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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: lurqer who wrote (12871)2/12/2003 9:55:01 AM
From: stockman_scott  Respond to of 89467
 
Venture Capital Fund Raising Hits Low

By MICHAEL LIEDTKE
The Associated Press
Tuesday, February 11, 2003; 4:04 AM

Still hurting from the dot-com bust, shellshocked venture capitalists in 2002 curtailed their fund raising for future investments to a 21-year low, according to a report.

While 108 venture capital funds raised a total of $6.9 billion during 2002, another 26 funds refunded $5 billion to investors, according to data compiled by Thomson Venture Economics for the National Venture Capital Association.

The net fund-raising total of $1.9 billion represented the smallest inflow of venture capital since $1.6 billion flowed into the industry in 1981.

The $1.9 billion that trickled into the venture capital industry last year represented a 95 percent drop from the $40.7 billion raised in 2001.

Monday's figures provided another sobering reminder of how far venture capitalists have fallen in just a few years.

As investors hungrily poured money into Internet startups promising to change the world, venture capitalists feasted on huge returns and busily set the table for even more riches.

In 2000, venture capitalists raised $106.8 billion from their limited partners, consisting primarily of institutional investors such as pension funds and university endowments.

The high-tech bust of the past 2 1/2 years has cast a pall over a venture capital industry trying to cope with an unprecedented streak of losses.

"We are really at a standstill," said Martin Pichinson, chief executive for Sherwood Partners, a firm that helps venture capitalists save struggling startups. "I don't think you are going to see much money coming into the industry for three or four years."

With such dim prospects, venture capitalists have had little reason to raise money, particularly since the industry is sitting on an estimated $80 billion in funds left over from the boom days.

Meanwhile, wary institutional investors are less inclined to invest in risky venture capital funds. In some cases, investors are demanding refunds, prompting the venture capital industry to return about 73 cents for every dollar raised in 2002.

The refunds continued in the fourth quarter, according to Monday's report. Venture capitalists returned more than $1 billion during the three months ended Dec. 31, reducing the net total raised during the fourth quarter to $215 million, the study found.

In some instances, venture capitalists are making refunds because their firms have shrunk and they no longer have the resources to manage as much money, said National Venture Capital Association vice president Jeanne Metzger.

With so many of their previous startups still struggling, venture capitalists also are spending more time trying to salvage their previous investments.

By some estimates, more than 10,000 startups launched during the dot-com bubble are still in business. Most of those will fail during the next few years as the money runs out, Pichinson predicted. "We haven't even seen the devil's eye yet."



To: lurqer who wrote (12871)2/12/2003 10:13:35 AM
From: stockman_scott  Respond to of 89467
 
Politics drove decision to raise alert level

By CHB Staff and Wire Reports

Feb 10, 2003, 22:08

Friday’s elevation of the terrorist threat level from yellow (moderate) to orange (high) ignited a heated debate within America’s intelligence community with some career professionals complaining the Bush administration is playing politics with the nation’s security.

Highly-placed sources within both the Federal Bureau of Investigation and the Central Intelligence Agency tell Capitol Hill Blue that while “chatter” has increased in recent days, they have no hard evidence a new attack is forthcoming from Osama bin Laden’s al Qaeda terrorist network or any of the dozens of other terrorist groups currently monitored.

“We have lots of raw data, much of it conflicting,” says one FBI agent. “Nothing is conclusive, nothing contains the level of substantiation we like to see in these cases.”

Some senior intelligence professionals recommended against raising the threat level without more specific information while others, fearing getting burned by another 9-11 level surprise, went along with the threat elevation.

“In the end, it was a political decision as much as anything else,” a White House source admitted Monday evening. “Better to elevate the threat level and have nothing happen than say nothing and get hit by another attack.”

Yet some White House planners fear the administration may lose credibility in the public’s eyes if nothing happens.

“We need to have an attack stopped before it takes place,” says the White House aide. “That would be the best scenario.”

White House political operatives, however, have drafted several sets of talking points to explain the elevated threat level, including a set in case disaster strikes and a different set if nothing happens.

Homeland Security Director Tom Ridge is hitting the talk and news show circuit to sell the administration position. As the newest member of the administration’s anti-terror team, Ridge is also the designated “fall guy” if nothing happens.

Explaining Friday's elevation of the national terror-alert status, Ridge told CBS's The Early Show that "one of the reasons that we raised it is that because we believe the threat has substantially increased in the last couple of weeks."

On the five-step alert scale, red is the highest, but no such terrorist warning level has yet been issued.

Ridge and his deputies also advised various industries and local governments how to increase security in response to the threat.

On Friday, Homeland Security officials recommended that hotels inspect all cars, that malls and offices prohibit delivery trucks from entering underground parking garages, and that office tower managers control access at the door and monitor their heating and air conditioning ducts for breaches.

Terrorists could use chemical or biological weapons in ductwork to attack an entire building, officials said.

Monday, federal officials recommended that Americans should take basic disaster-preparation steps such as maintaining a three-day stockpile of food and water. They also recommended obtaining duct tape and plastic sheeting to seal a house in the event of a chemical or biological attack or disaster.

Homeland Security spokesman Gordon Johndroe said the recommendations for the household are not in response to the orange alert but instead just proper planning for disasters, including terrorist attacks.

Asked Monday what U.S. citizens are expected to do in response to such warnings, Ridge said, "When we raise the level of alert, when we raise the national consciousness about the level of attack, that in itself, is a deterrence. ... Just being more ready, being more prepared, is a deterrent in and of itself."

Ridge was questioned about the seriousness of the warning, which remains in effect.

"In discussing this matter with people that have been around the White House longer than I have, it is universally agreed that this is the most significant set of warnings that we've had since before Sept. 11," he replied.

Asked about critics' accusations that the alert might have been tied to President Bush's warning to Saddam Hussein that time is running out on Baghdad avoiding war, Ridge said, "Well, I regret that interpretation."

Appearing on NBC's Today program, Ridge said the warning was based on "the accumulation of credible corroborated sources, none of which are connected to the possibility of military involvement with Iraq."

Ridge, however, said it was not possible to be more specific about possible targets.

"We get general information and specific information, but none of the specific information talks about time, place or methods or means ... We don't get the specificity that we would all like to have in order to prepare," he said.

Political scientist George Harleigh says the administration is playing a “high stakes political spin game” with the threat level.

“If you keep warning that something will happen and nothing happens, the American public will stop listening to the alerts,” Harleigh said. “When that happens, the country becomes most vulnerable.”



To: lurqer who wrote (12871)2/12/2003 11:50:50 AM
From: stockman_scott  Respond to of 89467
 
MI-6 and CIA oppose war on Iraq

By Paul Lashmar and Raymond Whitaker

LONDON: Tony Blair and George Bush are encountering an unexpected obstacle in their campaign for war against Iraq – their own intelligence agencies.

Britain and America’s spies believe that they are being politicised: that the intelligence they provide is being selectively applied to lead to the opposite conclusion from the one they have drawn, which is that Iraq is much less of a threat than their political masters claim. Worse, when the intelligence agencies fail to do the job, the politicians will not stop at plagiarism to make their case, even “tweaking” the plagiarised material to ensure a better fit.

“You cannot just cherry-pick evidence that suits your case and ignore the rest. It is a cardinal rule of intelligence,” said one aggrieved officer. “Yet that is what the PM is doing.” Not since Harold Wilson has a Prime Minister been so unpopular with his top spies.

The mounting tension is mirrored in Washington. “We’ve gone from a zero position, where presidents refused to cite detailed intel as a source, to the point now where partisan material is being officially attributed to these agencies,” said one US intelligence source.

Mr Blair is facing an unprecedented, if covert, rebellion by his top spies, who last week used the politicians’ own weapon – the strategic leak – against him. The BBC received a Defence Intelligence Staff (DIS) document which showed that British intelligence believes there are no current links between the Iraqi regime and the al-Qa’ida network. The classified document, written last month, said there had been contact between the two in the past, but it assessed that any fledgling relationship foundered due to mistrust and incompatible ideologies.

That conclusion contradicted one of the main charges laid against Saddam Hussein by the United States and Britain, most notably in Wednesday’s speech by the Secretary of State, Colin Powell, to the UN Security Council – that he has cultivated contacts with the group blamed for the 11 September attacks.

Such a leak of up-to-date and sensitive material reveals the depth of anger within Britain’s spy community over the misuse of intelligence by Downing Street. “A DIS document like this is highly secret. Whoever leaked it must have been quite senior and had unofficial approval from within the highest levels of British intelligence,” said one insider. In response the Foreign Secretary, Jack Straw, tried to play down the importance of the DIS, which he repeatedly called the Defence Intelligence Services.

No sooner had that embarrassment passed, however, than it emerged that large chunks of the Government’s latest dossier on Iraq, which claimed to draw on “intelligence material”, were taken from published academic articles, some of them several years old. It was this recycled material that Mr Powell held up in front of a worldwide television audience, saying: “I would call my colleagues’ attention to the fine paper that the United Kingdom distributed ... which describes in exquisite detail Iraqi deception activities.”

Now Glen Rangwala, the Cambridge University analyst who blew the whistle on the original plagiarism, has pointed out the deception did not end there. He showed that the young Downing Street team, led by Alison Blackshaw, Alastair Campbell’s personal assistant, which put the document together had “hardened” the language in several places (see box).

How selectively the work of the intelligence agencies is being used on both sides of the Atlantic is shown by a revealing clash between Senator Bob Graham and the Bush administration’s top intelligence advisers. Mr Graham, a Democrat, is chair of the Senate Intelligence Committee. Last July, baffled by the apparently contradictory assessments on Iraq by America’s 13 different intelligence agencies, he asked for a report to be drawn up by the CIA that estimated the likelihood of Saddam Hussein using weapons of mass destruction.

The CIA procrastinated, but finally produced a report after Senator Graham threatened to accuse them of obstruction. The conclusions were so significant that he immediately asked for it to be declassified. The CIA concluded that the likelihood of Saddam Hussein using such weapons was “very low” for the “foreseeable future”. The only circumstances in which Iraq would be more likely to use chemical weapons or encourage terrorist attacks would be if it was attacked. After more arguments the CIA partly declassified the report. Senator Graham noted that the parts released were those that made the case for war with Iraq. Those that did not were withheld. He appealed, and the extra material was eventually released. Yet the report has largely been ignored by the US media.

Last week Colin Powell made much of the presence in Iraq of Abu Musab al-Zarqawi, the man he identified as running an al-Qa’ida network from Baghdad. He drew on information from al-Zarqawi’s captured deputy, but made no mention of another explosive allegation from the same detainee: that Osama bin Laden’s organisation received passports and $1m (£600,000) in cash from a member of the royal family in Qatar. It is well known in US intelligence circles that the CIA director, George Tenet, is angry with the Qatari government’s failure to take action. But the Gulf state would be the main US air operations base in any war on Iraq, and Washington does not want to air the inconvenient facts in public.

The doctored dossier

A British government dossier, “Iraq – its infrastructure of concealment, deception and intimidation”, was largely copied – complete with poor punctuation and grammar – from an article in last September’s Middle East Review of International Affairs and two articles in Jane’s Intelligence Review.

But the Downing Street compilers also rounded up the numbers and inserted stronger language than in the original. In a section on a movement called Fedayeen Saddam, members are, according to the original, “recruited from regions loyal to Saddam”. The Government dossier says they are “press-ganged from regions known to be loyal to Saddam”.

On Fedayeen Saddam’s total membership, the original says 18,000 to 40,000. The dossier says 30,000 to 40,000.

A similar bumping-up of figures occurs with the description of the Directorate of Military Intelligence. Included among the duties of the secret police, the Mukhabarat, says the original, are “monitoring foreign embassies in Iraq” and “aiding opposition groups in hostile regimes”. The dossier says the duties include “spying on foreign embassies in Iraq” and “supporting terrorist organisations in hostile regimes”.

The plagiarists cannot even copy correctly, confusing two organisations called General Security and Military Security. This means that the dossier says Military Security was created in 1992, then refers to it moving to new headquarters in 1990. The head of Military Security in 1997 is named as Taha al-Ahbabi, when he was actually in charge of General Security. —Independent

dailytimes.com.pk



To: lurqer who wrote (12871)2/12/2003 6:13:11 PM
From: lurqer  Read Replies (5) | Respond to of 89467
 
Worth a read.

investorshub.com

On several points I disagree with Wood. Some are just semantic. As I pointed out in Drei D,

Message 18554768

there are three significant market inflection points in the generational cycle - Delusion, Despair and Disgust. For a variety of reasons, I include the period from Disgust to Delusion as the Secular Bull period, and the period from Delusion to Disgust as the Secular Bear period. Wood, for his own reasons, takes the period from Despair to Disgust, and places that in the Secular Bull period. While I believe there are good reasons for not dividing market history his way, in the final analysis it's a semantic argument a not a big deal. He, also fails to correct his historical data for the effects of inflation. This is more serious. For example his '42 date for the end of the Secular Bear that began in '29 is in error, because of his failure to use inflation adjusted data.

Nevertheless, his attempt to analyze the generational cycles in terms of the shorter four year cycle is both valiant and fruitful. I find it interesting to compare his work with my own. His best guess of when the P/E compression low will occur Ranges from ’06 to ’10, with ’08 being a good possibility. My own demographic work says ‘07/’08 is the likely Despair point, because of reduced Boomer spending. For a value of the Despair point, Wood uses the H&S on the S&P to get an estimated S&P 315, which he then equates to a Dow value of 3000. Using the channels of the Two Century Dow chart, I get a value of DOW 2900 in ’08 – quit comparable. I should mention that my value is an inflation adjusted value, and I expect inflation to be rampant by ’08.

His expectations for ’03 are particularly interesting. We both believe that Oct ’02 was not an IT (one year) low. We both believe that there will be two lows in ’03. We both believe that ’03 will see the beginning of an IT Cyclical Bull. Wood believes the second low in the fall of ’03 will be the lower low. Currently, I believe the earlier ’03 low will be lower, but I’m in no way wedded to the idea. It is interesting that from a very differing analysis, we reach such similar conclusions.

Of course that doesn’t mean the conclusions are accurate.

lurqer