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  • 7
    Jul
    2011
    3:36am, EDT

    America, down but not out: A nation of fighters responds

    Bob Sullivan / msnbc.com

    Theresa Amato wants to see all those fine print contracts you don’t want to see. She’s using an army of intern lawyers to translate them into plain-language, and making them available for free online. So send her yours, at FairContracts.org

    By Bob Sullivan, Columnist, NBC News

    Is this the new normal --  a mom with 7-week-old twins waiting tables for travelers at a late-night diner?

    I interviewed dozens of people during my just completed cross-country journey, but my idle late-night chat with a waitress in southern Idaho seemed to strike the loudest chord with readers. I was at a Perkins in Idaho just before midnight; she was talking about her children to customers at another table.  When she came to plunk down my salad, I asked about her kids.

    "I have an 18-month old at home," she said. "And two 7-week-old twins." Her husband works during the day, and she works at night so someone is always with the kids.

    Over on my Facebook page, barbs were slung about this anonymous waitress, who seemed to draw forth every political argument of the past half-century -- about our inadequate health care and maternity leave systems; about low minimum wage standards; about a lack of economic opportunity in small towns, or large ones; about the two-income trap that forces both parents to work to survive; about birth control -- she should have used it, some said -- and about letting people sink or swim on their own personal choices. And many more.

    One thing seemed undeniable, however: the waitress and her story made us angry. Or rather, she exposed our anger. 

    To drive across this great country, coast to coast, is to engage its beauty, its history and its spectacular depth. Making the trip today, however, forces a traveler to confront something else: the unmistakable frustration that grows with each passing month of anemic recovery from a bad recession. The unemployed are tired of looking for work; the underemployed are tired of being insulted by their bosses; home sellers are exhausted trying to find buyers. Even people who are doing OK feel stuck, wondering when their next city park might close, if their health care co-pay is going up or when might be a better time to open a small business. 

    We are tired, and we are angry.

    But we are Americans, which means we don't give up. 

    I was privileged during this past three weeks to meet hundreds of msnbc.com and Red Tape readers who overwhelmed me with their stories about fighting cable TV and cell phone fees, fighting school taxes, fighting to keep small towns alive -- and, yes, fighting with burger customers at midnight so their children will have a chance. The common thread is obvious.  Sometimes it can get ugly, and it's almost always uncomfortable, but America is a nation of fighters. That spirit is our greatest national resource.  That is what will pull us through this dark time.

    With that in mind, here is a collection of stories about men and women I met who have taken on that fight across this great land, and how they are doing.  They may not always get the result they want -- who does? -- but just by fighting, they're already won. A few of them offer ways you can get involved in the fight.

    Theresa Amato

    Theresa Amato has grand dreams. She wants to put an end to confusion caused by fine print in everyday consumer contracts, sometimes called "standard form contracts." If you've ever called a company looking for a refund or a replacement and heard those dreaded words, "No, that's in the contract you signed," you should know Amato and her project, FairContracts.org.

    "What have you agreed to today," is the slogan used by the new project of Citizen Works, a nonprofit.

    Armed with a rotating group of legal interns, Amato invites frustrated consumers to send in every contract they sign with cell phone companies, cable companies, auto dealers, etc., so the folks at FairContracts.org can catalog them and then work to translate them into plain English. The group then works to educate consumers on the latest “tricks and traps” through its website.

    The immediate goal is to make consumers aware of all the consequences of signing everyday contracts. The long-term goal is to shame companies and regulators into making the contracts more fair. 

    "For several decades now, government regulators have used disclosure, and even more disclosure, as the primary tool of monitoring business activities, under a theory that if businesses tell consumers in their fine print, businesses can do as they please and consumers can read for themselves if they agree or not to the terms of any transaction, and choose to enter or walk away from the deal," said Amato, who is based in Chicago. "But unfair and deceptive policies and practices, some would say fraud and abuse, can be and are buried in the fine print. Many scholars argue that it is not rational for consumers to read the fine print, or for courts to expect them to. But courts do expect them to under a ‘duty to read’ in contract law. And there’s the rub."

    Bob Sullivan / msnbc.com

    John Davis is a devoted fee fighter who not only dropped his $100-a-month pay TV bill, but made good use of his old rooftop dish -- he turned it into a TV antenna.

    Among the most common, unfair provisions, according to Amato: Terms that force consumers to surrender their rights to file lawsuits, or enter class-action lawsuits, simply because they buy a phone or a television set. 

    At its core, the problem is this: Because most of these companies include the same contract language, consumers can't really "walk away," unless they plan to avoid using a cell phone or buying a car. Therefore, these aren't really contracts -- deals bargained between two equal parties -- as much as they are one-sided warning notices from companies stating what they plan to refuse to do.

    Amato has firepower behind her effort; Ralph Nader is founder of the organization -- he's called the problem "contract incarceration" in the past.  But she wants help -- believe it or not, she wants your fine print.  Interns working for her project often have trouble getting copies of contracts unless they actually sign up with the companies, which often refuse to surrender copies to non-customers.  So she wants consumers to e-mail all the fine print they have to contracts@FairContracts.org. She'll get her volunteer army to sort through them and make sense out of them. 

    John Davis

    Devoted fee-fighter John Davis of Pittsburgh just couldn't take it anymore and ditched his $1,000-per-year pay TV bill about a year ago.  But he made good use of that now-silent satellite dish on the roof. He turned it into an over-the-air TV antenna.  Now that's making lemonade out of lemons.

    It may look a bit alien, but every time Davis sees his contraption, he thinks about all the money he's saving. 

    John Davis

    John Davis of Pittsburgh rigged up this over-the-air antenna to his old satellite dish; he's saving money and getting a great picture.

    "Our mantra: Never pay subscription fees to watch commercials," Davis said.

    One secret about those new, free digital over-the-air signals that are available to most Americans: the picture quality is often better than pay TV options, even if you're springing for HD. 

    Davis' antenna picks up signals from 35 miles away -- about two dozen stations in all. Thanks to small amplifiers that cost only a couple of dollars, he's able to send signals across 100 feet of coaxial cable to several sets in his house.  A $12.95-per-month TiVo subscription rounds out the setup, giving him a neat on-screen programming guide and, of course, DVR functionality.

    "That's really all we need," he said. 

     Axton Betz

    Axton Betz, 29, was hit hard by ID Theft as a child growing up in Indiana. An impostor spent years opening up credit cards and other accounts in her name. The mess was so bad that when she first applied for a car loan, she was turned down repeatedly, had to use a dealer 100 miles from home and ultimately paid 18.99% interest. 

    Bob Sullivan / msnbc.com

    Axton Betz was hit hard by ID Theft as a child; now she’s one of the nation’s leading researchers on its emotional impact.

    "It was like buying a car with a credit card," she said.

    Betz has slowly restored her credit rating over the nearly 20 years that she's been dealing with the issue since it was discovered when she was 11. But she's done much more than survive. She turned the crime into a career, and is now wrapping up a PhD in Human Development and Family Studies at Iowa State University, focused on identity theft. She's a subject matter expert who's given presentations to the Federal Reserve and other financial industry groups, and she'll begin a teaching career next month at Eastern Illinois University.

    Her current research involves the emotional impact and "recovery experiences" of child ID theft on victims who don't discover it until they are adults. Most, like Betz, have no chance to learn the identity of their impostor because the crime is so stale. They also can suffer from a unique sense of loss about their childhood identity, which can have impacts that range far beyond damaged credit. Betz, for example, says she doesn’t consider her “real” hometown her hometown any longer because of the ID theft.

    "I'm doing this because the consequences of ID theft are not well understood. There's no real research into it," Betz said. "I'm interested in where they sought support, how they think society did or didn't help with their recovery and on their personal experiences of going through it."

    She's still looking for volunteers, who will be paid $40 for sharing their stories in two one-hour chats.  Anyone who's interested can reach Betz at axton@iastate.edu.

    "Ultimately, I believe this will make a difference because it will some day help influence policy, perhaps make punishments for identity theft more severe because of the consequences on victims," she said. "If it does, then my 18 years of experience would be worth it."

    Jaimee Napp

    Jaimee Napp sure would like to see punishments for ID theft criminals increased. She tried to do that single-handedly last week in Omaha, Neb., when she sued her impostor for damages in civil court. 

    Bob Sullivan / msnbc.com

    Jaimee Napp, an ID theft victim readers met last week, was awarded only $215.20 for damages after she filed a lawsuit against in imposter.

    Napp, in one sense, is lucky -- she's among the few victims who knows her impostor, who was a co-worker. Napp spent the last two years working to drag the impostor to district court, and get her to pay for emotional damages inflicted by the crime. We told Napp's story last week. A skeptical judge seemed unmoved by Napp's claims of suffering. He even questioned the very definition of ID theft, but left his ruling for another day.

    That ruling arrived Monday. As expected, it wasn't good news.

    Napp sued for $40,000. The judge awarded her $215.20. 

    The amount won't begin to cover Napp's legal expenses, which are still being tallied. (For perspective: She paid $700 just to have her therapist testify in court.)

    "The theft of a person's Social Security number and other personal facts and the use of that information in attempting to secure credit ... does not rise to the level indicated for (intentional infliction of emotional distress)," the judge said in his order. "It would seem that plaintiff has not suffered from a medically diagnosable and significant emotional distress." The judge instead awarded her compenation for the credit-monitoring services.

    Napp was distraught immediately after the hearing date, but expressed more resolve this week.

    "The verdict is confirmation that identity theft and the (Social Security number) is worth more in the criminal world than the judicial system values it," she said.  Napp continues her work for a government agency in Washington D.C. as a victim's rights advocate, and said she's undeterred by the result. "I will always work and will continue to dedicate my life to indentity theft victims and their rights."

     

    The Hidden Fee Tour of America II

    Denver – School fees? Deficit Spending? Moms are getting MAD

    Golden, Colo – When Lucky died: A grief observed, on social media

    Omaha, Neb – Can ID theft victims sue for damages? Not yet, it seems

    Chicago – Why is housing market stuck? This family offers one answer

    Somewhere in the Midwest – Driving in a bad story? You might be doing the wrong thing

    Detroit – Consumer protection dead, but hope remains, says 93-year-old advocate

    Ohio – An economic shock brings the kids home

    Pittsburgh – Drastic bus cuts strand consumers

    Washington D.C. – Follow the fight for small-town America

     

    Additional photos from the trip, including “The prettiest Interstate in America?

    Read more and follow Bob Sullivan on Facebook.

     

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  • 1
    Jul
    2011
    12:58pm, EDT

    School fees? Deficit spending? Moms are getting MAD

    Amy Oliver, founder of Mothers Against Debt, explains how the organization tries to translate complex issues like federal spending into topics worthy of the dinner table, while MAD member Regan Benson complains about fees and spending at her local school district.

    By Bob Sullivan, Columnist, NBC News

    Regan Benson was furious about the list of fees her local public high school was charging for kids to "just walk in the front door." She was even angrier about where the money was going.

    "It's crazy — $18 for a basic English class; $38 for honors English; $150 for each sport; a $60 graduation fee," she said, holding a paper she called the "fee sheet" from her school district. It had nearly 100 items on it and looked every bit like a small-print contract you might get from a credit card company. "I wouldn't mind if I knew the fees were going for what it says here, but I don't believe that."

    Benson said she wasn't quite sure how to find out where the money was going and, more important, how to make a stink about it.

    Enter "MAD" moms. 


    Benson recently found her way to Amy Oliver, founder of a Golden, Colo.-based group called MAD, or "Mothers Against Debt." Its stated mission is to get moms worried about the government debt their children will inherit and encourage them to ask questions against government spending in their communities.

    "When you talk about a number with 12 zeroes in it, people can't relate," says Oliver. "But when you talk about a bill you're handing to your kids, moms get worried about that. ... No responsible mother would ever let someone rack up a $45,000 bill and hand it to their kids, but that's exactly what we're letting the federal government do to them."

    Oliver is a popular conservative morning radio talk show host in the Denver area and works at a Golden-based libertarian think tank, the Independence Institute. MAD was her idea, and it's funded by the libertarian group.

    "We're trying to change the paradigm about government debt," she said. "We see this as a child welfare issue, and that's the way to get moms interested in it. I call this fiscal child abuse."

    Women often view money different from men, she said. A working mother views higher taxes or lower wages chiefly as a loss of family time — they mean the woman has to work longer hours, leading to more time away from her children.

    Bob Sullivan / msnbc.com

    Amy Oliver, founder of Mothers Against Debt, says the organization is trying to help moms become more active in government.

    "This is how you get moms interested in fiscal issues," she said. "We are getting women active because we help it mean something to them."

    She compared the exploding federal debt to widespread pollution in the 1950s and 1960s, which was often ignored until environmental reform efforts saw their efforts galvanized by publication of an explosive book called "Silent Spring," which predicted the eradication of bird species due to chemical industry malpractice.

    "Back then, people became worried about what kind of world they would leave their children. Well, that's how we feel now. We think this is our 'Silent Spring' moment, only the problem isn't birds, it's dead economic activity," she said. "If we don't get debt under control, our children won't have an economy. There will be no growth. There will be high unemployment. We will keep falling behind."

    Fiscal issues have often been trapped in male-dominated conversations, Oliver thinks, and she's trying to bring the conversation "to the kitchen table."

    One way to do that is to inspire moms to get more involved in local school spending. While school board budgets and federal spending involve two different pots of money, the core issue is the same, said Oliver. ("K-12 education is where their heart lies," she said.) So MAD has a project called "Citizen Auditors," in which concerned community members learn how to read city budgets and file Freedom of Information requests.

    Benson used training from MAD to find out about a $3,000 cell phone bill in her district. She also found out that her school district collects $676,000 in parking permit fees annually.

    "The real question is: What are we getting for all this money we're spending?" Benson said. "People are starting to push back."

    Moms who question schools boards often find they are met with "intellectual bullies," Oliver said, who scoff at supposedly naive questions posed during school board meetings.

    "Well, we see them as obnoxious teenagers who just want to keep reaching into your pocket for money and don't think you have a right to ask what it's for," she said.

    Oliver's group, founded in 2009, enjoyed a whiff of national attention last year when Fox News aired a satiric video made by MAD called "Baby Ball and Chain," showing an animated baby shackled by ever-growing government debt. The brief appearance helped the group collect several thousand Facebook fans. Oliver gets requests from moms all around the country now, she said.

    "Just the other day I got an e-mail from woman in Maine asking, 'How do I find this stuff out about my school district?'" she said.

    To be sure, Oliver's group looks and sounds a lot like the Tea Party. But she says ballooning debt and a mother's concern for her kids' future are non-partisan issues.

    "For years, people have been saying the money is for the kids. The spending is for the kids. It's not. That's a lie, and it's a lie moms have bought for years," she said. "The spending is for the people in the system, not for the kids. … We spend more per capita on schools that any other country, and what results do we get?"

    Of course, it's one thing to talk about excessive government spending; it's another to actually cut spending. Many of Oliver's acolytes encounter the same frustrating Catch-22 that's been bogging down efforts to shrink spending for years — sure, there's infuriating waste, like excessive cell phone charges, but eliminating those discretionary items rarely amounts to much. At every level of government, the real costs are fixed, through long-term teacher contracts, long-term Social Security promises and so on. These are structural problems that can't be fixed overnight.

    "That's why it's important to become involved, to get people interested. And I'm going to say it, to get mom's interested, because men handle money differently than moms do," Oliver said. "That's why we need them in the process."

    Follow Bob Sullivan on Facebook for early notice on new columns and other info.

    Follow Bob Sullivan on Twitter. 

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  • 30
    Jun
    2011
    1:00pm, EDT

    When Lucky died: A grief observed, on social media

    He always insisted on nudging against me while we drove.

    Bob Sullivan / msnbc.com

    Lucky

    By Bob Sullivan, Columnist, NBC News

    GOLDEN, Colo. — There's a reason the expression goes "You look like your dog just died." Losing a dog is a sadness so profound that it's useless to explain to anyone who hasn't been through it.

    In fact, finding others who understand is probably the only way to get through it. This story will explain how this devoted skeptic of social media found it to be a great source of comfort during my time of great need.

    Many of you know that last year I traveled America with my golden retriever, sniffing out scams and ripoffs as part of "Bob and Lucky's Hidden Fee Tour of America." (There was even a theme song.) Naturally, Lucky stole the show, getting on national TV twiceand appearing live on local TV in several towns along the way from Washington to Seattle. His pawprint was far more popular than my signature at every book signing. We made hundreds of friends in dozens of newsrooms, bookstores, hotels and rest stops along the way. He spent nearly all of those 3,000 miles with his head nudged onto my right shoulder, leaving drool stains on the right arm of every shirt I had brought for the trip.

    We were all set to make the same trip this summer, but Lucky decided to go on a longer road trip instead, taking the expressway to dog Heaven on June 11. He was roughly 10 years old — he was a rescue, and he landed in my life eight years ago — and the calendar said I should be ready for this. I was not. He acted like a puppy until the day he died. Right to his last afternoon, every muscle of his oversize body was desperate to say hello to every man, woman and squirrel we encountered. So it was a complete shock when he died of heart trouble — an enlarged heart, to no surprise — during one horrible night at the vet a few weeks ago.

    I am writing this piece in Golden, Colo. — that’s an accident, but a good one. Lucky sure would have liked it here: My hotel is crawling with dogs.  

    * * *

    Comparing personal tragedies is a game you should never play, and I would never dare say my sadness is equal to that of anyone who's lost a job, a home or a child. I will say simply that in losing Lucky this month, my sorrow is complete. When I finally got home to my family about 5 a.m. that awful night, I lay in bed wide awake and could feel every cell of my body hurt. I can still feel that as I type now. No one, nowhere, will ever love me like Lucky did. He was typically food-obsessed, scarfing every meal in seconds, but there was one time he wouldn't eat — if I were rushing in the morning and threw food in his bowl on my way out the door. On those occasions, when I came home after work, I would find his food still in the bowl. In the morning, he'd followed me to the door, laid down and waited there for me all day. The second I opened the door, he'd say a quick hello, and then the poor starved animal would run to eat his breakfast at 6 p.m. He just couldn't eat without me. Now, I feel the same way.

    This kind of loss leaves you searching for answers, and in the sleepless nights that followed I spent a lot of time fruitlessly reading about enlarged hearts, alternatively looking for an explanation that might calm my racing analytical mind or an excuse to blame myself for the ailment to distract my aching heart. 

    You probably know the ending to that trip. I found no answers. But I did find a lot of places to share. For all its faults, the Internet is very good at sharing. In particular, for all the scary things about social media — Facebook's consistent abuse of privacy and the Twitterverse’s self-absorption — I found these tools indispensible in my grief.

    Sharing makes nothing better. It doesn't replace a wet nose, a joyful face, the endless presence of love that follows you everywhere. But still, sharing eases pain.

    * * *

    Of course, there’s nothing new about online grieving. People have been finding new and sometimes strange ways to express loss and mourning since the arrival of the Internet. Virtual wakes appeared almost as soon as Web pages did. 

    Among the newest forms of digital mourning: following someone on Twitter who has recently died. Ryan Dunn, a TV personality made famous through the TV and movie franchise Jackass, had 30,000 followers before he died in an automobile crash June 22. Now, he has 145,000 after a surge of followers arrived when the news hit. Why would someone follow a recently deceased person? The urge to connect, and the Internet’s ability to deliver it, sometimes both seem to be stronger than even mortality itself.

    Online mourning raises sticky issues. You might have noticed not all Web users maintain a sense of decorum or class. Posting a page describing your grief opens you up to hurtful sarcasm, or worse. For that reason, Facebook now offers a “memorial” state for accounts of the deceased that blocks strangers from making posts.

    Still, the urge to virtually eulogize — even among strangers — is strong, as evidenced by the success of a relatively new site named 1000Memories.com, which makes it easy for loved ones to create a memorial page for the deceased. It promises to never allow advertising or to charge a subscription fee. Bring your Kleenex if you click.

    * * *

    As in "real” life, mourning the loss of a pet doesn’t get quite the same regard as mourning the loss of a person, and perhaps it shouldn’t. You can’t tell me that right now, however.

    When Lucky first died, I spent a lot of time reading Web sites that offer advice on surviving the loss of a beloved pet. There's many places offering tips on how to cope. I suspect some would find them helpful. I did not. The sheer amount of people discussing the problem helped me hang on to my sanity, however. A couple of the better sites are here and here.

    There are also a number of sites that allow grieving pet owners to post memorials of their lost dogs, with pictures and paragraphs that serve as online odes to the beloved pets. Some of these post advertisements; some promise not to. I chose not to put Lucky on any of these sites, but reading through the stories there, I found,  helped a little. Misery loves company. Here’s a few:

    http://www.dogquotations.com/write-a-memorial.html

    http://www.critters.com/

    http://www.ilovedmypet.com/

    http://www.pets-memories.com/

    http://www.petsremembrance.com/

    But using the Internet as part of the mourning process, rather than just a source of information, was much more effective, I learned. Plus, I was facing an immediate problem. Lucky was a social butterfly and had hundreds of close friends. And I'd already promised readers another Red Tape road trip with Lucky as the mascot for my blog. How would I tell everyone?

    When someone you love dies, there is always the complicated and painful affair of telling others about the tragedy. The conversations often force you relive the horrible moments, when people naturally ask questions like "How did it happen?" No one knows what to say, and you, as the recipient of the kindness, always sense that and spend your energy trying to make sympathizers feel better instead of saving your strength for you.

    When a dog dies, less sensitive non-dog-owners will inevitably ask a dumb question like "So, are you going to get another dog now?" as if you were trading in a used car. Others will just breeze past the sadness with a trite "He had a good life," and change the subject.

    It all begins to feel like piling on, and sometimes you just can't face all that pain at once.

    Facebook turned out to be a powerful friend in this dilemma.  I wrote a simple status update that explained the basics and created a photo album for Lucky. I was able to tell most of my friends and family at once. It was the most effective way I could avoid telling and re-telling the story hundreds of times. As is custom now, I changed my Facebook avatar picture to an image of Lucky, which signals to Facebook users that something might be wrong. I did the same with my professional Facebook page, letting readers know that he wouldn’t make my coming trip for the saddest of reasons; I called attention to the notice by Tweeting it. 

    I was surprised that pressing "share" on Facebook turned out to be another one of those painful goodbye moments, like packing up his dog toys or placing his dog collar around my car's rear-view mirror. I knew it would set off another chain reaction of sadness, but I was committed to getting that part over with as soon as I could.

    I expected to cry again.  I didn't expect the incredible outpouring of love that came flying through the Internet during the next 48 hours. There is just something about losing a dog, and either you know about it or you don't. I heard from hundreds of people who did, strangers who expressed deep sympathy and then sent me their own tales about their beloved pets who'd passed away. One woman I heard from was even named Sullivan and had lost her dog named Lucky.

    The notes I got from friends touched my heart even more. Many confessed to secretly giving treats to my dog when I wasn’t watching (I was very strict) or reminded me of long-forgotten sweet moments. I won't tire you with stories of how special Lucky was. Your dog is just as special, no doubt. But Lucky lived an amazing life and brought not just joy but healing everywhere he went.  Indulge me this one tale:

    A friend and co-worker told me a secret I'd never heard that was seven years old. She'd lost a baby to a rare childhood illness, and would often seek out Lucky when the depths of her sadness were unbearable. "Things just seemed better" after playing with him, she said. "He just seemed to get people, intuit what they needed and purely, simply offered love."

    My dog was able to comfort a woman grieving the loss of her baby, and I never even knew about it. Oh, did that make me cry. Every time I re-read her note, I cry.

    But somehow, things seemed better. All these kind thoughts, these memories, these well-wishes — they felt as important as food and water to me during this time.

    I think this point is particularly important for men, who in are society are neither well equipped to give nor to receive this kind of emotional outpouring in public. I was able to privately read these notes over and over when I needed to, particularly when a wave of sadness came, and somehow, it did make things better. I was in awe of how much good Lucky did in his short life.

    None of this has made hotel rooms less lonely as I make my way across country now. I miss the way Lucky would charge into each new room, taking complete inventory of the place with his nose and then try to beat me to the toilet bowl. His breathing at night —even his snoring — was more powerful than any sleeping pill. It’s so strange not having to wake up early and run outside to search for just the right patch of grass so Lucky can  do his business.

    Sharing things on social networks is hardly foolproof. Despite how it seems, not everyone reads Facebook every day. Plenty of readers and sources I've encountered on this road trip have still asked me why Lucky wasn't with me. Then they felt bad, and I felt bad. 

    But Facebook and Twitter saved me hundreds of these dreadful encounters and eased my pain. For me, it was the perfect tool for tastefully sharing bad news and for facing grief head on. Social media 1, social media critic 0.

     I know I will get another dog someday, probably sooner than seems right now. As another friend put it, "another fellow will just wander up to your campfire when the time is right." But that's not until I get over the irrational anger I feel every time I see a healthy dog running, jumping and wagging his tail. I'm going to be sad for a while, and that's how this is supposed to work. For now, I will hope and pray that whatever family has my future rescue pet today is taking good care of him and that whatever the reason they will eventually put him up for adoption, the pain of separation will not be too great for them or him. 

    Follow Bob Sullivan on Facebook for early notice on new columns and other info.

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  • 28
    Jun
    2011
    2:26pm, EDT

    Can ID theft victims sue imposters for damages? Not yet, it seems

    Jaimee Napp explains why she filed a civil lawsuit against the imposter who stole her identity and why the court's reaction to her was sadly disappointing.

    By Bob Sullivan, Columnist, NBC News

    OMAHA, Neb. — On the fourth floor of Douglas County Courthouse, Jaimee Napp opened a new front in the war on identity theft. She did something every ID theft victim has probably dreamed of doing: Napp sued her imposter in civil court for damages.

    This first battle didn't go well.

    District Judge John Hartigan interrupted the closing arguments by beginning a debate on the meaning of term "identity theft" ("It's not like someone took her soul."). After Napp's therapist said she was suffering from symptoms consistent with post-traumatic stress disorder, defense attorney Tim Mikulicz said that claim was a "slap in the face to every soldier returning from Iraq."

    Civil court, for now, is unfriendly territory for identity theft victims.

    In fact, a new study being released this week shows that ID theft victims are denied rights granted other crime victims — like restitution hearings or notice of court appearances — in 14 states.

    After a two-year battle for her day in civil court, Rapp spent nearly two hours justifying expenses and allowed her therapist to share intimate details about her sense of paranoia following her bout with ID theft. Legally speaking, it seemed to get her nowhere. 

    There's no question about the guilt of Napp's defendant, Jackie Brown, who was Napp's co-worker in a small Omaha retail shop six years ago. Brown rifled through the firm's files and stole Napp's Social Security number and gave it to her then-boyfriend. The stolen data was then used in attempts to open credit card accounts. Brown said in court Monday that she was a methamphetamine addict at the time and didn't remember many details of the incident. 

    Napp says trauma from the ID theft led her to feeling unsafe at work and led to bouts of paranoia throughout her life. She regularly suspected she was being followed when she drove home from work, often circling the block several times. She suffered nightmares. She entered counseling, ultimately undergoing 44 sessions of treatment for what was diagnosed as post-traumatic stress disorder. Ultimately, she was fired from her job at ConAgra Foods for non-performance. 

    Brown said in court Monday that she spent five months in jail after pleading guilty to theft by deception, then spent none more months in a halfway house after completing a drug treatment program. She said she's now "clean" and has gainful employment.

    Bob Sullivan / msnbc.com

    Jaimee Napp outside the Douglas County Courthouse in Omaha, Neb.

    Napp described the period after the crime as a slow descent into psychological torture. She was worried about all the other co-workers who could access her personal information and worried about possible retribution from her imposter.

    "I felt like I couldn't trust my co-workers, my managers," she said. "I wore an iPod all the time so no one would talk to me. ... I changed my hair color. I sold my car because she knew what kind of car I drive," Napp said. "This incident changed me. ... I wish I could just move on, but this incident will follow me forever."

    While Napp's imposter has not attempted any additional acts of identity theft, a bounced check ended up on Napp's credit record in 2009 after someone paid for gas in nearby Council Bluffs using a check with her Social Security number on it.

    Napp asked the court to grant her damages of $46,000, accounting for out-of-pocket expenses like credit monitoring, the costs of therapy treatments, lost time to deal with the mess and lost wages. 

    It's impossible to predict how the judge might ultimately rule when he hands down his decision in a week or so, but Hartigan's tone during closing arguments gave Napp and her attorney, Harris Kuhn, little hope that she would win.

    "There is no law in Nebraska which makes this an easy argument," Kuhn said. 

    While the logic of forcing someone to pay for damages caused by committing ID theft might seem sound, Kuhn said the only legal argument available to him under Nebraska law was a so-called "conversion" claim, which translates loosely as the civil equivalent of criminal theft. But a conversion claim — which traditionally might involve disputes such as a neighbor's unjustly milking another's cows — requires establishment of damages. Despite 77 pages of receipts, phone bills and health care records, Hartigan seemed unconvinced that any real damages had occurred.

    Napp "has not testified to any loss," he said. "She hasn't been charged more for credit."

    The judge also didn't interrupt during the defense attorney's closing argument, as Mikulicz said Napp should "move on" from the incident.

    "I don't think it's an act to make you jump up and down and say, 'That's outrageous behavior,'" said Mikulicz said. "Again, with all due respect, saying she is suffering from post-traumatic stress disorder is a slap in the face to every soldier who's served in Iraq, in Vietnam, in Korea ... and to every rape victim."

    Napp openly wept as he finished. But later, she was philosophical about her day in court.

    "Even though things didn't go well today, I think I did something great today," she said.

    After two years of therapy, Napp began working as a consultant and slowly gained a reputation as an identity theft victim expert — a path her therapist said was part of her healing process. Napp works for the federal government as an expert consultant on victim rights. She is also head of the Identity Theft Action Council of Nebraska, has testified before Congress and has urged the National Crime Victim Law Institute to study ID theft victims' legal rights.

    That agency's research, released Tuesday, shows that in 14 states, ID theft victims aren't recognized as "victims" under the state's victim rights statute — including Nebraska. In many states, victim status grants a clear legal path for a civil action designed to recover money damages.

    "I just have to keep fighting," Napp said. "I'm hopeful at some point judges will understand and be more educated about this type of crime and there will be different outcomes."

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  • 27
    Jun
    2011
    1:55pm, EDT

    Why is housing market stuck? This family offers one answer

    Ron and Cheryl Schmalz describe the paperwork nightmares they faced while trying to get a loan modification so they could keep their Chicago-area home, while Christine Nielsen of the Illinois attorney general's office explains the scope of the problem.

    By Bob Sullivan, Columnist, NBC News

    CHICAGO — Ron and Cheryl Schmalz think they know one reason the U.S. housing market is stuck. They just spent more than two years and created about 50 pounds' worth of paper trying to get a $300-per-month modification to their mortgage. 

    Nearly every month for the past two years, the Schmalzes received a warning from their mortgage holder, JP Morgan Chase, that the bank was about to foreclose on their home and that late fees were mercilessly piling up. Nearly every two months, the couple would dutifully fax in a pile of paperwork reminding the firm that they were participating in its loan modification program and making trial payments prescribed by the bank.

    "We had 17 different relationship managers," said Ron Schmalz. "They just make you file the same papers again and again and again. And each time you get a new manager, you have to start over. The last time we thought we had a permanent modification, we got another call that said, 'Hi, I'm your new representative.' It makes you crazy."

    There are many troubling clogs in the mortgage pipeline that are keeping the housing market stuck — lenders aren't lending; there are too many homes for sale; there's a lack of buyers because of poor employment prospects. But one critical clog is the limbo faced by homeowners who can't afford their full mortgage payments any longer but who could survive if their loans were refinanced or modified. In 2009, the Obama administration launched its Home Affordable Modification Program (HAMP), estimating it would help keep 5 million families in their home — and keep 4 million empty houses off the market, critical to the health of the housing market. At the same time, banks committed to continuing their similar, parallel proprietary modification processes.

    Bob Sullivan / msnbc.com

    Ron and Cheryl Schmalz look over the mountain of paperwork they amassed while trying to obtain a modification on their home mortgage.

    The Schmalzes' odyssey is a window into the challenges faced by homeowners looking for help, by government regulators trying to prop up the failing market and by banks trying to pick the right bets among mortgage holders who might be able to pay some, but not all, of their monthly payments.

    The Schmalz family has a happy ending. After two years of effort, the monthly payment on their Chicago-area home was reduced from about $1,175 a month to $861. It's not a free ride: Their original $90,000 mortgage is now a $98,000 mortgage, and the couple will make up for the lowered payments with additional payments on the end of the loan. 

    Still, the break the couple got in April represents the end of a nightmare that began in September 2008, when Ron lost his job in telecommunications and the couple told the bank it needed help. It's a Red Tape wrestling match that Ron Schmalz says can break the spirit of homeowners who might otherwise be able to ride out the rough employment market.

    "You keep going and you keep giving and you keep doing and you keep faxing and you keep calling to no avail. And you just feel like you're a gerbil," said Ron. "You're sitting in a wheel going nowhere."

    Right after losing his job, Ron Schmalz began working with Washington Mutual, the original mortgage holder, on the modification paperwork. By early 2009, it was clear the application was in trouble, as Chase's acquisition of Washington Mutual had thrown things into disarray. After a few rounds of resubmitting required tax forms, income statements and monthly budgets, the Schmalzes were denied. 

    Ron Schmalz had found a new job by then, albeit at a lower salary, and for a few months in 2009, the couple tried to keep up with their $1,100 payments. But then Cheryl lost her job, they missed a payment, and they resubmitted their application. Working with Chase's proprietary modification program, rather than the government's HAMP program, they were given a temporary modified payment around $800 per month. The couple says they dutifully made the new payments beginning in January 2010 and were told that within three months that Chase would decide whether the adjustment would be made permanent or rescinded, so either way, they could move on with their lives. 

    Then, 14 months passed.

    Letters saying "We are prepared to start foreclosure proceedings" arrived every month. Ironically, they all included instructions on how to enter a loan modification program.

    Almost as frequently, the Schmalz family says, they were told they'd forgotten to submit a tax form or an income form, or that their file was incomplete, so no decision could be made. With nearly every conversation, there was a new "relationship manager."

    "It's about obstacles. It's about what they placed in front of us to make this modification a reality. It made things very difficult," Ron said.

    There's no way to know who's to blame for paperwork mishaps, but the Schmalzes brought quite an organized pile of documents and file folders with them to show a reporter.

    "Things got so tense that we were at each other's throat, saying: 'Did you file this? Didn't you file that?' You know, sometimes blaming each other," said Cheryl. By that point, they'd fallen behind by $10,000, and "the tune of our conversations with Chase got nasty."

    In the middle of 2010, the couple turned to Illinois Attorney General Lisa Madigan looking for help.

    After a flurry of complaints dogged the various loan modification programs, Madigan's office had created a special division to deal with consumers facing the Schmalzes' plight. The agency gets about 200 calls per week to its mortgage help hotline, said Christine Nielsen, who heads the division. It brought on two full-time housing counselors to help homeowners submit loan modification requests to banks; still, she's seen the difficulty consumers have when working with banks. Despite a flurry of complaints about modification applications in late 2010, homeowners are still being left in the lurch.

    "Consumers are still having a fair amount of difficulty getting answers from banks about their loan modification applications," she said. She said the Schmalz case was typical of the problems consumers are encountering, but some are much worse. One recent applicant was turned down for a modification by another bank (not Chase) because of a difference of $20 per month, she said.

    Chase wouldn't discuss the specifics of the Schmalz case, other than to say the firm provided the family with a "special forbearance" in 2010 and a modification in 2011.

    "In general, we need complete and current information from a customer to make a modification decision," a Chase spokesman said. 

    Timely processing of modification applications is essential to the housing market recovery, said Madigan.

    "Our nation continues to be in the grips of a home foreclosure crisis of unprecedented proportions. Meaningful loan modifications — ones that truly reduce a homeowner's payments to affordable levels — can save homes, yet people often face serious obstacles attempting to navigate the loan modification process on their own," Madigan said. "Resources provided by my office and other HUD-certified housing counselors can help people received a modification by ensuring banks comply with federal modification guidelines."

    As the modification process drags out over months, or even years, it's easy to understand the problem facing both banks and consumers. Generally, banks are working off an affordability formula based on income. Financial circumstances change; applicants can and do lose or recover income after they submit an application, which requires a recalculation. That explains part of the delay faced by the Schmalz family.

    Excessive delays, however, lead inevitably to such changes. A family that applies for help because of a loss of income will be working immediately to replace that income. That places them squarely in a catch-22 — success finding a job could lead to failure in a loan modification application or, more specifically, in the conversion of a temporary to a permanent modification. The delays leave the family in a perpetual state of uncertainty, with a pile of threatening bank letters rising. It also leaves the housing market in uncertainty — no one knows how many trial modifications will ultimately be rejected, with the likely outcome that the owners will lose their home and the house will be thrust onto the already-saturated housing market. The most recent data on the administration's HAMP modifications show that only about one-third of 2 million modifications have been made permanent. Millions of other homeowners are engaged in proprietary bank modifications.

    Even as the bills and foreclosure notices piled up last year, Nielsen's office told the Schmalzes to keep making their trial modification payment in order to demonstrate their ability to satisfy the lowered obligation. Finally, in April, the Schmalzes got the good news they'd been dreaming about.

    "Essentially, we got a refinance," Ron Schmalz said. "But they could have done this at Day 1 for us. We're not upset with the result; we're happy with it. We're just upset with the process. We just don't understand why it took this long."

    That's the question nearly every observer of the housing market is asking about a potential recovery.

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  • 24
    Jun
    2011
    1:31pm, EDT

    Driving in a bad storm? You might be doing the wrong thing

    You're blissfully hurtling down a desolate stretch of interstate at 70 mph, singing along with your iPod. The scenery is spectacular, the sun is shining, and things couldn't be better. Then you round a bend and suddenly the sky turns midnight black. There's lightning and a thunderclap that feels like it comes from your back seat.  There's a trickle of rain, followed seconds later by a downpour, then hail. The highway isn't desolate any more, as you've caught up to all other drivers who are crawling along at 10 mph because they can barely see 50 feet. What do you do?

    Many U.S. adults do exactly the wrong thing, contradicting the advice given by the National Weather Service and potentially putting themselves and their families in serious danger.

    The American road trip is as much a part of our nation's fabric as apple pie and baseball. Nothing restores the soul like remembering how big and beautiful this land is. It's important to remember that road trips are more journey than vacation, however. Things can and do go wrong.  Bad weather is at the top of that list.  You simply can't drive coast to coast without hitting a few bad storms. 

    Bob Sullivan / msnbc.com

    A rainbow graces Detroit's skyline on Wednesday.

     


    I love summer rain during a road trip.  It smells incredible, and it can lower oppressive outside temperatures drastically.  There's often a rainbow to enjoy when the storm is over.  And the best part: If you don't like the weather, keep driving. No doubt, things are different when you clear the next mountain range, or when you out-drive the storm.

    I'm talking about tame rain, however. Plenty of east and west coasters might not be familiar with the more intense storms that regularly pelt the middle of the country, like Arizona's afternoon monsoons. And there's no denying that driving through a tornado warning is harrowing experience.  So here's some basic road trip advice on handling extreme weather.

    Most drivers will only have to deal with some heavy rain during a typical trip, and the advice there is standard: move over, slow down, don't have bald tires and leave plenty of extra following distance. Each day this week, I've driven through at least two bad downpours, but neither one lasted more than 30 minutes. That's pretty typical.

    Dealing with more extreme weather is really an information problem: Should I leave the hotel now or wait two hours until the storm has passed?  That story is mixed now: On one hand, there are all manner of Internet enabled gadgets to help us predict the weather. On the other hand, it's harder to hear emergency warnings about extreme weather because many iPod-loving drivers don't listen to their radios any more. That's why, if you're driving and there's any sign of ominous clouds, it's best to turn off your tunes, find a local station and listen for weather alerts.

    Of course, radio station consolidation and the proliferation of national networks like ESPN Radio has made finding local stations harder in the middle of the country. Those stations will still play emergency messages, but you won't get earlier warnings from local DJs who know the weather better. That’s why it's still worth spinning around the dial -- sampling local radio is one of the treats of cross-country trips, anyway.

    It's not always clear what to do with emergency warnings, however.  Recently I was caught in a very violent thunderstorm storm cell, with cloud-to-ground lightning all around me, and the emergency broadcast system warning me to “stay inside.”  Adding to my dilemma, I was stuck in traffic on a highway and had nowhere to go. What would you do?

    You're still much more likely to be in a car accident than to be hit by lightning, even in this situation, so handling the car safely is your first concern.  If you can pull off the road safely and wait out the worst of the rain, that's probably a good idea.  Flooding is likely your second-biggest worry, so don't park in a depressed area, such as under an overpass. 

    What about that lightning? You've probably heard at some point that the rubber tires on your car can save you from electrocution by a direct lightning strike because they act as a ground.  That's not true.  The car itself however can act as what's called a "Faraday Cage," dispersing the electric charge around the metal shell of the car. 

    That's great, unless you happen to be touching metal in the car when the strike hits, such as a steering wheel or stick shift.  There are reports of police officers getting bad mouth burns because their squad car was struck while they were talking on their radios.

    So what's the best advice for sitting out a lightning storm in your car? Stay in the vehicle, turn the ignition off and keep your hands in your lap, says the National Lightning Safety Institute. Don't lean on the car door, and never step out of the car.

    Far less likely -- but certainly possible -- is an encounter with a tornado. Again, your best defense is information: Listen to local radio for specific areas that are under tornado watches or warnings. 

    Because tornados can pack an almost unimagineably violent force -- they can lift and throw entire buildings -- there are no sure-fire safety tips for dealing with them. There also is a difference of opinion about the best course of action if you encounter a tornado  while driving. 

    All agree that abandoning the car to enter a strong shelter is your best bet. On the open road, however, that might not be possible.  Professional storm chasers do outrun tornados in their vehicles -- their trick is to drive away from the storm at a right angle, to the south if possible (the north side of the storm will be pelted with hail.)  An emergency memory trick for this maneuver is to directly face the storm, and then turn 90 degrees to the right.

    Tornados can travel 60 mph or faster, however, and everyday drivers may put themselves at greater danger by attempting to outrun a storm. The controversy surrounds the two bad options that remain: staying in the car with the seat belt on and bend below the windshield, or abandoning the car and laying down in a ditch. 

    Both ideas have merit. The car will provide protection from objects thrown violently by the storm. Even if the car is thrown by the twister, it will provide some impact protection. On the other hand, a driver who finds a deep ditch well below ground level should be safer from violent winds as the storm passes. Ideally, it should be far from the abandoned car, which could be hazardous if it's thrown. Also, beware of possible flash flooding in the ditch. 

    The National Weather Service and the American Red Cross recently advised drivers that each option has its benefits, and drivers in a crisis should consider both:

    "If flying debris occurs while you are driving, pull over and park. Now you have the following options as a last resort," they said in a joint statement.(PDF) "Stay in the car with the seat belt on. Put your head down below the windows, covering with your hands and a blanket if possible. If you can safely get noticeably lower than the level of the roadway, exit your car and lie in that area, covering your head with your hands."

    For more tips on driving in tornados, click here and here.

    Whatever the weather, staying calm is the key to making good choices, and information can really help. I'm a big fan of the Weather.com iPhone (or Android) app, which gives you hour-by-hour weather predictions and -- more important -- up-to-the-minute radar maps showing precipitation amounts.  They make it easy to see if the storm you're in is a five-minute interruption by Mother Nature or a two-hour beast that you'd be better riding out in a hotel room. I find it indispensible. 

    Most of all, don't rush: build in extra time for your trip. That way, you'll have the option to make the safer, more conservative choice if you need to, without worrying about missing grandma's turkey dinner.

    What are your tips for bad-weather road trip driving?

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  • 23
    Jun
    2011
    10:55am, EDT

    Consumer protection dead, but hope remains, says 93-year-old advocate

    Bob Sullivan / msnbc.com

    Esther Shapiro, with part of her beloved Shakespeare collection in the background. Ask her about consumer protection and she is likely to respond with some blank verse.

    IN A BEAUTIFUL GARDEN, DETROIT -- To call Esther Shapiro the Ralph Nader of Michigan is to compliment Ralph Nader. 

    The arc of her life runs perfectly parallel to the birth, life, and near death of America's consumer movement -- in fact, you might call her its grandmother.  Now 93, Shapiro still lists herself as a "consumer consultant" in the phone book. But she frets about the state of the economy, the fate of her beloved Detroit, but most of all, about the lack of effective consumer protections across America.

    From 1974 to1988 she ran Detroit's forward thinking Office of Consumer Protection, perhaps the most active agency of its type in the country. She had real power; she could revoke a firm's business license if it misbehaved, she could bar it from advertising in Detroit newspapers. She had a regular radio segment and newspaper column. She filed lawsuits, got refunds for jilted consumers, and -- with the help of her police commissioner husband -- put bad guys in jail. By the time she was forced to retire at age 80, she had vast files on every possible consumer scam -- and a heart full of stories from grateful consumers who she'd helped.

    Early in her career, she helped stop a widespread scam run by criminals who took deposits from people desperate for leads on cheap apartments, then never furnished the leads. She was able to get refunds for some victims, and told me about one woman who showed up to collect her money.

    "She just kind of grabbed it, like you would grab food if you were hungry. Then she said to me, 'Do you know what it's like to be a welfare mother and be cheated out of your last dollar?’ And walked away. That really stuck with me," Shapiro said.


    Stories like those fueled her long hours, her endless lectures to community groups, and they still fuel her when frustrated consumers track her down through the phone book.

    They call because no one really does her kind of work anyone. After Shapiro left, the consumer agency died a slow death. Her files were thrown away, she said, her eyes tearing up.

    "For a while if you called the number, there was just a message that said this inbox is full," Shapiro said. "There's no place for people to call now."

    Shapiro has called Detroit home for more than 50 years, and has lived just a few blocks outside the hardscrabble downtown area for the past 40.  A Chicago native, she met her husband in New York and lived in Vancouver, Wash., during World War II, but fell in love with the motor city after her husband landed a job there as a union organizer in the 1950s. She has raised a family tree of do-gooders -- a grand-daughter in Seattle who fights for immigrant construction workers' rights, a daughter who's active in the Women in Black peace movement.  In fact, her secret shame in the Shapiro family is that "I'm the only one who's never been arrested. They tease me about it all the time."

    Esther Shapiro, the Ralph Nader of Michigan, talks about the decline in consumer protection, and about the things that make her work worthwhile.

    Talking with Shapiro, you get the idea that she still has plenty of time for that. I met her via email five years ago when writing about the death of price tags on consumer products – she’s still the nation’s most persuasive apologist for price tags and product labeling as a source of consumer protection, and I have interviewed her several times since.  But we hadn’t met face to face until I made the pilgrimage to Detroit on Wednesday.

    She's a bit unsteady on her feet these days, but still manages to scramble out to her perfect, tiny garden on request and has no trouble reciting entire scenes from Shakespeare plays during a pesky reporter's camera sound check. 

    But she turns gravely serious when talking about the people she used to help.

    "I'm very worried about the future," she said. "In essence there is no consumer protection today. There are still laws on the books, but the enforcement isn't there. Nobody has the lawyers to do it themselves, the local organizations that are supposed to enforce don't do it. ... There are things on the books that would solve a lot of these consumer problems. But there is no one to enforce them or teach them."

    America's consumer protection movement reached its heyday in the early 1970s, when Ralph Nader was one of America's most recognized figures.  Almost all real help is local, however -- anyone who's every complained to a federal banking regulator can attest to that -- so various states and cities created their own activist consumer agencies at the time. Detroit's agency, and Shapiro, were a model for the country. That's why the destruction of her files -- and the shuttering of her agency -- hurts so much.

    "I thought that was going to be my legacy," she said. 

    But even though her movement has run out of steam for now, Shapiro has a rich personal legacy.

    "I run into people all the time who say things like, 'I remember you, I still have that article you wrote on how to shop for shampoo,' " she said.  “People tell me they always look at labels when they buy things because they heard me speak. … It gives my life meaning."

    Shapiro doesn't tour the speaking circuit like she used to, but she still makes occasional appearances -- in fact, she was on Detroit's NBC affiliate on Wednesday morning.  And she still has plenty of sage advice for consumers, who she says are still falling for essentially the same scams they did 50 years ago.

    "We don't learn our lesson because we don't want to," she said. "We seize upon the immediate. ...Someone who sounds knowledgeable and offers to solve your problems, you're going to take it and not ask questions because you don't want the answers, you just want the solution."

    But the persistence of the current recession, which by now has squeezed many people out of their life savings and left them with no margin for error, plays a big role in the vulnerability of consumers, she said. She thinks consumers are worse off today than they were in 1974, when her agency opened.

    "There's a sense of desperation. We're vulnerable, we're bleeding and there's nothing to stop the bleeding," she said.  "I think things are worse because there's less hope. Nobody really believes that employment is going to pick up because we don't see it. No one really believes the stock market is going to recover. I think no one really believes that we'll ever have peace because we're always in a war.  It's this desperation that tears apart whatever we might have built up in defense."

    Shapiro's dark words will sound familiar to anyone who's spent time listening to a worried grandmother ("What kind of world am I leaving those kids?" she said several times.)  But her sparking eyes and quick smile -- not to mention her sharp wit and persuasive abilities -- belie her stated pessimism. Shapiro has a deep, abiding faith in the rule of law, and in fairness. And it's clear that deep inside, she thinks fairness will come back into fashion again some day.

    "I learned in a high school science class that nothing is every totally destroyed or disappears," she said. "You light a fire to destroy something, but then you have gases, you have ash that stay with the planet. Something is always there. It's never totally lost, and that's what gives me hope. We offer education, we hope someone will hear it, we know it's not going to be lost. That's my faith."

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  • 22
    Jun
    2011
    12:17pm, EDT

    An economic shock brings the kids home

    By Bob Sullivan, Columnist, NBC News

    AT SOUTH STREET COFFEE SHOP, WILMINGTON, OHIO -- When you visit a town of 12,000 people that recently lost 10,000 jobs, you'd expect to find a lot of things:  boarded up homes, abandoned gas stations and empty storefronts to name a few.

    What I found in Wilmington, Ohio, was something I didn't expect: opportunity. 

    Bob Sullivan / msnbc.com

    Mark Rembert is among the youngest Chamber of Commerce presidents in the nation. He says the city's economic misfortune has created opportunity, too.

    Small town America has struggled with brain drain since the invention of the automobile. But as it attempts to rise from the ashes of an economic nightmare, this 200-year-old town may have discovered a revolutionary way to attract and keep its young people.

    For decades, this small town in southwest Ohio served as crossroads for travelers shuttling between Kentucky and Detroit.  It now sits at a crossroads of the American economy. Every day since the massive DHL package facility that employed the majority of Wilmington's residents closed in 2009, the town has had to ask itself: Will this disaster destroy us, or be our rebirth?

    Wilmington has become America's small town in the past three years, a media darling because the recession hit here with almost unmatched brutality.  Jay Leno has been here, and so have "60 Minutes" (twice), Rachel Ray and Glen Beck. It is the lead anecdote in a story about America's disappearing small towns.

    There's good reason for that. The discussions taking place on Main Street or in the coffee house may be about local issues, but in the voices of Wilmington's faithful, you hear America talking. 


    "Guess I got to be a young man again and work graveyard shifts," said one man sitting at a table without coffee.  He's not young. 

    But when you talk to people of Wilmington about their downtrodden state, about their grave misfortune -- and if you are rude enough to ask where the burned out buildings are -- people laugh.

    "You're not going to find people crying on the sidewalks here," said Molly Dullea, who operates the General Denver Hotel in downtown Wilmington.  Her brisk pilot crash pad business dried up when DHL ceased operations, but she replaced that with rollicking open mic nights and "draft" beer parties. "We are all taking care of each other here."

    Even international media has descended on this place, sometimes labeling it a "ghost town."  

    Don't tell that to Roger Walker, who just opened South Street Coffee Shop down the block from the General Denver.  He's living the American dream, leaving his job in Vandalia, Ill., to take the risk of a lifetime.

    Bob Sullivan / msnbc.com

    Roger Walker just opened a coffee shop in the heart of Wilmington.

    "The time was right," Walker said. So was the rent -- about one-tenth the price of similar space in a big city.  "We came here and just fell in love with this town." 

    For Mark Rembert, returning to Wilmington was more like reconnecting with an old high school girlfriend after college.  Rembert, who graduated from Wilmington High School in 2003,  was working for an international PR firm in Philadelphia when the DHL disaster struck. After some soul searching, he moved home to try to help.

    Within a few months he was running a nonprofit economic development agency and, soon after, became president of the Chamber of Commerce. National TV appearances followed, as did speaches at major conferences, including TED, and awards from places like MTV. 

    "If I stayed in Philadelphia I never would have had the opportunities I've had here. It would have taken years for me to get this far," said Rembert, 26.  "And it's all became of Wilmington, and I couldn't be more grateful."

    Other young people have picked up on the opportunities, too, helped by a program called Clinton Community Fellows -- Wilmington is in Clinton County.  Students or recent graduates are matched with local businesses where they offer free consulting -- the students receive a stipend from a nonprofit agency at the end of the summer. These are no token work-study programs. Local shop owners are eager to hear any suggestions for saving their business, and the students bring with them fresh ideas like social media marketing.

    After Wilmington, Ohio, suffered the devastating loss of its principal employer, DHL, unemployment soared to 25 percent. With small business owners scrambling to survive, they'll take good ideas from anywhere. Here, college students paid by a nonprofit group to work as consultants for local businesses talk about the surprising opportunities the economic turmoil has created for them.              

    "I've had responsibilities here I never would have gotten at in internship in Chicago or in New York," said Kelsey Swindler, who's working at a small publishing company. Until recently, she was known as the florist's daughter. "People want to try new things, they need to try new things. ... Who knew my Facebook knowledge would be so valuable."

    Dessie Buchanan used to be known simple as "Dr. Buchanan's daughter" around town.  Now, she heads one of Wilmington's most important ventures, as executive director of the farmer's market program.  In this town, "buy local" isn't just a slogan, it's a lifeline.  Buchanan persuaded farmers to move their market into the center of town and expand it to two days per week, and worked with the county so that social service food aid money could be used to pay for fruits and vegetables sold at the market.

    "At first they didn't believe in my ideas, but each time something goes well, they listen a little bit more," she said.

    Even Dullea swears that possibilities created by the closing of the DHL plant are a godsend -- the farmers market now takes place adjacent to her hotel, right before open mic night, which sometimes attracts 100 people – up from a dozen or so before the crisis. 

    "We are better off now," she said, without a hint of doubt in her voice.

    That doesn't mean there isn't a whole lot of money missing from this town. The economic swing it has endured is hard to put in perspective. In 2004, German shipping firm DHL purchased what was then Airborne Express as an entree to the U.S. shipping market.  Wilmington's massive airfield, built for U.S. military jets during the cold war, was the largest private airport in the nation, served as an alternate landing site for the space shuttle and was the perfect place to expand into the dot-com fueled shipping business.  At one point, the city essentially had a negative unemployment rate, and DHL bused in part-time workers from counties all over Ohio to help sort packages.

    In 2008, it all came crashing down. Mayor David Raizk said one in three households lost income when DHL left. The number of people receiving food assistance from county social services jumped from about 1,500 five years ago to 8,000 today, said Buchanan.

    It's Kevin Carver's job to figure out how to fill up the 1,900-acre abandoned plant.  There's no putting a lipstick on that pig. It's now a spooky graveyard of hundreds of DHL airplanes with engines removed, awaiting recycling.  The airpark still operates, with a small airplane repair business and pilot training program. It lands six or seven jets per week -- down from 150 per day.  But every week, a steady stream of investors come to kick the tires on the facility and its hundreds of massive loading docks.  Some of its buildings are nearly brand new.

    Bob Sullivan / msnbc.com

    Finding someone to fill the enormous vacant DHL airport facility is Kevin Carver’s problem. He heads the Clinton County Port Authority which now owns the site.

    Carter, executive director of the Clinton County Port Authority, has one big thing going for him: before DHL left, it gave the airport to the city, which now controls its future.  The town is currently studying the best route to redevelopment.

    Mayor Raizk was raised at the town's Quaker-founded college, where his father was a teacher and athletics coach. The school's gym even bears his father's name.  He's had to channel his dad's inspirational abilities many times during the current crisis.

    "When you're at a small school, you may not have the best talent, so when you're losing by 20 points you have to really pull together and play for each other," he said.  His job is far from over. Unemployment has stabilized, and local businesses say they've gotten used to the new normal ... getting by with less.  But if the crisis were a 24-hour day, with DHL's withdrawal acting as midnight, Raizk says it'd be about 6 a.m.

    "The sun is coming up," he said. "But there's a lot of work to do."

    Like every small town I've ever visited, Wilmington has many outsized claims to fame. The city of Denver was named after former Wilmington resident General James William Denver, who also lent his name to the hotel. The town's old-style Murphy Theater opened in 1918, built by former Chicago Cubs owner Charles Murphy. They say he paid for it with World Series winnings from 1908 -- the last time the Cubs won (perhaps that's why there is not a newer theater. Some residents claim the banana split was invented here, too.

    But if Wilmington can figure out how to survive and thrive in its economic disaster, and hang on to its youth in the process, it will have given America something far more remarkable than a new dessert.

    "Can we take this crisis and make this community relevant? We want to be the community that inspires people across the country," said Rembert. "If we turn this around, we will be."

    Follow the Red Tape Tour on Facebook.

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  • 21
    Jun
    2011
    8:37am, EDT

    In Pittsburgh, drastic bus service cuts strand commuters

    By Bob Sullivan, Columnist, NBC News

    AT A BUS STOP, IN PITTSBURGH -- Like nearly every other city in America, after three hard recessionary years, the fiscal gyrations of robbing Peter to pay Paul have pretty much been exhausted in Pittsburgh. 

    Bob Sullivan / msnbc.com

    Public transpoortation was one of the reasons that Jon Robison, who suffers from multiple sclerosis, moved to his east Pittsburgh neighborhood five years ago. But severe bus service cuts mean he's now often stranded as crowded buses pass him by.

    Hard decisions about government services are now unavoidable, and the city's Port Authority transportation agency made one the hardest in March -- cutting 29 bus routes and reducing service on 37 more.  Far more severe cutbacks that would have slashed bus service by one-third were stalled by a one-time time cash windfall, but the clock is ticking on those Draconian budget measures designed to plug a $50 million budget gap. Steeper bus cuts are set for 2012, unless millions in new revenue magically appears.

    For Jon Robison, the numbers are much more tangible.

    "Some days, one, two, even three buses pass me by because they are too full," Robison said.  "So even if you still have bus service, the buses are overcrowded."

    Robison, who suffers from multiple sclerosis, relies on public transit to get around. Bus access is one of the reasons the 67-year-old moved with his wife to the east Pittsburgh neighborhood of Oakland five years ago.  He's even president of the transit service's public advisory board. But that doesn't mean he’s exempt from being left waiting in his wheelchair on the sidewalk when a bus flies by that doesn’t have room for him.

    "I keep saying if the Legislature won't fund buses, at least it could legalize hitchhiking," he said. 

    Jon Robison tells Bob Sullivan about the personal consequences of steep budget cutbacks in bus service.

     


    In a sense, Robison is lucky – none of his bus routes have been eliminated.  Some Pittsburghers in farther out neighborhoods have lost service entirely. Late-night service was hit particularly hard, and it took swing-shift workers with it.

    One downtown office building security guard I interviewed said he works from 4 p.m. to midnight, and the service cuts eliminated the 12:20 bus -- the last bus.

    “I don’t know why they didn’t cut a bus in the middle of the day that no one would notice,” he said. “Losing that last bus really hurt.”  He said he knows some employees who’ve had to quit.  For him, taking a taxi home at night adds $200 to his monthly transit costs, a significant bite out of his salary. He couldn't afford to lose the job, however, which is why he requested anonymity.

    Driving isn't such a great option either. Pittsburghers just trying to get to work feel like they're being hit on all sides by city and county governments that seem to have an insatiable appetite for new fees.  Prices at city-operated parking garages have doubled in recent years.  Sidewalk meter rates jumped 100 percent, too-- a quarter now only gets you seven minutes. Meanwhile, stickers hastily placed on parking signs all over town antagonize drivers further, announcing meter enforcement now runs until 10 p.m., four hours earlier than the old 6 p.m. cutoff. And parking ticket enforcement agents are everywhere.

    "I know that it hurt many of the people I work with currently ... because now we have no option but to pay to park in a parking garage," said Bernard Rafferty, who works at a bank. "And I am sure that there has been a hit to evening business downtown with enforcement until 10."

    Frustration over this big squeeze reaches a boiling point for some residents, however, when discussion turns to construction of the new passenger rail transit tunnel. The $500 million project will connect the city's North Shore to downtown, and help move fans to sports stadiums and casinos north of the Allegheny River.  The federal government is picking up most of the tab; still, commuters are frustrated that millions are being spent on what critics have labeled a "tunnel to nowhere," while a fraction of that spending could have spared the city's bus system.

    Throwing sand in the face of frustrated bus riders was Sen. John McCain's ranking of the Pittsburgh transit tunnel as No. 3 on a list of projects partially funded by the 2009 fiscal stimulus bill passed by congress that are wasting taxpayer money.  

    But Brian O'Neill, revered Pittsburgh Post-Gazette columnist and author of The Paris of Appalachia, takes a much longer view of the project.

    "This is a common criticism, but we're talking about two different pots of money. The federal government paid 95 percent of the construction costs of this project, and if it didn’t go here it would have gone someplace else,” he said. “And if you ever wanted light rail to extend further north you've got to get it across river somehow. ... But this came at bad time because it's a huge amount of money, and a smaller amount would have saved the buses."

    Pennsylvania had another idea to save the buses -- it was going to turn Interstate 80 into a toll road, but the U.S. Department of Transportation rejected that idea in April 2010. That leaves the system running with a yawning budget gap, little hope in sight and few ideas for a new dedicated funding source.

    How did things fall so far, so fast, in Pittsburgh? The refrain should sound familiar to most cities.  The Port Authority which runs the system now spends just as much -- $32 million a year -- on health care for retired employees as for current employees.  Healthcare and pension costs have risen at an annual rate of 22 percent in the past 10 years. The agency describes these costs as a "death spiral."

    "Nothing ever gets done until there's a crisis," O'Neill said. "So here's the crisis."

    These unsustainable increases aren't the systems' only problem; but failure to get a handle on them will undoubtedly lead to more service cuts -- and more crowded buses leaving Robison on the sidewalk in his wheelchair, late for his next appointment in town.

    “It’s a drag but it’s a natural consequence of a shortage of funding,” he said. “There just isn’t enough money to go around.”

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  • 20
    Jun
    2011
    11:02am, EDT

    On coast-to-coast trip, we'll follow the fight for the future of small-town America

    By Bob Sullivan, Columnist, NBC News

    In Washington D.C., with a full tank of gas -- Mark Rembert isn't just fighting for Wilmington, Ohio. He says he's fighting for the survival -- in fact, the very soul -- of small town America. 

    Rembert, 26, graduated from Wilmington High School in 2003 and moved away to find opportunity. But five years later, a different kind of opportunity emerged back home.   

    If you look at a recession scorecard, you'll see that Wilmington is the hardest-hit town in Clinton County, which is the hardest hit county in Ohio, which is among the hardest-hit states in the union. The basics are simple – Wilmington, a quaint place in southwestern Ohio not far from the Kentucky border,  has 12,000 residents and, in 2008, delivery firm DHL closed its 10,000-job operation in the town's air park. But Rembert, who had opportunities in places like New York or Philadelphia, decided to go home to try to save his small town. He now heads the county Chamber of Commerce and is part of a development fund trying to attract new businesses to Wilmington.

    Rembert’s battle is a fight you'll find all across America, as the nation's economic malaise settles into to its third year and the dreaded double-dip recession looms. At this crucial juncture in the U.S. battle to get out of the quicksand laid by the burst of the housing bubble in 2008, msnbc.com's Red Tape Chronicles is taking a second annual road trip across the country. We'll visit small, medium, and large towns, and listen to people tell their stories of trying to get ahead -- or stay afloat -- while the dual pressures of dogged unemployment and government spending cutbacks continue to turn the screws.


     Extreme times bring out the best -- and worst -- of human nature. We'll look for both. There will be stories of inspiration, like Rembert's never-say-die spirit. There will be tales of shame and inhumanity, as we'll find in Chicago, when we talk to families who have spent more than three years trying to beat back the red tape involved in trying to save their homes from foreclosure.  We'll see the reality of budget cuts in Pittsburgh, where mass transit cutbacks and parking meter price hikes are suffocating commuters just trying to make it to work on time. We'll meet a 94-years-young woman who still acts as a consumer advocate for the people of Michigan, and a 22-year-old in Omaha who's among the best in the world at warning kids about the dangers of identity theft.

    At each stop during our two-week journey from Washington, D.C., to Seattle, we'll talk to people who have taken on their own version of Rembert’s cause.

    "When the crisis hit, it was very personal," Rembert told me. "At that moment, the very future of our community was called into question. And we had to ask the hard question: Why do we care about the future of this place?"

    In a way, Wilmington is lucky.  It's calamitous economic fate brought the town outsized notoriety. The news magazine "60 Minutes" profiled it two years ago, and NBC "Tonight Show" comedian Jay Leno came to give a free concert and community pep talk.  Since then, a steady stream of mass media has parachuted in, looking for Wilmington to serve a bit as a weather vane for the rest of small town  America.

    There are success stories -- a new downtown coffee shop just opened on South Street last month, and we'll meet the man who took the risk of opening a new business in a town rocked by job loss. 

    But it's unfair to place the bellwether burden on Wilmington.  Even Rembert, whose infectious enthusiasm has managed to draw the attention of Fox host Glen Beck, admits he doesn't have many answers yet.

    "Other towns call us looking for a formula they can apply to their town. We don't have one," he said.

    But he does have plenty of ideas; ideas about self-sustaining communities that produce and consume what they need; ideas about the importance of having sense of place, and why Americans must return to understanding how "hometown" and "identity" are inextricably linked.  He doesn't want every 21-year-old in every small town in America to face the choice of leaving home for opportunity in the city or staying home and facing economic suicide. 

    And besides, most people are stuck where they are now, anyway. With one-third of American homeowners "under water," the 1990s concept of extreme labor portability is basically dead.  People can't move for job opportunities now because they can't sell their homes.  In a new, forced version of community stability, Americans have to figure out how to be happy where they are.  That might be a surprising stroke of good luck, Rembert says.

    "There is a renewed sense of the fight for place in America," he said. "Small towns are a great place to start because, while they might be poor in resources, they are rich in social capital."

    During the next two weeks, we hope to tap into some of that social capital, and to take the temperature of the America that lives between the coasts.  I hope you'll come along for the ride. 

    Follow the Red Tape Tour on Facebook.

    For more frequent updates, follow the Red Tape Tour on Twitter.

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