Wednesday, March 14, 2007

Democrats drop plan to close Guantanamo

House Democrats delay effort to close Guantanamo

03/14/2007 @ 7:18 am

Filed by Michael Roston

House Democrats have dropped plans to use the coming Defense Supplemental Appropriations legislation to permanently close the terrorist detention facility at Guantanamo Bay, Cuba, RAW STORY has learned. One House Democrat sitting on the Defense Appropriations Subcommittee promised the party would return to the issue later in the year when taking up the standard Defense funding bill.

"Guantanamo is not included in this bill," confirmed an Appropriations aide to RAW STORY yesterday.

Rep. John Murtha, the Pennsylvania Democrat who chairs the Defense Subcommittee of the House Appropriations Committee, had announced his plans in a video posted by the group Stand Up Congress in February to use the Defense Supplemental bill to close the detention facility at Guantanamo Bay where alleged terrorists have been held since 2002.

"There are a couple of other things we're considering, I don't know if this will come about," Murtha said in the webcast. "We're thinking of putting conditions that you have to close Guantanamo, I'm sending people down there, they've invited me to go down. I think that's a worldwide problem. I think worldwide they think Guantanamo is a blot on our credibility, and I think it should be closed."

His office referred questions to Rep. Jim Moran (D-VA), who has been tasked with handling the Guantanamo Bay issue.

Moran's office told RAW STORY that the Defense Supplemental legislation could not be used to close Guantanamo Bay.

"There are no accounts in the supplemental that deal with Guantanamo, so we can't cut those funds," explained Austin Durrer, Moran's press secretary.

Instead, he promised action later in the year.

"We have to use the Defense Appropriations bill that funds the Department of Defense, and for the detention facility," Durrer added.

He also promised hearings on the issue next month.

While the Democrats have not been able to move ahead and quickly shutter the detention site, the US Armed Forces have advanced in their efforts to bring charges against individuals accused of terrorism at Guantanamo Bay.

"Pentagon spokesmen announced that a combatant status review tribunal hearing for Khalid Shaikh Mohammed, perhaps the most well-known Al Qaeda suspect in U.S. custody, was held Saturday. On Friday, the military held hearings for Abu Faraj Libbi and Ramzi Binalshibh. A fourth hearing for an unspecified suspect was to have been held Monday," the Los Angeles Times wrote yesterday.

A Journalist Writing Bloody Murder… : The Seymour Hersh Mystery

Tomgram: The Seymour Hersh Mystery

A Journalist Writing Bloody Murder…

And No One Notices
By Tom Engelhardt

Let me see if I've got this straight. Perhaps two years ago, an "informal" meeting of "veterans" of the 1980s Iran-Contra scandal -- holding positions in the Bush administration -- was convened by Deputy National Security Advisor Elliott Abrams. Discussed were the "lessons learned" from that labyrinthine, secret, and illegal arms-for-money-for-arms deal involving the Israelis, the Iranians, the Saudis, and the Contras of Nicaragua, among others -- and meant to evade the Boland Amendment, a congressionally passed attempt to outlaw Reagan administration assistance to the anti-communist Contras. In terms of getting around Congress, the Iran-Contra vets concluded, the complex operation had been a success -- and would have worked far better if the CIA and the military had been kept out of the loop and the whole thing had been run out of the Vice President's office.

Subsequently, some of those conspirators, once again with the financial support and help of the Saudis (and probably the Israelis and the Brits), began running a similar operation, aimed at avoiding congressional scrutiny or public accountability of any sort, out of Vice President Cheney's office. They dipped into "black pools of money," possibly stolen from the billions of Iraqi oil dollars that have never been accounted for since the American occupation began. Some of these funds, as well as Saudi ones, were evidently funneled through the embattled, Sunni-dominated Lebanese government of Prime Minister Fouad Siniora to the sort of Sunni jihadi groups ("some sympathetic to al-Qaeda") whose members might normally fear ending up in Guantanamo and to a group, or groups, associated with the fundamentalist Muslim Brotherhood.

All of this was being done as part of a "sea change" in the Bush administration's Middle Eastern policies aimed at rallying friendly Sunni regimes against Shiite Iran, as well as Hezbollah, Hamas, and the Syrian government -- and launching secret operations to undermine, roll back, or destroy all of the above. Despite the fact that the Bush administration is officially at war with Sunni extremism in Iraq (and in the more general Global War on Terror), despite its support for the largely Shiite government, allied to Iran, that it has brought to power in Iraq, and despite its dislike for the Sunni-Shiite civil war in that country, some of its top officials may be covertly encouraging a far greater Sunni-Shiite rift in the region.

Imagine. All this and much more (including news of U.S. military border-crossings into Iran, new preparations that would allow George W. Bush to order a massive air attack on that land with only 24-hours notice, and a brief window this spring when the staggering power of four U.S. aircraft-carrier battle groups might be available to the President in the Persian Gulf) was revealed, often in remarkable detail, just over a week ago in "The Redirection," a Seymour Hersh piece in the New Yorker. Hersh, the man who first broke the My Lai story in the Vietnam era, has never been off his game since. In recent years, from the Abu Ghraib scandal on, he has consistently released explosive news about the plans and acts of the Bush administration.

Imagine, in addition, that Hersh went on Democracy Now!, Fresh Air, Hardball with Chris Matthews, and CNN Late Edition with Wolf Blitzer and actually elaborated on these claims and revelations, some of which, on the face of it, seem like potentially illegal and impeachable offenses, if they do indeed reach up to the Vice President or President.

Now imagine the response: Front-page headlines; editorials nationwide calling for answers, Congressional hearings, or even the appointment of a special prosecutor to look into some of the claims; a raft of op-ed page pieces by the nation's leading columnists asking questions, demanding answers, reminding us of the history of Iran-Contra; bold reporters from a recently freed media standing up in White House and Defense Department press briefings to demand more information on Hersh's various charges; calls in Congress for hearings and investigations into why the people's representatives were left so totally out of this loop.

Uh…

All I can say is: If any of this happened, I haven't been able to discover it. As far as I can tell, no one in the mainstream even blinked on the Iran-Contra angle or the possibility that a vast, secret Middle Eastern operation is being run, possibly illegally and based on stolen funds and Saudi money, out of the Vice President's office. You can certainly find a few pieces on, or reports about, "The Redirection" -- all focused only on the possible build-up to a war with Iran -- and the odd wire-service mention of it; but nothing major, nothing Earth-shaking or eye-popping; not, in fact, a single obvious editorial or op-ed piece in the mainstream; no journalistic questions publicly asked of the administration; no Congressional cries of horror; no calls anywhere for investigations or hearings on any of Hersh's revelations, not even an expression of fear somewhere that we might be seeing Iran-Contra, the sequel, in our own moment.

This, it seems to me, adds up to a remarkable non-response to claims that, if true, should gravely concern Congress, the media, and the nation. Let's grant that Hersh's New Yorker pieces generally arrive unsourced and filled with anonymuous officials ("a former senior intelligence official," "a U.S. government consultant with close ties to Israel"). Nonetheless, Hersh has long mined his sources in the Intelligence Community and the military to striking effect. Undoubtedly, the lack of sourcing makes it harder for other reporters to follow-up, though when it comes to papers like the Washington Post and the New York Times, you would think that they might have Washington sources of their own to query on Hersh's claims. And, of course, editorial pages, columnists, op-ed editors, Congressional representatives, and reporters at administration news briefings don't need to do any footwork at all to raise these subjects. (Consider, for instance, the White House press briefing on April 10, 2006, where a reporter did indeed ask a question based on an earlier Hersh New Yorker piece.) As far as I can tell, there haven't even been denunciations of Hersh's report or suggestions anywhere that it was inaccurate or off-base. Just the equivalent of a giant, collective shrug of the media's rather scrawny shoulders.

Since the response to Hersh's remarkable piece has been so tepid in places where it should count, let me take up just a few of the many issues his report raises.

"Meddling" in Iran

For at least a month now, our press and TV news have been full to the brim with mile-high headlines and top-of-the-news stories recounting (and, more rarely, disputing) Bush administration claims of Iranian "interference" or "meddling" in Iraq (where U.S. military spokesmen regularly refer to the Iraqi insurgents they are fighting as "anti-Iraq forces"). Since Hersh published "Plan B" in the New Yorker in June 2004 in which he claimed that the Israelis were "running covert operations inside Kurdish areas of Iran and Syria," he has been on the other side of this story.

In "The Coming Wars" in January of 2005, he first reported that the Bush administration, like the Israelis, had been "conducting secret reconnaissance missions inside Iran at least since" the summer of 2004. In April of 2006 in "The Iran Plans," he reported that the Bush administration was eager to put the "nuclear option" on the table in any future air assault on Iranian nuclear facilities (and that some in the Pentagon, fiercely opposed, had at least temporarily thwarted planning for the possible use of nuclear bunker-busters in Iran). He also reported that American combat units were "on the ground" in Iran, marking targets for any future air attack, and quoted an unnamed source as claiming that they were also "working with minority groups in Iran, including the Azeris, in the north, the Baluchis, in the southeast, and the Kurds, in the northeast. The troops ‘are studying the terrain, and giving away walking-around money to ethnic tribes, and recruiting scouts from local tribes and shepherds,' the consultant said. One goal is to get ‘eyes on the ground'… The broader aim, the consultant said, is to ‘encourage ethnic tensions' and undermine the regime."

In "The Redirection," he now claims that, in search of Iranian rollback and possible regime change, "American military and special-operations teams have escalated their activities in Iran to gather intelligence and, according to a Pentagon consultant on terrorism and the former senior intelligence official, have also crossed the [Iranian] border in pursuit of Iranian operatives from Iraq." In his Democracy Now! radio interview, he added: "[W]e have been deeply involved with Azeris and Baluchis and Iranian Kurds in terror activities inside the country… and, of course, the Israelis have been involved in a lot of that through Kurdistan… Iran has been having sort of a series of backdoor fights, the Iranian government, because… they have a significant minority population. Not everybody there is a Persian. If you add up the Azeris and Baluchis and Kurds, you're really 30-some [%], maybe even 40% of the country."

In addition, he reported that "a special planning group has been established in the offices of the Joint Chiefs of Staff, charged with creating a contingency bombing plan for Iran that can be implemented, upon orders from the President, within twenty-four hours," and that its "new assignment" was to identify not just nuclear facilities and possible regime-change targets, but "targets in Iran that may be involved in supplying or aiding militants in Iraq."

Were there nothing else in Hersh's most recent piece, all of this would still have been significant news -- if we didn't happen to live on a one-way imperial planet in which Iranian "interference" in (American) Iraq is an outrage, but secret U.S. operations in, and military plans to devastate, Iran are your basic ho-hum issue. Our mainstream news purveyors don't generally consider the issue of our "interference" in Iran worthy of a great deal of reporting, nor do our pundits consider it a topic worthy of speculation or consideration; nor, in a Congress where leading Democrats have regularly outflanked the Bush administration in hawkish positions on Iran, is this likely to be much of an issue.

You can read abroad about rumored American operations out of Pakistan and Afghanistan aimed at unsettling Iranian minorities like the Baluchis and about possible operations to create strife among Arab minorities in southern Iran near the Iraqi border -- the Iranians seem to blame the British, whose troops are in southern Iraq, for some of this (a charge vociferously denied by the British embassy in Tehran) -- but it's not a topic of great interest here.

In recent months, in fact, several bombs have gone off in minority regions of Iran. These explosions have been reported here, but you would be hard-pressed to find out what the Iranians had to say about them, and the possibility that any of these might prove part of a U.S. (or Anglo-American) covert campaign to destabilize the Iranian fundamentalist regime basically doesn't concern the news mind here, even though past history says it should. After all, many of our present Middle Eastern problems can be indirectly traced back to the Anglo-American ur-moment in the Middle East, the successful CIA-British-intelligence plot in 1953 to oust Prime Minister Mohammad Mossadegh (who had nationalized the Iranian oil industry) and install the young Shah in power.

After all, in the 1980s, in the anti-Soviet war in Afghanistan, the CIA (with the eager connivance of the Pakistanis and the Saudis) helped organize, arm, and fund the Islamic extremists who would someday turn on us for terror campaigns on a major scale. As Steve Coll reported in his superb book Ghost Wars, for instance, "Under ISI [Pakistani intelligence] direction, the mujahedin received training and malleable explosives to mount car-bomb and even camel-bomb attacks in Soviet-occupied cities, usually designed to kill Soviet soldiers and commanders. [CIA Director William] Casey endorsed these despite the qualms of some CIA career officers."

Similarly, in the early 1990s, the Iraq National Accord, an organization run by the CIA's Iraqi exile of choice, Iyad Allawi, evidently planted, under the Agency's direction, car bombs and explosive devices in Baghdad (including in a movie theater) in a fruitless attempt to destabilize Saddam Hussein's regime. The New York Times reported this on its front page in June 2004 (to no effect whatsoever), when Allawi was the Prime Minister of American-occupied Iraq.

Who knows where the funding, training, and equipment for the bombings in Iran are coming from -- but, at a moment when charges that the Iranians are sending into Iraq advanced IEDs, or the means to produce them, are the rage, it seems a germane subject.

In this country, it's a no-brainer that the Iranians have no right whatsoever to put their people, overtly or covertly, into neighboring Iraq, a country which, back in the 1980s, invaded Iran and fought a bitter eight-year war with it, resulting in perhaps a million casualties; but it's just normal behavior for the Pentagon to have traveled halfway across the planet to dominate the Iraqi military, garrison Iraq with a string of vast permanent bases, build the largest embassy on the planet in Baghdad's Green Zone, and send special-operations teams (and undoubtedly CIA teams as well) across the Iranian border, or to insert them in Iran to do "reconnaissance" or even to foment unrest among its minorities. This is the definition of an imperial worldview.

Sleepless Nights

Let's leave Iran now and briefly take up a couple of other matters highlighted in "The Redirection" that certainly should have raised the odd red flag and pushed the odd alarm button here at home far more than his Iranian news (which did at least get some attention):

1. Iran-Contra Redux: Does it raise no eyebrows that, under the leadership of Elliot Abrams (who in the Iran-Contra period pleaded guilty to two counts of unlawfully withholding information from Congress and was later pardoned), such a meeting was held? Does no one want to confirm that this happened? Does no one want to know who attended? Iran-Contra alumni in the Bush administration at one time or another included former Reagan National Security Advisor John Poindexter, Otto Reich, John Negroponte (who, Hersh claims, recently left his post as Director of National Intelligence in order to avoid the twenty-first century version of Iran-Contra -- "No way. I'm not going down that road again, with the N.S.C. [National Security Council] running operations off the books, with no [presidential] finding."), Roger Noriega, and Robert Gates. Did the Vice President or President sit in? Was either of them informed about the "lessons drawn"? Were the Vice President's right-hand men, I. Lewis Libby and/or David Addington in any way involved? Who knows? In the Iran-Contra affair, the Reagan administration drew together the seediest collection of freelance arms dealers, intelligence agents, allies, and -- in the case of Ayatollah Khomeini's Iranian regime -- sworn enemies in what can only be called "amateur hour" at the White House. Now, it looks like the Bush administration is heading down a similar path and, given its previous "amateur hour" reputation in foreign policy, imagine what this is likely to mean.

2. Jihadis as Proxies: Using jihadis as American proxies in a struggle to rollback Iran -- with the help of the Saudis -- should have rung a few bells somewhere in American memory as another been-there, done-that moment. In the 1980s -- on the theory that my enemy's enemy is my friend -- the fundamentalist Catholic CIA Director William Casey came to believe that Islamic fundamentalists could prove tight and trustworthy allies in rolling back the Soviet Union. In Afghanistan, as a result, the CIA, backed by the Saudis royals, who themselves represented an extremist form of Sunni Islam, regularly favored and funded the most extreme of the mujahedeen ready to fight the Soviets. Who can forget the results? Today, according to Hersh, the Saudis are reassuring key figures in the administration that this time they have the jihadis to whom funds are flowing under control. No problem. If you believe that, you'll believe anything.

3. Congress in the Dark: Hersh claims that, with the help of Saudi National Security Adviser Prince Bandar bin Sultan (buddy to the Bushes and Dick Cheney's close comrade-in-arms), the people running the black-ops programs out of Cheney's office have managed to run circles around any possibility of Congressional oversight, leaving the institution completely "in the dark," which is undoubtedly exactly where Congress wanted to be for the last six years. Is this still true? The non-reaction to the Hersh piece isn't exactly encouraging.

To summarize, if Hersh is to be believed -- and as a major journalistic figure for the last near-40 years he certainly deserves to be taken seriously -- the Bush administration seems to be repeating the worst mistakes of the Reagan administration and of the anti-Soviet war in Afghanistan, which led inexorably to the greatest acts of blowback in our history. Given what we already know about the Bush administration, Americans should be up nights worrying about what all this means now as well as down the line. For Congress, the media, and Americans in general, this report should have been not just a wake-up call, but a shout for an all-nighter with NoDoz.

In my childhood, one of the Philadelphia papers regularly ran cartoon ads for itself in which some poor soul in a perilous situation -- say, clinging to the ledge of a tall building -- would be screaming for help, while passersby were so engrossed in the paper that they didn't even look up. Now, we have the opposite situation. A journalist essentially writing bloody murder in a giant media and governmental crowd. In this case, no one in the mainstream evidently cares -– not yet anyway -- to pay the slightest attention. It seems that there's a crime going on and no one gives a damn. Think Kitty Genovese on a giant scale.

Tom Engelhardt, who runs the Nation Institute's Tomdispatch.com ("a regular antidote to the mainstream media"), is the co-founder of the American Empire Project and, most recently, the author of Mission Unaccomplished: Tomdispatch Interviews with American Iconoclasts and Dissenters (Nation Books), the first collection of Tomdispatch interviews.

Copyright 2007 Tom Engelhardt

Time to Go, Mr. Gonzales

By Ruth Marcus

Wednesday, March 14, 2007; A15

"I believe in accountability," Attorney General Alberto Gonzales proclaimed yesterday at a news conference that was a self-serving masterpiece of passive voice and unpersuasive platitudes. "Like every CEO of a major organization, I am responsible for what happens at the Department of Justice. I acknowledge that mistakes were made here. I accept that responsibility. And my pledge to the American people is to find out what went wrong here, to access accountability and to make improvements so that the mistakes that occurred in this instance do not occur again in the future."

Is there anyone left -- seriously, is there a Republican member of the Senate Judiciary Committee -- who has confidence in Gonzales's capacity to fix this mess? Is there anyone who accepts Gonzales's CEO analogy -- and thinks that a sentient board of directors wouldn't have fired him long ago?

Let's assume Gonzales's good faith: that he truly is upset about what happened on his watch, just as he was upset last week about the FBI's cavalier mishandling of its authority to issue "national security letters," and wants to make things right.

There is no reason to believe that he is capable of making a change. The portrait of the Gonzales Justice Department that emerges from the e-mails released yesterday, and from the attorney general's own comments, is of an agency overseen by an absentee landlord, chronically clueless about what's happening around him.

This is a man whose memory is so foggy that George W. Bush -- not exactly Mr. Detail -- has a sharper recollection of their conversations than the attorney general does. The president, according to White House spokeswoman Dana Perino, told Gonzales that Republicans were complaining about prosecutors failing to aggressively pursue voter fraud. Gonzales doesn't recall the conversation.

I'm sorry, is there somebody he's paying more attention to than the president of the United States?

At his I'm-accountable-but-I-didn't-know-anything news conference yesterday, Gonzales said he knew the White House had suggested canning all 93 U.S. attorneys, rejected that idea and then left things to his chief of staff. "I was not involved in seeing any memos, was not involved in any discussions about what was going on," he said. "That's basically what I knew as the attorney general."

How reassuring. But, a reporter asked, how could it be that his chief of staff, D. Kyle Sampson, was figuring out "which U.S. attorneys to . . . let go and you not know?"

Answer: "Well, again as -- I accept responsibility for whatever happens here in this department. But I have 110,000 working in the department. Obviously, there are going to be decisions made that I'm not aware of all the time."

Translation: "I'm going to tell you I'm responsible, because that's what they tell me I have to say. But of course I'm not. It's all Kyle Sampson's fault. I'm hoping that if I say I'm accountable often enough, no one will actually hold me accountable."

Ousting a group of top federal prosecutors isn't some minor, inconsequential act. It's the sort of thing that a responsible attorney general would be deeply immersed in. Gonzales's depiction of his own marginality is the most damning evidence of his unfitness for the job.

The precise non-mistake mistake that Gonzales copped to yesterday was sharing "incomplete" -- this is Gonzales-speak for wrong -- information with Congress. Think about this: Gonzales first testified about the U.S. attorney firings on Jan. 19. His No. 2, Paul McNulty, testified on Feb. 6. Assistant Attorney General William Moschella testified March 6.

And it wasn't until this week that Justice finally figured out it hadn't figured out the whole story? If that's true -- and I'm not sure which would be worse -- why should anyone believe this crowd is capable of getting its congressional story straight in the future?

Meantime, the pages of e-mails released yesterday show how -- while Gonzales hummed happily above the fray -- his lieutenants carefully choreographed the firings, down to making sure that the relevant senators were called at precisely the same time the ousted prosecutors were to be informed of their fates, and delaying the moment of truth until they left a meeting of federal prosecutors "to reduce chatter."

When Arkansas senators balked at installing Karl Rove protege Tim Griffin in the U.S. attorney's job there, Sampson recommended that the department "gum this to death." If the senators ultimately balk, he said, "then we can tell them we'll look for other candidates . . . and otherwise run out the clock. All of this should be done in 'good faith' of course." Of course.

In his now famous "overblown personnel matter" column in USA Today last week, Gonzales wrote, "While I am grateful for the public service of these seven U.S. attorneys, they simply lost my confidence." (Or did he mean Kyle Sampson's confidence?)

It's time -- past time -- for the president to say the same, perhaps more quietly and more politely, about his friend, his counselor and his failed attorney general.

marcusr@washpost.com

AIPAC launches attack on state pension funds

AIPAC has demanded that all governments and organizations remove investments from any company in the world that does business with Iran.

Yesterday AIPAC especially threatened state pension funds that that have money invested in such companies.

Howard Kohr, Aipac executive director, singled out CalPERS – California’s state pension fund.

Records for 2006 show that CalPERS held over $468m in stock in Total, a French energy company with investments in Iran, plus $330m of stock in Eni, an Italian company that is also active in Iran. These foreign companies help to develop Iran's energy sector. AIPAC wants to hurt them, and hurt any organization in the world that invests in them.

Kohr said AIPAC will work with other Jewish organisations to attack pension funds in 10 states, demanding that funds pull all investments from companies that do business with Iran.

AIPAC has already forced several states to comply. These states instruct their pension funds not to invest in any company that does business with Iran, plus Syria, Sudan, Cuba and North Korea.

Source:
http://www.ft.com/cms/s/7f229cba-d0c7-11db-836a-000b5df10621.html

Posted in Submitted by against zionism on Tue, 2007-03-13 17:42. against zionism's blog

URL

Home Foreclosures At Highest Level In Almost 40 Years

Mortgage Report Rattles Markets
Dow Down 2% On a Big Rise In Delinquencies

By David Cho and Dina ElBoghdady
Washington Post Staff Writers
Wednesday, March 14, 2007; A01

A national survey showing that a soaring number of homeowners failed to make their mortgage payments in the last quarter of 2006 rattled lawmakers in Washington and the markets in New York yesterday, as the Dow Jones industrial average plummeted 2 percent, or nearly 243 points.

The report, which sent every major stock market indicator tumbling when it was released at noon, revealed that the problems in the market for "subprime" mortgages -- loans made to home buyers with blemished credit histories -- might be spilling over to the broader mortgage industry, analysts said.

While the number of risky borrowers who missed payments climbed to a four-year high, the number of foreclosures on all homes jumped to its highest level in nearly four decades, according to the survey by the Mortgage Bankers Association. Home buyers who relied on loans insured by the Federal Housing Administration also had record default rates.

Several lawmakers, including House Financial Services Committee Chairman Barney Frank (D-Mass.), said they would offer legislation to rein in risky mortgages. Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.) told reporters that Congress will have to consider providing several billion dollars of aid to at-risk homeowners.

The survey was released as the market for high-risk mortgages is collapsing. Over the past few years, highflying lenders of these loans helped millions of Americans buy homes they otherwise could not afford. The firms have seen their businesses unravel as these homeowners could not make their monthly payments. Some companies have been delisted from stock exchanges in recent weeks, while more than two dozen have shut their doors.

The consequences of the subprime mortgage meltdown now are extending beyond those lenders. Washington Mutual, the nation's largest savings and loan, told analysts that its loans to risky home buyers were performing "exceedingly poorly" and would be a drag on its earnings. H&R Block said it will delay reporting its third-quarter results because woes in the mortgage market forced the firm to recalculate its earnings, resulting in a $29 million loss that wasn't included in its previous filings.

Shares of Washington Mutual fell 5 percent, to $39.79, its lowest in 16 months. H&R Block fell 4 percent during the day and another 5 percent to $19.05 after its announcement.

"It's pretty clear that the fear is the increase in delinquencies in the subprime market will work its way through the entire financial systems," said Alan Kral, managing director of Trevor Stewart Burton & Jacobsen.

Traders said the impact of the delinquency survey was immediate. After the numbers were released, the Dow shed 70 points in half an hour. The survey measured the last three months of 2006, and some on Wall Street are worried the beginning of this year will be worse.

"People are concerned that the subprime problems are going to infect all of housing and the rest of the economy," said Donald H. Straszheim, an economist at Roth Capital Partners.

Federal and state investigators are looking at what has been going on in the mortgage industry. New Century, one of the largest subprime mortgage lenders, said yesterday it had received a federal grand jury subpoena for its trading and accounting practices. New Century, which stopped making loans last week, was delisted by the New York Stock Exchange yesterday.

Massachusetts' top securities regulator, Secretary of State William Galvin, said yesterday that he issued subpoenas to two Wall Street investment banks, UBS Securities and Bear Stearns, as part of a probe into whether the firms' researchers ignored the mounting problems among subprime lenders.

On top of these investigations, other prominent subprime lenders shed more light on their financial woes yesterday. Shares of Accredited Home Lenders Holding, another large subprime lender, lost 65 percent of their value after the San Diego firm said that it had not met the financial terms of its creditors, which are now demanding money that Accredited does not have. This is the same situation that New Century is facing.

Locally, Friedman, Billings, Ramsey Group is considering selling its First NLC subprime mortgage loan business after cutting costs and tightening loan policies. The Arlington company said in a statement that it "will explore strategic alternatives to maximize the value" of the division.

Selling loans to people with questionable credit was a popular trend over the past few years. Lenders could repackage these mortgages as bonds and sell them on the market for high returns. These lenders believed homeowners simply could sell or refinance their homes if they had trouble making payments.

But when the market cooled, and home prices leveled off, millions of those borrowers could not afford to refinance or sell their homes, wreaking havoc on the once-thriving subprime market.

Especially onerous were the adjustable-rate mortgages, which offered low teaser rates that spiked in later years.

Those types of mortgages grew in popularity in spring 2004, when interest rates hit a low, said Barry Glassman, senior vice president of financial planning firm Cassaday & Co. But now that these mortgages are starting to adjust, some borrowers face interest payments that are at more than double the original rate.

Yesterday's Mortgage Bankers Association report, which surveyed 43.5 million loans, shows how this phenomenon played out in the last three months of 2006.

According to the report, 4.95 percent of all home mortgages were delinquent, meaning they were at least 30 days late. The most dramatic rise was among subprime borrowers. The survey also showed that lenders initiated foreclosures against 0.54 percent of borrowers -- or about one in every 200 -- the highest in the 37-year history of the survey.

While most of the turmoil has been driven by the subprime market, even credit-worthy borrowers appear to be facing some of the same issues. Their delinquency and foreclosure rates also inched upwards. The rate of foreclosures that started during the fourth quarter more than doubled since the start of 2006 for credit-worthy borrowers.

"There's some indication here, and it's not apocalyptic by any means, that the problems might not be contained in the subprime market," said Nicolas Retsinas, director of the Joint Center for Housing Studies at Harvard University.

Staff writer Tomoeh Murakami Tse contributed to this report.

Video: 1967 mass murder of unarmed Egyptians by Israelis

Video: 1967 mass murder of unarmed Egyptians by israelis
---
Normally I embed videos here.

Google, the owners of this blogging service, have been sued by Viacom, "
Zionist-owned Viacom sues Google.

These cowards responded by making it impossible to embed any Google-owned YouTube videos.

Who says the Israel Lobby doesn't call the shots in America?

Related
AIPAC launches attack on state pension funds

UN to open permanent probe on Israel

The Jerusalem Post Internet Edition

The United Nation's Human Rights Council is expected to place Israel under permanent investigation for its "violations" of international law in the territories - until such time as it withdraws to the pre-1967 border - according to Hillel Neuer, executive director of UN Watch.

Neuer added that he received that information from diplomatic sources.

It's one of at least four anti-Israel actions he expects the council to take during its fourth session, which started in Geneva on Monday and runs through April 5, Neuer told The Jerusalem Post from Geneva.

The UN body was created in June to replace the Human Rights Commission, which was scrapped because it had a faulty membership composition and repeatedly singled out Israel.

But since its inception, the 47-member body - which includes Cuba, Saudi Arabia and China - has continued to single out the Jewish State. It has issued eight anti-Israel resolutions, and none against any other nation. It has also held three special sessions on Israel.

Neuer and Israel's ambassador to the UN in Geneva, Yitzhak Levanon, said they expected this session to continue in that same pattern, although the council is also expected to discuss human rights abuses in other parts of the world, including in Darfur, Sudan.

"I'm expecting there will be some clashes concerning Israel," Levanon told the Post.

Neuer said Israel would be rapped for the Antiquities Authority's construction of an access ramp to the Temple Mount's Mughrabi Gate.

The work has been widely condemned throughout the Muslim world.

Neuer said the council would also take Israel to task for refusing entry to inquiry teams in July and in November. The first team was sent to investigate Israel's actions in the Gaza Strip following the kidnapping by Hamas of Cpl. Gilad Schalit in June.

The second team was dispatched to investigate the accidental discharge of an IDF artillery barrage that killed 19 civilians in Beit Hanun in the northern Gaza Strip in November.

Levanon said the investigators were denied entry because they were overtly biased against Israel.

The Human Rights Council is also set to hear a report compiled by UN Special Rapporteur John Dugard that compares Israeli actions in the territories to that of the former apartheid system in South Africa.