Economic expansion weakest since 2011









The U.S. economy barely grew in the fourth quarter although a slightly better performance in exports and fewer imports led the government to scratch an earlier estimate that showed an economic contraction.

Gross domestic product expanded at a 0.1 percent annual rate, the Commerce Department said on Thursday, missing the 0.5 percent gain forecast by analysts in a Reuters poll.

The growth rate was the slowest since the first quarter of 2011 and far from what is needed to fuel a faster drop in the unemployment rate.

However, much of the weakness came from a slowdown in inventory accumulation and a sharp drop in military spending. These factors are expected to reverse in the first quarter.

Consumer spending was more robust by comparison, although it only expanded at a 2.1 percent annual rate.

Because household spending powers about 70 percent of national output, this still-lackluster pace of growth suggests underlying momentum in the economy was quite modest as it entered the first quarter, when significant fiscal tightening began.

Initially, the government had estimated the economy shrank at a 0.1 percent annual rate in the last three months of 2012. That had shocked economists.

Thursday's report showed the reasons for the decline were mostly as initially estimated. Inventories subtracted 1.55 percentage points from the GDP growth rate during the period, a little more of a drag than initially estimated. Defense spending plunged 22 percent, shaving 1.28 points off growth as in the previous estimate.

There were some relatively bright spots, however. Imports fell 4.5 percent during the period, which added to the overall growth rate because it was a larger drop than in the third quarter. Buying goods from foreigners bleeds money from the economy, subtracting from economic growth.

Also helping reverse the initial view of an economic contraction, exports did not fall as much during the period as the government had thought when it released its advance GDP estimate in January. Exports have been hampered by a recession in Europe, a cooling Chinese economy and storm-related port disruptions.

Excluding the volatile inventories component, GDP rose at a revised 1.7 percent rate, in line with expectations. These final sales of goods and services had been previously estimated to have increased at a 1.1 percent pace.

Business spending was revised to show more growth during the period than initially thought, adding about a percentage point to the growth rate.

Growth in home building was revised slightly higher to show a 17.5 percent annual rate. Residential construction is one of the brighter spots in the economy and is benefiting from the Federal Reserve's ultra easy monetary policy stance, which has driven mortgage rates to record lows. (Reporting by Jason Lange; Editing by Andrea Ricci)
 

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Chicago archdiocese to close or consolidate five schools









The Roman Catholic Archdiocese of Chicago is laying off about 10 percent of its work force and is planning to close or consolidate about five schools to reverse "unsustainable" deficits.

The downsizing, which apparently has been in the works for months, coincides with the arrival of Cardinal Francis George in Rome this week to participate in the conclave to choose a new pope.


In a lengthy letter to parishioners posted on the archdiocese website, George outlines cost-cutting measures for the archdiocese, which has been running operating deficits of more than $30 million every year for the past four years.


"Since this trend is unsustainable, I want to set out the measures we are taking to ensure prudent stewardship of our resources for years to come," George says in the letter.








At the Pastoral Center, 75 positions have been cut, including 55 full-time roles. That reduction is estimated to save $11 million to $13 million annually by fiscal year 2015, according to George.

“Our employees are faith-filled men and women who have worked tirelessly for the good of the Church.  Please keep them in your prayers,” he wrote.


George wrote in his Cardinal’s Column that other cost-cutting measures would include closing or consolidating “a few schools that are no longer sustainable.”

About five schools will be closed or consolidated, some of which have seen demographic changes or other challenges, according to the letter. The archdiocese plans to give out scholarships to children affected by the change so they can attend nearby Catholic schools.

The archdiocese will also reduce its annual aid to schools by $10 million next year. “We hope to return to a sustainable level of aid for those schools that will always be facing financial difficulties,” George wrote.

In addition, pastors received letters in the past month informing them there would be no more loans granted from the archdiocese bank.

No parish priests will lose their assignments in the downsizing, the Tribune has learned. But administrative staff at the pastoral center could be cut.

Earlier this year, the school system rolled out a strategic plan to make schools more self-sufficient.


"This review of archdiocesan finances has been necessary but difficult," the cardinal concludes in his letter. "Reductions in some services and in staffing will, of course, be particularly difficult for the persons and parishes directly affected by them.  These actions are being taken now because the financial situation imposes them.  We are also taking them, however, so that the archdiocese will have the resources she needs for her mission."


mbrachear@tribune.com





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Author tells businesses to be like Mike


























































An author of a new book has some sage advice for business leaders: Be more like Michael Jordan.

Bruce Piasecki, who penned "Doing More with Teams: The New Way to Winning," says Michael Jordan's long and storied career "is a shining example of how the best teams operate."






Jordan shouldn't be emulated just because of the Bulls star's individual success, the author says, but by the way he showed leadership and helped create a seemingly unstoppable team, meshing with different personalities such as the quiet Scottie Pippen and outrageous Dennis Rodman to create a basketball dynasty.

Those team dynamics are similar in the business world, the author says. And businesses are most successful when they are led by the right leaders and are composed of a mix of people with varying talents, he argues.

Jordan also is held up as an example in other tenets of good business teamwork the author describes.

-- Ego and individual goals have no place on teams.

"When we pin all our hopes on a single individual and ignore the context in which he or she operates, we will be disappointed," he says.

--  Failure is part of winning.

"Leaders must instill in teams a tolerance of losing," he said. "We must convey that failure is a part of life and thus a part of business."

Jordan, who helped the Chicago Bulls win six NBA championships, famously said "I've failed over and over and over again in my life, and that is why I succeed."

The book is set to be released next month but is available for pre-order on Amazon.com.




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Chicago pelted by snow, sleet









A winter weather advisory has been issued for today as the Chicago area is getting hit with sleet, freezing rain and snow from a storm that churned the southern Plains a day earlier.


The National Weather Service expects snow  to fall the heaviest between mid-day and early afternoon, though accumulations will vary in different parts the city.


"It does look like the early part of the rush hour will be most affected," said Mike Bardou, a Romeoville-based meteorologist for The National Weather Service.








The northern part of the city and the northwest suburbs could see 2 to 3 inches of snow by the evening rush hour, he said.


During a similar time frame, Chicago's South Side and southwest suburbs like Oak Lawn, Tinley Park and Joliet might only get 1 to 2 inches of snow, according to the agency. The far south suburbs could see less than an inch.


Snow will continue to fall, though at a lighter intensity, through the evening until early tomorrow morning, according to the agency, and temperatures are expected to hover right around freezing.


So far, the early mixture of rain, sleetr and snow has resulted in non-serious accidents on Interstate 90, I-94 and I-55, according to the Illinois State Police.


The threat of heavy weather has already prompted a large number of schools to cancel after-school activities, according to the Emergency Closing Center on ChicagoWeatherCenter.com, and many are even closing early.

The weather has also thrown a monkey wrench into scheduling of early-round games in the boys state basketball tournaments. Many games downstate have been postponed for a day and in the Chicago area, games at Chicago's St. Ignatius College Prep and at South Elgin High School have  been postponed as well.


The storm bore down on the southern Plains on Monday, dumping more than a foot of snow and creating blizzard conditions in Oklahoma, Texas and parts of Kansas still digging out from a winter storm last week.


Highways in the Texas and Oklahoma panhandles and parts of Kansas were closed by the heavy and drifting snow that cut visibility and forced flight cancellations at airports across the region.


A man was killed Monday when his car slid off Interstate 70 in Sherman County, Kansas, near the western border, Governor Sam Brownback said. And in northern Oklahoma, one person died when the roof of a home partially collapsed in the city of Woodward, said Matt Lehenbauer, the city's emergency management director.


"We have roofs collapsing all over town," said Woodward Mayor Roscoe Hill Jr. "We really have a mess on our hands."


The storm was slowly moving out of Texas on Monday, while residents of Kansas City in turn were preparing for a foot or more of snow into Tuesday.


Tornado watches were in place Monday evening in parts of Mississippi and heavy rain was expected through the night in parts of Alabama and Georgia, according to the National Weather Service. The weather service Monday also issued flood watches for parts of the Carolinas and an ice storm warning for portions of West Virginia.


Some 17 inches of snow fell near Amarillo, Texas, according to the National Weather Service. Other areas in the Texas Panhandle reported more than a foot of snow and Texas Governor Rick Perry activated Texas military forces to be ready to respond to calls for assistance.


Amarillo could break the all-time record for the amount of snow in one day of just over 18 inches set in 1934, said Kristin Scotten of the National Weather Service.


Airports in Amarillo and in Lubbock, Texas, were closed and Interstate 27 between the cities was shut because of blowing snow, state officials said. Wind gusts of 75 miles per hour (121 km per hour) were clocked at the Amarillo airport.


Visibility was near zero on some roads around Amarillo, said Paul Braun, a Texas Department of Transportation spokesman.


"I am hearing that we have a lot of vehicles that are stalled in the main lanes of our roadways and they can't be seen because of the blowing snow," Braun said.


Texas State Trooper Gabriel Medrano said the snow was too deep to measure in Lubbock.





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Cellar victim Kampusch raped, starved in film of ordeal






VIENNA (Reuters) – A new film based on the story of Austrian kidnap victim Natascha Kampusch shows her being repeatedly raped by the captor who beat and starved her during the eight-and-a-half years that he kept her in a cellar beneath his house.


Kampusch was snatched on her way to school at the age of 10 by Wolfgang Priklopil and held in a windowless cell under his garage near Vienna until she escaped in 2006, causing a sensation in Austria and abroad. Priklopil committed suicide.






Kampusch had always refused to respond to claims that she had had sex with Priklopil, but in a German television interview on her 25th birthday last week said she had decided to reveal the truth because it had leaked out from police files.


The film, “3,096 Days” – based on Kampusch’s autobiography of the same name – soberly portrays her captivity in a windowless cellar less than 6 square metres (65 square feet) in area, often deprived of food for days at a time.


The emaciated Kampusch – who weighed just 38 kg (84 pounds) at one point in 2004 – keeps a diary written on toilet paper concealed in a box.


One entry reads: “At least 60 blows in the face. Ten to 15 nausea-inducing fist blows to the head. One strike with the fist with full weight to my right ear.”


The movie shows occasional moments that approach tenderness, such as when Priklopil presents her with a cake for her 18th birthday or buys her a dress as a gift – but then immediately goes on to chide her for not knowing how to waltz with him.


GREY AREAS


Antonia Campbell-Hughes, who plays the teenaged Kampusch, said she had tried to portray “the strength of someone’s soul, the ability of people to survive… but also the grey areas within a relationship that people don’t necessarily understand.”


The British actress said she had not met Kampusch during the making of the film or since. “It was a very isolated time, it was a bubble of time, and I wanted to keep that very focused,” she told journalists as she arrived for the Vienna premiere.


Kampusch herself attended the premiere, looking composed as she posed for pictures but declining to give interviews.


In an interview with Germany’s Bild Zeitung last week, she said: “Yes, I did recognize myself, although the reality was even worse. But one can’t really show that in the cinema, since it wasn’t supposed to be a horror film.”


The movie, made at the Constantin Film studios in Bavaria, Germany, also stars Amy Pidgeon as the 10-year-old Kampusch and Danish actor Thure Lindhardt as Priklopil.


“I focused mainly on playing the human being because… we have to remember it was a human being. Monsters do not exist, they’re only in cartoons,” Lindhart said.


“It became clear to me that it’s a story about survival, and it’s a story about surviving eight years of hell. If that story can be told then I can also play the bad guy.”


The director was German-American Sherry Hormann, who made her English-language debut with the 2009 move “Desert Flower”, an adaptation of the autobiography of Somali-born model and anti-female circumcision activist Waris Dirie.


“I’m a mother and I wonder at the strength of this child, and it was important for me to tell this story from a different perspective, to tell how this child using her own strength could survive this atrocious martyrdom,” Hormann said.


The Kampusch case was followed two years later by that of Josef Fritzl, an Austrian who held his daughter captive in a cellar for 24 years and fathered seven children with her.


The crimes prompted soul-searching about the Austrian psyche, and questions as to how the authorities and neighbors could have let such crimes go undetected for so long.


The film goes on general release on Thursday.


(Reporting by Georgina Prodhan, Editing by Paul Casciato)


Movies News Headlines – Yahoo! News





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JPMorgan to eliminate 4,000 jobs in 2013









JPMorgan Chase & Co. plans to cut 3,000 to 4,000 jobs in its consumer bank in 2013, representing about 1.5 percent of the company's overall workforce, it said in a presentation to investors on Tuesday.

The cuts will come mainly through attrition, spokeswoman Kristin Lemkau said.

Additionally, Forbes reports that job cuts in its mortgage and community banking units could total 19,000.

JPMorgan Chase had 258,965 employees globally at the end of 2012. Its headcount rose following the financial crisis, to 262,882 in the second quarter of 2012 from 219,569 in the first quarter of 2009. Since last year's second quarter, staffing levels have drifted lower.

The bank has been building more branches even as competitors such as Bank of America Corp have scaled back. But its consumer bank business is also looking to reduce costs in its branches by staffing them more efficiently, JPMorgan Chase said in the presentation.

JPMorgan Chase had 5,614 branches at the end of 2012, making its network the second-biggest in the United States behind Wells Fargo & Co. JPMorgan is No. 3 in deposits, behind Bank of America and Wells Fargo.

The bank hopes to sell more services, such as wealth management, at its branches, and allow its automated teller machines to handle more routine transactions such as check deposits.

JPMorgan Chase said in its presentation that it is aiming to cut overall expenses by $1 billion in 2013.
 



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Oscars analysis: 'Argo,' Ang Lee are night's big winners








Blowing past the distant Civil War history of “Lincoln” and the more controversial recent history of “Zero Dark Thirty,” director and star Ben Affleck’s rousing, reassuringly apolitical thriller “Argo” won Sunday’s Academy Award for best picture.


This was a rebuke to the very academy bestowing the prize: Affleck failed to receive a directing nomination for “Argo,” joining “Zero Dark Thirty” director Kathryn Bigelow as the evening’s most conspicuous snubs.


MORE OSCARS: Red carpet pics | Winners | Backstage






In their place, Ang Lee scored his second directing Oscar (following “Brokeback Mountain”) for the formidable technical achievement that was “Life of Pi,” which won four Oscars in all. Widely considered an unfilmable novel, Lee’s supple handling of the story of a boy, a tiger, a lifeboat and a slew of digital visual wonders has led to a picture grossing nearly $600 million in worldwide. box office receipts.


This has happened with Lee before. His “Brokeback Mountain” directing Oscar didn’t come attached to a best picture win for the same movie; the big prize that year went to “Crash” instead.


Sunday night’s "Life of Pi" win for Lee marked the second time the director went up against industry lion Steven Spielberg, nominated for "Lincoln," and won.


Spielberg's film won just two Oscars, for Daniel Day-Lewis's towering lead performance and production design. It was instead the night of "Argo," which won three Oscars, and "Life of Pi."


A couple of months ago the best picture Oscar seemed like "Lincoln's" to lose. But after receiving top prizes from the Golden Globes, the Directors Guild of America and the Producers Guild of America, as well as the Screen Actors Guild ensemble award, "Argo" officially became the front-runner. No movie has ever won the Globes, the DGA, the PGA and the SAG without eventually picking up the Oscar.


In the academy’s 85-year awards history, "Argo" is only the fourth to secure best picture without an accompanying directorial nomination. The other three: "Wings" (1927, the first best picture winner), “Grand Hotel” (1932) and "Driving Miss Daisy" (1989).


“Lincoln” seemed to lose its Oscar mojo the second the nominations were announced Jan. 10, even though Spielberg’s superb slice of historical fiction (scripted by the dramatist Tony Kushner, who lost the adapted screenwriting Oscar to “Argo’s” Chris Terrio) pulled down 12 nominations in all, the most of any film.


The best actress race was widely considered one of the evening’s tough calls. Emmanuelle Riva, at 86 the oldest-ever leading actress Oscar nominee (for “Amour”), made the trip all the way from Paris to attend the academy’s prom night Sunday. Quvenzhane Wallis, 9, was the youngest-ever best actress nominee, cited for “Beasts of the Southern Wild.”


But it went to Jennifer Lawrence, queen of several news cycles’ worth of magazine covers. This was her first Oscar (she was nominated previously for “Winter’s Bone “), recognizing her performance as a young widow dancing her way to a better place in “Silver Linings Playbook.”


When Affleck got squeezed out of a directing nomination (owing, perhaps, to the heartening inclusion of Michael Haneke for “Amour”) invisible waves of “not fair!” sympathy starting rolling Affleck’s way last month. People like “Argo”; it’s a good time, triumphantly rousing in its depiction of a CIA success story free of nagging elements such as waterboarding or other forms of enhanced interrogation techniques depicted in “Zero Dark Thirty.”


A vote for “Argo” was a vote for Hollywood, and for America. Inspired by a real-life CIA mission, “Argo” told a gripping story of Americans in hiding and their savior, CIA “exfiltration” expert Tony Mendez, posing as a Hollywood film crew scouting locations in Tehran for a “Star Wars”-type adventure movie, the “Argo” of the title.


Affleck, who plays Mendez in the picture, cast the beloved character actors Alan Arkin (nominated in the supporting actor category) and John Goodman as the mission’s Hollywood connections. Their deceptions help save the day. “Argo” is a bigger valentine to the film industry than even last year’s big Oscar winner, “The Artist."


People just plain like Affleck’s movie. Its confident, propulsive craftsmanship plays well no matter how little sleep you had the night before (can’t say the same about “Amour” or “Lincoln,” excellent films both). Oscar voters relished Affleck’s evocation of such 1970s thrillers as “Three Days of the Condor” or “All the President’s Men."


The movie is a throwback, but it feels vital. And it’s a good time —triumphantly rousing in its depiction of a CIA success story free of nagging elements such as waterboarding or other forms of enhanced interrogation techniques, the ones depicted in “Zero Dark Thirty.”


In the feature documentary category “Searching For Sugar Man,” an irresistible portrait of a nearly forgotten singer-songwriter, aced its weightier competition, chiefly the superb Israeli doc “The Gatekeepers.”


The “In Memoriam” segment of Sunday’s Academy Awards paid tribute to film industry talents who died last year. We lost beloved character actors: Charles Durning, Jack Klugman, Ernest Borgnine. Even avant-garde filmmaker Chris Marker got his (fleeting) due, along with film critic Andrew Sarris. And Barbra Streisand sang “The Way We Were” in honor of that infernally durable song’s late composer, Marvin Hamlisch.


I always like the looking-back part of the Oscars best, but Sunday’s show looked back in something like adoration adoringly at the old days throughout. Like “Family Guy,” the animated snarkfest on which host Seth MacFarlane made his fortune, the Oscar bash worked on alternating currents of ethnic, misogynist and/or “Star Trek” wisecracks and Ggolden Aage movie and Broadway standards. Strange mixture. But “Family Guy’s” is still running.


The evening’s first surprise: Christoph Waltz. Over such contenders as Robert De Niro (for “Silver Linings Playbook”) and Tommy Lee Jones (for “Lincoln”), the droll character actor scored his second Oscar in four years, both times for bringing a voluble Quentin Tarantino character to life. First time, a Nazi, in “Inglourious Basterds”; this time, a dashing bounty hunter riding through Tarantino’s spaghetti-Western version of the Civil War era.


The evening’s least surprising win, next to Day-Lewis: Anne Hathaway, winning the supporting actress statuette for singing her dying guts out as Fantine in “Les Miserables.” Even those who detest “Les Miserables” and its overbearing attack on the audience’s tear ducts have to concede: Hathaway's the best thing in it. As widely predicted, given her various wins in recent weeks leading up to the Oscars, Hathaway’s fervent portrayal scored the actress her first win Sunday. Her big number, “I Dream a Dream,” was filmed by director Tom Hooper in a single-take, full-bore close-up, thereby enshrining the performance and the performer for academy sanctification.


After which New York magazine’s Frank Rich tweeted: “God is dead.”


mjphillips@tribune.com






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Horsemeat found in IKEA meatballs









PRAGUE/STOCKHOLM (Reuters) - Sweden's IKEA stopped nearly all sales of meatballs at its furniture store cafeterias across Europe after tests in the Czech Republic on Monday showed some contained horsemeat.

The world's No. 1 furniture retailer, known also for the signature restaurants at its huge out-of-town stores, said it was pulling all meatballs produced by its main supplier in Sweden after the tests showed horsemeat in its beef and pork meatballs.

A European scandal erupted last month when tests in Ireland revealed some beef products contained horsemeat, triggering recalls of ready-made meals in several countries and damaging confidence in Europe's vast and complex food industry.

Meatballs, a famous Swedish dish often served with mashed potatoes, gravy and lingonberry jam, have become a trademark for IKEA, which sells them hot from the in-store cafeterias and packaged off the shelf.

The vast majority of IKEA's meatballs are made by Sweden's Familjen Dafgard, which said on its website that it was investigating the situation and would receive further test results in coming days.

The withdrawals did not affect meatballs in Norway, Russia, nor some in Switzerland or Poland, which were made by other suppliers, said IKEA spokeswoman Ylva Magnusson at the company's headquarters in Helsingborg, southern Sweden.

"We are now getting to the bottom of this and making extra tests, but we have decided to stop the meatball sales for a few days, so that no one needs to worry, until we have the results," Magnusson said.

IKEA stores in the United States, Canada, Australia and Japan were unaffected as they too have other suppliers.

Besides the Czech Republic, the batch containing horsemeat had also been on sale in Britain, Portugal, Netherlands, Belgium, Slovakia, Hungary, France, Italy, Spain, Greece, Cyprus and Ireland.

Magnusson said the test results would determine the percentage of horsemeat in the specific batch of meatballs. There was no indication that any other batch had been affected.

Earlier this month, food manufacturer Findus was forced to recall thousands of packages of frozen beef lasagnes in Sweden after discovering they contained 60 to 100 percent horsemeat.

On the sidelines of a meeting in Brussels, Sweden's rural affairs minister Eskil Erlandsson called the test results awful.

"Consumers should know that what is labelled on the package should also be inside the package and nothing else," he told Reuters, adding that it may damage IKEA's reputation.

"All fraud has an impact on the reputation of a company, especially when you talk about meat or other foodstuffs."

However, he did not see a need for the European Union to enforce mandatory origin labels for processed meat.

In Italy, consumer rights group Codacons called for checks on all meat products sold by IKEA in the country.

"We are ready to launch legal action and seek compensation not only against the companies who are responsible but also those whose duty it was to protect citizens," Codacons President Carlo Rienzi said in a statement.

The Czech State Veterinary Administration had reported its findings to the EU's Rapid Alert System for Food and Feed, it said in a statement.

The inspectors took samples for DNA tests in IKEA's unit in the city of Brno from a product labelled as "beef and pork meatballs", it said.

(Additional reporting by Mia Shanley in Stockholm, Maria Pia Quaglia in Milan and Charlie Dunmore in Brussels; Writing by Anna Ringstrom; Editing by Tom Pfeiffer)



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Daytona 500 still a go despite accident that injured fans









DAYTONA BEACH, Fla. —





The Daytona 500 NASCAR race will go ahead on Sunday despite a crash on Saturday that injured more than 20 fans, questions over the safety of the famous speedway and the possibility of lawsuits.

Officials said they had repaired the fencing that was damaged after the pile-up which sent debris flying into the crowd and injuring fans on the final lap of Saturday's second-tier Nationwide race.






Halifax Health spokesman Byron Cogdell said that seven people were treated for injuries at their facility but two who had initially been listed as critical were now in a stable condition.

Another injured spectator was being treated at Florida Hospital Memorial Medical Center in Daytona Beach, but their condition was not available.

Fourteen other fans had been treated on site at the track before being released, said Daytona International Speedway president Joei Chitwood.

Chitwood said any fans in the affected area who were concerned about the safety of their seat position would be relocated.

"If fans are unhappy with...their seating location or if they have any incidents, we would relocate them. We will treat that area like we do every other of the grandstand.

"If a fan is not comfortable where they are sitting, we make every accommodation we can," he said.

NASCAR and the speedway could face millions of dollars' worth of claims from the injured, litigation that would likely center on the sturdiness of the safety fence that was supposed to keep fans from danger, according to several plaintiffs' lawyers.

"Maybe the fence should have been higher; maybe there should have been more spacing between the track and spectators," said Adam Levitt, a lawyer with Grant & Eisenhofer.

However, lawyers also said the auto-racing business would likely point to the disclaimers that it typically displays on tickets, which are designed to exempt NASCAR from any potential injury liability. They expected NASCAR would argue that fans knew what they were getting into when signing up for the race.

NEW FENCING

Both the speedway and NASCAR have said they will closely review the incident in search of any ways they could improve safety.

Chitwood said new, 22-feet-high fencing had been put in place three years ago following a review of a crash involving Colin Edwards at Talladega in 2009.

"If you look at our 55 years in the business, we have a pretty good safety track record. I think we are prepared today," said Chitwood.

However, three-times Indianapolis 500 winner Johnny Rutherford said a change might be needed.

"Maybe a double fence, one behind the other with some space in between to stop something like this," he told reporters.

"But there are a lot of things and NASCAR and Indy Car racing are looking at everything they can to make it safer.

"What happened yesterday was a terrible thing because we expect (danger) that is part of it, we have to roll the dice and move on but you don't want to involve the fans," he said.

NASCAR's senior vice-president of racing operations Steve O'Donnell said he would tell any nervous fans that organisers were confident of their safety.

"I would tell them that the fans are our first priority. Obviously we want everyone to be safe at an event," he told reporters.

"We've talked to the speedway. We are confident in what's in place at today's event. Certainly still thinking about those affected but we are confident to move forward for this race," he added.

Fans streamed into the 167,000-capacity venue on Sunday and there was little indication of concern over safety.

"I feel safe. I think anywhere you go you run the risk of being injured but NASCAR does everything they can to protect the fans. They treat the fans like royalty here, it is amazing," said Vinny Nigro of New York City.

Another fan, Brad Stefka from Springfield, Missouri, said that while not particularly worried he would avoid the seating closest to the track.

"I just won't get down low. I would imagine that everyone who comes knows there is some element of danger if the cars are going that fast, if there is going to be a serious impact," he said.



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Promise, peril seen for crowd-funding investors









Crowd funding is widely seen as a revolutionary idea.


A 2012 federal law known as the JOBS Act opens the door to allowing small, privately owned businesses to market ownership stakes in their ventures to people over the Internet.


Companies will be able to sell up to $1 million in equity a year to ordinary investors without having to register the offering with the Securities and Exchange Commission or state regulators.





Before the average person can use crowd funding to stake a claim in a startup, the SEC still must draft rules that the Obama administration hopes will result in U.S. businesses growing and adding jobs. At the same time, the securities cop needs to include safeguards that protect less sophisticated individual investors drawn to inherently risky startups.


That's why equity crowd funding under JOBS, or Jumpstart our Business Startups, has some longtime regulators and securities lawyers squirming.


"It can be an invitation for fraudsters to steal money," Matthew Brown, a Katten Muchin Rosenman lawyer, said last month at a CFA Society of Chicago event at 1871, a center for digital startups in Chicago.


But Brown also noted that equity crowd funding also democratizes small-business financing, a process that historically has given access mostly to wealthier — or, as they're known in high-finance circles, "accredited" — investors.


"The world has changed dramatically, and who's to say who is smarter than anyone else?" Brown added.


Many existing crowd-funding platforms such as Kickstarter don't sell equity stakes in businesses to average investors. Rather, they give consumers the chance to donate money to an enterprise or to get an early or discounted crack at a new product. Since Kickstarter's launch in April 2009, more than $450 million has been pledged by more than 3 million people funding more than 35,000 projects, the New York-based company's website says.


Their acceptance suggests that consumers are willing to engage with companies on a deeper level. As such, enabling unaccredited consumers to invest in companies in small increments online has promise and could become part of the fundraising "ecosystem," says one Chicago entrepreneur.


Abe's Market, a Chicago-based e-commerce site selling natural and organic products from more than 1,000 suppliers, said it would consider crowd funding under the JOBS Act, saying it and its vendors have "die-hard fans" and "a core group of customers" who might like to invest in their vision.


Last month, Abe's raised $5 million from Carmel Ventures, Index Ventures, Beringea and Accel Partners, a Groupon backer. New backers include OurCrowd, a crowd-funding site for accredited investors.


"If you can get passionate people to invest in your business, you're not just gaining investors, you're gaining evangelists," Abe's Chief Executive Richard Demb said. "The challenge for any consumer brand is: How do you find not just customers, but the right customers who are going to tell their friends?"


But there would also be potential headaches for companies raising equity financing through crowd funding, he said.


"You have to make sure that expectations would be set fairly, that no one is putting their life savings into the investment, and that they don't also come back and become a challenge to manage as the business grows," Demb said. "You don't want someone who invested $250 to come back and say, 'I don't think we should expand to the West Coast.'"


Safeguards for average investors exist in the JOBS Act. They include capping nonaccredited individuals' crowd-funding investments at $2,000, or 5 percent of annual income or net worth of less than $100,000, whichever is greater.


Snapclass, launched a few weeks ago at 1871, provides software enabling businesses to provide training online. Co-founder Scott Mandel, who has financed the company himself, doesn't expect to take advantage of equity crowd funding in the future and instead would seek, say, venture capital funding.


"Not all checks are the same," said Mandel, previously a trader and professional poker player. "I'd want someone who could add more than just the cash, such as connections and experience and help with things that I'm not an expert in."


One of 1871's fastest-growing startups is MarkITx. It recently raised $1.2 million from wealthy individuals in its first fundraising round, has seven employees and is looking to add sales jobs. It's an online exchange for businesses wanting to buy and sell used information technology equipment, from iPads to Oracle servers.


"For us, it wouldn't be the sole way to raise money, but it definitely is a viable vehicle to look at raising money," MarkITx partner Marc Brooks said of equity crowd funding under the JOBS Act.





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