Despite G.D.P. Revision to 2.7%, Growth May Have Ebbed Since

Even as the government said that the United States economy grew faster than first estimated in the third quarter, economists warned that the rate of expansion could slow sharply before the end of the year as worries mount about the fiscal impasse in Washington.

Nam Y. Huh/Associated Press

An employee on the assembly line this month at Generac Power Systems in Whitewater, Wis., a maker of residential generators.

The Commerce Department said Thursday that gross domestic product expanded at an annual rate of 2.7 percent in the three months ended Sept. 30, well above the 2 percent estimate it initially made in late October. But the revision was driven by increased inventory accumulation and a jump in federal spending — factors unlikely to be repeated in the current fourth quarter, economists said.

What’s more, the revised figures show spending by businesses on equipment and software declined by 2.7 percent in the third quarter, the first decrease since the end of the recession in mid-2009 and a sign of just how cautious many companies have become amid the uncertainty in Washington and slowing growth in Asia and Europe.

“It’s a nice headline number,” said Nigel Gault, chief U.S. economist at IHS Global Insight, of the 2.7 percent rate, “but it exaggerates the underlying momentum in the economy. Sustainable improvements in growth are not driven by inventories.”

The two biggest growth areas in the third quarter — inventory growth and federal spending — “are likely to be minuses in the fourth quarter,” he said. Mr. Gault expects the annual rate to sink to 1 percent this quarter, hurt by a fiscal stalemate in Washington as well as the after-effects of Hurricane Sandy.

To be sure, there were signs of optimism in Thursday’s data. Residential fixed investment rose 14.2 percent, a sign that the housing recovery is gaining steam. Indeed, a separate report Thursday from the National Association of Realtors showed pending home sales rose to a two-and-a-half-year high.

And not all economists took a pessimistic view. “The economy certainly hasn’t taken off, but it’s nowhere close to a stall,” said David Kelly, chief global strategist for JPMorgan Funds. “The economy is still underperforming its full potential, but once we get past the ‘fiscal cliff’ uncertainty, we could see stronger growth next year.”

The new estimate of growth represents a substantial increase in the level of the second quarter, when the economy grew at a rate of just 1.3 percent. It also marks the fastest rate of expansion since the fourth quarter of 2011, when the economy grew at a 4.1 percent annual pace.

This was the second of the government’s three estimates of quarterly growth. The final figure is scheduled for Dec. 20.

“Over all, it was a disappointing report,” said Michelle Meyer, senior United States economist with Bank of America Merrill Lynch. The accumulation of inventories went from subtracting 0.1 percentage points from the initial estimate to adding 0.8 percentage points, she said.

    “A lot of that inventory build was unintentional, which suggests a downside risk for the fourth quarter,” she said. “Businesses had expected stronger sales and consumer spending and were caught off guard."

    Ms. Meyer said she expected the economy to grow by 1 percent in the fourth quarter and 1 percent in the first quarter of 2013, well below the level needed to bring down the unemployment rate, which stood at 7.9 percent in October.

    On Thursday, the government also reported that first-time unemployment claims dropped by 23,000 to 393,000 last week. But Ms. Meyer cautioned that these figures were much more volatile than usual because of the Thanksgiving holiday as well as Hurricane Sandy.

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Norquist: GOP concern over tax pledge just 'impure thoughts'

Grover Norquist on Wednesday rebuffed claims that his anti-tax crusade is losing steam, calling statements from prominent Republicans hinting at their departure from his anti-tax pledge "impure thoughts."

Norquist, president of Americans for Tax Reform, met with Politico’s Mike Allen to offer his thoughts on the looming “fiscal cliff,” and the growing narrative that Republicans, after years of tying themselves to ATR’s pledge not to raise taxes, may be ready to jump ship.

Most recently, Rep. Tom Cole (R-Okla.) said in a private meeting with the House Republican whip team Tuesday morning that Republicans should take the opportunity to extend President George W. Bush’s tax cuts for 98% of Americans, calling it an “early Christmas present” for taxpayers.

And on Sunday, Sen. Lindsay Graham (R-S.C.) and Rep. Peter King (R-N.Y.) joined Sen. Saxby Chambliss (R-Ga.) in voicing concern over continued adherence to Norquist’s pledge.

House Speaker John A. Boehner (R-Ohio) responded to Cole on Wednesday, saying that though Cole is a friend and supporter, he disagrees entirely with his stance. “The goal here is to grow the economy and control spending. You’re not going to grow the economy if you raise tax rates on the top two rates,” Boehner said.

Though Norquist commented that Cole’s recommendation was “an interesting tactic,” he remained firm that his pledge remains viable, saying that anyone suggesting that opposing tax increases is no longer in vogue is “an idiot.”

The pledge, Norquist claimed, “takes weasel words out” of campaign promises to cut taxes, and provides voters a clear picture of a candidate's stance, a stance he said the Republican Party has built its brand upon.

Norquist said that signing the pledge is about informing voters and entrenching a preexisting policy stance, instead of an oath of fealty to ATR and its champion cause.

“They don’t need my permission to raise taxes,” he said, adding that such power lies in the hands of voters.

And he dismissed claims that the pledge’s powers extend beyond the promises tied to its concise wording.

“It doesn’t solve all of the world’s problems; it doesn’t design tax reform,” Norquist said.

But Norquist did design a general road map for Republicans to use in fiscal cliff negotiations.

“You need to have this conversation in public, you need to be online so you can have the moral higher ground,” he said, recommending that the GOP aim for a temporary extension of Bush’s tax cuts, with comprehensive tax reform to follow soon after.

“If the Republicans lose in such a way that they have their fingerprints on the murder weapon, then you have a problem,” he said, adding that public debate over the fiscal cliff would allow Republicans a chance to turn the tide against President Obama and the Democrats, so long as they maintain “credible clarity” in espousing their low-tax vision.

Norquist said he worries about conceding any ground to Democrats on tax increases.

“What the Democrats do is trickle-down taxation,” he said. “They tax the rich and then they screw everybody.”

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Beyond Iron Dome: Israel Preps New Anti-Missiles, Eyes Lasers

Israel just proved that its new Iron Dome system can repel Hamas’ short-range rockets and missiles. The bad news: Those weapons are nothing compared to the more advanced missiles that Hezbollah and Iran can throw at Israel, which would surely overwhelm Iron Dome. That’s why Israel, and America, are already looking into the missile defense systems that come after Iron Dome — including ones that rely on lasers.

The Israelis can justly say their system worked better than American and Israeli skeptics (and Hamas) anticipated. Five Iron Dome batteries destroyed some 421 Qassam rockets and Iranian-made Fajr-5 missiles launched from Gaza, for an interception rate of between 80 and 90 percent. (Hamas fired over 1,500 projectiles, but Iron Dome ignores those that don’t impact populated areas.) It kept Israeli casualties far below Palestinian ones and might have convinced Prime Minister Benjamin Netanyahu he didn’t need to re-invade Gaza. All this for a cost of under $30 million per interception.

All this has Israel pumping its fist. Uzi Rubin, a former Israeli missile defense official, boasted that Iron Dome outperformed the U.S.’ Patriot missile and showcased “Jewish genius with blue and white [i.e., Israeli] technology.” (Iron Dome was jointly developed with the U.S., but whatever.) And already Rafael, the company behind Iron Dome, is pledging to up its success rate to 95 percent in the next several months as it and the Israel Defense Forces sift through the launch data.

The thing is, Hamas is peanuts. Its Qassams and Fajr-5s are unguided systems, unsophisticated compared to the missile arsenals of Hezbollah and Iran, which include ballistic missiles. Even a souped-up Iron Dome would probably be overwhelmed by those. So as encouraged as Israel is by Iron Dome’s success, it’s already scaling upward, to more powerful interceptor-based missile defenses intended to blunt a layered assault from Hamas to Hezbollah to Iran. Some, however, doubt that a bullet is the right instrument for stopping another bullet, and would prefer to use the laser weapons the U.S. is developing.

Just days after Wednesday’s ceasefire with Hamas, it prominently tested Iron Dome’s big brother, called David’s Sling (and sometimes “Magic Wand”). Whereas Iron Dome’s stated maximum range is 45 miles (and is probably shorter in reality), David’s Sling’s interceptors are designed to hit incoming missiles from up to 200 miles away. If it works as intended, David’s Sling should protect Israel against the longer-range missiles that Hezbollah possesses M600, Zelzal, other Fajr models; and perhaps even the Scud ballistic missiles Israel contends Hezbollah got from Iran or Syria.

David’s Sling and Iron Dome have another brother, the Arrow. The Arrow has been in development for years and was originally conceived of as a Scud-stopper. Like some American anti-ballistic missile systems, the Arrow family of defenses is designed to stop a ballistic missile upon re-entry into the Earth’s atmosphere — principally, Iran’s Shehab-3. Over the summer, Israel upgraded the hardware, software, sensor array, interceptors and “Green Pine” radar on the Arrow-2; and an Arrow-3 is on the horizon that can reach twice its predecessor’s altitude. That’s likely intended to blunt the impact of Iran’s forthcoming the Iranian Sejjil-2 medium-range ballistic missile.

You can think of Iron Dome as the bantamweight, David’s Sling/Magic Wand as the middleweight and the Arrow as the heavyweight. And viewed together, you can see what Israel fears: a concerted barrage from Iran and its proxies that comprises everything from unguided Qassam rockets to Sejjil-3 ballistic missiles. That scenario brought U.S. Patriot missile batteries, Aegis ships and some 3,500 troops to Israel last month for the largest joint missile-defense exercises ever between the two allies, and you might hear more on the subject on Thursday, when outgoing Defense Minister Ehud Barak visits the Pentagon.

But some think hitting a bullet with another bullet is the wrong paradigm for missile defense. One Ha’aretz writer, Reuben Pedatzur, pines for Northrop Grumman’s Skyguard chemical laser, which would burn through projectiles after picking them up on radar. In the pre-Iron Dome days, residents of southern Israel once sued the Israeli government to bring Skyguard to their communities. And it’s worth noting that on Tuesday, rival Lockheed Martin claimed its own developmental laser system, the Area Defense Anti-Munitions, shot down four “small caliber” rockets from about a mile away in recent testing.

Except that laser-based missile defenses have been promised for decades and are never quite there yet. Rubin, the former Israeli missile defense official, blasted Skyguard in Ha’aretz on Tuesday as “simply unrealistic,” noting that the U.S. doesn’t even use it in Afghanistan, where its bases are frequently rocketed. And the U.S. Navy, which has sunk a lot of money into developing laser defenses for ships, still doesn’t consider its most mature solid-state lasers ready to burn through missiles this decade.

Still, David’s Sling and the upgraded Arrow have years to go before they’re ready, and their own trials by fire might not go as well as Iron Dome’s. Meanwhile, Hezbollah is pledging to launch “thousands of rockets” if Israel attacks, and the threat of a war with Iran hasn’t abated. If Hezbollah, or Iran, follow through on that threat, Iron Dome’s limits might become as visible as its successes just were.

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Thousands celebrate Hobbit premiere in New Zealand

WELLINGTON (Reuters) – Tens of thousands of people packed New Zealand’s capital city, clambering on roofs and hanging onto lamp posts on Wednesday to get a glimpse of the stars at the red carpet world premiere of the film “The Hobbit: an Unexpected Journey”.

Wellington, where director Peter Jackson and much of the post production is based, renamed itself “the Middle of Middle Earth“, and fans with prominent Hobbit ears, medieval style costumes, and wizard hats had camped out the night before to claim prized spaces along the 500 meter (550 yards) red carpet.

Jackson, a one time newspaper printer and the maker of the Oscar winning “Lord of the Rings” trilogy more than a decade ago, was cheered along the walk, stopping to talk to fans, sign autographs and pose for photos.

The Hobbit trilogy is set 60 years before the Rings movies, but Jackson said it has benefited from being made after the conclusion of the J.R.R. Tolkien fantasy saga.

“I’m glad that we established the style and the look of Middle Earth by adapting Lord of the Rings before we did the Hobbit,” Jackson told Reuters from the red carpet.

Jackson, a hometown hero in Wellington, said the production had been on a “difficult journey”, alluding to Warner Brothers’ financial problems, and a later labor dispute with unions.

“Fate meant for us to be here,” he told an ecstatic crowd, which hailed him as a film genius, but also a down to earth local boy.

“I came here to see the stars but also Peter (Jackson)…I loved the Lord of the Rings and that made me want to be here, without him none of it would be here,” said teenage student Samantha Cooper.

OLD FRIENDS

The cast was no less enthusiastic about the Hobbit, especially those who had starred in the Lord of the Rings trilogy.

British actor Andy Serkis, who plays the creature Gollum with a distinctive throaty whisper, said picking up the character after a near-ten year break was like putting on a familiar skin.

“I was reminded on a daily basis with Gollum (that) he’s truly never left me,” he said.

Most of the film’s stars attended the premiere, including British actor Martin Freeman, who plays the Hobbit Bilbo Baggins, Andy Serkis, Hugo Weaving, Cate Blanchett, and Elijah Wood. Ian McKellen, who plays the wizard Gandalf, was absent.

Freeman, known for his roles in the comedy The Office and Sherlock Holmes, said he looked for a different, lighter, slightly pompous Baggins from the older, wiser character played by Ian Holm in the Rings movies.

“Between us – Peter (Jackson) and me — we hashed out another version of Bilbo. There’ll be others, but our version is this one and I hope people like it,” he said.

The production was at the center of several controversies, including a dispute with unions in 2010 over labor contracts that nearly sent the filming overseas and resulted in the government stepping in to change employment laws.

The only sour note at the premiere came when animal rights activists held up posters saying “Middle Earth unexpected cruelty” and “3 horses died for this film”, after claims last week that more than 20 animals died during the making of the film.

Event organizers tried to block out the protesters’ posters with large Hobbit film billboards. Jackson has said some animals died on a farm where they were housed, but none had been hurt during filming.

The movies have been filmed in 3D and at 48 frames per second (fps), compared with the standard 24 fps, which Jackson has likened to the quality leap to compact discs from vinyl records.

The second film “The Hobbit: The Desolation of Smaug” will be released in December next year, with the third “The Hobbit: There and Back Again” due in mid-July 2014.

(Editing by Elaine Lies)

Movies News Headlines – Yahoo! News

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Well: Weight Loss Surgery May Not Combat Diabetes Long-Term

Weight loss surgery, which in recent years has been seen as an increasingly attractive option for treating Type 2 diabetes, may not be as effective against the disease as it was initially thought to be, according to a new report. The study found that many obese Type 2 diabetics who undergo gastric bypass surgery do not experience a remission of their disease, and of those that do, about a third redevelop diabetes within five years of their operation.

The findings contrast the growing perception that surgery for many diabetics could be something of a cure. Earlier this year, two widely publicized studies reported that surgery worked better than drugs, diet and exercise in causing a remission of Type 2 diabetes in overweight people whose blood sugar was out of control, leading some experts to call for greater use of surgery in treating the disease. But the studies were small and relatively short, lasting under two years.

The latest study, published in the journal Obesity Surgery, tracked thousands of diabetics who had gastric bypass surgery for more than a decade. It found that many people whose diabetes at first went away were likely to have it return. While weight regain is a common problem among those who undergo bariatric surgery, regaining lost weight did not appear to be the cause of diabetes relapse. Instead, the study found that people whose diabetes was most severe or in its later stages when they had surgery were more likely to have a relapse, regardless of whether they regained weight.

“Some people are under the impression that you have surgery and you’re cured,” said Dr. Vivian Fonseca, the president for medicine and science for the American Diabetes Association, who was not involved in the study. “There have been a lot of claims about how wonderful surgery is for diabetes, and I think this offers a more realistic picture.”

The findings suggest that weight loss surgery may be most effective for treating diabetes in those whose disease is not very advanced. “What we’re learning is that not all diabetic patients do as well as others,” said Dr. David E. Arterburn, the lead author of the study and an associate investigator at the Group Health Research Institute in Seattle. “Those who are early in diabetes seem to do the best, which makes a case for potentially earlier intervention.”

One of the strengths of the new study was that it involved thousands of patients enrolled in three large health plans in California and Minnesota, allowing detailed tracking over many years. All told, 4,434 adult diabetics were followed between 1995 and 2008. All were obese, and all underwent Roux-en-Y operations, the most popular type of gastric bypass procedure.

After surgery, about 68 percent of patients experienced a complete remission of their diabetes. But within five years, 35 percent of those patients had it return. Taken together, that means that most of the subjects in the study, about 56 percent — a figure that includes those whose disease never remitted — had no long-lasting remission of diabetes after surgery.

The researchers found that three factors were particularly good predictors of who was likely to have a relapse of diabetes. If patients, before surgery, had a relatively long duration of diabetes, had poor control of their blood sugar, or were taking insulin, then they were least likely to benefit from gastric bypass. A patient’s weight, either before or after surgery, was not correlated with their likelihood of remission or relapse.

In Type 2 diabetes, the beta cells that produce insulin in the pancreas tend to wear out as the disease progresses, which may explain why some people benefit less from surgery. “If someone is too far advanced in their diabetes, where their pancreas is frankly toward the latter stages of being able to produce insulin, then even after losing a bunch of weight their body may not be able to produce enough insulin to control their blood sugar,” Dr. Arterburn said.

Nonetheless, he said it might be the case that obese diabetics, even those whose disease is advanced, can still benefit from gastric surgery, at least as far as their quality of life and their risk factors for heart disease and other complications are concerned.

“It’s not a surefire cure for everyone,” he said. “But almost universally, patients lose weight after weight loss surgery, and that in and of itself may have so many health benefits.”

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Ex-NASA Scientist’s Data Fears Come True

In 2007, Robert M. Nelson, an astronomer, and 27 other scientists at the Jet Propulsion Laboratory sued NASA arguing that the space agency’s background checks of employees of government contractors were unnecessarily invasive and violated their privacy rights.

Privacy advocates chimed in as well, contending that the space agency would not be able to protect the confidential details it was collecting.

The scientists took their case all the way to the Supreme Court only to lose last year.

This month, Dr. Nelson opened a letter from NASA telling him of a significant data breach that could potentially expose him to identity theft.

The very thing he and advocates worried about had occurred. A laptop used by an employee at NASA’s headquarters in Washington had been stolen from a car parked on the street on Halloween, the space agency said.

Although the laptop itself was password protected, unencrypted files on the laptop contained personal information on about 10,000 NASA employees — including details like their names, birth dates, Social Security numbers and in some cases, details related to background checks into employees’ personal lives.

Millions of Americans have received similar data breach notices from employers, government agencies, medical centers, banks and retailers. NASA in particular has been subject to “numerous cyberattacks” and computer thefts in recent years, according to a report from the Government Accountability Office, an agency that conducts research for Congress.

Even so, Dr. Nelson, who recently retired from the Jet Propulsion Laboratory, a research facility operated by the California Institute of Technology under a contract with NASA, stands out as a glaring example of security lapses involving personal data, privacy advocates say.

“To the extent that Robert Nelson looks like millions of other people working for firms employed by the federal government, this would seem to be a real problem,” said Marc Rotenberg, the executive director of the Electronic Privacy Information Center, an advocacy group which filed a friend-of-the-court brief for Dr. Nelson in the Supreme Court case.

In a 2009 report titled “NASA Needs to Remedy Vulnerabilities in Key Networks,” the Government Accountability Office noted that the agency had reported 1,120 security incidents in fiscal 2007 and 2008 alone.

It also singled out an incident in 2009 in which a NASA center reported the theft of a laptop containing about 3,000 unencrypted files about arms traffic regulations and wind tunnel tests for a supersonic jet.

“NASA had not installed full-disk encryption on its laptops at all three centers,” the report said. “As a result, sensitive data transmitted through the unclassified network or stored on laptop computers were at an increased risk of being compromised.” Other federal agencies have had similar problems. In 2006, for example, the Department of Veteran’s Affairs reported the theft of an employee laptop and hard drive that contained personal details on about 26.5 million veterans. Last year, the G.A.O. cited the Internal Revenue Service for weaknesses in data control that could “jeopardize the confidentiality, integrity, and availability of financial and sensitive taxpayer information.”

Also last year, the Securities and Exchange Commission warned its employees that their confidential financial information, like brokerage transactions, might have been compromised because an agency contractor had granted data access to a subcontractor without the S.E.C.’s authorization.

In a phone interview, Dr. Nelson, the astronomer, said he planned to hold a news conference on Wednesday morning in which he would ask members of Congress to investigate NASA’s data collection practices and the recent data breach.

Robert Jacobs, a NASA spokesman, said the agency’s data security policy already adequately protected employees and contractors because it required computers to be encrypted before employees took them off agency premises. “We are talking about a computer that should not have left the building in the first place,” Mr. Jacobs said. “The data would have been secure had the employee followed policy.”

The government argued in the case Dr. Nelson filed that a law called the Privacy Act, which governs data collection by federal agencies, provided the scientists with sufficient protection. The case reached the Supreme Court, which upheld government background checks for employees of contractors. The roots of Dr. Nelson’s case against NASA date back to 2004 when the Department of Homeland Security, under a directive signed by President George Bush, required federal agencies to adopt uniform identification credentials for all civil servants and contract employees. As part of the ID card standardization process, the department recommended agencies institute background checks.

Several years later, when NASA announced it intended to start doing background checks at the Jet Propulsion Laboratory, Dr. Nelson and other scientists there objected.

Those security checks could have included inquiries into medical treatment, counseling for drug use, or any “adverse” information about employees such as sexual activity, or participation in protests, said Dan Stormer, a lawyer representing Dr. Nelson.

But Dr. Nelson and other long-term employees of the lab challenged the legality of those checks, arguing that they violated their privacy rights. NASA, they said, had not established a legitimate need for such extensive investigations about low-risk employees like themselves who did not have security clearances or handle confidential information. Dr. Nelson, for example, specializes in solar system science — concerning, for example, Jupiter’s moon Io and Titan, a moon of Saturn — and publishes his work in scientific journals

“It was an invitation to an open-ended fishing expedition,” Dr. Nelson said of the background checks.

In friend of the court briefs for Dr. Nelson, privacy groups cited many data security problems at federal agencies, arguing that there was a risk that NASA was not equipped to protect the confidential details it was collecting about employees and contractors.

In 2008, the United States Court of Appeals for the Ninth Circuit in San Francisco temporarily halted the background checks, saying that the case had raised important questions about privacy rights. But last year, the Supreme Court upheld the background investigations of employees of government contractors.

Dr. Nelson said he retired from the Jet Propulsion Laboratory last June rather than submit to a background check. He now works as a senior scientist at the Planetary Science Institute of Tucson.

NASA has contracted with ID Experts, a data breach company, to help protect employees whose data was contained on the stolen laptop against identity theft. Mr. Jacobs, the NASA spokesman, said the agency has encrypted almost 80 percent of its laptops and plans to encrypt the rest by Dec. 21. He added that he too received a letter from NASA warning that his personal information might have been compromised by the laptop theft.

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Cyber Monday sales up 17% to nearly $2 billion, exceeding forecast

Cyber Monday online sales beat forecasts by nearly half a billion dollars.

ComScore on Monday predicted that Cyber Monday would generate $1.5 billion in online sales, but according to Adobe, the shopping day ended up raking in $1.98 billion, which was a 17% increase compared to last year.

That practically doubled online Black Friday sales, which topped $1 billion this year for the first time, according to ComScore.

Video chat: Finding deals on Cyber Monday

And if Cyber Monday's online sales weren't impressive enough, Adobe says that mobile shopping doubled from last year and accounted for 22% of Cyber Monday sales.

On the opposite end of that spectrum was social, which referred only a dismal 2% of total site visits on Cyber Monday. Even worse for Facebook and Twitter is the fact their number of referrals stayed the same as last year's, while Pinterest's referrals for the holiday grew 105%, accounting for 15% of social referrals.

As for what people were buying, Adobe said that toys and sporting goods led the way, followed by health and beauty. Home and auto was the third most selling category.

Adobe said you can follow its tracking of online holiday shopping with this tool, which keeps track of current sales and estimates how the rest of the holiday shopping days will fare.

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Bank Hackers Deny They're Agents of Iran

A slew of American officials have blamed Iran for attacks on the servers of Bank of America, Well Fargo, HSBC, and other western banks. But the hackers taking credit for the sophisticated distributed denial-of-service strikes say that’s all wrong; they claim they hit the financial institutions because they were pissed off about “The Innocence of Muslims,” the infamous viral video making fun of the Prophet Muhammad. Tehran didn’t have a thing to do with it.

“We are not dependent on any government. We merely wanted to protest against the insulting movie,”
people claiming to be part of the Izz ad-Din al-Qassam Cyber Fighters tell the Flashpoint Partners research group in an interview (.pdf).

There’s no telling if the denial is legitimate — or if the people being interviewed are behind the bank attacks at all. But the interviewees are dead on when they say that ”there are some ones who want to portray this action [the bank hacks] as political.” Shortly after the U.S. Defense Secretary talked about the bank jobs, unnamed American officials began whispering that they were the work of Iran.

The bank attacks this fall weren’t typical DDOS operations, which merely seek to overload servers with junk traffic. For one, they generated up to 100 gigabits per second of data — 10 to 20 times more than what it usually takes to knock a site offline. The attackers overwhelmed routers, servers, and server applications all at once; typical DDOSers target just one. They specifically targeted the banks’ Domain Name Server architecture, which translates website names (“cash.com”) into numerical internet-protocol addresses. And their traffic largely came from legitimate IP address, making it tough for the banks to filter. The websites for PNC Bank, Wells Fargo, Bank of America, and other institutions buckled in quick succession; customers had trouble transferring funds and paying bills online.

Prolexic, a company that specializes in stopping these sorts of attacks, blamed a toolkit called “itsoknoproblembro” for the DDOS assaults. The Cyber Fighters took responsibility as each site went down. But some security researchers believed the attacks to be so sophisticated, they could’ve only been pulled off with government help. ”This isn’t consistent with what hacktivists are capable of,” Michael Smith, a security specialist at Akamai, said in September.

Pretty soon, American politicians starting blaming one government in particular: the one in Tehran. ”I think this was done by Iran and the Quds Force, which has its own developing cyber-attack capacity,” Sen. Joe Lieberman told C-Span around the same time. “And I believe it was in response to the increasingly strong economic sanctions that the United States and our European allies have put on Iranian financial institutions.” The press began to speculate that the bank attacks were in some way a payback for the U.S.-led campaign of online sabotage against Iran’s nuclear program.

In October, Defense Secretary Leon Panetta raised the stakes further, warning of a cyber strike “as destructive as the terrorist attack of 9/11.” He then presented as harbingers of the coming catastrophe an attack on the Saudi energy company ARAMCO — as well as the DDOSes on the banks. “While this kind of tactic isn’t new, the scale and speed was unprecedented,” he added.

In the following day, anonymous U.S. officials told reporters that Iran was behind both attacks, without sharing details about why they thought this was so.

The al-Qassam group says that’s baloney, claiming that they’re merely “volunteer hackers which share the beliefs about [the] insulting video and [the] protest against it.”

When Flashpoint asked if the organization was “supported or funded by any government,” the group’s representatives simple answered: “Nope.”

There’s no guaranteeing the group is telling the truth, of course. Nor is there any assurance that the people who spoke with Flashpoint are really from the al-Qassam organization. The interviewees even claim that some statements previously attributed to the group are false. That’s one of the tricky things about cyber security. While the systems for tracing an attack back to a particular computer are much improved, there are often lingering questions about who’s really behind the hack.

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Disney Channel to debut ‘Sofia the First’ Jan. 11

NEW YORK (AP) — Disney says its animated children‘s series “Sofia the First” will premiere Jan. 11 on the Disney Channel and Disney Junior networks.

Created for kids ages 2 to 7, “Sofia the First” is about a young girl who becomes a princess and learns that honesty, loyalty and compassion are what makes a person royal.

Sofia is voiced by “Modern Family” actress Ariel Winter, and her mother is played by “Grey’s Anatomy” star Sara Ramirez.

Last week’s premiere of the “Sofia the First” animated movie drew a total audience of more than 5 million viewers. It was the year’s top-rated cable TV telecast among kids ages 2 to 5.

In the series’ debut episode, Sofia strives to become the first princess to earn a spot on her school’s flying derby team.

Entertainment News Headlines – Yahoo! News

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Global Update: Investing in Eyeglasses for Poor Would Boost International Economy

BSIP/UIG Via Getty Images

Eliminating the worldwide shortage of eyeglasses could cost up to $28 billion, but would add more than $200 billion to the global economy, according to a study published last month in the Bulletin of the World Health Organization.

The $28 billion would cover the cost of training 65,000 optometrists and equipping clinics where they could prescribe eyeglasses, which can now be mass-produced for as little as $2 a pair. The study was done by scientists from Australia and the Johns Hopkins Bloomberg School of Public Health.

The authors assumed that 703 million people worldwide have uncorrected nearsightedness or farsightedness severe enough to impair their work, and that 80 percent of them could be helped with off-the-rack glasses, which would need to be replaced every five years.

The biggest productivity savings from better vision would not be in very poor regions like Africa but in moderately poor countries where more people have factory jobs or trades like driving or running a sewing machine.

Without the equivalent of reading glasses, “lots of skilled crafts become very difficult after age 40 or 45,” said Kevin Frick, a Johns Hopkins health policy economist and study co-author. “You don’t want to be swinging a hammer if you can’t see the nail.”

If millions of schoolchildren who need glasses got them, the return on investment could be even greater, he said, but that would be in the future and was not calculated in this study.

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