Copyright 2008 The New York Sun Tue, 02 Sep 2008 21:50:30 -0400 http://blogs.law.harvard.edu/tech/rss Harold Furchtgott-Roth :: Stories from The New York Sun http://www.nysun.com/authors/Harold+Furchtgott-Roth istoll@nysun.com (Ira Stoll) webmaster@nysun.com en-us HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/how-utility-stocks-became-risky/85070/ Wed, 3 Sep 2008 00:00:00 EST With senators McCain and Obama in a virtual dead heat in the presidential race, the direction of economic regulation over the next four years is a big question mark. What are investors to do? Can they still find low-risk investments in utility stocks, whose fate is not tied to usual ebbs and flows of the business cycle? This was the case for most of the 20th century: Cautious investors sought safety in utility stocks such as telephone and electricity companies, including AT&T and Consolidated... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/obama-could-stymie-foreign-investment/84686/ Wed, 27 Aug 2008 00:00:00 EST Foreign investment is a large and growing business in America, and it is integral to the health of New York City. Much, if not most, foreign investment passes through the city's banks, law firms, and accounting firms. While the dollar figures are immense, most of these foreign funds are channeled into passive investments and remarkably little is put into controlling interests in American corporations. This skewing of investment reflects the desire by foreigners to avoid government oversight... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/a-credible-economic-threat-to-russia/84237/ Wed, 20 Aug 2008 00:00:00 EST Before invading Georgia, Prime Minister Putin of Russia surely weighed the consequences. He likely assumed — correctly — that no country's military would intervene on behalf of Georgia. He likely assumed — correctly — that no country would take meaningful economic steps to punish Russia. Until economic retaliation is a credible threat, Mr. Putin will not stop short of his military objectives. Mr. Putin assumes that international banks will continue to issue lines of credit to Russian companies... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/opinion/the-r-word/83840/ Thu, 14 Aug 2008 00:00:00 EST The November election is just around the corner, and one of the great unknowns of this election cycle involves the health of the economy. Will the National Bureau for Economic Research, a research association of academic economists, pronounce that America is officially in a recession before Election Day? If and when that day comes, most Americans will assume two propositions: 1. calling a recession is a scientific matter devoid of politics; and 2. independent government officials make the call... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/is-congress-following-china-on-internet/83265/ Wed, 6 Aug 2008 00:00:00 EST The Olympic Games open this week, and more than a few journalists are indignant that those attending may not have full and unfettered access to the Internet. But more complete Internet access for visiting journalists would not mask a greater problem: Any government that can dictate the terms of using the World Wide Web, for good or ill, is too powerful. Before sanctimoniously condemning the government of China, or the governments of dozens of undemocratic countries around the world, however, we... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/how-cbs-lost-the-super-bowl-case/82873/ Wed, 30 Jul 2008 00:00:00 EST If you listen carefully, you might still hear the echo of Champagne flutes clinking at the CBS headquarters and broadcasting offices around America, after the 3rd U.S. Circuit Court of Appeals returned the $550,000 worth of indecency fines the network paid to the Federal Communications Commission as a result of Janet Jackson's "wardrobe malfunction" at the 2004 Super Bowl. While the outcome of CBS v. FCC seems like a win for free speech, it is really the opposite. In last week's decision, the... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/on-natural-resources-use-history-as-guide/82432/ Wed, 23 Jul 2008 00:00:00 EST While petroleum gets the headline attention, prices for practically all metals, minerals, and agricultural and other natural resources have reached record levels in recent months. For the first time in perhaps decades, those holding investment portfolios of natural resources over the past five years have netted exorbitant profits. Over the past few months, economists are increasingly asking whether we have entered a new economy where natural resources are king, and industrial countries such as... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/when-thinking-economy-think-exception/81993/ Wed, 16 Jul 2008 00:00:00 EST Most jokes about economists end with the economist making an unwitting and all too truthful statement that leads to his demise, and thus the economics profession feels Senator Gramm's pain this week. But few politicians want to address the substance of Mr. Gramm's remarks: whether America is in a recession. For the record, government data show that the economy as a whole expanded in real, inflation-adjusted terms in the first quarter of the year. Indeed, it was the 26th consecutive quarter of... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/do-rotten-tomatoes-merit-bar-codes-on-foods/81503/ Wed, 9 Jul 2008 00:00:00 EST The Center for Science in the Public Interest and the Consumer Federation of America want bar codes placed on foods to make it easier for the Food and Drug Administration to better detect and control instances of food poisoning. But while expensive government programs are easy to prescribe, it would be the American consumer and small business owner who would be forced to foot the bill. Concerned Americans should ask three simple questions: Who would pay for the new system when it was working... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/july-4th-the-holiday-of-american-business/81131/ Wed, 2 Jul 2008 00:00:00 EST What is the most important American holiday for business? Some would argue it is the annual Christmas crescendo or the Mother's Day construction, but the purest form of holiday for American business is the Fourth of July. The holiday marks the anniversary of the Declaration of Independence, a document that trumpets neither nationalism nor conflict. Rather, it is a tribute to the individual and all that an individual pursues, including, specifically, business interests. The natural enemies of... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/ending-oil-speculation-will-not-help-consumers/80657/ Wed, 25 Jun 2008 00:00:00 EST Much has been said recently about the evils of market speculation, and in the coming weeks Americans will hear a great deal about why Washington must protect against it. Senator Obama vows to curb oil-market speculation, while Senator McCain, rather defend buyers and sellers from government interference, accuses Mr. Obama of policy imitation. Governor Corzine, who had a successful career on Wall Street and now supports Mr. Obama, recently claimed that "everyone believes there is too much... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/after-74-years-fcc-starting-to-flex-its-muscles/80206/ Wed, 18 Jun 2008 00:00:00 EST Tomorrow marks the 74th anniversary of the Communications Act of 1934, the legal framework for federal regulation of all manner of communications through the Federal Communications Commission. After 74 years, most Americans have more yesterdays than tomorrows. Does the same hold for the FCC? By many accounts, the FCC is just beginning to flex its muscles. During its first 60 years, the FCC was one of the more obscure federal agencies. In recent years, however, editorial pages — some with... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/government-wastes-energy-on-energy-prices/79761/ Wed, 11 Jun 2008 00:00:00 EST The historic high prices for gas, gold, and a wide range of raw materials are only partially the fault of the government, and that only to the extent that a relatively weak dollar has made a bad situation worse. In fact, natural resource prices are high in all currencies, not just dollars. A stronger dollar would do a world of good, but it wouldn't bring back $2-a-gallon gasoline. So, while government may not be the cause of high energy and resource prices, can it do anything to reduce those... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/government-reorganization-of-china-telecom-is-not/79288/ Wed, 4 Jun 2008 00:00:00 EST China's second-largest mobile service provider, China Unicom, recently said it would acquire fixed-line operator China Netcom with a share swap deal valued at more than $56 billion, part of a much larger, government-organized restructuring of the Chinese telecommunications industry, which has a combined market capitalization of several hundred billion dollars. China is hardly a country in need of a telecommunications overhaul. Economic growth is consistently more than 10% a year, and the number... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/selling-oil-reserve-a-bad-idea/78859/ Thu, 29 May 2008 00:00:00 EST The Strategic Petroleum Reserve, an emergency petroleum store maintained by the Department of Energy, contains approximately 700 million barrels of crude oil, for which America paid a mere $17 billion for the oil and $5 billion for facilities. Much of the oil was purchased years ago, and today it is worth about $90 billion. Financially, the reserve has been one of the federal government's better investments. Recently, Congress voted to stop filling the reserve with expensive oil. It is tempting... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/newspaper-ownership-and-the-fcc/76726/ Wed, 21 May 2008 00:00:00 EST The Senate recently took the unusual step of passing a resolution of disapproval of a Federal Communications Commission rule. The lawmakers apparently want to ensure that the federal government maintains a heavy hand in determining who owns a newspaper. Investors and all Americans should take notice. The FCC's rule slightly weakened a 1970s regulation prohibiting ownership of a newspaper by a local broadcast station. In essence, the new rule would allow, in a few instances, combinations of... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/on-property-taxes-new-york-should-stay-the-course/76375/ Wed, 14 May 2008 00:00:00 EST New York City is doing what few municipalities dare: cutting property taxes. Unfortunately, these cuts are not permanent. Mayor Bloomberg recently announced plans for a $400 property tax rebate and a 7% cut in the property tax rate in 2009, but taxes are scheduled to rise after next year as the city government prepares to meet subsequent expected budget shortfalls. Like every other municipality, New York City plans its budget years in advance. Relative to most other cities, New York has many... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/racing-to-lay-claim-to-sprint/75941/ Wed, 7 May 2008 00:00:00 EST Sprint is scheduled to report quarterly earnings next Monday, but market analysts are more intrigued by what won't be discussed: a major structural change thought to be brewing at the telecommunications company. In recent weeks, speculation has centered on three scenarios: a new venture being funded by other companies to develop the WiMAX spectrum of Sprint and Clearwire; the sale of parts of the company, particularly those associated with Nextel, or the sale of the entire company to a third... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/airline-mergers-and-competition/75600/ Wed, 30 Apr 2008 00:00:00 EST Although America has dozens of regional and local airlines, only seven have a nationwide presence. Delta and Northwest have announced a merger, and United is actively courting another airline, recently rumored to be US Airways. If these proposed mergers were approved, would it lead to a substantial lessening of competition in commercial aviation? The answer almost certainly is: "No." Even with five nationwide carriers, the opportunities to raise airfares would be illusory. The mergers are not... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/regulating-sovereign-wealth-funds/75188/ Wed, 23 Apr 2008 00:00:00 EST Earlier this week, the Treasury Department issued a proposal underlining rules for investments of sovereign wealth funds in America. The new rules, under the Foreign Investment and National Security Act of 2007 and the Committee on Foreign Investment in the United States, treat the funds as any other foreign government-controlled or influenced investments have been treated for decades. So, why is there so much fuss over these proposed Treasury rules? The answer is a poignant reminder of how far... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/taxes-force-americans-to-pay-many-ways/74404/ Wed, 9 Apr 2008 00:00:00 EST Those who find themselves muttering about income taxes this week will not be alone. Although perhaps one in three Americans have no tax liability, most have taxes to pay anyway: More than 140 million tax returns, representing nearly 300 million Americans, will be filed this year. The miracle is not that Americans will collectively pay more than $1 trillion in personal income taxes this year, but that we will do so with seeming equanimity. Unlike many other countries, America is a land of... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/muddy-waters-surround-clear-channel/74020/ Wed, 2 Apr 2008 00:00:00 EST Not long ago, broadcast holding company Clear Channel, private equity firms Bain Capital and Thomas Lee, and banks such as Citigroup, Morgan Stanley, Deutsche Bank, Royal Bank of Scotland, and Wachovia resembled Midas: What they touched turned to gold. They worked together; they made money together. Clear Channel was to be privately acquired by Bain and Thomas Lee this week. The deal has not closed, and now the matter rests with the courts. So, instead of board rooms, Clear Channel and its... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/increased-bank-regulation-isnt-likely/73645/ Wed, 26 Mar 2008 00:00:00 EST The talk of New York and Washington this week is whether investment banks are in for increased federal regulation as a quid pro quo for the Federal Reserve lending them funds via the discount rate window. Don't hold your breath. Last week, the Fed generously extended special borrowing privileges previously reserved for commercial banks to a broad range of financial institutions. Some of the largest financial institutions, such as Goldman Sachs, quickly availed themselves of this additional... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/who-controls-the-federal-reserve/73207/ Wed, 19 Mar 2008 00:00:00 EST Rescuing Bear Stearns, offering mortgage-backed securities swaps, holding closed-door meetings with JPMorgan Chase: This is the face of the new Federal Reserve, the lone ranger attempting to solve financial crises when others turn in fright. So far, few have dared ask a troubling question: Who controls the Fed? The immediate and long-considered answer is that Chairman Ben Bernanke controls the Fed. But to whom does Mr. Bernanke answer? He faces little plausible resistance from the White House... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/sovereign-wealth-funds-need-not-be-feared/72765/ Wed, 12 Mar 2008 00:00:00 EST At a time that Wall Street is in the grip of a credit crisis, many central banks around the world have substantial dollar holdings that they want to invest in America. It sounds like a win-win situation, yet our politicians are saying no. Take China, whose foreign exchange reserves, much of them in dollars, were recently estimated at $1.6 trillion. Or Japan, sitting on $1 trillion in foreign exchange reserves. The financial assets of these and other governments are growing more rapidly than the... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/new-protectionist-doctrine/72313/ Wed, 5 Mar 2008 00:00:00 EST Yesterday's primaries in Ohio and elsewhere were the first in which America's weakening economy and what can be done to improve it were the focus. Sadly, both Democratic presidential candidates, senators Clinton of New York and Obama of Illinois, could think of little more than to bash free trade. These neo-protectionists call for "renegotiating" the North American Free Trade Agreement, ignoring the sensibilities of hundreds of millions of Americans whose lives have improved because of free... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/opinion/mccain-stood-up/71722/ Fri, 22 Feb 2008 00:00:00 EST Yesterday's attack by the New York Times on Senator McCain, the presumptive Republican presidential candidate, missed the mark. Rather than attacking Mr. McCain for having a supposed relationship with lobbyist Vicki Iseman, instead the Times should have focused on his valor in insisting on the accountability of government agencies and in standing up for the First Amendment. The Times published a long article insinuating that it was unnatural, even sinister, for Mr. McCain to write two letters... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/house-should-pass-fisa-reform/71505/ Wed, 20 Feb 2008 00:00:00 EST Next week, the House of Representatives will consider updates to the Foreign Intelligence Surveillance Act. One political distraction to the bill's passage is the so-called retroactive immunity offered to telecommunications companies, such as AT&T and Verizon, that followed legal guidelines in assisting the federal government with intelligence gathering in the past. It is not obvious why protecting private parties from lawsuits is a major issue in a foreign intelligence bill. Here is the... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/ethanol-is-not-the-answer/71253/ Wed, 13 Feb 2008 00:00:00 EST Most government officials have a soft spot in their hearts for the historically important agricultural sector and companies such as Archer Daniels Midland (ADM) and Bunge Ltd. (BG). It turns out, however, that these companies could be doing a lot better if government officials had a better understanding of science and economics. Consider ethanol, an alternative biofuel trumpeted by, among others, Vice President Gore. Until recently, it was the fuel of choice for the progressive cognoscenti... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/increasing-regulation-is-wrong-subprime-move/70928/ Thu, 7 Feb 2008 00:00:00 EST Troubles in the financial and housing sectors have led to trillion-dollar losses in wealth and economic growth. It is a disaster for everyone except those in Washington who covet an opportunity to expand regulation. For a bird's-eye view of the proponents of increased Washington regulation, watch this morning's Senate Banking Committee hearing on federal regulation of housing financing. Senator Dodd will hold the gavel on proposals to reform FNMA, Freddie MAC, and the Federal Home Loan Banks... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/monetary-policy-go-it-alone/70511/ Thu, 31 Jan 2008 00:00:00 EST Imagine the long faces in Brussels this morning after the American government yesterday announced the economy slowed in the fourth quarter and the Federal Reserve board decided to reduce overnight discount rates by 50 basis points — without coordinating with the European Union in Brussels or the European Central Bank in Frankfurt or anyone anywhere else. International coordination is an art in which someone feels left out. Consider the events in London two days ago. The leaders of Germany... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/stimulus-talk-raises-groans-around-the-globe/70036/ Wed, 23 Jan 2008 00:00:00 EST It may already be difficult to remember, but just a week ago the American economy was seen as slowing, not on a cataclysmic course toward a recession, and the Federal Reserve chairman and his colleagues were not expected to be contemplating a rate cut of 75 basis points. What happened? The international slide that began less than a week ago cannot be attributed to unexpected financial news. Of course, there were continued reports of weakness in American housing markets and financial... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/great-american-ponzi-scheme/69660/ Thu, 17 Jan 2008 00:00:00 EST Moody's Investors Service voices concerns about the long-term creditworthiness of federal securities, citing exploding health care and Social Security obligations; Senator Clinton proposes a stimulus package that would expand entitlements to low-income Americans; Citigroup has to go abroad to find capital to cover losses that arose because of improper risk management: All these things are linked. Health care and Social Security programs have added up to a clever Ponzi scheme ever since the New... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/tilting-at-windmills-2008-01-09/69208/ Wed, 9 Jan 2008 00:00:00 EST The Manhattan skyline has many landmarks, but no recognizable windmills. That could change, however, as the Department of Energy's recently released "Annual Energy Outlook" suggests that wind power and windmills may become an increasing part of the American landscape. Are there opportunities for individual investors? The primary manufacturers of wind turbines sold in America include General Electric, Siemens, Vestas of Denmark, and Mitsubishi. Several smaller American companies, primarily... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/senate-should-slow-the-house-energy-bill/67906/ Wed, 12 Dec 2007 00:00:00 EST The House recently passed a bill that would rewrite federal energy law. The big winners would be businesses located abroad. The losers? Businesses — and consumers — stuck in America. The loudest chortles are almost certainly coming from boardrooms of automobile manufacturers located anywhere outside America, such as Toyota and Honda. Congress is permitting sales of automobiles with a fleet average of 35 mph — those resembling the current offerings of some foreign manufacturers — while... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/transparency-in-sovereign-wealth-funds/67546/ Wed, 5 Dec 2007 00:00:00 EST Senator Clinton and the Wall Street Journal editorial board agree on at least one issue: Our government should insist that sovereign wealth funds be more transparent. But their well-intentioned prescriptions do not translate into good results in either finance or regulation. Sovereign wealth funds are owned and administered by sovereign governments, not private individuals. The political bent of these governments range from the state of Alaska to the government of Iran. By far the largest... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/president-disciplines-congress-on-amt/67130/ Wed, 28 Nov 2007 00:00:00 EST Just 34 more days are left in the year, and Congress has yet to decide Americans' tax bills for 2007. Yet this week Congress is missing in action. Americans make better decisions if they know how much taxes they owe. But 300 million Americans — some now deceased with estates waiting to pay taxes — have made decisions for 331 days this year based on sketchy ideas about governing tax law. Simple common sense would suggest that tax law should be purely prospective, but on Capitol Hill, the 2007... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/at-t-beware-reaching-too-high-for-echostar/66856/ Wed, 21 Nov 2007 00:00:00 EST Shares in EchoStar shot into higher orbit earlier this week on rumors that AT&T might try to acquire the satellite video distribution company. Part of the recent speculation in investment analysts' reports focuses on two factors: the need of AT&T to supplement its Internet and video offerings, and the likely end of a merger-tolerant Justice Department if the Democrats capture the White House next year. Instead, the real focus should be on the future of satellite television distribution and the... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/paulson-may-have-overstepped-on-sivs/66446/ Wed, 14 Nov 2007 00:00:00 EST An agreement between the three largest American banks to create a $75 billion "super fund" for troubled structured investment vehicles raises important questions about the role of government. Several weeks ago, the banks — Citigroup, Bank of America, and JPMorgan Chase — announced the plan to create this fund and negotiated the details among themselves, though the real impetus for the idea came from the secretary of the Treasury, Henry Paulson. The basic purpose of the proposed super fund is to... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/indemnification-could-send-investors-abroad/65990/ Wed, 7 Nov 2007 00:00:00 EST Telecommunications companies will watch anxiously as Senator Leahy's Judiciary Committee marks up revisions to the Foreign Intelligence Security Act. If you notice the word "indemnification" during the hearing, scheduled for tomorrow, do not be surprised to hear a collective groan from investors. FISA is a law designed to enable our federal government to track down foreign wrongdoers who would harm Americans and destroy our government. But FISA in court proceedings today is being turned on its... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/halloween-treaty-law-of-the-seas/65559/ Wed, 31 Oct 2007 00:00:00 EST Today, the Senate will consider a Halloween treat, the United Nations Convention on the Law of the Sea. More than 150 nations have joined the convention, which was signed by President Clinton in 1994, although the Senate has yet to ratify it. Although President Bush and his administration urge ratification, the Senate would do well to reflect before accepting treats — or treaties — from the United Nations. Of course, parts of the Law of the Sea Treaty, appropriately titled LOST, make sense... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/fisa-is-the-governments-responsibility/65186/ Wed, 24 Oct 2007 00:00:00 EST As Congress debates changes to the Foreign Intelligence Surveillance Act, it would do well to ensure that no harm is done. Any change of law should reaffirm that the federal government alone is responsible for its actions under FISA. Private corporations, including even the largest of corporations, such as AT&T and Verizon, are not liable for the decisions of the federal government. The threat to America from foreign intelligence is real. Those who would harm us gather blueprints of our... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/paradox-of-citgo-an-arm-of-venezuela/64691/ Wed, 17 Oct 2007 00:00:00 EST Last weekend, President Chavez of Venezuela visited Fidel Castro. The two men are much in sync, and Mr. Castro no doubt approves of Mr. Chavez's use of a national oil company, Petrσleos de Venezuela, or PDVSA, to expropriate the property of American companies, including Exxon Mobil and ConocoPhillips, and to rewrite the contracts of other oil companies such as Chevron. The vulnerability of American businesses in Venezuela stands in contrast to the security that Venezuelan businesses enjoy in... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/why-sprint-needs-to-change-pace/64315/ Wed, 10 Oct 2007 00:00:00 EST CEO Gary Forsee has left Sprint, and the company's new management faces a daunting challenge. The new Sprint must have a clear vision of where it is going, and the past is not a good prologue. During the 1990s, Sprint had the most advanced wireless network in the country, a formidable Internet backbone, pockets of profitable local exchanges, and the no. 3 long-distance service. Despite its enormous assets and capabilities, however, Sprint was timid — a wallflower pining to be bought by a larger... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/what-the-3com-deal-means-for-the-industry/63884/ Wed, 3 Oct 2007 00:00:00 EST While detailed terms of 3Com's plans to go private have yet to be released, it has not stopped widespread speculation about what the deal, under which the new owners will be the Boston-based financial institution Bain Capital and the Chinese telecommunications manufacturing company Huawei Technologies, means for the industry. Some of that speculation has been inaccurate. First, a little background. 3Com, a telecommunications network equipment manufacturing company, was a high-flying Silicon... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/foreign-investment-keeps-washington-busy/63408/ Wed, 26 Sep 2007 00:00:00 EST Foreign government-controlled investors have been busy with brand-name investments in recent weeks: Borse Dubai, controlled by the Dubai government, and Qatar Investment Authority, another government-controlled entity, acquired nearly 50% of the London Stock Exchange, the same exchange that spurned an acquisition by Nasdaq at a lower price last year. Also, the Abu Dhabi government acquired 7.5% of the Carlyle Group. The acquisition garnering the most attention, though, was Borse Dubai's recent... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/spectrum-auction-problems/62777/ Mon, 17 Sep 2007 00:00:00 EST In what some are calling the "auction of the century," the Federal Communications Commission in January will auction off more than 60 MHz of spectrum in the last undeveloped band of spectrum for mobile application, the 700 MHz band. By all accounts, this band has some of the best physical characteristics of all spectrum, with signals that can travel tens of miles, curve around mountains, and penetrate buildings. Because it can be used for all new mobile technologies as well as services that... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/this-september-11-terrorists-attack-our-computers/62353/ Tue, 11 Sep 2007 00:00:00 EST The last Tuesday, September 11, dawned bright on American businesses. Of course, there were problems, including a weak economy and a falling stock market. Those problems are still with us, but how times have changed. It used to be that businesses relied primarily on our government to deal with national security and external threats. On the last Tuesday, September 11, foreign terrorists bypassed the government and attacked individuals and American businesses using the facilities of American... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/iphone-and-the-technology-thieves/61318/ Mon, 27 Aug 2007 00:00:00 EST The story begins with a familiar plot: With extraordinary expense and effort, Company A develops a wonderful new product filled with innovative intellectual property. After reviewing a wide range of options, Company A contracts exclusively with Company B to distribute the product. Then, a nemesis appears to thwart the contract and steal the intellectual property. Does the tale have a happy or a sad ending? From books to pharmaceuticals, the story line is the same, with different innovators. J.K... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/chinese-stock-market-defies-gravity/60863/ Mon, 20 Aug 2007 00:00:00 EST On July 19, little more than a month ago, the Dow Jones Industrial Average closed above 14,000. On Friday, it closed at 13,079, down more than 6.5% from the peak. Major equity indexes around the world have followed a similar downward pattern, with one major exception: China. The Shanghai Composite Index is up 19% since July 19, while the Shenzhen Composite Index is up 19.9%. Both indexes have given ground in the past few days after reaching record highs earlier last week. They may continue to...