Tuesday, January 31, 2012

Money Management: Benefits of investing in emerging markets

By Marijoyce Ryan
Posted: 5:37 pm Tue, January 31, 2012

Marijoyce Ryan

Over the course of many years, the concept of investing in emerging markets seemed, well, foreign to many. Terms such as exotic, risky, third-world, etc. were associated with it. Now, emerging markets are popular with investors seeking wealth preservation and growth. Let?s take a look at what are emerging markets.

The term emerging markets was coined by the World Bank?s International Finance Corporation in the early 1980s. Typically, emerging markets are countries in the process of industrialization, with the potential of higher gross domestic product growth per capita than more developed countries.

Generally speaking, emerging markets are identified by a growing population experiencing a substantial increase in living standards and income, solid economic growth and a relatively stable currency. Some examples of emerging markets include China, India, Taiwan, Indonesia, Russia, Czech Republic, Turkey, Brazil and Chile, among others.

Over the five-year period ending 2010, the average annual GDP of the United States was 0.9 percent. Compare that to the same data of the following countries:

Russia???? 3.6 %
China????? 11.2 %
India?????? 8.3 %
Brazil????? 4.5 %
Turkey???? 3.1 %
Malaysia? 4.4 %

As a whole, emerging markets as a percent of the world?s GDP went from 32 percent in 2000 to 45 percent in 2010. In contrast, the developed North American economies decreased from 33 percent to 26 percent over the same time frame (according to Bloomberg Finance LP).

As the emerging economies of the world continue to grow, consumption of all goods and services increases ? thereby increasing demand. While these markets have experienced higher volatility in their equity returns, they have also produced better long term returns than have the collective markets of the developed economies (Morningstar data through 2010).

See the equity performance numbers below:

? Emerging Markets United States Market
Past 20 Years 12.2% 9.1%
Past 10 Years 16.2% 1.4%
Past 5 Years 13.1% 2.3%

Contributing to the return of emerging market equities is currency translation. As the U.S. dollar decreases versus other currencies, it enhances the return because when gains are taken in emerging markets and converted back to dollars, the investor receives more dollars. The reverse is true as well. Currency is one of many risks. Others include political and social events/problems, taxes, liquidity and other restrictions.

So, what is the message to the average investor? As part of a prudently diversified portfolio, one should have exposure to emerging markets for the long term benefits of wealth preservation and creation. The key is ?long term.? This implies multiple years ? not months. Over the course of many years, the impact of volatility is diminished. As the migration of growth and wealth creation is moving to the emerging markets, so too should investors allocate assets to those markets. Over a 20-year period, emerging market stocks have produced superior returns to not only our stock market but also to the international developed markets. This relationship should continue in the future.

A skilled investment manager can assist you in navigating investment risks and recommending the appropriate level of emerging market allocation for your portfolio.

Marijoyce Ryan, CPP, is vice president of fiduciary services for Karpus Investment Management, a local independent, registered investment advisor managing assets for individuals, corporations, nonprofits and trustees. Offices are located at 183 Sully?s Trail, Pittsford, N.Y. 14534; phone (585) 586-4680.

Source: http://nydailyrecord.com/blog/2012/01/31/money-management-benefits-of-investing-in-emerging-markets/

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Koss revamps Porta Pro headphones with iPhone remote, intros 'interlocking' earbuds

We're baffled that we missed this gem of news during the bustle of CES, but it turns out that Koss has recently announced a new version of its iconic Porta Pro headphones. The Porta Pro KTC (Koss Touch Control), as it's dubbed, is essentially the same piece of retro kit that's been delighting ears and keeping wallets chubby for nearly three decades. The KTC bit in its name refers to the inclusion of an iDevice-certified inline remote / mic, aimed at keeping on-the-go users in sync with their playlists and phone calls. If you prefer earbuds, but hate tangled cords, then the company's interlocking intra-aurals might be to your liking. This lineup features in-ears which snap into each other for easier storage. You'll have a choice between the IL-100 and 200, the latter of which distinguishes itself with the mere addition of an inline remote for iPhones. While there's no word on pricing just yet for any of the aforementioned units, Koss aims to begin ship the new audio-wares once spring is in full bloom. For now, you'll find the press releases and a render of the 'buds after the break.

Continue reading Koss revamps Porta Pro headphones with iPhone remote, intros 'interlocking' earbuds

Koss revamps Porta Pro headphones with iPhone remote, intros 'interlocking' earbuds originally appeared on Engadget on Mon, 30 Jan 2012 06:41:00 EDT. Please see our terms for use of feeds.

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Source: http://feeds.engadget.com/~r/weblogsinc/engadget/~3/5wVkve-v8p0/

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Monday, January 30, 2012

What if we could predict tornadoes a month out? Scientists make strides.

Scientists have only a fledging ability now, but a new approach to prediction could eventually allow forecasters to identify portions of states facing high risk for tornadoes in an upcoming month.

Scientists have developed a fledgling ability to predict monthly tornado activity in the US up to one month in advance.

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The technique, which uses existing weather-forecasting tools, is not yet ready for prime time. But in initial tests, the approach showed "statistically significant skill" in predicting regional tornado activity during most months of the year, including the peak of the spring tornado season, the researchers say.

If the approach can be honed sufficiently, eventually it could allow forecasters to identify portions of states facing the highest risk for tornadoes in an upcoming month.

In addition, the technique could help scientists explore a potential direct relationship between global warming and tornado activity. So far, such efforts have focused largely on the relationship between global warming and conditions that can spawn severe thunderstorms, which may or may not trigger tornadoes.

Though the results so far are modest, "this is exciting, because it's a hard problem," says Michael Tippett, a researcher with Columbia University's International Research Institute for Climate and Society, who lead the team.

The effort represents "an important early step" along the road to seasonal forecasts of tornado activity, says Harold Brooks, a researcher at the National Severe Storms Laboratory in Norman, Okla.

One potential audience for such forecasts would be federal and state emergency managers, Dr. Brooks suggests.

"If you were able to say: 'The second half of April is going to be really, really bad,' " it could provide extra lead time to marshal emergency supplies or ratchet up efforts to ensure more people know how to respond to tornado watches and warnings when they are issued, he explains.

Ordinarily, Dr. Tippett spends his time developing or improving ways to make extended-range forecasts of tropical cyclones, or swings in natural climate cycles such as El Ni?o or the Arctic Oscillation.?But that changed last April, when the US experienced its worst tornado outbreak on record. The three-day outbreak from April 25 to 28 spawned 359 tornadoes in 21 states, including four tornadoes that reached EF5, the most destructive category. The outbreak and the thunderstorms that spawned them inflicted at least $11 billion in damage and killed 322 people.

At the time, Tippett says, he noted that forecasters at the Storm Prediction Center in Norman, Okla., "had identified large regions where they thought there was going to be trouble, maybe four or five days in advance."

That implied the presence of large-scale, predictable features in the atmosphere that favor the formation of severe storms.

Researchers have applied the same general concept to produce seasonal hurricane forecasts. Tippett says it dawned on him that key atmospheric features also may encourage tornado-spawning storms to form.

Source: http://rss.csmonitor.com/~r/feeds/science/~3/rCndxLpet88/What-if-we-could-predict-tornadoes-a-month-out-Scientists-make-strides

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Paul says he has no intention of dropping out (AP)

GORHAM, Maine ? Ron Paul said Saturday the Republican presidential race has "a ways to go" and he doesn't intend to get out or get behind another candidate anytime soon.

The Texas congressman was campaigning Saturday in Maine, which holds caucuses beginning Feb. 4. He spoke to an overflow crowd at the University of Southern Maine and held an outdoor rally outside the famed L.L. Bean store in Freeport. He picked up the endorsement of Linda Bean, the granddaughter of the Bean company founder and a prominent Republican activist in the state.

Paul told reporters that it didn't make sense for him to campaign in Florida, which holds its primary Tuesday and awards all its 50 delegates to the winner. Polling indicates Mitt Romney is leading the field there.

"Some other campaigns have many, many millions of dollars to run a campaign," Paul said. "We maximize the delegates the way we're doing it."

Paul planned to campaign next week in other caucus states, including Nevada, which also holds its caucus on Feb. 4, and Colorado and Minnesota, which hold caucuses Feb. 7.

Paul dismissed suggestions he would back any of his GOP rivals.

"I think that's premature. We have a ways to go," Paul said, adding he was glad they were speaking favorably about some of his libertarian-leaning views.

"I'll work with anybody who wants to come in the direction of Constitutional government," Paul said.

He noted that Newt Gingrich had endorsed his views on monetary policy in a nationally televised debate this week. Paul has called for the Federal Reserve to be audited and ultimately eliminated, and wants the value of the dollar tied to gold.

Paul said he hoped the former House speaker and others would also adopt his noninterventionist foreign policy views, which are far outside the Republican Party mainstream.

"If he says `I agree with Ron Paul, we should bring the troops home from Afghanistan,' my ears would pop up," Paul said.

___

Follow Beth Fouhy on Twitter at http://www.twitter.com/bfouhy

Source: http://us.rd.yahoo.com/dailynews/rss/gop/*http%3A//news.yahoo.com/s/ap/20120128/ap_on_el_pr/us_paul

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Sunday, January 29, 2012

MasterCard's QkR mobile payment system enters trial in Australia

QkR
MasterCard is all over the map when it comes to mobile payments. The credit company will partner with anyone, anywhere, anytime if it means getting new customers and making a buck on the deal. Its latest offering is called QkR, an Australian effort with support from the Hoyts chain of movie theaters and Commonwealth Bank. The initial trial run will be at La Premiere cinemas, where customers will be able to order and pay for food and beverages right from their seat with the QkR app. To initiate the transaction a you scan the QR code or tap the NFC tag attached to the arm rest, and a staff member delivers the trough of popcorn and kiddie pool of coke right to your seat. Now all we need is this sort of high-end treatment in American movie theaters. Check out the video after the break to see it in action.

Continue reading MasterCard's QkR mobile payment system enters trial in Australia

MasterCard's QkR mobile payment system enters trial in Australia originally appeared on Engadget on Fri, 27 Jan 2012 21:15:00 EDT. Please see our terms for use of feeds.

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Source: http://www.engadget.com/2012/01/27/mastercards-qkr-mobile-payment-system-enters-trial-in-australia/

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Monday, January 23, 2012

Cities where real estate is ripe for a rebound

Lately economists and investors have been debating whether the housing market has hit bottom. It?s a complicated picture on a national level, but zoom in and it?s possible to identify cities that have not only reached a bottom, but are beginning to experience a recovery.

Take San Jose, Calif. The Golden State has gotten a lot of attention for its economic woes, but San Jose is a veritable oasis of prosperity. Employment in the capital of Silicon Valley is expected to expand 3.3 percent this year and it logged net in-migration in 2010 of 4,840 people. Job and population growth are fueling housing demand: New home construction in the area was up a whopping 97 percent in 2011?s third quarter compared to the year earlier.

San Jose is one of 10 metro areas that Forbes deems ripe for a real estate rebound. The folks at Local Market Monitor, a Cary, N.C.-based real estate research firm, helped us compile this list, sorting through housing and economic data for the 100 most populous cities and their surrounding suburbs, defined as Metropolitan Statistical Areas and Metropolitan Divisions by the U.S. Office of Management and Budget. LMM assessed the change in home prices over the past 12 months and three years (on the latter, our reasoning is that markets that lost less value in the housing bust have the potential to recover faster), unemployment rates, 12-month job-growth projections, the change in population from 2006 through 2009 (the most recent data available from the U.S. Census) and new-home construction rates for the third quarter of 2011 as compared to the same quarter in 2010.

Forbes.com slideshow: Cities where real estate is ripe for a rebound

All of the cities that made our list share one common factor: a relatively strong job market. ?For real estate to do well you want to see two things: that incomes are growing rapidly like they are in a market like San Jose ? and that the growth in jobs attracts other people to that market,? says Ingo Winzer, founder and president of Local Market Monitor. However, job growth should be looked at as a bullish housing indicator only if the unemployment rate is already relatively low ? that suggests local companies are creating new jobs rather than rehiring for positions they cut during the recession.

That seems to be the case in Boston. The New England hub has a low 5.7 percent unemployment rate thanks to the presence of more than 100 universities and colleges in the metro area and a variety of biotech and financial services companies. ?Income is well above average. The housing boom was mild, with a 16 percent rise in prices followed by a 10 percent drop. The recession also was mild, with jobs down just 2 percent,? explains Winzer. Clear Capital and Trulia also have positive forecasts for Beantown this year, and many of its neighborhoods graced Forbes? 2011 Most Expensive ZIP Codes list for the first time. Other college towns offering real estate promise are Austin, Texas, and Raleigh, N.C.

Oil doesn?t just heat homes, it also heats up a housing market. Cities where oil and natural gas are key components of the local economy have not only fared well in the downturn, they?ve thrived. In Houston, where the heavy concentration of energy companies has earned it the nickname ?Baghdad on the Bayou,? home prices shot up 21 percent from 2002 to 2007 and rather than falling, have stayed close to those 2007 levels since. The population has grown at nearly triple the national rate and median income is above average. Houston and other Lone Star cities also didn?t succumb to the levels of overbuilding that cities in neighboring Sun Belt states did, either.

Forbes.com: Cities where home prices are falling dangerously

Two surprising entrants on our list are Pittsburgh, Pa., and Rochester, N.Y., industrial-era boomtowns that went through several decades of economic decline. Pittsburgh has been one of the most stable housing markets over the past five years: Prices have been more or less flat since the market peak in 2007. Home prices in Rochester have dropped 15 percent since 2007, but its economy has managed to stabilize and hang onto jobs. Pittsburgh and Rochester "are not high-growth markets yet, and they haven?t attracted new people yet,? says Winzer. ?But they are both creating new kinds of jobs ? high-tech and medical research-related jobs ? and that?s why ? they will do better than most markets this year.?

Another city on our list that has gone through tough times is New Orleans. The Big Easy sports a relatively low 6.5 percent unemployment rate, a forecast for 1.9 percent job growth this year and a steady influx of newcomers. ?It is a really different kind of market because it is still heavily affected by what happened with Hurricane Katrina,? notes Winzer. The port city boasts an economy fueled by energy, tourism and construction. ?The real estate situation is complicated by the large number of properties destroyed. Now that the economy seems to have stabilized, renewed population growth will spur new construction.?

One of the things to remember when looking at home price data for these recovery-ready markets is that price drops or increases of one, two, or 3 percent are a pittance compared to the double-digit percentage drops common in recent years. Real estate experts like Winzer agree that price fluctuations of 3 percent or less generally indicate that a market is stabilizing. If a city hovers within that range for several quarters or a year, it?s probably safe to say that market has found its bottom. All of the metro areas on our list have almost undoubtedly found their bottoms. New home construction, which remains depressed for nearly every market across the country, should take off in these markets later in the year. ?Once these markets are truly recovering, you will see a doubling in activity,? asserts Winzer. ?It?s the last thing that happens.?

Forbes.com: A $1.5 million cave house in the arizona desert??
Forbes.com: Homes of the future, on sale now
Forbes.com: America?s 25 best-performing cities??
Forbes.com: Where americans are hunting for homes

? 2012 Forbes.com

Source: http://www.msnbc.msn.com/id/46063283/ns/business-forbes_com/

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Sunday, January 22, 2012

Urinating cat, not fire, caused smoke in Pa. home

(AP) ? One western Pennsylvania fire department learned that there's not necessarily fire wherever there's smoke.

New Castle's assistant fire chief Jim Donston tells The Associated Press that firefighters were called when an electrical outlet on a floor was smoking, only to find that happened because the family's cat urinated into the outlet.

The New Castle News (http://bit.ly/zHd1RS ) first reported the incident Friday and Donston supplied more details to the AP.

The assistant chief says a Columbia Gas worker was at the house checking for a possible leak when he noticed the smoking outlet and called the fire department Wednesday about 7:30 p.m.

Donston says firefighters "found the receptacle wet from cat urine" and shut off the electrical supply to that circuit.

___

Information from: New Castle News, http://www.ncnewsonline.com

Source: http://hosted2.ap.org/APDEFAULT/aa9398e6757a46fa93ed5dea7bd3729e/Article_2012-01-20-Where%20There's%20Smoke/id-a5d86da622314555b093ea56879492c1

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Report: Undercover police had kids with activists (AP)

LONDON ? Britain's Guardian newspaper said Friday that two undercover police officers have fathered children with the activists they were spying on.

Key details were hazy but the revelations are the latest in a series of reports which has cast doubt on whether undercover police in the U.K. go too far in seeking to infiltrate environmental, animal rights and extremist groups.

British authorities are already preparing a report into the use of undercover officers after one of them caused a trial to collapse when his cover was blown.

The Guardian said that two other police operatives had children while on the job, although the timing of the officers' alleged relationships is unclear.The paper said one of them fathered a child in the 1980s and that another one did so "some years ago." The paper said it was withholding the women and children's names for reasons of privacy.

The newspaper cited one of the now-former police operatives and an unnamed second person as the source for its reporting. An email seeking comment from the ex-officer named in the article was not immediately returned late Friday.

A spokeswoman for Her Majesty's Inspectorate of Constabulary, the police body which is looking into the use of undercover officers, said she was checking to see whether the group could comment on report, which is due out in the Guardian's Saturday edition but was available online late Friday.

Source: http://us.rd.yahoo.com/dailynews/rss/britain/*http%3A//news.yahoo.com/s/ap/20120120/ap_on_re_eu/eu_britain_undercover_fathers

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Sunday, January 15, 2012

After encampment ends, NYC Occupiers become nomads (AP)

NEW YORK ? It was only a few nights after the Occupy protesters began sleeping in his church sanctuary when the Rev. Bob Brashear realized that his laptop was missing.

The refugees from Manhattan's Zuccotti Park had found their way to his cavernous Presbyterian church on a cold winter evening, hoping to stay for a few nights, maybe longer. It was the latest stopover for the nomadic group, which has been living in a rotating series of churches since the city shut down its camp in November.

"There was a sense of shock and sadness that it had happened," said Brashear, whose laptop will soon be replaced by Occupy organizers. "And there's a common understanding that if there's one more theft in the church, that's it."

This is what the Occupy encampment has become: a band of homeless protesters with no place to go. Amid accusations of drug use and sporadic theft, they've been sleeping on church pews for weeks, consuming at least $20,000 of the donations that Occupy Wall Street still has in its coffers. Their existence is being hotly debated at Occupy meetings: Are these people truly "Occupiers" who deserve free food and a roof over their heads?

"We don't do this out of charity," said 34-year-old Ravi Ahmad, who works for Columbia University and volunteers with Occupy in her spare time. "We do this so that whoever wants to work in the movement can work in the movement. This is a meritocracy."

But money is draining rapidly from Occupy's various bank accounts, which currently amount to about $344,000. Including church maintenance costs and meals, living expenses are more than $2,000 per week.

"We are all aware that the NYPD destroyed the tent homes of many Occupiers in just one night," someone recently wrote on http://www.nycga.net, Occupy's General Assembly website for New York City. "However, where were they living before Zuccotti Park? Are we paying for housing for homeless people who may be relocated to City shelters?"

The movement, which denounces corporate excess and economic inequality, has been fighting to stay afloat in the city where it began. Media attention and donations have dropped off. And although protesters regularly meet to plan demonstrations, recent marches have had none of the spectacle that captivated New Yorkers and watchers worldwide.

On Monday, the metal barricades surrounding Zuccotti Park were removed for the first time since the November raid. But protesters still can't set up tents to camp overnight ? and they don't have a long-term solution to the housing problem.

Their current home is Brashear's West-Park Presbyterian Church, a stately 100-year-old house of worship on the Upper West Side that badly needs renovation. Occupy organizers see the cracks in the ceiling as an opportunity to repay the favor by helping to fix the place up.

There are about 70 Occupiers staying there and another 30 or so at Park Slope United Methodist Church in Brooklyn.

"Everybody tries to get along, make things work," said Donna Marinelli, 52, of New Britain, Conn., who was sitting on the floor in a sleeping bag alongside her cousin, David Monarca. "We were in the park in tents until they raided us. We wanted to stay for the movement. We didn't want to leave when we just got here."

During the daylight hours, Marinelli attends Occupy events and volunteers at an Occupy kitchen in Brooklyn. Nobody is allowed to stay in the church during the day. At night, the place is patrolled by an Occupy security team led by Marine Corps Sgt. Halo Showzah, a 27-year-old Iraq war veteran from the Bronx.

"We walk around the church with flashlights, making noise to wake these people up and making sure they're good," he said. "No sex in the church, no drinking, no smoking, no shooting, no sniffing."

The church was quiet and cozy Wednesday night as about two dozen people staked out their respective corners of the room. Some prefer the balcony; others like to curl up by the door. Someone fiddled around on the piano and sang a few songs as a cat watched from a pew. Showzah wandered around and chatted with everyone, making jokes and doling out advice to the singer.

The security threat is very real here. At least 30 percent of the crowd is a mix of chronically homeless, drug-addicted people, some of whom suffer from "psychological issues," as several protesters put it. Among other rules, the pastor has demanded that the Occupiers station at least one mental health expert "within easy reach" of the church every night.

Even some of the church dwellers themselves are fed up with their fellow pew mates. Chris Allen, 36, is working on a backup plan in case they get kicked out.

"I feel people are messing up the church and we're not going to have it much longer, so I'm worried about putting money in my pocket," said Allen, an unemployed construction worker from Long Island who lives here with his wife. "Because when it snows and I have nowhere to go, I'm not going to be stuck on the streets like everyone else for being idiots."

Who is allowed to stay at the church is a source of contention and perpetual infighting. If you're not on the official list kept by Occupy organizers, you're not allowed inside. But it's unclear what distinguishes the general populace from an Occupier.

One night in December, police officers were called to the Church of St. Paul and St. Andrew when people who weren't on the list came to the door and refused to leave.

"I was turned away one night in the cold and rain," said David Everitt-Carlson, a 55-year-old unemployed former advertising executive who lived in a teepee at Zuccotti Park. "And I slept at Grand Central Station. I found a place behind a Christmas decoration."

About a month ago, a telephone hotline was set up so people could call and request a spot at one of the churches. But space is limited. And each church sojourn has an expiration date.

Some churches willingly opened their doors to provide temporary shelter after the police raid. None of them are equipped to house protesters forever.

"It's a lot of wear and tear on the space," said Michael Ellick, a minister at Judson Memorial Church, which housed protesters for several nights in November. "We're broke, so we don't have a custodial staff. We can't be a full-time housing unit."

During daylight hours, some people migrate down to Occupy's atrium at 60 Wall St., while others head off to hunt for jobs or disappear into the city. At night, there are often counselors on hand for emotional support.

Typical arguments are reminiscent of life at Zuccotti, which had its own share of criminal activity. A frequent complaint, for example, involves a man who apparently never takes showers.

"No fistfights, no weapons involved," said Jeff Brewer, 34, an Occupy organizer. "I believe there was a shampoo bottle that was thrown one time."

Meals are donations from food pantries and leftovers dropped off by nearby restaurants. Occupy's financial donations mostly come in small amounts from private donors, who can funnel money through a myriad of online payment services.

The debate over providing food and shelter for the church Occupiers plays into a larger one that has divided New York's protesters ever since the police raid. While some are determined to occupy another space somewhere in the city, others say an encampment is unnecessary and, at its worst, a burden.

The church dwellers believe they are carrying the torch for the lost encampment ? and that, someday, they will form the foundation of a new one.

"We really have been calling it the `Occupiers army' that we are building," explained protester Jason Harris, a teacher from Massachusetts.

First, though, they'll have to find a way to survive the winter. Brashear hasn't yet decided whether he will allow the protesters to stay at West-Park beyond next week. If they are truly dedicated to forming a community ? and not simply seeking shelter within the church's walls ? he'll be more willing to extend their unspoken lease.

"It's a sort of sink or swim situation," he said. "I think, long-term, they have to make a decision about what, exactly, their movement is about."

Source: http://us.rd.yahoo.com/dailynews/rss/us/*http%3A//news.yahoo.com/s/ap/20120112/ap_on_re_us/us_occupy_wall_street

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Canada: Marriages of foreign gays are invalid

The Canadian government is abruptly arguing that the same-sex marriages of many foreigners who wed in Canada are not valid, a move that stunned the gay community and could affect thousands of couples.

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In 2005, Canada became one of the first nations in the world to formally legalize gay marriage.

Same-sex couples have been marrying in their thousands in Canada, and lenient rules on residency requirements for those seeking a marriage license mean many of them are from abroad.

Ottawa now says many, if not all, the unions involving foreign residents are invalid.

It made the argument in a case where two women, one from England and the other from Florida, sought a divorce after their 2005 Canadian marriage.

'Oh, yes, sorry'
The government's position has prompted sharp questions about why Ottawa allowed so many foreign same-sex couples to get married for so long before deciding the unions were not valid.

"(This) is about to, if it hasn't already, make us look like fools on the international stage," said Martha McCarthy, a lawyer for the couple at the center of the furor.

"We're the leaders of gay marriage ... and the federal government is saying 'Oh, yes, sorry, we forgot to mention that for the last nine years we've been marrying people that we didn't think those were valid'," she told Reuters on Thursday.

Story: Canada legalizes gay marriage nationwide

Critics blamed the right-of-center Conservative government, which they say wants to roll back social rights such as gay marriage and abortion.

Prime Minister Stephen Harper said he was unaware of the case.

"We have no intention of further re-opening or opening this issue," Harper reportedly said when asked about a article in the Globe and Mail newspaper, which first reported the story Thursday.

"In terms of the specifics of the story ... I will admit to you that I am not aware of the details," Harper said, according to the Globe and Mail. "This I gather is a case before the courts where Canadian lawyers have taken a particular position based on the law and I will be asking officials to provide me more details."

Justice Minister Rob Nicholson said in a statement he would be "looking at options to clarify the law so that marriages performed in Canada can be undone in Canada."

He gave no further details and did not make clear whether Ottawa would continue to argue that marriages that had already taken place could not be ended in Canada.

2,500 affected?
Activists estimate that around 7,500 same-sex couples have married in Canada since 2003, when some provinces first allowed gay marriages. About 2,500 involved were foreigners, many from countries and U.S. states that do not recognize gay unions.

Ottawa says the 2005 marriage in the latest case "was not legally valid under Canadian law" because the women could not have lawfully wed in England or Florida.

It also cited the Canada Divorce Act, which says any couple seeking to end a marriage in Canada must have lived there for a year.

Video: Romney, Santorum discuss gay rights (on this page)

McCarthy said her clients' message was: "We can't get divorced in our own jurisdictions because they don't recognize the validity of our marriage. You guys here in Canada married us so please give us a divorce because no one else will."

A Toronto judge will hear the case on Feb. 27 and 28 and decide whether the government's argument is valid, although the loser is bound to appeal any ruling.

The gay marriage surge was a boon for the tourist industry, which quickly offered wedding packages to U.S. couples.

Evan Wolfson, president of New-York-based gay rights group Freedom to Marry, said it would be "extreme, absurd and cruel" to now declare the Canadian marriages invalid.

Video: Meghan McCain on gay marriage, other issues (on this page)

"This will come as giant shock not only to the couples but to the businesses, employers, banks and others who deal with them so hopefully they're going to walk back this preposterous undermining of families," he told Reuters.

The issue could become a political problem for Harper, who said he had no intention of reopening the gay marriage file.

Nick Bala, a professor and family law expert at Queen's University, said the case underlined existing problems with the way gay marriage works in Canada.

"There are good reasons why Canadian family courts are only going to take jurisdiction over relationships that have a significant (link) to Canada," he told Reuters.

Foreign gays who only came to Canada to marry and then returned to seek a divorce could have major problems if child custody were an issue, and there was little logic in asking Canadian courts to make decisions about children living elsewhere, he said.

"There are good reasons for Canada to be a marriage haven for same-sex couples. It's not clear that it should be a divorce haven for same-sex couples," Bala said.

Reuters contributed to this report.

Source: http://www.msnbc.msn.com/id/45983012/ns/world_news-americas/

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