Kit Menkin's Leasing News

                   www.leasingnews.org   Friday, August 9, 2002

  Accurate, fair and unbiased news for the equipment Leasing Industry

( posted daily at www.leasingnews.org and sent by e-mail by subscription

     with the Day in American History signature .)

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Headlines---

### Denotes Press Release

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Fed Unlikely to Cut Rates, Regardless of Rumors

Washington Post Staff Writer

Wall Street yesterday was again awash with rumors that the Federal Reserve will cut interest rates, perhaps at a policymaking meeting next Tuesday, to spur faster economic growth, and, by extension, help put a floor under stock prices. The rumors may be the product of wishful thinking.

Only three weeks ago, Chairman Alan Greenspan, speaking on behalf of the entire Fed board, told Congress that the central bank expects solid economic growth in the second half of this year and gave no hint that he had a rate cut in mind.

And last Friday William Poole, president of the St. Louis Federal Reserve Bank, said in a New Orleans speech: "Certainly everything I know says that the economic recovery will continue. Forecasters expect a recovery. The odds of a so-called double-dip recession are very, very small."

Poole spoke after a series of weaker-than-expected economic reports shook the markets last week, prompting speculation that the Fed might be considering a rate cut. Poole spoke the same day the Labor Department reported that 6,000 payroll jobs were added last month, bringing the total to just 63,000 in the last three months. Earlier in the week, the Commerce Department revised its estimates for economic growth going back to 1999, showing a modestly deeper recession last year, strong growth in the first three months of this year but then a sharp slowing to only a 1.1 percent annual rate in the second quarter. Finally, the Institute for Supply Management said its monthly survey found that manufacturing activity barely increased last month after several months of much stronger readings.

Have those pieces of economic news changed the economic outlook so drastically so quickly that Greenspan and his colleagues will scuttle their earlier expectations for the economy and lower overnight rates again?

With financial markets functioning smoothly – albeit with considerable volatility in both the stock and bond markets – a Fed action on Tuesday seems unlikely.

Even the stock market has managed to score three consecutive daily gains, with the Dow Jones industrials average up more than 250 points yesterday, and up nearly 670 points, or about 8 percent, over the past three days.

When the Fed causes overnight rates to fall, it does so by pumping more money into the nation's banking system. The added cash provides more liquidity for the entire economy, including investors in stocks and bonds. However, there is no evidence that a shortage of liquidity has been a factor in the significant fall in stock prices over the past three months; the Fed's target for the federal funds rate, the interest rate that financial institutions charge each other on overnight loans, is 1.75 percent, a 40-year low. A number of Fed officials have indicated that they do not believe that adding more would necessarily make much difference when a key problem is the ongoing corporate accounting scandals.

The stock market decline – with its potential to dampen both consumer and business spending – has caused numerous forecasters to lower their predictions for second-half growth to annual rates of 2 percent to 2.5 percent, from around 3.5 percent.

On the other hand, two of the key indicators that some Fed officials watch for early indications of where the economy is headed, initial claims for unemployment benefits and sales of new motor vehicles, both still point toward solid economic growth. The Labor Department said yesterday that initial claims fell 15,000 last week, to 376,000. The average for the past four weeks, 379,000, is the lowest in 18 months.

Meanwhile, boosted by exceptionally low mortgage rates, the housing market continues to boom, with the demand for homes lifting prices. Greenspan has said he believes that the increasing value of homeowners' equity does much more to spur consumer spending than rising wealth in stock portfolios.

The recent developments in initial claims, vehicle sales and housing all suggest that Fed officials may not be trimming their forecasts as quickly as some private economists. They also suggest that the odds are against a rate cut next week.

Even among the growing number of analysts who have begun to predict rate cuts by the Fed before the end of the year, few if any are confident that the evidence of weaker growth is impressive enough so far to result in Fed action next week.

"We have seen enough economic and financial pain [that] we have changed our baseline call for the Fed," economists Ethan Harris and Steve Slifer, co- chief economists at Lehman Brothers told their clients this week. "We now see a 60 percent chance that the Fed will cut the [federal] funds rate in the next several months.

"The precise dimensions of such a move are hard to pinpoint, but our main scenario is quarter-percentage-point cuts at the September, November and December [policymaking] meetings, pushing the funds rate down to 1 percent," Harris and Slifer said.

That prediction contrasts with that of other analysts who think that growth will be strong enough that the Fed will stick with its 1.75 percent target through the year.

"We believe Fed policy will remain on hold for the rest of 2002," Stone & McCarthy Research Associates, a financial markets research firm, told its clients Wednesday. "In light of recent circumstances, we have reduced our forecasts for economic growth in the second half of 2002 but we don't see another recession occurring. We believe the current fed funds target is accommodative, and given our projections of [economic growth in the second half of the year at] better than a 2 percent annual rate, we do not see the need for lower interest rates."

Many Fed officials also regard the current fed funds target as "accommodative"; that is, the 11 rate cuts of last year that lowered the target from 6.5 percent are still stimulating the economy because of the long lag before they are fully felt.

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New low for 30-year mortgage rates

ASSOCIATED PRESS

WASHINGTON – Rates for 30-year mortgages fell to a new low this week amid growing signs of a sluggish economic recovery.

Freddie Mac, the mortgage company, reported Thursday that the average interest rate on a 30-year fixed-rate mortgage dropped to 6.31 percent, the lowest level since the company began its nationwide survey in April 1971. Last week, rates on 30-year mortgages averaged 6.43 percent.

A year ago this time, 30-year mortgages averaged 7 percent.

This week's rate surpassed the previous low rate of 6.34 percent reached just two weeks ago.

Low mortgage rates is spurring a further boom in mortgage refinancing. Savings or extra cash coming out of refinancing deals is helping to support consumer spending and offset some potentially negative factors, such as the volatile stock market and eroding consumer confidence.

The average interest rate on 15-year mortgages, a popular option for refinancing, dipped to 5.69 percent this week, the lowest level since Freddie Mac began tracking these rates in August 1991. That compared with last week's rate of 5.84 percent. A year ago, 15-year mortgages averaged 6.54 percent.

On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 4.37 percent, down from 4.45 percent the previous week. Last year this time, one-year ARMs averaged 5.70 percent.

These rates do not include add-on fees known as points. Each loan type carried an average 0.6 point this week.

The economy grew by just 1.1 percent in the second quarter of this year, down from a brisk 5 percent pace in the first quarter. That suggests "the economy faces weak growth," said Freddie Mac's chief economist, Frank Nothaft. That spurred speculation that the Federal Reserve might cut interest rates by the end of the year, if not sooner, he added.

"That expectation, in turn, has created a boon for potential and existing homeowners in the form of lower mortgage rates," Nothaft said. "Additionally, low mortgage rates open the window to homeownership for more first-time homebuyers."

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Hot Linking the Web---New Format at www.leasingnews.org

Have you ever considered "hot linking" your Headlines to the articles that

appear below them?  Readers could simply click on the headline that

interests them and then be brought right to the beginning of the article

that they are interested in.

 As Leasing News continues to grow and cover more an more material, this feature would save it's readers a lot of time. While I sometimes get the chance to read the entire news letter from top to bottom, most times I key in on specific topics that interest me and try to read them in between phone calls, etc.

 On many occasions I've found myself pending more time scrolling than reading.   I'd presume that this is the same for many of your readers.

Kit, thanks for considering my idea, and congratulations on creating such a

well-known and industry relevant newsletter.

Jason M. Geraci

Vice President

The Leasing Store

2329 Post Rd.

Warwick, RI 02886

(401) 732-1300

(401) 736-6988 Fax

jason@leasingstore.com

Editor Responds:

We originally thought this would take 45 minutes to an hour, maybe longer.

We tried yesterday’s, and Fahima Khan did it in only 28 minutes.  You can

now click on the headline and go to the story, or scroll on line at www.leasingnews.org.

Thank you,  Mr. Geraci. When the weather is cooler, I am going to UPS you

a good bottle of wine.

The new format will be posted around 12:30pm, PDT.  You can see yesterday’s still on line at www.leasingnews.org  in the new format.  ( The Leasing News

Advisory Board liked it so much, we also converted the Bulletin Board Complaints to this format ).

Unfortunately, it is not possible to use the same format with our e-mail

newsletter. One, it is in text, and two, I would have to make two major

changes---send the e-mail out much later, which East Coast readers

would not like,  and in html format.

For those who want to know how Leasing News is put together, it starts

during the day, collecting news, often making or returning telephone calls,

following leads, going over items with staff, giving directions on projects,

and handling a lot of other tasks such as settling advance rental disputes. In

between, this I try to make a living at American Leasing, with a smaller

staff  than I had two years ago ( meaning I do a lot more. ).

From 7pm to 8pm, I work on leasing news at home, then at 11pm, I have

a routine of checking many sources, newspapers, compile news briefs,

sports story, maybe even complete the “Day in History” web search,

if I have the energy, then put stories in sequence, usually around 1am,sometimes

2am, cut some, save some stories, depending on the length.. I then proof what is

left, move it from work to e-mail,  and send to the mail server at the office ,where it takes an hour to and an hour and half to send through the internet system.  This

is the routine from Sunday night to Thursday night ( Saturday, during the day,

I usually research and compile the five “Day in American History, sometimes it spills into other days ).

By working at night, I have more time in the day for my main business,

where I make a living. In addition, I get to see the next days headlines as the newspapers go to press at 11pm, their time, so it is 2am in New York for the New York Times, the Washington Post, Boston Globe, Chicago Tribune, Detroit News, and then by that time the San Diego Tribune, LA Times, Seattle, Denver,

sometimes Dallas, it depends  and SF Chronicle. are also on line---and from time to time the San Jose Mercury, plus all the AP and other East coast generated stories are completed, as the newspapers are by that time printed, and being readied for morning delivery. There are other “services” that I also check or

follow-ups with my press pass into magazines and other source. The routine

is the same.  Sometimes I go too fast and may miss something, but not too

often.  You can tell when I am tired, as you see more typo’s I don’t catch.

In addition to this time factor, meaning by 2am I am tired (I wake up at 7am

everyday ), Leasing News is never sent in text as html often can contain a virus, plus many readers still have problems with html. My e-mail is read only in text and sent only in text.  Never any attachments.

I try and limit the size.  Except for a real slow day, when I don’t publish

anything. I try to minimize the press releases, as they are self-serving and so full of hyperbole as to make them laughable at times. I don’t have the time to re-write them or “investigate” most of them, although I have from time to time, when I thought it was necessary. The reason I put #### around them is for readers

to understand this is “hype” and not “news.”

To change the e-mail, I would have to send out in html, which I do not

want to do. The last time I tested this, all the readers were not using

html.  If I were to wait for a web person to format this, it may

not get out until 11am, PDT, which is 2pm, EDT, and that is really

too late.  So the second reason is as strong as the first.  The original

purpose of the website was for people who wanted to read Leasing

News in HTML.  I never intended to have all the features we now

have on line.

For those who do not like the text format, or for some reason don’t get

the e-mail morning delivery, please go to the website as we now have a

new format such as requested  by Jason M. Geraci.

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Equipment Leasing & Finance Foundation Donations

Thank you Steve Geller and Kit Menkin for your most generous contributions

to the Equipment Leasing & Finance Foundation!

Sincerely,

Deborah J. Monosson

Treasurer and Trustee

Equipment Leasing & Finance Foundation

debbie@bfec.com

AKA: President, Boston Financial & Equity Corporation

(If you have a $100, the Equipment Leasing & Finance Foundation can use

it.  If you have been lucky, and can afford more, it goes toward our leasing

industry. editor )

WorldCom uncovers $3.3 billion accounting problem, bringing total to $7.1 billion

By Matt Moore

NEW YORK (AP) WorldCom Inc. uncovered another $3.3 billion in bogus accounting, bring the total to some $7.1 billion.

The company also said it could find more accounting problems as it moves forward with its internal investigation.

The announcement Thursday night was the latest in a series of accounting scandals that have plagued American business this year.

Clinton, Miss.-based WorldCom, the parent of MCI, the country's second-biggest long distance company, also said it may write off $50.6 billion in goodwill and other intangible assets when it does restate its finances to adjust for the accounting problems. If it does, it would be one of the biggest such write-offs in U.S. corporate history.

The company previously reported finding $3.8 billion in accounting irregularities for 2001 and the first half of 2002. The latest discovery was made as the company reviewed its books for 1999 and 2000, with most of it tallied in 2000.

As a result, WorldCom said it would restate its financial statements for all of 2000, 2001 and the first quarter of 2002.

WorldCom, the once high-flying long-distance and Internet services company, filed for Chapter 11 bankruptcy protection July 21 with the company listing $107 billion in total assets and $41 billion in debts. It was the biggest bankruptcy filing in U.S. history.

Thursday's additional restatement comes amid a string of accounting scandals that has tarnished some of the nation's largest firms, felling once mighty companies like Enron and Global Crossing. The fallout from the revelations of corporate malfeasance has severely shaken investor confidence, pummeling stocks and pension funds.

WorldCom spokesman Brad Burns said the figures announced Thursday have already been reported to the Securities and Exchange Commission and that the additional findings won't impact the company's ability to keep operating.

''The company identified the financial issues to the investigative authorities and we are working hard to get the company back on solid financial footing,'' Burns said.

Burns said investors and creditors should be aware that additional amounts of improperly reported pretax income and earnings before interest, taxes, depreciation and amortization could be discovered and announced.

He said the company issued the warning as part of its policy of being ''open and forthright.''

Arthur Andersen LLP had been WorldCom's auditor until May. KPMG LLP is now auditing WorldCom's financial statements for 2000-2002. Until that is finished, the total impact won't be known, the company said.

The accounting fraud that occurred in 2000 is said to differ from the techniques used in 2001 and 2002, according to a report Thursday by the financial news network CNBC.

In the latest case, the report said, Sullivan is believed to have used a variety of techniques to bolster operating income, including reversing reserves for bad debts into operating income.

Last week, two former executives chief financial officer Scott Sullivan and controller David Myers were charged with hiding the nearly $4 billion in expenses and lying to investors and regulators in a desperate bid to keep the company afloat.

But whether the company's former chief executive, Bernard Ebbers, had knowledge of the deceptive accounting hasn't been determined.

In an interview Thursday night with financial news network CNBC, Ebbers' attorney said his client had nothing to do with the decisions made at the company.

''I'm certain of this. When the investigation is done, there will not be a shred of credible evidence that Bernie Ebbers had a thing to do with those (accounting) decisions,'' said Reid Weingarten of Steptoe & Johnson LLP, a Washington, D.C- based law firm. ''Accounting decisions are arcane. They're mysterious for people who are not trained in the science. Bernie Ebbers certainly was not.''

On the Net:

http://www.wcom.com

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Timeline of the history of WorldCom

By Associated Press

Important dates in the history of WorldCom Inc.

1983: At a Hattiesburg, Miss., coffee shop, founders Bernie Ebbers, Bill Fields, David Singleton and Murray Waldron work out details for starting LDDS, or Long Distance Discount Service. The company name is suggested by a waitress.

1984: LDDS sells its first minute of long distance to the University of Southern Mississippi.

1988-94: LDDS acquires more than a half-dozen communications companies and expands its reach throughout the United States.

1994: LDDS acquires IDB WorldCom, an international company.

1995: LDDS changes its name to WorldCom Inc. with Ebbers as CEO.

1996: WorldCom Inc. acquires UUNET Technologies Inc. through merger.

Nov. 10, 1997: WorldCom and MCI announce $37 billion merger.

1998: WorldCom acquires Brooks Fiber Properties and CompuServe.

June 21, 1999: WorldCom stock peaks at $64.50.

1999: Worldcom and Sprint announce a $115 billion merger agreement, which is called off in June 2000.

2000: WorldCom's sagging stock price forces Ebbers to sell 3 million shares in the firm to pay off debts.

Feb. 28, 2001: WorldCom lays off about 6,000 workers nationwide.

April 29, 2002: Ebbers resigns as CEO, replaced the next day by John Sidgmore.

June 14: Sidgmore announces WorldCom will lay off 17,000 workers.

June 24: WorldCom stock drops below $1, closing at 91 cents.

June 25: WorldCom admits to inflating earnings by $3.8 billion. The stock falls to 20 cents.

June 26: Securities and Exchange Commission files fraud charges against WorldCom Inc.

July 21: WorldCom Inc. files for Chapter 11 bankruptcy protection.

Aug. 1: Former WorldCom chief financial officer Scott Sullivan and controller David Myers arrested on charges of securities fraud, conspiracy and filing false statements with the Securities and Exchange Commission.

Aug. 8: WorldCom says another $3.3 billion in improper accounting discovered, bringing total to $7.15 billion.

Leasing Association Editorial

This Monday’s leasing news

http://www.leasingnews.org/Conscious-Top%20Stories/Half-Year_Reporl.htm

was a half-year review of equipment leasing

associations. The only two comments came from Industry guru Bruce Kropschott

and intellectual Jeffrey Taylor.  They made their comments private, and were

not looking for “publicity,” they both told me.

I really expected a lot of complaints for telling it like it is.  In the summation,

I said I was “appalled” more professional did not join an association that

fit their needs and personality.

The reason I did not say “surprised,” as most business people are too wrapped

up in their day-to-day operation to look at the larger picture. It does not only

apply to leasing associations, but community responsibilities.

In the City of Santa Clara, where I served as president of the chamber of

commerece, I think for three years, and on the board for longer, it was only

the few who supported the concept of improving business, having a voice for

business matters, and improving your community.  Today there are 8,800 licensed

businesses here, and only 800 members.  Over 100 of these members are “ out of

town,” who want to get involved with the convention bureau or attract business

to their location.  This is less than ten percent.

In San Jose, where I am also a chamber of commerce member, there are 64,000

licensed businesses, but only 2,000 members.  That is about 3 per cent.

Unfortunately, that is about the average for the Equipment Leasing Association

and 2 percent for the rest.  Maybe the proportion for others is different, as

the Eastern Association of Equipment Lessors and National Association of

Equipment Leasing Brokers have more of a “nice” market place, one geographical, and the other, a defined segment of the market place.  Maybe

they have a higher percentate---five to ten percent.

If the associations were baseball players, their batting average would be

pretty low.  Why is that?  I was hoping readers might respond, agree or

disagree with the article, state their own opinion.  What I found was apathy;

people don’t care.  Is that why leasing associations don’t have more members?.

We don’t care about our industry?  We don’t care to participate? Let someone

else do it. I’m too busy. I’m not doing that well to make the time?  Leasing

Associations are a bunch of “good ole boys.” What have they done for me

lately?

Are we that self-centered and lazy that we don’t give a damn?

Kit Menkin---editor/publisher

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Oakland Fraud Alert----

http://www.leasingnews.org/#fraud

Will you please publicly thank Serena of the Sexton Companies for her

work on the fraud alert.  She is the person who called me and confirmed

that she had discovered the fraud.  I did not mention her name or the

name of the Sexton Companies in the post because I had not checked with

John Sexton regarding the use of his name. I have since had the

opportunity to communicate with him.  In fairness to Serena, it was her

hard work and dedication that made several factual discoveries that I

had not yet made.  Her call completely confirmed my suspicions regarding

this transaction.  As such, we should recognize her for going the extra

mile and saving one, or more of us a lot of money and heartache.

Bob Rodi, CLP

President

LeaseNOW, Inc.

www.leasenow.com

drlease@leasenow.com

1-800-321-LEASE (5327)

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Fraud ALert: Palo Verde Women's Health (Dr. Johannes Ramirez)

Now that we have received this deal from two (2) different brokers and LPI Financial has looked at them for working capital, I believe it is time

for your readers to beware of this deal.

DETAILS

-OBGYN (Ramirez) is purporting to want equipment for his medical practice

-He just "purchased" BAP Productions, Burbank, CA, a movie producer

-We have looked at equipment totaling upwards of 500K, all billed to the

 medical practice at the practice's address

-Equipment lists provided were confirmed to be "post production equipment"

-At least one invoice was whited out and a medical imaging company's letterhead used in an attempt to sell movie studio equipment

-Originating broker was out of Louisville, KY, who claims to have done several leases for this doctor

Thanks

bmarks@blik.com

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“Power Tools for Successful Leasing” Labor Day Sale

As the editor of the 8th most popular site - www.leaselawyer.com (articles and cases on leasing law), I really appreciate your posting this

study.    Readers might like James Johnson's & my new one: www.leasingpress.com, which features movies on finance!

Barry Marks

http://www.leasingnews.org/#alexa

Through Labor Day Week-End, our best-selling Power Tools for Successful Leasing and Technology Leasing: Power Tools for Lessees are

available at 25% to 33% off the regular price, plus free shipping and handling.  Titles may be reviewed and ordered at www.leasingpress.com

In addition, over 70 websites of value to the leasing community have been hyperlinked at www.leasingpress.com/leasing_websites.htm

AND, over a dozen of our leasing articles are available for complimentary download at www.leasingpress.com/leasing_articles.htm

Just for fun, we have created annotated hyperlinks to over 100 movies with finance themes at www.leasingpress.com/Movies.htm

James M. Johnson, Ph.D.

Graduate School, Northern Illinois University

www.leasingpress.com

Barry S. Marks, Esq.

Berkowitz, Lefkovits, Isom & Kushner

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Leveraging the Web---PDF Report

Sent in by a reader, here is a 41 page report “High Touch Leveraged by High Tech”, “The Impetus: Cost Savings and Revenue Potential.”

Companies given a snapshot include:

  Pure Markets and LeaseNow

  eCredit

  Capital Stream

  Cyence

  Leaseteam

  Livecapital

  eFinance

  Wiredcapital

  Lendx and Leaseforum

Although written in March, and there have been several changes, the report

may provoke thought to those interest in “Leveraging the Web.”

http://www.leasingnews.org/PDFFiles/Celent%20Equip.Finance%20report.PDF

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41^ST ELA Annual Convention Information Now Online

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"Leadership Matters"

41st Equipment Leasing Association Annual Convention

October 13-15

San Francisco Marriott

There are Leadership Matters and Leadership DOES matter--especially today.

The 41st ELA Annual Convention focuses on leadership and its importance in

maintaining the position that the lease and other structured finance

products enjoy today.

Convention information is available on line at:

http://www.elaonline.com/events/2002/AnnConv/

(First time non-members are invited, as well as those who

have not attended more than one workshop. See ELA policy.)

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10.    Extended Hotel Cut-off for Sept. 9-11 Lease Accountants Conference

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Good News!  The hotel cut-off date for the Equipment Leasing Association Lease Accountants Conference has been extended to Friday, August 16th, 2002.  A special rate of $209 single/double at the Mayflower Hotel in Washington, DC, is offered to attendees that make their reservations before the cut-off date.  We know you have a few more days to make your plans, but please make your reservations

NOW if you plan to attend this conference, by calling the hotel directly at

(202) 347-3000.

For complete details, to register, and to download a PDF file of the

conference brochure, go to:

http://www.elaonline.com/events/2002/leaseaccts/, or email Janet Fianko at

jfianko@elamail.com for the brochure to be mailed to you.

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( excerpt from Equipment Leasing Association Thursday Newsletter )

Lending to state and local governments is a unique business.  Do you know

the differences between commercial and municipal leases?  Given all the

different state statutes, have you determined how to structure and document

these annual appropriation transactions?  You will find answers to these and

other questions at the ELA Municipal Leasing Forum, scheduled September

25-27, 2003 at the Westin Tabor Center in Denver, Colorado.  Panelists and

presenters are seasoned executives who will share their success and survival

stories working in this unique, often counter-cyclical, municipal leasing

segment. 

For complete details, to register, and to download a PDF file of the

conference brochure, go to: http://www.elaonline.com/events/2002/municipal/,

or email Janet Fianko at jfianko@elamail.com for the brochure to be mailed

to you.

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Tipper Gore Ponies Up for the Boss

Bruce Springsteen performs in New Jersey on Wednesday, Aug. 7.

By Roger Friedman  Fox News

Tickets to Bruce Springsteen's tour are pretty hot stuff. They're hard to get, but they're not too expensive at $77 — compared to recent Paul McCartney and Prince shows. But not everyone wants to pay for them.

Take, for example, former Vice President Al Gore and his lovely wife, Tipper. Sources close to them and to Springsteen tell me Tipper tried to get free tickets to the Springsteen show for the entire Gore staff. That didn't work, and she was then told even paid admission would be hard to come by.

"They wound up being offered four," says a source. "But when they were asked to pay $75 apiece, they said forget it. And you know, that's why Gore isn't president, in a nutshell."

A Gore spokesman disputed the report as inaccurate, and denied Mrs. Gore tried to score free tickets. By late afternoon on Thursday, after the story was first reported on Foxnews.com, the ex-second lady herself called and left a message saying she was indeed "treating friends" to the concert, adding she "was planning to pay for the tickets, and always have been."

AP

Springsteen, Patti Scialfa, and Steven Van Zandt perform 'Lonesome Day' on Wednesday, Aug. 7.

Meanwhile, after the Springsteen show at the Continental Airlines Arena last night, Oscar- nominated actress Elizabeth Shue was one of many people who stuck around and tried to go backstage to congratulate Bruce on a job well done. But Shue was shoo-ed away — as were most of the others who milled around, including a group of polo shirt-and-khaki-wearing yuppie types. They sported laminates around their necks, but why they wanted to see Springsteen is a mystery. During most of the show they spent their time going back and forth to the beer carts in the lobby. When Springsteen sang his new songs, they belched out, "'Thunder Road,' man! 'Play Thunder Road!'"

Springsteen Recalls Sept. 11, But Without False Sentiment

The opening night of Bruce Springsteen and the E Street Band's 46-city tour was unique for many reasons. The main one, I think, is that Springsteen, after issuing a masterful new album of songs celebrating and mourning firefighters and others who died on Sept. 11, threw the audience a curve ball.

Rather than let this album be misinterpreted — as Born in the USA was by many — Springsteen pulled off a stunning performance of his controversial song "American Skin (41 Shots)." It was one of the most brilliant and courageous things I have ever seen executed by a rock star.

After all, "American Skin" is a clear reference to the Amadou Diallo shooting, when four New York Police Department officers fired 41 shots at a man in the doorway of his apartment building. Many people probably thought that, because Springsteen had shown such empathy to the Sept. 11 heroes and victims, "American Skin" was forgotten or shelved forever. The fact Springsteen is including it in these shows — when he could choose from dozens of other more popular, lighter-weight songs — speaks volumes for him.

Here, was Springsteen performing to a crowd of "his people": the local New Jerseyans who are his constituency. But there was a disconnect. This crowd wanted to hear "Born to Run" and "Thunder Road" (see above), to wave their clenched fists in the air and chant "Born in the USA." But Springsteen the artist is working in a different medium right now. His album, The Rising, is full of the kind of poetry that fueled his first two recordings. The songs are precise and heartbreaking — not about having a kegger and throwing up, or being nostalgic for high school days. The Rising addresses something real and tragic that has happened. This seemed to throw the crowd in many ways.

Only during "Waiting on a Sunny Day," an up-tempo pop song, did the audience at the Continental Arena embrace the new material. In fact, as they sang along, Springsteen twice said, "I'm impressed! This is the first time!"

In fact, that moment gave hope that the crowd had really listened to The Rising But during the album's three key numbers — the exquisite "You're Missing," "Empty Sky" and "Into the Fire" — an aerial view of the arena would have shown a room quickly balding of people. Even in the so-called "VIP" area, invited guests (I could only think of calling them "youts," from My Cousin Vinny) talked loudly and ate like they had been on a desert isle.

It was only when Springsteen finally did perform "Born to Run" and "Glory Days" with the lights up that we could all see the party atmosphere for Bruce, circa-1984, take hold. Compared to the somber, mature material of "The Rising," it felt like schizophrenia had settled into the room. Springsteen may have sensed it, too. When it came time to sing "Born in the USA," he slowed it down and seemed to make it deliberately morose and angry. The lighting even changed, starting in near darkness and never lightening up enough to turn the song into a cheer of any kind.

The show ended not with a hit, or a populist rouser, but two new Springsteen classics: "My City in Ruins" and "Land of Hopes and Dreams." Preceding the former song, Springsteen spoke first about Asbury Park, New Jersey — how it was changing and improving, and mentioned charities that were present to collect money that night which helped the poor and the hungry. (They were largely ignored by the crowd.) "My City in Ruins" had been written originally for Asbury Park, but was subsequently adapted to the Sept. 11 tragedies. It met, as "American Skin" did, with a muted response. How completely bizarre. In the 1970s, if Paul Simon had performed something similar, it would have been revered and given the Grammy for Best Song. Here it was greeted with apathy.

And while the audience may have been sub-par, Springsteen and the E Street Band were spectacular on every level. Max Weinberg is driving the band behind a wall of powerful drums. Steve van Zandt's and Nils Lofgren's work gives Bruce more depth and texture. Clarence Clemons' saxophone is still the joyful noise of a trademark, like Stevie Wonder's harmonica. The women, Patti Scialfa and Soozie Tyrell, do the important embroidery, while Garry Tallent, Roy Bittan and Danny Federici are like the Scotty, Zulu and Chekhov of the Starship Enterprise: the finely-tuned machine doesn't work without them.

Shows Will Not Be Marathons

For Springsteen fanatics, there are some interesting tidbits about opening night. Nearly all of The Rising was performed, while only a few old songs were mixed in before the encores. Four of those songs — "Badlands," "Promised Land," "Prove it All Night" and "Darkness on the Edge of Town" — come from one album, named for the latter song and released in 1978. There's one clunker — "Two Hearts" — which should be removed and never heard again. And while the set will undoubtedly change a bit, it will not lengthen. Both Lofgren and Tallent told me before the show that Springsteen wants to keep it concise. None of those famous four-hour long shows from years past. This one runs a tidy two hours and fifteen minutes, give or take.

And what are the band's favorite songs from the new album? Tallent said, "'Waitin' on a Sunny Day,' because it just fell into place and it was obvious." Indeed, it could be a hit single. Also: "'Into the Fire,' it's so beautiful." Lofgren likes "The Rising," but also chose "Nothing Man." My own personal favorite is still "You're Missing," which, like "My City of Ruins," should get some kind of award. In the meantime, it will be interesting to see how the Manhattan audience responds next Monday to the Sept. 11 material. My guess is they will take it more seriously and show more appreciation for Springsteen's art.

News Briefs----

FCC votes to require digital tuners on all television sets by July 2007

WASHINGTON (AP) Within five years, all but the smallest new televisions must be able to receive digital broadcast signals, federal regulators ordered Thursday, pushing the TV industry another step closer to the elusive promise of consistently vivid pictures and crisp sound.

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Stewart should be subpoenaed to testify before Congress, lawmaker says

WASHINGTON (AP) A lawmaker said Thursday that a House panel may need to subpoena Martha Stewart, while a former Securities and Exchange Commission official suggested that her legal prospects appear unfavorable

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Government forces regular security audits for Microsoft Internet service

WASHINGTON (AP) Microsoft Corp. must put its Passport Internet service through regular security checks for the next two decades after the federal government determined the company deceived consumers about how well it protects their personal information.

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Nation's power grid holding up this summer despite record demand in some areas

WASHINGTON (AP) Despite high temperatures that produced record demands on utilities in some parts of the country, the nation's electric systems have handled this summer's scorching heat waves with power to spare

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CBS Sports announces broadcast pairings for 2002 NFL season

Jim Nantz Hosts THE NFL TODAY with Newcomers Dan Marino, Boomer Esiason and Deion Sanders

Greg Gumbel and Phil Simms Lead THE NFL ON CBS Game Coverage while Dick Enberg and Dan Dierdorf Solidify Network's Lineup

Randy Cross Moves from Studio to Team with Kevin Harlan as Game Analyst

The CBS Television Network's 43rd year of broadcasting the NFL begins on Sunday, Sept. 8 (12:00 Noon-4:00 p.m., ET) as a new edition of the THE NFL TODAY studio show premieres with Dan Marino, Boomer Esiason and Deion Sanders joining host Jim Nantz.

CBS Sports' complete roster of announce teams for its 43rd year of NFL coverage was announced today by Sean McManus, President, CBS Sports, and Tony Petitti, Executive Producer, CBS Sports.

Greg Gumbel and Phil Simms, with Armen Keteyian reporting, begin their fifth year together as the lead announce team for THE NFL ON CBS. Dick Enberg and Dan Dierdorf, along with Bonnie Bernstein reporting, solidify the Network's lineup by having two of the top NFL announce teams in sports television.

Jim Nantz anchors THE NFL TODAY, the CBS Television Network's hour-long pre-game studio show, along with newcomers Marino, Esiason and Sanders, live from THE NFL TODAY outdoor studio on Fifth Avenue and 59th Street in New York City.

Marcus Allen and Lesley Visser will serve as feature reporters, while Mike Ditka will serve as a contributor, and Jill Arrington as reporter for the show.

Other additions to the Network's NFL lineup include former studio analyst Randy Cross joining Kevin Harlan and reporter Beasley Reece as a game analyst for THE NFL ON CBS, and Craig James joining Bill Macatee and/or Craig Bolerjack for selected games throughout the season.

Following are the Network's NFL announcer pairings for the 2002 season (play-by-play/analyst/reporter):

Greg Gumbel/Phil Simms/Armen Keteyian

Dick Enberg/Dan Dierdorf/Bonnie Bernstein

Kevin Harlan/Randy Cross/Beasley Reece

Gus Johnson/Brent Jones

Ian Eagle/Solomon Wilcots

Don Criqui/Steve Tasker

Bill Macatee or Craig Bolerjack/Craig James

Tim Brando/Spencer Tillman

Larry Cavolina is the coordinating director and lead game director for THE NFL ON CBS, and Mark Wolff

is the lead producer. Eric Mann is senior producer for THE NFL TODAY, while Bob Matina directs.

Madden Serves Up a Turkey on Monday Night

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By Robert Weintraub

When the producer of Monday Night Football, Fred Gaudelli, was asked how long it would take for the new announcing "dream team" of Al Michaels and John Madden to mesh, he replied, "I would be shocked if it didn't happen right away." Well, consider Mr. Gaudelli shocked, because it sure didn't happen in last night's MNF preseason debut.

It can't really come as any surprise that there will need to be an adjustment period, even with two booth vets like Madden and Michaels. They stepped on each other a few times, and many of Al's setups fell flat. Michaels' attempts at humor, like mentioning a collegiate wrestler having a fallback in Vince McMahon's WWF and noting that a player named Wesly Mallard naturally went to the University of Oregon (nicknamed the Ducks), were ignored by Madden. As the New York Giants controlled the game early, Michaels said, "John, at this point the Texans look like the expansion team, while the Giants are playing like the tried and true team they are." Madden, who was watching a replay, replied, "Ike Hilliard, he's a bigger guy, like 210 [pounds]." It worked the other way, too—Madden's mention of a 30-play limit for Houston Texans rookie quarterback David Carr brought an esoteric reference to "30" being code for "story finished" in newspaper wire copy, a pun only the dearly departed Dennis Miller could appreciate.

More worrisome was the production value of the broadcast. I know it was an exhibition game played in a high- school stadium and that ABC might not be revealing all its bells and whistles, but last night's MNF debut got off to a shockingly amateurish start. The opening commentary from Madden was deemed so reverential an event that the standard practice of showing the players being talked about (called B-Roll in the trade) was eliminated. Hence, no shots of No. 1 overall draft choice Carr in the moments before his first game. The audio tech, who hopefully was fired immediately post-game, then managed to forget to turn Madden's mike on after the return from break, and other audio snafus plagued the telecast for most of the first half. Graphics