The New Old Age Blog: Home Health Care Help by the Hour

Here is a bright idea that ought to spread: You call your home care agency and say you will need your mother’s aide for the normal two hours on Monday and Wednesday, but for just half an hour (to drive her to a doctor’s office) on Tuesday, then 90 minutes on Thursday. And the agency says, “Sure.”

It sounds logical to hire someone to help — with bathing, dressing, errands, meal preparation, medication reminders – for only as many hours as an older adult needs assistance. But it is actually unusual for companies to offer such flexibility.

The majority of agencies require a four-hour minimum. Having to spend $80  — the national average cost for home care is $21 an hour — if you only need $40 worth of help is a big barrier for families trying to keep their elderly relatives living at home longer. A few agencies allow you to hire for fewer than four hours, but at higher rates.

But Mission Healthcare in San Diego, Calif., a three-year-old agency that began with Medicare-certified skilled home nursing and hospice care, expanded to general home care this summer and decided that clients should be able to specify how much help they want – in 15-minute increments — and will pay for.

“We’ll come for as long as they need us to,” said Mark Kimsey, one of Mission’s four directors. “In one hour, a well-trained caregiver can get the client bathed and dressed, prepare three meals and have them organized for the day.” (I have to think that is a speedy caregiver with a not-too-frail client, but still … )

Can Mission, which charges $19 to $20 an hour, actually make money this way? Though overall the agency serves 1,100 clients, its fledgling home care business is still small: 30 aides caring for just 60 clients. The aides can get benefits if they work enough hours, a bonus for them and for consumers (better employees, lower turnover), but an additional cost for the company.

The directors say they are profitable already, and that the approach will succeed because more people will like the flexibility and potential savings, and sign up. It is also true, let’s acknowledge, that a person who can get by with an hour or two a day for now may well need more help eventually, a boost for Mission’s bottom line.

Competitors are no doubt watching to see if this works. I’m curious, too, to see if the policy catches on. “Consumers can change the marketplace if they want to,” Mr. Kimsey said. It would be nice to think that is true.

Would you use this kind of hourly service, if it were available?

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

Lining up even earlier for Black Friday becomes a shop priority

In a tradition that seems to take a bigger slice of Thanksgiving every year, hordes of deal-sniffing shoppers descended on Southland stores Thursday, elbowing their way in search of toys, video games and that time-honored Black Friday symbol: cut-rate television sets. As nightfall came, they huddled in long lines, clutching coupons and hatching shopping strategies.

Rebecca Abbott, 42, of Torrance had it down to a science Thursday night. The accountant said she was out the door of the local Toys R Us store in 20 minutes with a shopping cart full of Christmas gifts for her two daughters. 

Her fourth time shopping on Black Friday, Abbott had spent a few hours in Toys R Us the day before scoping out her plan of attack. The first item on her list: a Rockstar Mickey Mouse doll, normally priced at $59.99 but selling for just $19.99.

"You have to have a strategy for this Black Friday madness," she said as she headed for the door. "First-timers will walk around all day looking at deals," Abbott said. "I got in, grabbed my stuff and got out." Her cart was overflowing with large toys — primarily Barbie and Mickey Mouse items. 

PHOTOS: Black Friday shoppers hunt for deals

At a Wal-Mart in Panorama City, just after 8 p.m., "it was really crazy, but you could still walk," said Marya Huaman, 23, as she left the store with her dad, her two infant sons and three bags full of Fisher-Price toys.

"No, you couldn't," scoffed her father, Edward Huaman. "I didn't see anyone fighting, but they will be soon. This is madness."

Last year, Thanksgiving night was marred by a pepper spray "shopping rage" incident at a Wal-Mart in Porter Ranch that injured at least seven people and forced employees to evacuate part of the store. One person was hospitalized.

Los Angeles Police Cmdr. Andy Smith said Thursday that the night appeared to be running smoothly across Los Angeles. "In general, I think things have gone really well," he said. "It sounds like the stores have taken proper precautions and everyone is aware of the hazards of Black Friday."

After retailers last year moved the opening bell for Black Friday sales to midnight, this year there were even more customers eager to get a jump on the traditional kickoff to the holiday shopping season. Wal-Mart, Sears and Toys R Us began rolling out their door busters at 8 p.m. on Turkey Day, followed by Target at 9 p.m. Macy's, Kohl's and Best Buy were set to open at midnight.

A handful of chains such as Kmart and Old Navy also had daytime hours on Thursday. And online merchants were touting bargains all day and night.

About 147 million shoppers are expected this all-important holiday weekend, with more logging in for online specials by Cyber Monday, according to the National Retail Federation. In all, the trade group estimated that holidays sales will rise 4.1% this year, to $586 billion.

"Though the Black Friday tradition is here to stay, there's no question that it has changed in recent years," NRF Chief Executive Matthew Shay said in a statement.

Many shoppers were perfectly content to queue up. At Best Buy electronic stores across the Southland, people waited for hours — and sometimes days — in tents before the midnight opening.

But many workers were angry about spending Turkey Day away from loved ones.

Frustrated retail employees and families have taken to creating online petitions at Change.org to beg companies not to cut into Thanksgiving dinners. More than 20 online petitions have popped up in recent weeks. Lines grew throughout the afternoon and into the evening as anxious shoppers surveyed the competition in line.

Throughout Southern California there were reports of lines wrapped around stores. In Glendale, more than 750 shoppers were lined up outside the Target at the Galleria.

For shoppers who just couldn't wait until Thursday night — much less Black Friday — some retailers opened their doors all day on Thanksgiving.

The sales weren't quite as glorious as the Black Friday specials that stores promise to roll out later. But they were pretty good nonetheless, shoppers said.

JoAnne Garcia walked into Kmart in Burbank in search of a roasting pan in which to cook her turkey. She walked out 90 minutes later, having shelled out $491, including $329 for an RCA 39-inch LCD flat-panel TV.

"The roasting pan was $14.99," Garcia said, laughing at how much she spent as she rolled her cart to the parking lot.

To the 53-year-old aerospace machinist, shopping on Thanksgiving made perfect sense.

Standing near a store display touting "Freak Out Pricing," Garcia explained her theory about shopping while cooking. "You get up, throw your turkey in the oven, and you come back and it's all done."

walter.hamilton@latimes.com

joseph.serna@latimes.com

Contributing to this report were staff writers Wesley Lowery, Marisa Gerber, Nicole Santa Cruz and Andrew Khouri.

Read More..

New California legislators get a warm welcome — from lobbyists

SACRAMENTO — The day after being elected to the state Assembly, several incoming lawmakers were in AT&T's luxury suite at the Sacramento sports arena, watching the Kings with the company's top Capitol executive.

The next day, the California Dental Assn. feted the state's freshman legislators. That was before more than 20 legislators jetted off to Hawaii, China, Brazil, New Zealand and other locales — with some trips paid for in large part by healthcare, energy and communications companies.

"It's the start of lobbyists inculcating them, saying 'Hey guys, line up and receive your gifts,' " said Bob Stern, former chief counsel to the state Fair Political Practices Commission.

It's a new day in Sacramento, with one of the largest-ever freshman classes elected in districts drawn for the first time by an independent, bipartisan commission.

And the lobbying campaign to shape their minds has begun.

The intent of the redistricting — as well as a rule change that allows lawmakers to serve up to 12 years in either legislative house — was to make the Capitol more accountable. In theory, the changes would reduce the influence of lobbyists and give lawmakers more time to gain expertise and independence.

But old traditions die hard.

Following the example of veteran legislative leaders, including Assembly Speaker John Pérez (D-Los Angeles), more than a dozen Democratic freshmen headed off to AT&T's suite at the Sleep Train Arena.

Lawmakers are not allowed to take more than $420 in gifts per year, and they are supposed to report what they receive. But sidestepping the rules is hardly a challenge.

The freshmen who joined Pérez didn't have to report the value of their tickets because the gathering was hosted by the state Democratic Party.

Jose Medina, a newly elected assemblyman from Riverside, said the event was totally appropriate. Spending time with lobbyists is "part of my job,'' he said.

"At the end of the day, I'll make my decision based on what is best for the people I represent," he said.

Jim Frazier, a freshman assemblyman from Oakley, called the evening "a great opportunity to start meeting the people who worked so hard to represent their districts."

Other freshman Democrats in the suite included Ken Cooley of Rancho Cordova, Marc Levine of San Rafael, Phil Ting of San Francisco, Kevin Mullin of South San Francisco, Rudy Salas of Bakersfield, Bill Quirk of Hayward and Reggie Jones-Sawyer of Los Angeles.

Jones-Sawyer was one of 15 legislators who flew a few days later to Maui for a five-day conference at the Fairmont Kea Lani organized by the California Independent Voter Project.

The group, which paid some of the legislators' travel expenses, has been funded over the years by tobacco giant Altria Group Inc., Southern California Edison, Eli Lilly & Co., Pacific Gas & Electric Co., the California Beer & Beverage Distributors, the Pharmaceutical Research and Manufacturers Assn., Chevron Corp. and the state prison guards union.

In between rounds of golf and poolside lounging, the sponsors talked with lawmakers.

"I was learning about the issues," said Jones-Sawyer, the only freshman on the trip. "There were some things I didn't know — such as how businesses really need help to flourish here in California."

Phillip Ung, an advocate with California Common Cause, said he found the explanations bewildering.

"They have obviously convinced themselves that the people's business is best solved poolside with mai tais in hand," he said. "Congress banned this type of travel years ago."

Other lawmakers went to China, Australia, New Zealand or Brazil this month, in some cases paid for by special interests.

Those in Brazil were sponsored by the California Foundation on the Environment and the Economy, which is bankrolled by Chevron, PG&E, the International Brotherhood of Electrical Workers and Southern California Edison, among others.

The sponsors sent representatives to accompany Assemblyman Steven Bradford (D-Gardena), who is chairman of the Assembly Utilities and Commerce Committee, as well as Sens. Anthony Cannella (R-Ceres), Mimi Walters (R-Laguna Niguel), Bill Emmerson (R-Hemet) and Michael Rubio (D-East Bakersfield).

The group paid for airfare, hotels, meals and ground transportation, said P.J. Johnston, a spokesman for the nonprofit foundation.

The lawmakers were there to meet with government and business leaders in Brazil to discuss reducing pollution, setting low-carbon fuel standards, transportation projects and other issues, Johnston said.

"Brazil provides real-world insight into issues California's decision-makers are grappling with, putting them in a larger perspective and offering lessons learned from a country with a rich history of challenges and successes in these areas," he said.

patrick.mcgreevy@latimes.com

Times staff writer Anthony York contributed to this report.

Read More..

Chevy Chase is leaving NBC's sitcom 'Community'

LOS ANGELES (AP) — The NBC series "Community" will finish the season without Chevy Chase.

Sony Pictures Television said Wednesday that the actor is leaving the sitcom by mutual agreement with producers.

His immediate departure means he won't be included in the last episode or two of the show's 13-episode season, which is still in production.

Chase had a rocky tenure playing a bored and wealthy man who enrolls in community college. The actor publicly expressed unhappiness at working on a sitcom and feuded last year with the show's creator and former executive producer, Dan Harmon.

The fourth-season premiere of "Community" is Feb. 7, when it makes a delayed return to the 8 p.m. EST Thursday time slot. The show's ensemble cast includes Joel McHale and Donald Glover.

Read More..

Recipes for Health: Apple Pear Strudel — Recipes for Health

Andrew Scrivani for The New York Times

This strudel is made with phyllo dough. When I tested it the first time, I found that I had enough filling for two strudels. Rather than cut the amount of filling, I increased the number of strudels to 2, as this is a dessert you can assemble and keep, unbaked, in the freezer.

Filling for 2 strudels:

1/2 pound mixed dried fruit, like raisins, currants, chopped dried figs, chopped dried apricots, dried cranberries

1 1/2 pounds apples (3 large) (I recommend Braeburns), peeled, cored and cut in 1/2-inch dice

1 tablespoon fresh lemon juice

2 tablespoons unsalted butter for cooking the apples

1/4 cup (50 grams) brown sugar

1 teaspoon vanilla

1 teaspoon cinnamon

1/2 teaspoon freshly grated nutmeg

1/4 cup (30 grams) chopped or slivered almonds

3/4 pound (1 large or 2 small) ripe but firm pears, peeled, cored and cut in 1/2-inch dice

For each strudel:

8 sheets phyllo dough

7/8 cup (100 grams) almond powder, divided

1 1/2 ounces butter, melted, for brushing the phyllo

1. Preheat the oven to 375 degrees. Line 2 sheet pans with parchment.

2. Place the dried fruit in a bowl and pour on hot or boiling water to cover. Let sit 5 minutes, and drain. Toss the apples with the lemon juice.

3. Heat a large, heavy frying pan over high heat and add 2 tablespoons butter. Wait until it becomes light brown and carefully add the apples and the sugar. Do not add the apples until the pan and the butter are hot enough, or they won’t sear properly and retain their juice. But be careful when you add them so that the hot butter doesn’t splatter. When the apples are brown on one side, add the vanilla, cinnamon, nutmeg and almonds, flip the apples and continue to sauté until golden brown, about 5 to 7 minutes. Stir in the pears and dried fruit, then scrape out onto one of the lined sheet pans and allow to cool completely. Divide into two equal portions (easiest to do this if you weigh it).

4. Place 8 sheets of phyllo dough on your work surface. Cover with a dish towel and place another, damp dish towel on top of the first towel. Place a sheet of parchment on your work surface horizontally, with the long edge close to you. Lay a sheet of phyllo dough on the parchment. Brush lightly with butter and top with the next sheet. Continue to layer all eight sheets, brushing each one with butter before topping with the next one.

5. Brush the top sheet of phyllo dough with butter. Sprinkle on half of the almond powder (50 grams). With the other half, create a line 3 inches from the base of the dough, leaving a 2 1/2-inch margin on the sides. Top this line with one portion of the fruit mixture. Fold the bottom edge of the phyllo up over the filling, then fold the ends over and roll up like a burrito. Using the parchment paper to help you, lift the strudel and place it on the other parchment-lined baking sheet. Brush with butter and make 3 or 4 slits on the diagonal along the length of the strudel. Repeat with the other sheets of phyllo to make a second strudel. If you are freezing one of them, double-wrap tightly in plastic.

6. Place the strudel in the oven and bake 20 minutes. Remove from the oven, brush again with butter, rotate the pan and return to the oven. Continue to bake for another 20 to 25 minutes, or until golden brown. Remove from the heat and allow to cool for at least 15 minutes. Serve warm or room temperature.

Yield: 2 strudels, each serving 8

Advance preparation: The fruit filling will keep for a couple of days in the refrigerator. The strudel can be baked a few hours before serving it. Recrisp in a medium oven for 10 minutes. It can also be frozen before baking, double-wrapped in plastic. Transfer directly from the freezer to the oven and add 10 minutes to the baking time.

Nutritional information per serving: 259 calories; 13 grams fat; 4 grams saturated fat; 3 grams polyunsaturated fat; 5 grams monounsaturated fat; 15 milligrams cholesterol; 34 grams carbohydrates; 4 grams dietary fiber; 91 milligrams sodium; 4 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

Read More..

Car review: 2013 Nissan Pathfinder at a glance

Used Cars

Dealer and private-party ads

Make:

Model:

Price Range:

to


Search within:

miles of ZIP

Read More..

Ex-hedge fund manager Mathew Martoma accused of insider trading

NEW YORK — After building a huge stake in two drug companies, hedge fund manager Mathew Martoma told his powerful boss on a Sunday morning that they had to immediately dump their position.

It was an unusual request even by the outsized standards of Wall Street, but the hedge fund quietly liquidated its $700-million position within days.

Federal authorities suggested Tuesday why Martoma was in such a hurry back in 2008 — he'd allegedly gotten an illegal tip about big problems with the companies' developmental Alzheimer's drug. It was the most profitable insider-trading scheme in U.S. history, netting $276 million in profit and avoided losses, according to prosecutors.

But it resulted in criminal charges against Martoma and a swirl of questions about his boss, Steven Cohen, who is one of the most celebrated figures on Wall Street.

Cohen is worth an estimated $8.8 billion and lives in a 35,000-square-foot mansion in Greenwich, Conn., that includes an ice rink and Zamboni machine. He helped bankroll a failed bid last year to buy the Dodgers.

His firm, SAC Capital Advisors, has drawn attention in recent years as the government launched a massive crackdown on insider trading.

The hedge fund reportedly told clients it received a subpoena seeking a "broad" array of documents in late 2010. Around that time, two hedge funds founded by SAC alumni were raided by FBI agents as the government pursued its insider probe.

Martoma is the fifth person affiliated with SAC Capital to be charged in insider-related cases. Cohen's ex-wife sued him three years ago, alleging that her former husband amassed his fortune partly through insider trading.

Cohen was not named in the dual federal and civil complaints Tuesday, but experts said the government might have him in its sights.

In a civil complaint filed by the Securities and Exchange Commission, Cohen is referred to as "Portfolio Manager A," the Wall Street Journal reported. The companion criminal action lists Cohen as the "owner" of hedge funds involved in the scheme, the Journal said.

"He is to hedge funds what Michael Milken, back in the '80s, was to investment bankers," said John Coffee, a law professor at Columbia University. "The government seems to be within one move of getting a key witness against one of the most important figures in the new universe of hedge funds."

An SAC spokesman disputed that.

"Mr. Cohen and SAC are confident that they have acted appropriately and will continue to cooperate with the government's inquiry," the spokesman said in a statement.

Martoma's lawyer denied wrongdoing by his client.

"Mathew Martoma was an exceptional portfolio manager who succeeded through hard work and the dogged pursuit of information in the public domain," the lawyer, Charles Stillman, said in a statement. "What happened today is only the beginning of a process that we are confident will lead to Mr. Martoma's full exoneration."

The case revolves around a drug developed by Irish biotechnology company Elan Corp. and New Jersey-based pharmaceutical giant Wyeth, which was acquired by Pfizer Inc. in 2009.

Martoma specialized in healthcare stocks for an SAC unit called CR Intrinsic. He got a series of tips about the drug, bapineuzumab, from Dr. Sidney Gilman, a neurology professor at the University of Michigan, the government said.

Gilman consulted for Elan and Wyeth. Martoma was connected to Gilman by an "expert network" that matches investors with specialists in various fields.

After initial optimism about bapineuzumab, a clinical trial showed disappointing results. Gilman allegedly alerted Martoma to the test results shortly before public disclosure in July 2008, prompting Martoma's 8:52 a.m. email to Cohen.

The subsequent selling accounted for a whopping 20% of Elan's trading volume and 11% of Wyeth's at one point, according to the FBI. The fund even bet against the companies by "shorting" their stocks.

"And so, just like that, overnight, Martoma went from bull to bear as he tried to dig his hedge fund out of a massive hole," Preet Bharara, the U.S. attorney in Manhattan, said at a news conference.

Elan shares slumped 42% the day after the results were revealed.

Martoma is the fifth former SAC employee and the 73rd defendant accused of insider trading by Bharara's office since August 2009. Of those defendants, 69 have been convicted, most of them through plea agreements.

Bharara's office agreed to not prosecute Gilman, 80, in exchange for his testimony.

Martoma, 38, got an annual bonus of $9.3 million, primarily stemming from the profits in Elan stock, according to the government.

He got no bonus after disappointing years in 2009 and 2010 and was terminated in 2010. According to the government, an email recommending his termination said Martoma appeared to be a "one trick pony with Elan."

andrew.tangel@latimes.com

walter.hamilton @latimes.com

Read More..

The New Old Age Blog: Patience, Consciousness and White Lies

My wife and I are blessed with having three “semi-independent” parents in their mid-80s living within a few blocks of us. Our kids grew up knowing their grandparents as integral parts of our nuclear family, within walking distance for most of their childhoods. But now that our nest is empty, we find ourselves reliving many of the parenting issues we faced when our kids were little — now in geriatric versions, at close range. As it turns out, parenting our kids was good practice for the issues we face with our parents.

What exactly does semi-independence mean as applied to elderly parents? Among our three, we have two canes, five walkers, one wheelchair (for long walks), four artificial joints, a pacemaker, four hearing aides and a knee brace. The list of medical conditions is long, and the list of medications even longer, requiring different color pill box organizers for morning, afternoon and evening.

Our parents all live in the same homes they’ve been in for many years. Keeping them safe and healthy there, as well as when they leave the house, has become a big part of our day-to-day work these days. Therein the yin and yang of parenting has returned — independence versus helicoptering.

Children’s yearning for independence begins in toddlerhood: “I can do it myself!” It escalates through childhood, accelerates with the driver’s license, and crescendos, with pomp and circumstance, at high school graduation.

The urge for independence is seen in all animal species, but relinquishing independence and accepting assistance in old age is unique to humans. For most elderly, it comes with a struggle, reflecting how hardwired our brains are for independence. The thought of getting in-home help is antithetical to our parents’ sense of self worth, exceeded only by the dread of leaving their homes for assisted living facilities. So, as tasks that were once mundane and automatic have become onerous and stressful for them, we attempt to foster autonomy while protecting them from harm, as we did with our kids just a few short years ago.

Childproofing – Our home has again become hazardous, as have their homes. Furniture must be rearranged, booster seats placed on chairs to ease standing up, slippery rugs removed, lighting improved, bathrooms accessorized with handles and rails.

Dressing – Body shapes change in childhood and in old age. Our parents’ wardrobes, like those of our kids before them, need frequent attention to preserve self-esteem. Their unwillingness to part with old clothes turns us into tailors. And, once again, we shop for slip-on sneakers with Velcro ties.

Driving – For our teens, driving was the symbolic liberation from childhood to young adulthood. For our parents, driving is the symbolic resistance to infirmity and old age. Our attempt to wean them from their cars, in precisely the reverse order we used to phase our teens into driving, has been torture for our parents and for us.

Toys – We’ve filled our parents’ shelves with new toys to help them with everything from opening cartons of milk (I’d like a word with whoever designed those plastic pull loops) and zipping their clothes, to opening jars and removing the protective seals from over-the-counter medicines. A “picker-upper” device helps them avoid bending too low, and a key turner gives them leverage to open their door. Large digital clock faces, easy-read telephone keypads, and magnifying glasses keep them in touch with the world, and an e-mail printer keeps them in touch with their grandchildren.

Medicating – Filling those plastic pill box organizers with a week’s worth of medicines has become a personal barometer of competence for our parents, yet, as with our kids when they were young, we feel compelled to oversee the dosing.

Mobility – Despite numerous falls, it was only with much teeth gnashing (or denture gnashing, as the case may be) that our mothers consented to use canes; more gnashing when canes gave way to walkers. For long walks, we hide the wheelchair half way there and back so the neighbors don’t see.

The more we do for our parents, the more frail and guilty they feel. Our efforts are sometimes resented. Helping them get in and out of the car, or bracing them under the arm as they negotiate a bumpy sidewalk, can be an affront. “I can do it myself!”

Can I ride my bike to tennis practice if I’m really careful crossing Holly Street? Why can’t I take a cab home from the seniors program at the community center? Can I walk to grandma’s by myself this time? Can I take the bus to the supermarket today? All the kids are hanging out at the park after school, can I go? I’ll just walk down the block to the neighbor’s house this afternoon, O.K.?

What wisdom did we gain the first time around to help us now? Patience, consciousness and white lies.

Patience to wait for them to come to the same conclusions we did. Mom, do you think Rosalind would have fallen and broken both wrists if she had been using a walker?

Consciousness about their need for independence as ballast to our need for their well-being. Why don’t you just let us drive you at night for now?

And white lies – I’m going to the supermarket anyway, we can shop together.

The longer we can protect our parents from harm, the more we can share our lives with them and the more joy they can have from their grandchildren. The trick is doing it without hurting them in other ways.

We’ve been through this before. It was worth it then, and it’s worth it now.

Dr. Harley A. Rotbart is professor and vice chairman of pediatrics at the University of Colorado School of Medicine and the author of “No Regrets Parenting.”

Read More..

Fed chairman urges Obama, Congress to try to avoid 'fiscal cliff'

WASHINGTON — Federal Reserve Chairman Ben S. Bernanke urged President Obama and Congress to shield the fragile economy from the full brunt of the so-called fiscal cliff or risk another recession just as the recovery is taking hold.

Speaking Tuesday at the New York Economic Club, Bernanke warned that the Fed doesn't have the tools left to offset the one-two punch of significantly higher taxes and sharply reduced government spending set to begin in January.

"Coming together to find fiscal solutions will not be easy, but the stakes are high," Bernanke said.

The housing market recently has shown "some clear signs of improvement," but the economic recovery still faces significant head winds. Among them is U.S. fiscal policy, which he said "may intensify in force in coming quarters."

"Congress and the administration will need to protect the economy from the full brunt of the severe fiscal tightening at the beginning of next year that is built into current law — the so-called fiscal cliff," he said.

"The realization of all of the automatic tax increases and spending cuts that make up the fiscal cliff, absent offsetting changes, would pose a substantial threat to the recovery," Bernanke said.

He noted that the Congressional Budget Office and many economists project "a fiscal shock of that size would send the economy toppling back into recession."

If the White House and Congress can't reach a deal to avoid the fiscal cliff, the Fed won't be able to prevent another recession because it has exhausted just about all its monetary measures to try to boost the economy, Bernanke said.

The Fed is in the midst of a third round of stimulative bond buying, known as quantitative easing. But there is not much else the central bank can do other than buy bonds, a strategy that has kept short-term interest rates near zero since late 2008 and will probably continue until at least mid-2015.

Any deficit-reduction deal probably would involve higher taxes and reduced government spending that would be a drag on economic growth next year, Bernanke said. But that's better than the alternative.

"My advice on this is sort of 'do no harm,' and in that respect, what I'm most concerned about … is the full force of the fiscal cliff," Bernanke said. "The ability of the Fed to offset head winds is not infinite."

A deal to avoid the fiscal cliff and start reducing the soaring national debt will help ease some of the uncertainty that businesses have.

Bernanke said he could not quantify how much fiscal cliff concerns were harming growth, but said the effect of uncertainty was "probably significant."

The European debt crisis also is a source of concern. But Bernanke said that avoiding the fiscal cliff would reduce uncertainty and potentially provide a big boost to the U.S. recovery because there would be "a greater level of security about where the country is going."

jim.puzzanghera@latimes.com

Read More..

4 held in alleged terror plot

Men with Southland ties sought to join Al Qaeda and harm Americans, FBI says.

Four men with ties to Southern California have been charged with plotting to join Al Qaeda and the Taliban to commit "violent jihad" and target Americans, the FBI said Monday night.

One of the men, Sohiel Omar Kabir, 34, allegedly traveled in July to Afghanistan, where he arranged for terrorist training to be conducted with Al Qaeda and Taliban operatives, according to a complaint unsealed Monday in U.S. District Court in Riverside.

Kabir, who lived in Pomona, is a naturalized U.S. citizen born in Afghanistan, federal authorities said.

In 2010, Kabir allegedly introduced Ontario resident Ralph Deleon, 23, and Upland resident Miguel Alejandro Santana, 21, to "radical and violent Islamic doctrine," according to the complaint.

"Kabir influenced Santana and Deleon to convert to Islam," the complaint said.

Kabir and Santana allegedly posted terrorist audio and video files on their Facebook pages and communicated via Skype when Kabir was overseas, according to federal authorities.

The complaint said the men studied Internet essays and lectures by Anwar Awlaki, a radical Muslim cleric and U.S. citizen killed in Yemen in 2011 by missiles fired from a U.S. Predator drone aircraft. The death of Awlaki, a mid-level Al Qaeda operative, was considered a major coup because he had been effective in reaching disaffected Muslims in the U.S. and elsewhere with his online speeches and sermons.

Santana is accused of posting audio files of Awlaki on a social media site, the complaint alleges.

After arriving in Afghanistan, Kabir told the two men he had arranged for them to travel to that country for terrorist training, the complaint alleged.

Santana and Deleon are accused of telling a confidential source working for the FBI that they planned to go to Afghanistan to take part in "violent jihad," the complaint said. Santana is a permanent resident born in Mexico, authorities said, and Deleon is a permanent resident born in the Philippines.

The confidential source was paid more than $250,000 in October by the federal government and received unspecified "immigration benefits," according to a footnote in the criminal complaint. The source was previously convicted of trafficking in pseudoephedrine.

In September, Santana and Deleon recruited Arifeen David Gojali, 21, of Riverside to travel overseas with them and join Kabir for terrorist training, according to federal authorities. Gojali is a U.S. citizen.

Santana, Gojali and Deleon were apprehended Friday by authorities with the Joint Terrorism Task Force. They appeared before a magistrate Monday in federal court in Riverside.

Kabir was taken into custody in Afghanistan.

The investigation is ongoing. If convicted, the men each face up to 15 years in federal prison.

robert.lopez@latimes.com

Read More..