The Daily Breeze from Torrance, California • 10

I Breeze Monday May 1993 iWOMEJOWS By David Kalish THE ASSOCIATED PRESS NEW YORK It sounded like economic doomsday: an extraordinary warning from top technology companies of far-reaching consequences from any delay in the imminent release of Microsofts new Windows software The direct effect on the US economy of a delay to Windows 98 would be considerable said the letter sent Thursday to the Justice Department by 26 high-tech executives from companies ranging from Intel to Compaq But several leading economists dispute the broad claims in the letter an industry attempt to blunt any move by antitrust officials to block the update to the Microsoft operating system While the letter hints of the impact on the millions of Americans who work on software that runs on Windows and in related industries the economists said any major damage is likely to be limited to a handful of high-tech companies To make a claim that the failure to introduce new software a new operating they have spent unspecified millions of dollars on product development and promotions tied to launch and that sales of personal computers and related high-tech gear would be hurt during the crucial back-to-school buying season Interfering with the release of Windows 98 would drag down the entire industrys efforts to deliver value to customers and returns to shareholders the letter said Some industry analysts agreed a delay would be disruptive to marketing and product-development plans But they added that the high-tech industry has already bounced back from numerous delays by Microsoft in releasing earlier operating software including the far-more-popular Windows 95 Scott Randall an analyst with Sound-view Financial Corp said extra consumer demand generated by the new system has not been expected to give the computer industry a big boost Incrementally it will help But will it be a real big deal? No he said system on time is going to affect the economy thats just unbelievable said Daniel Bachman a senior economist at WE FA Inc a Philadelphia-area based economic forecasting firm Some suggest the letter written as Microsoft tries to rally industry support was a good indicator of the Redmond Wash-based software makers influence on companies reliant on its operating software Available June 25 Windows 98 the $109 upgrade to the system software that runs the vast majority of home computers is due to be shipped to computer makers within weeks and will hit retail shelves June 25 Its future has been clouded recently by antitrust probes by the Justice Department and more than a dozen states into Microsofts business practices Relatively few consumers are expected to rush out to buy the update because it contains far fewer important innovations than the Windows 95 system it replaces Bachman said the companies likely to suffer within the computer industry could include makers of accessories such as computer game joysticks since Windows 98s features enable users to hook up peripherals more easily "Some specific manufacturers who have made aggressive plans for the introduction of Windows 98 could be hurt Bachman said I doubt the industry itself will be hurt that much It is more an issue of damage or harm to individual companies which is a relevant issue as opposed to overall damage to the economy said Lynn Reaser an economist for NationsBank Corp Reaser said that more important issues for the computer industry were an ongoing price war that has hurt profits and reduced consumer demand because of the economic slump in Asia Dell Computer Corp one of the letter-signers agreed that other issues were similarly important but stood by the main point of the letter While we dont think strong industry demand is solely dependent on Windows 98 we think its foolish to delay it said Dell spokesman TR Reid The technology companies also said a 4 Analysts dispute Claim that delay in Microsoft program release will hurt economy Dave Garrett manager of a Citicorp Universal Card investigations team shows a videotape recording of an arrest in a credit card case caught on a surveillance camera The former Washington DC homicide detective says his group known as the Code 10 team recovers more than 150 stolen credit cards and 30 counterfeit cards per month Economies returning to global scale By Louis Uchitelle THE NEW YORK TIMES When it comes to globalization the 20th century is ending on a note of deja vu: The worlds economies are roughly as intertwined today as they were in 1913 Two world wars and the Great Depression dismantled the globalization that had been achieved over a 40-year period starting in the 1870s By 1913 trade and foreign investment two key measures of global integration were roughly at the levels that have been reached through a gradual buildup since the late 1950s The annual rate of increase worldwide for merchandise exports for example was 17 percent from 1870 to 1913 compared with about 13 percent since the 1950s Foreign direct investment as a percentage of the worlds total output reached 9 percent in 1913 in the mid-1990s it was 101 percent up from 44 percent in 1960 Other data yield similar results Imported raw materials There are differences of course At the beginning of the century manufacturing jobs could not be shifted easily to low-wage countries They were confined to the industrial nations which traded manufactured goods for raw materials from the underdeveloped world Today we are moving in the direction of every country being able to produce everything says Robert Pollin an economist at the University of California Riverside A century ago colonial empires particularly the British Empire provided the structure for globalization and British or German or US companies counted on the military power of their home countries to protect their operations abroad Today companies locate almost anywhere And information technology vastly increases the speed of transactions across borders today That leaves governments struggling to keep up with the pace of change What you see governments more focused on today is the social safety net said Daniel Yergin co-author of The Commanding Heights a recent book on the spread of free-market thinking around the globe Fixing the safety net to protect people from the downside of a global economy becomes the preserve of the nation-state THE ASSOCIATED PRESS GREHIT C155D 1 f-V I By Ron Word THE ASSOCIATED PRESS JACKSONVILLE Fla Fingerprints and DNA didnt trip up the killers who shot Henry Egbo in the back and dumped his body into the Monongahela River in Pittsburgh The victims gold credit card put the suspects behind bars Hours after the Chicago engineer died Jan 13 1997 his suspected killers were shopping for computers big screen TVs and other goods running up at least $3000 on Egbos credit card A suspicious store clerk and the work of the Code 10 team at Citicorp Universal Card resulted in the arrest of three people on credit-card fraud They were later charged in Egbos death The clerk at Honus Wagner Co a Pittsburgh sporting goods store had relayed her suspicions to the credit card companys investigative team The team called Egbos wife and learned that no one had permission to use his credit card and it was unlikely that he was purchasing sporting goods The 21-member Code 10 team part of the 175-member Fraud Department of the Jacksonville-based credit card company helped police solve five murder cases and make 890 arrests last year alone Since the team was formed in 1991 apartment one he had rented while working on a project had been cleaned out by the suspects Cooper said Bullock the alleged gunman fell 100 feet to his death in November while trying to lower himself from the Allegheny County Jail with a rope of bedsheets His girlfriend and her mother are scheduled to stand trial later this year They face a possible penalty of life in prison without parole if convicted of murder Nationwide credit card fraud results in about $2 billion a year in losses or about 7 to 9 cents for every $100 in transactions and is dropping industry representatives said MasterCard Visa and American Express all have fraud units similar to those at Citicorp which until a recent buyout was known as Universal Card Members of the investigative unit testify in court and supply documents subpoenaed for court cases Dave Garrett Code 10 team manager said the conviction rate of those accused of credit card fraud is 98 percent The case is basically handed to them Garrett said explaining they get a signature on a sales slip and an eye witness the clerk Citicorp fraud unit helps solve crimes it has aided police in more than 7050 arrests The work of the store clerk who suspected Egbos credit card was stolen and the Code 10 team resulted in the arrest of Rayton Bullock 19 of Pittsburgh his 20-year-old girlfriend Normita Jackson and her mother Rose Buckner 46 before they left the store All three gave statements about their involvement in Egbos death said Police Officer LE Cooper of Pittsburgh Egbos body was found a few days later His I' i 1 i li1 I i ri i -r in iriiiiiirr'TiiiTiiii 8jrriwiB8iiisiiiWTifMmTOrBifliaaiagfc debt soars in Beach 90277 Chapter: 7 Assets: $25000 Debts: $132996 Document: IA98-251 1 1-EC File date: April 16 LA Moose Inc 179 Harbor Drive Redondo Beach 90277 Chapter: 7 Assets: $25000 Debts: $132996 Document: LA98-25108-EC XX File date: April 16 Perhaps the reason so many middle-class people become cranky about their personal finances in April is not because of taxes but rather because they find themselves caught in the worst part of the spending cycle recent years shopper takes about six months to pay off Christmas bills So by late April millions of consumers are still trying to pay for December gifts while at the same time starting to spend on summer clothes and vacations Very quickly the interest charges spiral up The Consumer Federation of America says families spend an average of $1000 per year in interest payments on consumer debt We wouldnt have to worry so much about what Congress is doing to Social Security if instead of paying interest the average family were adding $1000 every year to an individual retirement account So why do millions of otherwise sensible people ignore the importance of frugality? Do armed bankers roam the mall forcing people to pull out their plastic and spend? No But the nations roughly 2500 credit card issuers do relentlessly stuff mailboxes with solicitations urging consumers to borrow more Stores that used to offer layaway plans now strong-arm customers into opening charge accounts Still those factors cannot excuse the huge growth in debt No one not the lawmakers in Washington nor the debt pushers at the mall can force consumers to live beyond their means Instead pf spending so much energy railing against taxes in April most families would be better off using the time to review their spending habits lay out a budget for summer and learn to live within their means Middle-class By Marilyn Geewax COX NEWS SERVICE ATLANTA With April wrapped up the -annual outburst of hot hateful words about taxes is winding down During tax season I get loads of letters and e-mails complaining about" how families need two incomes to "make it today because the federal government is taking so much more of our income In reality the overall level of federal taxation has remained virtually unchanged for decades A recent analysis by the Congressional Budget Office showed that for middle-income households federal taxes consumed 20 percent of earnings in 1979 Today the figure 7s down slightly to 197 percent Compared with bther industrialized countries our taxes are remarkably stable and low So if it's not the governments fault why Tnre so many workers feeling more squeezed Itoday? Why are personal bankruptcy filings 'at record levels? The answer cannot be found in Washington but in our own wallets Too many Americans enjoy spending mall money as financial planners now call credit cards Instead of us-ling this period of economic growth to pay "down debt and save for rainy days millions are feverishly shopping for more clothes toys nd jneals I Today consumers carry more than $12 trillion in installment credit a boost of about fj) percent in the past four years Think about that: Debt is shooting up even though in- Each week the Daily Breeze business section publishes a list of local companies that have filed for liquidation or in US Bankruptcy Court Amejean Corp 223 West Rosecrans Ave Gardena 90248 Chapter: 7 Assets: $101300 Debts: $538943 Document: LA98-24286-EC File date: April 13 Martin May dba: Java Connection 220 Marina Way No 61 Redondo Beach 90277 Chapter: 7 Assets: $16220 Debts: $76112 Document: LA98-24796-EC File date: April 1 5 Active Network Solutions Inc 1123 Dominguez No Carson 90746 Chapter: 7 Debts: $215398 Document: LA98-24810-AA File date: April 15 DOTR Enterprises Inc Doc's On The Rocks 179 Harbor Drive Redondo Key A also known as Chapter 7: A straight liquidation bankruptcy in which an appointed trustee sells all assets by auction or other means to pay creditors and trustee fees Chapter 11: A business gains temporary relief from debt payments to attempt a successful reorganization Debtor remains in control of the business during the bankruptcy and the business continues to operate Dba: doing business as Fdba: formerly doing business as Fka: formerly known as Involuntary Chapter 7 or 11: A debtor Is forced Into bankruptcy by secured creditors whose claims total at least $5000 Source: Timely Info of Los Angeles comes are growing taxes are stable and unemployment is hovering near rock bottom Even more peculiar are the demographics behind the debt The people who keep digging further into the financial hole are not poor The bankers survey showed that 44 percent of the people late with their credit card payments earned more than $50000 a year Only 4 percent of those who were late had incomes below $15000 Perhaps the reason so many middle-class people become cranky about their personal finances in April is not because of taxes but rather because they find themselves caught in the worst part of the spending cycle A survey conducted last year by the American Bankers Association found the typical.