Wednesday, March 13, 2013

Two Charts That Make The Case For More Infrastructure Spending

The Bureau of Labor Statistics reported today that the U.S. economy added 157,000 jobs last month, which is not enough to quickly bring down the unemployment rate. At the same time, America faces a huge infrastructure gap that is going to cost it 3.5 million jobs over the next decade.

The obvious solution should be more infrastructure spending, especially considering that the U.S. can borrow at historically low rates. This would help address the twin problems of a deteriorating infrastructure and persistently high unemployment. As this chart from BLS shows, U.S. construction jobs are far below where they were a decade ago:

As Calculated Risk noted, public construction spending “is now 17% below the peak in March 2009 and at the lowest level since 2006.” This chart shows the year over year change in construction spending since 1994 (the yellow-ish line is public spending):

Study after study has shown that infrastructure spending has a huge return in terms of jobs and economic growth. According to Smart Growth America “every $1 billion in additional funds committed to highway projects between 2009 and 2010 produced 2.4 million job-hours.” As Kristina Costa and Adam Hersh noted, “the return on investment on transit projects was even higher, with 4.2 million job-hours produced by every $1 billion in investment.” Meanwhile, the San Francisco Federal Reserve found that “each dollar invested into infrastructure boosts state economies by at least two dollars.”


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Fox News Host Blows Up At NRA Head: ‘That’s Ridiculous And You Know It, Sir!’

Fox News host Chris Wallace tore into National Rifle Association’s contention that President Obama and other elites are hypocritical for employing security guards to protect their children, while downplaying the importance of armed protection in preventing gun violence.

During a heated exchange with NRA Executive Vice President Wayne LaPierre on Sunday, Wallace played a clip of a now infamous NRA ad criticizing Obama for relying on Secret Service to guard his children and asked if the organization believed that every child in America faces a threat similar to that of the Obama kids. LaPierre said that they do, leading Wallace to forcefully push back against the gun chief, saying, “that’s ridiculous and you know it, Sir!” Watch it:

Wallace went on to note that armed guards in school will not protect children “in the shopping mall, in the movie theater, on the street” and shamed the gun lobby for seeking to use class as a wedge in the gun debate. He noted that LaPierre himself relies on armed security guards and asked, “Does that make you an elite, and out-of-touch elite, because you have security?” “This idea of an elite class is just nonsense.”

Throughout his appearance, LaPierre maintained that universal background checks or limits on assault weapons would infringe on the rights of law abiding Americans and could never deter hardened criminals or gang members from obtaining fire arms. He insisted that only armed guards — the kind that Obama uses to protect his children — and increased prosecution of criminals could reduce gun violence.


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The Super Bowl Ad That Coke And Pepsi Desperately Don’t Want You To See

This Sunday’s Super Bowl will be punctuated by dozens of ads featuring everything from adorable puppies to kids in Star Wars outfits. But one commercial you won’t see is a provocative ad by the carbonated beverage company SodaStream — an Israeli company that is no stranger to controversy — that takes on soda giants Coca Cola and Pepsi.

That’s because the ad has been pulled after pressure from the mammoth corporations led Super Bowl host CBS to take it down from its programming. Reportedly, Coke and Pepsi were upset with the commercials’ implied criticism of the soda industry’s use of plastic bottles and the subsequent harmful effects on the environment:

CBS rejected the ad, reportedly because of its direct assault on the big two carbonated-beverage makers (CBS didn’t return calls for comment). As the music from the movie Deliverance trills, deliverymen from Coke and Pepsi show up at a supermarket and rush to deliver their products. But the bottles pop and disappear, creating a mess. The ad then pans to a shot of a guy using SodaStream. The implication is that SodaStream will make bottled sodas irrelevant. [...]

Like many upstarts, SodaStream has taken an in-your-face, hyperbolic approach to marketing. The company doesn’t just suggest that SodaStream is a money-saving artisanal device. Rather, it suggests that some of the world’s popular brands (and biggest advertisers) are effectively evil forces. Why? They promote the production of polluting bottles and cans.

“SodaStream empowers consumers to make their own fresh soda at home in seconds, without the devastating environmental impact of plastic soda bottles and cans, which litter our parks and oceans,” said Daniel Birnbaum, the chief executive officer of SodaStream International, in a statement. “Our ad confronts the beverage industry and its arguably out-dated business model by showing people that there exists a smarter way to enjoy soft drinks. One day we will look back on plastic soda bottles the way we now view cigarettes; as a dangerous vice, not as an easily-accepted feature of everyday life.”

Watch the ad here:

Americans throw away enough trash every year to cover the state of Texas — twice. And this isn’t the first time that beverage giants have found themselves in hot water over public health issues. Just last month, Coca Cola launched a deceptive new ad campaign attempting to mask the harmful effects of calorie-laden sodas on America’s obesity and diabetes epidemics.


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NRA Publishes Enemies List With 506 Names

Late last year, the National Rifle Association’s lobbying arm published a Nixonian enemies list naming organizations and individuals that “lent monetary, grassroots or some other type of direct support to anti-gun organizations” or have otherwise backed efforts to promote gun safety. The list totals 506 names, including major medical associations, law enforcement organizations, former presidents and a long list of celebrities. Here are five examples of the kinds of groups the NRA views as its enemies:

As it turns out, the sort of people tasked with saving the lives of victims of gun violence would rather that America’s trauma centers were not quite so busy. A short list of medical and nursing organizations on the NRA’s enemies list includes the American Academy of Pediatrics, the American Medical Association, the American Association for the Surgery of Trauma, and the American Nurses Association, in addition to Ronald Reagan’s Surgeon General C. Everett Koop.

It turns out that sort of people who devote their lives to preparing our children for adulthood don’t much like to learn that a young life has been cut short by gun violence either. The NRA’s enemies list includes the American Association of School Administrators, the American Federation of Teachers, the Council of Chief State School Officers, the National Education Association, the National Association of School Psychologists and the National Association of Elementary School Principals.

It also turns out that people who put risk their lives to keep our streets and schools safe don’t much like being in the line of fire. The National Association of Police Organizations, the National Association of School Safety and Law Enforcement Officers, and the Police Foundation are all on the NRA’s enemies list.

The NRA may not want Americans to “beat their swords into plowshares and their spears into pruning hooks,” but many people of faith take the Bible’s command seriously enough to earn a place on the gun lobby’s list of enemies. They include the American Jewish Committee, the Central Conference of American Rabbis, the Congress of National Black Churches, the Episcopal Church’s Washington Office, the Friends Committee on National Legislation, the Lutheran Office for Governmental Affairs, the United States Catholic Conference, the United Methodist Church General Board & Church Society, and the United Church of Christ Office for Church in Society.

Above anything, the NRA’s enemies list reveals its capacity to hold a grudge. It includes a long, long list of celebrities, many of which are far from Hollywood’s elite circles. It is not clear why the nation’s top gun organization feels so threatened by Art Garfunkel, for example. Or why Washington’s most heavily armed lobbyists fear a ragtag list of former talk show hosts, washed up actors and what appears to be the entirety of Frank Zappa’s progeny. Gun owners beware! Both Boyz II Men and ‘NSYNC are coming for your guns, and the NRA is very, very afraid.


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UPDATE 4-Merck shares fall on worries about osteoporosis drug

* Per-share earnings 83 cts in quarter vs view 81 cts

* Quarterly sales $11.74 bln, vs view $11.48 bln

* Delay in filing for osteoporosis drug worries analysts

(Adds CFO comments, details on osteoporosis drugs, updates shares)

Feb 1 (Reuters) - Merck & Co Inc's quarterly results beat estimates, but the drugmaker issued a cautious 2013 profit forecast and said it will delay seeking approval for a high-profile osteoporosis drug, sending its shares down 3 percent.

Merck will not submit its osteoporosis treatment odanacatib to U.S. regulators until next year. Some analysts had predicted the medicine could generate annual sales of up to $2 billion, if approved.

"We continue to believe in the potential of this drug, and look forward to filing it in 2014," Chief Executive Kenneth Frazier said on a conference call with analysts who expressed concern about the delay.

Merck research chief Peter Kim told analysts he had seen complete data from a large Phase III trial of the drug. But he said the company would delay a marketing application to submit data from an "extension" trial, or a follow-up observation of patients who had completed the study. He did not cite any specific problems with the drug.

An independent monitoring board last July recommended the Phase III study be stopped because its data had already proven odanacatib reduced fracture risk. But the panel flagged certain potential safety concerns.

Merck continued with the extension trial, largely to better examine the safety issues, which have not been publicly identified.

Merck's older Fosamax osteoporosis treatment was the world's top seller, with annual sales of $3 billion until its U.S. patent lapsed in 2008 and generics flooded the market.

The No. 2 U.S. drugmaker earned $1.4 billion, or 46 cents per share, in the fourth quarter. That compared with $1.51 billion, or 49 cents per share, a year earlier, when it took charges for acquisition and restructuring expenses.

Excluding special items, Merck earned 83 cents per share. Analysts, on average, expected 81 cents, according to Thomson Reuters I/B/E/S.

Global company sales fell 5 percent to $11.74 billion, hurt by generic competition for its Singulair asthma drug, but still beat analysts' estimates of $11.48 billion.

The company forecast 2013 earnings of $3.60 to $3.70 per share, excluding special items. The midpoint of that range is below analysts' estimate of $3.68 per share. The company earned $3.82 per share in 2012.

Merck predicted sales in 2013 would be similar to 2012 levels, excluding foreign exchange factors, as Singulair generics continue to take their toll.

"Merck's 2013 (earnings) guidance was a bit conservative, which could point to higher expenses" this year, said Judson Clark, an analyst with Edward Jones. But he said the flat sales forecast was welcome because analysts were expecting somewhat lower sales.

Peter Kellogg, the chief financial officer, said few drugmakers are able to keep sales steady if one of their major medicines faces cheaper generics.

"That means we have a tremendously healthy portfolio of other products to provide compensating growth," Kellogg said in an interview.

Clark predicted Merck's earnings would rebound next year and grow in the high-single-digit range in percentage terms, as experimental drugs are approved and bring in new revenue.

"We think Merck has one of the best drug pipelines in the industry and that it will drive growth," Clark said.

Merck, whose $6 billion-a-year Singulair lost U.S. marketing exclusivity in August, is girding for more pain from cheaper copycats.

Its Maxalt migraine drug, with $600 million in annual sales, goes generic in December, and its near-blockbuster Temodar brain cancer medicine faces generics next year.

Merck said Friday it aims to seek marketing approval this year for five drugs, including suvorexant for insomnia.

It is counting on the new drugs to help cushion plunging sales of Singulair, Maxalt and Temodar.

Merck suffered a major setback in January, when an experimental cholesterol drug called Tredaptive failed to prevent heart problems and raised safety concerns. The drug, which was expected to become a big seller in the United States, was recalled in Europe following the negative study findings.

Singulair sales plunged 67 percent in the quarter to $480 million. Combined sales of diabetes drugs Januvia and Janumet rose 18 percent to $1.6 billion, fueled by growth in the United States and Japan.

Sales of Gardasil, its vaccine to prevent cervical cancer, jumped 61 percent to $442 million, helped by higher public sector purchases and demand in Japan and emerging markets.

Merck shares were down $1.35, or 3.1 percent, to 41.90 in midday trading on the New York Stock Exchange.

(Editing by Gerald E. McCormick, Jeffrey Benkoe and Bernadette Baum)


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CBS to interview Obama during Super Bowl pregame show

President Obama will give a live interview to CBS before it airs the Super Bowl on Sunday.

At 4:30 pm, Obama will field questions from CBS's Scott Pelley, continuing a long-standing tradition of providing interviews to the network airing the NFL championship, usually the most-watched television event of the year. Last year, Obama spoke with Matt Lauer before NBC broadcast the big game.

Pelley told The New Orleans Times-Picayune that he will talk pigskin with the president, but also has a range of "serious questions" to tackle.

"We have suddenly had some headwinds in the economy. Growth in the fourth quarter of last year shrank. We had negative growth. The unemployment rate went up, as we learned [Friday]. I'm going to talk to the president about what he thinks is going on there, and if he knows how to get us back on the track we want to be on," he said.

In addition, Pelley will ask about recent terrorist attacks targeting U.S. officials in North Africa. He may even ask about Lance Armstrong's recent admission of using performance-enhancing drugs, and ongoing concerns about the safety and injury concerns surrounding professional football.

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Presidential Proclamation -- National Teen Dating Violence Awareness and Prevention Month, 2013

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For Immediate Release January 31, 2013 Presidential Proclamation -- National Teen Dating Violence Awareness and Prevention Month, 2013

 

NATIONAL TEEN DATING VIOLENCE AWARENESS AND PREVENTION MONTH, 2013 - - - - - - - BY THE PRESIDENT OF THE UNITED STATES OF AMERICA A PROCLAMATION  This year, it is estimated that 1 in 10 teens will be hurt intentionally by someone they are dating. While this type of abuse cuts across lines of age and gender, young women are disproportionately affected by both dating violence and sexual assault. This month, we stand with those who have known the pain and isolation of an abusive relationship, and we recommit to ending the cycle of violence that affects too many of our sons and daughters. Whether physical or emotional, dating violence can leave scars that last a lifetime. Teens who suffer abuse at the hands of a partner are more likely to struggle in school, develop depression, or turn to drugs or alcohol. Victims are also at greater risk of experiencing the same patterns of violence later in life. These tragic realities tug at our conscience, and they call upon us to ensure survivors of abuse get the services and support they need. We also have a responsibility to make dating violence an act that is never tolerated in our communities, among those we know, or in our own lives. That is why my Administration has made preventing abuse a priority. We continue to support educators, advocates, and organizations who are advancing outreach and education, and we are harnessing the power of technology to get the message out under Vice President Joe Biden's 1is2many initiative. Last June, we built on those efforts by launching a new public service announcement that features professional athletes and other role models speaking out against dating violence. And in the months ahead, we will keep working to empower all Americans in the fight against abuse. To learn more, visit www.WhiteHouse.gov/1is2many. Each of us has an obligation to stand against dating violence when we see it. This month, as we remember that important lesson, let us rededicate ourselves to making its promise real. I encourage all Americans seeking immediate and confidential advice regarding dating violence to contact the National Dating Abuse Helpline at 1-866-331-9474, by texting "loveis" to 77054, or by visiting www.LoveIsRespect.org. Additional resources are available at www.CDC.gov/features/datingviolence. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim February 2013 as National Teen Dating Violence Awareness and Prevention Month. I call upon all Americans to support efforts in their communities and schools, and in their own families, to empower young people to develop healthy relationships throughout their lives and to engage in activities that prevent and respond to teen dating violence. IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of January, in the year of our Lord two thousand thirteen, and of the Independence of the United States of America the two hundred and thirty-seventh.  BARACK OBAMA

Extending Middle Class Tax Cuts

Blog posts on this issue February 03, 2013 3:54 PM ESTVice President Biden and Dr. Biden Visit Landstuhl Regional Medical Center in GermanyVice President Biden and Dr. Biden Visit Landstuhl Regional Medical Center in Germany

Vice President Joe Biden, Dr. Jill Biden, and Deputy Secretary of Defense Ashton Carter visit with Wounded Warriors and their medical caretakers at Landstuhl Regional Medical Center (RMC) in Landstuhl, Germany.

February 03, 2013 9:18 AM ESTSan Francisco and Baltimore Mayors Put Service on the Line for Super Sunday

Bragging rights aren't the only thing on the line for the mayors during tonight's big game -- the winning city will also get a day of service from the mayor of the opposing team.

February 02, 2013 5:45 AM ESTWeekly Address: A Balanced Approach to Growing the Economy in 2013

In this week’s address, President Obama calls on Congress to work together on a balanced approach to reduce our deficit and promote economic growth and job creation.

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VIEWPOINT: How A Very Smart Senator Showed Us Everything Wrong With The Modern GOP In One Week

It shouldn’t have been this way.

Senator Ted Cruz (R-TX) is an undeniably smart man. Cruz is by all accounts a brilliant litigator, one talented enough in the courtroom to clerk for a Supreme Court justice and win a number of difficult cases as Texas’ Solicitor General. It wouldn’t have been crazy to expect that Cruz would bring a degree of argumentative rigor into the Senate after his victory in the 2012 election.

Well, Cruz had two golden opportunities to showcase his keen analytical mind, as he sits on both Senate committees that held high profile hearings last week, one on gun violence prevention, the other on Sen. Chuck Hagel (R-NE)’s nomination to be Secretary of Defense. And Cruz distinguished himself alright. Just not in the way one might have hoped.

The Senator misrepresented official documents to the point of falsehood, placed the words of an raving call-in viewer on a television show in Hagel’s mouth, and played “six degrees of guilt by association” with Hagel’s record in a manner that would make Sen. Joe McCarthy blush. And yet, Cruz’ behavior, embarrassing as it was, was by no means irrational. Rather, it’s a perfect illustration of how the Republican Party’s internal structure, particularly its allied media and electoral base, incentivizes the replacement of real policy thinking with fact-free paranoic fantasism.

Let’s begin with Cruz’ monologue at the gun hearing. The proposed assault weapons ban bore the brunt of his ire. He leaned heavily what he claimed were two Department of Justice papers — one from what he sneeringly characterized as the “Janet Reno Department of Justice under President Clinton” — that had proven the 1994 ban failed to reduce gun violence. In his words, the Senate was about “to reenact a law that, according to the Department of Justice, did absolutely nothing to reduce gun violence.”

Literally every claim in that sentence is false.

First, the Senate is not “reenacting” the 1994 ban. The law proposed by Sen. Dianne Feinstein (D-CA) closes a series of loopholes that even gun regulation proponents admit limited the first ban’s effectiveness. Second, the studies in question were not official judgments of the Department of Justice, as Cruz says, but research by Professor Christopher S. Koper supported by the Department.

Which brings to the third, and most important, point: any fair reading of Koper’s work suggests Cruz has entirely mischaracterized its findings about the ban – a reading shared by Prof. Koper himself. Koper’s research found, among other things, clear evidence that the 1994 ban limited criminal access to assault weapons as well more tentative evidence that assault weapon shootings were more deadly. While it’s true the studies didn’t find evidence that the bans reduced the homicide rate, they didn’t, as Cruz suggests, conclude from that that the ban didn’t work. Rather, Koper said that he didn’t have enough data, given that the ban was only in effect for ten years, to prove for one way or another. That’s why Koper, in a 2004 op-ed, referred to the then-expiring ban as a “work in progress” rather than, as Cruz suggested, a failure. And the assault weapons ban is far from the only issue on which Cruz did violence to the facts in the gun hearing.

As fact-free as Cruz’ diatribe during the guns hearing was, it had nothing on his performance the following day during Senator Hagel’s confirmation. During the excruciatingly long proceedings, Cruz had three chances to interrogate Hagel, each time resorting to grosser distortions of the former Senator’s statements to prove that Hagel was every Israeli’s worst nightmare.

In round one, Cruz played a tape of a rather concerned man calling into a talk show on which Hagel was a guest. The video was spliced to make it appear Hagel agreed with the ranter’s accusation of “war crimes in Palestine.” In reality, Hagel was endorsing, on the program host’s instruction, the need for “moral leadership” by the United States and Russia on nuclear arms reduction, a point made clear by his reference in the full clip to President Obama and then-President Medvedev. After Hagel said he did not believe Israel was committing war crimes, and asked for the full context of the clip, Cruz lied, saying “that was the full context.”

Cruz’ second attempt to cast Hagel as Israeli Public Enemy #1 was equally dishonest. Cruz ventriloquized the claim that Israel had committed a “sickening slaughter” in Lebanon into Hagel’s mouth, even though, as Dave Weigel points out, Hagel was condemning deaths in war themselves rather than Israel’s behavior. And his third sally, a failed attempt to tar Hagel with the views on Israel of someone on the board of an organization he chairs (yes, it’s that remote), struck The New Republic‘s John Judis as “classic McCarthy tactics.”

Judged kindly, Cruz’ performance in each of these two hearings was aggressively inaccurate. Judged more harshly (and accurately), it was mendacious demagoguery at its finest.

So why would Cruz, an intelligent man, resort to such dishonest tactics? There are certainly no shortage of ways to make the case against gun regulation or Chuck Hagel without mischaracterizing research or wrenching stray comments out of context.

But that’s not nearly as fun.

Guns and Israel are two issues of paramount importance to staple GOP voting blocs. These voters don’t want mealy-mouthed, hedged defenses of their positions — as evidenced by the Great RINO Purge of the past few election cycles. Rather, these voters want Republicans who see the world as they do: President Obama and the Democrats are attempting to attack their fundamental liberties and eliminate America’s “exceptional” global role, most prominently by “throwing Israel under the bus.” For these voters, the Assault Weapons Ban isn’t just bad policy; it’s a nefarious, unconstitutional gun grab that strikes at the heart of American liberty. Chuck Hagel hasn’t been more qualified in his support for Israel than Republicans would like; he’s an anti-Semite.

Cruz rode this apocalyptic mood to power, pairing a worldview extreme enough to please the base with packaging just well enough to make him acceptable to more establishment folks. As Mother Jones‘ Tim Murphy writes in a profile of the Senator, “Cruz’s greatest asset is that he lives in both worlds;” he’s “an intellectual face on a movement and ideology that have long simmered beneath the Republican mainstream.” Cruz pioneered a marriage between extreme ideas with a manner of expression that allows the party’s “respectable” thought leaders to support it.

Understanding the central dynamic of Cruz’ political strategy is the key to unlocking his intellectually abysmal outings at the Senate last week. His base wants the fireworks, but straight-up calling Hagel an anti-Semite on the Senate floor might be a bit much. So Cruz wraps up more extreme versions of his arguments in intellectual-sounding garb, citing studies and TV clips that are just good enough to justify his firebreathing.

Now, this strategy would fail if the conservative media said base relies on weren’t interested in playing along to Cruz’ tune. But the writers who are supposed to serve as conservatism’s intellectual gatekeepers lapped it up. “It would be hard to do much better,” National Review‘s Peter Kirsanow wrote, “than one of Hagel’s interlocutors — Senator Ted Cruz.” In response to criticism of Cruz’s arguments as, well, totally made up, Kirsanow scoffed. “Cruz should be pleased to be the subject of such scorn. Smart, principled, aggressive, conservative Republicans are subject to special opprobrium from Beltway elites.”

Kirsanow was far from the only one. “Sorry I missed @tedcruz carving up Chuck Hagel on TV like a roast,” tweeted RedState editor and Fox News contributor Erick Erickson. “Cruz showed what happens when preparation, talent, and discipline come together,” gushed Pete Spiliakos at the theoconservative journal First Things. Commentary’s Jonathan Tobin enthused that “tough questioning” from Cruz and other Republicans exposed “Hagel’s pose as a consistent and ardent friend of Israel and foe of Iran…to be nothing but a hastily constructed façade that doesn’t stand up to scrutiny.” These are but a few examples from a vast ocean.

This adulation illustrates just how deeply rooted GOP dysfunction is. The Republican base elects someone like Cruz, who’s extreme enough to have suggested the United Nations was coming for America’s golf courses. Cruz, who’s not only a ideological member of the base but beholden to it, brings its unsupportable ideas and implacably hostile attitude to the center of the Republican party. And he’s rewarded not just by adulation from his supporters, but widespread praise from the ostensibly serious conservative commentariat. There’s just no incentive for any Republican to speak out against the party’s descent into paranoia, and every reason to believe you’ll be rewarded by giving into it.

So if you want to know why the Republican Party will remain broken for the foreseeable future, go watch the Ted Cruz game tape from this week. And try to think how it could have been otherwise.


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Clicking Online Ads More Likely To Deliver Malware Than Surfing Porn Sites, Report Finds

Your online habits may be less dangerous than you think if they involve the less savory aspects of the web: According to Cisco’s annual 2013 Security Report internet users are 182 times more likely to get malware from clicking on online ads than visiting a porn site. It turns out, the site on the gray or black market edges of the web most of us traditionally think of as dangerous aren’t the biggest threats to your online security, instead:

“The dangers […] are often hidden in plain sight through exploit-laden online ads that are distributed to legitimate websites, or hackers targeting the user community on the common sites they use most.”

Those common sites include online shopping and search engines, which were 21 and 27 times more likely respectively to deliver malicious content than counterfeit software sites according to Cisco. Unsurprisingly, the Pew Internet & American Life Project reports of the 81% of American adults who use the internet some 91 percent report using search engines to find information and 71 percent buy products online.

Of course, many online users (around 10 percent according to one 2012 study) are already using ad-blocking software to avoid being served possibly malicious ads. And the proportion of online resources and time devoted to racy material is up for debate, with just 4 percent of the 1 million most popular of sites in 2010 revolving around sex and 13 percent of searches being for erotic content.

Beyond the eye-catching numbers about the relative safety of surfing for porn, the Cisco report identifies a number of other emerging threats — key among them the rise of Android malware exploits and the possible info-security minefield represented by the internet of things.

Android malware grew much faster than any other form of web delivered malware, with a staggering 2,577 percent increase in malware encounters over 2012. Although only .5 percent of web malware encounters in 2012 were on mobile devices, 95 percent of them were on Android devices — not great news considering Android now controls a majority of the smartphone market.

When it comes to the ever expanding internet of things, much of Cisco’s commentary was speculative – but the core argument rings true: With great connection, comes great responsibility. And there will be great connection:

“Considering that less than 1 percent of things in the physical world are connected today, there remains vast potential to “connect the unconnected.” It is projected that with an Internet that already has an estimated 50 billion “things” connected to it, the number of connections will increase to 13,311,666,640,184,600 by the year 2020.”

Here’s hoping they all don’t serve malware-laced ads, or it could mean trouble.


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Doctors, Insurers Trade Blame on Out-of-Network Fees

Just over a year ago, Angel Gonzalez, 36, awoke with searing chest pain at 2 a.m. A friend drove him to the closest emergency room.

Though he was living on $18,000 a year as a graduate student, Mr. Gonzalez had good insurance and the hospital, St. Charles in Port Jefferson, N.Y., was in his network. But the surgeon who came in to remove Mr. Gonzalez's gallbladder that Sunday night was not.

He billed Mr. Gonzalez $30,000, and an assistant billed an additional $30,000. Mr. Gonzalez's policy covered out-of-network providers, but at a rate it considered appropriate: $2,000. "I was on the hook for more than I made in a year," Mr. Gonzalez said.

A health-insurance industry report to be released on Friday highlights the exorbitant fees charged by some doctors to out-of-network patients like Mr. Gonzalez. The report, by America's Health Insurance Plans, or AHIP, contrasts some of the highest bills charged by non-network providers in 30 states with Medicare rates for the same services. Some of the charges, the insurers assert, are 30, 40 or nearly 100 times greater than Medicare rates.

Insurers hope to spotlight a vexing problem that they say the Affordable Care Act does little to address. "When you're out of network, it's a blank check," said Karen Ignagni, president and chief executive of AHIP. "The consumer is vulnerable to 'anything goes.' "

"Unless we deal with cost, we won't have affordability," she added. "And unless we have affordability, we won't have people participating" under the Affordable Care Act.

Among the fees on the report's list are a $6,205 outpatient office visit to a doctor in Massachusetts for which Medicare would have paid $152; a $12,000 bill for examining a tissue specimen in New York for which Medicare would have paid $128; and a $48,983 surgeon's fee for a total hip replacement in New Jersey that Medicare would have reimbursed at $1,543. Many of the highest billers were in New York, Texas, Florida and New Jersey.

Elisabeth R. Benjamin, co-founder of the Health Care for All New York coalition, who is often at odds with the insurance industry, said that "is one area we totally agree on." She continued, "Out-of-network billing is just out of control."

Even when out-of-network fees are compared with average commercial insurance reimbursements, which are usually greater than Medicare, she said, "It's pretty outrageous."

Doctors say the report is skewed because it focuses on a few dozen cases of overcharging that are not representative of their billing. In response to the insurers' report, the American Medical Association noted on Thursday that a recent analysis found that doctors' services account for just 16 percent of health care costs.

"There are outliers in every profession, in every business," said Dr. Andrew Y. Kleinman, a plastic surgeon who is vice president of the Medical Society of the State of New York.

Dr. Kleinman also noted that insurers had effectively shifted the costs of out-of-network care onto patients by changing reimbursement formulas. Instead of the rates commercial insurers usually pay doctors, insurers increasingly are basing their out-of-network payments on Medicare rates, usually far lower.

A growing number of high-end, flexible health plans offer policies that cover outside providers at, for example, 140 percent of Medicare. "They're selling you an insurance product you can't use," Dr. Kleinman said. "You're buying an insurance policy where the out-of-network benefit is worthless."

The industry's own report suggests that using Medicare rates as a benchmark will lead to patients' picking up much more of the cost for out-of-network care, whether they carefully select a specialist or, as in the case of Mr. Gonzalez and many others, have no choice in the matter.

Had Mr. Gonzalez been 65 or older, Medicare would have paid only $958 for the surgery. The average commercial price is $12,292, according to FAIR Health, an independent nonprofit group that tracks information on health care costs.

But Mr. Gonzalez's health plan, United Healthcare, determined the fee should be $1,273, of which the company paid $838. Mr. Gonzalez filed appeals, which were rejected. He then contacted Community Health Advocates at the Community Service Society of New York for help, and the group's caseworkers negotiated with the surgeon on his behalf.

After months of wrangling, the surgeon agreed to accept a significantly reduced payment: $340.

Consumer advocates and health insurance executives are calling for greater transparency in health care pricing, including upfront disclosure of prices of medical procedures and services.

"The health care industry can give you an estimate, just like any other industry," said Carrie H. Colla, an assistant professor at the Dartmouth Institute for Health Policy and Clinical Practice, noting that the Dartmouth-Hitchcock Medical Center has a patient price estimator online.

"It's just not current practice right now," Dr. Colla said. "Sometimes a doctor won't even know. The patient really has to push for it."


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