What They Hate About Mumbai

by SUKETU MEHTA
New York Times

My bleeding city. My poor great bleeding heart of a city. Why do they go after Mumbai? There’s something about this island-state that appalls religious extremists, Hindus and Muslims alike. Perhaps because Mumbai stands for lucre, profane dreams and an indiscriminate openness.

Mumbai is all about dhandha, or transaction. From the street food vendor squatting on a sidewalk, fiercely guarding his little business, to the tycoons and their dreams of acquiring Hollywood, this city understands money and has no guilt about the getting and spending of it. I once asked a Muslim man living in a shack without indoor plumbing what kept him in the city. “Mumbai is a golden songbird,” he said. It flies quick and sly, and you’ll have to work hard to catch it, but if you do, a fabulous fortune will open up for you. The executives who congregated in the Taj Mahal hotel were chasing this golden songbird. The terrorists want to kill the songbird.

Just as cinema is a mass dream of the audience, Mumbai is a mass dream of the peoples of South Asia. Bollywood movies are the most popular form of entertainment across the subcontinent. Through them, every Pakistani and Bangladeshi is familiar with the wedding-cake architecture of the Taj and the arc of the Gateway of India, symbols of the city that gives the industry its name. It is no wonder that one of the first things the Taliban did upon entering Kabul was to shut down the Bollywood video rental stores. The Taliban also banned, wouldn’t you know it, the keeping of songbirds.

Bollywood dream-makers are shaken. “I am ashamed to say this,” Amitabh Bachchan, superstar of a hundred action movies, wrote on his blog. “As the events of the terror attack unfolded in front of me, I did something for the first time and one that I had hoped never ever to be in a situation to do. Before retiring for the night, I pulled out my licensed .32 revolver, loaded it and put it under my pillow.”

Mumbai is a “soft target,” the terrorism analysts say. Anybody can walk into the hotels, the hospitals, the train stations, and start spraying with a machine gun. Where are the metal detectors, the random bag checks? In Mumbai, it’s impossible to control the crowd. In other cities, if there’s an explosion, people run away from it. In Mumbai, people run toward it — to help. Greater Mumbai takes in a million new residents a year. This is the problem, say the nativists. The city is just too hospitable. You let them in, and they break your heart.

In the Bombay I grew up in, your religion was a personal eccentricity, like a hairstyle. In my school, you were denominated by which cricketer or Bollywood star you worshiped, not which prophet. In today’s Mumbai, things have changed. Hindu and Muslim demagogues want the mobs to come out again in the streets, and slaughter one another in the name of God. They want India and Pakistan to go to war. They want Indian Muslims to be expelled. They want India to get out of Kashmir. They want mosques torn down. They want temples bombed.

And now it looks as if the latest terrorists were our neighbors, young men dressed not in Afghan tunics but in blue jeans and designer T-shirts. Being South Asian, they would have grown up watching the painted lady that is Mumbai in the movies: a city of flashy cars and flashier women. A pleasure-loving city, a sensual city. Everything that preachers of every religion thunder against. It is, as a monk of the pacifist Jain religion explained to me, “paap-ni-bhoomi”: the sinful land.

In 1993, Hindu mobs burned people alive in the streets — for the crime of being Muslim in Mumbai. Now these young Muslim men murdered people in front of their families — for the crime of visiting Mumbai. They attacked the luxury businessmen’s hotels. They attacked the open-air Cafe Leopold, where backpackers of the world refresh themselves with cheap beer out of three-foot-high towers before heading out into India. Their drunken revelry, their shameless flirting, must have offended the righteous believers in the jihad. They attacked the train station everyone calls V.T., the terminus for runaways and dreamers from all across India. And in the attack on the Chabad house, for the first time ever, it became dangerous to be Jewish in India.

The terrorists’ message was clear: Stay away from Mumbai or you will get killed. Cricket matches with visiting English and Australian teams have been shelved. Japanese and Western companies have closed their Mumbai offices and prohibited their employees from visiting the city. Tour groups are canceling long-planned trips.

But the best answer to the terrorists is to dream bigger, make even more money, and visit Mumbai more than ever. Dream of making a good home for all Mumbaikars, not just the denizens of $500-a-night hotel rooms. Dream not just of Bollywood stars like Aishwarya Rai or Shah Rukh Khan, but of clean running water, humane mass transit, better toilets, a responsive government. Make a killing not in God’s name but in the stock market, and then turn up the forbidden music and dance; work hard and party harder.

If the rest of the world wants to help, it should run toward the explosion. It should fly to Mumbai, and spend money. Where else are you going to be safe? New York? London? Madrid?

So I’m booking flights to Mumbai. I’m going to go get a beer at the Leopold, stroll over to the Taj for samosas at the Sea Lounge, and watch a Bollywood movie at the Metro. Stimulus doesn’t have to be just economic.

Suketu Mehta, a professor of journalism at New York University, is the author of “Maximum City: Bombay Lost and Found.”

Qaida in partnership with Lashkar in India

Times of India

NEW DELHI: Terror does leave a calling card. As the enormity of the attack on Mumbai sank in, it seemed like the arrival of al-Qaida in India, a version of 9/11 designed to attract a global audience given the scale of violence and the planned targeting of westerners.

With the capture of a terrorist, the actual authors were revealed. It wasn't the al-Qaida. But the jihadi credentials were not much less impressive with Lashkar-e-Taiba named as the suspect. Given the operation's obvious planning, few doubted it was the deadly firm of LeT-ISI in action yet again.

Yet the difference between LeT and al-Qaida is not so significant as might have once been the case. In recent years, Lashkar has emerged as not only the single largest pan-Indian terror threat, but also a partner with al-Qaida in jihadi battlegrounds like Iraq, Chechnya and Afghanistan. It has shared training camps and cadre and used al-Qaida-Taliban facilities for a "jihad" against India.

It has been proscribed by US and UK who have recognised LeT to be a global terrorist organisation. In UK, it has been allied to the Kashmiri underground, for long recognised as one of the easiest way to get into the jihadi circuit which leads to Pakistan. It poses as a charity and openly seeks donations in Pakistani cities for the "Kashmir cause" and its leader, Prof Hafiz Saeed, is allowed free movement apart from occasional cosmetic spells of house arrest.

Before the Markaz-da'wa wal-irshad, the Lashkar's religio-political wing, was banned, its website regularly carried the view of its founder. Saeed's view of LeT's mission was quite unambiguous. He argued that Kashmir was the "gateway" to India, much of which comprised "lost Muslim lands". He saw jihad in Kashmir as a religious duty and fully identified himself with the 9/11 mayhem that Osama bin Laden wreaked.

Aligned with the Ahl-e-Hadees sect, Lashkar was founded in 1987 by Saeed, who incidentally was also trained as an engineer like Osama and many other prominent jihadis, and who drew his inspiration from the Egypt-based Muslim Brotherhood — an organisation that saw Palestine as an Islamic cause way back in the 1930's. In collaboration with ISI, Lashkar built up an impressive Kashmir portfolio with recruits chiefly drawn from Pakistani Punjabis, Pashtoons, Bangladeshis, Arabs and south-east Asians.

But its vision has never been Kashmir-centric as it bids to re-establish Muslim rule from Morocco to Indonesia and also eyes north Australia as part of its likely domain.

NY subway terror threat emerges on busy travel day

by Devlin Barrett and Tom Hays
AP

Police bolstered security in subways and trains Wednesday after the government warned that al-Qaida suicide bombers were contemplating an attack on New York's mass-transit systems during the holiday season. An internal memo obtained by The Associated Press says the FBI has received a "plausible but unsubstantiated" report that al-Qaida terrorists in late September may have discussed attacking the subway system.

The internal bulletin says al-Qaida terrorists "in late September may have discussed targeting transit systems in and around New York City. These discussions reportedly involved the use of suicide bombers or explosives placed on subway/passenger rail systems," according to the document.

"We have no specific details to confirm that this plot has developed beyond aspirational planning, but we are issuing this warning out of concern that such an attack could possibly be conducted during the forthcoming holiday season," according to the warning dated Tuesday.

A person briefed on the matter, speaking to The Associated Press on condition of anonymity because of the sensitivity of the intelligence-gathering work, said the threat may also be directed at the passenger rail lines running through New York, such as Amtrak and the Long Island Rail Road, which are particularly busy with Thanksgiving holiday travelers.

A federal law enforcement official said there's no indication that anyone involved in the planning is in the United States. That official also spoke on condition of anonymity because it involved intelligence-gathering.

While law enforcement stepped up patrols around subways and trains, many commuters around the city were unfazed by the news and had not even heard of the threat.

"If you get scared that means they win," commuter Omid Sima said on the platform of the subway below Rockefeller Center. "There's always been terror warnings. I can't change my life because of that."

The Big Apple's tightly packed passenger trains and subway cars have long been a source of concern for police officers — and a tempting target for would-be terrorists — but there is often disagreement as to how seriously authorities should take specific intelligence reports.

The city has more than 450 subway stations that handle millions of commuters every day.

A Pakistani immigrant was arrested and convicted for a scheme to blow up the subway station at Herald Square in 2004. There was also a planned cyanide attack on the subways by al-Qaida operatives that authorities say was called off in 2002; another aborted al-Qaida plot to destroy the Brooklyn Bridge in 2003; and a plot to bomb underwater train tunnels to flood lower Manhattan, which was broken up in 2006 by several arrests overseas.

Three years ago, authorities weighed reports that bombers might try to use baby strollers to bring explosives into city trains. Many security officials later concluded that was a false alarm.

NYPD spokesman Paul Browne said they have received an unsubstantiated report and as a result have "deployed additional resources in the mass transit system."

While federal agencies regularly issue all sorts of advisory warnings, the language of this one is particularly blunt.

Intelligence and homeland security officials are working with local authorities to try to corroborate the information "and will continue to investigate every possible lead," the memo says.

Rep. Peter King, the top Republican on the House Homeland Security Committee, said authorities "have very real specifics as to who it is and where the conversation took place and who conducted it."

"It certainly involves suicide bombing attacks on the mass transit system in and around New York and it's plausible, but there's no evidence yet that it's in the process of being carried out," King said.

Department of Homeland Security spokesman Russ Knocke said the warning was issued "out of an abundance of caution going into this holiday season."

No changes are being made to the nation's threat level, or for transit systems at this time, he said.

FBI spokesman Richard Kolko confirmed only that his agency and the Homeland Security Department issued a bulletin Tuesday night to state and local authorities, and the information is being reviewed.And here is the rest of it.

BAILOUT GROWS: Total relief package up to $8.5 trillion - nobody knows risk to taxpayer

by Kathleen Pender
San Francisco Chronicle

The federal government committed an additional $800 billion to two new loan programs on Tuesday, bringing its cumulative commitment to financial rescue initiatives to a staggering $8.5 trillion, according to Bloomberg News.

That sum represents almost 60 percent of the nation's estimated gross domestic product.

Given the unprecedented size and complexity of these programs and the fact that many have never been tried before, it's impossible to predict how much they will cost taxpayers. The final cost won't be known for many years.

The money has been committed to a wide array of programs, including loans and loan guarantees, asset purchases, equity investments in financial companies, tax breaks for banks, help for struggling homeowners and a currency stabilization fund.

Most of the money, about $5.5 trillion, comes from the Federal Reserve, which as an independent entity does not need congressional approval to lend money to banks or, in "unusual and exigent circumstances," to other financial institutions.

To stimulate lending, the Fed said on Tuesday it will purchase up to $600 billion in mortgage debt issued or backed by Fannie Mae, Freddie Mac and government housing agencies. It also will lend up to $200 billion to holders of securities backed by consumer and small-business loans. All but $20 billion of that $800 billion represents new commitments, a Fed spokeswoman said.

About $1.1 trillion of the $8.5 trillion is coming from the Treasury Department, including $700 billion approved by Congress in dramatic fashion under the Troubled Asset Relief Program.

The rest of the commitments are coming from the Federal Deposit Insurance Corp. and the Federal Housing Administration.

Only about $3.2 trillion of the $8.5 trillion has been tapped so far, according to Bloomberg. Some of it might never be.

Relatively little of the money represents direct outlays of cash with no strings attached, such as the $168 billion in stimulus checks mailed last spring.

Where it's goingMost of the money is going into loans or loan guarantees, asset purchases or stock investments on which the government could see some return.

"If the economy were to miraculously recover, the taxpayer could make money. That's not my best guess or even a likely scenario," but it's not inconceivable, says Anil Kashyap, a professor at the University of Chicago's Booth School of Business.

The risk/reward ratio for taxpayers varies greatly from program to program.

For example, the first deal the government made when it bailed out insurance giant AIG had little risk and a lot of potential upside for taxpayers, Kashyap said. "Then it turned out the situation (at AIG) was worse than realized, and the terms were so brutal (to AIG) that we had to renegotiate. Now we have given them a lot more credit on more generous terms."

Kashyap says the worst deal for taxpayers could be the Citigroup deal announced late Sunday. The government agreed to buy an additional $20 billion in preferred stock and absorb up to $249 billion in losses on troubled assets owned by Citi.

Given that Citigroup's entire market value on Friday was $20.5 billion, "instead of taking that $20 billion in preferred shares we could have bought the company," he says.

It's hard to say how much the overall rescue attempt will add to the annual deficit or the national debt because the government accounts for each program differently.

If the Treasury borrows money to finance a program, that money adds to the federal debt and must eventually be paid off, with interest, says Diane Lim Rogers, chief economist with the Concord Coalition, a nonpartisan group that aims to eliminate federal deficits.

The federal debt held by the public has risen to $6.4 trillion from $5.5 trillion at the end of August. (Total debt, including that owed to Social Security and other government agencies, stands at more than $10 trillion.)

However, a $1 billion increase in the federal debt does not necessarily increase the annual budget deficit by $1 billion because it is expected to be repaid over time, Rogers said.

Annual deficitA deficit arises when the government 's expenditures exceed its revenues in a particular year. Some estimate that the federal deficit will exceed $1 trillion this fiscal year as a result of the economic slowdown and efforts to revive it.

The Fed's activities to shore up the financial system do not show up directly on the federal budget, although they can have an impact. The Fed lends money from its own balance sheet or by essentially creating new money. It has been doing both this year.

The problem is, "if you print money all the time, the money becomes worth less," Rogers says. This usually leads to higher inflation and higher interest rates. The value of the dollar also falls because foreign investors become less willing to invest in the United States.

Today, interest rates are relatively low and the dollar has been mostly strengthening this year because U.S. Treasury securities "are still for the moment a very safe thing to be investing in because the financial market is so unstable," Rogers said. "Once we stabilize the stock market, people will not be so enamored of clutching onto Treasurys."

At that point, interest rates and inflation will rise. Increased borrowing by the Treasury will also put upward pressure on interest rates.

Deflation a big concernToday, however, the Fed is more worried about deflation than inflation and is willing to flood the market with money if necessary to prevent an economic collapse.

Federal Reserve Chairman Ben Bernanke "has ordered the helicopters to get ready," said Axel Merk, president of Merk Investments. "The helicopters are hovering and the first cash is making it through the seams. Soon, a door may be opened."

Rogers says her biggest fear is not hyperinflation and the social unrest it could unleash. "I'm more worried about a lot of federal dollars being committed and not having much to show for it. My worst fear is we are leaving our children with a huge debt burden and not much left to pay it back."

Economic rescue Key dates in the federal government 's campaign to alleviate the economic crisis.

March 11: The Federal Reserve announces a rescue package to provide up to $200 billion in loans to banks and investment houses and let them put up risky mortgage-backed securities as collateral.

March 16: The Fed provides a $29 billion loan to JPMorgan Chase & Co. as part of its purchase of investment bank Bear Stearns.

July 30: President Bush signs a housing bill including $300 billion in new loan authority for the government to back cheaper mortgages for troubled homeowners.

Sept. 7: The Treasury takes over mortgage giants Fannie Mae and Freddie Mac, putting them into a conservatorship and pledging up to $200 billion to back their assets.

Sept. 16: The Fed injects $85 billion into the failing American International Group, one of the world's largest insurance companies.

Sept. 16: The Fed pumps $70 billion more into the nation's financial system to help ease credit stresses.

Sept. 19: The Treasury temporarily guarantees money market funds against losses up to $50 billion.

Oct. 3: President Bush signs the $700 billion economic bailout package. Treasury Secretary Henry Paulson says the money will be used to buy distressed mortgage-related securities from banks.

Oct. 6: The Fed increases a short-term loan program, saying it is boosting short-term lending to banks to $150 billion.

Oct. 7: The Fed says it will start buying unsecured short-term debt from companies, and says that up to $1.3 trillion of the debt may qualify for the program.

Oct. 8: The Fed agrees to lend AIG $37.8 billion more, bringing total to about $123 billion.

Oct. 14: The Treasury says it will use $250 billion of the $700 billion bailout to inject capital into the banks, with $125 billion provided to nine of the largest.

Oct. 14: The FDIC says it will temporarily guarantee up to a total of $1.4 trillion in loans between banks.

Oct. 21: The Fed says it will provide up to $540 billion in financing to provide liquidity for money market mutual funds.

Nov. 10: The Treasury and Fed replace the two loans provided to AIG with a $150 billion aid package that includes an infusion of $40 billion from the government 's bailout fund.

Nov. 12: Paulson says the government will not buy distressed mortgage-related assets, but instead will concentrate on injecting capital into banks.

Nov. 17: Treasury says it has provided $33.6 billion in capital to another 21 banks. So far, the government has invested $158.6 billion in 30 banks.

Sunday: The Treasury says it will invest $20 billion in Citigroup Inc., on top of $25 billion provided Oct. 14. The Treasury, Fed and FDIC also pledge to backstop large losses Citigroup might absorb on $306 billion in real estate-related assets.

Tuesday: The Fed says it will purchase up to $600 billion more in mortgage-related assets and will lend up to $200 billion to the holders of securities backed by various types of consumer loans. And here is the rest of it.

Germans held in Kosovo over blast

BBC

A Kosovan judge has ordered three Germans suspected of throwing an explosive device at the EU headquarters in Pristina to be held for 30 days.

The three reportedly deny involvement in the attack on 14 November, saying they were detained while investigating it themselves.

Windows in the glass-fronted building were shattered but nobody was hurt.

German and Kosovo media report that the men are German intelligence agents but officials in Berlin refuse to comment.

Lawyers for the detainees say the prosecution is seeking terrorism charges that carry a maximum 20-year sentence.

A spokesman for the German foreign ministry in Berlin confirmed that three Germans had been arrested on Thursday, but declined to make any further comment as an investigation was under way.

The German weekly Der Spiegel said the men worked for the German intelligence agency BND, and that they told investigators they had been examining the scene of the explosion, but had not been involved in it.

Kosovo declared independence from Serbia in February after nine years under UN stewardship and is recognised by more than 50 countries, including Germany.

Four days before the bomb attack, Kosovo's Albanian majority rejected an agreement between the UN and Serbia on the deployment of the much-delayed EU police and justice mission Eulex.