C Y A N M A G E N T A Y E L L O W B L A C K
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By Sara Murray
Welfare rolls, which wereslow to rise and actually fell inmany states early in the reces-sion, now are climbing acrossthe country for the first timesince President Bill Clintonsigned legislation pledging “toendwelfareasweknowit”morethan a decade ago.Twenty-three of the 30 larg-est states, which account formorethan88%ofthenation’sto-tal population, see welfarecase-loads above year-ago levels, ac-cording to a survey conductedby The Wall Street Journal andtheNationalConferenceofStateLegislatures. As more peoplerun out of unemployment com-pensation, many are turning towelfare as a stopgap.The biggest increases are instateswithsomeoftheworstjob-lessrates.Oregon’scountwasup27% in May from a year earlier;South Carolina’s climbed 23%and California’s 10% betweenMarch 2009 and March 2008. Afew big states that had seen de-clining welfare caseloads just afew months ago now are seeingincreases:NewYorkisup1.2%,Il-linois 3% and Wisconsin 3.9%.Welfare rolls in a few big states,Michigan and New Jerseyamong them, still are declining.Therecentriseinwelfarefam-ilies across the country is a signthat the welfare system is ex-pandingatatimeofaddedneed,assuaging fears of some criticsofMr.Clinton’swelfareoverhaulwho said the truly needy wouldbe turned away.“To me it’s good news,” says
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TheIranianregimehasdevel-oped,withtheassistanceofEuro-peantelecommunicationscompa-nies, one of the world’s most so-phisticated mechanisms for con-trolling and censoring the Inter-net, allowing it to examine thecontentofindividualonlinecom-munications on a massive scale.Interviews with technologyexperts in Iran and outside thecountry say Iranian efforts atmonitoring Internet informa-tiongowell beyond blocking ac-cess toWeb sites or severing In-ternet connections.Instead,inconfrontingthepo-liticalturmoilthathasconsumedthe country this past week, theIranian government appears tobe engaging in a practice oftencalled deep packet inspection,which enables authorities to notonlyblockcommunicationbuttomonitor it to gather informationaboutindividuals,aswellasalterit for disinformation purposes,according to these experts.The monitoring capabilitywasprovided,atleastinpart,bya joint venture of Siemens AG, theGermanconglomerate,andNokiaCorp.,theFinnishcellphonecom-pany, in the second half of 2008,Ben Roome, a spokesman for the joint venture, confirmed.The “monitoring center,” in-stalled within the government’stelecom monopoly, was part of alarger contract with Iran that in-cludedmobile-phonenetworkingtechnology, Mr. Roome said.“If you sell networks, youalso, intrinsically, sell the capa-bilitytointerceptanycommuni-cationthatrunsoverthem,”saidMr. Roome.The sale of the equipment toIran by the joint venture, calledNokia Siemens Networks, waspreviously reported last year bythe editor of an Austrian infor-mation-technology Web sitecalled Futurezone.The Iranian government hadexperimented with the equip-ment for brief periods in recentmonths, but it had not been usedextensively,andthereforeitscapa-bilities weren’t fully displayed—untilduringtherecentunrest,theInternetexpertsinterviewedsaid.“We didn’t know they coulddothismuch,”saidanetworken-gineerinTehran.“Nowweknowtheyhavepowerfulthingsthatal-
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By Michael Corkery
In Indio, a small city east of Los Angeles, the supply of fore-closed houses for sale is plenti-ful. Even so, work crews are fin-ishing a batch of new homes forLennar Corp.While the recession wipedout many small builders, mort-gage lenders and homeowners,the nation’s biggest buildershavehungon,inpartthroughfa-vorable land deals, loan agree-ments and tax strategies.Now,theworstappearstobeover for most of them. Nation-wide, new-homesalesareshow-ing signs of bottoming out. Thestocks of the big home buildershave rebounded from their No-vemberlows,andsomehavebol-stered their cash and borrowingability.LennarandTollBrothersInc. each sold $400 million of bonds in April, and RylandGroup Inc. sold $230 millionworth, a sign that some inves-tors think these companies willmake it.A look at how Lennar navi-gatedtheworsthousingcrisisindecadesrevealsthattimelylanddealshavebeencriticaltoitssur-vival.“Land can humble you,” saysEmileHaddad,Lennar’schiefin-vestment officer. “On the sur-face it looks like the simplestreal-estate asset, but it’s reallythe most complicated.”Lennar, based in Miami, wasoneofthelargesthomebuildersinstateshithardestbythehous-ing collapse—California andFlorida. As the housing marketwas heading toward a cliff, itpulledofftwocomplicateddealsthat got lots of risky land off itsbooks before the market fellapart.Thebuyers:MorganStan-leyRealEstateFundandtheCali-fornia Public Employees Retire-ment System, the giant pensionfund known as Calpers.Lennaralsoenteredintojoint
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Number of homes sold byLennar
2004 ’05 ’06 ’07 ’08
Source: the company
Source: Survey by The Wall Street Journal andthe National Conference of State Legislatures
Welfare cases for the fivemost populous states,change from a year earlier
U.S. OpenSloshesIntoan ExtraDay
By Sudeep Reddy
NEW VRINDABAN, W.Va.—Saving cows, the Hare Krish-nas in this village have learned,is a lot easier in India.Created four de-cades ago, New Vrinda-ban was the first cattlesanctuary in the U.S. Atits peak, it had 434 bo-vine refugees. Today,the cattle population isdown to 80 becausethere’s not enoughmoney to supportmore. So the HareKrishna community is borrow-ingatacticmorecommonlyusedbycharitiesthattrytosavepeo-ple.For $51, you can feed a cowfor a month, while $108 would“provide special care for retiredcowswhocannolongerbreedorgivemilk,”thegroupsaysinoneappeal. “In one selfless stroke,you are sending a valuable mes-sagetoourchildrenandtoatrou-bled world which sees today’sgentle cow as tomorrow’s din-ner.”Theadopt-a-coweffortprom-ises bovine photo-graphs and updates fordonors, along with anopen invitation to visitthecowsinthisvillage,near Moundsville,W.Va. The village ismodeledafterthechild-hood home of theHindu deity Krishna,who taught his follow-ers to revere cows.Vishwa Hindu Parishad of America, a Hindu group thatgrew out of a movement to banthe slaughtering of cows, has joined the Hare Krishna effortwith its own appeals to helpraise the roughly $1,000 neededto support each cow for a year.
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Monday, June 22
Walgreen is among compa-nies set to release earnings.
Tuesday, June 23
The Federal Reserve be-gins its two-day meeting oninterest rates.
The National Associationof Realtors releases existinghome sales for May.
The Federal Housing Fi-nance Agency releases itsApril home price index.
Oracle, Kroger and Sonicreport earnings.
Wednesday, June 24
Commerce releases dura-ble goods and new-homesales reports.
Nike, Darden Restaurants,Bed Bath & Beyond and RiteAid report earnings.
Thursday, June 25
Obama meets in Washing-ton with German ChancellorMerkel. In Paris the U.S.’sMiddle East envoy, GeorgeMitchell, meets with IsraeliPrime Minister Netanyahu.
Reports due on first-quar-ter GDP, weekly joblessclaims and mortgage rates.
ConAgra Foods, Palm, Len-nar and Tata Steel earnings.
Friday, June 26
Commerce Department re-leases personal income andspending for May.
NumbersOn WelfareSee SharpIncrease
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As Steaks Mount, Hare Krishnas Beef Up Appeals to Save Cows
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Business & Finance
Ricky Barnes (left)and Lucas Glovershare the lead of golf’s U.S. Open,five strokes aheadof the pack. Theevent continuesMonday.
DJ STOXX 50
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A s s o c i a t e d P r e s s A F P / G e t t y I m a g e s
areturningaway fromactivemanagers,preferringtogiveindex fundsa try.
lawmak-ersarecallingon FreddieandFannietorelaxrecentlytight-enedstandardsformort-gageson newcondos.
tore-duceMedicarepharmaceuti-calcosts asindustry groupsworktostaveoff stiffercutsunderhealth overhaul.
itexpects tolandabout$21 billionglo-ballyinnewordersasgovern-ments seektohelp industriescutenergyconsumption.
thathave cutjobs,payandbene-fitsintherecessionmaynotbequick torestorethem.
a mas-sivenatural-gas fieldoff thecoastofNorway.
an adbudgetofupto$50 millionamonthwhileinbankruptcycourt.
haveboostedspendingonlobbying,seek-ingtocounter demandsfortighter regulation.
findbuyingbanksiseasier if theybringinbankingveterans topromotethedeals.
wouldmake forthebusiestofferingweek inmorethan ayear.Twohail from China.
investing inanewonline university—abidtoboosttheindustry.
alowbar foras-set sales, agreeing to sell themostlucrativepartofitscar-rier unit for $650 million
rose earlyMonday,withoilandresourcestocksgaining inSydney.
Iran has developed one oftheworld’s most sophisticatedmechanisms for controlling and censoring theInternet.
alQaedawasbehind abombattackona Shia mosquethatkilledat least70people.
believedtohave beenplantedbyMaoist rebelskilledat least12policemen.
dispersedprotesters in asmalltown after a youngman’s deathsparked unrest.