Syrian vice president says neither side can win war


BEIRUT (Reuters) - Syrian Vice President Farouq al-Sharaa said that neither the forces of President Bashar al-Assad nor rebels seeking to overthrow him can win the war which is now being fought on the outskirts of Assad's powerbase in Damascus.


Sharaa, a Sunni Muslim in a power structure dominated by Assad's Alawite minority, has rarely been seen since the Syrian revolt erupted in March 2011 and is not part of the president's inner circle directing the fight against Sunni rebels.


But he is the most prominent figure to say in public that Assad will not win. He was speaking to the pro-Assad al-Akhbar paper in an interview from Damascus which is now hemmed in by rebel fighters to the south.


Assad's forces have used jets and artillery to try to dislodge the fighters from around Damascus but the violence has crept into the heart of the capital and rebels announced on Sunday a new offensive in the central province of Hama.


Sharaa said the situation in Syria, where more than 40,000 people have been killed, was deteriorating and a "historic settlement" was needed to end the conflict, involving regional powers and the U.N. Security Council and the formation of a national unity government "with broad powers".


"With every passing day the political and military solutions are becoming more distant. We should be in a position defending the existence of Syria. We are not in a battle for an individual or a regime," Sharaa was quoted as saying.


"The opposition cannot decisively settle the battle and what the security forces and army units are doing will not achieve a decisive settlement," he told the paper, adding that the insurgents fighting to topple Syria's leadership could plunge it into "anarchy and an unending spiral of violence".


Sources close to the Syrian government say Sharaa had pushed for dialogue with the opposition and objected to the military response to an uprising that began peacefully.


In Damascus, residents said on Monday the army had told people to evacuate the Palestinian district of Yarmouk, suggesting an all-out military offensive on the southern district was imminent.


The centre of the city, largely insulated from the violence for 21 months, is now full of army and vigilante checkpoints and shakes to the sound of regular shelling, residents say.


Queues for bread form at bakeries hours before dawn, as people seek out dwindling supplies, power cuts are increasing and fears are growing that Damascus could descend into chaos.


In a veiled criticism of the crackdown, Sharaa said there was a difference between the state's duty to provide security to its citizens, and "pursuing a security solution to the crisis."


He said even Assad could not be certain where events in Syria were leading, but that anyone who met him would hear that "this is a long struggle...and he does not hide his desire to settle matters militarily to reach a final solution."


CHANGE INEVITABLE


"We realize today that change is inevitable," Sharaa said, but "none of the peaceful or armed opposition groups with their known foreign links can call themselves the sole legitimate representative of the Syrian people".


"Likewise the current leadership...cannot achieve change alone after two years of crisis without new partners who contribute to preserving (Syria's) national fabric, territorial unity and regional sovereignty".


Rebels have now brought the war to the capital, without yet delivering a fatal blow to the government. But nor has Assad found the military muscle to oust his opponents from the city.


In Paris, Foreign Minister Laurent Fabius of France, one of the powers most insistent that Assad has lost his legitimacy, said: "I think the end is nearing for Bashar al-Assad."


On the ground, rebels said they were launching an operation to seize the central province of Hama to try to link northern rural areas of Syria under their control to the center.


Qassem Saadeddine, a member of the newly established rebel military command, said fighters had been ordered to surround and attack checkpoints across the province. He said forces loyal to Assad had been given 48 hours to surrender or be killed.


"When we liberate the countryside of Hama province ... then we will have the area between Aleppo and Hama liberated and open for us," he told Reuters.


The city of Hama in the province of the same name has a special resonance for anti-Assad activists. In 1982 Hafez al-Assad, father of the current ruler, crushed an uprising in the city, killing up to 30,000 civilians.


In Damascus, activists said fighter jets bombed the Yarmouk Palestinian refugee camp on Sunday, killing at least 25 people sheltering in a mosque.


The attack was part of a month-old campaign by Assad's forces to eject rebels from positions they are establishing around the capital's perimeter. Yarmouk, to the south, falls within an arc of territory running from the east of Damascus to the southwest from where rebels hope to storm the government's main redoubt.


MOSQUE HIT


Opposition activists said the deaths in Yarmouk, to which refugees have fled from fighting in nearby suburbs, resulted from a rocket fired from a warplane hitting the mosque.


Footage showed bodies and body parts scattered on the stairs of what appeared to be the mosque.


The latest battlefield accounts could not be independently verified due to tight restrictions on media access to Syria.


Syria is home to more than 500,000 Palestinian refugees, most living in Yarmouk, and both Assad's government and the rebels have enlisted and armed Palestinians as the uprising, which began as a peaceful street movement 21 months ago, has mushroomed into a civil war.


After Sunday's air raid, clashes flared between Palestinians from the pro-Assad Popular Front for the Liberation of Palestine-General Command (PFLP-GC) and rebels including other Palestinian fighters and some PFLP-GC fighters were killed.


In the latest of a string of military installations to fall to the rebels, the army's infantry college north of Aleppo was captured on Saturday after five days of fighting, a rebel commander with the powerful Islamist Tawheed Brigade said.


(Additional reporting by Dominic Evans; Editing by Samia Nakhoul and Anna Willard)



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Google could emerge unscathed from federal web search probe – WSJ






(Reuters) – Google may not face any major repercussions from the Federal Trade Commission‘s (FTC) two-year-old anti-trust investigation into its web search business, the Wall Street Journal reported, citing people familiar with the matter.


The FTC might drop the investigation sometime this week based on voluntary changes Google will make to its search practices, rather than making the company sign a formal settlement called a consent decree, the Journal said.






The web search investigation examined whether Google tweaks its search results to disadvantage rivals in travel, shopping and other specialized searches.


Google will probably still be required to sign a consent decree for a separate federal investigation into the licensing of mobile-technology patents it acquired when it took over phone maker Motorola Mobility, the Journal said.


An end to the federal probe into Google’s search business would allow the company to avoid getting mired in anti-trust investigations like rival Microsoft Corp endured in the early 2000s.


The European Commission, which is also probing Google, is expected to announce a decision next month.


The FTC declined to comment to the Wall Street Journal and could not be reached for comment by Reuters outside of regular business hours. Google could not be reached for comment by Reuters outside of regular business hours.


(Reporting by Tej Sapru in Bangalore; Editing by Muralikumar Anantharaman)


Internet News Headlines – Yahoo! News





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Drew Barrymore's Baby & Miley Cyrus's Outfit Get Readers' Top Reactions















12/16/2012 at 09:30 PM EST







Drew Barrymore and Olive. Miley Cyrus


Michael Tran/Filmmagic


We love knowing what's on your mind when you read articles on PEOPLE.com, and as always, you gave us plenty of great feedback this week.

Your emotions ranged from "aww" at the photos of Drew Barrymore's daughter Olive, to "ugh" when it came to Miley Cyrus's questionable outfit choice. You also mourned the loss of a legend, singer Jenni Rivera.

Keep letting us know what's making you smile, frown, or LOL each week by clicking on the buttons at the bottom of every article.

Love You were nearly as thrilled to welcome Drew Barrymore's baby as the proud mom herself! The actress is over the moon about her new daughter Olive, and describes her feelings for her little as "like the biggest crush I've ever had in my life!"

Wow You were highly impressed by professional builder Johan Huibers's latest creation: A full-scale replica of Noah's Ark. The wooden vessel – which is 427 feet long, 95 feet wide and 75 feet high – is a feat of, well, biblical proportions!

Sad You were heartbroken over the news that Mexican-American singer Jenni Rivera was killed in a plane crash shortly after takeoff early Sunday. Rivera, who was known as the Diva of Banda and sold over 20 million albums worldwide, was 43. Her family is also mourning the tragic loss.

Angry Miley Cyrus didn't leave much to the imagination with a revealing outfit worn on stage at a concert in Hollywood. Readers were angry about the young starlet's ensemble, which consisted of tight pants, knee-high snakeskin boots and a peekaboo top that showed more than just a little cleavage.

LOL Well, this is awkward. You weren't too upset about Track Palin filing for divorce from wife Britta Hanson after a year and a half. Their parting made readers LOL. Palin, the oldest son of former Alaska governor Sarah Palin, and Hanson were former high school sweethearts.

Check back next week for another must-read roundup, and see what readers are reacting to every day here.

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Experts: No link between Asperger's, violence


NEW YORK (AP) — While an official has said that the 20-year-old gunman in the Connecticut school shooting had Asperger's syndrome, experts say there is no connection between the disorder and violence.


Asperger's is a mild form of autism often characterized by social awkwardness.


"There really is no clear association between Asperger's and violent behavior," said psychologist Elizabeth Laugeson, an assistant clinical professor at the University of California, Los Angeles.


Little is known about Adam Lanza, identified by police as the shooter in the Friday massacre at a Newtown, Conn., elementary school. He fatally shot his mother before going to the school and killing 20 young children, six adults and himself, authorities said.


A law enforcement official, speaking on condition of anonymity because the person was not authorized to discuss the unfolding investigation, said Lanza had been diagnosed with Asperger's.


High school classmates and others have described him as bright but painfully shy, anxious and a loner. Those kinds of symptoms are consistent with Asperger's, said psychologist Eric Butter of Nationwide Children's Hospital in Columbus, Ohio, who treats autism, including Asperger's, but has no knowledge of Lanza's case.


Research suggests people with autism do have a higher rate of aggressive behavior — outbursts, shoving or pushing or angry shouting — than the general population, he said.


"But we are not talking about the kind of planned and intentional type of violence we have seen at Newtown," he said in an email.


"These types of tragedies have occurred at the hands of individuals with many different types of personalities and psychological profiles," he added.


Autism is a developmental disorder that can range from mild to severe. Asperger's generally is thought of as a mild form. Both autism and Asperger's can be characterized by poor social skills, repetitive behavior or interests and problems communicating. Unlike classic autism, Asperger's does not typically involve delays in mental development or speech.


Experts say those with autism and related disorders are sometimes diagnosed with other mental health problems, such as depression, anxiety, bipolar disorder or obsessive-compulsive disorder.


"I think it's far more likely that what happened may have more to do with some other kind of mental health condition like depression or anxiety rather than Asperger's," Laugeson said.


She said those with Asperger's tend to focus on rules and be very law-abiding.


"There's something more to this," she said. "We just don't know what that is yet."


After much debate, the term Asperger's is being dropped from the diagnostic manual used by the nation's psychiatrists. In changes approved earlier this month, Asperger's will be incorporated under the umbrella term "autism spectrum disorder" for all the ranges of autism.


__


AP Writer Matt Apuzzo contributed to this report.


___


Online:


Asperger's information: http://1.usa.gov/3tGSp5


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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."


Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.


"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.


"Next week is going to be a Capitol Hill-driven market."


With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.


Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.


"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.


"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."


Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.


BEWARE OF THE WITCH


This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.


"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.


RETHINKING APPLE


Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.


Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.


On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.


"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.


But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.


(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Egyptians narrowly back constitution, say rival camps


CAIRO (Reuters) - Egyptians voted narrowly in favor of a constitution shaped by Islamists but opposed by other groups who fear it will deepen divisions, officials in rival camps said on Sunday after the first round of a two-stage referendum.


Next week's second round is likely to give another "yes" vote as it includes districts seen as more sympathetic towards Islamists, analysts say, meaning the constitution would be approved.


But a close win, if confirmed, would give Islamist President Mohamed Mursi only limited cause for celebration as it would show a wide rift in a country where he needs to build consensus on tough measures to fix a fragile economy.


The Muslim Brotherhood's party, which propelled Mursi to office in a June election, said 56.5 percent backed the text. Official results are not expected till after the next round.


Mursi and his backers say the constitution is vital to move Egypt's democratic transition forward. Opponents say the basic law is too Islamist and tramples on minority rights, including those of Christians who make up 10 percent of the population.


The build-up to Saturday's vote was marred by deadly protests. Demonstrations erupted when Mursi awarded himself extra powers on November 22 and then fast-tracked the constitution through an assembly dominated by his Islamist allies.


However, the vote passed off calmly with long queues in Cairo and several other places, though unofficial tallies indicated turnout was around a third of the 26 million people eligible to vote this time. The vote was staggered because many judges needed to oversee polling staged a boycott in protest.


The opposition had said the vote should not have been held given violent protests in the Arab world's most populous nation, which is watched closely from abroad to see how Islamists, long viewed warily in the West, handle themselves in power.


"It's wrong to have a vote or referendum with the country in the state it is - blood and killings, and no security," said Emad Sobhy, a voter who lives in Cairo. "Holding a referendum with the country as it is cannot give you a proper result."


INCREASINGLY DIVIDED


As polls closed, Islamists attacked the offices of the newspaper of the liberal Wafd party, part of the opposition National Salvation Front coalition that pushed for a "no" vote.


"The referendum was 56.5 percent for the 'yes' vote," a senior official in the Brotherhood's Freedom and Justice Party operations room set up to monitor voting told Reuters.


The Brotherhood and its party had representatives at polling stations across the 10 areas, including Cairo, in this round. The official, who asked not to be identified, said the tally was based on counts from more than 99 percent of polling stations.


"The nation is increasingly divided and the pillars of state are swaying," opposition politician Mohamed ElBaradei wrote on Twitter. "Poverty and illiteracy are fertile grounds for trading with religion. The level of awareness is rising fast."


One opposition official also told Reuters the vote appeared to have gone in favor of Islamists who backed the constitution.


The opposition initially said its exit polls indicated the "no" camp would win comfortably, but officials changed tack during the night. One opposition official in the early hours of Sunday said it would be "very close". There was no formal statement from the opposition National Salvation Front.


"Even if this result is correct, that does not mean that this constitution can pass, because it means more than 40 percent of the people didn't agree with it," said Issam Amin, speaking on a Cairo street and echoing the opposition line that the constitution needed consensus backing not a simple majority.


A narrow loss could still hearten leftists, socialists, Christians and more liberal-minded Muslims who make up the disparate opposition camp, which has been beaten in two elections since Hosni Mubarak was overthrown last year.


They were drawn together to oppose what they saw as Mursi's power grab and his constitution push. The National Salvation Front includes prominent figures such as ElBaradei, former Arab League chief Amr Moussa and firebrand leftist Hamdeen Sabahy.


If the constitution is approved, a parliamentary election will follow early next year. Opposition leaders say the Front could help unite the opposition for that poll after their divided ranks have split the vote in previous elections.


DEADLY VIOLENCE


But analysts question whether the opposition group in this form will survive until a parliamentary election. The Islamist-dominated lower house of parliament elected earlier this year was dissolved based on a court order in June.


Violence in Cairo and other cities has plagued the run-up to the referendum. At least eight people were killed when rival camps clashed during demonstrations outside the presidential palace earlier this month.


Several party buildings belonging to the Muslim Brotherhood's party have been burned by angry protesters in recent weeks. On Friday, a day before the vote, rival factions armed with clubs, knives and swords fought in Alexandria.


In order to pass, the constitution must be approved by more than 50 percent of those casting ballots. There are 51 million were eligible voters in the nation of 83 million.


Rights groups reported some abuses, such as polling stations opening late, officials telling people how to vote and bribery. But Gamal Eid, head of the Arab Network for Human Rights Information, said abuses were not enough to invalidate the vote.


"We accepted the referendum so we accept the result," said Ahmed Mohamed, a Cairene who backed the draft. "If the majority said ‘yes', so be it. I didn't see forgery where I voted."


Islamists have been counting on their disciplined ranks of supporters and on Egyptians desperate for an end to turmoil that has hammered the economy and sent Egypt's pound to eight-year lows against the dollar.


If the constitution is voted down in a second round, which now looks unlikely, a new assembly will be formed to draft a revised version, a process that could take up to nine months.


The army has deployed about 120,000 troops and 6,000 tanks and armored vehicles to protect polling stations and other government buildings. While the military backed Mubarak and his predecessors, it has not intervened in the present crisis.


(Additional reporting by Tamim Elyan, Shaimaa Fayed and Reuters Television; Writing by Edmund Blair and Giles Elgood; Editing by Andrew Heavens)



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Facebook unveils new privacy controls






SAN FRANCISCO (Reuters) – Facebook Inc began rolling out a variety of new privacy controls on Wednesday, the company’s latest effort to address user concerns about who can see their personal information on the world’s largest social network.


New tools introduced on Wednesday will make it easier for Facebook’s members to quickly determine who can view the photos, comments and other information about them that appears on different parts of the website, and to request that any objectionable photos they’re featured in be removed.






A new privacy “shortcut” in the top-right hand corner of the website provides quick access to key controls such as allowing users to manage who can contact them and to block specific people.


The new controls are the latest changes to Facebook’s privacy settings, which have been criticized in the past for being too confusing.


Facebook Director of Product Sam Lessin said the changes were designed to increase users’ comfort level on the social network, which has roughly one billion users.


“When users don’t understand the concepts and controls and hit surprises, they don’t build the confidence they need,” said Lessin.


Facebook, Google Inc and other online companies have faced increasing scrutiny and enforcement from privacy regulators as consumers entrust ever-increasing amounts of information about their personal lives to Web services.


In April, Facebook settled privacy charges with the U.S. Federal Trade Commission that it had deceived consumers and forced them to share more personal information than they intended. Under the settlement, Facebook is required to get user consent for certain changes to its privacy settings and is subject to 20 years of independent audits.


Facebook’s Lessin said some users don’t understand that the information they post on their Timeline profile page is not the only personal information about them that may be viewable by others. Improvements to Facebook’s so-called Activity Log will make it easier for users to see at a glance all the information that involves them across the social network.


Facebook also said it is changing the way that third-party apps, such as games and music players, get permission to access user data. An app must now provide separate requests to create a personalized service based on a user’s personal information and to post automated messages to the Facebook newsfeed on behalf of a user – previously users agreed to both conditions by approving a single request.


The revamped controls follow proposed changes that Facebook has made to its privacy policy and terms of service. The changes would allow Facebook to integrate user data with that of its recently acquired photo-sharing app Instagram, and would loosen restrictions on how members of the social network can contact other members using the Facebook email system.


Nearly 600,000 Facebook users voted to reject the proposed changes, but the votes fell far short of the roughly 300 million needed for the vote to be binding, under Facebook’s existing rules. The proposed changes also would eliminate any such future votes by Facebook users.


(Reporting By Alexei Oreskovic)


Internet News Headlines – Yahoo! News


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Donald Faison Marries Cacee Cobb















12/15/2012 at 08:25 PM EST







Cacee Cobb and Donald Faison


Dr. Billy Ingram/WireImage


It's official!

After six years together, Donald Faison and Cacee Cobb were married Saturday night at the Los Angeles home of his Scrubs costar Zach Braff.

Cobb's friend Jessica Simpson was a bridesmaid. Sister Ashlee Simpson also attended.

"What a happy day," Tweeted groomsman Joshua Radin, a singer, who posted a photo of himself with Faison and Braff in their tuxedos.

The couple got engaged in August 2011. At the time, Faison Tweeted, "If you like it then you better put a Ring on it," and Cobb replied, "If she likes it then she better say YES!!"

Since then, the couple had been hard at work planning their wedding. On Nov. 12, Faison, who currently stars on The Exes, Tweeted that they were tasting cocktails to be served on the big day.

"Alcohol tasting for the wedding!" he wrote, adding a photo of the drinks. "The [sic] Ain't Say It Was Going To Be Like This!!!"

This is the first marriage for Cobb. Faison was previously married to Lisa Askey, with whom he has three children. (He also has a son from a previous relationship.)

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Fewer health care options for illegal immigrants


ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.


The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.


To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.


But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.


When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.


And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.


In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."


The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.


Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.


Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.


A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.


California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.


The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.


And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.


If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.


Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.


The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.


"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."


Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.


There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.


Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.


For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.


"They always attended to me," she said, "even though it's slow."


___


Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .


Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .


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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."


Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.


"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.


"Next week is going to be a Capitol Hill-driven market."


With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.


Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.


"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.


"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."


Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.


BEWARE OF THE WITCH


This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.


"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.


RETHINKING APPLE


Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.


Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.


On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.


"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.


But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.


(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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