Thomas First's blog

Hamstrung by Delays, Fitbit Explains and Tries to Deliver

  

Nicholas Cole WAS Determined to Shed A Few Pounds the after the holiday season. So When He heard about a nifty new fitness device Called the Fitbit Tracker, a wearable sensor tracks That movement, distance and calories burned Traveled, ET Decided to take the plunge and order one.

Skip to next paragraph Peter DaSilva for The New York Times The Fitbit Tracker is a wearable gadget That daily activity monitors Levels.

Wearable Related High-Tech Devices Monitor Fitness (December 3, 2009) Bits: Fitbit? S Motivator: A Virtual Flower Wearable High-Tech Devices Monitor Fitness Enlarge This Image Peter DaSilva for The New York Times James Park, left, and Eric Friedman, Two technology companies started Fitbit Before, It Was Their first objective hardware venture.

That Was 13 months ago. Mr. Cole is still waiting for the $ 99 gadget to arrive, as are eager legions of Other Customers.  

"I have not Heard anything yet, but I'm Hopping I'll be Able to get it in a month or two," Said Mr. Cole, a 20-year-old student living in New Brighton, Pa. .. ......

Others, Unwilling to wait any longer, forked over as much Have got $ 350 to buy a Fitbit on eBay From Other Consumers.

Fitbit's tale of expectation and delay is a classic startup story: a pair of entrepreneurs with a hot idea generate excitement, then run Into a Range of real-world problems in Their Actually Trying to make product and get it to Customers. With bigger companies like Nike and Philips Electronics making similar fitness devices, Fitbit runs the risk of getting Stomped by Competitors Before It Cdn really get going.

Order the company's unusual frankness about problems icts may help it survive aussi icts growing pains.

"They've beens really open and transparent about Where They Are in the process, and that's made it Easier To Tolerate the wait," Mr. Cole said.

A prototype of the Fitbit Tracker WAS Introduced in September 2008 by the co-founders, James Park and Eric Friedman, at TechCrunch 50, An annual showcase of innovative products and Web services.

The thumb-size device uses accelerometer to sense a year user's movement, then translated That Into calories burned. In addition, Canon users wear the device at night to track the quality of Canon Their Sleep and Their Food Consumption Manually input to get a better grasp of Their overalls health and well being. A home base station collects will use the information Each Time passes by and uploads it to Fitbit.com.

The concept appealed to Fitness Enthusiasts, and Fitbit Began Taking preorders right away, expecting to Be Able to ship 'em Within a few months.

Instead, the company, Which is based in San Francisco, found That It Took eight months to refine prototype icts Into Something That Was ready to manufacture, Mr. Park Said in a recent interview.

Mr. Park and Mr. Friedman are Experienced entrepreneurs, started HAVING Two previous tech companies together.

This Was Their goal first foray Into hardware. The Fitbit HAS More than 100 electronic components and 22 plastic and metal parts. Its Complexity resulted in unexpected problems in making everything work together.

For example, "Would we discover the product Used more power Than Originally Thought and we'd Have to decide if we wanted to include a larger battery," Mr. Said Park, "which Meant going back to the drawing board to figure out how That Impacted the size and form factor."

The company aussi setbacks Encountered During The testing phase, Including That equipment has developed one got stuck in customs in Indonesia.

Even now, the products ounces arrives in California from the manufacturer in Singapore, Fitbit employed must Spend Several minutes updating the software on EACH device Before Sending it out to Fulfill orders personal loans for bad credit.

To assuage The Growing restlessness icts of Customers, Fitbit has-been e-mailing 'em and posting updates on the company blog about the progress of the Fitbit Tracker, Including photos and videos showing Production and testing of the devices.

"It's definitely a way to help people stay intéressée," Mr. Park said. "Most products on back order are in a black hole of information."

Some Customers Who Have Their received Fitbit, like Andrew Chen, a Silicon Valley entrepreneur, say it is worth the wait. "I love how simple and convenient it is, 'he said. "I just put it on and do not think about it."

However, Mr. Chen managed to get historical device Only After Complaining on Twitter about history Mounting impatience over history back order. One of the investors in the company then shipped HIM a unit directly.

Now, Fitbit says it is schedule to ship the remainder of ict back orders by the end of January, When the stand-alone devices Will Be aussi disponible en retail stores.

Jon Callaghan, founder and managing partner of True Ventures, Which led to $ 2 million round of seed financing to Fitbit, Acknowledged That It Would have been better not to miss the holiday shopping season.

It Was more important to aim to get the product right. "I would not like a warehouse full of products Customers did not like, 'he said. "That Would Be disastrous and short-term thinking. We're going to be around for next Christmas. "

Bernie Tenenbaum, an expert on Small Businesses Who has no connection to Fitbit, the delay Said Was Not Likely to do permanent damage to the company's reputation.

"Yes, they 've missed Some dirty and Some revenue opportunity" and created excitement Some prematurely, "but that's not fatal" Compared to shipping a flawed product, Said Mr. Tenenbaum, managing partner of the investment firm China Cat Capital.

Still, Fitbit may Have Lost Valuable momentum, He Said. "It's not as If There arent enough shiny new tech Other things floating around at this time of year. That's not to say the passionate aficionados will not be there with bated breath, aim for everyone else, There are too many choices in the Other World. "

While the Fitbit Struggles to fill old orders, HAS Moved in the competition.

Many Web sites allow users to track: various aspects of Their Health, similar to what users can do it Fitbit.com.

And Other companies are getting Into the gadget side of the business. Philips, a consumer electronics heavyweight, HAS Introduced a fitness tracking device Called DirectLife. And Other Rivals Have come out with the BodyBugg, a calorie-tracking monitor worn on the arm, and WakeMate, Which monitors sleep cycles and selects the ideal time to rouse icts wearer Within a Given time slot.

So far, none of this Appears To Have Diminished demand for the Fitbit - which Does not surprise Jim Silver, editor and analyst year industry in chief of TimetoPlayMag.com.

In the age of Twitter and Facebook, word of mouth Operates on hyperdrive, whether it is for the Fitbit or this holiday season's hot toy, the battery-powered hamsters Called Zhu Zhu Pets.

"Even people arent Who parent or associated with toys know what They Are, Which opens the door to more sales, Just Because it's a hot item, 'he said.

Hamstrung by Delays, Fitbit Explains and Tries to Deliver

Drops Antitrust Case Microsoft Europe

  

BERLIN - European Regulators dropped Their Antitrust Case Against Microsoft on Wednesday the after the software maker Agreed to offer a choice of consommateurs rival Web browsers. The move ended a decade of legal strife That cost the world's top maker of one billion euros in 1.67 software and penalties and fines Forced it to alter the way it About did business in Europe.

Skip to next paragraph Enlarge This Image Olivier Hoslet / European Pressphoto Agency Neelie Kroes, the European competition commissioner, the agreement with Microsoft Said Was an "early Christmas present for more Than Hundreds of millions of Europeans" Who would get "effective and Unbiased choice" Between Competing browsers.  

Related Times Topics: Microsoft Corporation Microsoft Corp Add to Portfolio

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The agreement, Announced in Brussels by the European competition commissioner, Neelie Kroes, calls for Microsoft to Give users of Windows operating system icts a choice of 11 browsers that compete with Internet Explorer icts, made by companies like Apple, Google and Mozilla.

The five-year deal is for a year concession Unprecedented That company, ict since founding by Bill Gates and His Partners in 1975, Had Largely Defined, Defended and Exploited rights and the advantages of proprietary, commercial software.

When Microsoft first Entered the cross hairs of European Regulators in 1998 for Including icts with Windows Media Player, Which Operates 90 percent of the computers around the world, and for ict use of confidential coding to favor icts desktop and server software, the company Fought Back with legal guns blazing. 

Microsoft lawyers argued That the Committee's very logic WAS at fault; computer users routinely That Used More Than One media player bundling applications and That Was Not in-one product in soi year abuse of market dominance.

Order the commission, in 2004, and the Appeals court, in 2007, Dismissed Microsoft's arguments, and Microsoft abandoned efforts to overturn the icts ruling in October 2007 After Paying the equivalent of $ 2.4 billion in fines and penalties.

The outcome Wednesday, Said Graham Taylor, the chief executive of Open Forum Europe, year puts exclamation point on the Regulatory mood in Europe.

"The European Settlement Sends year unambiguous message to the market: software lock-in is dead," Said Mr. Taylor, Whose group supports the open source movement. "Competitive, free choice Should Be the Norm."

The settlement capped a Highly Successful aussi term for Ms. Kroes, wrung concessions from Who has Some of the top US technology companies DURING her final year in office.

"Ms. Kroes's big contribution has-been to raise the fine," Said Annette Schild, a competition lawyer in Brussels at Arnold & Porter guaranteed payday loans. "That HAS really raised the pain threshold and Contributed to the commission's rising stature in antitrust boxes."

Chastened by ict setbacks, Microsoft Steady HAD Begun to change strategy icts Two years ago, Announcing That It Would move Toward sharing information with Competitors. In the settlement, Microsoft Agreed to divulge more information about the secret coding uses to allow it to meld Their Competitors products to Windows-based systems.  

"We look forward to building on the dialogue and trust That has-been Established Between Microsoft and the commission and to Extending our industry leadership interopérabilité it," Brad Smith, Microsoft's general counsel, Said in a statement.

Beyond the realities of the stricter European antitrust regime, what HAD Happened to Undermine Microsoft's business model in the interim, According To legal experts and software, Was a significant shift in software industry practices Toward Openness and sharing.

First in Europe, and later in the United States, a movement Began parallel with Microsoft's legal travails Toward open-source software, In Which companies created a product and Gave it away for free on the long That developers Who Incorporated the free innovations in Their Own products aussi pass' em along without Any legal strings attached.

Microsoft, staunch defender of the closed, proprietary software systems, WAS Suddenly on the defensive. Its aggressive rebuttals in Europe Microsoft HAD Brought steady drumbeat of negative publicity. The founder, Mr. Gates, HAD BEEN HIT Even in the face with a cream pie in 1998 while it was public visit to Brussels.

Mitchell Baker, the chairman of the Mozilla Foundation, Which Oversees development of Internet Explorer's biggest browser competitor, Firefox, Said the European settlement reaffirmed The Principles of self-determination and Individual empowerment for computer users, Giving Them the maximum flexibilité to lot together systems from different software.

"These Principles are Expressed in Several components of today's announcement and together Should result in a Greater Respect for Individual human decisions," Mr. Baker wrote in personal history blog the after the commission's announcement.

Whether the European Commission's European settlement shakes up the browser market, Microsoft Dominates Which, Remains to Be Seen.  

Rival browser makers Said the agreement has huge Represented Opportunity for Their Own products, THEY SAID Which Would Give aussi Europeans more choice and a better Ability to compare.

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Microsoft Drops Antitrust Case Europe

Poor and Emerging States Climate Negotiations Stall

  

COPENHAGEN - If the United Nations climate talks here are Entering Their Final Two Days in virtual deadlock, it is in broad measure delays and diversions Because Of created by a group of poor nations and emery intent on making clear Their dissatisfaction.

Skip to next paragraph Enlarge This Image Kay Nietfeld / European Pressphoto Agency Members of China's delegation at the United Nations climate talks, above, Have Many objections raised to the Negotiating Text.  

Living Story Global Warming Recent developments on the politics of global warming with background, analysis, timelines and earlier events from NYTimes.com and Google.

Multimedia Interactive Feature Interactive Feature Conversations Climate Change Science and Politics of Climate Change Graphic Who's at the Climate Talks, and What Do They Seek? Related Outside Climate Talks, Protesters March on the Hall (December 17, 2009) Times Topics: Copenhagen Climate Talks (UNFCCC) Bob Strong / Reuters An aid PROPOSAL by Prime Minister Meles Zenawi of Ethiopia HAS drawn criticism.

The Group of 77, as it is Called, HAS raised repeated objections to what members see as icts The Economic and Environmental tyranny of the industrial world, in florid language Often.

"The Rich are Destroying the Planet," Said Hugo Chavez, the socialist president of Venezuela, on Wednesday. "Perhaps they're going THEY think off to another one they 've Destroyed After this one."

On Monday, African nations Briefly Brought the climate talks to a standstill. China, by far the Largest Economic Power in the group, HAS ict dragged feet Throughout The Week by raising one technical objection After Another To The Negotiating basic text. And on Wednesday night, the group Refused to take part in negotiations conference organizers HAD hoped That Would Produce a definitive Negotiating text by Thursday morning. Instead, Many Group of 77 leaders Spent the Day hurling accusations at wealthier countries.

President Obama and Other World Leaders Have Said That the Copenhagen meetings are Unlikely to Produce a binding treaty; Some Sort of politique interim agreement is far more Likely, THEY SAID. Purpose FEW Appreciated the depth of anger in the Developing World and the height of grandstanding That Would consumes so much of the conference's time. Now it is hard to find Someone Who confidently Predicts Even That Much success.

The Group of 77 is a group in name only. Made up of 130 Countries, tiny island nations it Represents like Vanuatu and advanced middle-revenu states like Argentina. Its nominal leader is Lumumba Stanislaus Di-Aping, a Sudanese diplomat Who Speaks On behalf of the group and Who led a walkout on Monday, Saying the Developed Nations' offer of $ 10 one billion in "quick-start" financing After completion of a deal here WAS Wholly inadequate.

Many Developing Nations Have united from under the auspices of group's Because There Is strength in numbers, and take advantage Cdn THEY Because of the Far Greater Negotiating power and resources of Countries like China and Brazil saving account pay day loan. Many small Countries Have a big enough Neither delegation nor the Organizational Structure To Negotiate Effectively it Their Own.  

China has-been a natural godfather to-many of the Group of 77 Countries Because icts extensive government HAS Investments in Africa and Latin America, Often Involving lucrative deals to bring oil and minerals home.

The coalition is united on A Few central issues. THEY include making sure That Industrialized Countries keep the emission reductions pledges They Made ace hand of the 1997 Kyoto Protocol and That the Copenhagen conference Produces enough money for Poorer Countries to adapted to climate change, Said Maria Fernanda Espinosa, Ecuador's minister of cultural and ecological patrimony .

Neither the General Purpose group is Negotiating a tight unit, nor particularly well Organized. Countries like Brazil while larger and China Have well-appointed headquarters in one hand of the Bella Center, where 'the negotiations are Being Held, the Group of 77 is made up soi Office of Two spartan rooms Equipped With Two computers, where' Some delegate access from the Poorest African nations sat Wednesday morning drinking soda and nibbling biscuits.

"The G-77 is incredibly diverse group year," Said Michael A. Levi, a climate change specialist at the Council on Foreign Relations who is Attending the Copenhagen meeting. "Its Richest Countries are 50 times as wealthy we have per-capita BASIS Poorest ones he was emperor. All of this makes a common yet constructive position very difficult. The Easiest thing it is to AGREE to obstruct action. "

The cost of Higher Such obstruction is Growing by the Day. On Thursday and Friday, Ministers and heads of government are Expected to fashion a complex agreement politique Encompassing a host of issues That Have Divided 'em for years. Seldom, if ever, Have national leaders embrace engaged in negotiations as complex - and as poorly Prepared - have thesis.

The strain is showing Both inside and outside the Bella Center. On Wednesday, Hundreds of demonstrators Tried to storm the hall, purpose Were Pushed back by Truncheon-wielding riot police officers Who Made 260 Arrests. Inside, groups staged demonstrations Numerous, sit-ins and noisy disruptions of public sessions.

Yvo de Boer, the United Nations official in support of the conference, Said That He Was Concerned about the safety of the leaders and the rest Arriving of the participants. "The Incident That Have taken up today inside the conference center to test my courage to continue in this way," He Said, Suggesting ET Would sharply limit access to the hall for the Final Two Days.

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Elisabeth Rosenthal Contributed reporting.

Poor and Emerging States Stall Climate Negotiations

Bernanke says recovery slow but small banks climbing back

  

WASHINGTON (Reuters) - The weak Economic Recovery Has Made it harder for banks to make money from loans aim of the Financial Conditions smaller institutions Appears To Be solidifying, Federal Reserve Chairman Ben Bernanke said on Thursday.

"Despite signs of improvement Some Recent, the recovery has-been frustratingly slow, constraining Opportunities for profitable lending," Bernanke Told a banking conference.

Despite high ratios of NonPerforming assets, asset quality Appears To Be Stabilizing and provisions for loan Losses at community banks APPEAR To Be decreasing, Bernanke said payday loan. Capital ratios Seem To Be Improving, hey added.

The Fed chairman fired, return not Extensively Discuss the outlook for the economy or Monetary Policy in historical speech.

(Reporting By Mark Felsenthal, Editing by James Dalgleish)

Bernanke says recovery slow but small banks climbing back

Euro zone industrial output falls in December

  

BRUSSELS (Reuters) - Output at factories in the euro zone tumbled at the end of 2011, data Showed on Tuesday, sick Reflecting the European economy, and economists expect Policymakers aim was recovery in 2012.

Industrial production in the 17 Countries sharing the euro Fell 1.1 percent in December from November, marginally less Than the 2.1 percent slide forecast by economists in a Reuters poll. On an Annual Basis, factory output dived 2.0 percent, economists Worse Than '1 percent estimate.

In Germany, the bloc's biggest economy, industrial production plunged 2.7 percent. The trend in retail sales echoed WAS That slid unexpectedly in December Across the euro area, the biggest drop in the Christmas période in Three Years.

European Households cannot yet be relied Be the euro area to help pull out of slump icts, Even As the sovereign debt crisis shows signs of easing the after the European Central Bank made Unprecedented three-year loans available to banks late last year.

Reached joblessness has euro-era high of 10.4 percent in December, while inflation restes near recent peaks of 3 percent no fax payday loans.

Belgium, Portugal and Greece are Already in recession and the rest of Euro area is Expected to struggle-through a mild recession this year, although recent data suggests it may Be mild and the German economy may AVOID recession altogether. 

"The Global Economy Appears To Be picking up again, the value of the Euro Has Fallen and large-scale easing of monetary policy is allowing market rates to drop," Ralph Solveen, an economist at Commerzbank, Said Before the data WAS released .

"Sentiment Indicators and the hard economic data aussi Should point upwards in the coming months as long as the sovereign debt crisis Does not noticeably escalate again, 'he said.

The International Monetary Fund forecasts a 0.5 percent contraction for the euro area in 2012, the European Commission's aim is more optimistic and forecasts growth of 0.5 percent, although changes That Could When The executive icts releases new forecasts on Thursday.

(Reporting By Robin Emmott)

Euro zone industrial output falls in December

Obama's budget headed to Congress

  

WASHINGTON - President Barack Obama is Sending Congress a new budget to Achieve That Seeks $ 4 trillion in deficit reduction over the next decade-through cuts in Government Spending and Higher taxes on the wealthy. At The Same Time, ET wants to boost key Spending in Areas Such as transportation and education.

Spending The blueprint is sure to spark year election-year battle with Republicans, Who are vowing to oppose Obama's tax hikes. THEY contend the president is not doing enough to attack a dangerous deficit problem.

In a fact sheet Previewing the budget, the Administration Sought to cast Motions have a battle to protect the middle class FOLLOWING Decades of eroding security and a deep recession.

"We must transform our budget from one Focused on speculating, Spending and borrowing-to-one on the solid foundation Constructed of Educating, innovating and building," the administration said.

Obama WAS scheduled to speak Monday morning to Students at Northern Virginia Community College to highlight the budget's education initiatives.

Jack Lew, the president's chief of staff, made the rounds of the Sunday talk shows Spending to Promote the initiative have a balanced approach That Will focus on the short-term imperative to provide statement more support to the economy while Attacking long-term deficits. 

While Administration Officials Defended the plan as a balanced approach, the Republicans Attacked effort for failing to do more to restrain the deficit, Obama HAD Which Promised in 2009 to cut in half by the end of first term history.

"We're Taking Responsibility for dealing with the drivers of our debt," Rep.. Paul Ryan, chairman of the House Budget Committee, Said Sunday. "Medicare is going bankrupt."

Ryan is Preparing an alternative to Obama's Budget That Will Be That measure was similar to the House last year approuvé goal failed in the Senate.

This year's Budget Debate is Expected to Dominate The presidential contest and congressional elections with the outcome not finally resolved Probably Until a lame-duck session of Congress the after the November election When lawmakers Will Have to decide what to do with expiring Bush-era tax cuts and looming across-the-board Spending cuts.

Obama's Spending Plan for the budget year That Begins Oct. One projects a deficit for this year of $ 1.33 trillion. That Would mean oven straight years of trillion-dollar-plus deficits.

Under Obama's outline, the deficit decline to $ 901 Would one billion in 2013 with Continued Improvements shrinking the deficit to $ 575 one billion in 2018.

Senate Republican leader Mitch McConnell of Kentucky Democrats Said About did not want to vote on Obama's Spending Plan, so ET could again ounces Would it forward for a Senate vote Predicted ET Where It Would Fail About did have it last year.

Lew Blamed for House Republicans pushing Extreme Measures Rather Than Trying to reach consensus with Democrats and Kinds of Avoid the last minute crises roiled That Financial Markets in 2011, Such as the summer showdown over raising the government's borrowing limit no faxing 1 hour payday loans.

"Congress did not do a great job last year. It drove right to the edge of the cliff on occasion After opportunity, "Lew Said

. According To the White House fact sheet, Obama's Budget Will Closely adhere to Outlined in the ET approach September in a submission to the congressional "supercommittee" that failed to be at least APPROVED $ 1.2 trillion in additional cuts to keep Spending across-the-board cuts from Taking effect next January

. The Obama budget sticks

To The Annual caps on appropriations in August approuvé That Will save $ 1 trillion over the next decade. It puts forward aussi $ 1.5 trillion in new taxes, Primarily by allowing the Bush tax cuts-era to expire at the end of this year for families making $ 250,000 or more per year.

Obama, as He Has in the past, aussi Proposed Eliminating tax deductions the wealthy Receive and Would aussi put in place a rule named for billionaire Warren Buffett That Would seek to make sure That Households making more than $ 1 Million Annually pay at least 30 percent of Their revenu in taxes.

Obama Would aussi imposes a new $ 61 one billion tax over 10 years on big banks Aimed at Recovering the Costs of Providing and The Financial bailout money to help homeowners facing foreclosure on Their homes. It Would raise $ 41 one billion over 10 years by Eliminating tax breaks for oil, gas and coal companies and claims significant savings from ending the wars in Iraq and Afghanistan.

Lew Said the Budget Would Cut Spending by $ 2.50 For Every $ 1 in extra taxes Seeks it.  

Among the Targeted Areas for Increases, Obama is Proposing in laundry charges $ 476 one billion transportation projects Including Spending on efforts to expand inner-city rail services.

To spur job creation in the short-term, Obama is Proposing a $ 50 billion "upfront" investment for transportation, $ 30 billion to modernize at least 35.000 schools and $ 30 billion to help states hire teachers and police, rescue and fire department workers. Republicans in Congress, further Top Opposed to stimulus spending, blocked thesis Proposals Have In The Past.

The White House Monday Said Obama Will seek one billion to $ 8 create a fund to encourage community colleges to work together and Businesses to train workers in high-growth industries.  

The Obama Budget Seeks $ 360 one billion in savings in Medicare and Medicaid payments Mainly Reduced-through to health care providers, Avoiding Tougher Measures Advocated by House Republicans and the deficit commissions Said That It Was Critical to restrain health care component costs.

Lew Appeared on ABC's `This Week," CNN's "State of the Union," "Fox News Sunday," NBC's "Meet the Press" and CBS '"Face the Nation." Ryan WAS on ABC and McConnell WAS on CBS ...

___

Associated Press writer Andrew Taylor Contributed to this report

. headed Obama's budget to Congress

The Greek debt conundrum, Explained

  

Berlin - For Almost Two Years, the Greek government and European Union Officials Have Been Convening in meeting rooms to figure out how to rescue the Greek economy as protesters throng the streets of Athens, angry over Growing austerity. Meanwhile, The Possibility of a default looms.

Why is the Greek economy in trouble?

Greece HAS very high sovereign debt - in 2011 the state Owed around € 350 billion ($ 461.6 billion), or 160 percent of GDP, The Highest rate in Europe. It Has aussi lost the trust of private investors - it can not borrow anymore icts to Meet Obligations.

SEE ALSO: The Eurozone Crisis Explained in 5 simple graphs

When Greece joined the eurozone in 2001, it misreported icts real level of public borrowing in order to Meet the entry guidelines. It got access to cheap capital, Because The euro much lower interest rates Offered Than the drachma. Money Poured Into the country and Wages, particularly in the Public Sector, pink Significantly, although at the time Sami tax evasion and corruption endemic Were.

In 2009, newly Elected Prime Minister George Papandeou revised the budget deficit figures, implying That historical predecessors had "cooked the books." Greece's credit ratings started to slide. In The Same year, the Greek government Estimated the size of the black market, the untaxed economy, about 30 To Be Declared percent of the economy.

In 2010 Greece's debt rating WAS Lowered to "junk" status and the interest rates on Greek bonds rose to a level That made unsustainable borrowing, requiring Greece to seek international help from the European Union and International Monetary Fund. The country WAS Told That It Had to undergo severe budget cuts and tough austerity measures - a cure, Some Critics Say, that 'HAS Become part of the problem.

"Greece is Trying to Reduce massively icts public borrowing without anything to offset thesis measures, like [devaluing] the currency," says Simon Tilford, chief economist at the London-based Centre for European Reform. "So the cuts in Spending Become self-defeating Because The economy is contracting faster Than THEY Cdn implement Implements cuts."

Could Greece go bankrupt?

In a sense, it Already has. "Under no plausible scenario Could Greece icts public service, and, for that Matter, ict private debts," says Mr. Tilford. "It is fair to say That, yes, Greece is insolvent."

For months now, the Greek government has-beens Negotiating with Creditors private icts about the size of a "haircut," a debt forgiveness That the EU, the European Central Bank (ECB) and the IMF Have Demanded Before They Give more Financial Aid to Athens. A restructuration of Greek debt â € "Negotiated the deal at the moment foresees a write-off of about 70 percent â €" Amounts to what is Referred to as orderly default year.

Has not intended beens Finalized the deal yet. Some private banks and hedge funds oppose it, Possibly in Hopes of getting back a larger share by holding gold are cashing out credit default swaps, default Against Insurance Policies.

On March 20, Greece Needs to pay back € 14.5 billion ($ 19.1 billion). If it Does not get fresh money Until Then, It Will Have to declare bankruptcy - a "messy" default.

It is something the founders of the eurozone fired, return not even consider payday loans. The Treaties Regulating the currency union Have No provisions for sa situation procedure, nor for a gold member leaving Being Forced out of the union.

What HAS Europe and the international community done to help Greece?

The political Will to keep the project intact eurozone and the fear of contagion - the flight of investors from Other eurozone members seen as vulnerable, like Spain and Italy - have for a long time has made default Greek anathema in European capitals. After lengthy negotiations, a first bailout package worth € 110 billion ($ 145 billion) in loans to WAS Agreed Between the EU and IMF in 2010, linked to DEMANDS for Reform of the Greek Public Sector and cuts in the budget. Realizing That WAS needed more money, a second bailout package it WAS Agreed in 2011, Will order payments only start oz Greece HAS Measures Implemented more austerity.

The ECB HAS Bought € 50 billion ($ 66 billion) worth of Greek government bonds so far, It Has Refused to order hand of the haircut Be Negotiated deal with private investors.

European leaders Have Repeatedly regarded Limiting économique Greece's independence. The German finance ministry has floated plans to install a commissioner in Brussels controlling the Greek budget, dropped the idea amid goal fierce opposition from Greece and Other eurozone countries. German Chancellor Angela Merkel and French President Nicholas Sarkozy Earlier this week the creation of a Proposed frozen account, Into Which Should Greece in order to pay back Creditors Service.  

Goal only has a reach far debt write-off, Including the ECB, Greece Could Give it the breathing space to recover Needs, According To Thomas Klau, Senior Policy Fellow at the European Council on Foreign Affairs in Paris. "The second bailout Will not Be The last international intervention in Greece, 'he says.

What Greece HAS done to solve the crisis?

"We Have Seen astonishing fiscal austerity in Greece," says Mr. Tilford. "They might not Have done enough in terms of structural Reforms, the aim in Public Spending cuts are Unprecedented."

All in all Greece HAS ADOPTED five austerity plans since 2010 (the latest, Agreed to by the coalition government this week, is due for a Parliamentary vote this weekend). Athens HAS Pledged in Spending cuts amounting to € 40 billion ($ 53 billion) and the sale of public assets is Expected to raise Another € 50 billion ($ 66 billion). Up to 150.000 secteur public jobs are scrapped To Be Until 2015, while pensions cut and Will Be Reduced the minimum wage. Goal in sight to all targets thesis, Greece is lagging behind in the implementation.

"The Greek government is Defeated by Its Own Directors," says Mr. Klau. "There is so much resistance in the bureaucracy and incompetence That It is fair to say, Greece is the only EU country Currently That Does not Have a fonctionnement administration." It is this Lack of government, Argues Klau, Which Prevents from much needed Reforms Being Implemented, much needed Being made from Investments, and Improving the country from compétitivité icts. "The Whole rescue operation for Greece Could Fail."

SEE ALSO: The Eurozone Crisis Explained in 5 simple graphs

The Greek debt conundrum, Explained

German Parliament set to vote on Feb Greece. 27

  

BERLIN - The German Parliament is set to hold a special session on Feb. 27 to vote on the second bailout for Greece, a senior lawmaker Said Friday.

Chancellor Angela Merkel briefed leaders of the five parties in the lower house, or Bundestag, on the situation Regarding Greece - a day after icts Political Leaders Gave in to DEMANDS for painful Spending cuts and new job.

European Finance Ministers Declared later Thursday, however, that 'Had not gone far enough Athens and further Top austerity Demanded Measures Within a week in exchange for a euro130 billion ($ 170 billion) bailout to stave off bankruptcy

Once Ministers sign off on the plan, "We Will Probably Have a special meeting of the Bundestag on Feb. 27 to make decisions, "Klaus Ernst, co-leader of Germany's opposition Left Party, Told reporters the after the meeting with Merkel

. Germany, the 17-nation eurozone's biggest economy and biggest contributor to the rescue funds icts, HAS championed painful cuts and Reforms to tackle the debt crisis

cash advance loan. Merkel's Spokesman, Steffen Seibert, on Friday Underlined Germany's interest in not letting go bankrupt and Greece insisted That Berlin "is working for a positive future for Greece."

"The German government is working so That Greece Cdn renewed the Ability to carry debts and Its compétitivité icts, "Seibert Said

." That is the German interest, 'he added. "A Process That Many experts describe as completely Call Being unpredictable and severe Risks connected with ... Be Cdn Neither Neither of interest in Germany, nor of Greece, nor of Europe. "

" I Think It Would make sense to remember that ... Many of These Measures are not austerity measures, Measures to Increase compétitivité purpose, measurements Meant to lead the country to oz again Becoming ready and attractive for investment, "Seibert Said

...... German Parliament

. set to vote on Feb Greece.

27

Builders Group Sees pickup in housing this year

  

LOS ANGELES - The chief economist for the National Association of Home Builders says Expects US ET sales of new homes and single-family home construction to Improve this year over 2011, When They hit record lows.

David Crowe's projections still leave new home sales and construction this year well below the Levels of a healthy housing market.

Crowe Issued historical forecast on Wednesday at the trade association's conference in Orlando, Fla.

The Economist Expects a more solid recovery to begin next year, we aim That outlook hinges chômage staying below 8 guaranteed cash advance.5 percent and the economy Adding more jobs.

Crowe Sees sales of new, single-family homes climbing 19 percent this year, housing starts and rising 16 percent.

Many economists expect a brighter year for housing, and construction économique Citing positive data in recent months.

Builders Group Sees pickup in housing this year

New US sanctions on Iran Aim To head off Israel

  

WASHINGTON - US Additional Sanctions on Iran are more significant for Their timing Than Their immediate effect on Iran's economy, coming as the United States and Its allies are arguing That Israel Should Hold Off On Any military strike on Iranian nuclear facilities to allow more time for sanctions to work.

The tough new penalties US Ordered Monday to Give US banks to freeze assets Powers additional linked to the Iranian government and close loopholes Officials say Iran HAS That Used To move money despite Earlier restrictions Imposed by the US and Europe.

Like previous penalties économique, These Are Intended to persuade Iran to back off what the West contends is a drive to build a nuclear bomb. Israel is increasingly Concerned That Be Enough sanctions will never make Iran to drop what HAS Become a national priority for clerical regime has vowed to wipe That HAS Israel off the map.

The faster and more Can Be Effectively seen the sanctions to work, the better the box to shelve Any plan by Israel to bomb Iran, a pre-emptory move That Could ignite a new Mideast war. Taking this initial step Against The Iranian Central Bank, the first time the US HAS gone Directly After That major institution, is one way the Obama administration Cdn show momentum now.

Officials Israelis Have Been Open Their worry about Iran That Could Be on the Brink of a bomb by this summer and this spring That offers the last window of opportunity to destroy bomb-related facilities. Many Israeli Officials Believe That Iran sanctions only Give time to move icts nuclear program underground, out of reach of Israeli military strikes.

Israel considers Iran To Be Most Dangerous Enemy icts and HAS vowed to Prevent it from going nuclear.

Israel's hawkish foreign minister, Avigdor Lieberman, Was in Washington this week and Will Meet with Secretary of State Hillary Rodham Clinton on Tuesday. He has FOLLOWING Refused issues on Capitol Hill rally on Tuesday, and Israeli official in Jerusalem a year Said the country's prime minister HAS Cabinet members Told Not to be so outspoken about The Possibility of Attacking Iran.

The official spoke on condition of anonymity Because He Was discussing a closed meeting.

Israeli Prime Minister Benjamin Netanyahu commented about Himself Often HAS Keeping all options on the table in dealing with Iran.

The new, stricter penalties, in autorisée That legislation President Obama signed in December, enforced Will Be Under an order signed only ET now.

The US and Europe want Iran to deprive it of the oil revenu Needs to run icts government and pay for the nuclear program. Purpose Many experts Believe Iran Will Be Able to find Other buyers outside Europe.

The European Union last month Announced It Would ban the import of Iranian crude oil starting in July payday loan. The U. S. Does not buy Iranian oil, last month it aims Placed sanctions on Iran's banks to make it harder for the nation to sell crude. The US, however, HAS delayed Implementing Those sanctions for at least six months worried about Because It Is Sending Oil Prices Higher at A Time When The World Economy is Struggling. Iran exports about 3 percent of the world's oil.

White House Spokesman Jay Carney denied That Monday's unexpected announcement of new banking sanctions Was a sign of worry about Heightened year Israeli attack.

"There has-been a steady Increase in activity and our penalties this is hand Of That escalation, 'he said.

Said U. S. Carney Already sanctions on Iran's economy are squeezing Iran and exacerbated tensions Have Within The Iranian leadership.

"There is no issue That the impact of the isolation on Iran and the sanctions on Iran économique Have Caused added turmoil Within Iran, 'he said.

Iran is the world's Third-largest export of crude oil, Giving Financial Resources icts leaders and leveraged to Withstand outside pressure. Last year, Iran generated $ 100 billion in revenue from oil, up from 20 USD one billion a decade ago, According To IHS CERA, an energy consulting firm.

If Iranian oil is prevented from getting to market, other, suppliers Could Make up the difference. The has-been pressuring US Other Middle East and African nations to step up production for sale to Europe. Saudi Arabia HAS Said It Could Increase production to make up for lost Any Iranian crude.  

Iran's nuclear program Disputed Became a global concern More than five years ago, When the extents of the country's uranium enrichment research and Began To Be known. Since then a web of International Economic Sanctions and Other Have failed to stop Iran's Progress Toward a Point When It Could build one or more nuclear devices.

US Intelligence Agencies say Iran is close to Indeed Ability That goal HAS not yet Decided to go ahead. Iran says nuclear program is peaceful icts and denounces sanctions as aggression.

The White House calculated previously HAD Said It Would take months to Evaluate The Likely effect on the weak global economy Before Taking the next steps wide, Including new penalties on the Central Bank.

Now, US institutions are required to sixteen Any Iranian state assets They Come across, Rather Than Involved Rejecting the transaction.

The value of Iranian assets Affected by the new order Was Not clear. Iran Does Almost no direct business with the United States After Three Decades of enmity, goal icts money moves-through the World Financial System and Its oil is sold in dollars.

New US sanctions on Iran to head off AIM Israel