President Delivers a New Offer on the Fiscal Crisis to Boehner

Joshua Roberts/Reuters

Speaker John A. Boehner returned to his office on Monday after meeting with President Obama.

WASHINGTON — President Obama delivered to Speaker John A. Boehner a new offer on Monday to resolve the pending fiscal crisis, a deal that would raise revenues by $1.2 trillion over the next decade but keep in place the Bush-era tax rates for any household with earnings below $400,000.

The offer is close to a plan proposed by the speaker on Friday, and both sides expressed confidence that they were closing in on a major deficit-reduction plan that could be passed well before January, when more than a half-trillion dollars in automatic tax increases and spending cuts would kick in.

Senior Republican aides said the speaker was to meet with House Republicans on Tuesday morning to discuss the state of negotiations. But they cautioned that obstacles remained.

“Any movement away from the unrealistic offers the president has made previously is a step in the right direction,” said Brendan Buck, a spokesman for Mr. Boehner. “We hope to continue discussions with the president so we can reach an agreement that is truly balanced and begins to solve our spending problem.”

The two sides are now dickering over price, not philosophical differences, and the numbers are very close.

Mr. Boehner had offered the president a deficit framework that would raise $1 trillion over 10 years, with the details to be settled next year by Congress’s tax-writing committees and the Obama administration. In response, Mr. Obama reduced his proposal to $1.2 trillion from $1.4 trillion on Monday at a 45-minute meeting with the speaker at the White House. That was down from $1.6 trillion initially.

The White House plan would permanently extend Bush-era tax cuts on household incomes below $400,000, meaning that only the top tax bracket, 35 percent, would increase to 39.6 percent. The current cutoff between the top rate and the next highest rate, 33 percent, is $388,350.

On spending, the two sides are also converging.

The White House says the president’s plan would cut spending by $1.22 trillion over 10 years, compared with $1.2 trillion in cuts from the Republicans’ initial offer. Of that, $800 billion is cuts to programs, and $122 billion comes from adopting a new measure of inflation that slows the growth of government benefits, especially Social Security. The White House is also counting on $290 billion in savings from lower interest costs on a reduced national debt.

Of the $800 billion in straight cuts, the president said half would come from federal health care programs; $200 billion from other so-called mandatory programs, like farm price supports, not subject to Congress’s annual spending bills; $100 billion from military spending; and $100 billion from domestic programs under Congress’s annual discretion.

To make all this happen, Mr. Obama proposed fast-track procedures to help Congressional tax writers overhaul the individual and corporate tax code and make changes to other programs.

Senior Republican aides made it clear that differences remain. For instance, they say the president is still pressing for $1.3 trillion in higher taxes because the change in the way inflation is calculated would not only slow the growth of spending but also raise more revenue by slowing the rate at which tax brackets rise each year with the cost of living. That would mean that incomes would probably grow faster than the rise in tax brackets, pushing people more quickly into higher tax rates.

They also disagree with the president over counting lower interest payments on the national debt as savings.

“A proposal that includes $1.3 trillion in revenue for only $930 billion in spending cuts cannot be considered balanced,” said another spokesman for Mr. Boehner, Michael Steel, using the Republicans’ calculation for the president’s offer.

The president is also insisting on some protections for what he has called the “most vulnerable populations,” which Republican aides said they had not been expecting. The new inflation calculations, for instance, would probably not affect wounded veterans and disabled people on Supplemental Security Income.

And Mr. Obama is sticking by his request for additional upfront spending on infrastructure and an extension of expiring unemployment benefits.

He would also secure some tax and policy changes long sought by both parties but unattainable in the context of smaller budget deals. His proposal would permanently extend popular business tax breaks like the credit for corporate research and development, permanently stop the expansion of the alternative minimum tax so it does not affect more of the middle class, and stop a long-planned and deep cut to Medicare health providers, which Congress has never had the stomach to allow to kick in.

To keep the country from returning to fiscal showdowns, Mr. Obama wants the government’s borrowing limit to rise high enough to take the issue off the table for two years, although he said that Congress could periodically weigh in and try to override a presidential lifting of the debt ceiling, should it want to.

Senior Republican aides made it clear on Monday night that the plan was not what the speaker had wanted. He had proposed higher income tax rates on income over $1 million. That revenue would be supplemented by reinstating a provision in the tax code — phased out by the Bush-era tax cuts — that automatically limits tax deductions and credits for the affluent. The speaker was also ready to accept a White House proposal from Mr. Obama’s first days in office that would limit tax deductions to 28 percent, trimming back deductions for charitable giving and other activities from the top rate paid by the giver, 35 percent currently.

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Obama promises Newtown, Conn., he'll do more to protect children

NEWTOWN, Conn. — Before a town devastated by a rampage against its children, and a nation wondering how it could happen again, President Obama vowed to use the power of his office to prevent such calamities and fulfill what he called America's foremost obligation.

"Can we honestly say that we're doing enough to keep our children, all of them, safe from harm?" Obama asked. "I have been reflecting on this in the past few days, and if we are honest with ourselves, the answer is no. We are not doing enough and we will have to change."

His remarks departed from similar speeches after other mass shootings, when he made vague calls for conversation but did not promise action. Though he made no specific policy proposals Sunday, his statements strongly signaled a political battle to come over gun control.

"In the coming weeks I will use whatever power this office holds to engage my fellow citizens from law enforcement to mental health professionals to parents and educators in an effort aimed at preventing more tragedies like this. Because what choice do we have? We can't accept events like this as routine.

"Are we really prepared to say we are powerless in the face of such carnage? That the politics are too hard? Are we prepared to say such violence visited on our children year after year after year is somehow the price of our freedom?"

Obama's speech Sunday evening capped a cold, rainy day in Newtown that seemed to augur the toll setting in from Friday's shooting. Residents huddled together in their homes, sought solace in churches and set up makeshift memorials for the 20 first-graders and six staff members killed at Sandy Hook Elementary School. Funerals were set to begin Monday.

"Everyone is trying to sit together and support each other right now," said Kalianna Faust, 16, a student serving coffee at Caraluzzi's grocery store. Between shifts, Faust had been obsessively scrolling through her friends' Twitter and Facebook accounts, reading tributes and gazing forlornly at photographs of the dead children. Her 15-year-old sister, Monica, spent the weekend holed up in sorrow in her bedroom. Kalianna ventured out only on Saturday to light candles at the St. Rose of Lima Catholic Church.

"We just hold each other and watch the news," she said.

Many turned to St. Rose for comfort. Even the normally sparse 7:30 a.m. Mass was filled to capacity Sunday. The vaulted red-brick church, set behind stately trees, lost eight young members Friday and has eight funerals to prepare.

People came to find a shred of peace, to memorialize angels that so recently sat and fidgeted among them in the pews. But they met only new despair. During the noon Mass, Msgr. Robert Weiss abruptly interrupted the sermon to evacuate the building; a threat had been called into the church's offices.

"It was a menacing call that threatened to disrupt the Mass in a violent way," said a stoic Brian Wallace, spokesman for the diocese, standing in front of the church.

Filing out, people were "distressed" and "very sad," he said. "There was some anger. But no panic. We have seen incredible dignity in the faces of these people."

Police searched the premises and determined there was no danger, but the day's events were canceled.

"I don't think anyone can be surprised about anything after what has happened," Wallace said.

Authorities continued Sunday to release details about the shooting, but nothing to answer why it happened.

The gunman, Adam Lanza, 20, carried hundreds of bullets when he shot his way into the school and fired a Bushmaster .223 semiautomatic rifle at the children and adults, Connecticut State Police Lt. J. Paul Vance said Sunday. Lanza then shot himself in the head with a Glock 10-millimeter handgun.

"The Bushmaster was used in the school, in its entirety," Vance said.

Lanza carried multiple, high-capacity magazines for the rifle, each with 30 rounds, and multiple magazines for both handguns, with "hundreds of bullets," Vance said. He was also armed with a Sig Sauer pistol. A shotgun, the type of which was not identified, was found in the trunk of his car outside the school.

Before going to the school, Lanza shot his mother in the head multiple times, Vance said. Authorities did not say what type of gun he used on Nancy Lanza, 52.

The fact that a type of assault weapon — federally banned until 2004 — was used to kill 6- and 7-year-old children, renewed debate on gun control in Connecticut and Washington.

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Alt Text: How to End an Argument on the Internet

The problem with arguing on the Internet is…

Let me start over. There is obviously more than one problem with arguing on the Internet.

One of the problems with arguing on the Internet is…

Wait, no. Really, Internet arguments are intrinsically a problem, and pointing out “a problem” with them is like trying to point out one of the unpleasant implications of racial cleansing. Let’s try that again.

A specific aspect of Internet arguments that does not in any way mitigate their terribleness is this: They can’t be won.

All good things come to an end. Internet arguments never come to an end. You don’t need me to finish the syllogism. In the absence of an end condition, there’s only whoever has the last word. So all online arguments come down to the two people who just will not shut up. They’re like contestants in a Fifties-era dance marathon, each bodily dragging their own limp argument around the dance floor in hopes that the other will collapse first.

And much like Fifties-era dance marathons led directly to the Bay of Pigs crisis and the invention of non-dairy creamer, the endless arguments of the Internet can only lead to horror and pain.

The only solution is to come up with a way to declare a winner or a loser, and agree as a society that when that point is reached, the argument is over, the Zambonis come out on the ice, and the contenders can and should hit the showers. Figuratively, of course. People who argue endlessly on the Internet are unlikely to literally take a shower.

I have some proposed end conditions. But before I get started, let me say this: I know a lot of you out there are shouting “Godwin!” Godwin’s Law merely states that eventually, any argument will involve a comparison to Nazis in general or Hitler specifically. Some people have misinterpreted it to mean that once Nazis are brought up, the argument is over. While I applaud the principle, in practice it makes it very difficult to discuss European history; the films of Charles Chaplin; or who, among those who surf, must die.

Having said that, here are my proposed rules:

* If you say something along the lines of “the moderators might ban me for saying this, but…” then you lost.

Anyone who says “well, ban me if you want to, but…” is actually saying “in the name of a loving God, please ban me because I am losing this argument so badly that my only hope of escaping it with a shred of dignity is if I can make myself out to be some sort of martyr to free speech.” You asked for it, you got it, Troll-ota.

* If you claim to have supporting evidence available online, but instead of linking to it you say “Look it up yourself,” you lose.

Similarly to the banning thing, “look it up yourself” clearly means “please please please don’t look it up yourself.” It’s an admission of failure.

* If you invoke Occam’s Razor, or “the burden of proof,” you lose.

If you think Occam’s Razor is a way to prove something is true, you don’t understand Occam’s Razor. Occam merely provided a way of choosing among hypotheses to test, not a way of avoiding testing them. And in an online argument, the burden of proof is upon whomever most wants to convince the other guy, end of story.

* If you invoke the name of a logical fallacy without explaining its relevance, you lose.

Logical fallacies are not Harry Potter spells. You don’t just get to shout them out and wiggle your wand to make magic happen. Plus, there’s a logical meta-fallacy: Just because someone’s making an error in reasoning doesn’t mean they’re wrong.

* If you claim to be winning, you lose.

This should be self-evident: If you’re so desperate that you have to tell someone you’re winning, you’re obviously not.

* If you make a reference to Honey Boo Boo, you lose.

There’s no rhetorical basis for this, I’m just freaking tired of hearing about Honey Boo-Boo.

[Born naked, helpless and unable to provide for himself, Lore Sjöberg overcame these handicaps to become a logician, a magician, and a patrician.]

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Hollywood hacker honed his skills for years

LOS ANGELES (AP) — Long before Christopher Chaney made headlines by hacking into the email accounts of such stars as Scarlett Johansson and Christina Aguilera, two other women say he harassed and stalked them online.

The women, who both knew Chaney, say their lives have been irreparably damaged by his actions. One has anxiety and panic attacks; the other is depressed and paranoid. Both say Chaney was calculated, cruel and creepy: he sent nude photos they had taken of themselves to their family members.

Their accounts as cybervictims serve as a cautionary tale for those, even major celebrities, who snap personal, and sometimes revealing photos.

Chaney, 35, of Jacksonville, Fla., is set to be sentenced Monday and could face up to 60 years in prison after pleading guilty to nine felony counts, including wiretapping and unauthorized access to a computer, for hacking into email accounts of Aguilera, Johansson and Mila Kunis.

Aguilera said in a statement that although she knows that she’s often in the limelight, Chaney took from her some of the private moments she shares with friends.

“That feeling of security can never be given back and there is no compensation that can restore the feeling one has from such a large invasion of privacy,” Aguilera said.

Prosecutors said Chaney illegally accessed the email accounts of more than 50 people in the entertainment industry between November 2010 and October 2011. Aguilera, Kunis and Johansson agreed to have their identities made public with the hopes that the exposure about the case would provide awareness about online intrusion.

The biggest spectacle in the case was the revelation that nude photos taken by Johansson herself and meant for her then-husband Ryan Reynolds were taken by Chaney and put on the Internet. The “Avengers” actress is not expected to attend the hearing, but she has videotaped a statement that may be shown in court.

Some of Aguilera’s photos appeared online after Chaney sent an email from the account of her stylist, Simone Harouche, to Aguilera asking the singer for scantily clad photographs, prosecutors said.

Chaney forwarded many of the photographs to two gossip websites and another hacker, but there wasn’t evidence he profited from his scheme, authorities said.

For the two women, who were only identified in court papers by their initials, their encounters with Chaney went from friendly to frightening.

One of the women, identified by the initials T.B., said she first met Chaney online in 1999 when she was 13 years old. She began talking with a girl named “Jessica” that later turned out to actually be Chaney.

Chaney figured out his victims’ email passwords and security questions and set a feature to forward a copy of every email they received to an account he controlled.

The woman said that in February 2009 her friends contacted her and let her know that several nude photos of her were uploaded to a public gallery. A year later, Chaney sent a link to a photo-sharing website he created and had her nude pictures sent to her father.

She said she spends several hours a week monitoring the Internet for her personal information and breaks into a sweat whenever she receives a Google alert email notifying her that her name has been mentioned online.

In her letter to U.S. District Judge S. James Otero, she said she thinks Chaney won’t stop and she still feels like he has control over her reputation, relationships and career.

Chaney was arrested in October 2011 as part of a yearlong investigation of celebrity hacking that authorities dubbed “Operation Hackerazzi.” Chaney’s computer hard drive contained numerous private celebrity photos and a document that compiled their extensive personal data, according to a search warrant.

Chaney has since apologized for what he has done, but prosecutors are recommending a nearly six-year prison sentence for him. They also want him to pay $ 150,000 in restitution, including about $ 66,000 to Johansson.

The second woman, identified in court papers only as T.C., said she was a close friend of Chaney’s for more than a decade. As early as 2003 she noticed her passwords were being reset and email she hadn’t looked at had been read by someone. She also said Chaney forwarded an invitation to an online photo gallery to her brother, who eventually saw naked pictures of her.

The woman said the night before she got married, Chaney deleted her email account and she was unable to correspond with a notary until she created a new email address.

In her letter to the judge, the woman said she’s been broken by the physical and emotional toll and can no longer recall what it was like to have a private life.

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The New Old Age Blog: In the Middle: Why Elderly Couples Fight

George and Gracie (let’s call them that because using their real names would make them even unhappier than they already appear to be) are in their 80s and married for more than 65 years. Until recently they seemed to ride the waves that are inevitable in any marriage that spans nearly seven decades; through good and bad, they were partners and best friends.

But lately — ever since her hospitalization and his fall — they have been arguing more bitterly than usual (“Do you have to make such a mess in the kitchen?”), criticizing each other (“Why haven’t you dealt with the insurance company yet?”), withdrawing from each other, and generally making each other more miserable, more often than ever before.

This kind of degenerative relationship is not uncommon among the elderly in even the happiest marriages, marriage therapists and geriatricians said. But that is small comfort to either the couple in the middle of the maelstrom, or the children who care for them, as evidenced by a number postings on caregiver blogs. As some of the children have wondered there: “Why can’t we all just get along?”

Therapists and others who work with the elderly said the first step to addressing the problem is understanding where it came from.

“A key question is whether the marital bickering is part of a lifelong marital style or a change,” said Dr. Linda Waite, director of the Center on Aging at NORC/University of Chicago. Is it new behavior – or just new to the grown children who are suddenly so deeply enmeshed in their parents’ lives that they are only now noticing that something is amiss?

How much of the problem is really just the marriage style? “Some couples like to fight and argue – it keeps their adrenaline going,” said Dr. Nancy K. Schlossberg, professor emerita of counseling psychology at the University of Maryland and author of “Overwhelmed: Coping with Life’s Ups and Downs.”

Sometimes the best judges of whether there is a problem are outsiders, said Dr. William Dale, chief of geriatrics at the University of Chicago Geriatrics Medicine. Pay attention if someone says, “‘Gee, Mom seems more argumentative or withdrawn than the last time I saw her,’” Dr. Dale advised.

If the tone or severity of the marital tensions seem new, then it is important to find out why. The causes could be mental or physical, doctors say.

On the mental front, increased anger and fighting could be one of the first signs of mild cognitive impairment, a precursor of dementia or Alzheimer’s, in one or both of the spouses, said Dr. Lisa Gwyther, director of the Duke Center for Aging Family Support Program and Associate Professor in the Department of Psychiatry and Behavioral Sciences.

Dr. Dale concurs: “There is good evidence that the earliest signs of cognitive impairment are often emotional changes” — anger, anxiety, depression — “rather than cognitive ones” — memory, abstract thought.

But these early signs of cognitive decline can be so subtle that neither the spouses themselves, or their grown children, recognize them for what they are, Dr. Gwyther said. So husband and wife blame each other for the changes and allow feelings of hurt and resentment to grow.

Withdrawing from activities that used to give them pleasure can be a telltale sign of mild cognitive impairment – and can trigger anger and arguments.

“In one couple, the husband just didn’t want to participate in the holidays — the wife got angry and said he was being lazy and stubborn,” said Dr. Gwyther. But the truth was that his cognitive decline made all the activity overwhelming, and he didn’t want anyone to know that he was anxious about not remembering everyone’s names and embarrassing himself.

Suspicion and paranoia can also accompany mild cognitive decline and precipitate distrust and hurtful accusations. Dr. Gwyther recalled another woman who “called her daughter frantic because she said her husband dropped her at her chemo appointment, went to park the car, and didn’t return to get her.” The woman couldn’t imagine that her husband could possibly have lost his sense of time and direction, Dr. Gwyther added. She took it personally, complaining to her daughter that “your father doesn’t seem to care any more.”

Dr. Dale told of a spouse who accused her mate of infidelity because “she was convinced that when he was out grocery shopping he was really having an affair.”

Hoarding, an early symptom of mild cognitive impairment, can also create tension in a marriage. (For new treatments, see this recent post by my colleague Paula Span.)

When one couple came to a counseling session with Dr. Norman Abeles, emeritus professor of psychology and former director of psychological clinic at Michigan State University, the hoarding spouse finally said, “she did it because she thought that they would run out of money, even though there was enough money to go around.” Dr. Abeles said that incident led to her diagnosis of mild cognitive impairment.

Adding to the confusion, mild cognitive impairment (M.C.I.) comes and goes. “There are good days and bad days, good hours and bad hours,” said Dr. Gwyther. “Alzheimer’s and dementia don’t start on Tuesday — it’s a slow insidious onset.” But the diagnosis is becoming more common: The Institute for Dementia Research and Prevention predicts that 1 in 6 women, and 1 in 10 men, who live past the age of 55 will develop dementia in their lifetime.

“Spouses find it difficult to know when their partner with M.C.I. is acting differently (usually badly) due to the advancing illness or due to ‘willful’ personality issues,” said Dr. Dale, citing a 2007 study in the journal Family Relations exploring the problems this can create for couples.

Blaming is often easier than understanding. Another of Dr. Gwyther’s patients was furious at her husband for not filing their taxes. “He’s a C.P.A.,” she said. “How could we owe back taxes?” It did not occur to her that he might be unable to handle that task — and was too frightened about his deteriorating mental focus to let her know.

But as harmful as mental decline can be for a marriage, it is just part of the equation. Physical ailments – even those that seem completely unrelated to marital relations – “can upset the equilibrium of the marriage,” according to a study in the Canadian Medical Association Journal.

“Most men get angry at what’s happened to them when they get ill, women get angry and scared when he’s not what he used to be — so they fight,” said Dr. Schlossberg.

Chronic illnesses, like diabetes, arthritis and heart disease, can have a strong negative effect on mood, said Dr. Waite, who will soon be publishing a study on the subject. Diabetes is so often accompanied by depression that, Dr. Waite said, “one of my colleagues argues that that it is even part of the disease.”

And ailments can have an effect on a couple’s sex life — which can compound the marital problems, doctors said.

“Diabetes brings on neuropathy,” said Dr. Waite. “That means touching and feeling in sex is not as rewarding.” Without the pleasures of affectionate touching — whether a passing hug at the sink, or more — tensions can build. That’s why, if a couple is having problems with sex, they are more likely to have problems in the relationship — and vice versa, according to a 2007 New England Journal of Medicine study of sex and health among older adults.

Other changes in circumstances — retirement, shifting roles, the loss of autonomy, disparities in health and abilities — can wreak havoc. Losing independence can feel like losing oneself — and if you don’t know who you are any more, how can you know how to relate to your spouse?

“Fighting may come from a misguided notion that you can regain power by asserting it over your spouse,” said Dr. Schlossberg, whose observations are echoed in a 1984 study in the Canadian Journal of Medicine. “It doesn’t work, it’s false power – but they’ll try anything.”

The sheer exhaustion that can come from being the caregiving spouse is also bound to “make them stressed and angry,” said Dr. Waite. Not to mention guilty and resentful — never a prescription for happy marital relations.

“Part of the trap for the caregiver is the idea that you have to do it all, and the guilt you feel when you cannot live up to it,” said Dr. Gordon Herz, a psychologist in private practice in Madison, Wisc. Not surprisingly, resentment can soon follow, Dr. Herz added, because it’s hard to admit to anyone that, “‘this is too much for me.’”

What can outside caregivers — children or other loved ones — do about these golden marriages on the rocks? Should they intervene — or butt out? And can marital therapy help — or is it too late to change?

Share your thoughts and experiences — and tomorrow we’ll try to provide some advice from experts.

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DealBook: S.E.C. Says Asset Firm Manipulated Trades to Enrich Some Clients

Just a few years ago, sitting in his 19th-floor office with panoramic views of the Pacific Ocean, 3,000 miles from Wall Street, Peter J. Eichler Jr., had reached the top of the money management world.

His firm, Aletheia Research and Management, based in Santa Monica, Calif., controlled more than $10 billion. Mr. Eichler’s stellar investment performance attracted the likes of Goldman Sachs and Morgan Stanley, which entrusted him with millions of dollars of their clients’ money.

Late Friday, federal regulators accused Mr. Eichler of cheating some of his clients, the latest in a spate of legal troubles facing the 55-year old investor.

In a civil action filed in Federal District Court in Los Angeles, the Securities and Exchange Commission said that Mr. Eichler had perpetrated a “cherry-picking” scheme, steering profitable trades into his personal accounts while allocating money-losing investments into hedge funds that he managed.

Mr. Eichler’s scheme, the government said, allowed his accounts and those of favored clients to earn $4.1 million in illegal profits, while he saddled the hedge funds with trading losses of about $4.4 million.

“Aletheia and Eichler had an obligation to treat all clients with equal fairness, but instead they cherry-picked winners and losers and unfairly disadvantaged investors in two hedge funds to profit themselves,” said Michele Wein Layne, the head of the S.E.C.’s Los Angeles office.

In a statement issued through his lawyers, Mr. Eichler said he was cooperating with the S.E.C. and that his firm “did not intentionally or otherwise harm any of its investment products or its clients.”

Named after the Greek word for “truth and disclosure,” Aletheia was started in 1997 by Mr. Eichler, a former Bear Stearns executive.

An inspired salesman, Mr. Eichler promoted a buy-and-hold investment style. In meetings, he liked to compare himself to the celebrated stock pickers Warren E. Buffett and Peter Lynch. For years, Aletheia trumpeted its track record in a splashy full-page ad in Barron’s, the financial weekly.

Mr. Eichler lived like a Hollywood mogul. Until recently, a driver chauffeured him around Los Angeles in a Maybach sedan, shuttling him between Aletheia’s headquarters and his multimillion-dollar homes in Pacific Palisades and Malibu.

Aletheia’s outsize returns attracted marquee clients like the pension fund of Royal Dutch Shell and state pensions in Louisiana and Oklahoma. A number of brokerage houses, including Goldman and Morgan Stanley, anointed him a “preferred manager” and placed clients’ money with him.

But the government says that since 2009, Mr. Eichler favored certain clients while shortchanging others. Mr. Eichler executed options trades — speculative, leveraged bets on stocks that magnify profits and losses — but waited about an hour to allocate them. He then placed winning trades in his own accounts and those of certain special clients, the commission said; losing trades were diverted to a pair of hedge funds that he managed.

Trades assigned to Mr. Eichler’s personal accounts were profitable about 98 percent of the time, while only 32 percent of the trades allocated to the Aletheia hedge funds made money, according to the S.E.C.

The government’s complaint added to Mr. Eichler’s growing legal problems. Last month, his firm sought bankruptcy protection. The state of California has said it is owned more than $2 million in unpaid taxes and fines and has suspended Aletheia’s corporate status.

Mr. Eichler is also the defendant in two lawsuits that accuse him and his firm of improper conduct. A wrongful-termination complaint filed in 2010 by Roger Peikin, a co-founder of Aletheia, said that Mr. Eichler had “successfully rid himself of all internal controls, allowing him free rein to operate Aletheia as his personal fiefdom.”

And Proctor Investment Managers, a New York firm, sued Mr. Eichler over the terms of a deal in which Proctor had taken a 10 percent stake in Aletheia. Had it known about Mr. Eichler’s “penchant for dishonesty,” Proctor said, it would not have partnered with him.

Both lawsuits accuse Mr. Eichler of treating the company as his personal piggy bank, including flying private jets for personal use.

As part of the S.E.C. complaint, regulators said that Mr. Eichler had also violated the law by failing to inform its investors this year that his firm was in precarious financial condition.

The firm still has $1.4 billion in assets under management, according to a recent securities filing, though bankruptcy court documents suggest the number has dropped to as low as $250 million. Goldman and Morgan Stanley have cut their ties to Aletheia.

The criminal authorities have also taken an interest in Mr. Eichler and his firm. Last month, prosecutors in the tax division of the United States attorney’s office in Los Angeles asked the court to notify it of all pleadings made in the Aletheia bankruptcy case.

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In Connecticut, a mother coped silently with a troubled son

NEWTOWN, Conn. — On the outside, Nancy Lanza was the picture of contented motherhood: volunteering at her sons' school, gardening, keeping a picture-perfect home so well-ordered a neighbor described it as pristine.

Outside public view, say some who knew her, she had a struggle on her hands, and that was her son Adam: a brilliant but sometimes difficult boy.

Lanza battled with the school district over Adam and eventually quit her job, pulled him out of school and educated him at home, said her sister-in-law, Marsha Lanza.

"I know she had issues with the school. … In what capacity, I'm not 100% certain if it was behavior, if it was learning disabilities, I really don't know," Marsha Lanza told reporters. The investigation widened Saturday into the still-baffling shootings at Sandy Hook Elementary School in Newtown, Conn., with police releasing the identities of the 26 students and teachers they say Adam Lanza shot before turning the gun on himself.

His mother, police said, was shot at the family home before her son set out on his deadly rampage through the school.

"Adam, he was … definitely the challenge to the family in that house," Marsha Lanza said. "Every family has one. I have one. They have one. … But he was a very bright boy, he was smart."

Jim Leff, who knew Nancy Lanza casually through a friend, said he had been put off by an impression that she was high-strung, until he came to understand what she was trying to cope with as Adam's mother.

"Now that I've been filled in by friends about how difficult her troubled son … was making things for her, I understand that it wasn't that Nancy was overwrought about the trivialities of everyday life, but that she was handling a very difficult situation with uncommon grace," he wrote in a testimonial to her on his blog.

Neighbors said the Lanzas moved several years ago into the hilly neighborhood of graceful houses and pastoral views and immediately fit into the social scene, attending the picnic after the annual Labor Day parade and a rotating ladies' night at several homes.

By the accounts of some who knew her, Nancy Lanza, who grew up in rural New Hampshire, was comfortable using guns and kept several in the house.

Landscaper Dan Holmes said Lanza often talked about her gun collection, and about taking her sons target practicing. "One thing I will note is that she was a big, big gun fan," Leff wrote on his blog.

Police have said the three weapons found near Adam Lanza's body inside the school were legally purchased and registered to his mother.

Yet it appears that Adam may have tried to buy a weapon of his own before Friday's shootings. Just days before, two federal law enforcement officials say, the 20-year-old attempted to purchase a single "long gun" rifle from a Dick's Sporting Goods store in Canton, Conn., but was turned away because he did not want to wait for a required background check.

"He didn't want to wait the 14 days," said one source, declining to be identified because the case was still under review. "The sale did not take place."

Marsha Lanza, whose husband is the brother of Adam's father, Peter Lanza, said the entire family was trying to understand what happened. She said her sister-in-law never talked of being threatened by her son, or about any violence he had committed.

"And if he did, I know she wouldn't tolerate it," she said. "If he needed help, I know they would have gotten it for him.

"Because they were the type of parents — when they were married, as well as being separated — if the kids had a need, they would definitely fulfill it."

She said Nancy Lanza divorced in 2009 and was awarded the house and enough money — up to $12,450 a month in alimony, according to local news outlets that reviewed the divorce files — that she didn't have to work.

A law enforcement source said the couple were ordered to undergo parental counseling as a condition of their divorce, but another source familiar with the case said that is a standard condition of divorces in Connecticut involving a minor child.

Other Lanza family members emerged from seclusion Saturday, and, like Marsha Lanza, expressed disbelief.

"The family of Nancy Lanza shares the grief of a community and nation as we struggle to … comprehend the loss that we all share. ... On behalf of Nancy's mother and siblings, we reach out to the community… and express our heartfelt sorrow for their incomprehensible tragedy and loss of innocence that has affected so many," the family said in a statement.

It was read at a news conference by the sheriff of Rockingham County, N.H., where Nancy Lanza's brother is employed as a law enforcement officer.

Adam Lanza's father, Peter, also issued a statement.

"Our family is grieving along with all those who have been affected by this enormous tragedy. No words can truly express how heartbroken we are," it said. "We are in a state of disbelief and trying to find whatever answers we can. We too are asking why."

molly.hennessy-fiske@latimes.com

kim.murphy@latimes.com

richard.serrano@latimes.com

Hennessy-Fiske reported from Newtown, Murphy from Seattle and Serrano from Washington, D.C.

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Stunning Views of Glaciers Seen From Space

To a geologist, glaciers are among the most exciting features on Earth. Though they seem to creep along at impossibly slow speeds, in geologic time glaciers are relatively fast, powerful landscape artists that can carve out valleys and fjords in just a few thousand years.

Glaciers also provide an environmental record by trapping air bubbles in ice that reveal atmospheric conditions in the past. And because they are very sensitive to climate, growing and advancing when it’s cold and shrinking and retreating when its warm, they can be used as proxies for regional temperatures.

Over geologic time, they have ebbed and flowed with natural climate cycles. Today, the world’s glaciers are in retreat, sped up by relatively rapid warming of the globe. In our own Glacier National Park in Montana, only 26 named glaciers remain out of the 150 known in 1850. They are predicted to be completely gone by 2030 if current warming continues at the same rate.

Here we have collected 13 stunning images of some of the world’s most impressive and beautiful glaciers, captured from space by astronauts and satellites.

Above: Bear Glacier, Alaska

This image taken in 2005 of Bear Glacier highlights the beautiful color of many glacial lakes. The hue is caused by the silt that is finely ground away from the valley walls by the glacier and deposited in the lake. The particles in this “glacial flour” can be very reflective, turning the water into a distinctive greenish blue. The lake, eight miles up from the terminus of the glacier, was held in place by the glacier, but in 2008 it broke through and drained into Resurrection Bay in Kenai Fjords National Park.

The grey stripe down the middle of the glacier is called a medial moraine. It is formed when two glaciers flow into each other and join on their way downhill. When glaciers come together, their lateral moraines, long ridges formed along their edges as the freeze-thaw cycle of the glacier breaks off chunks of rock from the surrounding walls, meet to form a rocky ridge along the center of the joined glaciers.

Image: GeoEye/NASA, 2005.

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Robert Zemeckis on taking “Flight” with Denzel Washington – and his socks

LOS ANGELES (TheWrap.com) – When director Robert Zemeckis read the script for “Flight,” he knew he was ready to make another live-action movie.

The filmmaker’s previous three films – “The Polar Express,” “Beowulf” and “A Christmas Carol” – were shot in the motion-capture technique, in which human actions are recorded, then used to digitally animate computer characters.

“When this screenplay came along, I thought it shouldn’t be done in performance capture, it shouldn’t be done in 3D,” Zemeckis told the audience Wednesday night at TheWrap’s screening series in the Regent Theatre in Westwood. “I’m always led by the screenplay.”

He called his last three films in digital cinema “great training” for returning to a cast of live actors, given that motion-capture films are shot on much shorter schedules, and he only had 45 days for “Flight.”

“My biggest concern about doing a movie with so little time is, would the cast – when you do a drama like this – have enough days to get what you need?” he told TheWrap’s awards editor Steve Pond in the Q&A that followed the screening.

So he and star Denzel Washington spent hours hashing out the character of Captain Whip Whitaker, the alcoholic, if brilliantly talented, pilot who miraculously lands his nose-diving airliner but faces possible jail-time because he had alcohol and cocaine in his system at the time of the crash.

“That’s the really fun part of moviemaking, just understanding the character,” Zemeckis said. “Then deciding everything from what kind of car he’s going to drive to what color socks he’s going to wear.”

Pond looked surprised.

“By the time you started shooting, you knew what color Denzel’s socks should be?” he asked.

“If I’m on set and a set decorator asks, ‘what color should that door be?’ and I don’t have an answer, there’s a problem,” the 61-year-old director said. “I feel that, as a director, I should be able to answer that question of what socks he was wearing.”

But the pressure of returning to live-action and directing what he called a “serious, adult film” with hero cycles reminiscent of Greek mythology, is difficult. He needed a creative partner.

Screenwriter John Gatins, who had begun working on the screenplay in 1999, joined him for the month-and-a-half-long shoot in Georgia.

“I needed a creative soulmate, someone who’s there in the movie,” he said. “In the heart of battle to say everyone is suggesting we change this line and have the writer there to say, no way. We drove back and forth to the set in the same car every day.”

And this wasn’t the first time Zemeckis had filmed a massive plane crash.

His 2000 live-action movie, “Cast Away,” starring Tom Hanks, began with a FedEx plane plummeting down in the South Pacific.

“Cameras got smaller, which made things a lot easier,” he said. “We have a lot of digital effects, a lot of physical effects – everything is like a giant, sort-of special effects stew.”

And with a tight schedule and a tighter $ 31 million budget, Zemeckis had to reintroduce himself to those cameras and figure out ways to shoot certain scenes without building expensive sets.

In one, Washington and his co-stars Kelly Reilly and James Badge Dale – whose brief but important cameo as an oracle-like cancer patient gives the film its Greek-like quality – are furtively smoking cigarettes in the stairwell of a hospital.

The cramped space and inevitable audio echo make for a difficult scene to shoot – most directors of Zemeckis’ stature would just build a staircase to shoot in.

He didn’t.

“I couldn’t believe I was actually shooting that in a real stairwell,” he said, laughing. “That really brought me back to my film school experience.”

Movies News Headlines – Yahoo! News

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Dr. William F. House, Inventor of Cochlear Implant, Dies

Dr. William F. House, a medical researcher who braved skepticism to invent the cochlear implant, an electronic device considered to be the first to restore a human sense, died on Dec. 7 at his home in Aurora, Ore. He was 89.

The cause was metastatic melanoma, his daughter, Karen House, said.

Dr. House pushed against conventional thinking throughout his career. Over the objections of some, he introduced the surgical microscope to ear surgery. Tackling a form of vertigo that doctors had believed was psychosomatic, he developed a surgical procedure that enabled the first American in space to travel to the moon. Peering at the bones of the inner ear, he found enrapturing beauty.

Even after his ear-implant device had largely been supplanted by more sophisticated, and more expensive, devices, Dr. House remained convinced of his own version’s utility and advocated that it be used to help the world’s poor.

Today, more than 200,000 people in the world have inner-ear implants, a third of them in the United States. A majority of young deaf children receive them, and most people with the implants learn to understand speech with no visual help.

Hearing aids amplify sound to help the hearing-impaired. But many deaf people cannot hear at all because sound cannot be transmitted to their brains, however much it is amplified. This is because the delicate hair cells that line the cochlea, the liquid-filled spiral cavity of the inner ear, are damaged. When healthy, these hairs — more than 15,000 altogether — translate mechanical vibrations produced by sound into electrical signals and deliver them to the auditory nerve.

Dr. House’s cochlear implant electronically translated sound into mechanical vibrations. His initial device, implanted in 1961, was eventually rejected by the body. But after refining its materials, he created a long-lasting version and implanted it in 1969.

More than a decade would pass before the Food and Drug Administration approved the cochlear implant, but when it did, in 1984, Mark Novitch, the agency’s deputy commissioner, said, “For the first time a device can, to a degree, replace an organ of the human senses.”

One of Dr. House’s early implant patients, from an experimental trial, wrote to him in 1981 saying, “I no longer live in a world of soundless movement and voiceless faces.”

But for 27 years, Dr. House had faced stern opposition while he was developing the device. Doctors and scientists said it would not work, or not work very well, calling it a cruel hoax on people desperate to hear. Some said he was motivated by the prospect of financial gain. Some criticized him for experimenting on human subjects. Some advocates for the deaf said the device deprived its users of the dignity of their deafness without fully integrating them into the hearing world.

Even when the American Academy of Ophthalmology and Otolaryngology endorsed implants in 1977, it specifically denounced Dr. House’s version. It recommended more complicated versions, which were then under development and later became the standard.

But his work is broadly viewed as having sped the development of implants and enlarged understanding of the inner ear. Jack Urban, an aerospace engineer, helped develop the surgical microscope as well as mechanical and electronic aspects of the House implant.

Karl White, founding director of the National Center for Hearing Assessment and Management, said in an interview that it would have taken a decade longer to invent the cochlear implant without Dr. House’s contributions. He called him “a giant in the field.”

After embracing the use of the microscope in ear surgery, Dr. House developed procedures — radical for their time — for removing tumors from the back portion of the brain without causing facial paralysis; they cut the death rate from the surgery to less than 1 percent from 40 percent.

He also developed the first surgical treatment for Meniere’s disease, which involves debilitating vertigo and had been viewed as a psychosomatic condition. His procedure cured the astronaut Alan B. Shepard Jr. of the disease, clearing him to command the Apollo 14 mission to the moon in 1971. In 1961, Shepard had become the first American launched into space.

In presenting Dr. House with an award in 1995, the American Academy of Otolaryngology-Head and Neck Surgery Foundation said, “He has developed more new concepts in otology than almost any other single person in history.”

William Fouts House was born in Kansas City, Mo., on Dec. 1, 1923. When he was 3 his family moved to Whittier, Calif., where he grew up on a ranch. He did pre-dental studies at Whittier College and the University of Southern California, and earned a doctorate in dentistry at the University of California, Berkeley. After serving his required two years in the Navy — and filling the requisite 300 cavities a month — he went back to U.S.C. to pursue an interest in oral surgery. He earned his medical degree in 1953. After a residency at Los Angeles County Hospital, he joined the Los Angeles Foundation of Otology, a nonprofit research institution founded by his brother, Howard. Today it is called the House Research Institute.

Many at the time thought ear surgery was a declining field because of the effectiveness of antibiotics in dealing with ear maladies. But Dr. House saw antibiotics as enabling more sophisticated surgery by diminishing the threat of infection.

When his brother returned from West Germany with a surgical microscope, Dr. House saw its potential and adopted it for ear surgery; he is credited with introducing the device to the field. But again there was resistance. As Dr. House wrote in his memoir, “The Struggles of a Medical Innovator: Cochlear Implants and Other Ear Surgeries” (2011), some eye doctors initially criticized his use of a microscope in surgery as reckless and unnecessary for a surgeon with good eyesight.

Dr. House also used the microscope as a research tool. One night a week he would take one to a morgue for use in dissecting ears to gain insights that might lead to new surgical procedures. His initial reaction, he said, was how beautiful the bones seemed; he compared the experience to one’s first view of the Grand Canyon. His wife, the former June Stendhal, a nurse, often helped.

She died in 2008 after 64 years of marriage. In addition to his daughter, Dr. House is survived by a son, David; three grandchildren; and two great-grandchildren.

The implant Dr. House invented used a single channel to deliver information to the hearing system, as opposed to the multiple channels of competing models. The 3M Company, the original licensee of the House implant, sold its rights to another company, the Cochlear Corporation, in 1989. Cochlear later abandoned his design in favor of the multichannel version.

But Dr. House continued to fight for his single-electrode approach, saying it was far cheaper, and offered voluminous material as evidence of its efficacy. He had hoped to resume production of it and make it available to the poor around the world.

Neither the institute nor Dr. House made any money on the implant. He never sought a patent on any of his inventions, he said, because he did not want to restrict other researchers. A nephew, Dr. John House, the current president of the House institute, said his uncle had made the deal to license it to the 3M Company not for profit but simply to get it built by a reputable manufacturer.

Reflecting on his business decisions in his memoir, Dr. House acknowledged, “I might be a little richer today.”

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