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Obamacare Architect: Expect Steep Increase (+30%) in Health Care Premiums

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Medical insurance premiums in the United States are on the rise, the chief architect of President Barack Obama’s health care overhaul has told The Daily Caller.

Massachusetts Institute of Technology economist Jonathan Gruber, who also devised former Massachusetts Gov. Mitt Romney’s statewide health care reforms, is backtracking on an analysis he provided the White House in support of the 2010 Affordable Care Act, informing officials in three states that the price of insurance premiums will dramatically increase under the reforms.

In an email to The Daily Caller, Gruber framed this new reality in terms of the same human self-interest that some conservatives had warned in 2010 would ultimately rule the marketplace.

“The market was so discriminatory,” Gruber told TheDC, “that only the healthy bought non-group insurance and the sick just stayed [uninsured].”

“It is true that even after tax credits some individuals are ‘losers,’” he conceded, “in that they pay more than before [Obama’s] reform.”

Gruber, whom the Obama administration hired to provide an independent analysis of reforms, was widely criticized for failing to disclose the conflict of interest created by $392,600 in no-bid contracts the Department of Health and Human Services awarded him while he was advising the president’s policy advisers.

Gruber also received $566,310 during 2008 and 2009 from the National Institutes of Health to conduct a study on the Medicare Part D plan.

In 2011, officials in Wisconsin, Minnesota and Colorado ordered reports from Gruber which offer a drastically different portrait in 2012 from the one Obama painted just 17 months ago.

“As a consequence of the Affordable Care Act,” the president said in September 2010, ”premiums are going to be lower than they would be otherwise; health care costs overall are going to be lower than they would be otherwise.”

Gruber’s new reports are in direct contrast Obama’s words — and with claims Gruber himself made in 2009. Then, the economics professor said that based on figures provided by the independent Congressional Budget Office, “[health care] reform will significantly reduce, not increase, non-group premiums.”

During his presentation to Wisconsin officials in August 2011, Gruber revealed that while about 57 percent of those who get their insurance through the individual market will benefit in one way or another from the law’s subsides, an even larger majority of the individual market will end up paying drastically more overall.

“After the application of tax subsidies, 59 percent of the individual market will experience an average premium increase of 31 percent,” Gruber reported.

Read the rest here.

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Whitney Houston Dead at 48

Houston won two Emmy Awards, six Grammy Awards, 30 Billboard Music Awards, 22 American Music Awards during her record-breaking career. Her album “Whitney” was the first female album to ever debut at #1 on the Billboard Charts. She has sold 200 albums world wide.

Houston holds an Honorary Doctorate in Humanities from Grambling State University in Louisiana.

Houston had one child, Bobbi Kristina, with husband Bobby Brown. Houston and Brown were married from 1992-2007.

Story developing

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Fed Plays Wall Street Favorites in Secret Bond Deals: Mortgages

The Federal Reserve secretly selected a handful of banks to bid for debt securities acquired by taxpayers in the U.S. bailout of American International Group Inc., and the rest of Wall Street is wondering what happened to the transparency the central bank said it was committed to upholding.

“The exclusivity by which the process has shut out smaller dealers is a little un-American,” said David Castillo, head of sales and trading at broker Further Lane Securities LP in San Francisco, who said he would have liked to participate. “It seems odd that if you want to get the best possible price that it wouldn’t be open to anyone who wants to put in the most competitive bid.”

After inviting more than 40 broker-dealers to take part in a series of auctions last year, the Federal Reserve Bank of New York asked only Goldman Sachs Group Inc. (GS), Credit Suisse Group AG (CSGN) and Barclays Plc (BARC) to bid on the full $13.2 billion of bonds offered in two sales over the past month. The central bank switched to a less open process after traders blamed the regular, more public disposals for damaging prices in 2011. This week, Goldman Sachs bought $6.2 billion of bonds in an auction.

Read the rest here.

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LOL: What Does Your Fed Valentine Say?

Some favorites from the post:

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The Galileo of Global Warming

By Robert Tracinski

I have written before about how the left loves to invoke the example of Galileo in order to present themselves as the great defenders of science against all of those knuckle-dragging religious bigots who don’t believe in global warming. But these same people don’t understand science very well themselves (remember amateur neurologist Janeane Garofalo lecturing us about the “limbic brain”?), so they end up using Galileo, a man who defied the “consensus” of his day, as a propaganda talking point to enforce the consensus of today.

It occurred to me a while back that there is something worse about this invocation of Galileo, because there is a modern-day equivalent to Galileo, specifically on the issue of global warming—and he’s on the other side. In this more civilized age, he is thankfully not threatened with torture or any kind of persecution. But he is a pioneer of new and important scientific truths who is being ignored and vilified because his discoveries run counter to the quasi-religious dogma of our day.

That man is the Danish physicist Henrik Svensmark, who seems to have discovered the most important factor that actually regulates Earth’s climate, and who is quietly in the process of proving it.

I linked last year to Svensmark’s latest big breakthrough, but I didn’t get a chance to discuss it much, so I want to give a little more detail now, then show one of the recent consequences of Svensmark’s achievement.

Let me briefly sum up Svensmark’s theory. The temperature of the Earth, he argues, is regulated by the intensity of solar radiation, but not in the obvious way. It is not that the increase is solar radiation heats the Earth directly. (It does, of course, but not to a sufficient degree to explain climate variations.) Rather, an increase in solar radiation extends the Sun’s magnetic field, which shields Earth from cosmic rays (highly energetic, fast-moving charged particles that come from deep space). How does this affect the climate? Here is the crux of Svensmark’s argument. When cosmic rays hit the atmosphere, he argues, their impact on air molecules creates nucleation sites for the condensation of water vapor, leading to an increase in cloud-formation. Since clouds tend to bounce solar radiation back into space, increased cloud cover cools the Earth, while decreased cloud cover makes the Earth warmer.

So if Svensmark is right, lower solar radiation means more cosmic rays, more clouds, and a cooler Earth, while higher solar radiation means fewer cosmic rays, fewer clouds, and a warmer Earth.

Those who have followed the global warming controversy over the years may recall that cloud-formation is one of the major gaps in the computerized climate “models” used by the consensus scientists to predict global warming. They have never had a theory to explain how and why clouds form or to account accurately for their effect on the climate. Svensmark has smashed through this glaring gap in their theory.

Like I said, Svensmark hasn’t just put this theory out there. He has been working to prove it. He has done some studies that attempted to track measurements of cosmic ray flux against surface temperature and cloud cover, with some success. But his big breakthrough last year was a long-awaited experiment at Switzerland’s CERN particle accelerator that demonstrated the most controversial part of Svensmark’s theory.

It is widely accepted that the Sun’s magnetic field helps shield Earth from cosmic rays, and it is also widely accepted that increased cloud cover cools the Earth (though expect this to suddenly come into question as Svensmarks’ theory gains ground). What Svensmark needed to demonstrate was that cosmic rays form nucleation sites that seed clouds.

Hence the aptly named CLOUD experiment performed at CERN last year, with the results published last August. The experiment was actually more than a decade in the making, but as Lawrence Solomon explains, it was help back for years by the scientific bureaucracy because of its potentially unwelcome results.

The results are indeed unwelcome, at least for the advocates of the global warming consensus. Anthony Watts explained the experiment at his blog, Watts Up With That? The CLOUD experiment used CERN’s particle accelerator to send a beam of artificially generated charged particles—simulated cosmic rays—into a gas-filled chamber and then measured the formation of aerosols, the kind of compounds that can serve as cloud nucleation sites. It found a direct and very significant relationship.

This is not a total demonstration of Svensmark’s theory. The Nature paper on the CLOUD experiment notes that “the fraction of these freshly nucleated particles that grow to sufficient sizes to seed cloud droplets, as well as the role of organic vapors in the nucleation and growth processes, remain open questions experimentally.” But last year’s result is a clear demonstration of a crucial step in Svensmark’s theory. It’s certainly a lot farther than the warmthers have ever gotten in demonstrating the physical basis for their theory.

(“Warmther,” by the way, is a coin termed—if I recall correctly—by occasional TIA Daily contributor Tom Minchin. It’s intended to put advocates of the global warming hysteria in the same category as the “truthers” and the “birthers.”)

What impact did the CLOUD experiment have? Well, the global warming establishment set out to make sure it would have no impact. Like I said, this is a more civilized age, so Svensmark and his colleagues will not be subject to an Inquisition. They will just be ignored, for as long as the entrenched establishment can manage to do so.

This campaign began immediately. James Delingpole’s overview of the reaction to CLOUD quotes the statement given to the press by Rolf-Dieter Heuer, Director General of CERN.

I have asked the colleagues to present the results clearly, but not to interpret them. That would go immediately into the highly political arena of the climate change debate. One has to make clear that cosmic radiation is only one of many parameters.

I don’t know what I find more amusing about this quote: the fact that he is directing scientists not to draw conclusions from data, or the fact that he then proceeds to assert his own interpretation of the data, that “cosmic radiation is only one of many parameters.” Well, no, if Svensmark’s theory is right, it is not “only one of many,” it is the central factor, far more important than human emissions of carbon dioxide. But thanks for telling us all ahead of time what we’re supposed to think.

Heuer’s statement is an example of an old warmther practice of releasing scientific results to the media only on the condition that upper-level science bureaucrats, the ones who want to increase or preserve the funding they get from government, provide the politically appropriate “spin” to the press. In this case, the appropriate spin is, “move along, nothing to see here.”

Read the rest here.

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NRA Official: Obama Wants to Outlaw Guns in 2nd Term

Sean Lengell

A top official with the National Rifle Association said Friday that President Obama will move to “destroy” gun rights and “erase” the Second Amendment if he is re-elected in November.

While delivering one of the liveliest and best-received speeches at the Conservative Political Action Conference in Washington, NRA Executive Vice President Wayne LaPierre said the president’s low-key approach to gun rights during his first term was “a “conspiracy to ensure re-election by lulling gun owners to sleep.”

“All that first term, lip service to gun owners is just part of a massive Obama conspiracy to deceive voters and hide his true intentions to destroy the Second Amendment during his second term,” he said.

“We see the president’s strategy crystal clear: Get re-elected and, with no more elections to worry about, get busy dismantling and destroying our firearms’ freedom, erase the Second Amendment from the Bill of Rights and excise it from the U.S. Constitution.”

Mr. LaPierre said the president’s two Supreme Court appointees — Sonia Sotomayor and Elena Kagan— are “two of the most rabid anti-gun justices in history.” He also accused Justice Ruth Bader Ginsburg of being a foe of gun rights.

And with the possibility of two or more Supreme Court justice positions opening during the next four years, the NRA official warned that gun ownership would be in jeopardy if Mr. Obama stays in office.

“If we get one more like those three, the Second Amendment is finished,” he said. “It’ll be the end of our freedom forever.”

Read the rest here.

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PPP: Santorum Surges into the Lead

Riding a wave of momentum from his trio of victories on Tuesday Rick Santorum has opened up a wide lead in PPP’s newest national poll. He’s at 38% to 23% for Mitt Romney, 17% for Newt Gingrich, and 13% for Ron Paul.

Part of the reason for Santorum’s surge is his own high level of popularity. 64% of voters see him favorably to only 22% with a negative one. But the other, and maybe more important, reason is that Republicans are significantly souring on both Romney and Gingrich. Romney’s favorability is barely above water at 44/43, representing a 23 point net decline from our December national poll when he was +24 (55/31). Gingrich has fallen even further. A 44% plurality of GOP voters now hold a negative opinion of him to only 42% with a positive one. That’s a 34 point drop from 2 months ago when he was at +32 (60/28).

Santorum is now completely dominating with several key segments of the electorate, especially the most right leaning parts of the party. With those describing themselves as ‘very conservative,’ he’s now winning a majority of voters at 53% to 20% for Gingrich and 15% for Romney.  Santorum gets a majority with Tea Party voters as well at 51% to 24% for Gingrich and 12% for Romney. And with Evangelicals he falls just short of a majority with 45% to 21% for Gingrich and 18% for Romney.

Read the rest here.

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Now We Know Why The White House Did Such A Horrible Job Saving The Economy

Joe Weisenthal

For the first time since the Great Recession, the economy is showing some signs of being on a “sustainable” recovery path. And the timing is pretty great for Obama, if the momentum can continue through the year — a big if.

But it’s hard to argue with the fact that through the first couple years of the administration, job creation was achingly slow, even as GDP bounded back nicely from the ’08-’09 depths.

A new article from Noam Scheiber at TNR — adapted from a forthcoming book of his — sheds new light on the fumbling, dysfunctional economic team that Obama had in place during the first two years. It’s a depressing read.

Probably the saddest part is how quickly the administration pivoted to deficits, rather than stimulus.

The article tells how in the summer of 2009, after the first stimulus, Larry Summers and Peter Orszag still had wildly different views on stimulus and deficits. Orszag reportedly wanted deficit cuts; Summers recognized that the economy needed new stimulus.

In the end…

Seated in the Roosevelt Room in early December 2009, the president wondered why both sets of ideas were so timid. Orszag grumbled that it was, in fact, disappointing to offer so little on the deficit front. Summers interjected that the economy was in dire need of more stimulus. Each side then labeled the other’s proposals political nonstarters, and the president lost his patience. “You know what, this is the same meeting we’ve been having,” he said, excusing himself. “Talk to me when you’ve thought this through.” The bickering soon grew so loud that Orszag’s deputy, Rob Nabors, lunged to shut the door.

With no agreement forthcoming, it was Orszag who filled the vacuum throughout the fall. He urged the president to freeze domestic spending in his next budget and favored setting up a commission of Washington elders to recommend trillions in savings over a decade. Summers believed such ideas were gimmicks unworthy of a president. To colleagues he complained that “what’s really important in life is not to believe your own bullshit.” The president sided with Orszag.

Again, the key here is that this was 2009, with the economy barely out of technical recession.

Read the rest here.

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13 Ways (Most Using Other People’s Money) to Save the Economy

Sheesh, would somebody tell the politicians that all that needs to be done to save the economy is spend more of everyone else’s money? Gosh, who knew it could be so simple?

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Debt-ridden and hidebound, Europe may be on the verge of a painful breakup. America is still reeling from the 2008 financial crisis. Even China and India — the new engines of global growth — seem to be sputtering these days. Worse yet, the usual wonkish prescriptions don’t seem to be working anymore. So we asked 13 of the smartest people we know to give us their one out-of-the-box idea for fixing the global economy. Here’s what they recommend.

Read the rest here.

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What Would the End of Football Look Like? (The Concussion Crisis)

By Tyler Cowen and Kevin Grier on February 9, 2012

 

The NFL is done for the year, but it is not pure fantasy to suggest that it may be done for good in the not-too-distant future. How might such a doomsday scenario play out and what would be the economic and social consequences?

By now we’re all familiar with the growing phenomenon of head injuries and cognitive problems among football players, even at the high school level. In 2009, Malcolm Gladwell asked whether football might someday come to an end, a concern seconded recently by Jonah Lehrer.

Before you say that football is far too big to ever disappear, consider the history: If you look at the stocks in the Fortune 500 from 1983, for example, 40 percent of those companies no longer exist. The original version of Napster no longer exists, largely because of lawsuits. No matter how well a business matches economic conditions at one point in time, it’s not a lock to be a leader in the future, and that is true for the NFL too. Sports are not immune to these pressures. In the first half of the 20th century, the three big sports were baseball, boxing, and horse racing, and today only one of those is still a marquee attraction.

The most plausible route to the death of football starts with liability suits.1 Precollegiate football is already sustaining 90,000 or more concussions each year. If ex-players start winning judgments, insurance companies might cease to insure colleges and high schools against football-related lawsuits. Coaches, team physicians, and referees would become increasingly nervous about their financial exposure in our litigious society. If you are coaching a high school football team, or refereeing a game as a volunteer, it is sobering to think that you could be hit with a $2 million lawsuit at any point in time. A lot of people will see it as easier to just stay away. More and more modern parents will keep their kids out of playing football, and there tends to be a “contagion effect” with such decisions; once some parents have second thoughts, many others follow suit. We have seen such domino effects with the risks of smoking or driving without seatbelts, two unsafe practices that were common in the 1960s but are much rarer today. The end result is that the NFL’s feeder system would dry up and advertisers and networks would shy away from associating with the league, owing to adverse publicity and some chance of being named as co-defendants in future lawsuits.

It may not matter that the losses from these lawsuits are much smaller than the total revenue from the sport as a whole. As our broader health care sector indicates (try buying private insurance when you have a history of cancer treatment), insurers don’t like to go where they know they will take a beating. That means just about everyone could be exposed to fear of legal action.

Read the rest here.

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Obama To Call For Lower U.S. Corporate Tax Rate: Sources

* Top U.S. corporate tax rate is 35 percent

* Obama seen calling for lower rate, in line with peers

* Opening salvo in corporate tax revamp (Adds administration official, Bernstein comments)

By Kim Dixon

WASHINGTON, Feb 10 (Reuters) – U.S. President Barack Obama will call for cutting the top 35 percent corporate tax rate as early as this month, according to two sources close to the administration.

The president is likely to propose a rate closer to an average of that seen in peer nations, the sources said.

This would jibe with remarks made last year by U.S. Treasury Secretary Timothy Geithner, who suggested the United States should be moving to a rate more in line with its major trading partners in the high 20-percent range.

Obama outlined tax measures – including closing tax loopholes for companies that move facilities and jobs overseas – in his State of the Union speech in January, and will lay out principles for revamping corporate taxes by the end of February, a senior administration official said.

“We will talk more before the end of the month on what corporate tax reform would look like,” the official said on Friday, confirming that it would include a call for “lower rates.”

Facing a potentially tough presidential re-election challenge this November, Obama will propose cutting the rate following the release of his 2013 budget plan on Monday, Feb. 13, according to the sources, who were not authorized to speak on the record.

Read the rest here.

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Exclusive: Walnut Growers Seek to Stop Sales to Diamond

By Mihir Dalal and P.J. Huffstutter

(Reuters) – Some California farmers plan to stop selling their walnuts to Diamond Foods Inc in the wake of an accounting scandal over grower payments that has claimed the jobs of the snack company’s chief executive and chief financial officer.

Six small walnut growers told Reuters they would stop supplying Diamond when their contracts expire because they say the company has been underpaying farmers. Three of those growers said they hoped to break their contracts early.

Diamond declined to comment on its relationship with growers. The company this week said it had to restate earnings for 2010 and 2011 after its audit committee found that it had improperly accounted for payments to walnut growers.

The walnut growers Reuters spoke to said they know of more than a dozen other growers who also want to terminate their relationships with Diamond. While that is still a fraction of the roughly 1,000 growers who supply Diamond, if there is an Exodus, it could hurt the company’s ability to fulfill orders or force it to pay more in an increasingly competitive market.

Read the rest here.

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The Intelligent Investor: This Is Your Brain on a Hot Streak

By Jason Zweig

Past returns are no guarantee of future success. Just like smokers ignoring the Surgeon General’s warning on the side of cigarette packs, investors overlook the most obvious caution about the stock market at their peril.

Even after Friday’s stumble over renewed fears about Europe, the Standard & Poor’s 500-stock index has gained 7% so far this year, and the Russell 2000 small-stock index is up 11%.

Why is it so hard for investors to regard such short-term hot streaks with the cold eye they deserve?

Decision Research, a nonprofit think tank in Eugene, Ore., has conducted a nationwide online survey of investors seven times since 2008. These surveys have shown that investors’ forecasts of future returns go up after the market has risen and down after it has fallen.

William Burns, an analyst at Decision Research, says investors’ forecasts of the market’s return over the coming year were heavily swayed by how stocks performed in the previous month.

They might not have had a choice. The investing mind comes with built-in machinery that sizes up the future based on a surprisingly short sample of the past. Neuroscientists say the human brain probably evolved this response in a simple environment in which the cues to basic payoffs like food and shelter changed slowly and rarely, making the latest signals most valuable—nothing like what today’s investors face with electronic markets in a constant state of flux.

Experiments led by neuroscientist Paul Glimcher of New York University found that cells deep in the brain calculate a sort of moving average of past events, giving the greatest weight to the most recent outcomes.

When the latest rewards turn out to be better than the long-term pattern, these neurons fire unusually quickly, spreading a burst of dopamine—the neurotransmitter that triggers the pursuit of reward—throughout the brain.

Thus, after a decade of mostly dismal stock returns, even a month or two of outperformance might prompt you into an impulsive plunge back toward stocks.

Some investors seem to have learned how to resist this tendency, and you should, too.

Read the rest here.

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Understanding the Global Warming Debate

By Warren Meyer

Likely you have heard the sound bite that “97% of climate scientists” accept the global warming “consensus”.  Which is what gives global warming advocates the confidence to call climate skeptics “deniers,” hoping to evoke a parallel with “Holocaust Deniers,” a case where most of us would agree that a small group are denying a well-accepted reality.  So why do these “deniers” stand athwart of the 97%?  Is it just politics?  Oil money? Perversity? Ignorance?

We are going to cover a lot of ground, but let me start with a hint.

In the early 1980′s I saw Ayn Rand speak at Northeastern University.  In the Q&A period afterwards, a woman asked Ms. Rand, “Why don’t you believe in housewives?”  And Ms. Rand responded, “I did not know housewives were a matter of belief.”  In this snarky way, Ms. Rand was telling the questioner that she had not been given a valid proposition to which she could agree or disagree.  What the questioner likely should have asked was, “Do you believe that being a housewife is a morally valid pursuit for a woman.”  That would have been an interesting question (and one that Rand wrote about a number of times).

In a similar way, we need to ask ourselves what actual proposition do the 97% of climate scientists agree with.  And, we need to understand what it is, exactly,  that the deniers are denying.

It turns out that the propositions that are “settled” and the propositions to which some like me are skeptical are NOT the same propositions.  Understanding that mismatch will help explain a lot of the climate debate.

 

The Core Theory

Let’s begin by putting a careful name to what we are talking about.  We are discussing the hypothesis of “catastrophic man-made global warming theory.”  We are not just talking about warming but warming that is somehow man-made.  And we are not talking about a little bit of warming, but enough that the effects are catastrophic and thus justify immediate and likely expensive government action.

In discussing this theory, we’ll use the UN’s Intergovernmental Panel on Climate Change (IPCC) as our main source.   After reading through most of the IPCC’s last two reports, I think it is fair to boil the logic behind the theory to this picture:

As you can see, the theory is actually a chain of at least three steps:

  1. CO2, via the greenhouse effect, causes some warming.
  2. A series of processes in the climate multiply this warming by several times, such that most of the projected warming in various IPCC and other forecasts come from this feedback, rather than directly from the greenhouse gas effect of CO2.
  3. Warming only matters if it is harmful, so there are a variety of theories about how warming might increase hazardous weather (e.g. hurricanes, tornadoes, floods, droughts), raise sea levels, or affect biological processes.

In parallel with this theoretical work, scientists are looking for confirmation of the theory in observations.  They have a variety of ways to measure the temperature of the Earth, all of which have shown warming over the past century.  With this warming in hand, they then attempt to demonstrate how much of this warming is from CO2.  The IPCC believes that much of past warming was from CO2, and recent work by IPCC authors argues that only exogenous effects prevented CO2-driven warming from being even higher.

This is just a summary.  We will walk through each step in turn.

Read the rest here.

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Dow falls 89 points, its biggest one-day drop this year

LOL

The Dow had its worst one-day drop in 2012 as it fell 89.23 points, or 0.7%, to 12,801.23 on Friday. The index had otherwise been within striking distance to cross 13,000 for the first time since 2008.

Source

 

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