New Online Privacy Loophole Lets Facebook Advertise to Kids






Mark Zuckerberg‘s been eager to find a way to get more kids on Facebook for years, and on Wednesday, the Federal Trade Commission handed it to him on a platter. That might be overstating it a little bit. It’s more like the FTC served it to him on a platter covered in plastic wrap with a note attached that says “Do not open.” Nevertheless, should Facebook decided to see what’s inside, experts in online privacy for children say the social network could legally start peddling everything from kids’ bicycles to that new gender-neutral Easy Bake Oven.


RELATED: German Official Urges Citizens to Stop Using Facebook






After months of deliberating and plenty of lobbying on both sides of the issue, the FTC updated the controversial Children’s Online Privacy Protection Act (COPPA) this week. The changes were absolutely designed to better protect children in the privacy-invading era of social media, especially from the data-hungry advertisers who want to sell them things. Websites like Facebook don’t allow kids to sign up without their parents permission, generally because COPPA has prohibited them from collecting the kinds of information they need to serve them ads. And why would they want a user to whom they couldn’t serve ads? Under the new FTC rules, parental permission is required for just about anything a kid would do on Facebook, including uploading photos, videos and geolocational information. Tracking tools like cookies are also verboten without a parent’s permission.


RELATED: What Police Learn About You When They Subpoena Your Facebook Account


But there’s a loophole. The new rules say very plainly that no parental permission is needed “for the sole purpose of supporting the website or online service’s internal operations, such as contextual advertising, frequency capping, legal compliance, site analysis, and network communications.” The key phrase there is “contextual advertising,” which is an ad product Facebook has been working on for a while. Facebook’s version basically reads your News Feed and shows you ads that are relevant, or contextual, to what you’re reading. As a few people have pointed out, this opens a door for Facebook to start exploring the idea of ad-supported profiles for kids. Alan Simpson, the vice president of child privacy advocacy group Common Sense, isn’t happy about this idea. “Common Sense doesn’t like this part, and the industry lobbyists probably do,” he told TechCrunch Monday evening.


RELATED: What Facebook Does to Kids’ Brains


Now, there are a lot of ifs in this scenario. Based on the magnitude and sensitivity of the issue, Facebook probably doesn’t want to go scaring a bunch of parents by sneaking through loopholes to show their kids Easy Bake Oven ads. It has been nearly a decade and a half since COPPA got an update, though, and Mark Zuckerberg isn’t really known for his patience. Of course, Facebook could do what they’ve been doing for ages, which is look over their shoulder while kids lie about having permission and sign up anyways.


Social Media News Headlines – Yahoo! News





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The X Factor: Finalists Sing for Votes One Last Time






The X Factor










12/19/2012 at 10:40 PM EST







from left: Fifth Harmony, Tate Stevens and Carly Rose Sonenclar


Ray Mickshaw/FOX


Who's going to get a $5 million recording contract?

The X Factor's season 2 finale got underway Wednesday night with the finalists performing three songs each – including a duet with a music superstar.

Britney Spears's contestant, Carly Rose Sonenclar, has been a favorite, trading the No. 1 spot with her fellow finalist, L.A. Reid's country singer Tate Stevens, through out the competition.

Carly first reprised "Feeling Good," and sang it better than the first time she performed it during her audition, according to judge Simon Cowell. "It's shocking how bright your star is," Spears said. She performed her duet with Leann Rimes, singing the country star's hit, "How Do I Live." Her final performance – of Leonard Cohen's "Hallelujah" – had the judges gushing. "You looked like an angel," Demi Lovato said. "You sang like a ridiculously talented angel."

Tate, the competition's only country singer, first performed "Anything Goes" by Randy Houser. "I'm still obsessed with you," Demi said. Added Simon, "You are made in America. You are authentic." For his duet, he sang Little Big Town's cheeky party anthem, "Pontoon." And for his final performance in the competition, Tate sang Chris Young's "Tomorrow." "In a year's time," Simon said, "We're going to be hearing about your record sales."

"I'm almost crying because I realize it's the last time I'm going to see you perform on that stage," Demi said.

Simon's remaining act, girl group Fifth Harmony, may have had their best night yet in the competition, beginning with "Anything Can Happen." L.A. called it "magical," adding that they're "the one to beat." Britney said the colorful performance was "spectacular, girly and fun." Their duet, with The X Factor's own Demi Lovato, of "Give Your Heart a Break" was a highlight of the night.

"These girls are so easy to work with," the judge said. "They're so down to earth, so sweet and I love you guys. This was so much fun."

Their last song, "Let It Be" by the Beatles, proved how much the five members have "blossomed as a group," Britney said. Admitting his bias, their mentor Simon said, based on their performances on Wednesday, the girls of Fifth Harmony "deserve to win the competition."

Do you agree? Or is Tate or Carly your choice for the big prize? Tell us in the comments below.

The winner will be revealed Thursday in a two-hour show that will include a performance by One Direction.

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Experts: Kids are resilient in coping with trauma


WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.


Last week's school shooting in Connecticut raises the question: What will be the psychological fallout for the children who survived?


For people of any age, regaining a sense of security after surviving violence can take a long time. They're at risk for lingering anxiety, depression, post-traumatic stress disorder.


But after the grief and fear fades, psychiatrists say most of Newtown's young survivors probably will cope without long-term emotional problems.


"Kids do tend to be highly resilient," said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.


And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.


"That's the way they gain mastery over a situation that's overwhelming," Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.


Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they're dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.


Among the challenges will be spotting which children are struggling enough that they may need professional help.


Newtown's tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher's body to escape to safety.


There's little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.


Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.


Violence isn't all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don't become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.


In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.


Friday's shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.


But those who weren't as close to the danger may be at extra risk, too, if this wasn't their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.


Right after a traumatic event, it's normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.


To help, parents will have to follow their child's lead. Grilling a child about a traumatic experience isn't good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.


Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it's difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn't in pain or lonely but also isn't coming back, Brymer said.


When problem behaviors or signs of distress continue for several weeks, Brymer says it's time for an evaluation by a counselor or pediatrician.


Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found "the power of the support of the people who went through it with you is huge," she said.


Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown's Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.


Finally, avoid watching TV coverage of the shooting, as children may think it's happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.


___


EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.


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Wall Street falls as "cliff" talks sour, but hopes remain

NEW YORK (Reuters) - U.S. stocks sold off late in the day to close at session lows on Wednesday as talks to avert a year-end fiscal crisis turned sour, even as investors still expect a deal.


The S&P 500 slipped after a two-day rally that took the benchmark index to its highest close in two months. Defensive-oriented shares led the decliners, including health care and consumer staples.


General Motors bucked the overall weakness to surge 6.6 percent to $27.18 after the automaker said it will buy back 200 million of its shares from the U.S. Treasury, which plans to sell the rest of its GM stake over the next 15 months.


President Barack Obama and congressional Republicans are struggling to come up with a deal to avoid early 2013 tax hikes and spending cuts that many economists say could send the U.S. economy into recession.


House Speaker John Boehner, the top Republican in Congress, said in a one-minute press conference that his chamber will pass a proposal that Obama had already threatened to veto as it spares many wealthy Americans from tax hikes needed to balance the budget. Obama has already agreed to reductions in benefits for senior citizens.


"My guess is they're close to a deal, and right before, it looks like the deal is about to blow up either on manufactured or legitimate reasons," said Uri Landesman, president of hedge fund Platinum Partners in New York.


He said if the market thought a deal was in real danger, the S&P 500 would slide below 1,400. It stands now near 1,435, not far from a two-month high.


The CBOE Volatility Index <.vix> surged 11.5 percent to 17.36, but has remained relatively stable. Its 14- 50- and 200-day averages are all within 1.1 points.


Landesman said the VIX's stability indicates "the bulls have control of this market still."


Banks and energy shares - groups that outperform during periods of economic expansion - have led recent gains, indicating a shift to focusing on a growing economy as Wall Street looks past the budget talks.


Defensive sectors led Wednesday's downturn, with the S&P health care sector index <.gspa> down 1.1 percent.


The Dow Jones industrial average <.dji> dropped 98.99 points, or 0.74 percent, to 13,251.97. The S&P 500 <.spx> lost 10.98 points, or 0.76 percent, to 1,435.81. The Nasdaq Composite <.ixic> fell 10.17 points, or 0.33 percent, to 3,044.36.


Herbalife Ltd shares tumbled 12.1 percent to $37.34 after William Ackman, one of the world's biggest hedge fund managers, said he is shorting the stock of the weight management products company.


Oracle shares helped cap the Nasdaq's loss after the company reported earnings that beat expectations on strong software sales growth. Oracle jumped 3.7 percent to $34.09.


Knight Capital Group Inc climbed 5.4 percent to $3.51 after it agreed to be bought by Getco Holdings in a deal valued at $1.4 billion. The stock, which nearly collapsed after a trading error in August, remains down about 70 percent so far this year.


Shares of Chinese display advertising provider Focus Media Holding Ltd jumped 6.7 percent to $25.52 after it agreed to be bought by a consortium of private equity funds led by the Carlyle Group for about $3.6 billion.


Data showed homebuilding permits touched their highest level in nearly 4-1/2 years in November. The PHLX housing index <.hgx> fell 0.8 percent, but has gained 66.4 percent this year as the housing market has turned the corner.


About 6.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, slightly above the daily average so far this year of about 6.45 billion shares.


Advancing and declining issues were almost even on both the NYSE and the Nasdaq.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)



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Insight: Once a symbol of new Afghanistan, can policewomen survive?


KABUL (Reuters) - Shortly after Friba joined the Afghan National Police, she gave herself the nickname "dragon" and vowed to bring law and order to her tormented homeland.


Five years later, she is tired of rebuffing the sexual advances of male colleagues, worries the budget for the female force will shrink and fears the government will abandon them.


Women in the police force were held up as a showcase for Afghan-Western efforts to promote rights in the new Afghanistan, born from the optimism that swept the country after the ouster of the Taliban in 2001.


Images of gun-wielding Afghan policewomen have been broadcast across the globe, even inspiring a television program popular with young Afghan women.


But going from the burqa to the olive green uniform has not been easy.


In Reuters interviews with 12 policewomen in districts across the Afghan capital, complaints of sexual harassment, discrimination and bitter frustration were prevalent.


President Hamid Karzai's goal is for 5,000 women to join the Afghan National Police (ANP) by the end of 2014, when most foreign troops will leave the country.


But government neglect, poor recruitment and a lack of interest on the part of authorities and the male-dominated society mean there are only 1,850 female police officers on the beat, or about 1.25 percent of the entire force.


And it looks to get worse.


Friba, who asked that her second name not be used, says it all when she runs a manicured finger across her throat: "Once foreigners leave we won't even be able to go to the market. We'll be back in burqas. The Taliban are coming back and we all know it."


Conditions for women in Afghanistan have improved significantly since the Taliban were ousted. Women have won back basic rights in voting, education and work since Taliban rule, when they were not allowed out of their homes without a male escort and could be publicly stoned to death for adultery.


But problems persist in the deeply conservative Muslim society scarred by decades of conflict. The United Nations said this month that despite progress, there was a dramatic under reporting of cases of violence against women.


Some female lawmakers and rights groups blame Karzai's government for a waning interest in women's rights as it seeks peace talks with the Taliban, accusations his administration deny.


"We have largely failed in our campaign to create a female police force," said a senior Afghan security official who declined to be identified because of the sensitivity of the subject.


"Mullahs are against it, and the women are seen as not up to the job," he added, referring to Muslim preachers.


Almost a third of the members of the female force work in Kabul, performing duties such as conducting security checks on women at the airport and checking biometric data.


"CONSTANTLY HARASSED"


Friba sat in a city police station room decorated with posters of policemen clutching weapons to talk to Reuters.


"I am the dragon and I can defend myself, but most of the girls are constantly harassed," she said.


"Just yesterday my colleague put his hands on one of the girl's breasts. She was embarrassed and giggled while he squeezed them. Then she turned to us and burst into tears."


On the other side of Kabul, detective Lailoma, who also asked that her family name not be used, said several policewomen under her command had been raped by their male colleagues.


Dyed russet hair poking out from her black hijab, part of the female ANP uniform, Lailoma wrung her hands as she complained about male colleagues: "They want it to be like the time of the Taliban. They tell us every day we are bad women and should not be allowed to work here."


Male colleagues also taunt the women, she added, often preventing them from entering the kitchen, meaning they miss out on lunch.


On several occasions, male colleagues interrupted Reuters interviews in what the policewomen said were attempts to intimidate them into silence.


One male officer entered the room without knocking three times to retrieve pencils; another spent 20 minutes dusting off his hat, only to put it back on a shelf. The women switched subjects when the men came in.


Rana, a 31-year-old, heavy-set policewoman with curly hair, said policewomen were expected to perform sexual favors: "We're expected to do them to just stay in the force."


The raping of policewomen by their male counterparts "definitely takes place", said Colonel Sayed Omar Saboor, deputy director for gender and human rights at the Interior Ministry, which oversees the police.


"These men are largely illiterate and see the women as immoral."


Insecurity, opposition to women working out of the home and sexism deter many women from signing up, said Saboor.


But impoverished widows sometimes have no choice. A starting salary is about 10,500 afghanis a month ($210).


DIFFICULT


The Interior Ministry and foreign organizations responsible for training the women police - NATO, the European Union and the United Nations Development Programme (UNDP) - say recruitment poses the main challenge to the force.


"It is just difficult. There is no real history of women in the police force, there is no precedent, even having an open space for women in employment is a challenge," UNDP Associate Administrator Rebeca Grynspan told Reuters.


A recruitment campaign of television adverts and posters has not produced the desired effect in a country where there are huge social and religious divides between the rural and urban populations. Even fewer join the national army, where some 350 women serve amongst 190,000.


"Much of the male leadership don't want to have anything to do with women in the ANP. Commanders want them out of their units," Saboor said, adding that having 2,500 female police officers could be realistic by end-2014.


Of those who join, few have prospects for promotion. They often find themselves in police stations without proper facilities for women, such as toilets or changing rooms which are vital for the many who hide the fact that they work from their families.


The sprawling Interior Ministry has only recently started work on installing toilets for women. "Ten years of this war have passed, and we're only now building them a toilet," Saboor said with a wry laugh.


For First Lieutenant Naderah Keshmiri, whose humble yet stern approach helps her pursue cases of violence against women, life as a policewoman means being undervalued.


"My male subordinates quickly became generals. But not me. Where's my promotion?" she asked in a UNDP-backed Family Response Unit, which she heads.


The UNDP has set up 33 of the units countrywide, which help increase female visibility in the ANP, with plans to more than double them by 2015.


A Western female police trainer, who spoke on condition of anonymity, said policewomen are almost always passed over for promotion by their male commanders.


U.S. lawmakers are hoping to amend a defense bill by year-end to protect the rights of Afghan women during the security transition. They want to reduce physical and cultural barriers to women joining the security forces.


Ethnicity also plays a role: 55 percent of women in the ANP are ethnic Tajik, Afghanistan's second-largest ethnic group. Recruiting from the largest and most conservative ethnic group, the Pashtuns, is difficult.


The Taliban draw most of their support from the Pashtuns, who dominate the south of the country. Pashtun women make up only 15 percent of the force.


Hazaras, a largely Shi'ite minority who suffered enormous losses at the hands of the Taliban, are overrepresented amongst the women, making up 24 percent, according to figures from NATO's training mission in Afghanistan.


But many of the policewomen are wondering whether their force can survive.


Lowering her voice, Friba whispered: "As soon as the foreigners leave, they'll reduce our salaries. This will not happen to the men. Or perhaps they'll kick us out entirely."


(Editing by Michael Georgy and Robert Birsel)



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Leak reveals Polaroid’s Android-powered camera with interchangeable lenses






Samsung’s (005930) Galaxy Camera and Nikon’s (NINOY) Coolpix S800c are just the beginning of a swath of Android-powered cameras. Newly leaked images and specs point to Polaroid reviving its camera business with what could be the world’s first Android camera with interchangeable lenses. With no official name yet, the tentatively named IM1836 camera will reportedly feature a 18.1-megapixel sensor, 3.5-inch touchscreen, pop-up flash, Wi-Fi, HDMI and Android 4.0.


[More from BGR: A guide to all the insane predictions made by Google’s new engineering director]






The Galaxy Camera and Coolpix S800c do a fine job taking pictures that are considerably better than what you get from a smartphone, but they still can’t match a mirrorless camera with a good lens. At first glance, Polaroid’s camera looks to be a rebadged Nikon 1 J2, but the resemblance only runs skin deep, as PhotoRumors reports the camera only takes MicroSD cards.


[More from BGR: How not to fix Apple Maps]


Polaroid might not be a major player, but as more companies start incorporating Android into their cameras, there’s going to be a shift in the features consumers expect from them. In the next few years, novelty features such as Wi-Fi, cellular data and photo editing apps will be the norm and we’ll laugh at how we ever lived without them.


This article was originally published by BGR


Wireless News Headlines – Yahoo! News





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The Voice Crowns a Winner!















12/18/2012 at 11:20 PM EST







From left: Terry McDermott, Cassadee Pope, Nicholas David and host Carson Daly


Tyler Golden/NBC


The Voice has a new winner!

After several powerful performances the night before, the top three singers – Nicholas David (of Team Cee Lo) and Terry McDermott and Cassadee Pope (of Blake Shelton's team) – faced the music on Tuesday during the final results show of season 3.

Which one was the winner? Keep reading to find out ...

Cassadee Pope was named the winner of The Voice!

Pope thanked her fans who supported her throughout the competition. She was joined onstage by McDermott, who was the runner-up, and David, who came in third place.

It was a night of music as Rihanna, newly engaged Kelly Clarkson, Bruno Mars and the Killers celebrated with the finalists by displaying their talents.

Season 4 of The Voice premieres March 25, 2013, with Shakira and Usher stepping in to take over for Christina Aguilera and Cee Lo Green.

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Experts: Kids are resilient in coping with trauma


WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.


Last week's school shooting in Connecticut raises the question: What will be the psychological fallout for the children who survived?


For people of any age, regaining a sense of security after surviving violence can take a long time. They're at risk for lingering anxiety, depression, post-traumatic stress disorder.


But after the grief and fear fades, psychiatrists say most of Newtown's young survivors probably will cope without long-term emotional problems.


"Kids do tend to be highly resilient," said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.


And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.


"That's the way they gain mastery over a situation that's overwhelming," Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.


Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they're dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.


Among the challenges will be spotting which children are struggling enough that they may need professional help.


Newtown's tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher's body to escape to safety.


There's little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.


Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.


Violence isn't all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don't become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.


In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.


Friday's shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.


But those who weren't as close to the danger may be at extra risk, too, if this wasn't their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.


Right after a traumatic event, it's normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.


To help, parents will have to follow their child's lead. Grilling a child about a traumatic experience isn't good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.


Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it's difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn't in pain or lonely but also isn't coming back, Brymer said.


When problem behaviors or signs of distress continue for several weeks, Brymer says it's time for an evaluation by a counselor or pediatrician.


Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found "the power of the support of the people who went through it with you is huge," she said.


Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown's Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.


Finally, avoid watching TV coverage of the shooting, as children may think it's happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.


___


EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.


Read More..

Asian shares, euro rise on hopes of U.S. "cliff" deal, BOJ easing

SINGAPORE (Reuters) - Asian shares and the euro rose to multi-month highs on Wednesday as expectations of more aggressive monetary stimulus from the Bank of Japan and signs of progress in resolving the U.S. "fiscal cliff" budget crisis lifted demand for riskier assets.


European shares were also expected to post gains. However, index futures pointed to a flat opening on Wall Street after the S&P 500 <.spx> had its best two-day run in a month on growing confidence a deal can be reached in Washington to avoid a raft of painful spending cuts and tax rises. <.n/>


"What is important, and what is driving the market higher, is that the two parties are now in constructive discussions over specific tax levels and spending programs, and working towards a common middle ground," said Cameron Peacock, a strategist at IG Markets in Melbourne.


Industrial commodities such as oil and copper consolidated earlier gains, while gold recovered some lost ground but remained not far above its lowest in nearly four months as progress in the U.S. budget talks limited its safe-haven appeal.


Financial spreadbetters called London's FTSE 100 <.ftse>, Frankfurt's DAX <.gdaxi> and France's CAC-40 <.fhci> indexes to rise 0.2 percent to 0.3 percent. <.l><.eu/>


Tokyo's Nikkei share average <.n225> closed up 2.4 percent, topping 10,000 points for the first time since April, as the prospect of more monetary stimulus and a cheaper yen boosted financials stocks and shares of exporters. <.t/>


MSCI's broadest index of Asia Pacific shares outside Japan <.miapj0000pus> gained 0.4 percent, touching its highest level in nearly 17 months, while Australian shares <.axjo> and Hong Kong's Hang Seng <.hsi> also reached 17-month highs. <.ax><.hk/>


S&P 500 index futures were flat.


MORE JAPAN EASING EXPECTED


The Bank of Japan started a two-day meeting on Wednesday, under intense political pressure to expand its asset-buying program aggressively to snap the world's third-biggest economy out of its fourth recession since 2000.


Shinzo Abe, who was elected on Sunday as the country's next prime minister, called for the central bank to embark on "unlimited easing" and set an inflation target of 2 percent to beat deflation.


"The market is already in overbought territory, but investors are increasingly being alarmed that there is a risk of not having Japanese stocks in their portfolios," said Hiroichi Nishi, general manager at SMBC Nikko Securities.


The euro rose as far as $1.3256 on electronic trading platform EBS, its highest since the beginning of May, and against the yen it reached 111.73, its highest since late August 2011.


"Unless U.S. fiscal cliff talks take an unexpected turn for the worse, we believe that EUR/USD will meet our 1.3300 year-end target," analysts at BNP Paribas wrote in a note.


Oil held steady, with Brent crude rising about 10 cents to just short of $109 a barrel and U.S. crude little changed below $88.


"There has been some progress in talks and it seems commodity markets have been supported by that, as well as a combination of the recent improvement in manufacturing data in China and the United States," said commodity analyst Stefan Graber of Credit Suisse in Singapore.


Copper was also flat just above $8,020 a tonne. Copper rallied almost 8 percent from mid-November to hit a two-month high a week ago, but has since lost some ground.


Gold rose 0.3 percent to around $1,675 an ounce, after falling to $1,661.01 on Tuesday, its lowest since August.


(Additional reporting by Miranda Maxwell in Melbourne, Ian Chua in Sydney and Melanie Burton in Singapore; Editing by Richard Borsuk)



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Syrian rebels take control of Damascus Palestinian camp


BEIRUT (Reuters) - Syrian rebels took full control of the Yarmouk Palestinian refugee camp on Monday after fighting raged for days in the district on the southern edge of President Bashar al-Assad's Damascus powerbase, rebel and Palestinian sources said.


The battle had pitted rebels, backed by some Palestinians, against Palestinian fighters of the pro-Assad Popular Front for the Liberation of Palestine-General Command (PFLP-GC). Many PFLP-GC fighters defected to the rebel side and their leader Ahmed Jibril left the camp two days ago, rebel sources said.


"All of the camp is under the control of the (rebel) Free Syrian Army," said a Palestinian activist in Yarmouk. He said clashes had stopped and the remaining PFLP fighters retreated to join Assad's forces massed on the northern edge of the camp.


The battle in Yarmouk is one of a series of conflicts on the southern fringes of Assad's capital, as rebels try to choke the power of the 47-year-old leader after a 21-month-old uprising in which 40,000 people have been killed.


Government forces have used jets and artillery to try to dislodge the fighters but the violence has crept into the heart of the city and activists say rebels overran three army stations in a new offensive in the central province of Hama on Monday.


On the border with Lebanon, hundreds of Palestinian families fled across the frontier following the weekend violence in Yarmouk, a Reuters witness said.


Syria hosts half a million Palestinian refugees, most living in Yarmouk, descendants of those admitted after the creation of Israel in 1948, and has always cast itself as a champion of the Palestinian struggle, sponsoring several guerrilla factions.


Both Assad's government and the mainly Sunni Muslim Syrian rebels have enlisted and armed divided Palestinian factions as the uprising has developed into a civil war.


"NEITHER SIDE CAN WIN"


Syrian Vice President Farouq al-Sharaa said in a newspaper interview published on Monday that neither Assad's forces nor rebels seeking to overthrow him can win the war.


Sharaa, a Sunni Muslim in a power structure dominated by Assad's Alawite minority, has rarely been seen since the 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.


Sharaa said the situation in Syria 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 telling Al-Akhbar newspaper.


"The opposition cannot decisively settle the battle and what the security forces and army units are doing will not achieve a decisive settlement," he said, adding that 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 a veiled criticism of the crackdown, he 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."


In Hama province, rebels and the army clashed in a new campaign launched on Sunday by rebels to block off the country's north, activists said.


The Syrian Observatory for Human Rights, an opposition-linked violence monitor, said fighting raged through the provincial towns of Karnaz, Kafar Weeta, Halfayeh and Mahardeh.


It said there were no clashes reported in Hama city, which lies on the main north-south highway connecting the capital with Aleppo, Syria's second city.


Qassem Saadeddine, a member of the newly established rebel military command, said on Sunday fighters had been ordered to surround and attack army positions across the province. He said Assad's forces were given 48 hours to surrender or be killed.


In 1982 Hafez al-Assad, father of the current ruler, crushed an uprising in Hama city, killing up to 30,000 civilians.


Qatiba al-Naasan, a rebel from Hama, said the offensive would bring retaliatory air strikes from the government but that the situation is "already getting miserable".


(Additional reporting by Oliver Holmes, Erika Solomon and Dominic Evans in Beirut, Afif Diab at Masnaa, Lebanon; editing by Philippa Fletcher)



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