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December 30, 2008

Eight members of the Levi family adjust to rockets in Ashkelon

ASHKELON, Israel (JTA) — Another rocket warning siren wails and eight members of the Levi family, including a grandmother and a newborn baby, quickly cram into the small bedroom made of reinforced concrete that serves as the family’s bomb shelter.

“Come on, come on! Get in!” they shout. Just before the heavy metal door slams shut, the family dog, Pick, quickly is whisked inside.

Standing shoulder to shoulder, they listen as the sound of the siren’s wail trails off, replaced by the thud of the rocket landing. Returning to the television news a few minutes later, they see it has landed a few blocks away at a local soccer stadium.

Earlier in the day, another rocket landed much closer — just across the street.

The Grad-type missile hit a construction site, killing Hani el Mahdi, a 27-year old construction worker from a Bedouin town in the Negev, and injured several other workers at the scene, some of them seriously.

“After hearing the boom this morning I’m just not myself,” said Geula Levi, 50, whose house quickly filled up with family members. “I’ve been trying to make lunch but I simply can’t seem to get anything together.”

Since the fighting began over the weekend, two of Levi’s adult children have moved back in, one of them bringing his wife and their 2-month-old daughter. The baby never leaves the reinforced room. Her mother, Vered, ventures out only to get food from the kitchen.

About 60 rockets were fired from Gaza into Israel on Monday. Many landed in Ashkelon, about 10 miles north of the Gaza Strip. Some reached as far as Ashdod, some 20 miles from Gaza, killing one woman as she bolted her car to take cover at a bus stop.

This week marks the first time these two major coastal cities have been subject to ongoing rocket barrages from Gaza. Ashkelon, home to some 120,000 people, had been targeted before, but hit only rarely. Ashdod had been considered out of range of Gaza’s rocket fire, but Hamas’ newly imported missiles — thought to be smuggled into the strip from Egypt during the six-month cease-fire that officially ended Dec. 19 — have increased the range of Gaza’s rockets.

Geula Levi said she was fully supportive of the army’s operation in Gaza, which by late Monday had killed 350 Palestinians in Gaza, most of them Hamas militiamen, according to reports.

“They learned their lessons from the Second Lebanon War so I think this time things will be conducted more intelligently,” she said of Israel’s military leaders.

“We’d rather suffer with the missiles now than become like Kiryat Shemona, which suffered for years,” said her eldest son, Avichai, 27.

Outside, the sound of Israeli artillery being fired into Gaza echoed in the streets, which were quiet and mostly empty. Staring out into the eerie emptiness were campaign posters for the upcoming election, including a billboard with a photograph of Foreign Minister Tzipi Livni next to the words, “The courage to say the truth.”

Livni’s party, along with those of her main rivals, canceled campaign events scheduled for this week.

At the entrance to Ashkelon, one of those rivals, Defense Minister Ehud Barak, the architect of the Israeli strike on Gaza, had his own image up on a billboard with the slogan “Looking truth in the face.”

For the people of Ashkelon, who are living their leaders’ “truths,” there was stoicism mixed with fear.

“It is miserable but it will go on for a while,” said Capt. David Biton, the police commander who oversees the southern district that includes half a million people and stretches from Ashdod to Sderot — all now within range of Gaza’s rockets.

Galit Ben-Asher Yonah, 37, said it was “the shock of my life” to discover that her home in Gan Yavne, a bedroom community near Ashdod, now has come under attack.

Gan Yavne was hit for the first time Sunday, and two more rockets fell Monday. It is the farthest point north that the rockets have reached to date.

Yonah, originally from Los Angeles, is the mother of two young daughters and a newborn son. She says she will be keeping all her children at home for the next few days.

“Never in my life did I think I would have to explain to my 5-year-old that we have to go to the basement because a bomb was falling,” she said. “And there she was guiding me, telling me to cover my head with my hands and stay away from the window as she was taught in nursery school.”

Tal, her 5-year-old, also brought down a snack of bananas and cookies for them after the first rocket fell, telling her in a serious but calm voice that they might be sitting in the basement, which is reinforced against rockets, for a while.

In nearby Nitzan, where many of the families who were evicted three years ago from the Gush Katif settlement bloc in Gaza live in temporary homes, there are no protective rooms to which to flee.

“We left the Kasssam rockets to get Katyushas instead,” said Yuval Nefesh, 41, referring to the longer-range Katyusha rockets now striking Israel from Gaza. Before, Palestinians relied almost exclusively on the Kassam, a crude rocket with a range of 10 miles and poor accuracy.

He shrugs when asked how the people are coping. “We pray,” he said.

Nefesh is still in touch with some of the Palestinians from Gaza he met while living there, and he said he has been talking to them by phone since the Israeli air assault began.

Outside, the Elikum Shwarma and Kebab restaurant was one of the few bustling businesses in Ashkelon on Monday. Delivery people were busy ferrying orders to the thousands of people staying indoors.

Avi Zarad, working the cash register, tried to maintain a cheerful atmosphere.

“We can’t send out a message of being stressed out,” he said. A few minutes later a siren sounded and, with no shelter to run to, the customers continued eating calmly.

The soccer stadium where a rocket fell an hour earlier is just across the road.

“We are getting used to it, but it’s a horrible reality,” said Kinneret Cohen, a restaurant worker preparing salads in the kitchen. “We just breathe deeply knowing we have to give the army time to do its work.”

Eight members of the Levi family adjust to rockets in Ashkelon Read More »

Forget Guitar Hero, Christian rockers already have Guitar Praise

Shows how little I know.

Yesterday I pondered whether “Guitar Hero” could save Christian music. Turns out “Guitar Praise” is already on the scene.

The game, which runs on PC or Mac, looks a lot like its secular sister but with a more holy set of songs from Caedmon’s Call, David Crowder Band, dc Talk, Relient K and a bunch of bands I’ve never heard of.

“Grab the guitar and play along with top Christian bands!  Shred those riffs or blast the bass… you add a unique sound to the solid Christian rock.  But watch out: if you can’t keep up, the artists will take a break and stop the music.  Crank it up and try again—you’ll soon be rockin’ with the best while praising the Lord!”

Sounds like you won’t get booed off stage, which, from the looks of someone playing Petra after the jump, will save some bruised egos:

Forget Guitar Hero, Christian rockers already have Guitar Praise Read More »

Ben Stein knew better than to invest in Bernard Madoff

Ben Stein, the dry-eyed lawyer, writer, actor, economist, was offered a chance to invest with Bernard Madoff, and lived to tell about it:

ABOUT two years ago, a little delegation from a major investment bank arrived at my home in Beverly Hills. These nice young people were from the bank’s “wealth management division.” I told them straight away that I didn’t have anywhere near enough wealth to make their trip worth their time, but they smilingly insisted that we could help each other.

They told me that if I invested a certain sum with them, they would make sure that a large chunk of it was managed by a money manager of stupendous acumen. This genius, so they said, never lost money. He did better in up markets than in down markets, but even in down markets he did well. They said he used a strategy of buying stocks and hedging with options.

I protested that a perfect hedge would not allow making any money, because money made on the one side would be lost on the other. They assured me that this genius had found a way to spot market inefficiencies and, indeed, to make money off a perfect hedge.

I thanked them for their time and promptly looked up Bernard Madoff online. Nothing I saw was even a bit convincing that he had made a breakthrough in financial theory. Besides, this large financial firm was going to charge me roughly 2 percent to put my money with Mr. Madoff’s firm. I could invest my few shekels with Warren Buffett for no management fee at all.

I checked with my investment gurus, Phil DeMuth, Raymond J. Lucia and Kevin Hanley. None of us could see how Mr. Madoff could do what his friends said he could do. I politely passed and went on my way, finding my own inventive ways to lose money on a colossal scale during these last 15 months.

My point is not that I was so smart. I am not and I was not. Mistakes are a big part of my life. My point is that, as humans, we seem unable to learn from our mistakes very well.

That commission—2 percent—actually sounds like a steal compared to the 3.8 percent that Robert Chew said Stanley Chais charged on his $1.2 million investment with Madoff—now gone.

In the end, though, Stein applied the same wisdom that Rabbi Harold Schulweis imparted last week: “If they tell you it is too good to be true, then it’s too good to be true.”

This is elementary economics. In the above video, Ben Stein the history teacher talks about voodoo economics.

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Where’d the money go?

Bernie Madoff claimed his Ponzi scheme took investors for $50 billion.  Even if he’s lying about that too—investigators say a more likely figure is $30 billion—you have to wonder, where’d it all go?

According to a report in talkingpointsmemo.com, the answer is fourfold:

1. A fraction went to support his lavish lifestyle

2. A good sized hunk disappeared when the markets tanked

3. Some of it may be hiding in overseas accounts

4. The bulk of it was withdrawn to pay off investors—the M.O. of a Ponzi scheme

Investigators say it will take months to track down the assets.  And lawyers may spend years trying to recover what’s recoverable.

Read the whole post here:

http://tpmmuckraker.talkingpointsmemo.com/2008/12/almost_since_the_news_broke.php

Where’d the money go? Read More »

Yeshiva University revises losses to $14.5 million

Two weeks ago, Yeshiva University President Richard Joel wrote in a letter to the YU community that the New York college had lost $110 million in investments made with Bernard Madoff. Today YU drastically recharacterized its losses as only $14.5 million. Why the massive mark down?

“Although the university has an estimated loss of approximately $110 million, it now appears that any ‘profits’ above the $14.5 million were fictitious,” Gower said in the statement.

Ascot was controlled by J. Ezra Merkin, who resigned from his positions as a trustee and investment-committee chairman. Madoff, 70, who served as treasurer of Yeshiva’s board of trustees and chairman of the school’s Sy Syms School of Business, resigned from his positions.

Partly because of Madoff, Yeshiva’s endowment value fell to $1.2 billion, from $1.7 billion last Jan. 1, the school estimated on Dec. 16.

The Jewish Community Foundation of Los Angeles also has chosen to focus on how much it had invested with Madoff ($18 million) and not how much it believed that investment was worth ($25.5 million). But sticking to the smaller investment doesn’t mean YU only lost $14.5 million. Think of it this way:

Let’s say you put $10,000 in the bank. Over a few years, that investment grows to $15,000. You’re up $5,000 but if your account was wiped out, you’d wouldn’t be down $10,000—you’d be down $15,000.

Losses on paper are still losses, especially if those “fictitious” profits have been used in planning for future spending.

Yeshiva University revises losses to $14.5 million Read More »

Can a pastor get some peace? LA Times reports on Warren’s Christmas Eve sermon

So it’s come to this for the Rev. Rick Warren, and the once exceptional Los Angeles Times: Southern California’s waning news leader, which today devoted two inches to the butchering of 189 Congo villagers, assigned not one but two reporters to find out what Warren was going to preach about on Christmas Eve. It wasn’t that interesting:

Warren told the 3,100 people who packed the church’s cavernous worship center about some plans that had not turned out as anticipated. “President-elect Obama’s plans for a noncontroversial inauguration—right out the door,” he said, drawing a round of applause from the congregation.

The prominent minister also delivered a sobering message for Christmas.

“You may be going through a change in plans right now,” he said. “You hadn’t expected to be laid off or to be financially tight right now. And when that happens, you’re asking, ‘Why me, why now?’

“Jesus said you don’t understand now what I am doing, but you will understand later. That’s the . . . thing you have to learn when God changes your plan. You have to learn to trust him.”

The article goes on to mention what Warren said the previous weekend at the annual conference of the Muslim Public Affairs Council, which I reported on last Tuesday.

I know the pastor—the author of “The Purpose-Driven Life” and a rising voice in politics, evangelical and beyond—generated controversy when President-elect Barack Obama asked him to say the prayer at the Jan. 20 inauguration, and I know that the media is still suffering from its Jeremiah Wright hangover and the absence of Sarah Palin, but Warren isn’t Wright and Obama’s selection really wasn’t as surprising as some want to portray it.

Can a pastor get some peace? LA Times reports on Warren’s Christmas Eve sermon Read More »

Creditors force Ezri Namvar into involuntary bankruptcy

Businessman and philanthropist Ezri Namvar was once a pillar of the local Iranian Jewish community, a trusted friend to whom many in the community loaned freely and without fear.

Now Namvar and his investment company, Namco Capital Group, Inc., are accused of losing as much as $400 million loaned to him.

For the last three months, lawsuits have been filed and extensive negotiations have been taking place to resolve the hundreds of millions of dollars in disputes between Namvar’s creditors and the Brentwood Iranian Jewish businessman. On Dec. 22, two dozen creditors filed an involuntary bankruptcy petition against Namvar and Namco.

The petition follows 17 lawsuits filed against Namvar, Namco, entities owned by Namvar and other Namvar family members alleging breach of contract and contractual fraud in a case that attorneys estimate involves 300 to 400 creditors, the majority of whom are Iranian Jews.

“Disputes happen all the time, but the magnitude of this case is huge,” said A. David Youssefyeh, a local Iranian Jewish attorney who is advising nearly 20 Iranian Jewish creditors in this case, of whom only a small group participated in the filing of the petition. “This case hits people in the community from such a broad socio-economic level — it includes everyone, from students that had entrusted Mr. Namvar with their bar mitzvah money, to retired people who invested their entire life savings in Namco and were paying their living expenses from the interest they received from the company.”

The creditors include investors in Namco Capital Group, those who lent money to Namco and received a personal guarantee from Namvar, lenders to Namco who received a lien on property owed by Namvar or one his entities and those who gave profits from their real estate transactions (1031 funds) to Namvar, according to the lawsuits.

“For 1031 money, the IRS will allow delayed payment of taxes on profits people give to a facilitator, such as Mr. Namvar, to hold for them until they find a substitute property to purchase,” Youssefyeh said. “But now that that money is gone, the people that entrusted Mr. Namvar with the money may potentially have to pay taxes on monies that they don’t have.”

Problems first arose nearly five months ago, when various creditors discovered they were unable to retrieve funds they had invested in Namco or given to Namvar, and that they were also no longer receiving interest payments from monies invested his company, Youssefyeh said.

While some community members filed suits to regain their money, the majority hoped instead to resolve the issue outside of the courts, in the traditional manner of the tight-knit community.

“Back in Iran, whenever a businessman in the Jewish community was unable to pay his creditors, the community leaders would get together and devise a plan to help the businessman get back on his feet financially so that he could repay those debts,” said Ebrahim Yahid, a community activist in his 80s who is a close friend of the Namvar family.

Indeed, such a group was organized after a meeting on Nov. 5 between Namvar and Namco’s Iranian Jewish creditors, according to a statement released to The Jewish Journal by the group on Dec. 16. Namco’s creditors first nominated and then voted to create a provisional committee, including prominent, independent community members. The group planned to trace all of Namvar’s assets and propose solutions to the creditors, according to the statement.

The all-volunteer committee included retired banker and former president of the Iranian American Jewish Federation (IAJF) Solomon Agahi and former IAJF Secretary General Sam Kermanian, as well as businessmen Jack Rochel and Nejat Sarshar. They had their first meeting on Nov. 24, according to the statement, and they were offered full authority by Namvar to resolve the disputes. The committee also hired an independent forensic accountant and attorney.

Nevertheless, talks broke down, and Youssefyeh said he advised his clients to file the bankruptcy petition when his negotiations with the local Iranian Jewish community leaders and Namco’s attorney failed to secure a deal to retrieve their investments for his clients and the nearly 200 other local Iranian Jewish creditors.

Youssefyeh said he became frustrated because Namvar’s paybacks seemed designed to protect the wealthy creditors, rather than the small investors whose life savings had been jeopardized. “What particularly made me mad was that with the $12 [million] to $13 million, Mr. Namvar could pay off 190 people, most of which needed the money for their survival, that had entrusted Mr. Namvar with $200,000 or less,” Youssefyeh said. “But people close to him told me that instead of Mr .Namvar paying off these creditors, Mr. Namvar had earmarked the remaining $17 million that he would receive from the sale of his Wilshire Bundy Plaza building to pay his 1031 obligations first, in order to avoid any potential liability arising from the 1031 funds not being available to the investors.”

Youssefyeh said bankruptcy was the only available option to protect his clients, because it allows the courts to distribute Namvar’s assets and even reverses settlement payments Namvar had made to his more affluent creditors, who have the financial means to proceed with litigation against him.

According to the bankruptcy petition, filed in U.S. Federal Bankruptcy Court in downtown Los Angeles, the dozen creditors include both Iranian Jews and non-Jews, with more than $7 million in claims against Namco Capital Group and $7 million in personal claims against Namvar.

While members of the provisional committee declined to comment on the filing, legal experts said the petition nullifies the committee’s ability to settle the case, giving the courts the responsibility of distributing Namvar and Namco’s assets.

Some community leaders, who asked not to be identified, argued that the bankruptcy petition could hurt the community’s numerous creditors, because they might never receive their money back, since the case could take years to litigate and any available monies could be eaten up by attorneys’ fees as well as other costs.

Youssefyeh defended the bankruptcy petition. “The [provisional] committee had not taken any steps to take control of Mr. Namvar’s assets and in so many words said that they were not qualified to disperse his assets,” he said, adding, “yes, it will be painful and take a long time, but at the end of the day there was no other viable solution that would have frozen the assets, brought all of the preferential transfers and securitization money back into the pot.”

Local Iranian Jews had been investing with Namvar and Namco since the late 1990s. The relationships were based on his family’s reputation for being honorable as well as his success in real estate development, Yahid said.

Some have compared Namvar’s situation to the Bernard Madoff scandal, which involves a Ponzi scheme, but this is unfair, according to Namvar’s friends and community supporters, who say Namvar’s losses are due simply to the economic downturn.

“I know he [Namvar] did not have bad intentions — the economy around the whole world has gone downward, including the real estate market here in Los Angeles, and everyone is hurting, including himself,” Yahid said. “If he really had bad intentions, he would not have welcomed the committee to resolve this case, but would have instead declared immediate bankruptcy himself and destroyed the lives of hundreds in our community.”

Creditors force Ezri Namvar into involuntary bankruptcy Read More »

Israel working on temporary ceasefire?

Yesterday it seemed like Israel’s war in Gaza would last indefinitely. Now there’s talk of a ceasefire—or at least a 48-hour break in fighting.

From The New York Times:

The idea was in a very early stage, the result of a conversation between French Foreign Minister Bernard Kouchner and Israeli Defense Minister Ehud Barak. But aides to Mr. Barak said he was interested in exploring it and would do so with Prime Minister Ehud Olmert and the rest of the cabinet in the coming day.

“The leading option right now is still a ground invasion but the target of this operation is an improved ceasefire and if that can come without the invasion, fine,” a close aide to Mr. Barak said, requesting anonymity since he was not his authorized spokesman. “But of course Hamas has to agree and there has to be a mechanism to make it work.”

As the death toll among Palestinians in Gaza rose, the United States was also increasing pressure on Israel to call a cease-fire, and was enlisting Arab countries to press Hamas to do the same, in intensive diplomacy being led by Secretary of State Condoleezza Rice, the White House. The goal, said a State Department spokesman, Gordon Duguid, is a “reliable cease-fire, one that is durable and sustainable.”But despite the new attempts at reaching a diplomatic solution, most of the talk in Israel on Tuesday was of an ongoing and expanding Israeli military operation. Warplanes attacked smuggler tunnels in southern Gaza and destroyed the home of a top militant leader.

Mr. Olmert told President Shimon Peres that the air strikes were the first of several planned phases, according to spokesmen for both officials, although it was also clear that the number of targets available from the air was declining, making the likelihood of a ground offensive greater.

In Gaza, Hamas militants issued a tape-recorded statement vowing revenge for the more than 370 Palestinians killed so far in Israel’s operations since Saturday, including more than 70 civilians, and warning that a ground invasion would prove painful for Israel. Two sisters, aged 4 and 11, were killed in a strike in the north as concern was growing around the world that the assault was taking a terrible toll on ordinary people.

“It would be easier to dry the sea of Gaza than to defeat the resistance and uproot Hamas which is in every house of Gaza,” the statement, from the military wing of Hamas, said. It was played on Hamas’s television station that had been shut down by an Israeli missile but went back into action by broadcasting from a mobile van. The statement added that if there was a ground invasion, “the children of Gaza will be collecting the body parts of your soldiers and the ruins of tanks.”

Hamas continued to fire longer-range rockets at Israel, shooting deep into the city of Ashdod for a second day as well as even further north into the town of Kiryat Malachi. There were no reports of serious injuries and the number of rockets was down to about a dozen, a day after three Israelis were killed when 70 rockets and mortars were fired.

That last paragraph is the problem. Even if Israel stops its attacks, Hamas won’t stop launching rockets into Israeli hamlets, which it has been doing several times a day for the past few years.

In Los Angeles, there will be two protests this afternoon outside the Israeli consulate on Wilshire Boulevard—one against Israel’s airstrikes by the ANSWER Coalition and a counter protest, led by StandWithUs, in support of Israel.

Israel working on temporary ceasefire? Read More »