Beverly Schools Target Kindergarten Parents Who Don’t Pay

Wednesday, December 3rd, 2008

Nobody’s going to break your knees, but administrators can take parents with overdue bills to small claims court and can prohibit students from participating in other programs until they have money from everyone in the family who owes it.

It also affects siblings, so if you don’t pay for kindergarten for one child, an older brother or sister could be cut off from activities like high school sports or the jazz band. And if the bill isn’t balanced by 12th grade, a student could be banned from senior week and the graduation ceremony.

Parents of full-day kindergartners are by far the biggest scofflaws, with preschool parents coming in second, Liporto said.

Collecting fees for transportation, parking and athletics isn’t usually a problem because it’s easy to manage, Liporto said. If you don’t pay for parking, you don’t get a parking pass. If you don’t pay the sports fee, the coach can address it. But collecting tuition is the hard part.

All too often people pay the deposit, or for the first couple of months of the program, and then stop, Liporto said. The state doesn’t allow public schools to kick kids out for not paying, so there wasn’t much the district could do.

Compared to last year, there are 10 fewer kids in full-day kindergarten, but there are also five fewer kids receiving financial aid.

“When it’s really sincere and people can’t afford it, they can send out a scholarship form,” Liporto said. The district accepts applications throughout the year, as financial situations are constantly changing. Although that also means the amount of scholarship money could skyrocket, Liporto said the only choice is to wait and see what happens.

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Starbucks to close nine Southwest Florida coffee shops

Thursday, July 24th, 2008

Seattle-based Starbucks announced Thursday it will shutter nine stores in Southwest Florida, including two in Bonita Springs, one at Coconut Point, one at Gulf Coast Town Center, three in Fort Myers and two in Naples. There are about 25 stores throughout Lee and Collier counties, including those inside SuperTarget stores.

The Starbucks at Coconut Point Mall in Estero has become a hangout for Cate Stiffler, who was surprised to hear of its impending doom.

Cate visits the coffeehouse twice a week with her mother.

“All the people are nice, they make really good drinks,” she said. “All the food is really good.”

Maurice Barry wondered where he might get a good cup of coffee.

“With gas the way it is, I might just make my own,” said Barry, 28, of Bonita Springs.

Robert Bidrine, who works as a sales associate at Blackhawk Cafe, a coffee shop at the Bell Tower Shops, said he was glad to hear of the store closures.

“It will give smaller mom-and-pop stores a chance and it will get a different crowd in here,” he said.

Bidrine said he hoped the closings would drive more young people into his establishment, which has managed to scoop up a few of Starbucks’ faithful customers.

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Sewing up the baby business

Friday, July 18th, 2008

It wasn’t that long ago that women had to resign from their jobs when they became pregnant to stay at home and look after the children.

Returning to work after having a child is now generally the norm but some mothers are deciding to go it alone and set up their own businesses.

Emma Isaacs is president of the Sydney chapter of Entrepreneurs’ Organisation, a global group for entrepreneurs with more than 7000 members worldwide, and chief executive of Business Chicks, a national networking community for women in business.

Isaacs says: “When I joined the Entrepreneurs’ Organisation three years ago our membership was 10percent female. We’ve now almost doubled that because we’ve strategically targeted women and continue to do so.

“A lot of women resolve to go out on their own. It’s not difficult to set up a business and with the flexibility, creative control, and choices, it’s an attractive option.

”It’s also easier these days to find entrepreneurial female role models which prompts would-be moguls to explore starting their own business.”

Starting a business that makes the most of the burgeoning demand for baby wear, baby toys and baby entertainment is becoming increasingly popular. After all, kitting out and entertaining a baby is expensive, a fact mothers know very well.

Here are three examples of entrepreneurial women who are getting in on the action.

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Crystal Skull sparkles as Indiana Jones revives the magic

Sunday, May 25th, 2008

BREAKING through the cobwebs to revisit a classic franchise whose last film was nearly 20 years ago was never going to be an easy challenge, even for intrepid adventurer Indiana Jones, who’s well-known for rediscovering old relics - but director Steven Spielberg has definitely pulled it off.

An ageing Harrison Ford dusts off his character’s fedora as Indiana Jones and the Kingdom of the Crystal Skulls takes some daring risks and manages to create a rip-roaring piece of summer entertainment with Ford’s charm, Spielberg’s cinematic magic and the excellent new addition of the surprisingly charismatic Shia LaBeouf.

The movie works as a piece of summer entertainment that can be proudly appended to the previous Indy outings, and the film-making is superb with some stunning visuals and action sequences.

This project was always going to get a mixed response - stick to the original formula and some cry that it’s too tired and dated; make radical changes and you risk people saying it’s no longer Indiana Jones. The finished film is very much in the spirit of the originals, with some additions (LaBeouf and a somewhat out-of-this-world storyline) to take it in new directions.

In the story, Indiana Jones and a new companion, biker Mutt Williams (LaBeouf, above right), battle Soviet agents led by Irina Spalko (Cate Blanchett) in a quest to find a crystal skull in Peru which is said to have untold power.

Where it falls short in places is in the writing. Even dismissing the usual Indy cliches (bullets that never hit the target, impossible stunts and death-trap temples), some comic moments feel contrived, some explanations don’t work and the fates of some of the baddies left me totally unsatisfied.

The audience seemed to enjoy the movie and, as I left, one man remarked: “I went in with trepidation but it was excellent” to nodding approval from those around, and that’s exactly how I felt.

I’ll take a look at some of the details of the movie below, so don’t read further if you don’t want to know all the shocks and surprises - instead, come back after you’ve seen the movie and tell me if you agree,

THE DETAILS

This is a genre which has exploded since the first three movies with other quest films such as Tomb Raider, The Mummy and National Treasure, so director Spielberg and co-writer and executive producer George Lucas clearly felt the need to take the story to the next level with Crystal Skull.

Elements of Spielberg’s classic E.T. have now entered the Indiana franchise with this latest movie featuring alien remains, a reference to the Roswell incident and ending with a full-blown flying saucer emerging from an ancient pyramid.

There was a lot of anxiety from some fans before the movie about taking Indy’s archaeological quests into extraterrestrial territory - it does work in the film, though seeing a living alien near the end seemed unnecessary.

And the final explanation of the ‘gold’ of the lost city being the treasure of knowledge didn’t feel right at all, more like a writers’ cop-out. Despite the amazing final scenes at the temple in south America, that explanation seemed phoney and misleading.

The death of Winstone’s treacherous character - who was irritating from the moment he stepped on screen - was largely unsatisfying as was the demise of Blanchett’s eccentric Soviet agent (with bobbed hair, leather boots and a boiler suit). They needed to die - but it should have been more gratifying to the audience and not so rushed. I’m at least relieved that Winstone won’t be annoying me in future Indy movies.

Ford and romantic co star Karen Allen are now decidely advanced in years and one wonders how the franchise can carry on with either of them in physical action roles. Indy’s new sidekick Mutt who turns out to be his son seems to have been there to plant the possibility of him being Jones’ replacement.

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New Web sites make it easy to spy on friends

Thursday, May 22nd, 2008

Armed with new and established Web sites, people are uncovering surprising details about colleagues, lovers and strangers that often don’t turn up in a simple Internet search. Though none of these sites can reveal anything that isn’t already available publicly, they can make it much easier to find. And most of them are free.

Some people have come across dirt on their loved ones without even looking for it. Doug Orlyk, a 42-year-old librarian in Bensenville, Ill., recently turned to ZabaSearch to find his new boyfriend’s address so that he could send him a card. Instead, he found out that the boyfriend had been lying about his age - he was 43 years old, not 35 as he had claimed to be on the dating site where Orlyk had met him. “I thought, ‘You’re a liar! You’re older than I am!’ ” Orlyk recalls. His new relationship ended soon thereafter.

Others rely on the Web to gather information on the job. Art Feagles, a technology specialist at the Cate School, a private high school in Carpinteria, Calif., runs the computer system for the alumni and development office. But his colleagues, who raise funds for the school, keep tapping him for another tech skill: researching potential donors online.

Last year, for example, Feagles wanted to learn more about a potential donor by using the person’s address. So he searched for it in Google Inc.’s Google Earth aerial-mapping program and saw that the address was for a golf-course condominium. From that, he gathered that this was probably a second home, and therefore the person must be rich - and a good prospect for a donation.

The Web sites, for their part, say they’re merely trying to provide services that people will find useful and entertaining. Ray Chen, a cofounder of Spokeo, says he and his partners “don’t want to stalk people.” Instead, he says, “we’re just trying to make something that’s fun to use.” Zaba CEO Nick Matzorkis says the dissemination of public information online is “a 21st-century reality with or without ZabaSearch.”

Larry Yu, a Google spokesman, says the use of Google Earth and Maps to glean personal information about others “is not the intent of the products.” He touts their other uses, such as helping users visualize driving directions.

Many online sleuths start by signing up for an account on social-networking sites like Facebook and News Corp.’s MySpace, where they can search for individuals by name. An acquaintance’s home address can be dug up using ZabaSearch or another public-records search engine; that can then be plugged into Google Maps, where the Street View feature might show an image of the address from the street, or Zillow, which can estimate the value of the home. Those trying to make a business contact might try Jigsaw, which invites users to provide phone numbers, e-mail addresses, job titles and other information from business cards they’ve collected.

The bad news, for those who find themselves targeted by snoops: There is no foolproof way to protect yourself from embarrassing personal-data leaks. But you can avoid many mishaps by going to the root of the leak - that is, by keeping individual pieces of personal data from being made public in the first place. If you don’t want others to see your Amazon wish list or the photos you’ve stored on Flickr, visit those sites’ privacy pages and adjust your settings accordingly.

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US farm bill to ignore global food crisis

Saturday, May 17th, 2008

The US Congress has passed a $290 billion farm bill, which will increase subsidies to US farmers and cut international aid programs.

George Bush has threatened to veto the bill, however, but there is still a good chance it will be passed into law. Interestingly, the presidential candidates response to the bill were contrasting with John McCain critical, Hilary Clinton supportive and Barack Obama labelling it as “far from perfect”.

“It does not target help for the farmers who really need it, and it increases the size and cost of government while jeopardizing the future of legitimate farm programs by damaging the credibility of farm bills in general,” Agriculture Secretary Ed Schafer stated. “At a time of record setting income for farmers, it sends the wrong message to the rest of the country who are not experiencing the boom of the agriculture sector. This bill is loaded with taxpayer funded pet projects at a time when Americans are struggling to buy groceries and afford gas to get to work.”

“Eight months behind schedule, Congress will send a bill to the President that is trade distorting and fails to provide meaningful reform to the adjusted gross income limit, beneficial interest or the international food aid program,” he added.

Raymond Offenheiser, President of Oxfam America, was also strong in his criticism of the bill. “Faced with a mounting food crisis at home and abroad, Congress had the opportunity through the Farm Bill to shift funds from wasteful agricultural subsidies for large scale farms to food aid to meet the needs of the poor,” Mr Offenheiser said. “But instead, Congressional leaders settled on a bill that will continue to be costly to taxpayers, undermine our rural economy, damage our trade relationships, and hurt the world’s poorest farmers.”

The slight decrease in tax credits to ethanol producers (by 5c per gallon) and increased conservation funding were welcomed, although many believe the cuts in tax credits do not go far enough.

With global food prices skyrocketing this year and global fears of a potential food shortage growing, the bill sends a disappointing message from the US to the rest of the world.

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No one’s too young for a play

Sunday, May 11th, 2008

At Assitej, the 16th World Congress and Performing Arts Festival for Young People taking place in Adelaide, visiting companies include the Makhampon Theatre Group from Thailand, which is happy to hear itself described as a form of family, community, university and even food centre. They are performing a Buddhist tale about perseverance. Australian group Zeal Theatre, is collaborating with the South African performers Ellis and Bheki to create a comic show about nationalism and sport.

From Israel, “this crazy country”, as director Norman Issa calls it, comes the Arab-Hebrew Theatre of Jaffa, which, as its name suggests, is determined to defy that country’s political divide.

“We’re not the Christian-Jewish theatre company, or the Muslim-Jewish,” Issa says. “We deal in languages, not religions. We’re a very new idea and the only theatre working like this in Israel, and while we don’t have many sponsors, and are very small, people love this place. We have many friends.”

Issa’s Arab-Hebrew Theatre of Jaffa has brought a two-hander called Ach Ach Boom Traach to Adelaide for the Assitej festival. He co-wrote the hour-long piece with Yoav Barlev and both men perform in it. The fact that he is Jewish and Barlev a Muslim, Issa says, is not the issue (although that’s one of the first things he says about the play). The issue is how any two people, whose languages distance them from each other, can find common ground.

The production is pitched at children as young as three, but it’s also suitable for people in their late teens, the top-end of the age spectrum covered in Assitej’s broad program. Issa reckons it’s for everyone. “This play is very simple, and very difficult,” he says. “Everyone finds their own level within this play.”

Its premise is that the two actors represent brothers who play together, quarrel, then make up, and quarrel again. “The balance of power swings back and forth.”

As their history unfolds in scenes spoken in what sounds to the audience like jibberish (Issa says it’s the “language of Jesus”, Aramaic), one thing remains constant: a prettily coloured box that dangles enticingly above their heads. This appears to be the prize they constantly fight over, as their bitter feuding becomes ever more violent and hurtful. Finally, when they have “settled down to an uneasy truce, the box opens up by itself”. Ach Ach Boom Traach poses the question to the audience: “What are the brothers fighting for?”

Issa is unapologetic when he calls his theatre political, even though he has his critics because of that. “Most people here (in Israel) don’t like political stories, they look, maybe make a noise about the political situation, and then nothing happens. Most people here, they look, and do nothing.”

That’s why he believes children are the hope for the future and theatre for children is his way of turning this hope into action.

“I love children,” he says. “If we can change children, maybe we can reach out for peace. These children in the Jewish community, many years on they will become soldiers and maybe they will be different people because of what they’ve seen. I believe in that. This is my fighting, here in this crazy country.”

The company is in its 12th year, and Ach Ach Boom Traach has been in development for several years, already touring to a long list of countries, including Uzbekistan, Armenia, South Korea and Japan. “It’s very interesting,” Issa says, “that children all over the world react at the same moments during the play. It’s amazing. The inner child is a child wherever you go.”

The key to touching that inner child is to make the experience live, and Issa is animated in his denunciation of the kind of education children are receiving by way of television.

“It has to be live,” he says. “The theatre is life itself, and you can smell it, the actors, the props. It’s not in a box, in your salon (lounge room). In the theatre, the magic is that you see the story happening now, right before you, not edited so you only see the best takes.”

He describes what happens to people who lose touch with the theatre, those who sit in front of the TV screen with a beer and a sandwich as a process of “becoming heavy”, physically and mentally. Issa’s Arab-Hebrew Theatre of Jaffa uses a minimalist set, lots of brightly coloured props, and the energies of its two actors to capture the attention and imagination of its audiences.

According to a growing number of specialists in theatre for children, there is no reason to draw the line there: performances can be directed effectively to babes in arms.

In the Assitej festival, the highly respected Adelaide company, Windmill, has two shows, Cat and Green Sheep, both directed by Cate Fowler, which are pitched to audience members as young as one, but according to Suzanne Oster, theatre can be effective for even younger babies.

Oster is the artistic director of Unga Klara, a division within the Stockholm City Theatre created in 1975 to cater for children and young people. She is attending the Assitej congress, with the support of PlayWriting Australia, to talk about just how young an audience theatre can, and should, target.

The ideal audience, she says, is, in fact, a baby: “Present. Here and now. Not concerned with what it’s having for dinner, doing tomorrow or said yesterday. Free from conventions. Hasn’t read the reviews. Receptive without bias or prejudice.”

Oster’s showcase production, which is not part of the festival but which she will be discussing with delegates at the congress, is Babydrama, designed to present to children as young as six months.

It tells the story of the journey from conception to birth, through to the moment of “meeting their parents and their own will”.

“As far as we know,” Oster says, “text-based performances of this calibre have not been done for such young audiences,” although a Norwegian project has been evaluating the success of dance, mime and puppet theatre for babies from birth to three years old.

That evaluation was so positive, Oster says, there is now a project called Glitterbird, involving the collaboration of several European countries, developing theatre for the newly born. “The more elaborate the productions were, the more alert, concentrated and carefree the child seemed to be.”

Unga Klara works with test audiences, and documents the reactions on film, in order to build knowledge about what works best.

“The fact that one cannot speak,” Oster says, “does not mean that one cannot understand what is said. Experience has shown that the capacity for understanding and assessing situations is present at a very early age. Creating full-scale theatre to the youngest children with all our know-how and passion is a cultural policy statement.

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Auckland families’ shattered house dreams

Sunday, April 20th, 2008

It%26#39;s a Wednesday night in Otahuhu, South Auckland, and a trickle of Samoan families are arriving at the Home Ownership Company%26#39;s offices armed with big dreams, but no money.
The company%26#39;s general manager, Scott Ball, presents a slick slideshow explaining how they can buy their first home or an investment property with 100% finance, even if they have no savings or bad credit histories.
%26quot;Don%26#39;t the banks have to see a savings history?%26quot; asks a Samoan woman in the front row. %26quot;No,%26quot; says Ball, %26quot;we%26#39;ve never had to show that.%26quot;
Ball explains that the Home Ownership Company does not charge fees, taking its cut from the banks, but lends people the difference to cover other fees and a deposit. %26quot;You end up with two loans you are paying off.%26quot;
The company then goes looking for homes that best suit the family involved, he says. %26quot;All you have to do is focus on going to work, earning money, and we%26#39;ll do it all for you,%26quot; says Ball. %26quot;Are there any questions?%26quot;
Just one, from the woman who spoke earlier: %26quot;Where do we sign up?%26quot;
If only it were that simple.
A Sunday Star-Times investigation has found that not only has the Home Ownership Company and its affiliated offshoots made millions of dollars by adding up to $40,000 to the price of each property, concerns have been expressed about the financial information the company has provided to lending institutions. Even more troubling, there have been cases where families who thought their existing debts had been consolidated as part of a complicated two-tier mortgage structure have found that their other debts have not been cleared at all, and that other finance companies have caveats over their homes.
Some families are spending most of their incomes on their mortgages, including penalty interest payments of 25%, often while working in low-paid jobs. Some are skimping on food and other essentials in a desperate effort to keep afloat.
The BNZ severed ties with the company in 2005. %26quot;The Bank of New Zealand terminated the relationship with the Home Ownership Company following a review of the business which raised multiple concerns about both the quality of the information we were receiving and whether clients were being fully and independently informed about the commitment they were undertaking,%26quot; says Blair Vernon, the bank%26#39;s general manager of strategy and marketing.
Rob Thumath, a South Auckland mortgage manager, says he financed about 60 of Home Ownership%26#39;s clients before breaking ties with the company because it had failed to disclose in many cases that families were paying off a second mortgage with the company%26#39;s lending arm, Ready Finance.
He is concerned it is targeting naive and vulnerable people. He says about a third of those clients have defaulted on repayments and he would not have approved the loans if he had known the full picture. %26quot;We have people in here crying every week,%26quot; he says. %26quot;It%26#39;s sale at all costs and to hell with the consequences. They sure as hell aren%26#39;t doing this on the North Shore it%26#39;s a niche market Samoans in south and west Auckland.%26quot;

THE HOME Ownership Company finds it clients by advertising on Samoan-language radio, going into churches, and running stalls at the Otara markets. It claims to have helped 750 families buy their first home or investment property.
The company was founded by Russell Findlay, who first appeared in these pages in 2003 when we reported how he had gone from being one of Auckland%26#39;s largest residential property developers to bankruptcy. He lost more than $3 million of other people%26#39;s money and was banned from directing or being involved in the management of any company for four years.
The Home Ownership Company was taken over by Grant Collecutt, formerly a partner in law firm Simpson Dowsett. He is also a director and co-owner of Ready Finance. When Thumath emailed Collecutt last year to say one of Home Ownership%26#39;s clients had been on the phone crying because consumer loans which were supposed to have been paid off by the company were not, Collecutt denied that was the case.
He wrote back: %26quot;Hopefully this is a case of the client making an innocent mistake (as opposed to wasting their time using the crying tactic to try and get us to advance them more money crying doesn%26#39;t work with me).%26quot;
In a statement to the Star-Times defending his companies%26#39; practices, Collecutt said: %26quot;Without the assistance of Home Ownership the goal of escaping the rent trap and owning their own home is virtually an impossible dream for these clients. Most lenders simply aren%26#39;t prepared to provide a 100% mortgage plus debt consolidation finance package to people with no material assets.%26quot;
He says a %26quot;vast majority%26quot; of clients have built up equity in their properties. %26quot;Of course in spite of our best endeavours, some clients simply can%26#39;t be helped,%26quot; he added. %26quot;If a client does not pay their mortgage(s) and does not take reasonable steps to sort out their financial problems, then they will ultimately end up losing their homes.%26quot;
Collecutt says the company takes steps to ensure people understand the transactions they are entering into, including having native language-speaking staff, getting independent valuations and ensuring they are represented by independent legal advisers.
But several families the Star-Times spoke to say when they raised the idea of bringing in their own lawyer, Home Ownership strongly advised them to use Bryan Yolland of Auckland Property Legal Service, who signed most of the loan documents we saw. The Star-Times spoke to some of the %26quot;testimonial%26quot; families featured in the Home Ownership Company%26#39;s brochures and while they had not experienced any problems, they were surprised to learn how much profit the company had made on their property when shown land records.

At their three-bedroom house in Otara, which they bought for $272,000 at the end of 2006, Maua and Tala Ah Siu talk about how their experience with the company has left them on the verge of losing their home.
Economists say that if households spend more than 40% of their take-home pay on home loan repayments they are in %26quot;mortgage stress%26quot; this couple pays 80% in a desperate attempt to ward off foreclosure threats, which are coming thick and fast.
Buying their own home was a dream for carpenter Maua, 31, and Tala, 26, who came to New Zealand from Samoa about 10 years ago. They heard about the Home Ownership Company on Samoan radio and were reassured that the company%26#39;s spokeswoman was Samoan. But when they went into the company%26#39;s offices they dealt with %26quot;palagis%26quot;, and things became confusing.
Their first application was declined because of Maua%26#39;s bad credit rating.
Tala claims the Home Ownership consultant told them to get a relative to go in with her on the loan application, so they brought in her brother-in-law. His name is on the mortgage and property title but he has not lived with them and has not contributed to any loan repayments. %26quot;They knew he wasn%26#39;t with us when we got the house,%26quot; Tala says.
Collecutt claims his staff did not know about the situation, and that the family gave the impression the brother-in-law was living there.
Land records show Home Ownership%26#39;s property-buying arm, South West Homes, paid the previous owners $250,000, settling the two deals on the same day, meaning it didn%26#39;t have to outlay any money. This is known as a %26quot;contemporaneous settlement%26quot; and gets around real estate laws for non-registered property sellers but creates doubt around the true value of the home.
Collecutt: %26quot;At the end of the day, we will not buy a property unless we are buying it below market value. Our buyers work hard to hunt out and negotiate bargains for our business.%26quot;
The Ah Sius say a Home Ownership consultant advised Maua to sign a letter %26quot;gifting%26quot; $38,617 to Tala and her brother-in-law %26quot;to assist them in the purchase of their home%26quot;. This is Home Ownership%26#39;s standard practice and was the common factor causing confusion for the families we spoke to. This %26quot;gift%26quot; effectively becomes a second mortgage with Ready Finance. The second mortgage, in Maua%26#39;s name and at an interest rate of 18% and penalty rate of 25%, included Ready Finance%26#39;s fee of $2100, legal fees and refinancing of a $10,000 car loan the couple had with Provincial Finance.
The couple got into arrears paying the two mortgages when Tala stopped working to have her third child. Collecutt accuses her of withholding the fact she was pregnant when she signed Tala says she was never asked. After six months a new, higher second mortgage contract was signed, this time for $49,859 and in Tala and her brother-in-law%26#39;s name.
%26quot;Unfortunately for us, we believed their representations and advanced the funds required to settle the first mortgage arrears, throwing good money after bad,%26quot; Collecutt says. He claims Home Ownership offered to buy the property back at the same price they paid for it Tala says she knows of no offer and lines of communication with the company were virtually non-existent.
She says a car loan that Ready Finance took over as part of the second mortgage was not paid, and the car was repossessed. Collecutt says the family withheld the fact that they were in arrears on the payments.
He confirms his company no longer pays off exisiting debts immediately as part of the debt consolidation agreement but takes over weekly payments to other finance companies to minimise its own risk. This arrangement was described as %26quot;weird%26quot; and %26quot;unusual%26quot; by financial advisers the Star-Times spoke to.
Mortgage manager Thumath, who arranged the first mortgage for the couple and has had to place foreclosure warning notices on their fence, believes they have been badly treated by Home Ownership.
Meanwhile, the Ah Sius are struggling on, desperate to keep their house. Most weeks they pay $780 on the two mortgages out of a total weekly income of $977. When Maua%26#39;s work runs out, they miss payments. They sometimes miss meals.
Senior managers from Ready Finance have come to the home. %26quot;They said if we don%26#39;t pay the mortgage we have to leave the house, they were going to give us seven days. It makes our family argue all the time. I wish we didn%26#39;t buy the house in the first place,%26quot; Tala says.
Collecutt fired a parting shot at the family. %26quot;We have bent over backwards to help the Ah Siu family. Given what we have done for them to date, we are quite frankly astounded that they appear to have turned around and defamed us to the media.
%26quot;If they had any material assets [I] would seriously consider issuing defamation proceedings against them. Given that [I] am a litigator with 15 years%26#39; high court experience it costs [me] a lot less than the average man in the street to take such action.%26quot;
South Auckland mortgage broker and financial adviser Rapi Ieremia has dealt with distressed clients of the Home Ownership Company and says in every case he has seen the family%26#39;s mortgage is greater than the value of their house. %26quot;Some I explain that it%26#39;s too late to help… and that I can%26#39;t refinance them now because there is no equity. It%26#39;s just a nightmare.%26quot;
Confusion is the biggest problem, Ieremia says. %26quot;There is a lack of understanding of the enormity and implications of getting into a… 100% mortgage plus an incorporation of debt, and they end up with three mortgages. They don%26#39;t understand. The emotion of owning a home becomes so great when you are not financially educated… it can lead to a lot of problems.%26quot;
Lawyer Momoe Saseve has dealt with Home Ownership clients wanting advice about investment properties they were looking at buying. She was concerned about a lease agreement Home Ownership%26#39;s property management arm, Auckland Property Leasing, was asking clients to sign.
Copies of rental agreements obtained by the Star-Times restrict the amount of rental income owners can receive and demand a $5000 %26quot;exit fee%26quot; if they sell. %26quot;Essentially, it restricted the client immensely in so far as their asset and what they could do with it, and that was why I was telling everyone that it wasn%26#39;t in their best interests to do this,%26quot; Saseve says.
The Commerce Commission received complaints last year about the Home Ownership Company, but its investigation was whether it was charging an unreasonable full prepayment fee and it found no contravention of the relevant acts.
But the drums are beating for the Home Ownership Company, with warnings about it going out on Samoan radio and the Public Watchdogs website.
Saseve says she once saw an advertisement on a local television station for a Christmas party run by the company. %26quot;I just had to shake my head and think, `Boy, those poor people%26#39;.%26quot;

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Editorial: The end is not nigh

Sunday, April 20th, 2008

But the Cassandras should hold back on the wailing. If New Zealand holds its nerve, there will be a pause, not a collapse. It weathered the Asian Crisis that erupted in mid-1997 without foundering, and there is no reason to suppose it cannot do the same when it comes to the American credit crunch of 2008.
It has to be acknowledged that business is not brimming with confidence. The latest New Zealand Institute of Economic Research survey of business opinion showed a sharp deterioration, with a net 56 per cent of New Zealand businesses expecting the general business situation to worsen in the next six months.
That is understandable. The United States%26#39; economy is tipping into recession. The debate now is over how deep that recession will be. Some economists are predicting it will be one of the most severe in decades, pointing out that house price falls have wiped out US$2.2 trillion of wealth with little end in sight. The American consumer has been described as shopped-out, savings-less and debt-burdened. And that is flowing on, with European economies slowing. China will be hit, as the appetite for its exports wanes in the US, and emerging economies will also suffer as the US recession and global slowdown bite into the commodity markets. However, New Zealand is not going to fall into an economic abyss.
The spiralling world food prices that are putting pressure on at the supermarket are also putting money in Kiwi pockets. Fonterra has just lifted its payout to $7.30 a kilogram as prices have held up better than expected, largely due to drought. Chairman Henry van der Heyden believes there is still an upside in the prices. But Fonterra is taking a cautious approach because of the volatility of the international markets, and considering holding on to some of the season%26#39;s earnings.
That is sensible, and an example worth following. Many New Zealanders, especially those who own houses, have been enjoying the best of times. There is no reason to expect them now to enter the worst of times. Property values have soared, and despite the market cooling, there is no suggestion that it will follow the American market into collapse. Homeowners will need to be cautious when it comes to spending, but they are still much better off than they were before the boom.
There is also wiggle room, with tax cuts and the potential for the Reserve Bank to reduce interest rates to soften the impact. Governor Alan Bollard has advised banks and businesses not to overreact to the downturn, because the Kiwi economy %26quot;remains fundamentally sound and creditworthy%26quot;.
That is helpful as far as it goes, but Dr Bollard should remember actions speak louder than words. When external events push inflation above its 1-3 per cent target band, the policy targets agreement gives him some latitude to look to the medium term rather than the immediate figures.
If he needs to help New Zealand ride out the storm that started overseas with a rates cut earlier rather than later, he should use that latitude.

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How the Pentagon Spreads Its Message on War

Sunday, April 20th, 2008

by David Barstow

(The NY Times)In the summer of 2005, the Bush administration confronted a fresh wave of criticism over Guantamo Bay. The detention center had just been branded he gulag of our times?by Amnesty International, there were new allegations of abuse from United Nations human rights experts and calls were mounting for its closure.

The administration communications experts responded swiftly.

Early one Friday morning, they put a group of retired military officers

on one of the jets normally used by Vice President Dick Cheney and flew them to Cuba for a carefully orchestrated tour of Guantamo.

To the public, these men are members of a familiar fraternity,

presented tens of thousands of times on television and radio as

ilitary analysts?whose long service has equipped them to give

authoritative and unfettered judgments about the most pressing issues

of the post-Sept. 11 world.

Hidden behind that appearance of objectivity, though, is a Pentagon

information apparatus that has used those analysts in a campaign to

generate favorable news coverage of the administration wartime

performance, an examination by The New York Times has found.

The effort, which began with the buildup to the Iraq

war and continues to this day, has sought to exploit ideological and

military allegiances, and also a powerful financial dynamic: Most of

the analysts have ties to military contractors vested in the very war

policies they are asked to assess on air.

Those business relationships are hardly ever disclosed to the

viewers, and sometimes not even to the networks themselves. But

collectively, the men on the plane and several dozen other military

analysts represent more than 150 military contractors either as

lobbyists, senior executives, board members or consultants. The

companies include defense heavyweights, but also scores of smaller

companies, all part of a vast assemblage of contractors scrambling for

hundreds of billions in military business generated by the

administration war on terror. It is a furious competition, one in

which inside information and easy access to senior officials are highly

prized.

Records and interviews show how the Bush administration has used

its control over access and information in an effort to transform the

analysts into a kind of media Trojan horse ?an instrument intended to

shape terrorism coverage from inside the major TV and radio networks.

Analysts have been wooed in hundreds of private briefings with

senior military leaders, including officials with significant influence

over contracting and budget matters, records show. They have been taken

on tours of Iraq and given access to classified intelligence. They have

been briefed by officials from the White House, State Department and

Justice Department, including Mr. Cheney, Alberto R. Gonzales and Stephen J. Hadley.

In turn, members of this group have echoed administration talking

points, sometimes even when they suspected the information was false or

inflated. Some analysts acknowledge they suppressed doubts because they

feared jeopardizing their access.

A few expressed regret for participating in what they regarded as

an effort to dupe the American public with propaganda dressed as

independent military analysis.

揑t was them saying, 慦e need to stick our hands up your back and

move your mouth for you,?nbsp;?Robert S. Bevelacqua, a retired Green Beret

and former Fox News analyst, said.

Kenneth Allard, a former NBC military analyst who has taught

information warfare at the National Defense University, said the

campaign amounted to a sophisticated information operation. his was a

coherent, active policy,?he said.

As conditions in Iraq deteriorated, Mr. Allard recalled, he saw a

yawning gap between what analysts were told in private briefings and

what subsequent inquiries and books later revealed.

揘ight and day,?Mr. Allard said, 揑 felt we抎 been hosed.?

The Pentagon defended its relationship with military analysts,

saying they had been given only factual information about the war. he

intent and purpose of this is nothing other than an earnest attempt to

inform the American people,?Bryan Whitman, a Pentagon spokesman, said.

It was, Mr. Whitman added, bit incredible?to think retired

military officers could be ound up?and turned into uppets of the

Defense Department.?/p>

Many analysts strongly denied that they had either been co-opted or

had allowed outside business interests to affect their on-air comments,

and some have used their platforms to criticize the conduct of the war.

Several, like Jeffrey D. McCausland, a CBS military analyst and defense

industry lobbyist, said they kept their networks informed of their

outside work and recused themselves from coverage that touched on

business interests.

揑抦 not here representing the administration,?Dr. McCausland said.

Some network officials, meanwhile, acknowledged only a limited

understanding of their analysts?interactions with the administration.

They said that while they were sensitive to potential conflicts of

interest, they did not hold their analysts to the same ethical

standards as their news employees regarding outside financial

interests. The onus is on their analysts to disclose conflicts, they

said. And whatever the contributions of military analysts, they also

noted the many network journalists who have covered the war for years

in all its complexity.

Five years into the Iraq war, most details of the architecture and

execution of the Pentagon campaign have never been disclosed. But The

Times successfully sued the Defense Department to gain access to 8,000

pages of e-mail messages, transcripts and records describing years of

private briefings, trips to Iraq and Guantamo and an extensive

Pentagon talking points operation.

These records reveal a symbiotic relationship where the usual

dividing lines between government and journalism have been obliterated.

Internal Pentagon documents repeatedly refer to the military

analysts as essage force multipliers?or urrogates?who could be

counted on to deliver administration hemes and messages?to millions

of Americans 搃n the form of their own opinions.?/p>

Though many analysts are paid network consultants, making $500 to

$1,000 per appearance, in Pentagon meetings they sometimes spoke as if

they were operating behind enemy lines, interviews and transcripts

show. Some offered the Pentagon tips on how to outmaneuver the

networks, or as one analyst put it to Donald H. Rumsfeld,

then the defense secretary, he Chris Matthewses and the Wolf Blitzers

of the world.?Some warned of planned stories or sent the Pentagon

copies of their correspondence with network news executives. Many ?
although certainly not all ?faithfully echoed talking points intended

to counter critics.

揋ood work,?Thomas G. McInerney, a retired Air Force general,

consultant and Fox News analyst, wrote to the Pentagon after receiving

fresh talking points in late 2006. e will use it.?/p>

Again and again, records show, the administration has enlisted

analysts as a rapid reaction force to rebut what it viewed as critical

news coverage, some of it by the networks?own Pentagon correspondents.

For example, when news articles revealed that troops in Iraq were dying

because of inadequate body armor, a senior Pentagon official wrote to

his colleagues: 揑 think our analysts ?properly armed ?can push back

in that arena.?/p>

The documents released by the Pentagon do not show any quid pro quo

between commentary and contracts. But some analysts said they had used

the special access as a marketing and networking opportunity or as a

window into future business possibilities.

John C. Garrett is a retired Army colonel and unpaid analyst for

Fox News TV and radio. He is also a lobbyist at Patton Boggs who helps

firms win Pentagon contracts, including in Iraq. In promotional

materials, he states that as a military analyst he 搃s privy to weekly

access and briefings with the secretary of defense, chairman of the Joint Chiefs of Staff

and other high level policy makers in the administration.?One client

told investors that Mr. Garrett special access and decades of

experience helped him o know in advance ?and in detail ?how best to

meet the needs?of the Defense Department and other agencies.

In interviews Mr. Garrett said there was an inevitable overlap

between his dual roles. He said he had gotten 搃nformation you just

otherwise would not get,?from the briefings and three

Pentagon-sponsored trips to Iraq. He also acknowledged using this

access and information to identify opportunities for clients. 揧ou

can help but look for that,?he said, adding, 揑f you know a

capability that would fill a niche or need, you try to fill it. hat

good for everybody.?/p>

At the same time, in e-mail messages to the Pentagon, Mr. Garrett

displayed an eagerness to be supportive with his television and radio

commentary. lease let me know if you have any specific points you

want covered or that you would prefer to downplay,?he wrote in January

2007, before President Bush went on TV to describe the surge strategy

in Iraq.

Conversely, the administration has demonstrated that there is a

price for sustained criticism, many analysts said. 揧ou抣l lose all

access,?Dr. McCausland said.

With a majority of Americans calling the war a mistake despite all

administration attempts to sway public opinion, the Pentagon has

focused in the last couple of years on cultivating in particular

military analysts frequently seen and heard in conservative news

outlets, records and interviews show.

Some of these analysts were on the mission to Cuba on June 24, 2005

?the first of six such Guantamo trips ?which was designed to

mobilize analysts against the growing perception of Guantamo as an

international symbol of inhumane treatment. On the flight to Cuba, for

much of the day at Guantamo and on the flight home that night,

Pentagon officials briefed the 10 or so analysts on their key messages

?how much had been spent improving the facility, the abuse endured by

guards, the extensive rights afforded detainees.

The results came quickly. The analysts went on TV and radio,

decrying Amnesty International, criticizing calls to close the facility

and asserting that all detainees were treated humanely.

he impressions that you抮e getting from the media and from the

various pronouncements being made by people who have not been here in

my opinion are totally false,?Donald W. Shepperd, a retired Air Force

general, reported live on CNN by phone from Guantamo that same

afternoon.

The next morning, Montgomery Meigs, a retired Army general and NBC

analyst, appeared on oday.?here been over $100 million of new

construction,?he reported. he place is very professionally run.?

Within days, transcripts of the analysts?appearances were

circulated to senior White House and Pentagon officials, cited as

evidence of progress in the battle for hearts and minds at home.

Charting the Campaign

By early 2002, detailed planning for a possible Iraq invasion was

under way, yet an obstacle loomed. Many Americans, polls showed, were

uneasy about invading a country with no clear connection to the Sept.

11 attacks. Pentagon and White House officials believed the military

analysts could play a crucial role in helping overcome this resistance.

Torie Clarke, the former public relations executive who oversaw the

Pentagon dealings with the analysts as assistant secretary of defense

for public affairs, had come to her job with distinct ideas about

achieving what she called 搃nformation dominance.?In a spin-saturated

news culture, she argued, opinion is swayed most by voices perceived as

authoritative and utterly independent.

And so even before Sept. 11, she built a system within the Pentagon

to recruit 搆ey influentials??movers and shakers from all walks who

with the proper ministrations might be counted on to generate support

for Mr. Rumsfeld priorities.

In the months after Sept. 11, as every network rushed to retain its

own all-star squad of retired military officers, Ms. Clarke and her

staff sensed a new opportunity. To Ms. Clarke team, the military

analysts were the ultimate 搆ey influential??authoritative, most of

them decorated war heroes, all reaching mass audiences.

The analysts, they noticed, often got more airtime than network

reporters, and they were not merely explaining the capabilities of

Apache helicopters. They were framing how viewers ought to interpret

events. What is more, while the analysts were in the news media, they

were not of the news media. They were military men, many of them

ideologically in sync with the administration neoconservative brain

trust, many of them important players in a military industry

anticipating large budget increases to pay for an Iraq war.

Even analysts with no defense industry ties, and no fondness for

the administration, were reluctant to be critical of military leaders,

many of whom were friends. 揑t is very hard for me to criticize the

United States Army,?said William L. Nash, a retired Army general and

ABC analyst. 揑t is my life.?/p>

Other administrations had made sporadic, small-scale attempts to

build relationships with the occasional military analyst. But these

were trifling compared with what Ms. Clarke team had in mind. Don

Meyer, an aide to Ms. Clarke, said a strategic decision was made in

2002 to make the analysts the main focus of the public relations push

to construct a case for war. Journalists were secondary. e didn

want to rely on them to be our primary vehicle to get information out,?
Mr. Meyer said.

The Pentagon regular press office would be kept separate from the

military analysts. The analysts would instead be catered to by a small

group of political appointees, with the point person being Brent T.

Krueger, another senior aide to Ms. Clarke. The decision recalled other

administration tactics that subverted traditional journalism. Federal

agencies, for example, have paid columnists to write favorably about

the administration. They have distributed to local TV stations hundreds

of fake news segments with fawning accounts of administration

accomplishments. The Pentagon itself has made covert payments to Iraqi

newspapers to publish coalition propaganda.

Rather than complain about the edia filter,?each of these

techniques simply converted the filter into an amplifier. This time,

Mr. Krueger said, the military analysts would in effect be riting the

op-ed?for the war.

Assembling the Team

From the start, interviews show, the White House took a keen

interest in which analysts had been identified by the Pentagon,

requesting lists of potential recruits, and suggesting names. Ms.

Clarke team wrote summaries describing their backgrounds, business

affiliations and where they stood on the war.

揜umsfeld ultimately cleared off on all invitees,?said Mr.

Krueger, who left the Pentagon in 2004. (Through a spokesman, Mr.

Rumsfeld declined to comment for this article.)

Over time, the Pentagon recruited more than 75 retired officers,

although some participated only briefly or sporadically. The largest

contingent was affiliated with Fox News, followed by NBC and CNN, the

other networks with 24-hour cable outlets. But analysts from CBS and

ABC were included, too. Some recruits, though not on any network

payroll, were influential in other ways ?either because they were

sought out by radio hosts, or because they often published op-ed

articles or were quoted in magazines, Web sites and newspapers. At

least nine of them have written op-ed articles for The Times.

The group was heavily represented by men involved in the business

of helping companies win military contracts. Several held senior

positions with contractors that gave them direct responsibility for

winning new Pentagon business. James Marks, a retired Army general and

analyst for CNN from 2004 to 2007, pursued military and intelligence

contracts as a senior executive with McNeil Technologies. Still others

held board positions with military firms that gave them responsibility

for government business. General McInerney, the Fox analyst, for

example, sits on the boards of several military contractors, including

Nortel Government Solutions, a supplier of communication networks.

Several were defense industry lobbyists, such as Dr. McCausland,

who works at Buchanan Ingersoll %26amp; Rooney, a major lobbying firm

where he is director of a national security team that represents

several military contractors. e offer clients access to key decision

makers,?Dr. McCausland team promised on the firm Web site.

Dr. McCausland was not the only analyst making this pledge. Another was Joseph W. Ralston,

a retired Air Force general. Soon after signing on with CBS, General

Ralston was named vice chairman of the Cohen Group, a consulting firm

headed by a former defense secretary, William Cohen, himself now a

orld affairs?analyst for CNN. he Cohen Group knows that getting to

憏es?in the aerospace and defense market ?whether in the United

States or abroad ?requires that companies have a thorough, up-to-date

understanding of the thinking of government decision makers,?the

company tells prospective clients on its Web site.

There were also ideological ties.

Two of NBC most prominent analysts, Barry R. McCaffrey

and the late Wayne A. Downing, were on the advisory board of the

Committee for the Liberation of Iraq, an advocacy group created with

White House encouragement in 2002 to help make the case for ousting Saddam Hussein. Both men also had their own consulting firms and sat on the boards of major military contractors.

Many also shared with Mr. Bush national security team a belief

that pessimistic war coverage broke the nation will to win in

Vietnam, and there was a mutual resolve not to let that happen with

this war.

This was a major theme, for example, with Paul E. Vallely, a Fox

News analyst from 2001 to 2007. A retired Army general who had

specialized in psychological warfare, Mr. Vallely co-authored a paper

in 1980 that accused American news organizations of failing to defend

the nation from 揺nemy?propaganda during Vietnam.

e lost the war ?not because we were outfought, but because we

were out Psyoped,?he wrote. He urged a radically new approach to

psychological operations in future wars ?taking aim at not just

foreign adversaries but domestic audiences, too. He called his approach

揗indWar??using network TV and radio to trengthen our national will

to victory.?/p>

The Selling of the War

From their earliest sessions with the military analysts, Mr.

Rumsfeld and his aides spoke as if they were all part of the same team.

In interviews, participants described a powerfully seductive

environment ?the uniformed escorts to Mr. Rumsfeld private

conference room, the best government china laid out, the embossed name

cards, the blizzard of PowerPoints, the solicitations of advice and

counsel, the appeals to duty and country, the warm thank you notes from

the secretary himself.

揙h, you have no idea,?Mr. Allard said, describing the effect.

揧ou抮e back. They listen to you. They listen to what you say on TV.?
It was, he said, syops on steroids??a nuanced exercise in influence

through flattery and proximity. 揑t not like it, 慦e抣l pay you

$500 to get our story out,??he said. 揑t more subtle.?/p>

The access came with a condition. Participants were instructed not

to quote their briefers directly or otherwise describe their contacts

with the Pentagon.

In the fall and winter leading up to the invasion, the Pentagon

armed its analysts with talking points portraying Iraq as an urgent

threat. The basic case became a familiar mantra: Iraq possessed

chemical and biological weapons, was developing nuclear weapons, and

might one day slip some to Al-Qaeda; an invasion would be a relatively quick and inexpensive ar of liberation.?/p>

At the Pentagon, members of Ms. Clarke staff marveled at the way

the analysts seamlessly incorporated material from talking points and

briefings as if it was their own.

揧ou could see that they were messaging,?Mr. Krueger said. 揧ou

could see they were taking verbatim what the secretary was saying or

what the technical specialists were saying. And they were saying it

over and over and over.?Some days, he added, e were able to click on

every single station and every one of our folks were up there

delivering our message. You抎 look at them and say, his is working.?nbsp;?/p>

On April 12, 2003, with major combat almost over, Mr. Rumsfeld

drafted a memorandum to Ms. Clarke. 揕et think about having some of

the folks who did such a good job as talking heads in after this thing

is over,?he wrote.

By summer, though, the first signs of the insurgency had emerged.

Reports from journalists based in Baghdad were increasingly suffused

with the imagery of mayhem.

The Pentagon did not have to search far for a counterweight.

It was time, an internal Pentagon strategy memorandum urged, to

搑e-energize surrogates and message-force multipliers,?starting with

the military analysts.

The memorandum led to a proposal to take analysts on a tour of Iraq

in September 2003, timed to help overcome the sticker shock from Mr.

Bush request for $87 billion in emergency war financing.

The group included four analysts from Fox News, one each from CNN

and ABC, and several research-group luminaries whose opinion articles

appear regularly in the nation op-ed pages.

The trip invitation promised a look at he real situation on the ground in Iraq.?/p>

The situation, as described in scores of books, was deteriorating. L. Paul Bremer III,

then the American viceroy in Iraq, wrote in his memoir, 揗y Year in

Iraq,?that he had privately warned the White House that the United

States had bout half the number of soldiers we needed here.?/p>

e抮e up against a growing and sophisticated threat,?Mr. Bremer

recalled telling the president during a private White House dinner.

That dinner took place on Sept. 24, while the analysts were touring Iraq.

Yet these harsh realities were elided, or flatly contradicted,

during the official presentations for the analysts, records show. The

itinerary, scripted to the minute, featured brief visits to a model

school, a few refurbished government buildings, a center for women

rights, a mass grave and even the gardens of Babylon.

Mostly the analysts attended briefings. These sessions, records

show, spooled out an alternative narrative, depicting an Iraq bursting

with political and economic energy, its security forces blossoming. On

the crucial question of troop levels, the briefings echoed the White

House line: No reinforcements were needed. The 揼rowing and

sophisticated threat?described by Mr. Bremer was instead depicted as

degraded, isolated and on the run.

e抮e winning,?a briefing document proclaimed.

One trip participant, General Nash of ABC, said some briefings were

so clearly rtificial?that he joked to another group member that they

were on he George Romney memorial trip to Iraq,?a reference to Mr.

Romney infamous claim that American officials had 揵rainwashed?him

into supporting the Vietnam War during a tour there in 1965, while he

was governor of Michigan.

But if the trip pounded the message of progress, it also

represented a business opportunity: direct access to the most senior

civilian and military leaders in Iraq and Kuwait, including many with a

say in how the president $87 billion would be spent. It also was a

chance to gather inside information about the most pressing needs

confronting the American mission: the acute shortages of 搖p-armored?
Humvees; the billions to be spent building military bases; the urgent

need for interpreters; and the ambitious plans to train Iraq security

forces.

Information and access of this nature had undeniable value for trip participants like William V. Cowan and Carlton A. Sherwood.

Mr. Cowan, a Fox analyst and retired Marine colonel, was the chief

executive of a new military firm, the wvc3 Group. Mr. Sherwood was its

executive vice president. At the time, the company was seeking

contracts worth tens of millions to supply body armor and

counterintelligence services in Iraq. In addition, wvc3 Group had a

written agreement to use its influence and connections to help tribal

leaders in Al Anbar Province win reconstruction contracts from the

coalition.

hose sheiks wanted access to the C.P.A.,?Mr. Cowan recalled in an

interview, referring to the Coalition Provisional Authority.

Mr. Cowan said he pleaded their cause during the trip. 揑 tried to

push hard with some of Bremer people to engage these people of Al

Anbar,?he said.

Back in Washington, Pentagon officials kept a nervous eye on how the

trip translated on the airwaves. Uncomfortable facts had bubbled up

during the trip. One briefer, for example, mentioned that the Army was

resorting to packing inadequately armored Humvees with sandbags and

Kevlar blankets. Descriptions of the Iraqi security forces were

withering. hey can shoot, but then again, they don,?one officer

told them, according to one participant notes.

揑 saw immediately in 2003 that things were going south,?General

Vallely, one of the Fox analysts on the trip, recalled in an interview

with The Times.

The Pentagon, though, need not have worried.

揧ou can believe the progress,?General Vallely told Alan Colmes

of Fox News upon his return. He predicted the insurgency would be own

to a few numbers?within months.

e could not be more excited, more pleased,?Mr. Cowan told Greta

Van Susteren of Fox News. There was barely a word about armor shortages

or corrupt Iraqi security forces. And on the key strategic question of

the moment ?whether to send more troops ?the analysts were unanimous.

揑 am so much against adding more troops,?General Shepperd said on CNN.

Access and Influence

Inside the Pentagon and at the White House, the trip was viewed as a

masterpiece in the management of perceptions, not least because it gave

fuel to complaints that ainstream?journalists were ignoring the good

news in Iraq.

e抮e hitting a home run on this trip,?a senior Pentagon official wrote in an e-mail message to Richard B. Myers and Peter Pace, then chairman and vice chairman of the Joint Chiefs of Staff.

Its success only intensified the Pentagon campaign. The pace of

briefings accelerated. More trips were organized. Eventually the effort

involved officials from Washington to Baghdad to Kabul to Guantamo

and back to Tampa, Fla., the headquarters of United States Central

Command.

The scale reflected strong support from the top. When officials in

Iraq were slow to organize another trip for analysts, a Pentagon

official fired off an e-mail message warning that the trips ave the

highest levels of visibility?at the White House and urging them to get

moving before Lawrence Di Rita, one of Mr. Rumsfeld closest aides,

icks up the phone and starts calling the 4-stars.?/p>

Mr. Di Rita, no longer at the Defense Department, said in an

interview that a 揷onscious decision?was made to rely on the military

analysts to counteract he increasingly negative view of the war?
coming from journalists in Iraq. The analysts, he said, generally had

more supportive view?of the administration and the war, and the

combination of their TV platforms and military cachet made them ideal

for rebutting critical coverage of issues like troop morale, treatment

of detainees, inadequate equipment or poorly trained Iraqi security

forces. 揙n those issues, they were more likely to be seen as credible

spokesmen,?he said.

For analysts with military industry ties, the attention brought

access to a widening circle of influential officials beyond the

contacts they had accumulated over the course of their careers.

Charles T. Nash, a Fox military analyst and retired Navy captain, is

a consultant who helps small companies break into the military market.

Suddenly, he had entree to a host of senior military leaders, many of

whom he had never met. It was, he said, like being embedded with the

Pentagon leadership. 揧ou start to recognize what most important to

them,?he said, adding, here nothing like seeing stuff firsthand.?

Some Pentagon officials said they were well aware that some

analysts viewed their special access as a business advantage. 揙f

course we realized that,?Mr. Krueger said. e weren na飗e about

that.?/p>

They also understood the financial relationship between the networks

and their analysts. Many analysts were being paid by the it,?the

number of times they appeared on TV. The more an analyst could boast of

fresh inside information from high-level Pentagon ources,?the more

hits he could expect. The more hits, the greater his potential

influence in the military marketplace, where several analysts

prominently advertised their network roles.

hey have taken lobbying and the search for contracts to a far higher level,?Mr. Krueger said. his has been highly honed.?

Mr. Di Rita, though, said it never occurred to him that analysts

might use their access to curry favor. Nor, he said, did the Pentagon

try to exploit this dynamic. hat not something that ever crossed my

mind,?he said. In any event, he argued, the analysts and the networks

were the ones responsible for any ethical complications. e assume

they know where the lines are,?he said.

The analysts met personally with Mr. Rumsfeld at least 18 times,

records show, but that was just the beginning. They had dozens more

sessions with the most senior members of his brain trust and access to

officials responsible for managing the billions being spent in Iraq.

Other groups of 搆ey influentials?had meetings, but not nearly as

often as the analysts.

An internal memorandum in 2005 helped explain why. The memorandum,

written by a Pentagon official who had accompanied analysts to Iraq,

said that based on her observations during the trip, the analysts re

having a greater impact?on network coverage of the military. hey

have now become the go-to guys not only on breaking stories, but they

influence the views on issues,?she wrote.

Other branches of the administration also began to make use of the

analysts. Mr. Gonzales, then the attorney general, met with them soon

after news leaked that the government was wiretapping terrorism

suspects in the United States without warrants, Pentagon records show.

When David H. Petraeus was appointed the commanding general in Iraq in January 2007, one of his early acts was to meet with the analysts.

e knew we had extraordinary access,?said Timur J. Eads, a

retired Army lieutenant colonel and Fox analyst who is vice president

of government relations for Blackbird Technologies, a fast-growing

military contractor.

Like several other analysts, Mr. Eads said he had at times held his

tongue on television for fear that ome four-star could call up and

say, æ…˜ill that contract.?nbsp;?For example, he believed Pentagon

officials misled the analysts about the progress of Iraq security

forces. 揑 know a snow job when I see one,?he said. He did not share

this on TV.

揌uman nature,?he explained, though he noted other instances when he was critical.

Some analysts said that even before the war started, they privately

had questions about the justification for the invasion, but were

careful not to express them on air.

Mr. Bevelacqua, then a Fox analyst, was among those invited to a

briefing in early 2003 about Iraq purported stockpiles of illicit

weapons. He recalled asking the briefer whether the United States had

moking gun?proof.

?nbsp;æ…¦e don have any hard evidence,?nbsp;?Mr. Bevelacqua recalled the

briefer replying. He said he and other analysts were alarmed by this

concession. e are looking at ourselves saying, æ…¦hat are we doing??nbsp;?

Another analyst, Robert L. Maginnis, a retired Army lieutenant

colonel who works in the Pentagon for a military contractor, attended

the same briefing and recalled feeling 搗ery disappointed?after being

shown satellite photographs purporting to show bunkers associated with

a hidden weapons program. Mr. Maginnis said he concluded that the

analysts were being anipulated?to convey a false sense of certainty

about the evidence of the weapons. Yet he and Mr. Bevelacqua and the

other analysts who attended the briefing did not share any misgivings

with the American public.

Mr. Bevelacqua and another Fox analyst, Mr. Cowan, had formed the

wvc3 Group, and hoped to win military and national security contracts.

here no way I was going to go down that road and get completely

torn apart,?Mr. Bevelacqua said. 揧ou抮e talking about fighting a huge

machine.?

Some e-mail messages between the Pentagon and the analysts reveal an

implicit trade of privileged access for favorable coverage. Robert H.

Scales Jr., a retired Army general and analyst for Fox News and National Public Radio

whose consulting company advises several military firms on weapons and

tactics used in Iraq, wanted the Pentagon to approve high-level

briefings for him inside Iraq in 2006.

揜ecall the stuff I did after my last visit,?he wrote. 揑 will do the same this time.?/p>

Pentagon Keeps Tabs

As it happened, the analysts?news media appearances were being

closely monitored. The Pentagon paid a private contractor, Omnitec

Solutions, hundreds of thousands of dollars to scour databases for any

trace of the analysts, be it a segment on he O扲eilly Factor?or an

interview with The Daily Inter Lake in Montana, circulation 20,000.

Omnitec evaluated their appearances using the same tools as

corporate branding experts. One report, assessing the impact of several

trips to Iraq in 2005, offered example after example of analysts

echoing Pentagon themes on all the networks.

揅ommentary from all three Iraq trips was extremely positive over all,?the report concluded.

In interviews, several analysts reacted with dismay when told they

were described as reliable urrogates?in Pentagon documents. And some

asserted that their Pentagon sessions were, as David L. Grange, a

retired Army general and CNN analyst put it, 搄ust upfront

information,?while others pointed out, accurately, that they did not

always agree with the administration or each other. 揘one of us drink

the Kool-Aid,?General Scales said.

Likewise, several also denied using their special access for

business gain. 揘ot related at all,?General Shepperd said, pointing

out that many in the Pentagon held CNN 搃n the lowest esteem.?

Still, even the mildest of criticism could draw a challenge.

Several analysts told of fielding telephone calls from displeased

defense officials only minutes after being on the air.

On Aug. 3, 2005, 14 marines died in Iraq. That day, Mr. Cowan, who

said he had grown increasingly uncomfortable with the wisted version

of reality?being pushed on analysts in briefings, called the Pentagon

to give heads-up?that some of his comments on Fox ay not all be

friendly,?Pentagon records show. Mr. Rumsfeld senior aides quickly

arranged a private briefing for him, yet when he told Bill O’Reilly that the United States was 搉ot on a good glide path right now?in Iraq, the repercussions were swift.

Mr. Cowan said he was recipitously fired from the analysts group?
for this appearance. The Pentagon, he wrote in an e-mail message,

imply didn like the fact that I wasn carrying their water.?The

next day James T. Conway, then director of operations for the Joint

Chiefs, presided over another conference call with analysts. He urged

them, a transcript shows, not to let the marines?deaths further erode

support for the war.

he strategic target remains our population,?General Conway said.

e can lose people day in and day out, but they抮e never going to beat

our military. What they can and will do if they can is strip away our

support. And you guys can help us not let that happen.?/p>

揋eneral, I just made that point on the air,?an analyst replied.

揕et work it together, guys,?General Conway urged.

The Generals?Revolt

The full dimensions of this mutual embrace were perhaps never

clearer than in April 2006, after several of Mr. Rumsfeld former

generals ?none of them network military analysts ?went public with

devastating critiques of his wartime performance. Some called for his

resignation.

On Friday, April 14, with what came to be called the 揋enerals?
Revolt?dominating headlines, Mr. Rumsfeld instructed aides to summon

military analysts to a meeting with him early the next week, records

show. When an aide urged a short delay to 揼ive our big guys on the

West Coast a little more time to buy a ticket and get here,?Mr.

Rumsfeld office insisted that he boss?wanted the meeting fast 揻or

impact on the current story.?

That same day, Pentagon officials helped two Fox analysts, General

McInerney and General Vallely, write an opinion article for The Wall

Street Journal defending Mr. Rumsfeld.

揝tarting to write it now,?General Vallely wrote to the Pentagon

that afternoon. 揂ny input for the article,?he added a little later,

ill be much appreciated.?Mr. Rumsfeld office quickly forwarded

talking points and statistics to rebut the notion of a spreading revolt.

揤allely is going to use the numbers,?a Pentagon official reported that afternoon.

The standard secrecy notwithstanding, plans for this session

leaked, producing a front-page story in The Times that Sunday. In

damage-control mode, Pentagon officials scrambled to present the

meeting as routine and directed that communications with analysts be

kept 搗ery formal,?records show. his is very, very sensitive now,?a

Pentagon official warned subordinates.

On Tuesday, April 18, some 17 analysts assembled at the Pentagon

with Mr. Rumsfeld and General Pace, then the chairman of the Joint

Chiefs.

A transcript of that session, never before disclosed, shows a

shared determination to marginalize war critics and revive public

support for the war.

揑抦 an old intel guy,?said one analyst. (The transcript omits

speakers?names.) 揂nd I can sum all of this up, unfortunately, with

one word. That is Psyops. Now most people may hear that and they think,

慜h my God, they抮e trying to brainwash.?nbsp;?

hat are you, some kind of a nut??Mr. Rumsfeld cut in, drawing laughter. 揧ou don believe in the Constitution??/p>

There was little discussion about the actual criticism pouring

forth from Mr. Rumsfeld former generals. Analysts argued that

opposition to the war was rooted in perceptions fed by the news media,

not reality. The administration overall war strategy, they counseled,

was 揵rilliant?and 搗ery successful.?/p>

揊rankly,?one participant said, 揻rom a military point of view,

the penalty, 2,400 brave Americans whom we lost, 3,000 in an hour and

15 minutes, is relative.?/p>

An analyst said at another point: his is a wider war. And whether

we have democracy in Iraq or not, it doesn mean a tinker damn if we

end up with the result we want, which is a regime over there that not

a threat to us.?/p>

揧eah,?Mr. Rumsfeld said, taking notes.

But winning or not, they bluntly warned, the administration was in

grave political danger so long as most Americans viewed Iraq as a lost

cause. 揂merica hates a loser,?one analyst said.

Much of the session was devoted to ways that Mr. Rumsfeld could

reverse the olitical tide.?One analyst urged Mr. Rumsfeld to 搄ust

crush these people,?and assured him that ost of the gentlemen at the

table?would enthusiastically support him if he did.

揧ou are the leader,?the analyst told Mr. Rumsfeld. 揧ou are our guy.?

At another point, an analyst made a suggestion: