arsh007
01-27 10:50 PM
Here is a link to a Video report from CNN's program Lou Dobbs tonight regarding USCIS incorrect approval of H1-B petitions beyond the 65,000 yearly limit.
(http://www.forthecause.us/ftc-video-CNN-VisaCapsIgnored_070126.wmv)
http://www.forthecause.us/ftc-video-CNN-VisaCapsIgnored_070126.wmv
(http://www.forthecause.us/ftc-video-CNN-VisaCapsIgnored_070126.wmv)
http://www.forthecause.us/ftc-video-CNN-VisaCapsIgnored_070126.wmv
wallpaper Selena Gomez and Justin Bieber
Macaca
10-02 11:02 AM
As China Opens, U.S. Lobbyists Get Ready to Move In (http://www.washingtonpost.com/wp-dyn/content/article/2007/10/01/AR2007100101672.html?hpid=sec-business) By Ariana Eunjung Cha | Washington Post Foreign Service, October 2, 2007
BEIJING -- It's almost 8 a.m., and former U.S. commerce secretary Donald L. Evans and his team are standing in front of the St. Regis Hotel, preparing for their day of meetings with Chinese finance officials.
Small but meaningful gifts in Tiffany's signature baby-blue boxes? Check. Briefing books with the pronunciation of everyone's names? Check. Black Audi A6s to whisk the group to the meetings? Check.
Evans was in town representing the Financial Services Forum, which is made up of chief executives of 20 multinational banks. His goal was to convince Chinese regulators that opening their financial sector to more foreign investment would be good for China's economy.
Armies of lobbyists are descending on the Chinese capital in anticipation of the 17th Communist Party Congress beginning in mid-October. The gathering will choose a new generation of leaders, setting the political agenda for the next five years.
But the dark-suited Western lobbyists are an odd spectacle given that in China, policy and legislative decisions are still made behind closed doors. Lobbying exists in a gray area; because there are no laws specifically pertaining to it, it isn't even supposed to exist.
Nevertheless, some of Washington's marquee lobbying firms -- including Jones Day, Hogan & Hartson, DLA Piper and Akin Gump Strauss Hauer & Feld -- have set up offices in China. Officially, they are just investment advisory and communications firms. Chinese companies mostly work through government-affiliated industry associations, although some have also hired Western-style lobbying firms.
In June, foreign companies successfully lobbied Chinese officials to remove conditions on hiring temporary workers in a new labor law that they said would make it prohibitively expensive to do business in China. Likewise in August, they were able persuade China to remove some language in early drafts of the anti-monopoly law that seemed to discriminate against foreign companies, according to Chinese and foreign academics.
The Chinese government has said it took input from domestic and foreign interests into account but has not been specific.
Foreign companies are interested in what happens in China, as its economy is becoming the world's third-largest as well as a capitalist instead of planned one. There's concern that the legal framework for business that China's legislators are writing today could affect the fate of multinational businesses for decades.
Evans said that the degree to which Chinese officials are interested in hearing foreign perspectives on business issues has increased dramatically. In the past, he said, he would go into government meetings and recite a set of bullet points, and the meeting would end. These days, he said, there's real discussion and debate.
"They are very proactive in wanting to engage and share with the business community," Evans said.
Scott Kennedy, director of the Research Center for Chinese Politics and Business at Indiana University and author of "The Business of Lobbying in China," said that as recently as a few years ago foreign companies would grumble that they heard about new policies only after they were announced.
"That is increasingly no longer the case. Today, even if they don't agree with the final result, they know it's on the horizon," Kennedy said.
But China's laws have been slow to respond to the influx of lobbyists seeking to take advantage of the closer ties. Zhao Kejin, an associate professor at Shanghai's Fudan University who studies government-business relations and has written a book on lobbying in China, argues that because lobbyists do not need to register or file disclosure forms, the system is vulnerable to abuse.
"There is lots of lobbying money flowing to individual officials' pockets," Zhao said. In addition to straight-up bribery, some lobbying firms keep friends of high-placed officials on the payroll or pay for officials to take luxury "training" trips abroad.
In 2004, Lucent Technologies fired four executives who were part of its Chinese operations for violating the U.S. Foreign Corrupt Practices Act, which prohibits bribing foreign government officials and politicians. Last November, a U.S. software maker, Fidelity National Information Services, was accused of paying for luxury vacations for Chinese banking officials and their families in places such as Rome and Las Vegas. Fidelity has denied the charges.
Lobbying is not only less of an institution in China than it is in the United States, but the people being lobbied are different.
For instance, Murray King, head of the Shanghai office of APCO Worldwide, one of the oldest government relations firms operating in China, said that Chinese academics are among the key players that companies should reach out to. The most important members of that group are those who work with the think tanks affiliated with various state ministries, because they play an important role in the drafting of legislation.
Another crucial part of high-profile lobbying efforts are "guanxi brokers," well-connected individuals who can give introductions to important officials, or "rainmakers," people who are so famous that many Chinese officials might be happy to meet and shake hands.
"Because China is a country that respects authority, former politicians of the United States, when they come to China, can always play a very important role," said Steven Dong, a Tsinghua University public relations professor who studies the reputations of corporations.
A former U.S. official will almost always be greeted by a Chinese official of the same rank, Dong said.
Former officials with star power in China include Henry Kissinger, probably the most sought-after because of the role he played in establishing diplomatic relations with the Communist Party during the Nixon administration. Former Federal Communications Commission chairman Reed Hundt, who routinely visits China on behalf of Silicon Valley companies to talk about opening up China's Internet and telecommunications sector, is also a regular in the halls of Chinese ministries. Gary Locke, a former governor of Washington whose consulting firm represents Microsoft and Starbucks, is celebrated for being the first Chinese American governor and is so well known that school girls run up to him to take his picture.
Evans, who was commerce secretary from 2001 to 2004, has been working for the Financial Services Forum since 2005. This was his second trip to China on behalf of the group.
Evans was received by the Chinese government this month with all the pomp and circumstance of a state visit.
His schedule, which included all key financial ministries and regulators, was almost identical to that of Treasury Secretary Henry M. Paulson Jr. during his visit in July. Evans even had a private diner with Vice Premier Wu Yi.
There was lobbying on both sides.
Jiang Jianqing, chairman of the state-owned Industrial and Commercial Bank of China, a rank similar to that of minister, pummeled Evans with questions about the subprime lending crisis and trade protectionism in Congress. ICBC has recently been ranked the second- or third-largest bank in the world by market capitalization.
Evans said the Chinese must make sure that U.S. legislators understand they are open to foreign investment. He said it's important for the Chinese to make sure the U.S. government understands "your view as an important trader, to make sure they understand your commitment to moving your economy toward an ultimate market economy."
The total foreign ownership in a Chinese bank cannot exceed 25 percent. But even as Evans began to lay out his case for why China should raise or do away with foreign ownership caps for banking, securities and insurance firms, Jiang took the opportunity to point out his frustration that his bank's application to open a single branch in the United States has not been approved, while U.S. banks, including some that Evans represents, already have significant operations in China.
Evans said he'd be happy to look into the holdup.
Near the end of the one-hour meeting, the two turned to a less-tense topic: the development of China's countryside. Evans talked about his visits to western China, where he met two blind brothers with whom he has kept in touch, and how much their lives had changed over the years. Jiang said he, too, was concerned about bridging the gap between the rich and the poor in China.
The two men smiled and shook hands. That was considered progress.
BEIJING -- It's almost 8 a.m., and former U.S. commerce secretary Donald L. Evans and his team are standing in front of the St. Regis Hotel, preparing for their day of meetings with Chinese finance officials.
Small but meaningful gifts in Tiffany's signature baby-blue boxes? Check. Briefing books with the pronunciation of everyone's names? Check. Black Audi A6s to whisk the group to the meetings? Check.
Evans was in town representing the Financial Services Forum, which is made up of chief executives of 20 multinational banks. His goal was to convince Chinese regulators that opening their financial sector to more foreign investment would be good for China's economy.
Armies of lobbyists are descending on the Chinese capital in anticipation of the 17th Communist Party Congress beginning in mid-October. The gathering will choose a new generation of leaders, setting the political agenda for the next five years.
But the dark-suited Western lobbyists are an odd spectacle given that in China, policy and legislative decisions are still made behind closed doors. Lobbying exists in a gray area; because there are no laws specifically pertaining to it, it isn't even supposed to exist.
Nevertheless, some of Washington's marquee lobbying firms -- including Jones Day, Hogan & Hartson, DLA Piper and Akin Gump Strauss Hauer & Feld -- have set up offices in China. Officially, they are just investment advisory and communications firms. Chinese companies mostly work through government-affiliated industry associations, although some have also hired Western-style lobbying firms.
In June, foreign companies successfully lobbied Chinese officials to remove conditions on hiring temporary workers in a new labor law that they said would make it prohibitively expensive to do business in China. Likewise in August, they were able persuade China to remove some language in early drafts of the anti-monopoly law that seemed to discriminate against foreign companies, according to Chinese and foreign academics.
The Chinese government has said it took input from domestic and foreign interests into account but has not been specific.
Foreign companies are interested in what happens in China, as its economy is becoming the world's third-largest as well as a capitalist instead of planned one. There's concern that the legal framework for business that China's legislators are writing today could affect the fate of multinational businesses for decades.
Evans said that the degree to which Chinese officials are interested in hearing foreign perspectives on business issues has increased dramatically. In the past, he said, he would go into government meetings and recite a set of bullet points, and the meeting would end. These days, he said, there's real discussion and debate.
"They are very proactive in wanting to engage and share with the business community," Evans said.
Scott Kennedy, director of the Research Center for Chinese Politics and Business at Indiana University and author of "The Business of Lobbying in China," said that as recently as a few years ago foreign companies would grumble that they heard about new policies only after they were announced.
"That is increasingly no longer the case. Today, even if they don't agree with the final result, they know it's on the horizon," Kennedy said.
But China's laws have been slow to respond to the influx of lobbyists seeking to take advantage of the closer ties. Zhao Kejin, an associate professor at Shanghai's Fudan University who studies government-business relations and has written a book on lobbying in China, argues that because lobbyists do not need to register or file disclosure forms, the system is vulnerable to abuse.
"There is lots of lobbying money flowing to individual officials' pockets," Zhao said. In addition to straight-up bribery, some lobbying firms keep friends of high-placed officials on the payroll or pay for officials to take luxury "training" trips abroad.
In 2004, Lucent Technologies fired four executives who were part of its Chinese operations for violating the U.S. Foreign Corrupt Practices Act, which prohibits bribing foreign government officials and politicians. Last November, a U.S. software maker, Fidelity National Information Services, was accused of paying for luxury vacations for Chinese banking officials and their families in places such as Rome and Las Vegas. Fidelity has denied the charges.
Lobbying is not only less of an institution in China than it is in the United States, but the people being lobbied are different.
For instance, Murray King, head of the Shanghai office of APCO Worldwide, one of the oldest government relations firms operating in China, said that Chinese academics are among the key players that companies should reach out to. The most important members of that group are those who work with the think tanks affiliated with various state ministries, because they play an important role in the drafting of legislation.
Another crucial part of high-profile lobbying efforts are "guanxi brokers," well-connected individuals who can give introductions to important officials, or "rainmakers," people who are so famous that many Chinese officials might be happy to meet and shake hands.
"Because China is a country that respects authority, former politicians of the United States, when they come to China, can always play a very important role," said Steven Dong, a Tsinghua University public relations professor who studies the reputations of corporations.
A former U.S. official will almost always be greeted by a Chinese official of the same rank, Dong said.
Former officials with star power in China include Henry Kissinger, probably the most sought-after because of the role he played in establishing diplomatic relations with the Communist Party during the Nixon administration. Former Federal Communications Commission chairman Reed Hundt, who routinely visits China on behalf of Silicon Valley companies to talk about opening up China's Internet and telecommunications sector, is also a regular in the halls of Chinese ministries. Gary Locke, a former governor of Washington whose consulting firm represents Microsoft and Starbucks, is celebrated for being the first Chinese American governor and is so well known that school girls run up to him to take his picture.
Evans, who was commerce secretary from 2001 to 2004, has been working for the Financial Services Forum since 2005. This was his second trip to China on behalf of the group.
Evans was received by the Chinese government this month with all the pomp and circumstance of a state visit.
His schedule, which included all key financial ministries and regulators, was almost identical to that of Treasury Secretary Henry M. Paulson Jr. during his visit in July. Evans even had a private diner with Vice Premier Wu Yi.
There was lobbying on both sides.
Jiang Jianqing, chairman of the state-owned Industrial and Commercial Bank of China, a rank similar to that of minister, pummeled Evans with questions about the subprime lending crisis and trade protectionism in Congress. ICBC has recently been ranked the second- or third-largest bank in the world by market capitalization.
Evans said the Chinese must make sure that U.S. legislators understand they are open to foreign investment. He said it's important for the Chinese to make sure the U.S. government understands "your view as an important trader, to make sure they understand your commitment to moving your economy toward an ultimate market economy."
The total foreign ownership in a Chinese bank cannot exceed 25 percent. But even as Evans began to lay out his case for why China should raise or do away with foreign ownership caps for banking, securities and insurance firms, Jiang took the opportunity to point out his frustration that his bank's application to open a single branch in the United States has not been approved, while U.S. banks, including some that Evans represents, already have significant operations in China.
Evans said he'd be happy to look into the holdup.
Near the end of the one-hour meeting, the two turned to a less-tense topic: the development of China's countryside. Evans talked about his visits to western China, where he met two blind brothers with whom he has kept in touch, and how much their lives had changed over the years. Jiang said he, too, was concerned about bridging the gap between the rich and the poor in China.
The two men smiled and shook hands. That was considered progress.
xyzgc
12-26 01:04 PM
India is already at war with the terrorist state of Pakistan! Just that we never realize it and try to talk about peace all the time...you can see what Pakis have done to curb terrorism! Are the peace talks working? Did they ever work?
Mark my words, there are going to many more attacks in the future, disrupting Indian business and economy...killing innocent civilians...is that anything short of a war?
If India leaders don't take any concrete steps to put a lid on this, they are the greatest fools on this planet.
Mark my words, there are going to many more attacks in the future, disrupting Indian business and economy...killing innocent civilians...is that anything short of a war?
If India leaders don't take any concrete steps to put a lid on this, they are the greatest fools on this planet.
2011 Selena Gomez and Justin Bieber
kart2007
05-15 10:11 AM
Its sad but true that Indian companies liek Infosys and TCS are in fact abusing the VISA system. I know a lot of my Indian friends who have recently come from India and are working ata really paltry salary.
Moreover I think L1 is worse as there are no wage limits for L1 as opposed to H1 (I may be wrong).
Its sad that thing is happening, but its true.
Moreover I think L1 is worse as there are no wage limits for L1 as opposed to H1 (I may be wrong).
Its sad that thing is happening, but its true.
more...
rajuram
07-13 02:35 PM
Lets not worry too much about the contents of the letter. The purpose is getting their attention and also to show how many people are affected. EB3s please write this letter, ask your friends, family etc...
Also send send a copy to congress woman The Honorable Zoe Lofgren (Chairwoman
Subcommittee on Immigration, Citizenship, Refugees, Border Security
and International Law, House Committee on the Judiciary,517 Cannon House Office Building, Washington, DC 20515)
Also send send a copy to congress woman The Honorable Zoe Lofgren (Chairwoman
Subcommittee on Immigration, Citizenship, Refugees, Border Security
and International Law, House Committee on the Judiciary,517 Cannon House Office Building, Washington, DC 20515)
meridiani.planum
08-06 12:21 PM
ha ha ha cannot stop replying for me the guy going up is EB2 and the guy going down is EB3, unfortunately im going down...... :p
all until the one going down hits a trampoline and the one going up hits a ceiling. Then they reverse course. The trampoline and ceiling are the visa bulletins:
http://travel.state.gov/visa/frvi/bulletin/bulletin_3897.html
(Jan 2008: EB2India 2000, EB3India2001)
http://travel.state.gov/visa/frvi/bulletin/bulletin_3953.html
(Mar 2008: EB2India U, EB3India 2001)
http://travel.state.gov/visa/frvi/bulletin/bulletin_4205.html
(May 2008: EB2India 2004, EB3India2001)
Dont lose heart EB3 guys, the DOS/USCIS have no idea how to move the visa bulletins. what looks good now, may not look good next month...
all until the one going down hits a trampoline and the one going up hits a ceiling. Then they reverse course. The trampoline and ceiling are the visa bulletins:
http://travel.state.gov/visa/frvi/bulletin/bulletin_3897.html
(Jan 2008: EB2India 2000, EB3India2001)
http://travel.state.gov/visa/frvi/bulletin/bulletin_3953.html
(Mar 2008: EB2India U, EB3India 2001)
http://travel.state.gov/visa/frvi/bulletin/bulletin_4205.html
(May 2008: EB2India 2004, EB3India2001)
Dont lose heart EB3 guys, the DOS/USCIS have no idea how to move the visa bulletins. what looks good now, may not look good next month...
more...
puddonhead
06-05 07:47 PM
>> US does not produce any consumer goods, its all China..if you don't produce you don't sell and if you don't sell you don't make an income, and if you don't make an income you don't pay taxes...plain and simple. So, what do we do, Borrow and spend.. but remember, the interest obligations will grow to suck the dollars away from goods and services that it purchases. (Folks are in China now )
I believe this is oversimplified. You are completely ignoring the value of knowledge properties and innovation.
Lets take the example of Boeing. 20 years down the line - it may decide that manufacturing may make more sense in China and relocate its factory. However, my belief is that it will be very difficult for Boeing to relocate all of its knowledge workers. The low levels ones are easy to relocate. But the key innovators will continue coming from the US education system. The next generation of ceramic or alloy materials to build components will be invented in US 90% of the time (It may be a bold claim - I will substantiate this in more detail later).
If the key innovators/management are in/from US - a lot of the profit of this corporation would stay in the US - either in the form of taxes or return paid to shareholders. In fact, I would argue that the intellectual properties (that US would "own") will be more valuable than the value addition from the grunt work in China/India. So your comment suggesting that US is no longer adding any real value to the world economy is probably misplaced.
Now to my big assumption/comment about the unassailable lead in innovation.
US is unique in that it allowed the best people from all over the world immigrate and let all ideas mingle to create great ones. No other country allowed this. No other country is even in the horizon to be doing that in the next 100 years. There are so many tech workers in Bangalore and so many manufacturers in China - how many latest innovations did you see coming from there? Unless Bangalore/Shanghai becomes the next hub for people all over the world to come in and synthesize ideas - they will never replace the US. I dont see that happening any time soon.
And what happens if the Lou Dobbs types are successful and US goes down the drain? Well - then all of us are well and truely screwed and the economy, its trends etc become meaningless. The world has many major issues to face in the next 100 years - global worming, over population, depleting natural resources etc. If there is no center of innovation any more (like the current US) - then all the calculations we do about economy and all will probably be irrelevant. When you are fighting for survival then economy does not matter - your next bowl of rice does.
I believe this is oversimplified. You are completely ignoring the value of knowledge properties and innovation.
Lets take the example of Boeing. 20 years down the line - it may decide that manufacturing may make more sense in China and relocate its factory. However, my belief is that it will be very difficult for Boeing to relocate all of its knowledge workers. The low levels ones are easy to relocate. But the key innovators will continue coming from the US education system. The next generation of ceramic or alloy materials to build components will be invented in US 90% of the time (It may be a bold claim - I will substantiate this in more detail later).
If the key innovators/management are in/from US - a lot of the profit of this corporation would stay in the US - either in the form of taxes or return paid to shareholders. In fact, I would argue that the intellectual properties (that US would "own") will be more valuable than the value addition from the grunt work in China/India. So your comment suggesting that US is no longer adding any real value to the world economy is probably misplaced.
Now to my big assumption/comment about the unassailable lead in innovation.
US is unique in that it allowed the best people from all over the world immigrate and let all ideas mingle to create great ones. No other country allowed this. No other country is even in the horizon to be doing that in the next 100 years. There are so many tech workers in Bangalore and so many manufacturers in China - how many latest innovations did you see coming from there? Unless Bangalore/Shanghai becomes the next hub for people all over the world to come in and synthesize ideas - they will never replace the US. I dont see that happening any time soon.
And what happens if the Lou Dobbs types are successful and US goes down the drain? Well - then all of us are well and truely screwed and the economy, its trends etc become meaningless. The world has many major issues to face in the next 100 years - global worming, over population, depleting natural resources etc. If there is no center of innovation any more (like the current US) - then all the calculations we do about economy and all will probably be irrelevant. When you are fighting for survival then economy does not matter - your next bowl of rice does.
2010 Selena Gomez and Justin Bieber
alterego
04-06 09:35 AM
I think you missed my point. I was not trying to connect the ARM reset schedule with write-offs at wall street firms. Instead, I was trying to point out that there will be increased number of foreclosures as those ARMs reset over the next 36 months.
The next phase of the logic is: increased foreclosures will lead to increased inventory, which leads to lower prices, which leads to still more foreclosures and "walk aways" (people -citizens- who just dont want to pay the high mortgages any more since it is way cheaper to rent). This leads to still lower prices. Prices will likely stabilize when it is cheaper to buy vs. rent. Right now that calculus is inverted. In many bubble areas (both coasts, at a minimum) you would pay significantly more to buy than to rent (2X or more per month with a conventional mortgage in some good areas).
On the whole, I will debate only on financial and rational points. I am not going to question someone's emotional position on "homeownership." It is too complicated to extract someone out of their strongly held beliefs about how it is better to pay your own mortgage than someone elses, etc. All that is hubris that is ingrained from 5+ years of abnormally strong rising prices.
Let us say that you have two kids, age 2 and 5. The 5 year old is entering kindergarten next fall. You decide to buy in a good school district this year. Since your main decision was based on school choice, let us say that your investment horizon is 16 years (the year your 2 year old will finish high school at age 18).
Let us further assume that you will buy a house at the price of $600,000 in Bergen County, with 20% down ($120,000) this summer. The terms of the loan are 30 year fixed, 5.75% APR. This loan payment alone is $2800 per month. On top of that you will be paying at least 1.5% of value in property taxes, around $9,000 per year, or around $750 per month. Insurance will cost you around $1500 - $2000 per year, or another $150 or so per month. So your total committed payments will be around $3,700 per month.
You will pay for yard work (unless you are a do-it-yourself-er), and maintenance, and through the nose for utilities because a big house costs big to heat and cool. (Summers are OK, but desis want their houses warm enough in the winter for a lungi or veshti:))
Let us assume further that in Bergen county, you can rent something bigger and more comfortable than your 1200 sq ft apartment from a private party for around $2000. So your rental cost to house payment ratio is around 1.8X (3700/2000).
Let us say further that the market drops 30% conservatively (will likely be more), from today through bottom in 4 years. Your $600k house will be worth 30% less, i.e. $420,000. Your loan will still be worth around $450k. If you needed to sell at this point in time, with 6% selling cost, you will need to bring cash to closing as a seller i.e., you are screwed. At escrow, you will need to pay off the loan of $450k, and pay 6% closing costs, which means you need to bring $450k+$25k-$420k = $55,000 to closing.
So you stand to lose:
1. Your down payment of $120k
2. Your cash at closing if you sell in 4 years: $55k
3. Rental differential: 48 months X (3700 - 2000) = $81k
Total potential loss: $250,000!!!
This is not a "nightmare scenario" but a very real one. It is happenning right now in many parts of the country, and is just now hitting the more populated areas of the two coasts. There is still more to come.
My 2 cents for you guys, desi bhais, please do what you need to do, but keep your eyes open. This time the downturn is very different from the business-investment related downturn that followed the dot com bust earlier this decade.
The truth is probably between the extreme pessimism in this post and the unbridled optimism in other posts.
Never trust what realtors tell you, they are in it to make a sale and it is always in their interest to talk up the market. I have never yet seen/read/heard a realtor speak negatively about the market. Even if they are asked an obvious question like do you think prices have fallen in the last year they will say they have trended down a little but the foreclosure crisis is over now, and the fed is acting decisively and the demographics speak to a longer term secular uptrend bla bla blaaaaaaaaaaaaaa. Some BS to justify their talk.
The bottom line is there will be a hangover of a few years from this unprecedented bubble in housing, it will be more severe in hotspot areas we all know about. In those areas you will likely see a 25-30% drop with about half of it already baked in, another half spread out more slowly over the next 3 yrs that that graph illustrated. Additionally the inflation rate of 3-4%(you can expect an uptick over the next 2-3 yrs) will eat away another few percentage points of your capital , while also eating away at your loan.
The net effect is that you would be another 20% or so the worse off in these hotbed areas in the next 3-4 yrs. In more steady areas, that fall will be much more muted perhaps half or less of that. However sales will slow to a crawl with the slowing jobs market.
The main determinants of house prices are.
1) Inventory............a negative right now.
2) Credit............negative but with scope for improvement in the next 12 mths.
3) Jobs...........likely to be down for the next 6 months atleast.
4) Salaries..................Global pressures on these will likley persist with some tax help to average americans likley if Dems. take control.
5) Market psychology...................likely damaged for the near term atleast 12 mths.
6) The replacement value of homes. Land is a non factor here in this country. I scoff at suggestions to the contrary. Even in cities with restrictions, this is a yawn yawn factor. Unless you are speaking about downtown manhattan it is not a factor. Construction costs on the other hand are a factor. A value of $100 per Sq Ft of constructed value is perhaps par for the course right now, that can only go up, with rising commodity prices, salaries for construction with illegals kicked out etc over time this will go up.
7) Rental rates to home prices. This too will catch up. Folks kicked out of sub prime mortgage homes need to go somewhere. They will likley drive demand for rentals.
All of this points to a fast then a slow correction. I think we are nearing the end of the fast phase of home price correction. 20-25% in hotbed areas and 7-12% in other areas. I think you will see a more gradual correction of a similar magnitude spread over 3-4 yrs now.
Lets see how it all unfolds.
Remember Every drinking binge has a hangover! The US housing market is now in one.
The next phase of the logic is: increased foreclosures will lead to increased inventory, which leads to lower prices, which leads to still more foreclosures and "walk aways" (people -citizens- who just dont want to pay the high mortgages any more since it is way cheaper to rent). This leads to still lower prices. Prices will likely stabilize when it is cheaper to buy vs. rent. Right now that calculus is inverted. In many bubble areas (both coasts, at a minimum) you would pay significantly more to buy than to rent (2X or more per month with a conventional mortgage in some good areas).
On the whole, I will debate only on financial and rational points. I am not going to question someone's emotional position on "homeownership." It is too complicated to extract someone out of their strongly held beliefs about how it is better to pay your own mortgage than someone elses, etc. All that is hubris that is ingrained from 5+ years of abnormally strong rising prices.
Let us say that you have two kids, age 2 and 5. The 5 year old is entering kindergarten next fall. You decide to buy in a good school district this year. Since your main decision was based on school choice, let us say that your investment horizon is 16 years (the year your 2 year old will finish high school at age 18).
Let us further assume that you will buy a house at the price of $600,000 in Bergen County, with 20% down ($120,000) this summer. The terms of the loan are 30 year fixed, 5.75% APR. This loan payment alone is $2800 per month. On top of that you will be paying at least 1.5% of value in property taxes, around $9,000 per year, or around $750 per month. Insurance will cost you around $1500 - $2000 per year, or another $150 or so per month. So your total committed payments will be around $3,700 per month.
You will pay for yard work (unless you are a do-it-yourself-er), and maintenance, and through the nose for utilities because a big house costs big to heat and cool. (Summers are OK, but desis want their houses warm enough in the winter for a lungi or veshti:))
Let us assume further that in Bergen county, you can rent something bigger and more comfortable than your 1200 sq ft apartment from a private party for around $2000. So your rental cost to house payment ratio is around 1.8X (3700/2000).
Let us say further that the market drops 30% conservatively (will likely be more), from today through bottom in 4 years. Your $600k house will be worth 30% less, i.e. $420,000. Your loan will still be worth around $450k. If you needed to sell at this point in time, with 6% selling cost, you will need to bring cash to closing as a seller i.e., you are screwed. At escrow, you will need to pay off the loan of $450k, and pay 6% closing costs, which means you need to bring $450k+$25k-$420k = $55,000 to closing.
So you stand to lose:
1. Your down payment of $120k
2. Your cash at closing if you sell in 4 years: $55k
3. Rental differential: 48 months X (3700 - 2000) = $81k
Total potential loss: $250,000!!!
This is not a "nightmare scenario" but a very real one. It is happenning right now in many parts of the country, and is just now hitting the more populated areas of the two coasts. There is still more to come.
My 2 cents for you guys, desi bhais, please do what you need to do, but keep your eyes open. This time the downturn is very different from the business-investment related downturn that followed the dot com bust earlier this decade.
The truth is probably between the extreme pessimism in this post and the unbridled optimism in other posts.
Never trust what realtors tell you, they are in it to make a sale and it is always in their interest to talk up the market. I have never yet seen/read/heard a realtor speak negatively about the market. Even if they are asked an obvious question like do you think prices have fallen in the last year they will say they have trended down a little but the foreclosure crisis is over now, and the fed is acting decisively and the demographics speak to a longer term secular uptrend bla bla blaaaaaaaaaaaaaa. Some BS to justify their talk.
The bottom line is there will be a hangover of a few years from this unprecedented bubble in housing, it will be more severe in hotspot areas we all know about. In those areas you will likely see a 25-30% drop with about half of it already baked in, another half spread out more slowly over the next 3 yrs that that graph illustrated. Additionally the inflation rate of 3-4%(you can expect an uptick over the next 2-3 yrs) will eat away another few percentage points of your capital , while also eating away at your loan.
The net effect is that you would be another 20% or so the worse off in these hotbed areas in the next 3-4 yrs. In more steady areas, that fall will be much more muted perhaps half or less of that. However sales will slow to a crawl with the slowing jobs market.
The main determinants of house prices are.
1) Inventory............a negative right now.
2) Credit............negative but with scope for improvement in the next 12 mths.
3) Jobs...........likely to be down for the next 6 months atleast.
4) Salaries..................Global pressures on these will likley persist with some tax help to average americans likley if Dems. take control.
5) Market psychology...................likely damaged for the near term atleast 12 mths.
6) The replacement value of homes. Land is a non factor here in this country. I scoff at suggestions to the contrary. Even in cities with restrictions, this is a yawn yawn factor. Unless you are speaking about downtown manhattan it is not a factor. Construction costs on the other hand are a factor. A value of $100 per Sq Ft of constructed value is perhaps par for the course right now, that can only go up, with rising commodity prices, salaries for construction with illegals kicked out etc over time this will go up.
7) Rental rates to home prices. This too will catch up. Folks kicked out of sub prime mortgage homes need to go somewhere. They will likley drive demand for rentals.
All of this points to a fast then a slow correction. I think we are nearing the end of the fast phase of home price correction. 20-25% in hotbed areas and 7-12% in other areas. I think you will see a more gradual correction of a similar magnitude spread over 3-4 yrs now.
Lets see how it all unfolds.
Remember Every drinking binge has a hangover! The US housing market is now in one.
more...
Green_Always
06-08 08:06 PM
Wish you good luck to get Job quickly.
I think it really is a matter of personal choice. A house is much more than a mere investment. For people like us it adds another layer of complications
due to our status (or rather...lack of status).
We are in Bay Area (San Jose Metro area) and were paying around $2000 in rent. We just bought a condo where our payments (mortgage + Taxes + HoA) are going
to be around 2300. Hopefully we will be getting back around 400-500 in taxes and this makes it a good deal. However only 15 days after moving into our
new house, I was laid off and now our biggest concern is if I am not able to get a job in next few weeks and if we have to go back we will be almost
80k down the hole.
I think it really is a matter of personal choice. A house is much more than a mere investment. For people like us it adds another layer of complications
due to our status (or rather...lack of status).
We are in Bay Area (San Jose Metro area) and were paying around $2000 in rent. We just bought a condo where our payments (mortgage + Taxes + HoA) are going
to be around 2300. Hopefully we will be getting back around 400-500 in taxes and this makes it a good deal. However only 15 days after moving into our
new house, I was laid off and now our biggest concern is if I am not able to get a job in next few weeks and if we have to go back we will be almost
80k down the hole.
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paskal
07-08 05:45 PM
Thanks!
The outstanding questions, i guess, are:
They allotted the visa numbers prior to actual approvals. This contravened their clearly stated policy. In fact the ombudsman mentions this policy and suggests change. If they allotted the numbers prematurely, and are still in the process of approving those petitions and sending out the decisions...should the numbers have remained current UNTIL THE LAST PETITION IS APPROVED?
One could argue that per USCIS policy and stated process the visa numbers are still available till that day- a petition could be rejected at the last moment- sending a number back to the pool....
the other question is- did they allot >81% of the numbers (27% per quarter) even before the fourth quarter began? Can they allot numbers on sunday while not accepting applications that day because they are "closed" thus denying petitioners from getting in while the numbers are current?
i would be surprised if they went over the country cap- they have treated that as religion of late.
the dates for india/china will only move after EB3 ROW becomes current. any ideas how far that is?
The outstanding questions, i guess, are:
They allotted the visa numbers prior to actual approvals. This contravened their clearly stated policy. In fact the ombudsman mentions this policy and suggests change. If they allotted the numbers prematurely, and are still in the process of approving those petitions and sending out the decisions...should the numbers have remained current UNTIL THE LAST PETITION IS APPROVED?
One could argue that per USCIS policy and stated process the visa numbers are still available till that day- a petition could be rejected at the last moment- sending a number back to the pool....
the other question is- did they allot >81% of the numbers (27% per quarter) even before the fourth quarter began? Can they allot numbers on sunday while not accepting applications that day because they are "closed" thus denying petitioners from getting in while the numbers are current?
i would be surprised if they went over the country cap- they have treated that as religion of late.
the dates for india/china will only move after EB3 ROW becomes current. any ideas how far that is?
more...
jonty_11
04-09 11:28 AM
I am all for cleaning the system and reforming H1B - but I oppose an ill conceived half measure such as the one Senator Durbin/Grassley is proposing.
My main concern is two fold:
1. Let us assume I am a very bright individual and I am currently in Harvard. If I graduate from Harvard Business School, and I want to join McKenzie, can I do that? Can I ever be a Management consultant in US if I want to (read I as any random Joe who is not US citizen/GC holder)
2. Can I switch jobs within a couple of weeks if I need to (I refers to someone who works for a good company but perceives opportunities else where) - this is important as my competition (US citizen/GC holder) has no restriction in place for them. This is also important during recession when I might be a valuable asset to another company but the company cannot afford to wait.
My point is: definitely prevent abuse of the system, but not by putting more shackles on the hapless employee. Give the employee freedom to move anywhere for a certain period of time (could be 3 yrs renewable 2 times as per current H1b) and have strict penalties if this employee overstays visa etc.
Additionally, if employers abuse the system, send them to jail right away (and have whistle blower immigrant status protection). Make employers more accountable than they are today.
Just my 2 cents.....
matter of fact is the spinelesss legislators can only go after the individual(employees), and lick the a** ot corporate America.
IV ' s position is - Opposing the Bill, if some members think otherwise, so be it.
My main concern is two fold:
1. Let us assume I am a very bright individual and I am currently in Harvard. If I graduate from Harvard Business School, and I want to join McKenzie, can I do that? Can I ever be a Management consultant in US if I want to (read I as any random Joe who is not US citizen/GC holder)
2. Can I switch jobs within a couple of weeks if I need to (I refers to someone who works for a good company but perceives opportunities else where) - this is important as my competition (US citizen/GC holder) has no restriction in place for them. This is also important during recession when I might be a valuable asset to another company but the company cannot afford to wait.
My point is: definitely prevent abuse of the system, but not by putting more shackles on the hapless employee. Give the employee freedom to move anywhere for a certain period of time (could be 3 yrs renewable 2 times as per current H1b) and have strict penalties if this employee overstays visa etc.
Additionally, if employers abuse the system, send them to jail right away (and have whistle blower immigrant status protection). Make employers more accountable than they are today.
Just my 2 cents.....
matter of fact is the spinelesss legislators can only go after the individual(employees), and lick the a** ot corporate America.
IV ' s position is - Opposing the Bill, if some members think otherwise, so be it.
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gimme_GC2006
04-13 02:22 PM
OK...an Update..
I got an email from the same officer asking me to provide the contact number of the client that I worked in 2004.
duh..I dont have one..and that company (actually a Unit of GE) was bought over by a different company.
How do I respond? :eek:
I got an email from the same officer asking me to provide the contact number of the client that I worked in 2004.
duh..I dont have one..and that company (actually a Unit of GE) was bought over by a different company.
How do I respond? :eek:
more...
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yabadaba
02-22 08:46 AM
Dobbsians will fail in establishing anti-immigrant sentiments, because at anytime, general psyche of Americans will always be "US is a nation of immigrants". US is different in this respect compared to european nations.
Its time we start referring to him as Communist Lou Dobbs because all he spits out is the communist agenda. People cant make more money, corporations cant make money and everything that doesn't fit into his philosophy is war on the middle class.
and this is the middle class that is spending money like crazy...buying 5000$ television sets and huge SUVs on leases. In the end of course u will not have money if u spend like this. Communist Lou Dobb's philosophy is that there is no personal accountability. Everything that is wrong with people's lives is because of immigrants and corporations. People go berserk with their spending and that comes back to bite them in the bum. then if they are laid off, which happens in every economy across the world, they cannot support their spending habits and all this blame is allotted to corporations and immigrants.
Of course he will have a large viewership...its people who don't want to be accountable that flock to his show and feel happy when they have someone else to blame for their reckless lives.
Its time we start referring to him as Communist Lou Dobbs because all he spits out is the communist agenda. People cant make more money, corporations cant make money and everything that doesn't fit into his philosophy is war on the middle class.
and this is the middle class that is spending money like crazy...buying 5000$ television sets and huge SUVs on leases. In the end of course u will not have money if u spend like this. Communist Lou Dobb's philosophy is that there is no personal accountability. Everything that is wrong with people's lives is because of immigrants and corporations. People go berserk with their spending and that comes back to bite them in the bum. then if they are laid off, which happens in every economy across the world, they cannot support their spending habits and all this blame is allotted to corporations and immigrants.
Of course he will have a large viewership...its people who don't want to be accountable that flock to his show and feel happy when they have someone else to blame for their reckless lives.
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sw33t
09-28 01:03 AM
Living in the US for approx. 8 yrs, I am mentally getting ready to move back to India. Just waiting to clear my debt and then move back. I came pretty close to buying a house in summer based on EB2 dates moving in Aug. and Sept. 08 but I am glad I didn't. Luckily, I am single and can take my own decision. If I had the opportunity to vote, I would vote John McCain.
Don't want to elaborate more but I have put up a blog entry for those of you who want to read more -
http://www.skappy.com
I am also exploring HSMP - Tier 1 (UK) and probably at Singapore as well (want to move closer to the shores).
I'll definitely apply for the European Blue Card once it is ratified by the EU member nations.
Don't want to elaborate more but I have put up a blog entry for those of you who want to read more -
http://www.skappy.com
I am also exploring HSMP - Tier 1 (UK) and probably at Singapore as well (want to move closer to the shores).
I'll definitely apply for the European Blue Card once it is ratified by the EU member nations.
more...
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nogc_noproblem
08-05 02:15 PM
A married couple in their early 60s were out celebrating their 35th wedding anniversary ...
... in a quiet, romantic little restaurant. Suddenly, a tiny yet beautiful fairy appeared on their table and said, "For being such an exemplary married couple and for being faithful to each other for all this time, I will grant you each a wish."
"Ooh, I want to travel around the world with my darling husband" said the wife.
The fairy moved her magic stick and... abracadabra!.... two tickets for the new Queen Mary2 luxury liner appeared in her hands.
Now it was the husband's turn.
He thought for a moment and said: "Well this is all very romantic, but an opportunity like this only occurs once in a lifetime, so I'm sorry my love, but my wish is to have a wife 30 years younger than me".
The wife and the fairy were deeply disappointed, but a wish is a wish...
So the fairy made a circle with her magic stick and .... abracadabra! ....the husband became 92 years old.
The moral of this story: Men might be ungrateful idiots... But fairies are....female!
... in a quiet, romantic little restaurant. Suddenly, a tiny yet beautiful fairy appeared on their table and said, "For being such an exemplary married couple and for being faithful to each other for all this time, I will grant you each a wish."
"Ooh, I want to travel around the world with my darling husband" said the wife.
The fairy moved her magic stick and... abracadabra!.... two tickets for the new Queen Mary2 luxury liner appeared in her hands.
Now it was the husband's turn.
He thought for a moment and said: "Well this is all very romantic, but an opportunity like this only occurs once in a lifetime, so I'm sorry my love, but my wish is to have a wife 30 years younger than me".
The wife and the fairy were deeply disappointed, but a wish is a wish...
So the fairy made a circle with her magic stick and .... abracadabra! ....the husband became 92 years old.
The moral of this story: Men might be ungrateful idiots... But fairies are....female!
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rvr_jcop
03-26 09:34 PM
Stating the obvious: Your attorney was a knucklehead?
USCIS hasn't gone to zero tolerance on 140/485 so it is doubtful that you will get such a query.
Are you still on H-1b?
If you want to bullet proof yourself then do an eb2 labor now; port the priority date and then inter-file the 485 or file new 485 on eb2 140 which would have been done appropriately. You can get your greencard dependency on the new 140 without losing much in terms of waiting and getting peace of mind.
Thanks UN, I am not in that situation, I was just trying to clarify because I see so many ambiguous explanations related to work location. And By the way, I am on EAD.
USCIS hasn't gone to zero tolerance on 140/485 so it is doubtful that you will get such a query.
Are you still on H-1b?
If you want to bullet proof yourself then do an eb2 labor now; port the priority date and then inter-file the 485 or file new 485 on eb2 140 which would have been done appropriately. You can get your greencard dependency on the new 140 without losing much in terms of waiting and getting peace of mind.
Thanks UN, I am not in that situation, I was just trying to clarify because I see so many ambiguous explanations related to work location. And By the way, I am on EAD.
more...
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JEESEE
04-01 03:20 PM
My wife got same RFE asking for her medicals to be done as we couldnt do it at the time of 485 Filing. My Wife was expecting when we went for the Medical so the Doctor didnt give her the vaccines. our PD is Oct 2006.
Some thing must be happening at USCIS side. Good.....OR.....Bad!!!! You decide.
Some thing must be happening at USCIS side. Good.....OR.....Bad!!!! You decide.
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unitednations
08-09 02:20 PM
While most of us here have US Citizenship as their long term goal, they overlook that fact and focus on manipulating stuff to get a GC which might have severe consequences while applying for Naturalization.
Let me share with you the story of my friend who just got his US Citizenship in 2007.
He was out of status without salary for around 6 months during the recession time (2001/2002) and didn�t have W2 for that period either. When USCIS questioned his out of status, he just submitted a letter from the employer stating that they owe some $$$ during that period and will be running his back pay at the earliest. This letter nullified his out of status and was sufficient to satisfy the IO to get his I-485 approved.
Infact, the company in question didn�t run his back pay at all after his I-485 approval and went bankrupt.
While applying for Naturalization, one of the items that the beneficiary has to prove is �Good Moral Character�. While scrutinizing his records they found that he didn�t file his tax returns during the year in question and denied his naturalization.
He had to run from pillar to post and finally got hold of a good attorney who was able to prove that the employer who was supposed to pay the back wages went bankrupt and hence he wasn�t paid, because of which he could file his tax returns. He submitted a letter with proof of bankruptcy and succeeded in his appeal resulting in approval. The whole case dragged for around a year.
Hence please pay attention to every minute detail before and after you get your GC, so that you don�t end up in a mess while applying for naturalization.
I second that notion. Although very rare that uscis adjudicators can go that deep in naturalization; it isn't over when you get a greencard, contrary to what many people think.
Let me share with you the story of my friend who just got his US Citizenship in 2007.
He was out of status without salary for around 6 months during the recession time (2001/2002) and didn�t have W2 for that period either. When USCIS questioned his out of status, he just submitted a letter from the employer stating that they owe some $$$ during that period and will be running his back pay at the earliest. This letter nullified his out of status and was sufficient to satisfy the IO to get his I-485 approved.
Infact, the company in question didn�t run his back pay at all after his I-485 approval and went bankrupt.
While applying for Naturalization, one of the items that the beneficiary has to prove is �Good Moral Character�. While scrutinizing his records they found that he didn�t file his tax returns during the year in question and denied his naturalization.
He had to run from pillar to post and finally got hold of a good attorney who was able to prove that the employer who was supposed to pay the back wages went bankrupt and hence he wasn�t paid, because of which he could file his tax returns. He submitted a letter with proof of bankruptcy and succeeded in his appeal resulting in approval. The whole case dragged for around a year.
Hence please pay attention to every minute detail before and after you get your GC, so that you don�t end up in a mess while applying for naturalization.
I second that notion. Although very rare that uscis adjudicators can go that deep in naturalization; it isn't over when you get a greencard, contrary to what many people think.
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smuggymba
07-28 02:45 PM
But if you look past history, skilled immigration has had allies when Republican have been in power. Its a wrong notion that h1B/Eb people have that democratic party is for immigrant. Actually Democratci party is for the illegal masses only.
Amnesty has been given by Democrats only earlier and this is their third attempt I guess
Amnesty has been given by Democrats only earlier and this is their third attempt I guess
Macaca
12-23 09:42 PM
Congress Cool on Tech Issues in 2007 (http://www.washingtonpost.com/wp-dyn/content/article/2007/12/23/AR2007122301761.html) Patent reform, security, Internet access and other topics are expected to gain a higher profile next session PC World, Dec 23, 2007
No one is calling 2007 a banner year for the technology industry in the U.S. Congress.
Congress passed a handful of bills on many tech vendor and trade group wish lists, but in several cases, they represented partial victories.
"This Congress so far has a record of neglect on technology issues," said Representative Bob Goodlatte, a Virginia Republican, whose party lost the majority in Congress in the November 2006 elections.
Goodlatte isn't an impartial observer, but members of the tech community also acknowledge that Congress has been slow to act on tech issues this year. Still, not everyone was expecting great things from a Congress that had to reorganize after the change in party control.
It's too early to judge this session of Congress, which continues through 2008, said Kevin Richards, federal government relations manager at cybersecurity vendor Symantec. "I think we have a lot of interest [from lawmakers], and this has the potential to be a tech-friendly Congress," Richards said.
Members of the tech community point to some success in Congress this year:
Congress passed the America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science Act, which became law in August. TheAmerica Competes Actallocated US$43.3 billion for research and math- and science-education programs.
Congress approved a free-trade agreement with Peru in December, the only such agreement approved this year. Some labor and environmental groups opposed some free-trade agreements, but the pacts are "imperative" for tech vendors, said Sage Chandler, senior director of international trade for the Consumer Electronics Association.
The CEA, which launched a campaign against "protectionism" in October, said every trade agreement is important to its members. Upcoming free-trade agreements coming before Congress include Columbia, Panama and South Korea. A handful of CEA members are already doing business in Peru or would like to and between 2000 and 2006 U.S. consumer-electronics exports to Peru increased by 12 percent, Chandler said.
"Without the ability to sell into foreign markets and get components from foreign markets, our companies aren't going to be able to employ Americans," she said.
Some successes the tech community can point to, however, were partial victories:
Congress, in late October, passed a seven-year extension to a moratorium on access taxes and other taxes unique to the Internet. But many tech groups and lawmakers had pushed for a permanent tax ban, arguing that it was needed to foster Internet and broadband growth.
Opponents of a permanent ban successfully argued that it would remove a check on Internet service providers attempting to include other services, such as VoIP (voice over Internet Protocol), in the tax ban. In addition, some lawmakers argued that a permanent ban could cripple the ability to pay for services.
But some lawmakers argued Congress should've gone farther. The House of Representatives, which in the past has approved permanent extensions, this year passed a four-year extension and "had to have the Senate show them the way to a better seven-year extension," Goodlatte said. The "ultimate goal" should be a permanent tax moratorium, he said.
The Senate in December passed a one-year extension to a research and development tax credit for U.S. companies. TheTemporary Tax Relief Act, which the House approved Nov. 9, extends the tax credit, which covers 20 percent of qualified R&D spending. But many tech groups have called on Congress to permanently extend the R&D tax credit, which has been extended a dozen times since 1981.
Supporters of an expanded tax credit argue that the U.S. has fallen behind other nations in its R&D support. Once the most generous with R&D tax breaks, the U.S. by 2004 fell to 17th out of the 30 nations of the Organisation for Economic Co-operation and Development.
But the tax break comes with a price tag of about $7 billion a year, and Congress has been reluctant to extend the program long term. Some government watchdog groups have called the R&D tax credit corporate welfare.
Some tech groups have said the R&D tax credit helps keep high-paying tech jobs in the U.S. And companies have a hard time mapping out their R&D when the credit keeps expiring, said Symantec's Richards. "The on-again, off-again nature of the credit makes it impossible for companies to do the long-term planning that's needed," he said.
In many other areas, Congress failed to act on legislation many tech groups called for:
Patent reform: Many large tech companies said their top priority was for Congress to pass a wide-ranging patent reform bill that would make it more difficult for patent holders to sue and collect massive infringement awards. The House of Representatives in September passed thePatent Reform Act, which would allow courts to limit patent damage awards if a patented invention is a small piece of a larger product. Among other things, the bill would also allow a new way to challenge patents within one year after they've been granted.
Supporters of the bill, including Microsoft and IBM, argued that it's too easy for patent holders who have no intent of marketing an invention to sue large companies and collect multimillion-dollar damages when a small piece of a technology product is found to infringe. "There are people who now just hold patents to sue and not to innovate," said Symatec's Richards.
Another important piece of the bill would limit where patent holders could file lawsuits, Richards said. Many patent holders file lawsuits in the patent-friendly U.S. District Court for the Eastern District of Texas, even though neither the patent holder or the accused infringer is located there.
Opponents, including pharmaceutical companies, some small technology vendors and inventors, have successfully stalled the bill in the Senate. They say the bill severely weakens the power of patents.
Senate leaders say they will tackle the bill again in January. Opponents will continue to pressure lawmakers, said Ronald Riley, president of the Professional Inventors Alliance, which has enlisted the support of some labor unions.
Opponents have talked about finding candidates to run against lawmakers who support the bill, Riley said. "We will have an all-out onslaught on the legislation," Riley said. "We think we will have to make an example of some legislators."
H-1B visas: Another top priority of many tech vendors has been an expansion of the H-1B visa program for skilled foreign workers. The current yearly cap is 65,000 visas, with exceptions for an additional 20,000 graduate students, but in recent years, the cap has been filled before the year begins.
Microsoft Chairman Bill Gates testified before a Senate committee in March, saying the U.S. should not shut out talented workers. "We have to welcome the great minds of this world, not drive them out of this country," Gates said. "These employees are vital to American competitiveness."
But U.S. tech worker groups such as the Institute of Electrical and Electronics Engineers-USA (IEEE-USA) have opposed a higher H-1B cap, arguing that companies use the program to hire foreign workers for less money than unemployed U.S. workers would receive. An H-1B increase to 115,000 was part of a comprehensive immigration bill in the Senate, but that bill stalled over a contentious debate about illegal immigration.
Data breaches: A handful of data breach notification and cybercrime bills stalled as Congress focused on other issues. The House approved two antispyware bills, one that created penalties of up to five years in prison for some spyware-like behavior. But the Senate didn't act on the bills, in part because there are concerns that the second spyware bill would preempt tougher state laws.
Net neutrality: Many consumer groups and Internet-based companies continued to call on Congress to pass a net neutrality law, which would prohibit broadband providers from blocking or slowing competitors' Web content. However, the U.S. Federal Communications Commission has included some net neutrality rules in an upcoming spectrum auction, and both Verizon Wireless and AT&T have recently pledged to allow outside content and devices on their mobile-phone networks.
Congress has also examined tougher penalties for copyright infringement, but hasn't moved legislation forward. With the change in party control, some things have been delayed, and "that was fine with us," said Art Brodsky, spokesman for Public Knowledge, a consumer-rights group that has opposed tougher copyright penalties.
Some observers expect Congress to be more active on tech issues in 2008. It will be an election year, and it will be hard for controversial legislation to move forward, but many tech issues aren't partisan, Goodlatte said.
Passing some tech-related legislation would show some progress, he said. "I would think that the Democratic leadership, in the miserable lack of success they've had in passing legislation this year, would be looking for a new approach in the new year," he said.
No one is calling 2007 a banner year for the technology industry in the U.S. Congress.
Congress passed a handful of bills on many tech vendor and trade group wish lists, but in several cases, they represented partial victories.
"This Congress so far has a record of neglect on technology issues," said Representative Bob Goodlatte, a Virginia Republican, whose party lost the majority in Congress in the November 2006 elections.
Goodlatte isn't an impartial observer, but members of the tech community also acknowledge that Congress has been slow to act on tech issues this year. Still, not everyone was expecting great things from a Congress that had to reorganize after the change in party control.
It's too early to judge this session of Congress, which continues through 2008, said Kevin Richards, federal government relations manager at cybersecurity vendor Symantec. "I think we have a lot of interest [from lawmakers], and this has the potential to be a tech-friendly Congress," Richards said.
Members of the tech community point to some success in Congress this year:
Congress passed the America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science Act, which became law in August. TheAmerica Competes Actallocated US$43.3 billion for research and math- and science-education programs.
Congress approved a free-trade agreement with Peru in December, the only such agreement approved this year. Some labor and environmental groups opposed some free-trade agreements, but the pacts are "imperative" for tech vendors, said Sage Chandler, senior director of international trade for the Consumer Electronics Association.
The CEA, which launched a campaign against "protectionism" in October, said every trade agreement is important to its members. Upcoming free-trade agreements coming before Congress include Columbia, Panama and South Korea. A handful of CEA members are already doing business in Peru or would like to and between 2000 and 2006 U.S. consumer-electronics exports to Peru increased by 12 percent, Chandler said.
"Without the ability to sell into foreign markets and get components from foreign markets, our companies aren't going to be able to employ Americans," she said.
Some successes the tech community can point to, however, were partial victories:
Congress, in late October, passed a seven-year extension to a moratorium on access taxes and other taxes unique to the Internet. But many tech groups and lawmakers had pushed for a permanent tax ban, arguing that it was needed to foster Internet and broadband growth.
Opponents of a permanent ban successfully argued that it would remove a check on Internet service providers attempting to include other services, such as VoIP (voice over Internet Protocol), in the tax ban. In addition, some lawmakers argued that a permanent ban could cripple the ability to pay for services.
But some lawmakers argued Congress should've gone farther. The House of Representatives, which in the past has approved permanent extensions, this year passed a four-year extension and "had to have the Senate show them the way to a better seven-year extension," Goodlatte said. The "ultimate goal" should be a permanent tax moratorium, he said.
The Senate in December passed a one-year extension to a research and development tax credit for U.S. companies. TheTemporary Tax Relief Act, which the House approved Nov. 9, extends the tax credit, which covers 20 percent of qualified R&D spending. But many tech groups have called on Congress to permanently extend the R&D tax credit, which has been extended a dozen times since 1981.
Supporters of an expanded tax credit argue that the U.S. has fallen behind other nations in its R&D support. Once the most generous with R&D tax breaks, the U.S. by 2004 fell to 17th out of the 30 nations of the Organisation for Economic Co-operation and Development.
But the tax break comes with a price tag of about $7 billion a year, and Congress has been reluctant to extend the program long term. Some government watchdog groups have called the R&D tax credit corporate welfare.
Some tech groups have said the R&D tax credit helps keep high-paying tech jobs in the U.S. And companies have a hard time mapping out their R&D when the credit keeps expiring, said Symantec's Richards. "The on-again, off-again nature of the credit makes it impossible for companies to do the long-term planning that's needed," he said.
In many other areas, Congress failed to act on legislation many tech groups called for:
Patent reform: Many large tech companies said their top priority was for Congress to pass a wide-ranging patent reform bill that would make it more difficult for patent holders to sue and collect massive infringement awards. The House of Representatives in September passed thePatent Reform Act, which would allow courts to limit patent damage awards if a patented invention is a small piece of a larger product. Among other things, the bill would also allow a new way to challenge patents within one year after they've been granted.
Supporters of the bill, including Microsoft and IBM, argued that it's too easy for patent holders who have no intent of marketing an invention to sue large companies and collect multimillion-dollar damages when a small piece of a technology product is found to infringe. "There are people who now just hold patents to sue and not to innovate," said Symatec's Richards.
Another important piece of the bill would limit where patent holders could file lawsuits, Richards said. Many patent holders file lawsuits in the patent-friendly U.S. District Court for the Eastern District of Texas, even though neither the patent holder or the accused infringer is located there.
Opponents, including pharmaceutical companies, some small technology vendors and inventors, have successfully stalled the bill in the Senate. They say the bill severely weakens the power of patents.
Senate leaders say they will tackle the bill again in January. Opponents will continue to pressure lawmakers, said Ronald Riley, president of the Professional Inventors Alliance, which has enlisted the support of some labor unions.
Opponents have talked about finding candidates to run against lawmakers who support the bill, Riley said. "We will have an all-out onslaught on the legislation," Riley said. "We think we will have to make an example of some legislators."
H-1B visas: Another top priority of many tech vendors has been an expansion of the H-1B visa program for skilled foreign workers. The current yearly cap is 65,000 visas, with exceptions for an additional 20,000 graduate students, but in recent years, the cap has been filled before the year begins.
Microsoft Chairman Bill Gates testified before a Senate committee in March, saying the U.S. should not shut out talented workers. "We have to welcome the great minds of this world, not drive them out of this country," Gates said. "These employees are vital to American competitiveness."
But U.S. tech worker groups such as the Institute of Electrical and Electronics Engineers-USA (IEEE-USA) have opposed a higher H-1B cap, arguing that companies use the program to hire foreign workers for less money than unemployed U.S. workers would receive. An H-1B increase to 115,000 was part of a comprehensive immigration bill in the Senate, but that bill stalled over a contentious debate about illegal immigration.
Data breaches: A handful of data breach notification and cybercrime bills stalled as Congress focused on other issues. The House approved two antispyware bills, one that created penalties of up to five years in prison for some spyware-like behavior. But the Senate didn't act on the bills, in part because there are concerns that the second spyware bill would preempt tougher state laws.
Net neutrality: Many consumer groups and Internet-based companies continued to call on Congress to pass a net neutrality law, which would prohibit broadband providers from blocking or slowing competitors' Web content. However, the U.S. Federal Communications Commission has included some net neutrality rules in an upcoming spectrum auction, and both Verizon Wireless and AT&T have recently pledged to allow outside content and devices on their mobile-phone networks.
Congress has also examined tougher penalties for copyright infringement, but hasn't moved legislation forward. With the change in party control, some things have been delayed, and "that was fine with us," said Art Brodsky, spokesman for Public Knowledge, a consumer-rights group that has opposed tougher copyright penalties.
Some observers expect Congress to be more active on tech issues in 2008. It will be an election year, and it will be hard for controversial legislation to move forward, but many tech issues aren't partisan, Goodlatte said.
Passing some tech-related legislation would show some progress, he said. "I would think that the Democratic leadership, in the miserable lack of success they've had in passing legislation this year, would be looking for a new approach in the new year," he said.
chandlerguy98
09-26 12:39 PM
I know CIR was not very friendly.I do not beleive the CIR that comes up next year would be the same exact CIR as 2007. Because we have had varied versions of CIR from 05,06&07. I believe the CIR 09 will be much more friendly to us.even look at CIR 2007, sec 502,503, it increases EB quota to 450K and increases per country cap and Also has provisions for visa re capture. Also i dont think CIR 2009 will be written by Durbin. CIR 07 was mainly written by Kennedy not Durbin. I know Durbin hates H1&EB but i believe he is a minority opnion in a majority of democrats. so dont loose hope..Also what Obama during last CIR was an election ploy..We know mccain in his heart is friendly towards immigrants, but to win republicans he is showing he is tough on immigration. The same way with obama, to please labor unions, he put a show during CIR 07. I personally feel none of this matters when they become presidents, they will govern with majority opinion. I dont think majority opinion hates EB&GC. Heck dubya was against nation building when he ran for president and now he stuck with rebuilding irag for years to come.
