Apple takes investors on a wild ride

SAN FRANCISCO — With only modest expectations, Robert Leitao of Santa Clarita made a decision in 1994 that would change his life. He bought Apple stock.

This was several years before Steve Jobs returned to resurrect Apple, long before the iPod, the iPhone or the iPads that would make Apple the most valuable company in the world. A $1 investment in Apple at the start of 1994 is now worth about $70.

"Even with the recent sell-off, I'm still doing very well with the stock," said Leitao, who works as director of operations at a Catholic church in Burbank. "Apple provided for a down payment on our home for our blended family of four kids."

Leitao is one of the countless people whose lives have been touched by Apple's stock, which has become a global economic force. It is now one of the most widely held stocks, and the most valuable. Even as Apple Inc.'s market value fell to $480 billion on Friday, it was still larger than the gross domestic product of Norway or Argentina, and more than the combined value of Google Inc. and Microsoft Corp.

Yet that astonishing size and economic influence is also what, many analysts believe, contributes to the extraordinary volatility that can make owning Apple's stock a hair-raising experience.

It was inevitable, analysts say, that after Apple's stock rose 74% in the first nine months of this year, a huge wave of selling would occur as fund managers locked in their profits. And yet, in recent years, these huge dips have been followed by even bigger run-ups that led to new record highs, a dynamic that one trader refers to as the "Apple slingshot."

That pattern has some analysts betting Apple will soar above $1,000 a share in 2013, a scenario almost guaranteed to drive the global obsession with the company's stock into an even greater frenzy.

"The impact on shareholders and on the economy is incredible," said Howard Silverblatt, senior index analyst for S&P Dow Jones Indices. "We've not seen anything like this in the modern trading era. Ever."

Even after the remarkable decade of Apple's revival, the company's stock managed to reach new milestones this year. Early in 2012, Apple became the sixth company ever to surpass $500 billion in market value. In August, it became the only company in history with a market value topping $622 billion.

That performance affects just about anyone who has a 401(k) account or a pension. According to FactSet, a research firm that tracks investment funds, 2,555 institutional investors — mutual funds, hedge funds and pension funds, among others — owned stock in Apple, just behind the 2,590 that held Microsoft stock, as of Sept. 30, the most recent date funds had to disclose their holdings. However, the value of that Apple stock held by institutional investors on that day was $427 billion, compared with $172 billion for Microsoft, according to FactSet.

Silverblatt said the only company that has come close to having such a strong influence on the broader stock markets since World War II is IBM in the early 1980s, when the PC revolution was just getting started. But not only is the value of Apple's stock remarkable, so is its volatility. Such large stocks rarely have such big, quick swings.

Apple shares peaked at $702.10 on Sept. 19, up from $401.44 at the start of the year, a run that astonished analysts. But just as remarkable has been its collapse, falling as low as $505.75 in intra-day trading Nov. 16.

"It's just amazing because it's such a large company," said Brian Colello, a senior research analyst at Morningstar. "The company lost about $35 billion in market cap in one day. That's the size of some large-cap stocks."

Yet such swings have become commonplace for Apple stock. Before its latest swoon of 23.4% since its September high, Apple had experienced three previous corrections of more than 10% over the last two years.

The value of Apple's stock and its extreme swings have made researching it and trading it almost a full-time job for some people. Jason Schwarz of Marina del Rey edits EconomicTiming.com, which sends out up to five newsletters each week to its 1,000 clients that focus in large measure on Apple. He also helps run Lone Peak Asset Management, which has about $500 million in assets.

Schwarz says that what he calls the "Apple slingshot" is actually a virtue of the shares.

"The extraordinary volatility is the result of Apple's strength," Schwarz said. "People try to blame the volatility on Apple's weaknesses."

Schwarz and many other Apple believers argue that people are making a big mistake when they try to understand the stock's behavior by focusing on various bits of bad news such as an executive shake-up, the Maps controversy or questions about market share or competition. They have almost nothing to do with the regular hits taken by Apple shares, the argument goes.

Instead, folks like Schwarz say more technical factors are at work, such as the fact that the fiscal year for many stock funds ends Oct. 31. When the stock peaked in September, many fund managers rushed to sell to lock in profits for the year. Apple stock makes so much money for so many people, then plummets when shareholders pause to reap their profits, Schwarz says.

The volatility has continued in recent weeks, the argument goes, because fears of higher taxes next year have many fund managers trying to take advantage of short-term swings to make bigger profits. That volatility offers tantalizing windows for huge, short-term profits for investors willing to take the risk.

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School shooting postpones Cruise premiere in Pa.

NEW YORK (AP) — The U.S. premiere of the Tom Cruise action movie "Jack Reacher" is being postponed following the deadly Connecticut school shooting.

Paramount Pictures says "out of honor and respect for the families of the victims" the premiere won't take place Saturday in Pittsburgh, where "Jack Reacher" was filmed.

The premiere would've been Cruise's first U.S. media appearance since his split from Katie Holmes over the summer. It was to be more contained with select outlets covering and a location away from Hollywood or New York.

A proclamation ceremony for Cruise had been planned with Pennsylvania Gov. Tom Corbett and Pittsburgh Mayor Luke Ravenstahl.

No new date for the premiere has been set. The movie opens Dec. 21.

Friday's massacre at a Newtown, Conn., elementary school killed 20 children and several adults.

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The Neediest Cases: Disabled Young Man and His Protective Mother Deal With Life’s Challenges

Though he would prefer to put his socks on without his mother’s help, Zaquan West, 25, does not have a choice.

Michelle V. Agins/The New York Times

Joann West is a constant caretaker for her son, Zaquan. Though Ms. West works as a receptionist, the family fell behind on rent.

For the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.

Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.

2012-13 Campaign

Previously recorded:

$3,104,694

Recorded Thursday:

$137,451

*Total:

$3,242,145

Last year to date:

$2,862,836

*Includes $596,609 contributed to the Hurricane Sandy relief efforts.

The Youngest Donors

If your child or family is using creative techniques to raise money for this year’s campaign, we want to hear from you. Drop us a line on Facebook or talk to us on Twitter.

A genetic disorder has encumbered Mr. West all his life, but he has needed assistance with this particular task since only last year. In November 2011, he had surgery to remove a cancerous tumor on his left thigh that was as big as a football, but he was left less flexible.

“He doesn’t do well with disability, with the label,” his mother, Joann West, 55, said. “He doesn’t tell people that he has a disability. If they can’t see it, they just can’t see it.”

When her son was 13 months old, Ms. West learned he had neurofibromatosis, a disorder that causes tumors to grow on the nerves and, in some cases, to infringe on vital organs, or as was the case last year, to become malignant. It also creates large bumps on the skin known as nodules.

At ages 5 and 8, Zaquan had operations to remove neurofibromatosis clusters that were eating away at his left hip bone. The disease has left his left leg a few inches shorter than his right. After each operation, he had to relearn how to walk.

Because of his physical disability, he was placed in a special-education class at school and given the same homework every night, his mother said.

“I advocated for him,” Ms. West said. “I kept fighting, because he was no dummy. He was physically impaired, not mentally. I went out of my way to try to give him a better life. The system would have failed him more than it did if I hadn’t stepped in.” Her efforts led to his being moved from a special-education classroom to a regular one in second grade.

Ms. West, a single mother, acknowledges that her protective instincts made her a very controlling parent, and she did not allow Zaquan out of the house much, which limited his friendships.

“I was afraid for him,” she said. “The streets, they don’t care about your disability.”

When Mr. West entered high school, it was the first time he had truly been away from his mother’s watchful eyes. He began skipping class, often going to the park or wandering their Bedford-Stuyvesant, Brooklyn, neighborhood with truant friends. He eventually dropped out of school.

“It was just me being out on my own and making my own choices,” Mr. West recalled.

Though she did not agree with her son’s decisions, Ms. West said that his need to explore was in some ways a result of her actions. “At a point, I stepped back,” she said, “to allow him to do certain things on his own and do what he wanted to do.”

In 2007, a couple of years after he dropped out, Mr. West joined the Door, an organization focused on empowering young people to reach their potential. There, he obtained his high school equivalency diploma.

Today, Mr. West is job hunting so that he can help pay his and his mother’s expenses.

But paying the monthly bills has become a struggle, Ms. West said, in part because of a recent change in her budget. In August, after an increase in income, they stopped receiving $324 a month in food stamps. The additional income did not cover all their expenses, however, and Ms. West eventually fell behind in the rent on their apartment.

Ms. West, who has been employed in various administrative jobs, currently works as a receptionist for Howie the Harp Advocacy Center, an agency that provides employment help to people with psychiatric disabilities. Her annual salary is about $25,000 before taxes. Her son receives $646 in Social Security disability benefits. After the family’s food stamps were cut off, Mr. West applied individually, and he now receives $200 in food stamps each month.

With the addition of Mr. West’s disability benefits and food stamps, their net monthly income is $2,213. Their contribution for the Section 8-subsidized apartment Ms. West has lived in for the past 30 years is $969.

Knowing she was in need of help, Ms. West’s boss told her about the Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. And the society drew $1,598 from the fund to cover her debt.

Ms. West remains a constant caretaker for her independent-minded son, who, she says, has come to accept her help grudgingly. She says that even if they are not on speaking terms after a disagreement, she is there to lend him a hand.

Both are continuing to deal with the inevitable challenges: Mr. West is awaiting word from doctors on whether a new growth in his lungs is cancerous. But one of his greatest assets, given all that he has overcome, is that he is comfortable in his own skin.

“I’m just always going to be me,” he said, “so why deal with somebody else?”

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Halle Berry joining the ranks of secretive home sellers

Hot Property columnist Lauren Beale talks with Bret Parsons of the John Aaroe Group.

Actress Halle Berry is trying to sell her Hollywood Hills West house. The home's motor court was the site of a Thanksgiving Day altercation between her former boyfriend, model Gabriel Aubry, and her fiance, actor Olivier Martinez, that landed both men in the hospital.

The property is being shown and marketed off the Multiple Listing Service in what is known as a pocket listing for $15 million. The five-bedroom house has 5,900 square feet of living space and sits on more than half an acre with a 1,400-square-foot guesthouse, a swimming pool and spa.

Berry bought the home in 2005 from former "Malcolm in the Middle" star Frankie Muniz for $5.995 million. She and Aubry had been involved in a custody battle.

Berry, 46, has starred in the "X-Men" movies and "Die Another Day" (2002). She won an Oscar for best actress for "Monster's Ball" (2001). The former model and Martinez starred this year in the film "Dark Tide." Berry also starred with Tom Hanks this year in "Cloud Atlas."

Billy Rose of the Agency in Beverly Hills has the pocket listing, according to area real estate agents. He should be familiar with the property. He is also a onetime owner of the house, property records show.

Malibu pad is celebrity magnet

A beachfront house in Malibu that was rented at different times this summer to Usher and Sean Combs is for sale at $16.75 million. The house was listed at $100,000 a month but the amount each singer paid was not disclosed.

The Cape Cod-inspired two story, built in 1994 and sitting on more than half an acre, has 80 feet of beach frontage, a front lawn and gardens. Features include skylights, an office, a bar, a wine room, four fireplaces, a sauna, two master suites, four additional bedrooms and a total of six bathrooms in 5,653 square feet of living space.

The property last changed hands in 1985 for $1.3 million, public records show.

Wendy Carroll of Westside Estate Agency in Malibu is the listing agent.

Another notch in his beach belt

Oracle Corp. head Larry Ellison is buying yet another house along Malibu's Carbon Beach. This will be his 10th residential purchase along the coveted stretch of sand called Billionaires' Beach for its wealthy homeowners.

The seller is film and TV producer Jerry Bruckheimer.

The beachfront house, which was not listed for sale, has 70 feet of ocean frontage, three bedrooms, three bathrooms and 2,239 square feet of living space, public records show. The sale price is not known at this time. The assessed value of the property is more than $3.65 million.

Ellison already owns the houses on either side of Bruckheimer's home. Nearby neighbors include entertainment mogul David Geffen, former Dodgers Chief Executive Jamie McCourt and business magnate and former junk bond king Michael Milken.

In addition to the Carbon Beach houses, Ellison owns commercial property along the sand that includes the Nobu Malibu restaurant as well as other Malibu properties.

Ellison, 68, is ranked the third-wealthiest person in the U.S. by Forbes, with a net worth of $41 billion. Known as a real estate trophy hunter, he made an estimated $500-million deal this year to buy 98% of the Hawaiian island of Lanai.

Bruckheimer, 67, is executive producer of the Emmy Award-winning reality competition show "The Amazing Race" (2001-present) and multiple "CSI" series. His film work includes the "Pirates of the Caribbean" movies.

The one-third-acre property previously sold in 1987 for $2.4 million.

No real estate agents are involved in the sale.

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The last call for a skid row era at King Eddy Saloon

Wire-thin and slumped like a question mark, James Maley nurses a watered-down whiskey at the battered bar inside the King Eddy Saloon. Around him a boisterous crowd presses in. Maley taps a cracked fingernail nervously on his glass and stares warily at the newcomers.

They've come to see novelist John Fante's son, Dan Fante, read at the bar that inspired his father's 1939 classic "Ask the Dust." They're also here to experience skid row's last dive bar before it shuts down for renovations on Sunday.

"If this happened every day, I would never show up," says Maley, who lives in transitional housing a few blocks away.

Other time-worn regulars, many with leathery skin, bad teeth and watchful eyes, nod in agreement. The bar provides home and family for those who have neither. They come for community and to spend what little money they have on plastic pitchers of beer and $2.50 gin and tonics.

PHOTOS: Last Call at King Eddy Saloon

When the Fante reading ends, the interlopers quickly disperse.

"There go the slummers," says John Tottenham, a poet who has been coming to the King Eddy since the 1980s.

Chances are the crowds will be back when the bar reopens under new management. The owners plan to use old photos to restore the bar's Midcentury look. They hope to renovate the abandoned speak-easy in the basement and open the bar's windows that are covered by stucco, letting natural light into the place for the first time in decades.

They haven't finalized their plans, but one thing is for sure. Drinks won't come cheap at the new King Eddy.

The bar is located on the corner of 5th and Los Angeles streets in the King Edward Hotel, which was built in 1906 and was a tony destination for visitors to what was once a thriving commercial district. The hotel now provides low-income housing for many of King Eddy's regulars.

The pre-Prohibition era King Eddy is painted black. With neon beer signs providing most of its light, the room is dim and gloomy. Its black-and-white checkered floor is grimy. Plastic beer flags hang from the ceiling and the place smells of stale smoke and disinfectant.

The bar itself, shaped in a square, commands the center of the room, with cracked vinyl banquettes lining the perimeter. A glassed-in smoking space is set off to the side. Behind the bar is a tiny fluorescent-lighted kitchen where prepackaged burgers, pizza and sandwiches are heated in a microwave. A beer and burrito would set a person back only $4.

Next week, Maley and the other dislodged drinkers will have to find another bar, but they face a new downtown landscape of high-end mixology bars, restaurants and Brazilian waxing salons.

"I haven't the faintest idea where they'll go," says bar manager Bill Roller, 75, who has worked at the King Eddy for more than 30 years.

King Eddy opened in 1933 and has one of the oldest liquor licenses in the city. It was favored not only by Fante, but also by writers such as Charles Bukowski and James M. Cain for its lack of pretension and colorful clientele.

PHOTOS: Last Call at King Eddy Saloon

"The King Eddy Saloon is the last stand in a world that's completely lost to us — and that's skid row in the 1950s sense, a place where itinerant and semi-skilled laborers could find work seasonally," says downtown historian Richard Schave, who founded the Los Angeles Visionaries Assn., which staged the Fante event.

The bar has been owned by the same family for three generations. Dustin Croick took over in 2008 after his father, Rob, was badly injured in a car accident on his way home from the bar one night. Rob Croick, who has since died, managed the King Eddy for his father, Babe, who bought the bar in the 1960s with money he earned running downtown parking lots.

"This place has been a dive bar since I've been coming here as a kid with my dad, ordering milk and sitting on that stool," says Dustin Croick, 27.

In recent years, Croick has been trying to attract a more mainstream clientele. He started a website that played up the bar's hard-luck roots and featured a catchphrase he coined: "Where nobody gives a … about your name." He tried to lure the producers of the television show "Bar Rescue" to shoot a segment there, but the building's previous owners would not allow the filming.

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Sweet and Lowe: How a captivating Twitter feed sealed Rob Lowe’s comeback

By Virginia Heffernan

@RobLowe follows 135 people on Twitter. Among them is not @HilaryASwank, the Oscar-winning ex-wife of his brother, @ichadlowe.

@RobLowe does, however, follow @ikimlowe, the new wife of his brother, who helpfully identifies herself on the site as “wife of @ichadlowe.” Would @HilaryASwank, a formidable actor who does not use Twitter very often, have consented to live in her lesser-known husband’s Twitter shadow? Perhaps not. Perhaps that’s why they div—

But what am I doing? This is where Twitter can lead a person: to deranged, speculative pointless nosiness. To mindlessly customizing a version of Us Weekly magazine by reading between the Twitter lines of who follows whom, who tags whom, who seeks whose attention with tags and hashtags.

So forget that. I’m just going to keep following @RobLowe. His Twitter feed is one for the ages, and he’s on a tear, having just hit half a million followers. And I swear I follow Rob Lowe for the epigrams and jokes—why else?—though, yes, I once had a poster of the matinee idol from “St. Elmo’s Fire” on my wall. (But only because I learned that science had proven that he and Jaclyn Smith were the most perfectly symmetrical, beautiful humans ever to exist—and who ever would exist. It was a duty of citizenship in the human race to have a poster!)

Not long after “St. Elmo’s Fire,” @RobLowe, the record reflects, had a speedy fall after an early-adopter DIY sex tape (1988! Paris Hilton’s was not ’til 2003!). As Lowe’s first-rate autobiography reports, this was part of a bigger personal unraveling into promiscuity and dissipation on an NBA/Lohan scale. Eventually Lowe found deliverance in sobriety (which he names as one of his interests on Twitter) and the love of a good woman, @Sheryl_Lowe (business) or @Sheryllowe61 (personal).

Lowe also evidently found something in Twitter. As his career has done more than rebound—it has fully realized itself, with his comic-stilted-earnest-inimitable performances on “The West Wing,” “Brothers & Sisters” and, now, “Parks and Recreation”—he has built a sturdy and complementary Twitter feed.

Lowe’s Twitter presence seals his comeback. It is freewheeling, wide-ranging and among his best work. The onetime incorrigible gadfly, who might have died outside the Viper Room like River Phoenix or been left howling at the moon like Charlie Sheen, now knows who he is, has a gift for observational humor and lives his life with something that looks like joy.

Lowe recently retweeted this observation from the Telegraph’s Damian Thompson:

More:

Another Lowe tweet:

Which of us–especially those of us who were born in the 1960s–doesn’t feel like saying that aloud every year?

And speaking of Lowe’s vintage, it’s appealing that he’s not afraid to use our generation’s corny locutions on young-skewing Twitter. As he put it recently:

The merciless “pumped” kills me. Do people never leave the slang (or bands?) of their 20s? Lowe is big on “dude,” too.

At the same time, Lowe seems to enjoy aging:

He wrote this last month, referring to Chris Traeger, his character on “Parks and Recreation,” who exercises without cease, gunning for eternal life. In Traeger’s intense specificity—his needs in beverages, for example, are so idiosyncratic as to require paragraphs of instructions—he is a perfect new-sitcom archetype. One thing he is not is cool.

And neither is Lowe cool in his Twitter feed. Often he is sending out blessings to his followers or his family, or reveling in mere existence, with the hashtag #LoveLife. Lowe’s autobiography makes clear that the Handsome Man, a cultural slot in which he found himself early on, invites way too much resentment if he doesn’t start spoofing himself with gusto. It’s imperative he find the joke in life, and the dignity in himself, or he’ll yield to prettiness and silliness, as well as drugs and sex tapes.

Look on that @RobLowe Twitter feed, and learn from it, ye handsome millennials!

Social Media News Headlines – Yahoo! News

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Sitar maker: Ravi Shankar's legacy inspires others

NEW DELHI (AP) — The walls of Sanjay Sharma's music shop are lined with gleaming string instruments and old photographs of legendary musicians.

Beatles George Harrison, John Lennon and Paul McCartney. Indian classicial musicians Zakir Hussain, Shiv Kumar Sharma and Vishwamohan Bhatt. And the man who brought these two very different musical worlds together: Ravi Shankar.

Like his grandfather and father before him, Sharma built, tuned and repaired instruments for the sitar virtuoso, who introduced Westerners to Indian classical music, and through his friendship with Harrison became a mainstay of the 1960s counterculture scene.

From his tiny shop tucked into the crowded lanes of central Delhi's Bhagat Singh market, Sharma traveled the world with Shankar. Late in the maestro's life, as his health and strength flagged, he even designed a smaller version of the instrument that allowed him to keep playing.

Shankar, who died Tuesday at age 92, was "a saint, an emperor and lord of music," Sharma says in a tribute posted to the website of his sought-after shop, Rikhi Ram's Music.

"When I opened my eyes there was him," says Sharma, 44, surrounded by display cases full of sitars, sarangis (a stringed instrument played with a violin-like bow), guitars, tabla drums and sarods, a deeply resonating instrument played by plucking the strings.

Shankar "was music and music was him," he says.

Sharma's grandfather started the business in 1920 in the northern city of Lahore, now in Pakistan. He met a young Ravi Shankar at a concert there in the 1940s. Following the India-Pakistan partition and the relocation of the shop to New Delhi, the family began making sitars for Shankar in the 1950s.

By then, the musician was already famous in India and beginning to collaborate with some of the greats of Western music, including violinist Yehudi Menuhin and jazz saxophonist John Coltrane.

The Beatles visited in 1966 and bought instruments, memorialized in some of the many photographs that line the shop's walls. Another shows Shankar's daughter and the heir of his sitar legacy, Anoushka Shankar. But there is no picture of another Shankar daughter, American singer Norah Jones, who was estranged from her father.

Sharma's own father succeeded his grandfather as the supplier of Shankar's sitars. And then Sharma himself in the 1980s.

The bedroom-sized shop has two counters, one for conducting business and one for working on instruments under the beam of a large work lamp. Wood shavings and dust cover the floor of a workshop at the back.

As he chatted with visiting Associated Press journalists on Thursday, Sharma worked on a sitar, peering through his glasses as he used a mallet to hammer in a new fret. He plucked the strings, and as the sound resonated around the room, he leaned close in to the instrument and listened intently to the vibrations. Satisfied with the results, he moved on to the next fret.

It takes 15 months for a sitar to be ready for use. The actual crafting of the instrument from red cedar and hollowed-out, dried pumpkins takes three months. Then, it is left untouched to go through what is called "Delhi seasoning," in which the extremes of New Delhi's climate — blistering summer, followed by a brief monsoon, and a near-freezing, three-month winter — work their magic.

In 2005, a serious bout of pneumonia left Shankar with a frozen left shoulder.

"He was growing old and he wanted to experiment and change the instrument" so he could continue playing, Sharma says.

Sharma, a large, balding man, created what he calls the "studio sitar," a smaller version of the instrument. But holding it was still difficult. So Sharma went to a Home Depot near Shankar's San Diego, California-area home and bought some supplies to build a detachable stand.

The musician was thrilled. Sharma says Shankar told him, "Your father was a brilliant sitar maker, but you are a genius."

Shankar was performing in public until a month before his death. Despite ill health, he appeared re-energized by the music, Sharma said.

Now, as Sharma mourns the giant of Indian music, he also worries about the future of the art itself. He sees traditional Indian instruments gradually losing their place in their own country to zippy, electronic Bollywood music.

"We are losing the originality and the core of our Indian music," says Shankar, himself a trained Hindustani classical musician who plays the sitar and tabla, the Indian pair-drums.

At the same time, Shankar's work as a global ambassador of music has borne fruit, Sharma says: "Because the music has gone to the West, we're getting lots of new musical aspirants from the Western countries."

When jazz artist Herbie Hancock was in New Delhi a few years ago, he stopped by Sharma's shop to buy a sitar.

And in one of the shop's display windows gleams a newly crafted sitar made of teak.

"That," Sharma said, "is for Bill Gates."

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The New Old Age Blog: Hospital Alarms Fail to Prevent Injury, Study Finds

When it comes to protecting older people from falls, it can take a long time to figure out what helps and sometimes an even longer time to take action against things that were supposed to help but don’t.

A case in point: the so-called safety rails on hospital and nursing home beds. Their hazards, as The New Old Age reported more than two years ago, are well documented. They are intended to keep sick, drugged or confused people from climbing or falling out of bed. What they actually do is make falls more dangerous; they also trap patients between the rails and the mattress until they asphyxiate, causing hundreds of deaths annually.

The Consumer Product Safety Commission is finally investigating these hazards, with findings due soon.

Alarms — sensors that alert aides or nurses when someone at risk of falling attempts to get out of bed or up from a chair or toilet — sound better, right? Lots of health care facilities thought so.

Use of these alarms has increased “over the past 10 or 15 years as the problems of physical restraints and bed rails became better known,” said Ronald Shorr, who directs geriatric research at the V.A. Medical Center in Gainesville, Fla. “This was the next wave in fall prevention.”

The trouble is, hospital bed alarms don’t appear to reduce falls, according to the study that Dr. Shorr just published in The Annals of Internal Medicine.

Lots of patients, of all ages, fall in hospitals, and about a quarter of those falls cause injuries. They also cost hospitals money, because Medicare will no longer reimburse facilities for treating injuries from falls that in theory shouldn’t have happened.

Though there aren’t statistics on the number of systems, it is rare these days to find a large hospital that doesn’t use alarms, in some cases built right into the beds.

Yet “their efficacy hadn’t been established,” Dr. Shorr told me in an interview. The few studies that reported reduced falls from alarms were small, lacked control groups, or didn’t continue for very long. Dr. Shorr and his colleagues set out to remedy those shortcomings.

Over 18 months, they documented falls among patients in 16 medical and surgical units, with a combined 349 beds, at Methodist Healthcare-University Hospital in Memphis, Tenn. Half those units were randomly designated “usual care.” In the other eight, the “intervention” units, Dr. Shorr and study coordinator Michelle Chandler held repeated education sessions to explain the alarms — in this case, flexible pads made by Bed-Ex and widely-used — and demonstrate their use in beds and on chairs and commode seats.

Ms. Chandler visited the intervention units daily — the staff started calling her “Mrs. Falls” — and even brought fresh alarm pads and help set them up to encourage their use.

The intervention worked, in that those units used the alarms far more often. But when the researchers tallied up the falls among the 27,672 patients (half of them over age 63) in these units — controlling for many variables, including not only demographic factors but staffing levels and psychotropic drug regimens — they found the alarms had no significant effect.

Patients in the units that used alarms more heavily fell just as often as patients in the control units that used alarms much less frequently. (The numbers: 5.62 falls per 1,000 patient-days, a measure of how many people spent how long in the hospital, versus 4.56 falls in the control units, not a statistically significant difference.)

There were no fewer injuries in the more-alarmed units, nor any less use of physical restraints.

There were likely higher costs, though. A Bed-Ex monitor and cables cost about $350 at the time, and each disposable sensor pad cost $23.

Why didn’t the alarms help? Dr. Shorr hypothesized that the staff developed what he called alarm fatigue. “How many times a week do you hear a car alarm go off?” he asked. “You become desensitized.”

But it is also possible, he said, that when the alarms sounded and the nurses scampered, “the patients who weren’t alarmed fell more often.”

My own 2 cents: If an alarm sounds when someone stirs, is any hospital or nursing home so well-staffed that someone can materialize within seconds? Does a staff become less vigilant when patients have alarms and are presumed – wrongly, it seems – to be safer?

Nursing homes also frequently use alarms, and while this hospital data might not apply in another setting, Dr. Shorr said his findings made him skeptical about their effectiveness there, too.

So we probably shouldn’t feel reassured about our elders’ safety when they are in a hospital, alarms or no alarms. Even younger people, recovering from surgery and feeling the effects of anesthesia or sedatives, can and do fall.

“The more eyes on your loved one, the better,” said Dr. Shorr. “And it’s best if they’re your eyes.”

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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Retailers scramble to woo shoppers in final days before Christmas

The holiday crunch is on at the mall, and Toys R Us is opening all its stores for 88 straight hours until Christmas Eve. And, for the first time, Macy's is staying open at most stores for 48 hours nonstop the final weekend before Christmas.

In the rush to woo shoppers, merchants this year are upping the ante. Banana Republic is giving away six Fiat cars. Kohl's is picking up the tab for a shopper in each of its stores every day until Christmas Eve. And Sport Chalet will have a scuba-diving Santa at some of its stores Saturday.

Across the nation, retailers are scrambling to draw customers into stores and online in the last days leading up to Christmas, in the hope that shoppers will deliver a last-minute cash infusion at a crucial time for merchants. After a successful Black Friday weekend that netted a record $59.1 billion in sales, stores have seen an unwelcome drop-off in business.

What happens in the next two weeks may be vital not only for merchants but also for the nation's fragile economic recovery, because consumer spending of all kinds makes up about 70% of the U.S. economy.

This weekend and next hold the key to boom or bust. "This holiday, the highs have been higher and the lows lower for retailers," industry analyst Marshal Cohen said. "That means we need a good, strong finish to come out even."

The National Retail Federation is sticking to its prediction of $586.1 billion this year, up 4.1% from last year.

With an extra weekend this year between Thanksgiving and Christmas, many stores say that traffic has plummeted in the last few weeks as shoppers gave their credit cards a rest after splurging on Black Friday and Cyber Monday. Independent boutiques and national retailers alike are anxiously waiting for a surge of shoppers at the very end.

Liz Williamson and last-minute shoppers like her may dictate the outcome. With a dozen family members and friends on her holiday list, "I have to get started now or I'm going to end up running through the malls on Christmas Eve," said the Los Angeles accountant, who was hunting at the Americana at Brand shopping center. "It's get-it-done time."

Shopper Colleen Chang, 26, hasn't started shopping either. "I've started feeling a little crazy," said the Los Angeles leasing agent, who has budgeted $400. "You have to know exactly what you want because pretty soon there's just nothing left and you have to take what you can get."

"Procrastinators will be the secret weapon for either a ho-ho holiday or a ho-hum one," Cohen said.

With 11 days to go, shipping deadlines loom for online orders. Christmas parties are in full swing. Advertising blares. Last-minute sales scream for attention. Holiday music won't let you alone. Time is running out.

Retailers have plenty of shoppers to win over. Nearly a fifth of consumers have yet to start holiday shopping, while 21% plan to drop into stores again after taking a break from post-Thanksgiving splurging, the research firm NPD Group estimated Thursday.

"Every day feels like a sprint. Across the board we see a lot of traffic right now both online and in store," said Brian Hanover, a spokesman at Sears, which is rolling out another round of door-busters Friday and Saturday.

Despite the looming fiscal cliff in Washington and the prospect of higher taxes next year, retailers expect that people will open their wallets for last-minute gifts.

Kevin Jewelers in the Glendale Galleria is hoping for the traditional surge of procrastinators after a disappointing two weeks, diamond consultant Grace Figues said.

"We're still waiting for the rush," she said. "Lately it's been high-low, high-low just like a normal month. We would welcome the craziness."

At the Best Buy store in Westfield Culver City, general manager Margie Kenney said this weekend is "tremendously important" and will be "one of our busiest weekends after Black Friday."

Both bricks-and-mortar and Web merchants will probably enjoy a boost during the next two Saturdays, which typically hold the No. 3 and No. 2 spots for top shopping days of the year after Black Friday, said Bill Martin of retail technology firm ShopperTrak.

"There's still plenty of shopping left," he said. "Some people are just willing to outlast the retailer and wait for the next wave of serious discounts."

At the Americana at Brand, Stella Yu of Glendale had just begun searching for gifts for her family and close friends. But the 25-year-old graduate student, a veteran last-minute shopper, is already mentally preparing herself for the thick crowds, jammed parking lots and general mall madness as the clock ticks down to Christmas.

"I hate humans during holiday shopping," Yu sighed, "especially the ones with kids."

shan.li@latimes.com

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Fed to tie interest rate to job gains

WASHINGTON — The Federal Reserve said it will continue aggressive measures to stimulate the economy and made a major policy shift to focus more directly on boosting the job market.

Fed policymakers said they would keep interest rates at historically low levels until unemployment drops below 6.5%.

It's likely to keep the Fed's short-term interest rates at historically low levels well into 2015.

The move marked the first time that Fed policymakers have tied themselves to an explicit unemployment goal. It appeared to end the long-running debate within the central bank over how aggressively to target the nation's lagging job market.

The jobless figure was 7.7% in November, and the Fed's new forecast doesn't see that dropping below 6.5% for about three years.

The decision was made easier by the slow pace of inflation, which remains below 2% on an annual basis. Critics of the Fed's policies have argued that efforts to stimulate the economy would lead to inflation, but so far, that has not happened, and Fed Chairman Ben S. Bernanke has argued that the risk is much smaller than the dangers posed by high unemployment.

"The conditions now prevailing in the job market represent an enormous waste of human and economic potential," Bernanke said Wednesday during a news conference after the central bank's last policy meeting of the year.

Under its new policy, the Fed would let its inflation outlook rise to 2.5% before taking action to curtail it — giving the nation's employers more time to create jobs.

The move to link interest rate policies directly to the jobless rate is meant to give the public and businesses greater confidence about how long interest rates will remain exceptionally low, and that by itself could act as a kind of stimulus to the economy.

The new push got a warm welcome from both economists and Wall Street.

Economist Bernard Baumohl at the Economic Outlook Group said the previous time frame for action was "self-defeating because it provided no incentive for employers to start spending any time soon to avoid higher interest rates. It just didn't create any sense of urgency to accelerate investments or increase the rate of hiring."

The Fed has kept its federal funds rate, which influences rates for credit cards, mortgages and business and other loans, near zero since December 2008. Unemployment has been near 8% or above since early 2009.

Bernanke and his colleagues also decided Wednesday to continue the controversial large-scale bond-buying programs in the new year. Specifically, the Fed will buy $40 billion of mortgage-backed securities and $45 billion of long-term Treasury bonds a month.

The purchases are intended to drive down long-term interest rates to spur spending, investment and lending, boosting economic activity as well as hiring.

The central bank launched the purchase of mortgage-backed securities in September to give a lift especially to the housing market, which Fed policymakers said Wednesday "has shown further signs of improvement." They said they would continue to buy bonds until the job market "improved substantially."

The Fed, which has a dual mandate to maximize employment and keep inflation in check, also forecast a somewhat stronger growth for next year.

Its policy statement Wednesday noted a slowing in U.S. business investment and "significant downside risks" in the global economy, but made no mention of the so-called fiscal cliff, the automatic federal budget cuts and tax hikes scheduled to take effect beginning Jan. 1.

In a 75-minute news conference, however, Bernanke said it was clearly evident that concerns about the fiscal impasse already had hurt the economy, weakening business investments and consumer confidence.

He said that whatever the Fed did, it was not enough to offset the full effects of a U.S. economy failing to resolve fiscal issues. But he was cautiously optimistic: "I actually believe that Congress will come up with a solution, and I certainly hope they will."

For years, the Fed didn't give any indication of its future interest-rate path and only in recent years signaled what it might do by using somewhat vague language. In June 2011, the Fed said that it would keep rates exceptionally low for an "extended period." In August 2011, policymakers said no change was likely until at least mid-2013. And that date has since been extended twice, to late 2014 and then mid-2015.

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