Rio Police Invade Gang Haven

Rio police backed by helicopters and armored vehicles invaded a shantytown complex long held by traffickers on Sunday, quickly taking over the key drug gang stronghold, a top official said.

Black-clad officers from elite police units entered the Alemao slum complex amid heavy fire, with TV images showing police and army helicopters flying low to support the men on the ground as hundreds of drug gang members tried to hold their position.

But the officers encountered less resistance than expected and claimed victory, saying police were controlling the shantytown complex although many gang members still remained inside.

"We won," said Mario Sergio Duarte, head of Rio state's military police. "We brought freedom to the residents of Alemao."

Officers on the ground, however, were saying they had not completely taken over the complex, and that gunmen were still fighting back. Gunfire could still be heard in the area.

"Without any doubt we know there are gang members hold up inside this slum still and we've got to go in and take them out," said one solider at the base of the slum who did not want to give his name because he was not authorized to speak to the media.

"Now it's time to be patient," Duarte said. "We've taken over the territory but it doesn't mean that we won't have confrontations with the gang members still inside. We have to be careful because they may be trying to set up traps for our men."

At least five police helicopters were buzzing atop the Alemao, helping provide intelligence on where the gang members might be.

Police and troops started moving up the slum inside armored vehicles as residents watched from their windows in shacks packed along steep hills. Massive tracked armored personnel carriers were moving in and out of the slum entrances on its southern edge, carrying soldiers with their faces painted.

High-caliber rifle casings littered the streets for three blocks around the slum, and bloodied bandages were scattered on the ground near entrances where soldiers and police crouched behind buildings aiming their rifles toward the slum.

Vehicles from the forestry service were seen moving around the shantytown complex, carrying soldiers to the jungle areas inside the slum to cut back trees and eliminate possible escape routes.

There were no initial reports of police officers injured on Sunday.

Duarte said large amounts of weapons, ammunition and drugs were seized in the operation, which came after a week of widespread violence in Rio, with more than 100 cars and buses set on fire and at least 35 deaths, mostly of suspected traffickers.

Hundreds of soldiers on armored vehicles were in place to support the operation, seen as a key move in a long-standing campaign to push criminals out of slums where they have long ruled with impunity.

Duarte said officers will enter each shack to try to find hidden gang members and to seize weapons and ammunition.

"We won't leave a place unchecked," he said. "We suspect that are a lot of people who are still trying to flee."

Authorities were asking residents to remain inside their homes and to cooperate with police. Many were thrilled with the police operation.

"Fantastic, this is exactly the thing we needed," said Ana Costa, a 48-year-old woman who lives a block from the slum in the Penha neighborhood, which is house to about 400,000 people.

"This community has been so violent for so long that I never thought that I would see this day," she said as at least three armored vehicles drove rapidly by her house. "I still have my doubts but I'm praying that peace has finally come here."

Hundreds of soldiers in camouflage and elite and regular police had been surrounding the Alemao since Saturday night, sheltering behind the armored vehicles. They had exchanged intermittent, heavy gunfire with gang members at many of the 44 entrances to the slum.

More than 1,000 police and soldiers had been prepared to storm the shantytown complex as about 600 armed gang members remained trapped inside. Authorities had been saying the invasion was inevitable if the gang members did not give themselves up.

"The gang members decided not to surrender," police spokesman Henrique Lima Castro Saraiva said Sunday, adding they "would not stand a chance" against the security forces.

The invasion came after Rio saw its calmest night in a week, with only one volley of gunfire heard overnight in the slum. Police said there was gunfire around 1 a.m., but after that mostly silence.

In the rest of the city, for the first time in more than a week there were no vehicles burned — what had become a hallmark sign of the gang's bloody protest against a tough policing program.

In a week of widespread violence blamed on the gangs, authorities had already seized the Vila Cruzeiro slum, which was once thought virtually impenetrable. More than 200 armed gang members fled that offensive and ran to the nearby Alemao complex of a dozen slums that are home to at least 85,000 people, followed by security forces on Friday.

Saraiva had said the deadline for the gang members to surrender was "when the sun sets" on Saturday. He said the gang members were "exhausted, hungry, thirsty, stressed out" and had not been able to bring in more ammunition.

Rio de Janeiro's governor, Sergio Cabral, has vowed repeatedly to break the back of drug gangs that have ruled hundreds of shantytowns in the city of 6 million people.

The human rights organization Amnesty International complained that police had been too heavy-handed in their offensive, but many Rio residents seemed to welcome the aggressive stance. People applauded as armored vehicles rolled by and voiced hope that a new push would reclaim areas of their city that had been lawless for years.

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Associated Press writers Juliana Barbassa in Rio de Janeiro and Tales Azzoni in Sao Paulo contributed to this report.

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Health care law opt out bill pushed

A leading advocate of states' ability to opt out of federal health care mandates told CNN's "Parker Spitzer" show on Tuesday that a recent bill he co-authored would foster bipartisanship and "encourage innovation [in health-care] right out of the gate."

Democrat Senator Ron Wyden joined Republican Scott Brown in introducing the "Empower States to Innovate Act" last week. It would alter the current health bill to allow states to opt-out of federal mandates by 2014 if they are able to satisfy the level of services and coverage provided under existing federal law.

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Give thanks for America's common sense

This holiday, I'm thankful for the common sense of the American people.

Like any other group of 300 million individuals, many of them have character flaws, harbor prejudices and make their share of mistakes. But, in most cases, they're enterprising, optimistic, resilient and generous. And while they try to be fair and reasonable, many also know where to draw the line.

They want to support teachers and give public schools the tools they need to succeed, even if it means passing new bond measures. But when they feel that teachers' unions are holding up necessary reforms to serve their own interests, they will rise up.

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Week In News: Korean Tension, Terror Threats

This week North Korea fired artillery shells at a South Korean island, setting off a diplomatic crisis. James Fallows, national correspondent for The Atlantic, joins guest host Audie Cornish to talk about how China's role in North Korea will complicate the diplomatic picture. They also talk about this week's decision by the Department of Homeland Security to do away with color-coded terror threats.

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Black Friday Shoppers Eat Up Holiday Deals

For one day at least, you could almost imagine the recession never happened. Millions of the nation's shoppers braved rain and cold to crowd stores while others grabbed online bargains on what could be the busiest Black Friday ever.

Early signs pointed to bigger crowds at many stores including Best Buy, Sears, Macy's and Toys R Us, some of which had earlier openings than past years or even round-the-clock hours. Minnesota's Mall of America and mall operators Taubman Centers Inc. and Macerich Co. also reported more customers than last year.

But the most encouraging sign for retailing and for the economy was what Americans were throwing in their carts. Shoppers still clutched lists and the buying frenzy was focused on the deals on TVs and toys, but many were treating themselves while they bought gifts for others, adding items like boots, sumptuous sweaters, jewelry and even dresses for special occasions.

Elayne Breton and her daughter Michelle got to Maryland's Mall in Columbia around 7 a.m. A few hours later, Michelle had picked out several presents for herself, including a pair of UGG boots, perfume and an iPod Touch. At Nordstrom, she scored a long-sleeved purple shirt that her mother let her wear out of the store.

"Last year we were careful," said Elayne, whose husband's beer distribution business has started to pick up again. "This year we'll do more."

The strong Black Friday builds on retailers' momentum after a solid start to November. Shoppers who can afford it are buying more nonessentials, like jewelry and luxury goods.

"Last year, consumers were extremely into the basics, the socks, the pillows," said Keith Jelinek, director of the global retail practice at consulting firm AlixPartners. "This year, they're hungry to dress up their wardrobes, their homes. Shoppers were buying items with a little more pizazz, trendier sweaters, sheets in higher thread counts."

He cautioned that they're not looking to replace everything — just looking for a few special items. "They're still very value-conscious," he added.

Macy's CEO Terry Lundgren said there were 7,000 people outside its Manhattan flagship store for its 4 a.m. opening, up from 5,000 people a year ago.

"The difference between this year and last year was that last year, people had a budget and a list. They're doing the same thing this year but they're also buying for themselves," he said. Among some of the hot sellers were a luggage set for $49.99 and $39.99 cashmere sweaters.

He noted that two groups that helped fuel customer traffic were young shoppers, ages 15 to 25, and men, both of whom were buying for themselves.

Sharply reduced prices on flat-screen TVs helped fuel many stores' sales, according to Marshal Cohen, market research analyst at NPD Group Inc. Stores were grappling with a glut of TVs heading into the season because they had overestimated consumer demand.

Research firm ShopperTrak is expected to release Black Friday data on Saturday, but a full picture of how retailers fared for the overall weekend won't be known until Thursday when major retailers report their monthly sales results.

For the economy, the question remains: Will shoppers keep it up?

Nearly 15 million people remain unemployed, and concerns about job security cloud consumer confidence. Spending is picking up but has not returned to pre-recession levels. And shoppers haven't let go of many cautious habits learned from the Great Recession.

Many purchased with cash, and layaway remained popular as shoppers try to budget. Sears reported that consumers were setting aside items like Nordic treadmills that were on sale for $399, a savings of $400, to be delivered after the holidays.

Credit cards were staying inside many wallets.

"Now that I'm debt-free, I want to keep it that way," said Desiree Banks, who was at Best Buy in Macedonia, Ohio, with a stack of DVDS for $3.99 each.

Shoppers did their homework, researching deals on websites. Stores made planning easier by touting their bargains last week.

"Every year, we get more refined," said Deb Brown, 42, who was at the Bellevue Square Mall in Bellevue, Wash. She came from White Rock, British Columbia.

Many teens bucked the bargain-hunting trend, shopping full force — and paying full price — at high-end stores like Hollister and American Eagle Outfitters, according to mall officials. That suggests that parents, feeling more financially secure, are giving their children extra spending money, said Jharonne Martis, director of consumer research at Thomson Research.

A big worry is that some of the solid buying earlier in November could steal thunder from the rest of the season and leave a deeper lull between Thanksgiving weekend and the few days before Christmas.

Clearly, stores worked hard to draw shoppers in for Black Friday and earlier, with more deals and expanded hours that allowed people to get shopping soon after their Thanksgiving dinner.

A number of stores including Old Navy, Toys R Us and Sears opened on Thanksgiving Day. Toys R Us was counting on getting an extra boost by opening 24 hours straight, starting at 10 p.m. on Thanksgiving. Many stores had trotted out the "Black Friday" label on sales as far back as October.

Best Buy Co. started its holiday TV ads 11 days earlier this year than last year. CEO Brian Dunn said customer counts were showing high-single-digit percentage increases Friday morning compared to last year. He said shoppers were throwing in items like Blu-ray players to go with early morning bargains that started at 5 a.m.

"Traffic was fast and furious. ... We started earlier and we have more TV (commercials). I think both of these things helped," Dunn said in an interview with The Associated Press.

Wal-Mart, which had most stores open around the clock, reported the top five selling electronic items included an Emerson 32-inch LCD HDTV for $198. Hot toys included $10 Barbies and $4 Zhu Zhu pets, which were last year's hot hit.

Thanksgiving weekend is huge for retailers. In recent years, Black Friday — called that because the surge of shoppers could take retailers into profitability, or "the black," for the year — has been the busiest shopping day of the year, according to data from ShopperTrak.

Black Friday is generally not as big for online retailers as Monday after Thanksgiving — known as Cyber Monday — but many were already off to a good start. By mid-afternoon Friday, eBags sales soared 69.5 percent compared with a year ago.

The retail blitz doesn't make or break the holiday season. In fact, shoppers seem to be procrastinating more every year, giving retailers some nail-biting moments waiting for sales the last few days before Christmas.

Last year, the Thanksgiving shopping weekend accounted for 12.3 percent of overall holiday revenue, according to ShopperTrak. Black Friday made up about half of that.

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AP Business Writers Mae Anderson in New York; Emily Fredrix in Cleveland; Ashley Heher in Chicago; Sarah Skidmore in Portland, Ore.; Jessica Mintz in Bellevue, Wash., and Ellen Gibson in Columbia, Md.; contributed to this report.

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