Paris Opera Ballet names Millepied of 'Black Swan'


PARIS (AP) — Benjamin Millepied, the "Black Swan" choreographer who helped transform Natalie Portman into an obsessed, paranoid ballerina for the film and later married the actress, was named director of the Paris Opera Ballet on Thursday.


Millepied, 35, is a former principal dancer with the New York City Ballet who left in 2011 to create his own dance company in Los Angeles, L.A. Dance Project. He'll start at the Paris company in October 2014, when the current dance director, Brigitte Lefevre, retires.


Millepied and Portman, who have a son, met during the making of "Black Swan," Darren Aronofsky's psychological thriller that stars Portman as a ballet dancer.


Portman won the best actress Academy Award or her performance in the movie.


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Mind: Avoiding Cold Feet Down the Aisle

His charisma was big enough to make his bad habits seem small, more like quirks than flaws. The cigarettes on his breath; the extra weight around the middle; the indifference to clothing and appearances — surely these were minor things, correctable in time.

In the months leading up to the wedding, in 1988, even the fact that he’d been living with his mother at age 38 seemed somehow explainable, if not ideal.

“How about that for a red flag?” said Jincey Huck, a state court employee in St. Louis, of her first husband, who has since died. “Deep down I knew it was a mistake, but I wanted to be married, I wanted kids, all that. I had cold feet the entire time,” said Ms. Huck, now 51.

Psychologists have studied decision-making for more than a century, trying to tease apart how biases, emotion and personality affect big choices and small ones. They have studied people playing investment games. They have taken brain images during hypothetical moral decisions. They have compared the accuracy of snap judgments to long deliberation, trying to gauge the value of subconscious instincts.

But it’s a lot harder to simulate in a laboratory the sort of big life decisions that are risky and hard to reverse: Whether to move across the country. Whether to take a new job, or buy a new house, even switch from PC to Mac. And, perhaps biggest of all: whether to walk down the aisle or split up.

“Virtually every big, real-life decision requires the decision-maker to resolve 10 fundamental questions, or what I call cardinal issues,” said J. Frank Yates, a professor of marketing and psychology at the University of Michigan’s business school. People only feel real confidence, he said, when they begin to address them all, including trade-offs and timing.

Most people, of course, aren’t experts in decision science. They decide based on their own beliefs, whims and their gut.

So how instructive are gut feelings — particularly cold feet — when there are so many moving parts and the stakes are so high? A study published in the current issue of The Journal of Family Psychology provides an answer: plenty instructive, at least when it comes to marriage.

“Having doubts before marriage is not only common, it predicted a higher divorce rate for women and more dissatisfaction in marriages for men and women,” compared with newlyweds with no doubts, said Justin A. Lavner, a doctoral student in psychology at the University of California, Los Angeles.

The study, with co-authors Benjamin R. Karney and Thomas N. Bradbury of U.C.L.A., is the first to examine premarital cold feet in a group of couples over time.

That gut-level doubt can portend coming trouble seems true by definition, self-evident. Yet most big decisions prompt some nervous hesitation, and research suggests that it is the nature and source of those doubts that matter, not their mere presence. Many of the psychological dynamics at play in premarital decision-making are similar to those that build around any big decision.

“The important thing to note is that most people who get divorced do not have major doubts going in” to the marriage initially, even if cold feet may increase the odds, said Arthur Aron, a psychologist at Stony Brook University. “At the same time there are factors — like disagreements with the other person’s parents — that may seem minor but become more important later, for instance, when you have kids.”

Several distractions can make these traps hard to appreciate. One is external pressure created by a wedding. “People get caught up in it and dismiss cold feet as, ‘Oh, that’s only the jitters,’ ” said Anne Milford, co-author with Jennifer Gauvain of “How Not to Marry the Wrong Guy” (Random House 2010), who interviewed about 200 women who had had strong doubts at the altar.

“Women most often said they knew they were making a mistake but did it anyway, often because they had no one who’d listen to them,” Ms. Milford said.

Two other elements that blur the decision are internal, less conscious, and can work against one another.

Both are types of idealization. In a series of studies, Sandra Murray of the State University at Buffalo and others have shown that new lovers have a strong tendency to idealize their partner, in the way that Ms. Huck did: Her friends are kind of sweet, when sober. He gets depressed mostly because he’s so sensitive.

Doubts don’t evaporate; they’re suppressed, only to return later.

The other is an expectation many have, of exquisite happiness. “People feel that they have to find the ideal, perfect Mr. or Ms. Right, who is their soul mate, with whom they will feel passionate love forever, and who will make them happy forever,” said Sonja Lyubomirsky, a psychologist at the University of California, Riverside, and author of “The Myths of Happiness” (Penguin, 2013).

She added: “Of course, both research and anecdotal evidence shows that this is not what typically occurs” and this type of person can easily become disappointed.

Being mindful of both distortions — and finding someone outside the wedding frenzy to listen — is one way to check whether those cold feet are ominous.

Another, Dr. Yates said, is to sit down and write about the doubts. “If a person writes about a decision problem, as opposed to simply thinking about it, she develops greater confidence in the correctness of the decision she eventually reaches,” he said in an e-mail. And that confidence is well placed, his studies have suggested.

“I really did ignore everything; I let it all slide,” said Ms. Huck, who is now happily remarried. “The worst part was afterward, knowing I’d done something I knew at the time was a mistake.”


We hope you’ll “Like” Well on Facebook, where you’ll find news and conversations about fitness, food and family health.

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Apple shares tumble after relatively unimpressive earnings report









Apple Inc. may still make products customers love, but its latest earnings report appears to have broken investors' hearts.


For the third quarter in a row, Apple reported revenue and profit that were impressive by normal standards, but short of what analysts had expected. Investors reacted harshly, driving Apple's stock price down more than 10% in after-hours trading Wednesday.


If that trend holds when trading opens Thursday, Apple will have lost almost $50 billion in market value in the blink of an eye, and its stock will have given up almost all the extraordinary gains it had made in the last year. Investors' and fund managers' belief in one of the world's most widely held stocks will be severely tested in the coming days.





More fundamentally, despite upbeat talk by Apple Chief Executive Tim Cook, the performance is unlikely to quell growing worries that Apple's remarkable run of dominance might be over.


"Overall, compared to other companies, it's impressive. But for Apple's standards, it's not great," said Patrick Moorhead of Moor Insights & Strategy. "I do think this somewhat fuels the perception that Apple is slowing down a bit.... And it's driven by the fact that some of its competitors are catching up, and in some markets have already caught up."


Apple executives did their best during an hourlong conference call with analysts to project optimism and excitement about both the last quarter and the months ahead. They noted that the company had trouble meeting demand for both iPads and Macs, and could have sold many more had they been able to build enough.


They also pointed to a growing business in China and the expansion of iTunes, which is now available in 119 countries.


"Apple is in one of the most prolific periods of innovation in its history," Cook said. "We continue to believe our fundamentals, our remarkable people, our clear and focused strategy will serve us well in the coming months and years ahead."


Cook praised the record numbers posted by Apple. For the three months that ended in December, Apple said revenue increased 18% to a record $54.5 billion. Profit also set an all-time high but was up only slightly from the year-earlier quarter, rising to $13.08 billion, or $13.81 a share, from $13.06 billion, or $13.87.


Apple said it sold a record 47.8 million iPhones last quarter, up from 37 million iPhones in the same quarter of 2011. Despite that massive figure, some analysts had hoped to see stronger demand with sales exceeding 50 million.


"Meeting expectations is not enough for Apple," said Colin Gillis of BGC Financial. "So that's a little bit of a disappointment…. International sales were a little weaker than people expected. So we'll see how that shakes out."


Last quarter saw the introduction of the iPad mini, a 7.9-inch version of Apple's popular tablet computer. The Cupertino, Calif., company said it sold a total of 22.9 million iPads in the quarter, also a record, up from 15.4 million a year earlier. The company didn't break out iPad mini numbers from its total tablet sales, but Chief Financial Officer Peter Oppenheimer told analysts that the smaller version has been a hit and that the company experienced significant backlog getting the product to store shelves. The 22% lower average selling price for Apple's tablets suggests the mini has performed well but probably cannibalized some sales of its 9.7-inch version.


Historic comparisons were challenging this year because the most recent quarter had only 13 weeks, compared with 14 weeks for the same quarter of 2011.


Like many retailers and consumer electronics companies, the quarter from October to December is typically Apple's largest because of the holiday shopping season. Last year, Apple managed to stun investors by beating its own revenue estimates by more than 25% and earnings forecast by nearly 50%. That sent the stock soaring.


But even as Apple extended its lead as the world's most valuable company, and set a record in August for most valuable company ever when not adjusted for inflation, doubts began to creep into the minds of analysts and investors.


Shares have plummeted 27% in the last four months. On Wednesday, shares rose $9.24, or 1.8%, to $514.01 during regular trading.


Apple reported strong earnings in both the third and fourth quarters last year, but the numbers missed analysts' consensus estimates. Gradually, analysts began lowering their forecasts for Apple's earnings for the current fiscal year. At the same time,


Apple experienced some uncharacteristic gaffes. The new Apple Maps app that replaced Google Maps on iOS 6 devices had reliability problems, prompting a rare apology by Apple. And the iPhone 5 that went on sale in September faced long shipping delays as Apple suppliers struggled to adapt to the new, longer screen size.


The dismissal of iOS chief Scott Forstall, a favorite of the late Apple co-founder Steve Jobs, raised eyebrows. But so did a new strategy for launching products: Whereas Apple updates to products used to be few and far between, the company has lately begun increasing the number of products as well as the introduction of new versions.


The first quarter saw one of the busiest product launch cycles in the company's history. The quarter was the first full quarter of sales for the iPhone 5, a new iPod Touch and nano, the fourth iPad, a new 13-inch Retina MacBook Pro, and, of course, the first iPad mini.


Observers have pointed to this accelerated pace as an indication that Apple is facing more competitive pressure from rivals such as Samsung Electronics Co., which is now the world's biggest seller of smartphones, with its Galaxy series of phones. The concern is that the faster upgrade cycle plus the smaller iPad mini will cut into Apple's historically high profit margins.


Such fears over lower profits have also been stoked by the debate over whether Apple plans to release a cheaper iPhone aimed at capturing market share in emerging economies and the concern that Apple has not been able to strike a deal with China's largest carrier.


Now that the first-quarter numbers have been released, analysts will be busy recalibrating their projections over the next couple of days. But the focus is also likely to shift to renewed speculation about new products that investors are hoping will drive another big run for the stock.


chris.obrien@latimes.com


andrea.chang@latimes.com





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Dodgers near TV rights deal with Time Warner Cable









The Los Angeles Dodgers have negotiated a long-term television deal that would pay the team $7 billion to $8 billion, a move that would help cover its recent spending spree and quiet critics who scoffed at the record $2.15-billion purchase price paid by the new owner, Guggenheim Partners.


The expected 20-year agreement with Time Warner Cable could be announced this week, according to people familiar with the matter. They asked that their names not be used because the deal has not yet closed.


The arrangement is bad news for rival News Corp's Fox Sports unit, whose channel Prime Ticket holds cable TV rights to the Dodgers through the upcoming season. Fox will pay $39 million this season — a fraction of what Time Warner Cable would pay under the new contract — and found the proposed price tag too high, people inside News Corp. said.





And the pact would probably mean bigger pay TV bills — even for those who don't watch Dodgers baseball, potentially leading to a backlash against the team and Time Warner Cable.


Under the terms of the proposed contract, Guggenheim would own a Dodgers-dedicated television channel that would start carrying games in 2014, said the people with knowledge of the pact. Time Warner Cable would manage much of the channel's operations and handle distribution to other pay TV companies, including DirecTV and Cox Cable.


The Dodgers' move to control their own channel is driven in part by a desire to pocket as much money as possible while still abiding by Major League Baseball's revenue-sharing agreement — which requires that 34% of each team's locally generated revenue, most of it from TV rights and ticket sales, be contributed to a pool for other teams.


Mark Walter, the Dodgers' controlling owner, was believed to be sharing details of the tentative deal Tuesday with Major League Baseball officials. Walter has negotiated extensively with the league over how much of the television money must be shared with the other 29 Major League teams.


The Dodgers' revenue-sharing bill could range from $1 billion to $2.7 billion, based on the structure of the deal.


The new channel would also give the Dodgers the opportunity to expand team-related programming throughout the day, as the Los Angeles Lakers do on their Time Warner Cable channel.


"If you look at what the Lakers are doing, they're communicating with their client base," Dodgers owner and Guggenheim Partners President Todd Boehly told The Times last fall. "It's fantastic. It becomes self-fulfilling. If you start interacting with the team in all-new ways, you're going to love the team even more."


Boehly was not available for comment.


The addition of a new Dodgers network would bring the number of local sports channels in Los Angeles to six, the most in any major city in the United States. Besides Time Warner Cable's SportsNet and Deportes, and Fox's Prime Ticket and Fox Sports West, the Pac-12 Conference also has its own channel here. Fox Sports West carries Los Angeles Kings and Los Angeles Angels games.


"That's too many channels," said Marc Ganis, a sports industry consultant in Chicago. "I can't imagine that is sustainable on a long-term basis."


Sports channels aren't cheap. Time Warner Cable already charges other cable and satellite operators close to $4 a month a subscriber for SportsNet. The Dodgers and Time Warner Cable are expected to seek as much as $5 for their new channel, which is double what Fox charges for Prime Ticket, according to industry consulting firm SNL Kagan.


Those price hikes are generally passed on to consumers, who may resent the increase.


"Why do I have to pay for the Dodgers when I am not a Dodgers fan?" said Laura Burnes, a mother of two who lives in Orange County. "I don't want to see my cable costs go up any more."


The cost for sports has skyrocketed over the last decade. That's partly because the content is seen as "DVR proof." It is watched live by viewers, which makes it more valuable to advertisers and networks than sitcoms and dramas, which are often recorded and viewed later by people who skip ads.


But non-sports fans and pay TV companies are increasingly frustrated at having to pick up the tab for big sports deals. There have been calls to sell sports channels "a la carte," or separately from other programming.


The Dodger agreement with Time Warner Cable may be a tipping point.


"That is the solution everyone should be looking at seriously," said Derek Chang, a former senior executive at satellite broadcaster DirecTV. Such a move, he added, may be the only way to lower the cost of TV sports. "Ultimately the market for fees would then reset."


The Dodger deal marks the second time in less than two years that Time Warner Cable has outbid Fox Sports for a Los Angeles franchise. In 2011, the company agreed to pay $3.6 billion for a 20-year accord with the Lakers, which had been on Fox Sports West.


Time Warner Cable used the Lakers to create SportsNet and Deportes, a Spanish-language sports channel.


The two media titans have also done battle on other turf.


Last year, Fox acquired an ownership stake in Yes, the New York sports channel that is home to the Yankees. In 2011, Fox outbid Time Warner Cable for rights to the San Diego Padres.


Losing the Dodgers will hurt Fox's Prime Ticket, but the company still has rights to the Los Angeles Clippers and Anaheim Ducks. A Fox executive said there are no plans to consolidate Prime Ticket and Fox Sports West, which besides the Angels also has rights to the Stanley Cup champion Kings.


Distributors will press for a reduction in the fee for Prime Ticket without the Dodgers, but it's not a sure thing they'll get it, Ganis said. When New York's MSG channel lost rights to the Yankees, the subscription fee did not decrease.


joe.flint@latimes.com


bill.shaikin@latimes.com


Times staff writer Meg James contributed to this report.





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First “Firefox OS” Phones Previewed, to Launch in February






Mozilla, the non-profit organization behind the popular Firefox web browser, has been promoting its Firefox OS project (once known as “Boot to Gecko”) for some time now. A hardware partnership with Telefonica, the international telecom giant, had been announced, but no phones had yet been unveiled.


But in an announcement today on its blog, Mozilla announced the impending launch of its first “developer preview” phones, the Keon and the Peak. Made in partnership with Geeksphone, a Spanish smartphone producer which used to make Android phones, these devices are meant to help app developers preview their work on the small screen. But they may also serve as a sneak preview of Mozilla’s plan to enter the smartphone market.






Introducing Firefox OS


Designed as an alternative to Google’s Android for low-powered smartphones, Firefox OS’ claim to fame is that it’s “built entirely using open web standards,” or open-source code written in the programming languages which make up the web, like JavaScript. Likewise, Firefox OS apps are websites specially formatted to look and feel like apps, and to respond to touchscreen controls and access phone features like vibration and the GPS.


A selection of Firefox apps is already available in the Mozilla Marketplace, but developers will eventually be able to take the open-source code behind it and create their own app markets like it if they so choose. These apps also run on the preview “Aurora” version of Firefox for Android, which is available for download from Mozilla’s website.


“Say ‘hola’” to the Keon and Peak


The Keon is Mozilla’s entry-level developer smartphone, while the Peak has somewhat more modern hardware specs.


The Keon has a 1 GHz Snapdragon processor, 512 MB of RAM, a 3.5-inch touchscreen, and 4 GB of flash memory, plus a microSD card slot to expand storage space. Its built-in camera is a basic 3-megapixel shooter, and lacks an LED flash. It’s roughly comparable to 2010′s iPhone 4 in terms of raw hardware specs, although it probably won’t be able to play the same kinds of 3D games since they’ll be written as web applications.


The Peak has a dual-core 1.2 GHz processor, a 4.3-inch IPS display, and an 8-megapixel camera with a flash, plus a 2-megapixel front-facing camera. It has the same amount of RAM and flash storage as the Keon does, though.


Both the Keon and the Peak are unlocked GSM smartphones, which may mean they will work on AT&T and T-Mobile’s networks in the States.


Pricing and availability


According to Peters, the “First phones will be available in February.” Prices have yet to be announced.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.


Linux/Open Source News Headlines – Yahoo! News





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Te'o tells Couric he briefly lied about girlfriend


NEW YORK (AP) — Notre Dame linebacker Manti Te'o has told Katie Couric that he briefly lied about his online girlfriend after discovering she didn't exist, while maintaining that he had no part in creating the hoax.


Pressed by Couric to admit that he was in on the deception, Te'o said he believed that his girlfriend Lennay Kekua had died of cancer and didn't lie about it until December.


"Katie, put yourself in my situation. I, my whole world told me that she died on Sept. 12. Everybody knew that. This girl, who I committed myself to, died on Sept. 12," Te'o said in an interview to air Thursday on Couric's syndicated talk show. A segment of the interview with Te'o and his parents was broadcast Wednesday on "Good Morning America."


The Heisman Trophy runner-up said he only learned of the hoax when he received a phone call in December from a woman saying she was Kekua.


"Now I get a phone call on Dec. 6, saying that she's alive and then I'm going be put on national TV two days later. And to ask me about the same question. You know, what would you do?" Te'o said.


An Associated Press review of news coverage found that the Heisman Trophy runner-up talked about his doomed love in a Web interview on Dec. 8 and again in a newspaper interview published Dec. 10.


Te'o's father defended his son when Couric pointed out that many people don't believe the Irish star, suspecting he used the situation for personal gain.


"People can speculate about what they think he is. I've known him 21 years of his life. And he's not a liar. He's a kid," Brian Te'o said with tears in his eyes.


On Tuesday, the woman whose photo was used as the "face" of the Twitter account of Te'o's supposed girlfriend says the man allegedly behind the hoax confessed and apologized to her.


Diane O'Meara told NBC's "Today" show that Ronaiah Tuiasosopo used pictures of her without her knowledge in creating a fake woman called Lennay Kekua.


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The New Old Age Blog: Study Links Cognitive Deficits, Hearing Loss

There’s another reason to be concerned about hearing loss — one of the most common health conditions in older adults and one of the most widely undertreated. A new study by researchers at Johns Hopkins Medicine suggests that elderly people with compromised hearing are at risk of developing cognitive deficits — problems with memory and thinking — sooner than those whose hearing is intact.

The study in JAMA Internal Medicine was led by Dr. Frank Lin, a hearing specialist and epidemiologist who over the past several years has documented the extent of hearing problems in older people and their association with falls and the onset of dementia.

The physician’s work is bringing fresh, and some would say much-needed, attention to the link between hearing difficulties and seniors’ health.

In his new report, Dr. Lin looked at 1,984 older adults who participated over many years in the Health ABC Study, a long-term study of older adults conducted in Pittsburgh and Memphis. Participants’ mean age was 77; none had evidence of cognitive impairment when the period covered by this research began. In 2001 and 2002, they received hearing tests and cognitive tests; cognitive tests alone were repeated three, five and six years later.

The tests included the Modified Mini-Mental State exam, which is administered through an interview and yields an overall picture of cognitive status, and the Digit Symbol Substitution Test, a paper-only exercise that asks people to match symbols and numbers, which can reveal deficits in someone’s working memory and executive functioning.

Dr. Lin found that annual rates of cognitive decline were 41 percent greater in older adults with hearing problems than in those without, based on results from the Modified Mini-Mental State Exam. A five-point decline on that test is considered a “clinically significant” indicator of a change in cognition.

Using this information, Dr. Lin found that elderly people with hearing problems experienced a five-point decline on the exam in 7.7 years, compared with 10.9 years for those with normal hearing.

Results from the Digit Symbol Substitution Test showed the same downward trend, though not quite as steep: older people with hearing loss recorded a yearly rate of cognitive decline 32 percent greater on it than those with intact hearing. In both cases, the results showed an association only, with no proof of causality.

Still, given the fact that nearly two-thirds of adults age 70 and older have hearing problems, it is an important finding.

For caregivers and older adults, the bottom line is “pay attention to hearing loss,” said Kathleen Pichora-Fuller, a professor of psychology at the University of Toronto who was not involved in the study.

Most people seek medical attention for hearing difficulties 10 to 20 years after they first notice a problem, she said, because “there’s a stigma about hearing loss and people really don’t want to wear a hearing aid.” That means years of struggling with the consequences of impairment, without interventions that can make a difference.

One consequence that may help explain Dr. Lin’s findings is social isolation. When people have a hard time distinguishing what someone is saying to them, as is common in older age, they often stop accepting invitations to dinners or parties, attending concerts or classes, or going to family events. Over time, this social withdrawal can become a self-fulfilling prophecy, leading to the loss of meaningful relationships and activities that keep older people feeling engaged with others.

A substantial body of research by cognitive scientists has established that seniors’ cognitive health depends on exercising both body and brain and remaining socially engaged, and “now we have this intersection of hearing research and cognitive research lining up and showing us that hearing health is part of cognitive health,” said Dr. Pichora-Fuller, who originally trained as an audiologist.

Family physicians and internists, too, often dismiss older patients’ complaints about hearing, and should pay close attention to Dr. Lin’s research, she said.

“I hope this study will be a wake-up call to clinicians that auditory tests need to be part of the battery of tests they employ to look at an older person’s health,” agreed Patricia Tun, an adjunct associate professor of psychology at Brandeis University.

Although the tests are effective and cause no known harm, a panel of experts recently failed to recommend them for older adults because of a lack of supporting evidence, as I wrote last August.

Another potential explanation for Dr. Lin’s new finding lies in a concept known as “cognitive load” that Dr. Tun has explored through her research. Basically, this assumes that “we only have a certain amount of cognitive resources, and if we spend a lot of those resources of processing sensory input coming in — in this case, sound — it’s going to be processed more slowly and understand and remembered less well,” she explained.

In other words, when your brain has to work hard to hear and identify meaningful speech from a jumble of sounds, “you’ll have less mental energy for higher cognitive processing,” Dr. Tun said.

Even seniors who hear sounds relatively well often report that words sound garbled or mumbled, she noted, indicating a deterioration in hearing mechanisms that process complex speech.

Also, as yet unidentified biological or neurological pathways may affect both speech and cognition. Or hearing loss may exacerbate frailty and other medical conditions that older people oftentimes have in ways that are as yet poorly understood, Dr. Lin’s paper notes.

A limitation to his study is its reliance, in part, on the Modified Mini-Mental State exam, which asks older adults to respond to questions posed by an interviewer, according to Barbara Weinstein, a professor and head of the audiology program at CUNY’s Graduate Center.

Her research has shown that hearing-compromised seniors may not understand questions and answer incorrectly, confounding results. Another limitation arises from the failure to test participants’ hearing over time, as happened with cognitive tests, making associations more difficult to tease out.

Dr. Lin hopes to address this through another research project that would follow older adults over time and test whether interventions such as hearing aides help prevent the onset or slow the progression of cognitive decline. In the meantime, older people and caregivers should arrange for hearing tests if they have concerns, and consider getting a hearing aid if problems are confirmed.

Getting sound to the brain is the “first and most important step” in preventing sensory deprivation that can contribute to cognitive dysfunction, said Kelly Tremblay, a professor of speech and hearing science at the University of Washington.

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New look at plan to use eminent domain to seize troubled mortgages









San Bernardino County and two of its cities last year created a national stir with a proposal to use eminent domain to seize troubled mortgages and write down debt for homeowners.


That debate returns to the county this week, with the first public meeting on the matter since August scheduled for Thursday. Meanwhile, the San Francisco investment firm that initially pushed the plan, Mortgage Resolution Partners, is renewing its call for aggressive action in the epicenter of the state's housing crash.


"It really is ground zero, because it is the hardest-hit community in the state," said Steven Gluckstern, chairman of Mortgage Resolution Partners. "It is very important to me that we are successful in Southern California."





Eminent domain is usually used to seize land — not loans — to serve the public good, as when local governments seize blighted properties. The San Bernardino effort would be the first widespread attempt at using eminent domain to seize residential mortgages.


The county and the cities last year formed the Joint Powers Authority to consider the eminent domain idea. On Thursday, members of the authority will consider seeking proposals from outside contractors to manage a homeowner-rescue program. Chaired by county Chief Executive Gregory C. Devereaux, the authority has the ability to enact a program without additional city and county approvals.


County spokesman David Wert said the authority had made no decisions and would consider a range of options to help homeowners. Devereaux was unavailable for comment, Wert said.


San Bernardino County was among the hardest hit by the housing bust, with plummeting prices trapping tens of thousands of homeowners in underwater mortgages. The county's housing market has just recently started to recover, as investors and cash buyers pour in looking for deals.


Last month, the median home price hit $180,000 in San Bernardino — a 20% rise year over year, although still down 53% from the county's $380,000 peak in November 2006, according to real estate research firm DataQuick.


The authority's draft request for a program manager does not specify how the program would work. But the pitch from Mortgage Resolution Partners — expected to contend for a management contract — calls for seizing the mortgages, writing down debt to match home values and refinancing the loans. Mortgage Resolution Partners on Tuesday provided The Times with a detailed breakdown of its plan.


The authority was created to discuss the eminent domain idea publicly after the San Francisco firm approached the county last year.


Ever since the authority's first meeting last July, advocates of the mortgage and investment industries have called the plan a government overreach that would nullify valid contracts and hurt the local housing market. The result would be protracted litigation, a surge in mortgage rates and a tightened market for borrowers with less-than-perfect credit, critics have said.


"Any proposal involving eminent domain will do more harm than good to the markets," said Tim Cameron, a managing director for the powerful Securities Industry and Financial Markets Assn., or SIFMA. "Put yourself in the position of an investor investing in a product: That is an additional risk, an unquantifiable risk … and that's the type of thing that causes premiums to go up."


Dustin Hobbs, a spokesman for the California Mortgage Bankers Assn., said the banking industry worries that the idea could spread to other communities.


"Hopefully, they will choose a direction that helps homeowners without eminent domain," Hobbs said. "It's pretty clear at this point that everybody is waiting to see what happens in San Bernardino first."


The plan from Mortgage Resolution Partners would have municipalities seize mortgages held in so-called private-label securities. Such mortgage bonds are composed of home loans that failed to meet the criteria for backing by government-sponsored mortgage giants such as Fannie Mae and Freddie Mac.


According to an analysis by Mortgage Resolution Partners, about 59,000 private-label security loans exist in San Bernardino County — with 42,000 of them underwater, which means borrowers owe more than the home's value.


Many such securities were backed by high-risk home loans that fueled the housing bubble. Mortgage Resolution Partners argues that these types of mortgages are ideal for seizure and principal reduction, because these securities are often valued less than the actual homes. That's because of the high likelihood of default.


In their plan provided to The Times, Mortgage Resolution partners gave a hypothetical example of how the program might work on a typical house.


If a house purchased for $400,000 in 2007 is now worth $200,000, a buyer might still owe $300,000. With a judge's permission, the city-county authority would seize the loan and pay the mortgage holder something less than $200,000 — an amount not specified in the example.


The authority would then help the homeowner get a new mortgage, probably one backed by the Federal Housing Administration, for $190,000, leaving the owner 10% equity in the new loan.


In reality, that process would be hard to pull off and probably would face legal challenges, Mortgage Resolution Partners acknowledges. Gluckstern, in an interview Tuesday, said his group would cover any legal costs and would be willing to press the case to the highest court that would take it up.


alejandro.lazo@latimes.com





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County official calls car leasing contract procedure 'embarrassing'









Auditors reviewing a $1.75-million car leasing contract given to a company with a politically connected lobbying firm found that Los Angeles County officials had failed to create a "truly competitive" process, but that there was no evidence of improper influence.


Investigators with the county auditor-controller's office reviewed the Enterprise Rent-a-Car contract at the request of Supervisor Michael D. Antonovich. A report by KCET-TV had raised questions about the way the business was awarded.


Enterprise was given a sole-source, five-year deal in March to provide 60 leased  vehicles to the county's Community Development Commission and to maintain the agency's existing fleet. Commission staff projected that outsourcing the fleet services would save about $300,000 a year.





The Nov. 28 report on KCET's "SoCal Connected" focused on the lobbying firm Englander Knabe & Allen and questioned whether its clients — including Enterprise — got an unfair advantage because partner Matt Knabe is the son of county Supervisor Don Knabe, who voted along with all the other supervisors to award the contract.


Both Knabes have said that their relationship has never posed a conflict, and a spokesman for the Englander firm has said Matt Knabe never lobbies his father directly.


The auditor-controller found no evidence of attempts to influence the rental car award. Matt Knabe told investigators that no one from his firm had lobbied on the contract, and the commission's executive director said he was "100% confident" the supervisor's son did not influence the process.


"The report shows that Matt acted professionally and used no undue influence in his dealings with the county," said Englander partner Eric Rose.


But the review did find that county staff did an "inadequate" job of trying to find other potential bidders.


Asked by KCET what vendors had been contacted and given a chance to compete for the business, a county analyst created a list to make it appear the department had reached out to 50 companies. In fact, only 16 firms had been contacted, auditors found. Enterprise was the only company that responded to the email request, and staff made no follow-up attempt to contact the other firms.


According to the auditor's report, the count of 50 vendors was originally used as a "place holder" in a template document and never corrected. By the time the contract was awarded, the contract analyst "felt he could not correct the number without embarrassment."


Investigators also found that the agency violated its own policy by not advertising the contract on the commission's or the county's websites, and that the contract should have gone through a full bidding process.


In addition, several vendors that contract officials emailed to invite interest had no "realistic potential" to provide a leased fleet to the county in the first place, the review concluded.


Investigators wrote that they couldn't determine whether the commission could have gotten a better deal but said "the potential for greater savings from a more competitive process appears to be plausible."


County auditor-controller Wendy Watanabe called the situation "embarrassing" but chalked up the issues to incompetence rather than intentional steering.


"I think they got lazy, they took a shortcut, and they didn't think it was that big of a deal," she said.


Watanabe said the investigation had focused on the Enterprise contract, so she could not say whether there was a broader issue with the agency's contracting process.


Commission representatives could not be reached Monday. The commission was slated to respond to the report's findings within 30 days.


abby.sewell@latimes.com





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I Might Be Too Old for Facebook Graph Search






On Sunday, I turned 30.


That’s not too old, I tell myself, yet the signs of aging are creeping in. Teenagers listen to music that I either haven’t heard of or believe to be mostly terrible. They use slang I don’t recognize, and I imagine my slang would sound to them like “groovy” or “far out” sound to me.






But for the purposes of our tech blog, the most notable sign is how much more active teens are on Facebook than I am. To hear it from my wife, who works with children and teens at her job, they’re constantly signed in and active, to the point that reaching them by voice call is unreliable. Send them a Facebook message, even during school hours, and they’ll respond right away. (The reality isn’t quite that extreme; according to a Pew survey, most teens communicate through text messages and phone calls more than Facebook, but e-mail is far behind.)


So when Facebook announces a new feature, like Graph Search, I imagine those teens getting the most use out of it. Graph Search lets you look up people, places, photos and other things using natural search queries. Think of it like Google for everything that your friends know; instead of searching the Web for somewhere to eat or something to do, you could just search through the collective wisdom of your network.


Here are some of the example searches on Facebook’s Graph Search home page:


  • Music my friends like

  • Restaurants in London my friends have been to

  • People who like cycling and are from my hometown

  • Photos before 1990

Being able to find all that information–and provide your own information for friends–sounds great. But unless you and your pals are putting lots of data in, you’re probably not going to get a lot of data out. I know for sure that I haven’t put much effort into connecting my real life story to Facebook, and as I poke around my network, I see that many of my friends haven’t either. They don’t check in to places they visit. They don’t “Like” everything that they actually like. They haven’t uploaded photos from before 1990. Collectively, we haven’t invested in making Graph Search as useful as it could be.


It might be different if I was part of the generation that uses Facebook more often. Though it’s hard to find data on how Likes and check-ins vary by age, younger users tend to have more Facebook friends than older ones, according to Edison Research, so at least they have a bigger base of people to work with. And according to a 2011 study, teens spend more time on the network per day than older users. If posting on Facebook is part of your social circle’s daily life–that is, it’s not just a way to see what old high school buddies are up to–I imagine Graph Search will be a lot more useful.


That’s not to say Graph Search won’t be of any value to someone like me. It could come in handy as a way to sort through photos, for instance. There’s also a chance that Facebook will improve the ways that it picks up on our interests, and integrate frictionless sharing so there’s less work involved in becoming an information source.


But while I plan to keep up with technology for a long time, I realize it’s hard to keep using social networks like a teenager when your friends are getting older too. Facebook isn’t part of my daily life anymore, so I can’t imagine rewiring my habits and turning it into a primary information source, especially if my friends aren’t doing the same.  It’s much easier to rely on the tools I already have, such as traditional search engines and sites like Yelp–just like it’s easy to stop keeping track of popular music or to pick up on new slang.


Graph Search is in “very limited” beta now, and users who want to try it can join the waiting list. I look forward to seeing what I can do with it, even if it’s not really for me. In the meantime, here’s to growing older.


Social Media News Headlines – Yahoo! News





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