A Year of Market Gains, Despite Political Turmoil

A year ago, some thought 2012 was destined to be the year that the euro zone — and maybe even the entire European Union — broke up. The banks that supported their governments, and that in turn depended on those same governments for bailouts if they went broke, were deemed to be particularly vulnerable to disaster.

It did not happen, and while the euro zone countries hardly solved their economic problems, the Continent’s stock markets turned out to be good investments in 2012, with bank shares among the best performers. The same could be said about the United States, where the broad stock market posted double-digit gains and Bank of America shares doubled in 2012, albeit from a very depressed level.

Over all, the Standard & Poor’s Euro 350-stock index was up 13 percent for the year, measured in euros, and more than 15 percent measured in dollars. The S.& P. 500 wound up the year with a gain of 13 percent.

It may have been typical of 2012 that it was politician and central bankers — not economic news or corporate developments — that dominated investor attention. As the year ended, the difference was that it was Washington, not Europe, where the squabbles were taking place.

For much of the year, it appeared that the European squabbles were leading nowhere, and by midsummer, markets were pessimistic about the outcome. Finally, Mario Draghi, the president of the European Central Bank, took decisive action to assure that the banks — and the governments that depended on them — would have access to funds. That did not turn around recessionary conditions in much of the euro zone, but it was enough to turn around financial markets. Prices of government bonds in many of the most troubled countries began to rise. Those who bet that Europe would solve its problems did well in the financial markets.

The accompanying charts show the performance of stocks in 10 economic sectors in both Europe and the United States, both in 2012 and since Oct. 9, 2007, the day that world stock markets peaked before what would turn out to be a world recession and credit crisis.

What stands out is how well financial stocks and consumer discretionary stocks did during 2012. The latter stocks are things purchased by consumers that are likely to do better when the economy is improving. In the United States, the two best such stocks in the S.& P. 500 were PulteGroup, a homebuilder, and Whirlpool, an appliance maker.

But while Europe did better in 2012, it remains much farther from recovering all of the losses experienced since the 2007 peak. The American index is just 9 percent lower than that, while the European index is about a third below where it was then. The only sectors that have completely made up their losses on both sides of the Atlantic are health care and consumer staples. In the United States, the consumer discretionary and information technology sectors have also done so, although the latter sector’s performance is largely because of Apple, whose shares are more than three times as high as they were in 2007.

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Sens. Feinstein, Graham clash on gun control

If Washington’s effort to reach a deal on the "fiscal cliff" looks daunting, just wait for the debate over what to do about mass shootings like the one that killed 20 children and six adults at an elementary school in Newtown, Conn.

Appearing on "Fox News Sunday," Sen. Dianne Feinstein (D-Calif.) and Sen. Lindsey Graham (R-S.C.) clashed sharply over Feinstein’s proposal to ban military-style assault weapons.

“The question comes, what do we do about the growing sophistication of military weapons on the streets of our cities?” Feinstein said. 

“When you have someone walking in and slaying, in the most brutal way, 6-year olds, something is really wrong,” said Feinstein, who has made gun control a key issue since her days as president of the San Francisco Board of Supervisors in 1978 when her colleague Harvey Milk and the city’s mayor, George Moscone, were shot and killed in City Hall by a rival politician.

PHOTOS: Notable moments of the 2012 presidential election

Feinstein has proposed a prohibition on the type of semi-automatic rifles used in the Newtown shooting and other recent mass killings, adding that her bill would be much tougher than the loophole-ridden assault weapons ban in place from 1994-2004. Assault rifles already in circulation would remain legal, but the owners would have to register them and become licensed. Her bill also would ban high-capacity magazines.

Limiting guns is precisely the wrong answer, Graham responded.

Crime is at record lows in part because guns are more widespread than ever, he said. He endorsed the proposal by the National Rifle Assn. to put armed guards in every school. He said he owns an AR-15, the type of semi-automatic rifled used by Adam Lanza in the Newtown school shooting.

“What she is proposing is a massive intervention,” Graham said. “Gun sales are up, and crime is down.  You’re not going to be able to stop mass murderers with no criminal record just by taking my AR-15 and making me pay $200 and get my fingerprints and say I can’t buy another one.

"The best solution to protect children is to have somebody there to stop the shooter, not get everybody’s gun in the country."

Feinstein responded that there was an armed guard at Columbine High School in 1999, but he was unable to “stop the shooters,” Eric Harris and Dylan Klebold, who killed 15 people and wounded 23.

Appearing on NBC’s "Meet the Press," President Obama, who supports an assault weapons ban, said such measures could only be enacted if the public puts pressure on Congress.

“We're not going to get this done unless the American people decide it's important,” Obama said.

“And so this is not going to be simply a matter of me spending political capital," Obama said. "One of the things that you learn, having now been in this office for four years, is the old adage of Abraham Lincoln's -- that with public opinion there's nothing you can't do and without public opinion there's very little you can get done in this town.”

Obama said he would make a series of proposals and put “my full weight behind it … but ultimately the way this is going to happen is because the American people say, ‘That's right. We are willing to make different choices for the country and we support those in Congress who are willing to take those actions.’ And will there be resistance? Absolutely there will be resistance.”

The day of the Newtown shootings, he said, “was the worst day of my presidency.”

But the question is “whether we are actually shook up enough by what happened here that it does not just become another one of these routine episodes where it gets a lot of attention for a couple of weeks and then it drifts away.”

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ken.dilanian@latimes.com

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Wired Science's Top Image Galleries of the Year

Many of our most popular posts are image galleries, and this year our readers favorite collections included microscope photos, doomsday scenarios, auroras and lots of images of Earth from space.

The satellite image above of Brasilia is part of the most popular post of the year.

Above:

I think it's safe to say that our readers like looking at images of Earth from space almost as much as we do. Satellite imagery was the subject of four of Wired Science's 10 most popular galleries of 2012, with this gallery of planned cities topping the list.

See the full gallery.

Image: NASA/USGS

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‘The Hobbit’ stays atop box office for third week

LOS ANGELES (AP) — “The Hobbit: An Unexpected Journey” continues to rule them all at the box office, staying on top for a third-straight week with nearly $ 33 million.

The Warner Bros. fantasy epic from director Peter Jackson, based on the J.R.R. Tolkien novel, has made $ 222.7 million domestically alone.

Two big holiday movies — and potential awards contenders — also had strong openings. Quentin Tarantino‘s spaghetti Western-blaxploitation mash-up “Django Unchained” came in second place for the weekend with $ 30.7 million. The Weinstein Co. revenge epic, starring Jamie Foxx and Christoph Waltz, has earned $ 64 million since its Christmas Day opening.

And in third place with $ 28 million was the sweeping, all-singing “Les Miserables.” The Universal Pictures musical starring Hugh Jackman and Anne Hathaway has made $ 67.5 million since debuting on Christmas.

Entertainment News Headlines – Yahoo! News

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Well: Exercise and the Ever-Smarter Human Brain

Anyone whose resolve to exercise in 2013 is a bit shaky might want to consider an emerging scientific view of human evolution. It suggests that we are clever today in part because a million years ago, we could outrun and outwalk most other mammals over long distances. Our brains were shaped and sharpened by movement, the idea goes, and we continue to require regular physical activity in order for our brains to function optimally.

Phys Ed

Gretchen Reynolds on the science of fitness.

The role of physical endurance in shaping humankind has intrigued anthropologists and gripped the popular imagination for some time. In 2004, the evolutionary biologists Daniel E. Lieberman of Harvard and Dennis M. Bramble of the University of Utah published a seminal article in the journal Nature titled “Endurance Running and the Evolution of Homo,” in which they posited that our bipedal ancestors survived by becoming endurance athletes, able to bring down swifter prey through sheer doggedness, jogging and plodding along behind them until the animals dropped.

Endurance produced meals, which provided energy for mating, which meant that adept early joggers passed along their genes. In this way, natural selection drove early humans to become even more athletic, Dr. Lieberman and other scientists have written, their bodies developing longer legs, shorter toes, less hair and complicated inner-ear mechanisms to maintain balance and stability during upright ambulation. Movement shaped the human body.

But simultaneously, in a development that until recently many scientists viewed as unrelated, humans were becoming smarter. Their brains were increasing rapidly in size.

Today, humans have a brain that is about three times larger than would be expected, anthropologists say, given our species’ body size in comparison with that of other mammals.

To explain those outsized brains, evolutionary scientists have pointed to such occurrences as meat eating and, perhaps most determinatively, our early ancestors’ need for social interaction. Early humans had to plan and execute hunts as a group, which required complicated thinking patterns and, it’s been thought, rewarded the social and brainy with evolutionary success. According to that hypothesis, the evolution of the brain was driven by the need to think.

But now some scientists are suggesting that physical activity also played a critical role in making our brains larger.

To reach that conclusion, anthropologists began by looking at existing data about brain size and endurance capacity in a variety of mammals, including dogs, guinea pigs, foxes, mice, wolves, rats, civet cats, antelope, mongooses, goats, sheep and elands. They found a notable pattern. Species like dogs and rats that had a high innate endurance capacity, which presumably had evolved over millenniums, also had large brain volumes relative to their body size.

The researchers also looked at recent experiments in which mice and rats were systematically bred to be marathon runners. Lab animals that willingly put in the most miles on running wheels were interbred, resulting in the creation of a line of lab animals that excelled at running.

Interestingly, after multiple generations, these animals began to develop innately high levels of substances that promote tissue growth and health, including a protein called brain-derived neurotrophic factor, or BDNF. These substances are important for endurance performance. They also are known to drive brain growth.

What all of this means, says David A. Raichlen, an anthropologist at the University of Arizona and an author of a new article about the evolution of human brains appearing in the January issue of Proceedings of the Royal Society Biology, is that physical activity may have helped to make early humans smarter.

“We think that what happened” in our early hunter-gatherer ancestors, he says, is that the more athletic and active survived and, as with the lab mice, passed along physiological characteristics that improved their endurance, including elevated levels of BDNF. Eventually, these early athletes had enough BDNF coursing through their bodies that some could migrate from the muscles to the brain, where it nudged the growth of brain tissue.

Those particular early humans then applied their growing ability to think and reason toward better tracking prey, becoming the best-fed and most successful from an evolutionary standpoint. Being in motion made them smarter, and being smarter now allowed them to move more efficiently.

And out of all of this came, eventually, an ability to understand higher math and invent iPads. But that was some time later.

The broad point of this new notion is that if physical activity helped to mold the structure of our brains, then it most likely remains essential to brain health today, says John D. Polk, an associate professor of anthropology at the University of Illinois at Urbana-Champaign, and co-author, with Dr. Raichlen, of the new article.

And there is scientific support for that idea. Recent studies have shown, he says, that “regular exercise, even walking,” leads to more robust mental abilities, “beginning in childhood and continuing into old age.”

Of course, the hypothesis that jogging after prey helped to drive human brain evolution is just a hypothesis, Dr. Raichlen says, and almost unprovable.

But it is compelling, says Harvard’s Dr. Lieberman, who has worked with the authors of the new article. “I fundamentally agree that there is a deep evolutionary basis for the relationship between a healthy body and a healthy mind,” he says, a relationship that makes the term “jogging your memory” more literal than most of us might have expected and provides a powerful incentive to be active in 2013.

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Some Arctic seals now officially listed as threatened with extinction

First came the polar bear. Now, the federal government has added two other marine mammals to the list of creatures threatened with extinction because of vanishing sea ice in a warming Arctic.

The National Oceanic and Atmospheric Administration has officially listed bearded seal and the ringed seal as threatened under the Endangered Species Act.

The reason is not inadequate supplies of fish and other food for these seals, or excessive hunting by humans. It's the loss of their sea ice habitat.

Ringed seals give birth and nurse their pups in snow caves built on ice floes. Warming temperatures bring less snow and more rain, causing these snow caves to collapse and leaving pups vulnerable to freezing to death.

Bearded seals, with thick whiskers that help them find crabs, clams, cod and other bottom-dwelling prey, also give birth and nurse their pups on pack ice over shallow waters near food sources.

This September, the Arctic sea ice receded to record low levels, a troubling trend for sea ice-dependent animals.

"Sea ice is projected to shrink both in extent and duration, with bearded seals finding inadequate ice even if they move North," NOAA Fisheries said in announcing that two distinct populations of bearded seals and four subspecies of ringed seals qualified as threatened with extinction.

A team of federal scientists, said Jon Kurland, protected resources director for NOAA Fisheries’ Alaska region, "concluded that a significant decrease in sea ice is probable later this century and that these changes will likely cause these seal populations to decline.”

Unlike the fight over the polar bear listing, the fate of the seals garnered little attention. NOAA's Fisheries, the agency in charge of protecting most marine mammals, finalized the listing just before Christmas. It was timed to meet a court-ordered deadline that stemmed from a petition by the nonprofit Center for Biological Diversity.

It's part of the center's broader campaign to push the federal government to designate Arctic sea ice as critical habitat and then take steps to protect it. The only known way to do that is to reduce emissions of planet-warming carbon dioxide and other greenhouse gasses.

ken.weiss@latimes.com

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Bridge Design Defect Drops Ice on Canadian Motorists

Last Wednesday, over 250 vehicles were hit and two people were injured by chunks of ice that fell from the newly constructed Port Mann Bridge that spans the Fraser River near Vancouver — the second longest bridge in North America and the widest in the world. An additional 30 drivers reported damage on the nearby Alex Fraser bridge. According to the Vancouver Sun, casualties include a Fiat 500 and a Suzuki Grand Vitara.

The ice emergency and subsequent temporary bridge closing were especially irksome to Vancouverites, as the Port Mann Bridge cost $3.4 billion to construct and just opened earlier this year. Last week’s storms were the first real-world tests of the bridge’s performance in inclement weather, and already politicians are holding the contractor responsible.

According to the Sun, the contract for building the new Port Mann Bridge stipulated that the “cables and structure shall be designed to avoid ice buildup from falling into traffic.” The contractor, Kiewit-Flatiron, wrapped the cables with plastic sheathing to prevent ice buildup from occurring, but the design quite obviously failed. Any repairs to the bridge — and to damaged cars — will be paid for by the contractor.

“This is the responsibility of the contractor,” said Mary Polak, BC transportation minister. “The taxpayer will not be on the hook for this.”

Indeed, the agency responsible for building the Port Mann Bridge has already reimbursed drivers for any insurance deductibles they’ve paid for damage caused by falling ice. In addition, the agency refunded all tolls paid for crossing the bridge during the hours ice was falling.

Though it’s uncommon, ice occasionally builds up on the cables of bridges, posing a threat to motorists traveling below. In 2007, 2009 and 2011, ice has fallen from the cable-stayed Veterans’ Glass City Skyway, in Toledo, OH. In each case, the bridge was closed until the ice melted. Similar problems have happened on the Tacoma Narrows Bridge in Tacoma, WA and the Zakim Bridge in Boston, MA. Other than the Port Mann, however, no other bridge has seen so much falling ice damage so many cars in so little time.

Photo: Flickr/TranBC

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Matt Damon tackles “fracking” issue in the “Promised Land”

LOS ANGELES (Reuters) – The hot-button topic of “fracking” has finally made its way to Hollywood in the new movie “Promised Land,” out in U.S. theaters on Friday, with actors Matt Damon and John Krasinski teaming up to further the debate on the energy drilling technique.

The film explores the social impact of hydraulic fracturing drilling technique, or “fracking,” which has sparked nation-wide environmental and political battles over its impact on drinking water, U.S. energy use, seismic activity and other areas.

“Promised Land” will see Damon, 42, reunite with director Gus Van Sant for the third time, following their success with 1997 film “Good Will Hunting and 2002′s “Gerry.”

In their latest film, Damon plays a corporate salesman who goes to a rural U.S. town to buy or lease land on behalf of a gas company looking to drill for oil. He soon faces opposition from a slick environmentalist, played by Krasinski.

In real life, Damon hasn’t shied away from getting involved in political and social issues, working with charities and organizations to eradicate AIDS in developing countries, bringing attention to atrocities in Sudan’s Darfur region, providing safe drinking water and stopping trees from being chopped and used for junk mail.

Yet “Promised Land,” which Damon also co-wrote and produced, doesn’t take a noticeable stance on “fracking.” The actor would not publicly state his own views, telling Reuters that he didn’t think his opinion had “any bearing” on the film.

“The point is that the movie should start a conversation. It’s certainly not a pro-fracking movie, but we didn’t want to tell people what to think,” Damon said.

The actor said he and Krasinski never set out to make a socially conscious film, and “fracking” was added in later, as a backdrop to the story.

“It wasn’t that we said we wanted to make a movie about ‘fracking’ as much as we wanted to make a movie about American identity, about real people. We wanted to make a movie about the country today, where we came from, where we are and where we are headed,” Damon said.

“‘Fracking’ was perfect because the stakes are so incredibly high and people are so divided. It asks all the questions about short-term thinking versus long-term thinking.”

Hydraulic fracturing entails pumping water laced with chemicals and sand at high pressure into shale rock formations to break them up and unleash hydrocarbons. Critics worry that “fracking” fluids or hydrocarbons can still leak into water tables from wells, or above ground.

FROM ‘ADJUSTMENT BUREAU’ TO ‘PROMISED LAND’

At first glance, the pairing of Damon with Krasinski may not come across as the perfect fit, as Damon has primarily been associated with longtime friend and collaborator Ben Affleck, both of whom won Oscars for writing “Good Will Hunting.”

Damon later become a colleague and friend to a number of key Hollywood players, including George Clooney and Brad Pitt, with whom he co-starred in the “Ocean’s Eleven” franchise.

Krasinski, 33, is best known for playing sardonic Jim Halpert on NBC’s long-running television series, “The Office,” and has had occasional supporting roles in films such as 2008′s “Leatherheads.”

Damon and Krasinski came together after meeting through Krasinski’s wife, Emily Blunt, who co-starred with Damon in the 2011 film “The Adjustment Bureau.” Damon said he and his wife started double-dating with Krasinski and Blunt, through which their collaboration on “Promised Land” came about.

The duo’s busy work schedules forced them to moonlight on weekends to make “Promised Land.”

“John showed up at my house every Saturday at breakfast and we would write all day until dinner,” Damon said. “Then we’d do it again on Sunday. I have four kids so he would come to me.”

But Damon’s determination to make the film his feature directorial debut fell through when his acting schedule changed, making it impossible to direct “Promised Land,” so he turned to Van Sant.

“My first inclination was to send the script to somebody I’d worked with before,” he said. “Gus seemed like the most obvious choice and I realized later that I’d never written anything that anyone else had directed, except Gus. I have a real comfort level with him.”

Damon said he has not given up on his dream of directing movies and has his eye on a project at movie studio Warner Bros., which has a deal with Damon and Affleck’s joint production company, Pearl Street Films.

With Affleck’s third directorial effort “Argo” becoming an awards contender, Damon joked that the film’s success can only be a good thing for his own budding directing career.

“I now happen to be partnered with the hottest director in Hollywood!” he said, laughing.

(Reporting By Zorianna Kit, Editing by Piya Sinha-Roy and Paul Simao)

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Surgery Returns to NYU Langone Medical Center

Chang W. Lee/The New York Times

Senator Charles E. Schumer spoke at a news conference Thursday about the reopening of NYU Langone Medical Center.

NYU Langone Medical Center opened its doors to surgical patients on Thursday, almost two months after Hurricane Sandy overflowed the banks of the East River and forced the evacuation of hundreds of patients.

While the medical center had been treating many outpatients, it had farmed out surgery to other hospitals, which created scheduling problems that forced many patients to have their operations on nights and weekends, when staffing is traditionally low. Some patients and doctors had to postpone not just elective but also necessary operations for lack of space at other hospitals.

The medical center’s Tisch Hospital, its major hospital for inpatient services, between 30th and 34th Streets on First Avenue, had been closed since the hurricane knocked out power and forced the evacuation of more than 300 patients, some on sleds brought down darkened flights of stairs.

“I think it’s a little bit of a miracle on 34th Street that this happened so quickly,” Senator Charles E. Schumer of New York said Thursday.

Mr. Schumer credited the medical center’s leadership and esprit de corps, and also a tour of the damaged hospital on Nov. 9 by the administrator of the Federal Emergency Management Agency, W. Craig Fugate, whom he and others escorted through watery basement hallways.

“Every time I talk to Fugate there are a lot of questions, but one is, ‘How are you doing at NYU?’ ” the senator said.

The reopening of Tisch to surgery patients and associated services, like intensive care, some types of radiology and recovery room anesthesia, was part of a phased restoration that will continue. Besides providing an essential service, surgery is among the more lucrative of hospital services.

The hospital’s emergency department is expected to delay its reopening for about 11 months, in part to accommodate an expansion in capacity to 65,000 patient visits a year, from 43,000, said Dr. Andrew W. Brotman, its senior vice president and vice dean for clinical affairs and strategy.

In the meantime, NYU Langone is setting up an urgent care center with 31 bays and an observation unit, which will be able to treat some emergency patients. It will initially not accept ambulances, but might be able to later, Dr. Brotman said. Nearby Bellevue Hospital Center, which was also evacuated, opened its emergency department to noncritical injuries on Monday.

Labor and delivery, the cancer floor, epilepsy treatment and pediatrics and neurology beyond surgery are expected to open in mid-January, Langone officials said. While some radiology equipment, which was in the basement, has been restored, other equipment — including a Gamma Knife, a device using radiation to treat brain tumors — is not back.

The flooded basement is still being worked on, and electrical gear has temporarily been moved upstairs. Mr. Schumer, a Democrat, said that a $60 billion bill to pay for hurricane losses and recovery in New York and New Jersey was nearing a vote, and that he was optimistic it would pass in the Senate with bipartisan support. But the measure’s fate in the Republican-controlled House is far less certain.

The bill includes $1.2 billion for damage and lost revenue at NYU Langone, including some money from the National Institutes of Health to restore research projects. It would also cover Long Beach Medical Center in Nassau County, Bellevue, Coney Island Hospital and the Veterans Affairs hospital in Manhattan.

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Leaders Meet at White House in Urgent Bid for Fiscal Deal

T.J. Kirkpatrick for The New York Times

Senator Harry Reid, the majority leader, returned to his office after a meeting with the president and congressional leaders on Friday.

WASHINGTON — President Obama and Congressional leaders met for make-or-break talks on the fiscal crisis at the White House on Friday as they struggled to find a way to head off a looming series of automatic tax hikes and spending cuts to domestic and military programs.

The president was scheduled to make a public statement at 5:45 p.m. Eastern.

After meeting for just over an hour at the White House, the four Congressional leaders — Speaker John A. Boehner; Representative Nancy Pelosi, the Democratic leader; Senator Mitch McConnell, the Republican leader; and Senator Harry Reid, the majority leader — emerged, one by one, into the chilly dusk. They avoided reporters and cameramen who were waiting and took swiftly to the S.U.V.'s to exit the White House grounds. Mr. Reid was the last to depart, and did not look up at reporters who shouted questions at him from their perch about 50 yards away.

This was the first time the group has met together in weeks to try to reach a resolution as Congress headed toward a rare New Year’s Eve session.

Upon returning to the Capitol, Ms. Pelosi told reporters that the talks were candid and constructive. Mr. McConnell entered the Capitol and headed to the Senate floor where votes were occurring and was immediately surrounded by his fellow Republicans. He spoke to them at length.

The meeting between Mr. Obama and the top lawmakers started with the president reiterating his demand for an extension of tax cuts on incomes below $250,000.

That opening offer lowered expectations on Capitol Hill that a breakthrough could be pending, but behind the scenes, talks continued, focusing on a possibly higher threshold of $400,000. Senator Max Baucus of Montana, chairman of the Senate Finance Committee, said sentiment is “jelling” around a new offer, and a source familiar with the negotiations said the president would ask Republican and Democratic leaders what proposal could win majority support in the House and Senate.

The source said that the president would use the opportunity to make the case for a proposal that he believed could pass both the House and Senate, one that included extending lower tax rates for household income of $250,000 or less and an extension of unemployment insurance for two million Americans who are about to lose their benefits. The official said that the president intended to ask the Congressional leaders for a counterproposal or to allow an up-or-down vote on his outlined plan.

The plan was in its early stages and far from being accepted. But Congressional officials say staff-level talks between the White House and the Senate Republican leader centered around a deal that would extend all the expiring Bush income tax cuts up to $400,000 in income.

Some spending cuts would pay for a provision putting off a sudden cut in payments to medical providers treating Medicare patients. The deal would also prevent an expansion of the alternative minimum tax to keep it from hitting more of the middle class. It would extend a raft of already expired business tax cuts, like the research and development credit, and would renew tax cuts for the working poor and the middle class included in the 2009 stimulus law. The estate tax would stay at current levels.

It would not stop automatic spending cuts from hitting military and domestic programs beginning on Wednesday, nor would it raise the statutory borrowing limit, which will be reached on Monday. Congressional aides said those issues would be dealt with early next year in yet another showdown.

White House officials denied that any such offer was developing and said that the president was sticking with his insistence that household income only up to $250,000 would be protected from tax increases.

While neither side was confident of any agreement, some top lawmakers said there was still a chance of a breakthrough that could at least avoid the most far-reaching economic effects. “I am hopeful that there will be a deal that avoids the worst parts of the fiscal cliff; namely, taxes’ going up on middle-class people,” Senator Charles E. Schumer, the No. 3 Senate Democrat, said Friday on the “Today” show on NBC. “I think there can be. And I think the odds are better than people think that they could be.”

Democrats from high-tax, high-wealth states have pressed the White House and their leaders to accept a threshold higher than the president’s $250,000, but they appear ready to accept anything that can pass.

“I have a very practical standard to apply: whatever threshold we need to avoid the fiscal cliff,” said Senator Joseph I. Lieberman, a Democrat-turned-independent from Connecticut.

Much of the legislative attention was focused on Mr. McConnell as Democrats pushed him to provide assurances that Republicans would not use procedural tactics to block any measure that the Senate might consider. House Republican leaders have already said they would be willing to consider whatever legislation the Senate could pass when the House convenes beginning Sunday afternoon. If Republicans chose to erect hurdles to any legislation, Congress might not have sufficient time to advance a measure before the deadline on Tuesday.

Mr. McConnell was well aware of the Democratic efforts to put the onus on him. “Make no mistake: the only reason Democrats have been trying to deflect attention onto me and my colleagues over the past few weeks is that they don’t have a plan of their own that could get bipartisan support,” he said on Thursday.

But he also said he was willing to review any proposal that would come from the White House and then “we’ll decide how best to proceed.”

“Hopefully there is still time for an agreement of some kind that saves the taxpayers from a wholly preventable economic crisis,” he added.

As it awaited a proposal on tax and spending issues, the Senate did make some progress on other legislation, sending the president a renewal of antiterrorism surveillance laws and advancing some relief for states and communities hit by Hurricane Sandy this year.

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