Wall Street Week Ahead: A lump of coal for "Fiscal Cliff-mas"

NEW YORK (Reuters) - Wall Street traders are going to have to pack their tablets and work computers in their holiday luggage after all.


A traditionally quiet week could become hellish for traders as politicians in Washington are likely to fall short of an agreement to deal with $600 billion in tax hikes and spending cuts due to kick in early next year. Many economists forecast that this "fiscal cliff" will push the economy into recession.


Thursday's debacle in the U.S. House of Representatives, where Speaker John Boehner failed to secure passage of his own bill that was meant to pressure President Obama and Senate Democrats, only added to worry that the protracted budget talks will stretch into 2013.


Still, the market remains resilient. Friday's decline on Wall Street, triggered by Boehner's fiasco, was not enough to prevent the S&P 500 from posting its best week in four.


"The markets have been sort of taking this in stride," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago, which has about $38 billion in assets under management.


"The markets still basically believe that something will be done," he said.


If something happens next week, it will come in a short time frame. Markets will be open for a half-day on Christmas Eve, when Congress will not be in session, and will close on Tuesday for Christmas. Wall Street will resume regular stock trading on Wednesday, but volume is expected to be light throughout the rest of the week with scores of market participants away on a holiday break.


For the week, the three major U.S. stock indexes posted gains, with the Dow Jones industrial average <.dji> up 0.4 percent, the S&P 500 <.spx> up 1.2 percent and the Nasdaq Composite Index <.ixic> up 1.7 percent.


Stocks also have booked solid gains for the year so far, with just five trading sessions left in 2012: The Dow has advanced 8 percent, while the S&P 500 has climbed 13.7 percent and the Nasdaq has jumped 16 percent.


IT COULD GET A LITTLE CRAZY


Equity volumes are expected to fall sharply next week. Last year, daily volume on each of the last five trading days dropped on average by about 49 percent, compared with the rest of 2011 - to just over 4 billion shares a day exchanging hands on the New York Stock Exchange, the Nasdaq and NYSE MKT in the final five sessions of the year from a 2011 daily average of 7.9 billion.


If the trend repeats, low volumes could generate a spike in volatility as traders keep track of any advance in the cliff talks in Washington.


"I'm guessing it's going to be a low volume week. There's not a whole lot other than the fiscal cliff that is going to continue to take the headlines," said Joe Bell, senior equity analyst at Schaeffer's Investment Research, in Cincinnati.


"A lot of people already have a foot out the door, and with the possibility of some market-moving news, you get the possibility of increased volatility."


Economic data would have to be way off the mark to move markets next week. But if the recent trend of better-than-expected economic data holds, stocks will have strong fundamental support that could prevent selling from getting overextended even as the fiscal cliff negotiations grind along.


Small and mid-cap stocks have outperformed their larger peers in the last couple of months, indicating a shift in investor sentiment toward the U.S. economy. The S&P MidCap 400 Index <.mid> overcame a technical level by confirming its close above 1,000 for a second week.


"We view the outperformance of the mid-caps and the break of that level as a strong sign for the overall market," Schaeffer's Bell said.


"Whenever you have flight to risk, it shows investors are beginning to have more of a risk appetite."


Evidence of that shift could be a spike in shares in the defense sector, expected to take a hit as defense spending is a key component of the budget talks.


The PHLX defense sector index <.dfx> hit a historic high on Thursday, and far outperformed the market on Friday with a dip of just 0.26 percent, while the three major U.S. stock indexes finished the day down about 1 percent.


Following a half-day on Wall Street on Monday ahead of the Christmas holiday, Wednesday will bring the S&P/Case-Shiller Home Price Index. It is expected to show a ninth-straight month of gains.


U.S. jobless claims on Thursday are seen roughly in line with the previous week's level, with the forecast at 360,000 new filings for unemployment insurance, compared with the previous week's 361,000.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)


(Reporting by Rodrigo Campos; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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IHT Rendezvous: The Illustrious and Twisted Paths to Secretary of State

WASHINGTON — My latest Letter From Washington details why Senator John Kerry of Massachusetts is an excellent choice to be secretary of state.

Page Two

Posts written by the IHT’s Page Two columnists.

Of the last 10 secretaries of state, Sen. Kerry will be only the second politician; the other is the incumbent, former Sen. Hillary Clinton.

It didn’t used to be that way. In America’s first 40 years, five future presidents held the post: Thomas Jefferson, James Madison, James Monroe, John Quincy Adams and Martin Van Buren. From 1825 to 1850, three of the legendary members of the Senate, Henry Clay, Daniel Webster and John C. Calhoun, all served a stint as top diplomat.

Sen. Kerry won’t be the first defeated presidential candidate in the job. James Blaine in the 1880s, William Jennings Bryan 30 years later and Ed Muskie in 1980, all lost races for the presidency and later were tapped as secretary of state.

Most politicians served relatively short stints at the State Department. The longest-serving secretary was Cordell Hull under Franklin D. Roosevelt: 11 years and nine months before and during World War II.

Sen. Kerry will be the eighth secretary from Massachusetts, the first since Christian Herter in the last years of the Eisenhower Administration. Another Bay State predecessor was Edward Everett in 1852-53. A decade later, he was featured speaker at the dedication of the National Cemetery in Gettysburg. His two-hour oration was overshadowed by a two-minute address by a fellow named Lincoln.

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Sri Lanka arrests 100 Chinese for cyber fraud, police say






COLOMBO (Reuters) – Sri Lanka on Saturday arrested at least 100 Chinese nationals accused of an internet fraud scheme targeting people in their home country, a police spokesman said.


The accused, all in Sri Lanka on tourist visas, are suspected of hacking into computers in China and then demanding their owners transfer them money, police spokesman Prishantha Jayakodi told Reuters.






Chinese police requested help from Sri Lanka, he said.


Officials at the Chinese embassy in Colombo were not available for comment.


China has been the top lender to Sri Lanka since the end of a 25-year war in May 2009 and thousands of Chinese are working in the country on Chinese-funded infrastructure projects.


(Reporting by Shihar Aneez; editing by Jason Webb)


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Which Rising Star Did You Select as Best Dressed This Week?







Style News Now





12/22/2012 at 12:00 PM ET











Jessica Chastain
Marion Curtis/Startraks


With a hot new movie and an acclaimed Broadway show, Jessica Chastain has a lot to celebrate this season. And now she has another accolade: she’s this week’s best dressed star!


More than 16,000 of you gave Chastain’s simple, elegant ensemble — a peplum dress and Casadei sandals, worn to a Zero Dark Thirty screening in N.Y.C. — some love, propelling her into the top spot on our best dressed list. Chastain finished her look with natural makeup, minimal jewels and a flawless blowout.


PHOTOS: SEE THE TOP 10 BEST DRESSED STARS ON PEOPLE.COM THIS WEEK!


Coming in second was another fashion favorite, the Duchess of Cambridge, who wore a forest-green Alexander McQueen dress (with a sexy thigh-high split!) for the BBC Sports Personality of the Year Awards in London — her first public outing since her recent hospitalization.


Click here to find out who else ranked in the top 10 and vote for your favorite celeb looks. Tell us: Are you a fan of Chastain’s winning look? Who do you think deserved the title of best dressed star this week?




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Predicting who's at risk for violence isn't easy


CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.


Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.


But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.


"They're yellow flags. They only become red flags once the blood is spilled," he said.


Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.


Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)


Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.


Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.


"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."


The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."


In a guidelines for families, the academy lists several risk factors for violence, including:


—Previous violent or aggressive behavior


—Being a victim of physical or sexual abuse


—Guns in the home


—Use of drugs or alcohol


—Brain damage from a head injury


Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.


Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.


Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.


According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.


Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.


Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.


And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.


All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.


Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.


Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.


Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.


___


Online:


American Academy of Child & Adolescent Psychiatry: http://www.aacap.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Wall Street Week Ahead: A lump of coal for "Fiscal Cliff-mas"

NEW YORK (Reuters) - Wall Street traders are going to have to pack their tablets and work computers in their holiday luggage after all.


A traditionally quiet week could become hellish for traders as politicians in Washington are likely to fall short of an agreement to deal with $600 billion in tax hikes and spending cuts due to kick in early next year. Many economists forecast that this "fiscal cliff" will push the economy into recession.


Thursday's debacle in the U.S. House of Representatives, where Speaker John Boehner failed to secure passage of his own bill that was meant to pressure President Obama and Senate Democrats, only added to worry that the protracted budget talks will stretch into 2013.


Still, the market remains resilient. Friday's decline on Wall Street, triggered by Boehner's fiasco, was not enough to prevent the S&P 500 from posting its best week in four.


"The markets have been sort of taking this in stride," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago, which has about $38 billion in assets under management.


"The markets still basically believe that something will be done," he said.


If something happens next week, it will come in a short time frame. Markets will be open for a half-day on Christmas Eve, when Congress will not be in session, and will close on Tuesday for Christmas. Wall Street will resume regular stock trading on Wednesday, but volume is expected to be light throughout the rest of the week with scores of market participants away on a holiday break.


For the week, the three major U.S. stock indexes posted gains, with the Dow Jones industrial average <.dji> up 0.4 percent, the S&P 500 <.spx> up 1.2 percent and the Nasdaq Composite Index <.ixic> up 1.7 percent.


Stocks also have booked solid gains for the year so far, with just five trading sessions left in 2012: The Dow has advanced 8 percent, while the S&P 500 has climbed 13.7 percent and the Nasdaq has jumped 16 percent.


IT COULD GET A LITTLE CRAZY


Equity volumes are expected to fall sharply next week. Last year, daily volume on each of the last five trading days dropped on average by about 49 percent, compared with the rest of 2011 - to just over 4 billion shares a day exchanging hands on the New York Stock Exchange, the Nasdaq and NYSE MKT in the final five sessions of the year from a 2011 daily average of 7.9 billion.


If the trend repeats, low volumes could generate a spike in volatility as traders keep track of any advance in the cliff talks in Washington.


"I'm guessing it's going to be a low volume week. There's not a whole lot other than the fiscal cliff that is going to continue to take the headlines," said Joe Bell, senior equity analyst at Schaeffer's Investment Research, in Cincinnati.


"A lot of people already have a foot out the door, and with the possibility of some market-moving news, you get the possibility of increased volatility."


Economic data would have to be way off the mark to move markets next week. But if the recent trend of better-than-expected economic data holds, stocks will have strong fundamental support that could prevent selling from getting overextended even as the fiscal cliff negotiations grind along.


Small and mid-cap stocks have outperformed their larger peers in the last couple of months, indicating a shift in investor sentiment toward the U.S. economy. The S&P MidCap 400 Index <.mid> overcame a technical level by confirming its close above 1,000 for a second week.


"We view the outperformance of the mid-caps and the break of that level as a strong sign for the overall market," Schaeffer's Bell said.


"Whenever you have flight to risk, it shows investors are beginning to have more of a risk appetite."


Evidence of that shift could be a spike in shares in the defense sector, expected to take a hit as defense spending is a key component of the budget talks.


The PHLX defense sector index <.dfx> hit a historic high on Thursday, and far outperformed the market on Friday with a dip of just 0.26 percent, while the three major U.S. stock indexes finished the day down about 1 percent.


Following a half-day on Wall Street on Monday ahead of the Christmas holiday, Wednesday will bring the S&P/Case-Shiller Home Price Index. It is expected to show a ninth-straight month of gains.


U.S. jobless claims on Thursday are seen roughly in line with the previous week's level, with the forecast at 360,000 new filings for unemployment insurance, compared with the previous week's 361,000.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)


(Reporting by Rodrigo Campos; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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The Lede Blog: Rorschach in Hebron: Grainy Footage Fails to End Arguments Over Fatal Shooting

Video of a fatal shooting last week at a checkpoint in the West Bank city of Hebron, released by Israel’s military.

When the Israel Defense Forces released 49 seconds of grainy, black-and-white video this week, showing some of what happened at a checkpoint in the West Bank city of Hebron before the fatal shooting of a Palestinian teenager by an Israeli officer, a military spokesman expressed confidence that the security-camera footage proved that the killing was justified.

As The Lede reported last week, the officer who shot and killed Muhammad al-Salameh on his 17th birthday said that the boy had subdued her partner and pressed a real-looking toy gun to his head, leaving her no alternative but to fire. An I.D.F. spokesman, Capt. Barak Raz, said that the video left no doubt that the young female officer had acted correctly.

Looking at the footage posted on the I.D.F.’s Arabic-language YouTube channel, though, some Palestinian activists and skeptical Israeli journalists asked why the video had been edited, omitting part of the encounter, and seemed not to match the initial account provided to the Israeli media by the officer who fired the fatal shots.

Parsing the clip on the Israeli news blog +972, the journalist Noam Sheizaf observed that the video appeared to show that the boy who was killed did throw the first punch in a fistfight with an officer at the checkpoint. But, he added, that officer seemed to have broken free of the boy before any shots were fired by the second officer, identified in Israeli media accounts as N.

It is hard to tell what’s going on – Muhammad and a soldier can be seen exchanging blows, and it seems that the Palestinian is the first to try and hit the soldier (0:33). The alleged gun cannot be spotted, but the clip – which is slightly edited (0:24) – is very dark. The second soldier comes out to the street and when the soldier and the Palestinian are away from each other, she shoots Muhammad (0:48). Unless the teen was indeed holding a gun, the soldiers don’t seem to be under threat at that moment.

A Palestinian blogger, Abir Kopty, argued that the video appeared to show that the fight between the young Palestinian and the officer at the checkpoint was also different in several respects from all of the accounts provided to the Israeli media by the military.

The army claims that at one point Salaymeh was pointing a gun at the soldier, in another he knocked the soldier down and pointed a gun at him, and in a third version that he placed the gun at the soldier’s temple. The video does not show any of these versions. It seems like Salaymeh was fist fighting with his hands without any gun.

Another Israeli journalist, Larry Derfner, catalogued the questions not answered by the clip:

We don’t know if Salameh pulled a realistic-looking cigarette-lighter gun during the fight, which was N.’s stated justification for shooting him; you can’t see such an object in the video, although again, the video is dark and not very distinct, as if done in “night vision.”

We don’t know what happened just before Salameh went up to a border policeman and attacked him with his fists – there’s a cut in the 54-second video at 0:24. We also don’t know why the I.D.F. waited four days before making the video available to the public.

Although no one doubts that the video was recorded during the encounter, questions have been asked in the past about the Israeli military’s use of editing in footage uploaded to YouTube.

Mr. Derfner also reported that a Palestinian witness told the Israeli rights group B’Tselem “that the border policemen saw Salameh approaching the checkpoint with a gun that looked real, and either confiscated it or tried to, and that Salameh was shouting, ‘It’s mine, it’s mine’ during the fight, and was either trying to grab the gun back from the border policeman or stop him from taking it.”

Sarit Michaeli, a spokeswoman for B’Tselem, the Israeli Information Center for Human Rights in the Occupied Territories, told The Lede in an e-mail that a witness “told us that Salameh had the gun-shaped lighter on him (not drawn). The checkpoint is near his family home. The Border Police officers discovered the gun, tried to or did indeed confiscate it, which sparked an altercation, and he managed to get it back. That’s when he was heard shouting ‘mine.’ Our witness described a fight between Salameh and the officers, in which they exchanged blows, and was then shot.”

She added:

The fight is seen in the security camera footage but the confiscation is not. The footage released is an incomplete film though, a sequence was cut out of it. I haven’t seen an official explanation of what was cut and why. It seems like a very odd decision to me, releasing edited footage is only bound to spark more controversy instead of quashing it.

Video of the tense scene at the checkpoint just after the shooting, which includes a brief glimpse of the dead boy’s body, was posted on YouTube by B’Tselem last week.

A second Palestinian witness, who arrived at the checkpoint shortly after the shooting, provided B’Tselem with photographs of the young man’s body and the toy gun. The boy’s father told reporters from the Israeli newspaper Haaretz that he had never seen the toy gun before but that it might have been given to his son that day as a birthday present.

While reports said the boy had been shot in the chest and a hip, no bullet wounds were visible on the front of his body in the photograph taken by the witness at the scene.


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Is the Christmas card dead?






Author Nina Burleigh says the holiday photo is dead — and the internet killed it


Every year around the holidays, countless Americans sit down at their dining room tables to thoughtfully scribble pen-and-paper updates about how they are and what they’ve been doing with their lives to a select number of friends. These messages are usually written on the back of a recent family photograph (sometimes with Santa hats), before they’re sealed, stamped, and mailed around the country, where they’re displayed like a trophy over someone else’s fireplace.






Could that all be changing? This year, especially, there seems to be a dearth of dead-tree holiday cheer filling up mailboxes across the country. In a recent column for TIME, author Nina Burleigh says the spirit once distilled inside the Christmas card is dying, and a familiar, if fairly obvious perpetrator killed it: The internet. “There’s little point to writing a Christmas update now, with boasts about grades and athletic prowess, hospitalizations and holidays, and the dog’s mishaps, when we have already posted these events and so much more of our minutiae all year long,” she writes. “The urge to share has already been well sated.”


[Now] we already have real-time windows into the lives of people thousands of miles away. We already know exactly how they’ve fared in the past year, much more than could possibly be conveyed by any single Christmas card. If a child or grandchild has been born to a former colleague or high school chum living across the continent, not only did I see it within hours on Shutterfly or Instagram or Facebook, I might have seen him or her take his or her first steps on YouTube. If a job was gotten or lost, a marriage made or ended, we have already witnessed the woe and joy of it on Facebook, email and Twitter.


Burleigh says the demise of the Christmas card is deeply saddening. “It portends the end of the U.S. Postal Service,” she writes. “It signals the day is near when writing on paper is non-existent.” It’s true, says Tony Seifart at Memeburn — “my mantle is empty this year. In fact I haven’t received one Christmas card yet.”


SEE ALSO: The perks and perils of our newly indexed society


Let’s not get too nostalgic just yet, says Alexis Madrigal at The Atlantic. Research firm IBISWorld anticipates that purchases of cards and postage will be the highest it has been in five years — $ 3.17 billion total. And Hallmark, the industry’s biggest player, has seen revenue hold steady since the early 2000s despite the financial crisis. We could also think about this another way: That desire to share, the willingness to inform, could just be extending itself beyond the physical form of the holiday photo. 


No matter what time of the year, people now write contemplative letters with weird formatting to an ill-defined audience of “friends”; these are Christmas letters, whether Santa is coming down the chimney or not. There are reindeer horns on pugs in July. And humblebrags about promotions in April. There are dating updates in November. And you can disclose that you were voted mother of the year any damn day you please… For good or for ill, perhaps we’re seeing not the death of the holiday card and letter, but its rebirth as a rhetorical mode. Confessional, self-promotional, hokey, charming, earnest, technically honest, introspective, hopey-changey: Oh, Christmas Card, you have gone open-source and conquered us all. 


The spirit of the Christmas card is indeed alive and well. It’s just not necessarily in a Christmas card.


SEE ALSO: Poison pens and lipstick guns: 8 real-life spy weapons


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Drew Barrymore: My Dogs Are So Protective of Baby Olive






Only on People.com








12/22/2012 at 05:30 PM EST







Drew Barrymore, Will Kopelman and dog Douglas


NPG


She may have been a nervous wreck after baby Olive arrived this fall, but the Drew Barrymore could have rested easy because her dogs had everything under control.

"They're so protective of her. They're so sweet," she tells PEOPE of her pups, Douglas and shepherd mix Oliver. "And Douglas, the little blonde one, just comes and licks [Olive's] head, and it's just so goofy and silly and I always say, 'Douglas, is this your baby?' "

The first-time mom, 37, and her husband Will Kopelman were careful when it came to introducing their furbabies to the real baby.

"We brought her stuff home to them to sniff and play with," she tells PEOPLE. "I put her with them right away. I was holding her and protective but there are all these wonderful studies that kids that grow up with dogs have better immunities because of the dander and the pollen. And it's a proven fact that dogs just improve the quality of your life."

In just a few months, Douglas has assumed the role of bodyguard over 10-week-old Olive, whom Barrymore calls "Super Baby" because she sleeps and eats so well.

"He's literally sitting [and] looking out the window," she says, "in, like, a guard dog position."

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AP IMPACT: Big Pharma cashes in on HGH abuse


A federal crackdown on illicit foreign supplies of human growth hormone has failed to stop rampant misuse, and instead has driven record sales of the drug by some of the world's biggest pharmaceutical companies, an Associated Press investigation shows.


The crackdown, which began in 2006, reduced the illegal flow of unregulated supplies from China, India and Mexico.


But since then, Big Pharma has been satisfying the steady desires of U.S. users and abusers, including many who take the drug in the false hope of delaying the effects of aging.


From 2005 to 2011, inflation-adjusted sales of HGH were up 69 percent, according to an AP analysis of pharmaceutical company data collected by the research firm IMS Health. Sales of the average prescription drug rose just 12 percent in that same period.


___


EDITOR'S NOTE — Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.


___


Unlike other prescription drugs, HGH may be prescribed only for specific uses. U.S. sales are limited by law to treat a rare growth defect in children and a handful of uncommon conditions like short bowel syndrome or Prader-Willi syndrome, a congenital disease that causes reduced muscle tone and a lack of hormones in sex glands.


The AP analysis, supplemented by interviews with experts, shows too many sales and too many prescriptions for the number of people known to be suffering from those ailments. At least half of last year's sales likely went to patients not legally allowed to get the drug. And U.S. pharmacies processed nearly double the expected number of prescriptions.


Peddled as an elixir of life capable of turning middle-aged bodies into lean machines, HGH — a synthesized form of the growth hormone made naturally by the human pituitary gland — winds up in the eager hands of affluent, aging users who hope to slow or even reverse the aging process.


Experts say these folks don't need the drug, and may be harmed by it. The supposed fountain-of-youth medicine can cause enlargement of breast tissue, carpal tunnel syndrome and swelling of hands and feet. Ironically, it also can contribute to aging ailments like heart disease and Type 2 diabetes.


Others in the medical establishment also are taking a fat piece of the profits — doctors who fudge prescriptions, as well as pharmacists and distributors who are content to look the other way. HGH also is sold directly without prescriptions, as new-age snake oil, to patients at anti-aging clinics that operate more like automated drug mills.


Years of raids, sports scandals and media attention haven't stopped major drugmakers from selling a whopping $1.4 billion worth of HGH in the U.S. last year. That's more than industry-wide annual gross sales for penicillin or prescription allergy medicine. Anti-aging HGH regimens vary greatly, with a yearly cost typically ranging from $6,000 to $12,000 for three to six self-injections per week.


Across the U.S., the medication is often dispensed through prescriptions based on improper diagnoses, carefully crafted to exploit wiggle room in the law restricting use of HGH, the AP found.


HGH is often promoted on the Internet with the same kind of before-and-after photos found in miracle diet ads, along with wildly hyped claims of rapid muscle growth, loss of fat, greater vigor, and other exaggerated benefits to adults far beyond their physical prime. Sales also are driven by the personal endorsement of celebrities such as actress Suzanne Somers.


Pharmacies that once risked prosecution for using unauthorized, foreign HGH — improperly labeled as raw pharmaceutical ingredients and smuggled across the border — now simply dispense name brands, often for the same banned uses. And usually with impunity.


Eight companies have been granted permission to market HGH by the U.S. Food and Drug Administration, which reviews the benefits and risks of new drug products. By contrast, three companies are approved for the diabetes drug insulin.


The No. 1 maker, Roche subsidiary Genentech, had nearly $400 million in HGH sales in the U.S. last year, up an inflation-adjusted two-thirds from 2005. Pfizer and Eli Lilly were second and third with $300 million and $220 million in sales, respectively, according to IMS Health. Pfizer now gets more revenue from its HGH brand, Genotropin, than from Zoloft, its well-known depression medicine that lost patent protection.


On their face, the numbers make no sense to the recognized hormone doctors known as endocrinologists who provide legitimate HGH treatment to a small number of patients.


Endocrinologists estimate there are fewer than 45,000 U.S. patients who might legitimately take HGH. They would be expected to use roughly 180,000 prescriptions or refills each year, given that typical patients get three months' worth of HGH at a time, according to doctors and distributors.


Yet U.S. pharmacies last year supplied almost twice that much HGH — 340,000 orders — according to AP's analysis of IMS Health data.


While doctors say more than 90 percent of legitimate patients are children with stunted growth, 40 percent of 442 U.S. side-effect cases tied to HGH over the last year involved people age 18 or older, according to an AP analysis of FDA data. The average adult's age in those cases was 53, far beyond the prime age for sports. The oldest patients were in their 80s.


Some of these medical records even give explicit hints of use to combat aging, justifying treatment with reasons like fatigue, bone thinning and "off-label," which means treatment of an unapproved condition


Even Medicare, the government health program for older Americans, allowed 22,169 HGH prescriptions in 2010, a five-year increase of 78 percent, according to data released by the Centers for Medicare and Medicaid Services in response to an AP public records request.


"There's no question: a lot gets out," said hormone specialist Dr. Mark Molitch of Northwestern University, who helped write medical standards meant to limit HGH treatment to legitimate patients.


And those figures don't include HGH sold directly by doctors without prescriptions at scores of anti-aging medical practices and clinics around the country. Those numbers could only be tallied by drug makers, who have declined to say how many patients they supply and for what conditions.


First marketed in 1985 for children with stunted growth, HGH was soon misappropriated by adults intent on exploiting its modest muscle- and bone-building qualities. Congress limited HGH distribution to the handful of rare conditions in an extraordinary 1990 law, overriding the generally unrestricted right of doctors to prescribe medicines as they see fit.


Despite the law, illicit HGH spread around the sports world in the 1990s, making deep inroads into bodybuilding, college athletics, and professional leagues from baseball to cycling. The even larger banned market among older adults has flourished more recently.


FDA regulations ban the sale of HGH as an anti-aging drug. In fact, since 1990, prescribing it for things like weight loss and strength conditioning has been punishable by 5 to 10 years in prison.


Steve Kleppe, of Scottsdale, Ariz., a restaurant entrepreneur who has taken HGH for almost 15 years to keep feeling young, said he noticed a price jump of about 25 percent after the block on imports. He now buys HGH directly from a doctor at an annual cost of about $8,000 for himself and the same amount for his wife.


Many older patients go for HGH treatment to scores of anti-aging practices and clinics heavily concentrated in retirement states like Florida, Nevada, Arizona and California.


These sites are affiliated with hundreds of doctors who are rarely endocrinologists. Instead, many tout certification by the American Board of Anti-Aging and Regenerative Medicine, though the medical establishment does not recognize the group's bona fides.


The clinics offer personalized programs of "age management" to business executives, affluent retirees, and other patients of means, sometimes coupled with the amenities of a vacation resort. The operations insist there are few, if any, side effects from HGH. Mainstream medical authorities say otherwise.


A 2007 review of 31 medical studies showed swelling in half of HGH patients, with joint pain or diabetes in more than a fifth. A French study of about 7,000 people who took HGH as children found a 30 percent higher risk of death from causes like bone tumors and stroke, stirring a health advisory from U.S. authorities.


For proof that the drug works, marketers turn to images like the memorable one of pot-bellied septuagenarian Dr. Jeffry Life, supposedly transformed into a ripped hulk of himself by his own program available at the upscale Las Vegas-based Cenegenics Elite Health. (He declined to be interviewed.)


These promoters of HGH say there is a connection between the drop-off in growth hormone levels through adulthood and the physical decline that begins in late middle age. Replace the hormone, they say, and the aging process slows.


"It's an easy ruse. People equate hormones with youth," said Dr. Tom Perls, a leading industry critic who does aging research at Boston University. "It's a marketing dream come true."


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Associated Press Writer David B. Caruso reported from New York and AP National Writer Jeff Donn reported from Plymouth, Mass. AP Writer Troy Thibodeaux provided data analysis assistance from New Orleans.


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AP's interactive on the HGH investigation: http://hosted.ap.org/interactives/2012/hgh


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The AP National Investigative Team can be reached at investigate(at)ap.org


EDITOR'S NOTE _ Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.


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