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Mortgage rates at record low again

Written By empapat on Kamis, 20 September 2012 | 08.05

House construction

jmoconnor/SXC

NEW YORK (CNNMoney) -

Mortgage rates fell to record low levels once again last week, as the Federal Reserve's decision to buy billions in home loans for the foreseeable future helped bring lending costs down for home buyers and owners.

Mortgage finance backer Freddie Mac's weekly survey of mortgage rates showed the average 30-year fixed-rate mortgage fell to 3.49% from 3.55% the previous week. That matched the previous record low set in July. The fixed-rate 15-year mortgage reached a new record low of 2.77%.

The Fed announced last Thursday that it would be buying $40 billion in mortgage-backed securities each month for the foreseeable future. The idea of the purchases, popularly know as QE3, is to spur economic activity buy pumping more cash into the economy and driving down rates. Those taking out new home loans, either to purchase or refinance, will be among the first beneficiaries of the policy.

Frank Nothaft, chief economist, Freddie Mac, said the lower rates should help the ongoing housing recovery.

The low rates in recent months, coupled with tighter inventories, has helped both home values and sales.

On Wednesday, the National Association of Realtors reported a 7.8% gain in sales of previously owned homes compared to a year earlier, while the Census Bureau reported that housing starts and building permits rose substantially in August. Other readings have reported that home prices are finally turning higher after years of steady decline.

But while the housing market is showing signs of improvement, prices and sales are still hurt by an excess inventory of foreclosed homes and continued jobs market weakness.

20 Sep, 2012


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Source: http://www.clickondetroit.com/money/Mortgage-rates-at-record-low-again/-/1719116/16675580/-/s64ow9z/-/index.html
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Madoff victims get another $2.5 billion

Bernard Madoff

Shannon Stapleton/Reuters

NEW YORK (CNNMoney) -

Victims of Bernard Madoff's Ponzi scheme will receive another $2.5 billion of their stolen funds, a court-appointed trustee said Thursday.

Irving Picard, the trustee in charge of recovering assets lost to the biggest Ponzi scheme in history, said that he mailed the checks Wednesday to 1,230 investors who were burned by Madoff.

The payments range from $1,784 to as much as $526.8 million, with the average payment being $2 million, according to Picard's office.

This is in addition to nearly $1.15 billion worth of payments that have already been sent out, bringing the total funds that have been recovered and distributed to victims up to more than $3.6 billion.

As a result of the latest payments, claims for another 182 victims have been fully satisfied, meaning that a total of 1,074 investor accounts have been fully reimbursed, according to the trustee's office. But the remaining 1,048 investors are still waiting to receive all of their stolen funds.

About $17.3 billion was lost to Madoff's long-running pyramid-style scheme, which came crashing down with his arrest on Dec. 11, 2008 in Manhattan, where his firm was headquartered and where he lived with his wife Ruth in a $7 million penthouse. Madoff pleaded guilty three months later to fraud and other charges in New York federal district court and is currently serving a 150-year sentence at a prison in North Carolina.

The trustee said that his office has recovered about $9.15 billion so far.

20 Sep, 2012


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Source: http://www.clickondetroit.com/money/-Madoff-victims-get-another-2-5-billion/-/1719116/16675014/-/14oq2rdz/-/index.html
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DOJ inspector general testifies on 'Fast and Furious'

LIVE: Fast and Furious investigation hearing

WASHINGTON (CNN) -

The Inspector General of the Department of Justice, whose office published the report on the botched gun probe "Operation Fast and Furious," is testifying Thursday before a House oversight committee a day after the report's release.

More than a dozen officials at the Department of Justice and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are potentially facing punishment in the wake of the report.

Inspector General Michael E. Horowitz is in charge of identifying and preventing "waste, fraud, abuse and misconduct" at the Department of Justice, which oversees ATF.

While pinning the blame on officials in both Washington and Arizona for allowing guns traced in the operation to "walk" to drug cartels in Mexico, the report by the inspector's office also takes pressure off U.S. Attorney General Eric Holder, whom the House -- in a largely partisan vote -- had cited for contempt of Congress.

According to the report -- titled "A Review of ATF's Operation Fast and Furious and Related Matters" -- Holder's subordinates had not properly informed him in a timely manner.

Holder "did not learn about Operation Fast and Furious until late January or early February 2011," the report said.

It also said that the failure by officials to interdict the weapons, which later surfaced at crime scenes -- including at the site of the December 2010 shooting of U.S. Border Patrol agent Brian Terry -- was not the result of "improper motives" but of bad work.

"We concluded that the conduct and supervision of the investigations was significantly flawed," the report said.

The Fast and Furious probe and a previous operation were marked by "a series of misguided strategies, tactics, errors in judgment and management failures" that allowed hundreds of weapons to reach Mexican drug cartels, the independent inspector general found.

Within minutes of the report's release, Justice announced that former acting ATF chief Kenneth Melson was retiring and that another official, Deputy Assistant Attorney General Jason Weinstein, had resigned.

Weinstein and Melson were among 14 people who "bore a share of responsibility for ATF's knowing failure in both these operations to interdict firearms illegally destined for Mexico, and for doing so without adequately taking into account the danger to public safety that flowed from this risky strategy," the report states.

Weinstein failed to pass along key information about the flawed tactics being used in Fast and Furious, while Melson and other ATF officials didn't properly supervise the probe, the report states.

The report referred them and another 12 officials in Washington and the ATF and U.S. attorney's offices in Phoenix to Justice officials to determine "whether discipline or other administrative action" was required.

"Fast and Furious" became public after guns traced to the probe turned up at the scene of Terry's killing. The resulting investigations discovered similar tactics in a 2006-2007 operation dubbed "Wide Receiver," also run out of Phoenix.

Revelations that ATF agents watched suspected gun traffickers cross into Mexico with weapons purchased at U.S. gun shops outraged lawmakers. Larry Alt, one of the ATF agents who blew the whistle on the operation, told CNN that it was "egregious" that agents were watching people transfer guns to people who were handing them over to the cartels, "and we were not taking an enforcement action."

"I would say that the persons responsible for this case ... at the field level, the division level, and the headquarters level and as far as it went into the Department of Justice, should be held accountable for any decision that they made that allowed these guns to go out on the street unmonitored," Alt said.

Making matters worse, the Justice Department initially denied guns were being allowed to "walk" across the border, only to have to formally retract that statement in December 2011. The controversy forced Melson out at ATF, but he remained in another post at Justice until Wednesday.

Acting ATF Director B. Todd Jones, meanwhile, said his agency "accepts full responsibility" for failing to oversee the Arizona probes.

"This hurts. This hurts people here," Jones told reporters. But he added that the ATF has been tightening up its procedures and won't shy away from tough operations.

"All we can do is get off the mat again and keep swinging," he said.

The controversy fueled Republican accusations of a cover-up by the Obama administration, which led to the unprecedented vote to hold Holder in contempt.

In a written statement on the findings, Holder said the inspector-general's report upholds "what I, and other Justice Department officials, have said for many months now" -- that the tactics used pre-dated the Obama administration and that Justice Department leaders didn't try to hide the facts from lawmakers.

"It is unfortunate that some were so quick to make baseless accusations before they possessed the facts about these operations -- accusations that turned out to be without foundation and that have caused a great deal of unnecessary harm and confusion," Holder said. "I hope today's report acts as a reminder of the dangers of adopting as fact unsubstantiated conclusions before an investigation of the circumstances is completed."

But Iowa Republican Sen. Chuck Grassley, who brought ATF whistle blower complaints to the department's attention in early 2011, said the report "reaffirms virtually everything" that congressional investigators turned up.

"It's clear that both the ATF and the Justice Department failed to provide meaningful oversight of Operation Fast and Furious," Grassley said in a written statement. Those agencies "ignored warnings from employees" and refused to acknowledge how bad the problem was until after months of congressional pressure, he said.


20 Sep, 2012


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Source: http://www.clickondetroit.com/news/DOJ-inspector-general-testifies-on-Fast-and-Furious/-/1719418/16672448/-/loweeo/-/index.html
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Official testifies on 'Fast and Furious'

LIVE: Fast and Furious investigation hearing

WASHINGTON (CNN) -

The Inspector General of the Department of Justice, whose office published the report on the botched gun probe "Operation Fast and Furious," is testifying Thursday before a House oversight committee a day after the report's release.

More than a dozen officials at the Department of Justice and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are potentially facing punishment in the wake of the report.

Inspector General Michael E. Horowitz is in charge of identifying and preventing "waste, fraud, abuse and misconduct" at the Department of Justice, which oversees ATF.

While pinning the blame on officials in both Washington and Arizona for allowing guns traced in the operation to "walk" to drug cartels in Mexico, the report by the inspector's office also takes pressure off U.S. Attorney General Eric Holder, whom the House -- in a largely partisan vote -- had cited for contempt of Congress.

According to the report -- titled "A Review of ATF's Operation Fast and Furious and Related Matters" -- Holder's subordinates had not properly informed him in a timely manner.

Holder "did not learn about Operation Fast and Furious until late January or early February 2011," the report said.

It also said that the failure by officials to interdict the weapons, which later surfaced at crime scenes -- including at the site of the December 2010 shooting of U.S. Border Patrol agent Brian Terry -- was not the result of "improper motives" but of bad work.

"We concluded that the conduct and supervision of the investigations was significantly flawed," the report said.

The Fast and Furious probe and a previous operation were marked by "a series of misguided strategies, tactics, errors in judgment and management failures" that allowed hundreds of weapons to reach Mexican drug cartels, the independent inspector general found.

Within minutes of the report's release, Justice announced that former acting ATF chief Kenneth Melson was retiring and that another official, Deputy Assistant Attorney General Jason Weinstein, had resigned.

Weinstein and Melson were among 14 people who "bore a share of responsibility for ATF's knowing failure in both these operations to interdict firearms illegally destined for Mexico, and for doing so without adequately taking into account the danger to public safety that flowed from this risky strategy," the report states.

Weinstein failed to pass along key information about the flawed tactics being used in Fast and Furious, while Melson and other ATF officials didn't properly supervise the probe, the report states.

The report referred them and another 12 officials in Washington and the ATF and U.S. attorney's offices in Phoenix to Justice officials to determine "whether discipline or other administrative action" was required.

"Fast and Furious" became public after guns traced to the probe turned up at the scene of Terry's killing. The resulting investigations discovered similar tactics in a 2006-2007 operation dubbed "Wide Receiver," also run out of Phoenix.

Revelations that ATF agents watched suspected gun traffickers cross into Mexico with weapons purchased at U.S. gun shops outraged lawmakers. Larry Alt, one of the ATF agents who blew the whistle on the operation, told CNN that it was "egregious" that agents were watching people transfer guns to people who were handing them over to the cartels, "and we were not taking an enforcement action."

"I would say that the persons responsible for this case ... at the field level, the division level, and the headquarters level and as far as it went into the Department of Justice, should be held accountable for any decision that they made that allowed these guns to go out on the street unmonitored," Alt said.

Making matters worse, the Justice Department initially denied guns were being allowed to "walk" across the border, only to have to formally retract that statement in December 2011. The controversy forced Melson out at ATF, but he remained in another post at Justice until Wednesday.

Acting ATF Director B. Todd Jones, meanwhile, said his agency "accepts full responsibility" for failing to oversee the Arizona probes.

"This hurts. This hurts people here," Jones told reporters. But he added that the ATF has been tightening up its procedures and won't shy away from tough operations.

"All we can do is get off the mat again and keep swinging," he said.

The controversy fueled Republican accusations of a cover-up by the Obama administration, which led to the unprecedented vote to hold Holder in contempt.

In a written statement on the findings, Holder said the inspector-general's report upholds "what I, and other Justice Department officials, have said for many months now" -- that the tactics used pre-dated the Obama administration and that Justice Department leaders didn't try to hide the facts from lawmakers.

"It is unfortunate that some were so quick to make baseless accusations before they possessed the facts about these operations -- accusations that turned out to be without foundation and that have caused a great deal of unnecessary harm and confusion," Holder said. "I hope today's report acts as a reminder of the dangers of adopting as fact unsubstantiated conclusions before an investigation of the circumstances is completed."

But Iowa Republican Sen. Chuck Grassley, who brought ATF whistle blower complaints to the department's attention in early 2011, said the report "reaffirms virtually everything" that congressional investigators turned up.

"It's clear that both the ATF and the Justice Department failed to provide meaningful oversight of Operation Fast and Furious," Grassley said in a written statement. Those agencies "ignored warnings from employees" and refused to acknowledge how bad the problem was until after months of congressional pressure, he said.


20 Sep, 2012


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Source: http://www.clickondetroit.com/news/Official-testifies-on-Fast-and-Furious/-/1719418/16672448/-/skfw2dz/-/index.html
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Madoff victims get another $2.5 billion

Bernard Madoff

Shannon Stapleton/Reuters

NEW YORK (CNNMoney) -

Victims of Bernard Madoff's Ponzi scheme will receive another $2.5 billion of their stolen funds, said the court-appointed trustee on Thursday.

Irving Picard, the trustee in charge of recovering assets lost to the biggest Ponzi scheme in history, said that he mailed the checks on Wednesday to 1,230 investors who were burned by Madoff.

The payments range from $1,784 to as much as $526.8 million, with the average payment being $2 million, according to Picard's office.

This is in addition to nearly $1.15 billion worth of payments that have already been sent out, bringing the total funds that have been recovered and distributed to victims up to more than $3.6 billion.

As a result of these payments, claims for 182 victims have been fully satisfied, according to the trustee's office. But the remaining 1,048 investors are still waiting to receive all of their stolen funds.

About $17.3 billion was lost to Madoff's long-running pyramid-style scheme, which came crashing down with his arrest on Dec. 11, 2008 in Manhattan, where his firm was headquartered and where he lived with his wife Ruth in a $7 million penthouse. Madoff pleaded guilty three months later to fraud and other charges in New York federal district court and is currently serving a 150-year sentence at a prison in North Carolina.

The trustee said that his office has recovered about $9.15 billion so far.

20 Sep, 2012


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Source: http://www.clickondetroit.com/money/Madoff-victims-get-another-2-5-billion/-/1719116/16675014/-/rfw5q9z/-/index.html
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Focus on Florida as campaign rolls on

Obama in Florida

Brian Yaklyvich/CNN

(CNN) -

Florida takes center stage in the presidential campaign Thursday, with President Barack Obama heading to Miami for Spanish-language network Univision's "Meet the Candidates" town hall meeting. Republican challenger Mitt Romney campaigns in Sarasota.

With 29 electoral votes, Florida is always a key state in presidential elections. Obama carried the state in 2008 after President George W. Bush narrowly won Florida twice.

Both candidates are also battling for the Latino vote, a particularly strong bloc in Florida. In the latest Gallup poll, registered Hispanic voters favor Obama over Romney 66 percent to 26 percent.

Romney, who will attend private fundraisers in Palm Beach after his Sarasota rally, took his turn at the Univision forum Wednesday.

He tackled the secretly taped video of remarks at a private fund-raising event during which he said 47 percent of the country was unlikely to support him and also took on the issue of illegal immigration.

Romney said he would not support a mass deportation of illegal immigrants.

"I believe people make their own choices as to whether they want to go home and that's what I mean by self-deportation," Romney said. "People decide if they want to go back to the country of their origin and get in line legally to be able to come to this country."

The audience seemed largely supportive, cheering his immigration remarks.

Romney also said he had "demonstrated my capacity to help the 100 percent" -- a clear reference to the videotaped comments that have dominated discussion of his campaign in recent days.

During that secretly recorded May 17 fundraiser, Romney said nearly half of the population believes they are entitled to government aid and will support Obama regardless of what he does or says.

"There are 47 percent who are with him, who are dependent on government, who believe that, that they are victims, who believe that government has the responsibility to care for them. Who believe that they are entitled to health care, to food, to housing."

He also said he would "never convince" the 47 percent of Americans who pay no federal income tax "that they should take personal responsibility and care for their lives."

Throughout the day Wednesday, Romney and running mate Rep. Paul Ryan also sought to reshape the campaign narrative less than seven weeks before the November vote by accusing Obama of favoring wealth redistribution -- code for socialism among conservatives -- based on a 1998 video of the president as a state Senate candidate in Illinois.

"I think the trick is figuring out how do we structure government systems that pool resources and hence facilitate some redistribution -- because I actually believe in some redistribution, at least at a certain level to make sure that everybody's got a shot," Obama says in the clip, posted Tuesday on the Drudge Report.

America does not work by government making people dependent on government, Romney told a fund-raising event Wednesday in Atlanta, adding "that will kill the American entrepreneurship that's lifted our economy over the years."

"The question of this campaign is not who cares about the poor and the middle class? I do. He does," the former Massachusetts governor said to rising cheers. "The question is who can help the poor and the middle class? I can! He can't!"

The White House on Wednesday characterized the GOP attacks as an effort to divert attention from Romney's controversial remarks.

A flurry of polls this week showed Romney unable to make up ground on Obama and slipping behind in some key battleground states, including Virginia. A new CNN/ORC International survey on Wednesday showed Obama also holding a 52 percent to 44 percent lead in Romney's birth state of Michigan.

Another new poll showed the secretly recorded Romney comments had a moderately negative impact on registered voters so far.

The Gallup survey taken Tuesday showed 36 percent of registered voters indicated they would be less likely to vote for Romney after the videotapes were released, while 20 percent said they were more likely to vote for Romney and 43 percent said the comments made no difference.


20 Sep, 2012


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Source: http://www.clickondetroit.com/news/politics/Focus-on-Florida-as-campaign-rolls-on/-/1719386/16674668/-/mo948bz/-/index.html
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Baby's arrival surprises base in Afghanistan

Baby

iStock Image

(CNN) -

A huge British military base in one of the most dangerous parts of Afghanistan got a surprise arrival this week as a soldier gave birth to a baby boy.

Britain's Ministry of Defence does not allow troops to deploy on operations if they are pregnant, but the ministry didn't know the woman was expecting.

It refused to confirm reports in the British media that the soldier didn't know she was pregnant.

The mother and baby at Camp Bastion are both in stable condition in a field hospital, the ministry said.

That's the same camp where Britain's Prince Harry is stationed as an Apache helicopter pilot in the Taliban heartland of Helmand province.

The ministry said the baby was born Tuesday -- four days after a dramatic raid on the base by well-trained Afghan insurgents dressed in U.S. military uniforms.

The insurgents, working in three teams of five, infiltrated the base, killed two U.S. Marines, destroyed six jets and damaged others before most of them were killed. One attacker was wounded and captured, NATO's International Security Assistance Force said.

A medical team from John Radcliffe Hospital in Oxford, England, is preparing to go to Afghanistan to care for the mother, the hospital said Thursday.

The mother and baby will be brought back to the United Kingdom for treatment and care, the ministry said.

It could not confirm reports that the baby born at Camp Bastion was named Sebastian. It did not name the mother, whom British newspapers are saying is a gunner.

The ministry could not immediately say whether babies had ever been born to British military personnel before in Afghanistan.


20 Sep, 2012


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Source: http://www.clickondetroit.com/news/Baby-s-arrival-surprises-base-in-Afghanistan/-/1719418/16674084/-/k25ynbz/-/index.html
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Jobless claims dip slightly

NEW YORK (CNNMoney) -

The number of people filing for their first week of unemployment benefits fell slightly last week, the government said Thursday.

The Labor Department said 382,000 people filed first-time jobless claims in the week ended Sept. 15. That was worse than the forecast of 375,000 people from economists surveyed by Briefing.com, although it was down 3,000 from the revised reading from the previous week.

The previous week's reading had itself been inflated by an estimated 9,000 filing for claims during that period due to Tropical Storm Isaac earlier in the month.

The report follows last week's closely watched August jobs report, which showed employers added only 96,000 to payrolls in the month, less than needed to keep up with population growth. While the unemployment rate fell to 8.1 percent in that report, that was only because nearly 400,000 of those without jobs, mostly young adults, stopped looking for work and were no longer counted as unemployed.

About 3.3 million received their second week or more of unemployment benefits last week, which was down 32,000 from those who were getting ongoing help during the previous period.

The continued weakness in the jobs market is a major reason that the Federal Reserve announced last week that it would be pumping more money into the economy through buying mortgage bonds, a third round of quantitative easing popularly known as QE3.

The four-week moving average for initial jobless claims increased by 2,000 to 377,750. That average is used by economists to eliminate any week-to-week volatility in the reading.

20 Sep, 2012


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Source: http://www.clickondetroit.com/money/Jobless-claims-dip-slightly/-/1719116/16674506/-/59a07ez/-/index.html
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Mississippi has highest poverty, lowest income

NEW YORK (CNNMoney) -

Mississippi once again leads the nation in poverty and lags in median household income.

According to U.S. Census Bureau figures released Thursday. Mississippi had a poverty rate of 22.6 percent in 2011, while its median household income came in at $36,919. Both were roughly the same as the year before.

Median household income declined in 18 states between 2010 and 2011, with Nevada registering the largest drop of 6 percent. In the remaining states, it stayed statistically the same. Maryland once again had the highest median household income, coming in at $70,004.

Meanwhile, the percentage of people in poverty increased in 17 states.

Vermont was the only state where median household income increased and the number and share of people in poverty fell.

The District of Columbia had the highest income inequality, while Wyoming had the most equal incomes.

Nationally, Census figures showed that median household income was $50,054 in 2011, down 1.5 percent from a year earlier. Income inequality widened, as the highest income echelon experienced a jump, while those in the middle saw income shrink.

The national poverty rate eased to 15 percent in 2011, down slightly from 15.1 percent the year before. Some 46.2 million people fell below the poverty line last year, and one in five children were poor.

20 Sep, 2012


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Source: http://www.clickondetroit.com/money/Mississippi-has-highest-poverty-lowest-income/-/1719116/16673604/-/e4wkqk/-/index.html
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Two girls beat up Iran cleric over dress code

Iran map

yorkfoto/iStock

TEHRAN, Iran (CNN) -

They may be a far cry from their Western counterparts fighting for the acceptance to breast-feed -- or go topless -- in public, but two girls clobbered a cleric recently in a small town in Iran, when he admonished one of them to cover herself more completely.

The cleric said he asked "politely," but the girl's angry reaction and some pugilistic double-teaming with her friend landed the holy man in the hospital, according to an account in the semiofficial Mehr News Agency on Monday.

Hojatoleslam Ali Beheshti says he encountered the girls on his way to the mosque in the village of Shahmirzad for noon prayers in late August.

He told one of the girls to cover up, the report said.

"She responded by telling me to cover my eyes, which was very insulting to me," Beheshti said. So he asked her a second time to cover up and also to put a lid on what he felt was verbal abuse.

She hit the man of the cloth, and he hit the ground.

"I don't remember what happened after that," he said. "I just felt her kicks and heard her insults."

Beheshti, who emerged from the infirmary three days later, said he did not file a complaint against the girls.

But he doesn't mind the local prosecutor's investigation into the matter either, "as long as the case helps the cause of Islamic hijab."

Fighting with morality police or private individuals telling women to cover up is rare in small towns. It's more common in larger cities, where women are more likely to take a stand.


20 Sep, 2012


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Source: http://www.clickondetroit.com/news/Two-girls-beat-up-Iran-cleric-over-dress-code/-/1719418/16672698/-/qabqde/-/index.html
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