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Was There a Loan It Didn’t Like?
2008-11-02, New York Times
http://www.nytimes.com/2008/11/02/business/02gret.html?partner=rssuserland&em...

As a senior mortgage underwriter, Keysha Cooper was proud of her ability to spot fraud and other problems in a loan application. But as a senior mortgage underwriter at Washington Mutual during the late, great mortgage boom, Ms. Cooper says she found herself in a vise. Brokers squeezed her from one side, her superiors from the other, she says, and both pressured her to approve loans, no matter what. “At WaMu it wasn’t about the quality of the loans; it was about the numbers,” Ms. Cooper says. “They didn’t care if we were giving loans to people that didn’t qualify. Instead, it was how many loans did you guys close and fund?” When underwriters refused to approve dubious loans, they were punished, she says. In February 2007 ... the pressure became intense. WaMu executives told employees they were not making enough loans and had to get their numbers up, she says. “They started giving loan officers free trips if they closed so many loans, fly them to Hawaii for a month,” Ms. Cooper recalls. “One of my account reps went to Jamaica for a month because he closed $3.5 million in loans that month. If a loan came from a top loan officer, they didn’t care what the situation was, you had to make that loan work,” she says. One loan file was filled with so many discrepancies that she felt certain it involved mortgage fraud. She turned the loan down, she says, only to be scolded by her supervisor. Ms. Cooper says that her bosses placed her on probation for 30 days for refusing to approve the loan and that her team manager signed off on the loan.

Note: For lots more on corporate corruption from reliable sources, click here.

Panel grills credit raters over inflated ratings
2008-10-23, MSNBC/Associated Press
http://www.msnbc.msn.com/id/27326652

Executives and employees at the major credit ratings agencies were often aware of problems in the AAA grades awarded to thousands of mortgage-related securities whose downgrades helped plunge the nation into a financial meltdown. The companies — Standard & Poor, Moody’s and Fitch, Inc. — made enormous profits as they evaluated a ballooning number of mortgage-backed bonds, many of which were given top marks as long as housing prices went up. “The story of the credit rating agencies is a story of colossal failure,” said Rep. Henry Waxman, chairman of the House Oversight and Government Reform Committee. The California Democrat said, “Millions of investors rely on them for independent, objective assessments. The rating agencies broke this bond of trust, and federal regulators ignored the warning signs and did nothing to protect the public. The result is that our entire financial system is now at risk.” The companies are important because their high assessments assured investors that their money should be safe. The inflated ratings awarded to securities backed up by subprime loans led investors to buy them in enormous numbers. But now, most of these securities have been downgraded and the market for them has largely evaporated, contributing to the current crisis. The panel also heard former ratings agency executives say there’s an inherent conflict of interest in the industry because they’re paid by bond issuers instead of investors who trust their ratings to make smart investments.

Note: For many reports on corporate corruption from reliable sources, click here.

This Bailout Doesn’t Pay Dividends
2008-10-21, New York Times
http://www.nytimes.com/2008/10/21/opinion/21stein.html?partner=rssuserland&em...

Secretary Paulson [has been] described as playing the role of the Godfather, making the banks [a bailout] offer they could not refuse. But in one important respect, he was more Santa Claus than Vito Corleone: the agreement allowed the banks to continue paying dividends to common shareholders. These dividends, if they are paid at current levels, will redirect more than $25 billion of the $125 billion to shareholders in the next year alone. A significant fraction of [the bailout] money will wind up in shareholders’ pockets — and thus be unavailable to plug the large capital hole on the banks’ balance sheets. The officers and directors of the nine banks will be among the leading beneficiaries of the dividend payout. Their personal take of the dividends will amount to approximately $250 million in the first year. Why would the banks want to maintain large dividend payouts when they’ve had such a hard time borrowing, are starved of cash, and the credit markets believe that they run a significant risk of defaulting? Shouldn’t these distressed banks be marshalling all of the financial resources available to them to ensure their viability? Here’s why: Each dollar paid out as a dividend today is a dollar that cannot be seized by creditors in the event of bankruptcy. For a distressed company, dividends are not in the interest of the enterprise as a whole (shareholders and lenders taken together), but only in the interest of shareholders. They are an attempt by shareholders to beat creditors out the door. The government should close the door by putting an immediate stop to the dividend payouts of any banks receiving direct federal support.

Note: Is the fox guarding the hen house? For many revealing, reliable reports on the banking bailout, click here.

Wall Street's 'Disaster Capitalism for Dummies'
2008-10-21, MarketWatch.com (owned by Dow Jones)
http://www.marketwatch.com/news/story/14-reasons-main-street-loses/story.aspx...

Sorry to pop your bubble folks, but it no longer matters who's president. Why? The real "game changer" already happened. Democracy has been replaced by Wall Street's new "disaster capitalism." That's the big game-changer historians will remember about 2008, masterminded by Wall Street's ultimate "Trojan Horse," Hank Paulson. Congress simply handed over voting power and the keys to trillions in the Treasury to Wall Street's new "Disaster Capitalists" who now control "democracy." We let it happen. In one generation America has been transformed from a democracy into a strange new form of government, "Disaster Capitalism." Three decades of influence peddling in Washington ... accelerated under Reaganomics and went into hyperspeed under Bushonomics, both totally committed to a new disaster capitalism run privately by Wall Street and Corporate America. No-bid contracts in wars and hurricanes. A housing-credit bubble -- while secretly planning for a meltdown. Finally, the coup de grace: Along came the housing-credit crisis, as planned. Press and public saw a negative, a crisis. Disaster capitalists saw a huge opportunity. Yes, opportunity for big bucks and control of America. This end game was planned for years in secret war rooms on Wall Street, in Corporate America, in Washington and the Forbes 400. Naomi Klein summarizes the game in Shock Doctrine: the Rise of Disaster Capitalism. This "new economy" generates enormous profits feeding off other peoples' misery: Wars, terror attacks, natural catastrophes, poverty, trade sanctions, subprime housing meltdowns and all kinds of economic, financial and political disasters.

Note: The author of this highly critical commentary, Paul B. Farrell, is a well-known writer on finance and investment and a long-time columnist at The Wall Street Journal's sister-site MarketWatch.

Pentagon Auditors Pressured To Favor Contractors, GAO Says
2008-07-24, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/23/AR20080723014...

Auditors at a Pentagon oversight agency were pressured by supervisors to skew their reports on major defense contractors to make them look more favorable instead of exposing wrongdoing and charges of overbilling, according to an 80-page report released yesterday by the Government Accountability Office. The Defense Contract Audit Agency, which oversees contractors for the Defense Department, "improperly influenced the audit scope, conclusions and opinions" of reviews of contractor performance, the GAO said, creating a "serious independence issue." The report does not name the projects or the contractors involved, but staff members on the Senate Homeland Security and Governmental Affairs Committee who were briefed on the findings cited seven contractors, some of whom are among the biggest in the defense industry: Boeing, Northrop Grumman, Fluor, Parker Hannifin, Sparta, SRS Technologies and a subsidiary of L3 Communications. Supervisors at DCAA attempted to intimidate auditors, prevented them from speaking with GAO investigators and created a "generally abusive work environment," the report said. It cited incidents of "verbal admonishments, reassignments and threats of disciplinary action" against workers who "raised questions about management guidance." The GAO said it launched the two-year inquiry after complaints on a fraud hotline. Its investigators conducted more than 100 interviews of 50 people involved in audits between 2003 and 2007.

Note: For eye-opening reports on government corruption from reliable sources, click here.

Army Overseer Tells of Ouster Over KBR Stir
2008-06-17, New York Times
http://www.nytimes.com/2008/06/17/washington/17contractor.html?partner=rssuse...

The Army official who managed the Pentagon’s largest contract in Iraq says he was ousted from his job when he refused to approve paying more than $1 billion in questionable charges to KBR, the Houston-based company that has provided food, housing and other services to American troops. The official, Charles M. Smith, was the senior civilian overseeing the multibillion-dollar contract with KBR during the first two years of the war. Speaking out for the first time, Mr. Smith said that he was forced from his job in 2004 after informing KBR officials that the Army would impose escalating financial penalties if they failed to improve their chaotic Iraqi operations. Army auditors had determined that KBR lacked credible data or records for more than $1 billion in spending, so Mr. Smith refused to sign off on the payments to the company. “They had a gigantic amount of costs they couldn’t justify,” he said in an interview. But he was suddenly replaced, he said, and his successors — after taking the unusual step of hiring an outside contractor to consider KBR’s claims — approved most of the payments he had tried to block. Mr. Smith’s account fills in important gaps about the Pentagon’s handling of the KBR contract, which has cost more than $20 billion so far and has come under fierce criticism from lawmakers. Mr. Smith ... is giving his account just as the Pentagon has recently awarded KBR part of a 10-year, $150 billion contract in Iraq.

Note: For a summary of US Marine Corps General Smedley Butler's book on war profiteering, click here.

Was Press a War ‘Enabler’? 2 Offer a Nod From Inside
2008-05-30, New York Times
http://www.nytimes.com/2008/05/30/washington/30press.html?partner=rssuserland...

In his new memoir, What Happened, Scott McClellan, the former White House press secretary, said the national news media neglected their watchdog role in the run-up to the invasion of Iraq, calling reporters “complicit enablers” of the Bush administration’s push for war. Surprisingly, some prominent journalists have agreed. Katie Couric, the anchor of “CBS Evening News,” said ... that she had felt pressure from government officials and corporate executives to cast the war in a positive light. Speaking on “The Early Show” on CBS, Ms. Couric said the lack of skepticism shown by journalists about the Bush administration’s case for war amounted to “one of the most embarrassing chapters in American journalism.”She also said she sensed pressure from “the corporations who own where we work and from the government itself to really squash any kind of dissent or any kind of questioning of it.” At the time, Ms. Couric was a host of “Today” on NBC. Another broadcast journalist also weighed in. Jessica Yellin, who worked for MSNBC in 2003 and now reports for CNN, said ... that journalists had been “under enormous pressure from corporate executives, frankly, to make sure that this was a war presented in a way that was consistent with the patriotic fever in the nation.” For five years, antiwar activists and media critics have claimed that the national news media failed to keep the White House accountable before the invasion. Greg Mitchell, the author of So Wrong for So Long, a book about press and presidential failures on the war, argues that some media organizations have yet to come to terms with their role.

Note: For a powerful overview of the media cover-up by top, award-winning journalists, click here.

Lou Dobbs Tonight: NAFTA Superhighway
2008-05-28, CNN News
http://transcripts.cnn.com/TRANSCRIPTS/0805/28/ldt.01.html

[News anchor LOU DOBBS:] Open borders advocates are refusing to acknowledge rising evidence of plans for a NAFTA superhighway. Many in the mainstream media absolutely refuse to acknowledge the reality. The plans could be a major step toward that North American Union of the United States, Canada and Mexico. BILL TUCKER, CNN Correspondent: There is no NAFTA superhighway. Not officially. In Texas planning a development is under way for what are officially called transportation corridors. The Trans Texas Corridor, I-69, a combination of rail lines, utility lines, car and truck lanes, [is planned] to be as wide as three football fields laid end to end. It will be financed by a private foreign company ... who will then own the lease on the road and the revenue generated by the tolls. Texas may use eminent domain to lay claim to some of the land needed to build it. For an imaginary road there's a lot of money and effort involved [and] some very real opposition. TERRI HALL, TEXASTURF.ORG: There's just no doubt that this is happening. We've been to the public hearings. We've seen the presentations. We've seen the documents. We waded through them and there's a whole lot more groups besides just ours. And we've got Farm Bureau, Sierra Club, a whole host of groups from the left and the right. TUCKER: In Kansas a resolution opposing the superhighway overwhelmingly passed the State House.

Note: To watch a video of this Lou Dobbs Tonight segment, click here.

The three trillion dollar war
2008-02-23, The Telegraph (One of the U.K.'s leading newspapers)
http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/articl...

The Bush Administration was wrong about the benefits of the war and it was wrong about the costs of the war. The president and his advisers [forecast] a quick, inexpensive conflict. Instead, we have a war that is costing more than anyone could have imagined. The cost of direct US military operations - not even including long-term costs such as taking care of wounded veterans - already exceeds the cost of the 12-year war in Vietnam and is more than double the cost of the Korean War. And, even in the best case scenario, these costs are projected to be almost ten times the cost of the first Gulf War, almost a third more than the cost of the Vietnam War, and twice that of the First World War. The only war in our history which cost more was the Second World War, when 16.3 million U.S. troops fought in a campaign lasting four years, at a total cost (in 2007 dollars, after adjusting for inflation) of about $5 trillion. Most Americans have yet to feel these costs. The price in blood has been paid by our voluntary military and by hired contractors. The price in treasure has, in a sense, been financed entirely by borrowing. Taxes have not been raised to pay for it - in fact, taxes on the rich have actually fallen. Deficit spending gives the illusion that the laws of economics can be repealed, that we can have both guns and butter. But of course the laws are not repealed. The costs of the war are real even if they have been deferred, possibly to another generation. From the unhealthy brew of emergency funding, multiple sets of books, and chronic underestimates of the resources required to prosecute the war, we have attempted to identify how much we have been spending - and how much we will, in the end, likely have to spend. The figure we arrive at is more than $3 trillion. Our calculations are based on conservative assumptions.

Note: For many reports from major media sources which reveal massive war profiteering, click here.

Advertisers using 'directed sound' to get in your head
2008-02-19, Atlanta Journal-Constitution (Atlanta's leading newspaper)
http://www.ajc.com/services/content/business/stories/2008/02/18/sound_0219.html

If you hear mysterious voices in your head the next time you stroll down the street, they may be trying to sell you something. That was the case recently in New York when people walking beneath a billboard for the A&E show "Paranormal State" suddenly heard a woman's disembodied voice whisper: "Who's there? Who's there?" and "It's not your imagination." The creepy effect was caused by technology called Audio Spotlight that projects sound in a focused beam so only people in a certain spot can hear it. "The idea of directing sound was a real uphill battle when we first started, but all of a sudden people are coming to us saying, 'We have to have directional sound. We don't want all this noise in our store,' " said Woody Norris, founder of American Technology Corp. in San Diego. Norris said he has sold many units for use with video screens in checkout lines in ... grocery stores so audio can reach waiting customers without constantly bombarding store workers. While some of the advertising applications are recent, directed sound is often used in museums and other places where sound must be focused on people standing in front of an exhibit or display without disturbing those around them. Smithsonian museums in Washington have used [such] systems [as have] the New York Public Library, the Boston Museum of Fine Arts and ... the observation deck of the Seattle Space Needle. Directed-sound devices ... use narrow beams of ultrasound waves that can't be heard by human ears. The beam distorts air as it passes through, generating sound people can hear along its length.

Note: It's not hard to imagine non-advertising uses for this invasive technology. Could it possibly be used to influence people's thinking in ways other than advertising?

Stimulus Plan a Scam to Benefit the Rich
2008-02-03, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/03/IN8LUO095.DTL

Congress is about to sell us the biggest fraud in American history. It's been highly touted as an economic stimulus bill that will help millions of Americans. As part of the bill, Congress is set to rush through an increase in the mortgage loan limits for Fannie Mae and Freddie Mac (and Federal Housing Administration insurance, too) - from $417,000 to $729,750 - the first step toward a massive financial disaster in which taxpayers will end up paying through the nose. Now, thanks to Congress, junk bond investors will be able to pawn off their bad debt to Fannie and Freddie. This shift will certainly doom Fannie Mae and Freddie Mac, so don't be surprised if we, the taxpayers, have to bail out poor Fannie and Freddie - to the tune of more than $1 trillion. The irony here is that the collapse in housing prices could make Fannie insolvent even without raising the loan limit. Increasing Fannie's limit is like going on a spending spree with your credit cards because you know you are going to file for bankruptcy in a few months. Only here the taxpayer is left holding the bag. Our children will pay interest on this debt in perpetuity. It is our debt. It is inescapable. In the coming months, Fannie and Freddie will buy up mortgages based on old, fraudulent appraisals and on loans with bogus inflated incomes. Unfortunately, many of these loans will still default. Expansion of Fannie and Freddie's reckless lending is exactly what Congress wants because it's plausibly deniable. Teary-eyed lawmakers can take to the airwaves a year from now and declare: "We had no idea Fannie could go under, but we can't cut and run now. Those same lawmakers won't mention the fact that they get paid far more by real estate lobbyists than they do from our Treasury.

Note: The author wrote this article seven months before the collapse of Fannie Mae and eight months before the huge banking bailout. For more news articles suggestion major manipulations to transfer public tax monies to the banking sector, click here.

U.S. Medical Schools, Drug Makers Share Strong Ties
2007-10-16, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/16/AR20071016014...

More than half of department chairs at U.S. medical schools and teaching hospitals have financial ties with the drug industry, a new study finds. "There is not a single aspect of medicine in which the drug companies do not have substantial and deep relationships, [including] doctors-in-training, resident physicians, researchers, physicians-in-practice, the people who review drugs for the federal government and the people who review studies," said lead researcher Eric Campbell, associate professor at the Institute for Health Policy at Massachusetts General Hospital and Harvard Medical School in Boston. "Drug companies have relationships with everyone," he continued. "They're involved in every aspect of medicine. Someone has to decide which of these is OK." The study, the first to examine the extent of these institutional relationships, is published in the Oct. 17 issue of the Journal of the American Medical Association. "I think the paper is a very valuable contribution, in that it provides what's probably the first comprehensive documentation of the extent of relationships that involve department chairs, and department chairs are certainly the key agents of overseeing and maintaining the day-to-day operations of a medical school or teaching hospital," said Dr. David Korn ... at the Association of American Medical Colleges in Washington, D.C. The issue of medicine's ties to industry has been a hot one of late. One study found that third-year medical students get, on average, one gift or attend one activity sponsored by a drug maker each week. "Now it's up to the policymakers and people who run medical schools," said Campbell. "They need to come up with some rules and they need to be new rules. I believe there's very little reasonable justification for why drug companies should be involved in the education of medical students."

Note: For a powerful overview of medical corruption, click here.

Report Assails F.D.A. Oversight of Clinical Trials
2007-09-27, New York Times
http://www.nytimes.com/2007/09/28/health/policy/28fda.html?ex=1348632000&en=d...

The Food and Drug Administration does very little to ensure the safety of the millions of people who participate in clinical trials, a federal investigator has found. The inspector general of the Department of Health and Human Services, Daniel R. Levinson, said federal health officials did not know how many clinical trials were being conducted, audited fewer than 1 percent of the testing sites and, on the rare occasions when inspectors did appear, generally showed up long after the tests had been completed. The F.D.A. has 200 inspectors, some of whom audit clinical trials part time, to police an estimated 350,000 testing sites. Even when those inspectors found serious problems in human trials, top drug officials in Washington downgraded their findings 68 percent of the time, the report found. Among the remaining cases, the agency almost never followed up with inspections to determine whether the corrective actions that the agency demanded had occurred. “In many ways, rats and mice get greater protection as research subjects in the United States than do humans,” said Arthur L. Caplan, chairman of the department of medical ethics at the University of Pennsylvania. Animal research centers have to register with the federal government, keep track of subject numbers, have unannounced spot inspections and address problems speedily or risk closing, none of which is true in human research, Mr. Caplan said. Because no one collects the data systematically, there is no way to tell how safe the nation’s clinical research is or ever has been. The drug agency oversees just the safety of trials by companies seeking approval to sell drugs or devices. Using an entirely different set of rules, the Office for Human Research Protections oversees trials financed by the federal government. Privately financed noncommercial trials have no federal oversight.

Note: For further information on corruption in the health care industry, click here.

Who Runs the CIA? Outsiders for Hire.
2007-07-08, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/06/AR20070706019...

The most intriguing secrets of the "war on terror" have nothing to do with al-Qaeda and its fellow travelers. They're about the mammoth private spying industry that all but runs U.S. intelligence operations today. In April, Director of National Intelligence Mike McConnell was poised to publicize a year-long examination of outsourcing by U.S. intelligence agencies. But the report was inexplicably delayed -- and suddenly classified a national secret. What McConnell doesn't want you to know is that the private spy industry has succeeded where no foreign government has: It has penetrated the CIA and is running the show. Over the past five years (some say almost a decade), there has been a revolution in the intelligence community toward wide-scale outsourcing. Private companies now perform key intelligence-agency functions, to the tune ... of more than $42 billion a year. Intelligence professionals [say] that more than 50 percent of the National Clandestine Service (NCS) -- the heart, brains and soul of the CIA -- has been outsourced to private firms such as Abraxas, Booz Allen Hamilton, Lockheed Martin and Raytheon. These firms recruit spies, create non-official cover identities and control the movements of CIA case officers. They also provide case officers and watch officers at crisis centers and regional desk officers who control clandestine operations worldwide. As The Los Angeles Times first reported last October, more than half the workforce in two key CIA stations -- Baghdad and Islamabad, Pakistan -- is made up of industrial contractors, or "green badgers," in CIA parlance. Intelligence insiders say that entire branches of the NCS have been outsourced to private industry.

Psychiatrists Top List in Drug Maker Gifts
2007-06-27, New York Times
http://www.nytimes.com/2007/06/27/health/psychology/27doctors.html?ex=1340596...

As states begin to require that drug companies disclose their payments to doctors for lectures and other services, a pattern has emerged: psychiatrists earn more money from drug makers than doctors in any other specialty. How this money may be influencing psychiatrists and other doctors has become one of the most contentious issues in health care. For instance, the more psychiatrists have earned from drug makers, the more they have prescribed a new class of powerful medicines known as atypical antipsychotics to children, for whom the drugs are especially risky and mostly unapproved. Vermont officials disclosed Tuesday that drug company payments to psychiatrists in the state more than doubled last year, to an average of $45,692 each from $20,835 in 2005. Antipsychotic medicines are among the largest expenses for the state’s Medicaid program. Over all last year, drug makers spent $2.25 million on marketing payments, fees and travel expenses to Vermont doctors, hospitals and universities, a 2.3 percent increase over the prior year, the state said. The number most likely represents a small fraction of drug makers’ total marketing expenditures to doctors since it does not include the costs of free drug samples or the salaries of sales representatives and their staff members. According to their income statements, drug makers generally spend twice as much to market drugs as they do to research them. Endocrinologists received the second largest amount, according to the Vermont analysis, earning an average of $33,730. Since the state identified the specialties of only the top 100 earners, these averages represent the money earned by only some of the state’s specialists. There were 11 psychiatrists and 5 endocrinologists in that top group of 100.

Note: For much more reliable, verifiable information on corruption in the pharmaceutical industry, click here.

Doctors’ Ties to Drug Makers Are Put on Close View
2007-03-21, New York Times
http://www.nytimes.com/2007/03/21/us/21drug.html?ex=1332129600&en=8ab21926768...

Dr. Allan Collins ... is president of the National Kidney Foundation. In 2004 ... the pharmaceutical company Amgen, which makes the most expensive drugs used in the treatment of kidney disease, underwrote more than $1.9 million worth of research and education programs led by Dr. Collins. In 2005, Amgen paid Dr. Collins at least $25,800, mostly in consulting and speaking fees. The payments to Dr. Collins and the research center ... come from Minnesota, the first of a handful of states to pass a law requiring drug makers to disclose payments to doctors. The Minnesota records are a window on the widespread financial ties between pharmaceutical companies and the doctors who prescribe and recommend their products. From [1997] through 2005, drug makers paid more than 5,500 doctors, nurses and other health care workers in the state at least $57 million. More than 100 people received more than $100,000. Research shows that doctors who have close relationships with drug makers tend to prescribe more, newer and pricier drugs — whether or not they are in the best interests of patients. Drug companies “want somebody who can manipulate in a very subtle way,” said Dr. Frederick R. Taylor. Kathleen Slattery-Moschkau, a former sales representative [said] “it all comes down to ways to manipulate the doctors.” Some of the doctors receiving the most money sit on committees that prepare guidelines instructing doctors nationwide about when to use medicines. “It is critical that the experts who write clinical guidelines be prohibited from having any conflicts of interest,” said Dr. Marcia Angell, a former editor of The New England Journal of Medicine.

Note: This article only scratches the surface of legal and illegal corruption by the powerful pharmaceutical industry. If you care about who really controls our health system, don't miss Dr. Marcia Angell's incredibly revealing essay showing the unbelievable wealth and influence of the drug companies available here.

Carlyle Changes Its Stripes
2007-02-12, BusinessWeek
http://www.businessweek.com/magazine/content/07_07/b4021001.htm

In the two decades since private equity firms first stormed the business world, they've been called a lot of things, from raiders to barbarians. But only [the Carlyle Group] has been tagged in the popular imagination with warmongering, treason, and acting as cold-eyed architects of government conspiracies. Carlyle, founded 20 years ago in the shadow of Washington's power centers, long went about its business far from the public eye. Its ranks were larded with the politically connected, including former Presidents, Cabinet members, even former British Prime Minister John Major. It used its partners' collective relationships to build a lucrative business buying, transforming, and selling companies -- particularly defense companies that did business with governments. Carlyle's radical makeover has turned the firm into the biggest fund-raising juggernaut the private equity world has ever seen. By the end of this year it expects to have an unprecedented $85 billion in investor commitments under management, up sixfold from 2001 and more than any other firm. [Founder David] Rubenstein sees the total swelling to as much as $300 billion by 2012. Make no mistake--Carlyle is already massive. It owns nearly 200 companies that generate a combined $68 billion in revenue and employ 200,000 people. Last year it bought a new company approximately once every three days and sold one almost once a week -- all while dabbling in increasingly esoteric investments. Since its founding in 1987 it has generated annualized after-fee returns of 26%, compared with the industry average in the mid-teens.

Note: With former presidents including George H.W. Bush and many other top world politicians helping to sway huge military contracts, could this be considered a form of insider trading? Those 26% yearly returns are placing our tax monies in the hands of individuals and companies that are already among the wealthiest in the world. For lots more on manipulation of your tax money, click here. And for a Washington Post article showing Osama Bin Laden's brother met with George H.W. Bush at a Carlyle meeting one day before 9/11, click here.

Bribes offered to scientists
2007-02-03, Sydney Morning Herald (Australia's leading newspaper)
http://www.smh.com.au/news/environment/bribes-offered-to-scientists/2007/02/0...

Scientists and economists have been offered $10,000 each by a lobby group funded by one of the world's largest oil companies to undermine the UN climate change report. Letters sent by the American Enterprise Institute, an ExxonMobil-funded think tank with close links to the Bush Administration, offered the payments for articles that emphasise the shortcomings of the report. Travel expenses and additional payments were also offered. The institute has received more than $1.6 million from ExxonMobil - which yesterday announced a $50 billion annual profit, the biggest ever by a US company - and more than 20 of its staff have worked as consultants to the Bush Administration. A former head of ExxonMobil, Lee Raymond, is the vice-chairman of the institute's board of trustees.

Note: Why wasn't this important story covered by any major media in the U.S.? For an answer, click here.

Drug company 'hid' suicide link
2007-01-29, BBC News
http://news.bbc.co.uk/1/hi/programmes/panorama/6291773.stm

Secret emails reveal that the UK's biggest drug company distorted trial results of an anti-depressant, covering up a link with suicide in teenagers. GlaxoSmithKline (GSK) attempted to show that Seroxat worked for depressed children despite failed clinical trials. And that GSK-employed ghostwriters influenced 'independent' academics. GSK faces action in the US where bereaved families have joined together to sue the company. As a result, GSK has been forced to open its confidential internal archive. Karen Barth Menzies is a partner in one of the firms representing many of the families. She has examined thousands of the documents which are stored, box upon box, in an apartment in Malibu, California. She said: "Even when they have negative studies that show that this drug Seroxat is going to harm some kids they still spin that study as remarkably effective and safe for children." An email from a public relations executive working for GSK ... said: "Originally we had planned to do extensive media relations surrounding this study until we actually viewed the results. Essentially the study did not really show it was effective in treating adolescent depression, which is not something we want to publicise." Seroxat was banned for under 18s in 2003 after the MHRA revealed that GSK's own studies showed the drug actually trebles the risk of suicidal thoughts and behaviour in depressed children.

Note: For more reliable information on how the drug companies put profits ahead of your health, click here.

Molecule offers cancer hope
2007-01-17, Toronto Star (One of Canada's leading newspapers)
http://www.thestar.com/News/article/171898

In results that "astounded" scientists, an inexpensive molecule known as DCA was shown to shrink lung, breast and brain tumours in both animal and human tissue experiments. The study was published yesterday in the journal Cancer Cell. "I think DCA can be selective for cancer because it attacks a fundamental process of cancer that is unique to cancer cells," said Dr. Evangelos Michelakis, a professor at the Edmonton university's medical school and one of the study's key authors. The molecule appears to repair damaged mitochondria in cancer cells. "When a cell is getting too old or doesn't function properly, the mitochondria are going to induce the cell death," lead study author Sebastien Bonnet said yesterday. Bonnet says DCA – or dichloroacetate – appears to reverse the mitochondrial changes in a wide range of cancers. "One of the really exciting things about this compound is that it might be able to treat many different forms of cancer because all forms of cancer suppress mitochondrial function," Michelakis said. Bonnet says DCA may also provide an effective cancer treatment because its small size allows easy absorption into the body, ensuring it can reach areas that other drugs cannot, such as brain tumours. Because it's been used to combat other ailments ... DCA has been shown to have few toxic effects on the body. Its previous use means it can be immediately tested on humans. Unlike other cancer drugs, DCA did not appear to have any negative effect on normal cells. It could provide an extremely inexpensive cancer therapy because it's not patented. But ... the lack of a patent could lead to an unwillingness on the part of pharmaceutical companies to fund expensive clinical trials.

Note: Even these scientists realize that though this discovery could be a huge benefit to mankind, because the drug companies will lose profits, they almost certainly will not fund studies. Expensive AIDS drugs with promising results, on the other hand, are rushed through the studies to market. For more reliable, verifiable information on how hugely beneficial health advances are shut down to keep profits high, click here and here.

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