
Together, these six companies hold around 90 per cent of the total US outstanding credit card debt.
Citigroup and American Express have said they are tightening lending to mitigate their losses. JP Morgan and Bank of America declined to comment, while Capital One did not return calls seeking comment.
Credit card companies have reported increased losses. Discover, the No 4 US credit card network, posted worse-than-expected results in its fourth fiscal quarter, the first sign of the harsh deterioration of the industry, when the economic downturn picked up steam in October and November.
Discover almost doubled the money it set aside to cover credit losses. Analysts said its competitors would likely do the same in coming Credit Cards quarters, leading to lower earnings.
"Things have changed pretty rapidly in the last two months. I'm hopeful that we will see the worst in 2009, but I don't know yet," David Nelms, chief executive of Discover, told reporters in a recent interview.
Many analysts and credit card executives look at 2009 and remember the beginning of the mortgage crisis in early 2007, when lenders consistently underestimated what was coming up.
Said Chris Brendler, analyst at Stifel Nicolaus, "The risk is that things get much worse than expected."
Source: Agencies
Here are the Ten US Business Predictions for 2009!
Two words apply well for the year just ended: Whoa, Nelly! With the financial markets in chaos, the jobs landscape littered with layoffs, and the most audacious outpouring of federal funds since the Great Depression, most of us are ready to look forward to cheerier times in 2009.
Here at BusinessWeek, we've again donned our prognostication helmets and took a gander into the old crystal ball for a few (educated?) guesses at what this new year holds in store. True, we failed to predict the two major events of 2008—the election of Barack Obama and the financial meltdown rippling across the world economy. But we did nail one call: 2008 was the year of $100-per-barrel oil—we just didn't anticipate its stunning slide back to $40.
Recession Reigns
Expect more budget cuts, layoffs, shutdowns, bankruptcies, and mergers. Look for beleaguered bookseller Borders Group (BGP) to slip into Chapter 11, and for Barnes & Noble (BKS) to take over some of those stores—but only a few. Also expect Chrysler to merge into General Motors (GM) at a bargain-basement price as Chrysler's private equity owners at Cerberus Capital race to get that investment off their books. With the rapid collapse of oil prices, and the resulting financial pressures, expect two or more mergers among Big Oil. Our best guess?
Royal Dutch Shell (RDSA) buys troubled BP (BP), in part to avoid regulatory issues that could come from merging with a U.S. oil company. There will also be tremendous pressure on wireless phone prices, causing financial headaches for companies like AT&T (T). Newspaper companies' profits will continue to shrink; watch for a billionaire such as financier George Soros or New York Mayor Michael Bloomberg to lead a rescue of The New York Times (NYT), which will become part of a not-for-profit corporation by the end of the year.
Bernanke: Four and No More
President-elect Obama has nowhere to go but down in his approval ratings, so he may lose some popularity points as me makes tough choices in his early months. Also expect to see the last vestiges of the Bush Administration head for the exits. Declaring that his work is done, Federal Reserve Chairman Ben Bernanke will announce he'll leave the Fed upon the expiration of his four-year term as chairman on Jan. 31, 2010.
While mostly not his fault, the recession has hurt his standing with the Obama Administration—and it also has worn him down on a personal level. He'll be succeeded by Lawrence Summers, former Treasury Secretary under the Clinton Administration.
There will also be realignment on the global level. Look for Canada to forge stronger labor and trade ties with Europe in an effort to further unhinge itself from the flailing U.S. economy. Canada also will snub its southern neighbor to strike more energy and resource deals with other countries—especially China, which will continue its ascendance on the world stage in spite of economic setbacks. Also, it's a good bet Vladimir Putin will reassume the Russian presidency.
Oil Rises Again
There's a fair chance for a resurgence in oil prices, even if they dip below $30 in the next few months. Crude is likely to average $60 or $70 per barrel in 2009. OPEC will get its act together and rein in supply, and demand won't shrink as much as speculators had feared.
Still, oil won't spike to the $100-plus range because consumers remain more energy-conscious. Oil companies will continue to invest in major projects as cash-strapped nations will open their doors to foreign investments just as they have done in the past when times are tough. And commodities are no longer the place for speculators to make a fast buck.
Workers Go Creative
Economists agree that further mass layoffs will continue in 2009, and the unemployment rate could reach the double digits. That means workers will turn creative about job opportunities. Look for freelancing and small business applications to explode as laid off workers attempt to strike out on their own. The downturn also is spurring more business and other graduate school applications, and young people will continue to take shelter at universities to ride out the storm.
Bling Takes a Break
Who can afford bling anymore? Who wants to? The ostentatious—eye-popping expense accounts, showy jewelry, McMansions—will be out and frugality will be back in fashion. Suddenly clipping coupons becomes trendy and, fortified by new Web services, hitchhiking stages a comeback. Boxed wine, already a budget sensation in Europe, will take off in the U.S. Look for eBay (EBAY) to enjoy a revival as Americans turn to the underground market to raise money and scour for bargains.
Business Embraces Big Government
Long considered a thorn in the side of commerce, the government will continue to be the apple of the business community's eye. Why? In tough times, Uncle Sam remains the economy's last resort. That doesn't mean there won't be plenty of fights over how to regulate industries and how to create not just Big Government, but also Smart Government.
But by the time all is said and done, the Troubled Assets Relief Program (TARP) funding will go well beyond $700 billion. President Obama will request, and Congress will approve, another several hundred billion in aid. Much of that will go to homeowners, although airlines will probably get a slug of cash as will auto parts makers.
Digital TV Nightmare
Chaos ensues in February when U.S. broadcasters cease analog TV signals, throwing millions of Americans into a dark-screen panic. Despite nearly $1 billion in spending on educational campaigns alerting Americans to the change, surveys show that many of the 40 million or so likely to be affected still don't realize what the digital broadcast shift means to them. The government is offering a $40 subsidy to help pay for converter boxes—but plenty of Americans still using older analog TVs have no idea.
3D Returns in a Big Way
Recession notwithstanding, innovations in 3D technology will flourish. Computing technology firm NVIDIA (NVDA) is bringing realistic 3D effects on the desktop into the market this year, and more movie theatres will have IMAX screens. Consumers also will get a peek at James Cameron's much ballyhooed Avatar, a 3D movie and game the storied producer has been slaving over since 2004.
Consumers Fight Back
Tapped out consumers will look for advocates in Congress for protection against predatory or deceptive practices in areas from Credit-card fees to mortgages to exorbitant charges for text messaging by wireless companies. Legislation like the Credit Cardholders' Bill of Rights, which passed in the House in September, will have a better shot at passing the Democrat-controlled Congress and being signed by President Obama.
Housing Hits Bottom, At Last
Super-low mortgage rates—engineered by the government to help zap the economy—finally motivate us to shop for houses again. Prices will remain weak, as people who had kept their houses off the market suddenly put them up for sale as soon as they see a little buying interest. Expect home prices to continue to fall through the end of 2009. While the decline will mean trouble for some, for others, it's a golden opportunity to buy. By early 2010 credit and confidence in the market will be restored, and smart investors will be pleased to see the housing market start to recover.
Source: Economic Times
Here at BusinessWeek, we've again donned our prognostication helmets and took a gander into the old crystal ball for a few (educated?) guesses at what this new year holds in store. True, we failed to predict the two major events of 2008—the election of Barack Obama and the financial meltdown rippling across the world economy. But we did nail one call: 2008 was the year of $100-per-barrel oil—we just didn't anticipate its stunning slide back to $40.
Recession Reigns
Expect more budget cuts, layoffs, shutdowns, bankruptcies, and mergers. Look for beleaguered bookseller Borders Group (BGP) to slip into Chapter 11, and for Barnes & Noble (BKS) to take over some of those stores—but only a few. Also expect Chrysler to merge into General Motors (GM) at a bargain-basement price as Chrysler's private equity owners at Cerberus Capital race to get that investment off their books. With the rapid collapse of oil prices, and the resulting financial pressures, expect two or more mergers among Big Oil. Our best guess?
Royal Dutch Shell (RDSA) buys troubled BP (BP), in part to avoid regulatory issues that could come from merging with a U.S. oil company. There will also be tremendous pressure on wireless phone prices, causing financial headaches for companies like AT&T (T). Newspaper companies' profits will continue to shrink; watch for a billionaire such as financier George Soros or New York Mayor Michael Bloomberg to lead a rescue of The New York Times (NYT), which will become part of a not-for-profit corporation by the end of the year.
Bernanke: Four and No More
President-elect Obama has nowhere to go but down in his approval ratings, so he may lose some popularity points as me makes tough choices in his early months. Also expect to see the last vestiges of the Bush Administration head for the exits. Declaring that his work is done, Federal Reserve Chairman Ben Bernanke will announce he'll leave the Fed upon the expiration of his four-year term as chairman on Jan. 31, 2010.
While mostly not his fault, the recession has hurt his standing with the Obama Administration—and it also has worn him down on a personal level. He'll be succeeded by Lawrence Summers, former Treasury Secretary under the Clinton Administration.
There will also be realignment on the global level. Look for Canada to forge stronger labor and trade ties with Europe in an effort to further unhinge itself from the flailing U.S. economy. Canada also will snub its southern neighbor to strike more energy and resource deals with other countries—especially China, which will continue its ascendance on the world stage in spite of economic setbacks. Also, it's a good bet Vladimir Putin will reassume the Russian presidency.
Oil Rises Again
There's a fair chance for a resurgence in oil prices, even if they dip below $30 in the next few months. Crude is likely to average $60 or $70 per barrel in 2009. OPEC will get its act together and rein in supply, and demand won't shrink as much as speculators had feared.
Still, oil won't spike to the $100-plus range because consumers remain more energy-conscious. Oil companies will continue to invest in major projects as cash-strapped nations will open their doors to foreign investments just as they have done in the past when times are tough. And commodities are no longer the place for speculators to make a fast buck.
Workers Go Creative
Economists agree that further mass layoffs will continue in 2009, and the unemployment rate could reach the double digits. That means workers will turn creative about job opportunities. Look for freelancing and small business applications to explode as laid off workers attempt to strike out on their own. The downturn also is spurring more business and other graduate school applications, and young people will continue to take shelter at universities to ride out the storm.
Bling Takes a Break
Who can afford bling anymore? Who wants to? The ostentatious—eye-popping expense accounts, showy jewelry, McMansions—will be out and frugality will be back in fashion. Suddenly clipping coupons becomes trendy and, fortified by new Web services, hitchhiking stages a comeback. Boxed wine, already a budget sensation in Europe, will take off in the U.S. Look for eBay (EBAY) to enjoy a revival as Americans turn to the underground market to raise money and scour for bargains.
Business Embraces Big Government
Long considered a thorn in the side of commerce, the government will continue to be the apple of the business community's eye. Why? In tough times, Uncle Sam remains the economy's last resort. That doesn't mean there won't be plenty of fights over how to regulate industries and how to create not just Big Government, but also Smart Government.
But by the time all is said and done, the Troubled Assets Relief Program (TARP) funding will go well beyond $700 billion. President Obama will request, and Congress will approve, another several hundred billion in aid. Much of that will go to homeowners, although airlines will probably get a slug of cash as will auto parts makers.
Digital TV Nightmare
Chaos ensues in February when U.S. broadcasters cease analog TV signals, throwing millions of Americans into a dark-screen panic. Despite nearly $1 billion in spending on educational campaigns alerting Americans to the change, surveys show that many of the 40 million or so likely to be affected still don't realize what the digital broadcast shift means to them. The government is offering a $40 subsidy to help pay for converter boxes—but plenty of Americans still using older analog TVs have no idea.
3D Returns in a Big Way
Recession notwithstanding, innovations in 3D technology will flourish. Computing technology firm NVIDIA (NVDA) is bringing realistic 3D effects on the desktop into the market this year, and more movie theatres will have IMAX screens. Consumers also will get a peek at James Cameron's much ballyhooed Avatar, a 3D movie and game the storied producer has been slaving over since 2004.
Consumers Fight Back
Tapped out consumers will look for advocates in Congress for protection against predatory or deceptive practices in areas from Credit-card fees to mortgages to exorbitant charges for text messaging by wireless companies. Legislation like the Credit Cardholders' Bill of Rights, which passed in the House in September, will have a better shot at passing the Democrat-controlled Congress and being signed by President Obama.
Housing Hits Bottom, At Last
Super-low mortgage rates—engineered by the government to help zap the economy—finally motivate us to shop for houses again. Prices will remain weak, as people who had kept their houses off the market suddenly put them up for sale as soon as they see a little buying interest. Expect home prices to continue to fall through the end of 2009. While the decline will mean trouble for some, for others, it's a golden opportunity to buy. By early 2010 credit and confidence in the market will be restored, and smart investors will be pleased to see the housing market start to recover.
Source: Economic Times
Saturday, December 20, 2008
Finally bailout approved: Automakers to get $17.4 bn
Citing danger to the national economy, the Bush administration approved an emergency bailout of the US auto industry on Friday, offering $17.4 billion in rescue loans in exchange for concessions from the deeply troubled carmakers and their workers.
The government will have the option of becoming a stockholder in the companies, much as it has with major banks, in effect partially nationalizing the industry.
At the same time, Treasury Secretary Henry Paulson said Congress should release the second $350 billion from the financial rescue fund that it approved in October to bail out huge financial institutions. Tapping the fund for the auto industry basically exhausts the first half of the $700 billion total, he said.
President Bush said, "Allowing the auto companies to collapse is not a responsible course of action." Bankruptcy, he said, would deal "an unacceptably painful blow to hardworking Americans" across the economy.
One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
Bush's plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama.
Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.
If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.
"The time to make hard decisions to become viable is now, or the only option will be bankruptcy," Bush said. "The automakers and unions must understand what is at stake and make hard decisions necessary to reform."
He said the companies' workers should agree to wage and work rules that are competitive with foreign automakers by the end of next year.
And he called for elimination of a "jobs bank" program — negotiated by the United Auto Workers and the companies — under which laid-off workers receive unemployment benefits and supplemental pay from their companies for 48 weeks. If they remain laid off beyond that, they move to a jobs bank in which the company provides about 95% of their pay and benefits. Until the most recent contract, people could remain in the jobs bank for years. Early this month, the UAW agreed to suspend the program.
Under terms of the loan, GM and Chrysler must provide the government with stock warrants giving it the option to buy GM and Chrysler stock at a specific price.
In addition, the automakers would be required to agree to limits on executive pay and eliminate some perks such as corporate jets.
Paulson said that with the help for the carmakers, the government will have allocated the first half of the largest government bailout program in history.
He said he was confident that the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. have the resources to address a significant market crisis if one should occur before Congress approves the use of the second half of the rescue fund.
Paulson said he would discuss the process with congressional leaders and Obama's transition team "in the near future.
Source: Agencies
The government will have the option of becoming a stockholder in the companies, much as it has with major banks, in effect partially nationalizing the industry.
At the same time, Treasury Secretary Henry Paulson said Congress should release the second $350 billion from the financial rescue fund that it approved in October to bail out huge financial institutions. Tapping the fund for the auto industry basically exhausts the first half of the $700 billion total, he said.
President Bush said, "Allowing the auto companies to collapse is not a responsible course of action." Bankruptcy, he said, would deal "an unacceptably painful blow to hardworking Americans" across the economy.
One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
Bush's plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama.
Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.
If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.
"The time to make hard decisions to become viable is now, or the only option will be bankruptcy," Bush said. "The automakers and unions must understand what is at stake and make hard decisions necessary to reform."
He said the companies' workers should agree to wage and work rules that are competitive with foreign automakers by the end of next year.
And he called for elimination of a "jobs bank" program — negotiated by the United Auto Workers and the companies — under which laid-off workers receive unemployment benefits and supplemental pay from their companies for 48 weeks. If they remain laid off beyond that, they move to a jobs bank in which the company provides about 95% of their pay and benefits. Until the most recent contract, people could remain in the jobs bank for years. Early this month, the UAW agreed to suspend the program.
Under terms of the loan, GM and Chrysler must provide the government with stock warrants giving it the option to buy GM and Chrysler stock at a specific price.
In addition, the automakers would be required to agree to limits on executive pay and eliminate some perks such as corporate jets.
Paulson said that with the help for the carmakers, the government will have allocated the first half of the largest government bailout program in history.
He said he was confident that the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. have the resources to address a significant market crisis if one should occur before Congress approves the use of the second half of the rescue fund.
Paulson said he would discuss the process with congressional leaders and Obama's transition team "in the near future.
Source: Agencies
Monday, November 10, 2008
Obama talk steals the show
While the race to the US presidency has ended with Barack Obama winning by a landslide, the race for new Web threats related to his victory has now begun. Trend Micro Research Manager Ivan Macalintal reported of spam messages that started circulating to spread malware, within hours after Obama delivered his acceptance speech.
Says Amit Nath, Country Manager, India & SAARC, Trend Micro: "The spam which has so far affected computers in China, US and Japan, may come with a subject line like, 'Election Night Results' or 'Priorities for the New President' or 'Fear of a Black President'. The modus operandi of infecting is quite stealthy, which may lead several gullible users infected, the email invites readers to click on a link to watch Obama's speech, this link leads them to a make-believe website, 'America.gov'.
The video pane reads, 'Loading Player', and prompts to download Adobe Flash Player. To further make it look genuine, the site also provides the estimated time for downloading as 4-6 seconds! This tricks users into clicking the link that serves the malicious file adobe_flash9.exe."
Trend Micro detects the downloaded Trojan file as TROJ_DLOADER.ISZ of 3,261 bytes size. Trend Micro researcher Macalintal further points out that this spam run is from the same group that sends fake bank certificate spam (targeting Wachovia, Bank of America, Merrill Lynch, and a German bank's account holders). The properties of this attack still suggest cybercriminals using a fast-flux network of compromised computers. This spam run is currently still underway as of this writing, using different subjects and fast-changing domains.
Warns Nath: "Trend Micro analysis reveals that TROJ_DLOADER.ISZ downloads an infostealer, TSPY_PAPRAS.AM, which in turn drops a rootkit component which hides its routines. This infostealer dives into network packets to scour for passwords using Carnivore by searching strings like ftp, icq, imap, and pop3. It sends stolen information to a server in Ukraine. The Trojan is known to infect Windows 98, ME, NT, 2000, XP and Server 2003."
The malicious URL where this Trojan is downloaded is already blocked by the Trend Micro Smart Protection Network.
Says Amit Nath, Country Manager, India & SAARC, Trend Micro: "The spam which has so far affected computers in China, US and Japan, may come with a subject line like, 'Election Night Results' or 'Priorities for the New President' or 'Fear of a Black President'. The modus operandi of infecting is quite stealthy, which may lead several gullible users infected, the email invites readers to click on a link to watch Obama's speech, this link leads them to a make-believe website, 'America.gov'.
The video pane reads, 'Loading Player', and prompts to download Adobe Flash Player. To further make it look genuine, the site also provides the estimated time for downloading as 4-6 seconds! This tricks users into clicking the link that serves the malicious file adobe_flash9.exe."
Trend Micro detects the downloaded Trojan file as TROJ_DLOADER.ISZ of 3,261 bytes size. Trend Micro researcher Macalintal further points out that this spam run is from the same group that sends fake bank certificate spam (targeting Wachovia, Bank of America, Merrill Lynch, and a German bank's account holders). The properties of this attack still suggest cybercriminals using a fast-flux network of compromised computers. This spam run is currently still underway as of this writing, using different subjects and fast-changing domains.
Warns Nath: "Trend Micro analysis reveals that TROJ_DLOADER.ISZ downloads an infostealer, TSPY_PAPRAS.AM, which in turn drops a rootkit component which hides its routines. This infostealer dives into network packets to scour for passwords using Carnivore by searching strings like ftp, icq, imap, and pop3. It sends stolen information to a server in Ukraine. The Trojan is known to infect Windows 98, ME, NT, 2000, XP and Server 2003."
The malicious URL where this Trojan is downloaded is already blocked by the Trend Micro Smart Protection Network.
Why is Obama the best man to lead USA?
What makes Barack Obama the best man for the post of US President? Apart from being first Black to adorn the White House, what are the other attributes that make him fit for the prestigious post?
A latest survey conducted by InspireOne, a people, organization and leadership development firm based in India points to some interesting aspects of the man called Obama.
According to the survey done by InspireOne in association with Centre for High Performance Development (www.chpd.com), it is the critical thinking skills in Obama that makes him different.
The analysis participated in the survey predicts that Obama will be able to perform to a higher level at times of high 'VUCAD' (volatility, uncertainty, complexity, ambiguity and delayed feedback), said a press release.
The analysis conducted a week before the Presidential Elections, reveals the instinctive characteristics and decision making skills that Obama possessed as a leader in the making.
The three primary levels of thought and action assessed are related to the skills of Differentiation, Integration and Crisis, the survey points out.
A latest survey conducted by InspireOne, a people, organization and leadership development firm based in India points to some interesting aspects of the man called Obama.
According to the survey done by InspireOne in association with Centre for High Performance Development (www.chpd.com), it is the critical thinking skills in Obama that makes him different.
The analysis participated in the survey predicts that Obama will be able to perform to a higher level at times of high 'VUCAD' (volatility, uncertainty, complexity, ambiguity and delayed feedback), said a press release.
The analysis conducted a week before the Presidential Elections, reveals the instinctive characteristics and decision making skills that Obama possessed as a leader in the making.
The three primary levels of thought and action assessed are related to the skills of Differentiation, Integration and Crisis, the survey points out.
Wednesday, November 5, 2008
Bangalore techies cheer Obama
As Obama creates history by becoming the first Black to adorn the post of US President, these fans in the Indian Silicon Valley are more than a happy lot.
As Democrat Barack Obama has created history in the US Presidential elections by becoming the first Black to take control of the White House, this techie group from Bangalore would be more than happy, as their campaign has bore result.
These Bangalore techies, who had formed Barack Obama Bangalore Fan Club, were probably more enthusiastic than the American youth and they made all attempts possible on their part to fetch vote for the youth icon in his run-up for the most powerful post in the US.
Apart from calling up, SMSing and emailing friends and relatives in the US to vote for the Democrat, the club members also collected more than US$4000 from their circles, which they contributed to the election fund of Obama.
They had even organized rallies in the Indian Silicon Valley, carrying placards supporting Obama and explaining why the US as well as India need Obama in the White House.
The fan club members say they got the money for the election fund from several quarters voluntarily. And they believe that the young Democrat could bring a positive change. But it was Obama only who had played the anti-outsourcing card to woo the American youth in a recent electoral speech.
Will the fan club be able to make him retract from the announcement?
After all the statement had caused the Indian IT sector to press the panic button, as majority of outsourcing works from the US are shipped to India.
At this moment of history, some perennial questions arise.
Will the new President be able to help revive the nose-diving American economy? Will India, especially the IT sector, have to face the heat of the anti-outsourcing card played by Obama to win over the jobless youth of America?
As Democrat Barack Obama has created history in the US Presidential elections by becoming the first Black to take control of the White House, this techie group from Bangalore would be more than happy, as their campaign has bore result.
These Bangalore techies, who had formed Barack Obama Bangalore Fan Club, were probably more enthusiastic than the American youth and they made all attempts possible on their part to fetch vote for the youth icon in his run-up for the most powerful post in the US.
Apart from calling up, SMSing and emailing friends and relatives in the US to vote for the Democrat, the club members also collected more than US$4000 from their circles, which they contributed to the election fund of Obama.
They had even organized rallies in the Indian Silicon Valley, carrying placards supporting Obama and explaining why the US as well as India need Obama in the White House.
The fan club members say they got the money for the election fund from several quarters voluntarily. And they believe that the young Democrat could bring a positive change. But it was Obama only who had played the anti-outsourcing card to woo the American youth in a recent electoral speech.
Will the fan club be able to make him retract from the announcement?
After all the statement had caused the Indian IT sector to press the panic button, as majority of outsourcing works from the US are shipped to India.
At this moment of history, some perennial questions arise.
Will the new President be able to help revive the nose-diving American economy? Will India, especially the IT sector, have to face the heat of the anti-outsourcing card played by Obama to win over the jobless youth of America?
Subscribe to:
Posts (Atom)