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    Friday, April 17, 2009

    Reuters - OpenX launches new ad server for small websites

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    OpenX launches new ad server for small websites

    Thursday, Apr 16, 2009 1:45PM UTC

    By Georgina Prodhan

    LONDON (Reuters) - Technology start-up OpenX launched an online ad marketplace for smaller Web publishers on Thursday designed to be an alternative to offerings from Google, Microsoft, Yahoo and AOL.

    OpenX Market aims to make it easier for advertisers to find smaller Web publishers as the number of sites run by individuals and small organizations with niche audiences balloons, and to help those small publishers maximize their advertising revenues.

    OpenX, backed by Index Ventures and Accel Partners, runs more than 300 billion page impressions a month through its software from a network of about 150,000 websites, putting it in the league of the likes of Google's DoubleClick in terms of volume.

    Google bought DoubleClick for $3.1 billion in 2007, part of a multi-billion-dollar wave of ad-server company acquisitions that included Microsoft buying aQuantive, AOL buying Adtech and WPP buying 24/7 Real Media.

    "Now the space is very concentrated, which makes it really good for us to be an independent option in the market," OpenX's Chief Executive Tim Cadogan told Reuters.

    Cadogan, an industry veteran who formerly ran Yahoo's search business, said OpenX's open-source software that publishers can easily customize was another attraction.

    OpenX's new platform stages real-time auctions for online advertising spots, allowing publishers to take advantage of higher bids until the last second. It is likely to appeal most to small publishers, but scalable for large enterprises too.

    The Internet is the only medium expected to attract higher advertising revenues this year -- although growth is slowing -- as most companies slash discretionary spending on activities such as marketing to cope with the economic downturn.

    But mechanisms to link advertisers with online properties are still developing, and made more difficult by an explosion in the number of websites in existence.

    AOL, for example, is embarking on a strategy of creating a plethora of niche websites through automated methods on which to place ads, partly through its own ad platform. It has called this "leaning into the fragmentation of the Web."

    Cadogan says: "Synthetic creations can be pretty good, but there's something about that organic trend also of consumers creating sites about topics they're passionate about that creates real value."

    OpenX, formerly known by a succession of other names including Openads, has developed its ad server through the open-source developer community over nine years, and has raised $20.5 million in two rounds of funding so far.

    Cadogan said the company had not received any takeover approaches since he became CEO a year ago.

    (Editing by David Cowell)

    Reuters - Phishers get more wily as cybercrime grows

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    Phishers get more wily as cybercrime grows

    Friday, Apr 17, 2009 9:46AM UTC

    By Diane Bartz

    WASHINGTON (Reuters) - Phishing scams have grown up from the unsophisticated swindles of the past in which fake Nigerian princes e-mailed victims, who would get a big windfall if they just provide their bank account number.

    Even as authorities try to stamp out that con and other e-mail and online scams, scammers are getting more wily and finding new loopholes to exploit.

    The vast majority of e-mail is spam and an unknown percentage of that is meant to defraud. The scale of electronic fraud means that that the criminals can make huge profits even if only a small percentage of people are duped.

    Phishing commonly refers to hoax e-mails purportedly from banks or other trustworthy sources that seek to trick recipients into revealing bank or credit card account numbers and passwords.

    The U.S. government scored a big victory in November when the web hosting company McColo Corp. was taken offline. Estimates vary, but the Washington Post said that 75 percent of spam worldwide had been sent through that single company.

    But the spam e-mails offering celebrity diets, cheap printer ink, erased credit card debt and amazing orgasms quickly found a new way to inboxes, according to Google's security subsidiary Postini.

    Now spammers use a variety of computers to send out spam e-mails to obscure their origins, meaning that a dramatic McColo-style takedown will be harder to reproduce, said Adam Swidler, product marketing manager for Google's Postini.

    And they've largely abandoned scams that are easy to see through -- like the Nigerian prince -- in favor of more sophisticated "location-based spam," which directs the victim to a Web site discussing a local disaster or similar issue. If they click on the offered video, the Web site downloads a virus to the user's computer, Google said in a blog on security.

    Tim Cranton, a Microsoft cybersecurity expert, said there was no way to know how much money is stolen. "We don't have a way to estimate numbers because there are so many victims that you're not aware of," he said.

    WHAT IS 'SMISHING'?

    New technology means new ways to steal. One of the latest is "smishing," which is nothing more than a phishing fraud sent via SMS text messaging.

    E-con artists are getting more sophisticated in approaching potential victims. One tactic has been to write spam that purports to come from a trusted source, like Paypal.

    When Paypal, which is owned by eBay, learned that spammers were using its name, they put a digital signature on their e-mails and asked providers like Yahoo and Google to block any e-mail purporting to come from them which did not have that signature.

    "We know how many they throw away and it's approximately speaking about 10 million a month," said Michael Barrett, Paypal's chief information security officer. "If the consumer never sees the e-mail in the first place then it's hard for them to get victimized."

    "Phishing was not just impacting consumers, in terms of general loss, it was impacting their view of the safety of the Internet and that it was indirectly damaging our brand," added Barrett.

    Security experts say they are seeing more and more shifts from outright fraud, where the victim will hand over their money, to the use of malware, basically malicious software which, among other things, collects passwords and credit card numbers for thieves.

    "Those will then be sold on the underground market," said David Marcus, a threat research expert at McAfee computer security firm.

    The person purchasing the passwords and card numbers will use that information to make purchases, get cash or create fake identities.

    The Federal Bureau of Investigation, working with police in the United Kingdom, Turkey and Germany, shut down one such online forum called Dark Market in October 2008 which, at its peak, had more than 2,500 registered members, according an FBI press release issued at the time.

    But experts agreed that they didn't expect the problem to go away anytime soon, and that more people out of work could well mean more people like to fall for scams.

    Marcus said many of the scams were nothing more than the digital equivalent of confidence tricks, although on a massive scale that can net some scammers more than $100,000 a month.

    "These things only have to be 2 percent successful," he said. "Those campaigns are sent out to tens of millions of people at the same time.

    (Editing by Cynthia Osterman)

    Portfolio Mobile - Last Bytes: Google Slows, YouTube Streams, Oprah Twitters

    Last Bytes: Google Slows, YouTube Streams, Oprah Twitters





    Google reported better-than-expected profit during the first quarter but the slump in online advertising has dramatically slowed its revenue growth. It had to happen eventually, right? [Wall Street Journal]

    Not to be outdone by its parent company this afternoon, YouTube announced a deal with major studios to stream full-length movies and television shows for free. [AP]

    As if it wasn't ridiculously popular already, Twitter now has the endorsement of none other than Oprah Winfrey. [Bits Blog]

    Now you can tweet while you work without the boss finding out. Spreadtweet puts your Twitter account on what looks like an Excel spreadsheet. Brilliant! [Business Insider]



    EBay would like potential Skype suitors to know that it would still be open to offers even though it's announced plans for an IPO next year. [PaidConent]Related Links
    Twitter + Google = Not Likely
    YouTube, Finally Adding Up to Something?
    Google Vision

    Presented By:Microsoft Visual Studio Team System

    Visual Studio Team System helps teams of every size collaborate better for faster app development.
    Get a Free Trial at microsoft.com/defyallchallenges/team 
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    (c) 2007 Portfolio. Powered by mLogic Media, Crisp Wireless, Inc.

    Reuters - Pirate Bay fileshare four jailed for a year

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    Pirate Bay fileshare four jailed for a year

    Friday, Apr 17, 2009 1:20PM UTC

    By Veronica Ek

    STOCKHOLM (Reuters) - Four men linked to The Pirate Bay, one of the world's biggest free file-sharing websites, were each jailed for a year on Friday for breaching copyright and ordered to pay 30 million Swedish crowns ($3.58 million) in compensation.

    Analysts said the guilty verdict in the closely-watched test case could help music and film companies recoup millions of dollars in lost revenues but they doubted it would stem the tide of illegal downloading.

    International trade body IFPI reported earlier this year that about 95 percent of music downloaded in 2008 was illegal.

    On its website, The Pirate Bay scorned the ruling, calling it a "crazy verdict."

    "It was lol (laugh out loud) to read and hear," the message read. "But as in all good movies, the heroes lose in the beginning but have an epic victory in the end anyhow. That's the only thing Hollywood has ever taught us."

    IFPI Svenska Gruppen, an organization representing the Swedish recording industry, said the verdict was "not only positive for the music and film business, but also for all those producers and entrepreneurs trying to create working and legal online services based on real respect for copyright."

    The men linked to The Pirate Bay -- Peter Sunde, Gottfrid Svartholm Warg, Fredrik Neij and Carl Lundstrom -- were charged early last year by a Swedish prosecutor with conspiracy to break copyright law and related offences. They denied the charges.

    Companies including Warner Bros., MGM, Columbia Pictures, 20th Century Fox Films, Sony BMG, Universal and EMI also sought damages of more than 100 million crowns ($12 million) to cover lost revenues.

    The Stockholm district court said in a statement the four were found guilty of breaching copyright laws and each sentenced to a year in prison.

    APPEAL

    Lundstrom's attorney Per Samuelson told journalists he was shocked by the verdict and the severity of the sentence.

    "That's outrageous, in my point of view. Of course we will appeal," he said. "This is the first word, not the last. The last word will be ours."

    The group that controls The Pirate Bay, launched in 2003, says that no copyrighted material is stored on its servers and no exchange of files actually takes place there so it cannot be held responsible for what material is being exchanged.

    The prosecution said that by financing, programing and administering the site, the four men promoted the infringement of property rights by the site's users.

    Industry experts were not convinced the verdict would have a lasting effect.

    "Every time you get rid of one, another bigger one pops up. Napster went, and then up came a whole host of others ... The problem of file-sharing just keeps growing year on year, and it's increasingly difficult for the industry to do anything about it," said music analyst Mark Mulligan of research firm Forrester.

    Dan Cryan, senior analyst at media research firm Screen Digest, said the lack of international copyright law meant websites dedicated to illegal downloads could simply move on to a new country if legislation tightened where they operated.

    "Pirate Bay was brilliant at self-publicity, but the reality is there are lots of other torrent-tracker sites," he said.

    "The closing of the one that shouts the loudest won't make any difference."

    (Additional reporting by Simon Johnson in Stockholm and Georgina Prodhan in London; Writing by Niklas Pollard, editing by David Cowell)

    Thursday, April 16, 2009

    CNN - Gang triggerman honored with 'Scarface' hat

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    Gang triggerman honored with 'Scarface' hat


    A baseball cap dangles from a cement cross. The slogan on the hat reads "power, money, respect." On the brim there's the logo of the classic gangster movie "Scarface."

    Etched on the gravestone, the words: "Jesus Guadalupe Parra. 12 December 1986 to 25 August 2008."

    "Lupito," as friends and family knew him, went down in a hail of bullets before he reached 22. Authorities said he died alongside three others in a gunfight with a rival drug gang high in the Sierra Madre mountain range that is the backbone of Mexico's Pacific coast state of Sinaloa.

    A printed banner draped over his tomb offers a deeper insight. It shows a photo of him alongside a marijuana plantation and an AK-47 assault rifle fitted with a 100-round ammunition drum.

    The drab grave of this cartel triggerman, at the Jardines de Humaya cemetery in state capital Culiacan, stands in stark contrast to the mausoleums of dead capos, or drug bosses. Those are elaborate two- and three-story constructions, some perhaps 25 feet high, made of bullet-proof glass, Italian marble and spiral iron staircases.

    A bricklayer at work in the cemetery told me the fanciest cost between $75,000 and $150,000. He said grateful drug barons often pay for loyal hitmen to be buried here, the city's toniest graveyard. Like so many other people we've met over the last few weeks, he declined to give his name or speak on camera.

    "I can't. El patron [the boss] would kill me," he said.

    Days later I track down Lupito's cousin, Giovanni Garcia, on the phone. He's an undertaker and by coincidence he took the call that Lupito, had been shot.

    "My cousin loved that way of life," Garcia said briefly before turning down a recorded interview. "We can't talk. You must understand how things are around here these days. It's not a good time."

    That Sunday, I linger at Lupito's graveside. Three young men show up. They look about the same age as the dead gunman, the same cropped-hair, one heavily scarred around his eye.

    In the breeze they struggle to light a dozen foot-high candles. I introduce myself. A few grunts later and I can see this conversation is going nowhere fast.

    "We couldn't make it to the burial. This is the first time we've come to pay our respects," one of them explained. He never offered his name.

    Drug rivalries have been known to spill over at funerals so many mourners opt to stay away leaving only the closest relatives to bury their dead quietly and without public complaints.

    I stick around hoping to meet more talkative mourners. My wait is cut short. A fourth man appears between the tombstones some 20 yards away, apparently having seen me. As he talks into a phone I hear him say: "Hey, take your chance. Go grab f**king baldy."

    I look around. No other bald men in sight -- just me. Time to leave.

    At Jardines de Humaya and across town at the 21 de Marzo cemetery, rows of recently dug graves are filled with the young foot soldiers of Mexico's drug war.

    A crosscheck of their names in the obituary columns of the local newspaper reveal tales of men in their late teens and early 20s, gunned down in firefights, shot in cold blood on their doorsteps or killed in prison clashes.

    Jesus Gaston earns around $40 for every three graves he digs. But he can see the lure of easy money in the drug trade is little more than a mirage.

    "The easy money lasts for just a few days because it's all about time before they kill you too. You kill somebody and somebody will come back for you," he said. "Some how, some way they will find you."

    When the reality boils down to kill or be killed, it's unsurprising the hitmen and the narco-traffickers want to improve their odds of survival.

    Most days, you can hear a brass band or a cowboy trio thumping out tunes in a small building on a Culiacan side street. It's a shrine to a highway robber called Jesus Malverde. In the century since he died he's become known as the patron saint of the drug trade.

    Men in cowboy hats and ostrich-skin boots duck in and out of view. Some try to conceal their faces behind a musician's trombone or tuba.

    The day I dropped in, one man was paying around $600 for a band to play for three hours. Off camera he told me it was his way of repaying a favor to Malverde. I asked him about that favor and he said he was celebrating a bumper harvest -- of beans and corn.

    He said he was shy about appearing on camera.

    I told another man, who gave his name as "Rosario," that he looked like a stereotypical narco. He had the ostrich-skin cowboy boots and shaved head. Besides that he seemed to be spending a small fortune, by Mexican standards, on live music, foot-high candles and fresh flowers to place at Malverde's altar.

    Rosario laughed off my suggestion and laughed again in my face as he told me he was paying tribute to Malverde after a good few months working as a carpet fitter in Arizona.

    It was refreshing to find a straight-talking trombone player at the shrine, Jaime Laveaga. He makes his living playing music and he's clear about who his main clients are.

    "It sounds bad to say it but Culiacan is a city with a big drug mafia. They like brass band music and they love to celebrate -- 15th birthdays, weddings, family birthdays. They even celebrate their dogs' birthdays," he explained.

    Needless to say, the Catholic Church takes a dim view of those who worship Malverde and another growing cult known as the "Holy Death," which critics say is also popular among thieves and narcos.

    "People are looking for easy solutions where they don't have to make any sacrifices. If they don't find any support for their killings or their drug trafficking from the Catholic Church then they look for other options," Father Esteban Robles, spokesman for the Culiacan diocese told me. "They're looking for something that will justify their actions."

    Tomorrow, Penhaul examines how the gangs dispose of their victims and what officials are doing to stem the violence.

    Wednesday, April 15, 2009

    CNN - Obama heads to Mexico amid escalating drug violence

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    Obama heads to Mexico amid escalating drug violence


    President Obama travels to Mexico on Thursday as the United States' neighbor to the south continues to wrestle with increasingly deadly drug wars.

    Obama recently announced a crackdown on border violence and on the smuggling of cash and weapons into Mexico -- a step that could mark an end to a blame game over where responsibility for the violence lies.

    On Wednesday, White House Press Secretary Robert Gibbs said the president recently designated three Mexican organizations, which he says are involved in drug trafficking, to face hefty financial sanctions under the Foreign Narcotics Kingpin Designation Act. The law, signed by President Bill Clinton in December 1999, authoritizes the president to impose penalties against foreign drug kingpins -- and organizations that do business with them, according to the Treasury Department.

    "Today's action underscores the U.S. government's support for [Mexican] President [Felipe] Calderon's courageous attack on the cartels and our attempt to attack the financial underpinnings of Mexico's cartels believed to generate billions of dollars annually," Gibbs said. "With today's actions the Department of the Treasury will be permitted over the months and years ahead to block or seize any assets, accounts or securities under U.S. jurisdiction of those belonging to these cartels or who act on their behalf."

    The president's action comes ahead of his trip to Mexico -- along with attending the Summit of the Americas in Trinidad and Tobago later this week -- where drug violence will undoubtedly be debated.

    It's traditional for the new U.S. president to go north and south early on. Obama traveled to Canada in February.

    Authorities on both sides of the border blame powerful drug cartels for escalating bloodshed. Analysts have said the bulk of the violence takes place along the U.S. border, particularly in Ciudad Juarez, Chihuahua and Tijuana -- as well as on Mexico's western coast.

    The Pentagon and the director of national intelligence have both warned recently of the national security threat that an unstable Mexico poses to the U.S. Congress also has addressed the violence, holding eight hearings since coming back into session two months ago.

    Former Mexican President Vicente Fox on Wednesday downplayed analysts' warnings, saying the worst-case scenario is "far, far, away."

    As for who is to blame for the surge in drug cartel violence, Fox refused to point fingers, saying both sides share responsibility -- Mexico, for its role as a producer and trans-shipment point for illegal drugs, the United States for its insatiable appetite.

    "We don't have to blame each other," said Fox this morning, "what we have to do is work together. Meet the challenge and solve the problem."

    During his administration, from 2000 to 2006, Fox launched a crackdown on the drug lords -- what he dubbed "the Mother of All Battles." The program put thousands of people in jail, but he was criticized for leaving a power vacuum among the cartels, which erupted into the violent turf wars that rage to this day.

    Mexico's ambassador to the United States, Arturo Sarukhan, said on CBS's "Face the Nation" Sunday that some of the sources of the violence are on the U.S. side of the border.

    "You need 'two to tango'. And as Mexico seeks to shut down the flow of drugs coming into the United States from Mexico, from South America, we need the support of the United States to shut down the flow of weapons and bulk cash," he said.

    Sarukhan called the Obama administration's willingness to accept co-responsibility "a very encouraging sign."

    "I think that the fact that the Obama administration is seized with the importance of this issue is a clear indication that they understand that, to defang the drug syndicates in Mexico, we have to eliminate two of their most powerful sources -- bulk cash from the United States into Mexico and illicit weapons."

    It's a point that Secretary of State Hillary Clinton agrees with.

    "Our insatiable demand for illegal drugs fuels the drug trade," she said on March 26."Our inability to prevent weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians. So, yes, I feel very strongly we have a co-responsibility."

    During her trip to Mexico, Clinton emphasized that the United States has already appropriated $700 million in aid to Mexico, and Congress wants to see how the administration is applying it before sending more.

    Sarukhan said Clinton's visit to Mexico in March -- along with other top administration officials -- has "started to push the ball in the right direction."

    But Sarukhan warns that the key issue right now is how the U.S. can help crack down on guns and cash flowing to the Mexican drug cartels.

    "We have seen a dramatic rise of assault weapons being seized in Mexico. There's a direct correlation between the expiration of the assault weapons ban and our seizures of assault weapons."

    Despite the violence, Mexican officials say the country is safe and that tourist areas -- such as Cancun and Acapulco -- have a large security presence.

    In a speech in mid-March, Calderon said 93 percent of the 6,500 deaths attributed to organized crime in 2008 occurred among the criminals. Most of the rest were law enforcement authorities, officials have said. Few civilians are killed, the president said.

    In that same speech, Calderon ridiculed those who say Mexico is unsafe.

    "It is absolutely false, absurd, that anyone indicate that Mexico does not have control over one single part of its national territory," he said. "I challenge anyone who says that to tell me what part of the country they want to go to and I will take that person there."

    Kathleen Kennedy Townsend, who serves on the board of the Brady Campaign to Prevent Gun Violence, said in a recent CNN.com commentary that the U.S. needs to examine gun control in order to tackle the violence in Mexico.

    "While the Mexican drug war has the media and Washington abuzz, there has been little mention of our role in supplying the terrorists: We need to realize that the Mexican drug cartels are arming themselves here because our gun laws have loopholes so large that criminals and gun traffickers can easily drive gun-laden trucks through them," wrote Townsend, a former lieutenant governor of Maryland and daughter of late Sen. Robert F. Kennedy. "This crisis is not happening because our border is loose," she wrote. "It is happening because our gun laws allow guns to be sold by unlicensed sellers without background checks required by the Brady Bill, military-style assault weapons to be freely sold and corrupt gun dealers to thrive." Read more of Townsend's analysis

    But in an opposing commentary on CNN.com, National Rifle Association President Wayne LaPierre argued that a crackdown on guns in the United States won't -- and should not -- be the answer.

    "Of course, everyone's rooting for Mexican President Felipe Calderon's government to crush the drug cartels' stranglehold. But our rights are not what's wrong," he wrote. "Nobody can substantiate claims that U.S. guns cross the border 'by the thousands' or 'account for 95% of weapons used by Mexican drug gangs.' Because it's not true." Read more of LaPierre's views

    Instead, LaPierre argues, the U.S. should simply "seal the border. Punish the guilty. And use existing gun and drug laws against violent drug syndicates here and in Mexico."

    "But leave American freedoms alone," he added.

    Reuters - Islamic firms seek bargains in the West

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    Islamic firms seek bargains in the West

    Wednesday, Apr 15, 2009 4:21PM UTC

    By Lin Noueihed and John Irish

    DUBAI (Reuters) - Sharia-compliant firms in the Gulf Arab region are eyeing bargains in Western markets hit by the global crisis but Islamic merger principles still need development, a partner at an international law firm said.

    Having covered Islamic finance for 15 years, Neil Miller, head of Islamic Finance at Norton Rose, relocated from London to Dubai a few weeks ago to work on developing sharia-compliant mergers and acquisitions, project finance and other deals.

    "A significant proportion of (regional business leaders) said they were looking to do an M&A deal sometime in 2009... There is quite a potential pipeline of work, how quickly that will actually materialize remains to be seen," Miller told a Reuters Islamic Banking and Finance Summit in Dubai.

    "I'm not going to call the bottom (of the market). I don't think anybody is going to call it... But one thing about clients in this part of the world is they know how to find a bargain."

    Miller said potential Islamic investors were likely to be seeking out bargains into the second or even the third quarter, ready to make purchases once global markets have settled.

    Gulf Arab sovereign wealth funds and other state-linked investment vehicles have said since the financial crisis worsened last year, that they saw potential investment opportunities emerging from the turmoil.

    Abu Dhabi's state-run International Petroleum Investment Company (IPIC) has made several purchases in recent months including a 32.5 percent stake in Spanish oil company Cepsa <CEP.MC> and a 9.1 percent holding in German carmaker Daimler <DAIGn.DE>.

    Asset-heavy sectors such as manufacturing naturally appeal to Islamic firms whose transactions must be linked to physical assets but Miller said clients from the region were interested in a number of sectors.

    "In London, the sectors clients are talking about there are renewables, not greenfield but established, pharmaceuticals, healthcare," he said.

    "They are interested in looking for businesses that are established in a niche, perhaps technology based, that they can acquire in the West. They'll also bring part of those businesses back to the region."

    Islam bans interest, investing in prohibited sectors such as gambling, pornography and alcohol and stipulates that risk and reward be shared among all those in the business venture.

    Demand from the world's 1.3 billion Muslims for investments that comply with their beliefs has soared, and assets compliant with Islamic law are estimated at $700 billion to $1 trillion.

    But the Islamic finance sector is still in its infancy. International industry standards are still in the process of being established and a legal framework for more sophisticated Islamic products and transactions is still emerging.

    "In sharia-compliant M&A it is extremely difficult to introduce the leverage, and if the market is honest with itself, there have been very few, if any, transactions that have managed to do the leverage in a satisfactory sharia-compliant way," he said.

    "My aim is to explore with the scholars and practitioners whether there are more acceptable ways of doing these things ... There hasn't been any diligent research into alternative methods.. It is going to be an interesting and challenging task to find more ways of doing this."

    (For summit blog: http://summitnotebook.reuters.com/)

    CNN - Hitmen's bloody reign all about logic, trafficker says

    Sent from bombastic4000@yahoo.com's mobile device from http://www.cnn.com.

    Hitmen's bloody reign all about logic, trafficker says


    There are no welcome signs on the approach to Camargo.

    It's a hardscrabble Mexican border town and home turf for "Los Zetas," a gang of hitmen and corrupt former special forces cops on the bankroll of the Gulf Cartel.

    Local journalists explained if we went there we'd be getting "tangled up in the hooves of the horse." They said Zeta gunmen recently smashed one reporter's fingers with a hammer as a warning to the media to stay away.

    The plaza was deserted -- for a few minutes at least. Then the throb of engines broke the Sunday morning peace. Scores of pickup trucks with heavily tinted windows began circling. Occasionally a window would crack open. We were clearly being watched.

    A black SUV pulled up alongside the soda stand. One of the occupants stepped out. First I saw the ostrich skin cowboy boots, then the highly polished 9 mm pistol strapped to his side. It was loaded with a longer-than-usual ammunition clip, custom-made to pack extra bullets. It was a brazen flaunting of Mexican law to carry a gun that way.

    No words. Not even a stare. But his message seemed unequivocal. Our visit to Camargo lasted just 20 minutes. Taking the strong hint, we immediately left town.

    Much as we wanted to explore the underbelly of the drug war raging in Mexico, it was clear the capos, or bosses, and their hired guns were in no mood to talk. Their business thrives best in the shadows. Our best chance of getting some insight was to track down a cast of peripheral characters who live in the gray areas, somewhere between the extremes of right and wrong.

    The hospitality was little better in nearby Miguel Aleman. Customers, even an argumentative drunk, fell silent as we ordered a beer in a dingy cantina. A couple of tired-looking prostitutes retreated to a far corner. They may have been down on their luck but they knew talking to outsiders wasn't worth the cost. Here the Zetas are well-known for enforcing their law of silence at gunpoint.

    Along this stretch of the border Los Zetas are kings. From here their bloody reach stretches far across Mexico and deep into Central America. They run immigrant smuggling, drug trafficking, prostitution rackets, video piracy and local politics.

    In the glitzy industrial city of Monterrey, we met a marijuana dealer smoking his own merchandise in the bathroom of a dance club.

    The man, whom we can't name for his safety, explained how he had been recruited at gunpoint two years earlier by the Zetas to be what they call a "landowner" (terrateniente in Spanish) -- in charge of cocaine distribution in a handful of neighborhoods.

    He said Zeta gunmen bundled him into a truck and with assault rifles aimed at his head they gave him three options -- pay them $100,000, begin working for them or die.

    Over the next few days, he says the same gunmen scared off or killed rival drug dealers, leaving him in charge of what he said was a $4,000-a-day business.

    It all ended, he said, when Mexican soldiers kicked down his door. He was never detained but his cover was blown. Local Zeta commanders thanked him for not ratting on them by giving him permission to retire from the business.

    But recently he's gone into business for himself selling $2 bags of pot. He realizes working independently of the Zetas may be fatal.

    "Maybe I'm stupid or something, but I don't know how to do anything else. If they catch me it's simple, they'll kill me. It's just not allowed to work freelance," he said.

    An old friend of mine in Monterrey knew the marijuana peddler well and vouched for his story. He never made good on his promise to give us a recorded account. He went on a 24-hour drug binge. When we caught up with again him he was smoking crack, sweating profusely and paranoid his former paymasters would exact revenge.

    Mexico's tit-for-tat vendettas look like uncontrolled chaos.

    Mob assassins are no longer content with efficient execution-style killings. Sinaloa cartel hitmen regularly place pig masks on the faces of their Juarez cartel victims. And in a grim seasonal touch, killers in Juarez decapitated a cop and placed a Father Christmas hat on his severed head.

    But in a sidewalk cafe in Guadalajara, "Jose" explains there is a clearly defined set of narco-rules that must be followed. A small-time Latin American cocaine trafficker I've known for years introduced me to Jose.

    Jose is old school. He tells me he's been in the cocaine trade since the early 1980s almost since it began, has worked internationally and done a stretch in prison

    "From the outside it might look like the cartels are just going around killing people. But on the inside there's a code of conduct, rules. You might not want to kill somebody but you have to because it's all about respect," he said. "This cannot work if there's no respect. Above all, the capos use logic to solve the problems."

    Jose added that he believed groups of corrupt officials and law enforcement officers were using the militarization of the border region not as a means to crush the drug cartels but as a way of forcing them to pay a bigger slice of the drug profits as bribes.

    "The authorities and the cartels use the rule of 10. By that I mean for every 10 kilos of cocaine we move, we have to give three to the authorities and keep seven for ourselves," he explained. "When times are bad the authorities may arrest somebody or grab an entire consignment and that's a way for forcing up their percentage take."

    Jose's assertion might seem like feverish conspiracy theory if it weren't for the growing list of Mexican officials, ranging from local cops and foot soldiers to generals and men at the highest levels of law enforcement, who've been busted for allegedly profiting from the drug trade.

    In November, Mexico's former drug czar was detained on suspicion that he may have accepted $450,000 a month in bribes from drug traffickers. He had been in charge of the attorney general's office that specializes in combatting organized crime.

    Tomorrow, Penhaul looks at the gang's dead triggermen and the lives they left behind.

    CNNMoney.com - Is Facebook losing its glow?

    Sent from bombastic4000@yahoo.com's mobile device from http://money.cnn.com.

    Is Facebook losing its glow?


    It's been a busy couple of months for social networking site Facebook. CEO Mark Zuckerberg appeared on the cover of FORTUNE (dressed in a tie, no less) and shared with us his plans to turn Facebook into the next digital communications platform. Soon thereafter he landed on Oprah Winfrey's couch to offer a tutorial on the site he'd initially built four years ago. In March the company launched a redesign that a vocal group of users roundly criticized. A few weeks after that chief financial officer Gideon Yu resigned unexpectedly, prompting bloggers to speculate that the company must be readying itself for a public offering.

    Meanwhile the site has kept adding users at a rapid clip (the redesign has not kept newcomers away), and analysts are starting to raise questions about just how much Facebook is spending on infrastructure to maintain the large site.

    It is hard to know much about Facebook's financial situation, because the company is privately held, and its management team has long been reluctant to address the issue of profits. Until now, executives and investors alike have said they place a priority on adding users and getting them to spend more time on the site. In my February interview with operating chief Sheryl Sandberg, she made it clear that the company was very focused on making money specifically so that it could continue to fund its user growth. And early board member Jim Breyer, who put in $1 million of his own money and $12.7 million from an Accel Partners fund, told me he wasn't demanding or even expecting immediate economic returns, saying profitability is "a key focus but there has never been a very specific time table."

    Indeed, the company has a deep well of capital to fund its business. It has raised more than $400 million in financing so far. Its largest investor is Microsoft, which paid $240 million in 2007 for a 1.6% stake in the company, giving Facebook a valuation of about $15 billion. Hong Kong billionaire Li Ka-Shing also invested $120 million at the same valuation. (The company's internal valuation as of last June was $3.7 billion.)

    But analysts posit that the business itself is becoming increasingly expensive to run. Facebook reports users are uploading more than 850 million photos each day and more than eight million videos. That's a lot of server space.

    (And Facebook may not be able to make a return on all those new users. Some 70% of the site's members come from overseas, and many of them hail from countries where there is no real potential for drumming up advertising dollars.)

    Will Facebook's 2009 revenues be enough to fund this growth? In 2008, the company brought in an estimated $280 milion. Most of that came directly from banner ads, and a substantial chunk was still coming from a deal with Microsoft in which the Internet behemoth sold traditional banner ads, which cost as little as $0.15 cents per one thousand ads shown to users.

    But the company has said that it is on track to beat revenue projections and make 70% more than it did in 2008. In the past year, Facebook has doubled its sales team to more than 130. And a quick scan of the source code for the site's ads would confirm Facebook's assertion that the Microsoft deal accounts for an ever smaller number of the ads the site serves up.

    Facebook is in fact seeing positive results with a new ad format it launched last fall, the engagement ad. A good case study comes from Vancouver, Wash.-based pizza restaurant Papa Murphy's, which ran an ad offering a free pizza to anyone who "became a fan" of the restaurant on the Facebook page it created. Users received notifications in their newsfeed and then were directed to the Papa Murphy's Web site to get their pie.

    More than 131,000 users became a fan of the national pizza franchise saw traffic to its site jump 253%. And within two weeks, 1,200 people had posted to the site's wall. As Facebook's user base grows, advertisers continue to experiment with these types of ads even as they're pulling back in other areas.

    Facebook's popularity seems not to have diminished: the company says more than half of its 200 million active users log on every day. And users spent 178 minutes on the site last month on average, according to Comscore, up 5 % from the previous month.

    With so much momentum, will Zuckerberg look to go publlic soon? When Yu left the company, the Wall Street Journal quoted Zuckerberg in an internal memo saying the company would look for a new chief financial officer "with public company experience who can help take us to the next stage in our growth." Indeed, Zuckerberg has always alluded to an IPO, turning down early acquisition offers from large Internet companies. But Zuckerberg isn't revealing his plan. Any speculation as to whether Yu's departure suggests Facebook is hastening its plans is just that: speculation.

    Tuesday, April 14, 2009

    Reuters - Somali pirates seize two more ships and attack third

    This article was sent to you from bombastic4000@yahoo.com, who uses Reuters Mobile Site to get news and information on the go. To access Reuters on your mobile phone, go to:
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    Somali pirates seize two more ships and attack third

    Tuesday, Apr 14, 2009 1:20PM UTC

    By Alison Bevege

    ON BOARD NRP CORTE-REAL (Reuters) - Somali pirates hijacked two more cargo vessels and opened fire on a third on Tuesday in attacks that showed their determination to continue striking shipping in the area's strategic waterways.

    The capture of the Greek-owned MV Irene E.M. and Togo-flagged MV Sea Horse were a clear sign the sea gangs have not been deterred by two raids in recent days in which U.S. and French special forces have killed five pirates.

    NATO Lieutenant Commander Alexandre Fernandes said the Portuguese warship NRP Corte-Real had received a pre-dawn distress call from the St. Vincent and the Grenadines-flagged Irene E.M. as it traveled through the Gulf of Aden.

    "There was only three minutes between the alarm and the hijack," Fernandes told Reuters aboard the warship. "They attacked at night, which was very unusual. They were using the moonlight as it's still quite bright."

    The Greek merchant marine ministry said the Irene E.M.'s 22 crew were Filipinos. The East African Seafarers' Assistance Programme, which tracks piracy, said they were all unharmed.

    The bulk carrier was sailing from Jordan to India. Its Piraeus-based owners were not immediately available for comment.

    Hours later, NATO officials on the NRP Corte-Real said a second ship, the nearly 5,000-tonne MV Sea Horse, had also been seized about 77 nautical miles off Somalia.

    They said it was hijacked by pirates on board three or four skiffs, but they had no other immediate details.

    Separately, NATO officials said, another gang fired automatic rifles and rocket-propelled grenades at the Liberian-flagged 21,887-tonne Safmarine Asia. They said it managed to escape and that there was no word of any casualties.

    Heavily armed gunmen from lawless Somalia have run amok through the busy Indian Ocean shipping lanes and strategic Gulf of Aden, capturing dozens of vessels, hundreds of hostages and making off with millions of dollars in ransoms.

    SPECIAL FORCES

    Until there is political stability onshore, experts warn, attacks on shipping will continue off its coast.

    "Piracy is far more complex than any naval patrol," said U.S. analyst J. Peter Pham, of Madison University. "It will require more than just the application of force to uproot piracy from the soil of Somalia."

    NATO officials said a Canadian warship had sent a helicopter to scout out what was happening on the Irene E.M.

    "There are hostages so now we will shadow and monitor the situation," Fernandes said.

    Foreign navies are patrolling the seas off Somalia. But the pirates have continued to evade capture, driving up insurance costs and defying the world's most powerful militaries.

    Snipers on a U.S. Navy destroyer freed an American ship captain on Sunday by killing three Somali pirates holding him hostage in a lifeboat, ending a five-day standoff. Two more pirates died on Friday when French commandos stormed a yacht that had been seized. A French hostage was also killed.

    Some fear the bloody assaults by Washington and Paris to free their hostages may raise the risk of future bloodshed. The pirates have vowed to take revenge on U.S. and French citizens.

    So far, the sea gangs have generally treated captives well in the hope of fetching big ransom payouts. Many poor and unemployed young Somalis see the gangs as a dazzling alternative to their hard lives, given the quick money to be made.

    Most of the groups are based in villages and small towns along Somalia's long coast like Eyl, Hobyo and Haradheere.

    Last year, the gunmen grabbed headlines with the world's largest sea hijack -- a Saudi Arabian supertanker carrying $100 million of crude oil -- and the seizure of a Ukrainian ship with a huge military cargo including 33 Soviet-era tanks.

    But out of the international limelight, they have been striking regularly for years. They still hold about 260 other hostages, including nearly 100 Filipinos, on 17 captured ships.

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