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Why Are We So Obsessed With Sales?

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Why Are We So Obsessed With Sales?

This past weekend nearly 150 million Americans braved Black Friday — literally a deadly holiday — spending at least $57 billion dollars in pursuit of the sale. And yet evidence suggests that the idea of a sale price is largely artificial. So why do we have such a Pavlovian response whenever the word "doorbuster" is used?

Last week the Wall Street Journal published a story on the "Dirty Secret of Black Friday 'Discounts'," pointing out that although the number of deals offered by 31 major retailers increased by 63% between 2009 and 2012, their profit margins all stayed roughly the same.

The reason that holding so many sales hasn't bankrupted all these companies is because, as the Journal puts it, they're illusions. Retailers' margins have stayed the same because the average list price — the price the item is eventually discounted from — has skyrocketed.

It's almost all mental. Retailers are required to sell their products at the list price, but according to the Journal, those prices are quickly discounted. And very few people ever actually pay that list price — former JC Penney CEO Ron Johnson said in 2012 that the department store sold less than one in 500 items at full price.

The Journal provides a great example with a television listed on Amazon.

Amazon.com is featuring a Samsung 60-inch HDTV in its 2013 Holiday Gift Guide. The TV is selling at a 45% discount to its list price of $1,799.99. But, according to Decide.com, a price-tracking firm owned by eBay Inc., the TV hasn't sold for anywhere near the list price in months. The most it has sold for in the past eight months is $1,297.85, according to Decide.com. As recently as October, it was priced at $997.99, about the same as its current sale price.

Over at the Atlantic, Alexis Madrigal writes about a Black Friday deal at Macy's for a $334 blender discounted to $200.99. Madrigal searched for the blender with other retailers and found it selling for below $200. Then he found Macy's pricing policy.

"'Regular' and 'Original' prices are offering prices that may not have resulted in actual sales, and some 'Original' prices may not have been in effect during the past 180 days."

But it's an illusion we don't want to let get of. Retailers have no choice. We won't let them. When Macy's tried to cut down on coupons in 2007, customers stopped shopping there.

Johnson was the CEO of JC Penney when he decided to just list items at the prices they were actually selling for. That's how he became the former CEO. Shoppers wanted no part of it.

So why aren't we looking at the prices instead of the fake discounted percentages? Why do we need so badly to be lied to? And why are we participating in this, forcing low income employees to give up Thanksgiving dinners and risk their lives for minimum wage for pretty much nothing?

[image via Getty]


This Is What It's Like to Be Snatched Up By a Sea Eagle

Witnesses Say Alabama Fan Shot and Killed Someone Over the Team's Loss

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Witnesses Say Alabama Fan Shot and Killed Someone Over the Team's Loss

An Alabama woman has been charged with murdering a fellow fan because she "didn't seem upset over the Crimson Tide's loss to archrival Auburn," according to the victim's sister.

Police say the the alleged shooter, Adrian Briskey (pictured above), and the victim, Michelle Shepherd, were watching the game at the same party when Auburn returned off of Alabama's missed field goal to win the game — a loss that will likely knock Alabama out of the BCS championship hunt.

At some point, Shepherd and her sisters started joking about the outcome, saying that it wasn't as bad as when the Miami Heat lost.

"I was saying I wasn't even mad (about the loss). Like when The Heat lost in game four, I was sick to my stomach,'' Shepherd's sister, Neketa, told AL.com. "She started cursing. Her friends said she always did that when she got drunk and they took her outside."

The fight apparently spilled out from inside a Birmingham apartment building out into the complex's parking lot.

According to Neketa, the sisters got in their car and attempted to leave, but were concerned about hitting other partygoers. When Michelle got out of the car to ask them to move, things escalated.

According to police, the fight got physical and Briskey and Shepherd ended up on the ground, where Briskey shot Shepherd at close range with a "small caliber handgun."

"She said we weren't real Alabama fans because it didn't bother us that they lost. And then she started shooting," Neketa told the AP.

[image via AP]

President Obama announced a $100 million dollar HIV research initiative earlier today at the Nationa

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President Obama announced a $100 million dollar HIV research initiative earlier today at the National Institutes of Health, saying, "The United States should be at the forefront of new discoveries into how to put HIV into long-term remission without requiring lifelong therapies, or better yet, eliminate it completely."

Christopher Walken Couldn't Catch a Cab So He Hitched a Ride With Fans

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Christopher Walken Couldn't Catch a Cab So He Hitched a Ride With Fans

All-around smooth operator Christopher Walken casually hitched a ride with two strangers in New York last month and was apparently a perfect gentleman.

Two Redditors were driving on the Upper West Side when they spotted the actor trying to catch a cab. They pulled over, backed up down Amsterdam avenue, told Walken they were huge fans and offered him a ride.

Walken was apparently not weirded out at all, and told the friends that he was going downtown but would get out anywhere because he didn't want them to go out of their way.

It would appear they hit it off; when they got to Walken's destination, he stuck around to chat with them a while longer.

[zendouble via Reddit]

Miley Cyrus: gateway drug.

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Miley Cyrus: gateway drug. Back in the day, the latex salvia queen peer pressured Joe Jonas of the vaunted Brothers Jonas into trying marijuana, according to frère Joe's new semi-revealing (if weird Disney childhoods are your thing) New York Magazine essay.

[Thai police have stopped resisting protestors, removing fortifications blocking the gates of the pr

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[Thai police have stopped resisting protestors, removing fortifications blocking the gates of the prime minister's office. According to the AP, the protestors have not attempted to enter the building. The clash began three days ago, leaving at least three dead and 230 injured. Image by Sakchai Lalit via AP.]

Watch Out For the Biters at Oktoberfest

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Watch Out For the Biters at Oktoberfest

A very drunk man who got in a very drunk brawl at Oktoberfest had to have his lip sewn back on after a very drunk woman bit it off.

The man, dressed in Lederhosen, apparently tried to shove something in a 30-year-old Alaskan woman's mouth. She then got up and punched him, he grabbed her arms, and she bit his lip for at least 15 seconds, when the footage cuts off.

The woman, wearing devil horns, was arrested for criminal assault. According to Metro, the man had emergency surgery to reattach his lip.

[image via LiveLeak]


The Obamacare webfail brouhaha has mostly subsided, but it will forever spell disaster for liberalis

Airbnb's New Office Has a Replica of the Dr. Strangelove War Room

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Airbnb's New Office Has a Replica of the Dr. Strangelove War Room

There are many ways for a startup to burn through $326 million in venture capital. You could hire lobbyists, grease political levers, launch a 24/7 hotline for complaints from the disrupted, and even build a conference room for software developers modeled after the War Room in Dr. Strangelove. Airbnb opted for ALL OF THE ABOVE.

San Francisco magazine says the room, which has its own Foursquare listing, is all part of the "arms race" for inspirational office space so you will never (ever ever) stop working. How I Learned to Stop Worrying and Love the Bubble—just don't forget how this movie ends.

The cinematic homage isn't the only affect in Airbnb's new offices at 888 Brannan Street in Soma. It also features a Skee-Ball machine. An infantilizing extravagance? Hardly, says Metropolis magazine. It's a riff off an early listing that tried to sell a Skee-Ball machine as sleeping quarters, making Airbnb new workplace "game section" muy authentico.

There's even a replica of "the living room of the founders' original Rausch Street apartment, faithfully copied down to the lucky red velvet Jesus statue," in case you were wondering whether Airbnb's cofounders gave themselves enough credit.

The architects behind this wallpaper war sound every bit as self-aggrandizing as their clients, by San Francisco magazine's account:

"There were times when we were challenged as architects to push the limits more than other clients would ask us to," says Lisa Bottom, a principal at Gensler, the global design firm behind the Airbnb and Facebook offices. "But our job was to be an enabler of their company's culture."

After all, when work-is-life-is-work, getting compensated for your labor is a secondary concern:

"It's not enough to give employees a big paycheck and a Ping-Pong table anymore. You can only throw so much money at people," says David Galullo, chief executive officer of the branding and design firm Rapt Studio.

The architects brush off the memory of abandoned ping pong tables and Aeron chairs rolling down the hills of San Francisco:

"A lot of gimmicky design—silly furniture for silly furniture's sake—came out of the last dot-com boom," says Collin Burry, design director at Gensler. "That world is kind of trite now; that irrational exuberance is tired."

All that effort put into Airbnb's headquarters and no one installed a mirror.

To contact the author of this post, please email nitasha@gawker.com.

[Image via Metropolis magazine]

[Chaos, a chimpanzee, looks through the glass at visitors during his public debut in the Onstead Fou

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[Chaos, a chimpanzee, looks through the glass at visitors during his public debut in the Onstead Foundation Chimpanzee Habitat at the Houston Zoo. Photo by David J. Phillip via AP]

"I was left with an inescapable conclusion: Jews don't hunt."

Guardian Staff Could Face Terrorism Charges for Edward Snowden Leaks

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Guardian Staff Could Face Terrorism Charges for Edward Snowden Leaks

On Tuesday, Scotland Yard's head of counter-terrorism told Parliament that the news staff of the Guardian could be investigated on terrorism charges for publishing several articles based on classified documents leaked by Edward Snowden.

During her testimony, Assistant Commissioner Cressida Dick told lawmakers that Scotland Yard was investigating to see if any laws were broken by the newspaper for publishing—and transporting—the classified files, which allegedly include details about British spies that could put their lives at risk.

From the Guardian:

"We are continuing with that inquiry. We are taking that carefully. There is a lot of difficult material to find our way into. We will go where the evidence takes us. We will be proportionate and careful about every step we take," [Dick] said.

"It appears possible that some people may have committed offenses. We need to establish whether they have or haven't. That involves scoping a huge amount of material."

British authorities confiscated the material from David Miranda earlier this year as Miranda travelled through London on his way to Rio de Janeiro from Berlin. Miranda is the partner of former Guardian writer Glenn Greenwald, who was the first journalist to publish from Snowden's documents.

Earlier in the day, British lawmakers accused Guardian editor in chief Alan Rusbridger of breaking the law under Section 58A of the Terrorism Act, which states that it's illegal to publish or communicate information that puts a member of the armed forces or intelligence service at risk.

"It isn't only about what you've published, it's about what you've communicated. That is what amounts, or can amount, to a criminal offense," Commons home affairs select committee member Michael Ellis told Rusbridger.

Rusbridger defended his paper's actions. "We have published I think 26 documents so far out of the 58,000 we've seen, or 58,000 plus. So we have made very selective judgements about what to print. We have published no names and we have lost control of no names," he said.

"We were told that 850,000 people ... had access to the information that a 29-year-old in Hawaii who wasn't even employed by the American government had access," he added.

[Photo of Guardian editor Alan Rusbridger via Getty]

The Secret Misspelled Comeback Plan of America's Creepiest Lobbyists

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The Secret Misspelled Comeback Plan of America's Creepiest Lobbyists

The American Legislative Exchange Council, beloved play-toy of conservative financiers like the Koch brothers and purveyor of controversial gun-rights legislation, is scurrying to woo back lost members and cover financial shortfalls, internal documents show.

A 53-page summary of ALEC's August board meeting, obtained by the Guardian, shows the group has bled members ever since its role in the nationwide development of so-called Stand Your Ground laws came in for public scrutiny after the killing of Florida teen Trayvon Martin by George Zimmerman.

"[T]he State of Florida vs. George Zimmerman verdict presented an opportunity for opposition groups to cast ALEC in a negative light," the group's document concedes. Many blue-chip companies made a public show of withdrawing from the group under popular pressure after the Stand Your Ground controversy. ALEC's records show that its membership declined significantly in each of the last two years, and that its 2013 revenues were already $1.4 million shy of projections, a 35 percent shortfall, just halfway through the year.

To stanch the bleeding, ALEC proposed several responses:

  • First, it established a "Prodigal Son Project" (misspelled as "Prodical" in the document) to try to re-enroll big-ticket members who dropped out of the group, including Coca-Cola, Pepsi, McDonald's, Kraft, Amazon, Wal-Mart, and Best Buy.
  • ALEC's board also voted to create "a new revenue source" called "the Jeffersonian Project," a 501( c )(4) super PAC that would enable the council to throw more money into political advocacy without endangering the parent group's overall non-profit status. "ALEC has been approached by donors who are willing to make sizable donations, but insist that the donations go to a section 501©(4) organization," the document read, before pointing out that "our left-wing opponents"—like the Sierra Club—"use 501( c )(4)'s."
  • The group also identified 102 "prospects," new companies and lobby groups it hoped to tap for membership money, from Allstate to the American Association of Community Colleges.

The Guardian highlighted some other startling points in ALEC's document, including a new requirement that state chairs for the group pledge to "put the organization first," which could put those legislators at odds with their constituents.

Other revelations:

ALEC was looking into covering several new policy areas to attract members, including gambling and financial services—though the document conceded that many Wall Street giants had "failed to renew at ALEC due to controversy."

The group also considered working on Indian affairs, but sounded lukewarm about the idea: "There may be little to no private sector funding for this issue. In addition there has been scandal in the past with individuals like Jack Abramoff who lobbied on behalf of Indian Tribes."

In addition, the document aired a good deal of its former members' ALEC-related dirty laundry: The Solar Industries Association "left because their bill did not pass the task force"; The Pioneer Institute was "kicked out of ALEC" because of an education disagreement; Blue Cross Blue Shield and UnitedHealth "left after losing on exchanges" in Obamacare-related lobbying efforts; and the Doctor-Patient Medical Association was non responsive and had a "history of being late on payments."

[AP image: President Bush steps up to speak at the American Legislative Exchange Council, July 26, 2007, in Philadelphia.]

Shady Marketing Firms Are Still Quietly Bribing Bloggers

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Shady Marketing Firms Are Still Quietly Bribing Bloggers

In 2011, I was approached by a shady online marketing firm that offered to pay me to quietly insert links to their clients' websites in Gawker posts. We imagined that exposing the practice might end it. Not at all! It's happened again.

To briefly reiterate the problematic aspects of the practice: these firms are hired by clients to enhance their Google results and overall SEO. The firms then offer to, essentially, bribe writers at various websites to place links to their clients in editorial content, because Google looks kindly on such links when calculating search rankings. The writers get paid; the links go in quietly; the cash is slipped into Paypal accounts; the news organizations are never informed. It's stealth marketing, and it's designed to deceive both the employer and the reader. It's an unethical scam.

On November 8, I received this unsolicited email (all bolding is ours):

Dear Hamilton,

I would like to compliment you on your great articles that you write! I was wondering if you would be interested in a cooperation. We have many clients that would be interested in having their brand and link mentioned in the article and would be willing to pay a nice price for it ( no promotional articles of any kind just informational ). If this is something that would interest you, then let us know.

Kind regards,

Rock

Backlinks.us

Rock's firm, Backlinks.us, touts itself as "an ever expanding SEO company that has been doing search engine optimization for private clients for over 4 years," and offers packages ranging from $119 a month for the "Beginner" link package to well over $1,000 a month for the "Ultimate" SEO enhancement. I replied, "Who are your clients and what is the arrangement?"

Hi Hamilton,

thank you very much for a quick response. The arrangement would be that we give you a keyword and URL and then you write an article that is relevant to that keyword and embed the link inside the article with the keyword we give you. Like I said, we are not looking for promotional posts, but for high quality informative posts that have a link back to our specified site. You can also link out to sites like Wikipedia and similar to make the article the best it can be. Would that be of interest to you and if so how much would you charge per such an article?

Kind regards, Rock.

I replied, "Who are the clients we would be linking to?"

We have quite a few, but for example, one link would be this: [Link] and the keyword would be: garcinia cambogia. But we can check each client with you if you wish and you can say yes or no to them.. We have that same arrangement with a few other big sites and with them being in control of what get's posted and what not, they feel more comfortable with it. In any case, we would never send you any illegal, porn or anything that you are not comfortable with.. let me know.

Rock

"I think I'd have to run it by my boss," I replied. "Can you send me some examples of how it looks on the other big sites you refer to?"

We are looking to establish relationships with authors directly. Sure, run it by your boss, but he will most probably said you can't do it because the company will want a piece of the pie. That is why we are looking for direct relationships to authors. : In any case, let us know if you decide to want to work with us. We would be happy to have you in our team and you would probably also happy with earnings some more money each month by doing what you are doing.

Regards, Rock.

I asked again for some examples of where it had been done. Rock sent me this link to a contributor's post on AllVoices.com. I asked for more, and he sent me three: This post on Yahoo's "Voices" network by Karine Heyden, a "professional writer/blogger with many happy clients"; this post on Blogcritics.org by "world traveled analyst" Henry Buell; and this news story on Examiner.com by "book marketing specialist" Tamica Bonner.

I asked Rock if there were any examples on larger sites.

Hey Hamilton - thanks for responding. Yes, we are doing this on HuffingtonPost, ChicagoTribune, UTSanDiego and other such big news sites so the Gawker wouldn't be any different... The compensation would be $50-$80 per post that you write. How does that sound?

Still, I wavered. He followed up with this:

Hi Hamilton,

Here are 2 HuffingtonPost.com posts that were made for us. The first one is: [Link], here the keyword of our client is freelance writer (which links to our clients site) and the second one is this one: [Link] here the keyword that is linked to our client's site is UppSite.

In both examples you can see that the posts are non promotional but actually very informative to the readers of the website and the links to our clients fit very well into the context of the article. This is what we are looking for and not for spammy promotional articles with a ton of links back to our clients. We know that such spammy article could also harm your position with the website and we don't want that at all. We are looking for long term relationships with excellent writers. We want you be happy and us to be happy..

As for the payment - you are right for smaller sites we pay a bit less $30-$60 and larger a bit more $50-$80. How much per post would be good for you?
Regards, Rok.

(I couldn't help but notice that the market value of my bribes had declined by more than half since 2011. Damn.) I tried to drag even more examples out of Rock, but he had hit a wall.

Hi Hamilton,

well I don't know what to show you any more.. I have shown you examples on sites bigger than the Gawker and those work great with us. As for the payment, to see that we are serious, we can send you the payment for the first post before you even post it. After that we will send you your payment in the next 24 hours after you send us our live link. We pay through Paypal.com. No contract needed unless you want one. So let me know if you want to proceed and give me your Paypal address so that we send you the payment and if not, also tell me so that we can continue with our search for someone to work with on the Gawker.

Regards, Rock.

Considering the fact that most of the examples that Rock sent to me are links inserted in stories that are contributed to sites with extremely low editorial standards, this does not constitute the greatest scandal in journalism history. But everyone should be aware of the fact that the shady and undercover practice of inserting paid links into purportedly "editorial" copy appears to be rampant. Readers (and employers) beware.

You'll never bribe anyone good for $80, Rock.

[Image by Jim Cooke]


Is alcohol-loving, cocaine-buying Congressman Trey Radel (R-Fla.) using taxpayer-funded federal heal

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

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Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

When a popular nightclub learned it had been the victim of a brazen theft, it didn't get mad — it offered the thieves a cash prize in exchange for sneaking the stolen items back in.

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

It all started when two patrons of the he Carbon Nightclub in Galway, Ireland, managed to make off with the establishment's welcome mat during business hours with security being none-the-wiser.

The lads posted a Facebook photo of themselves with the mat, prompting the stunned Carbon management to issue the following challenge:

After much discussion, we have [decided] this horrible debacle must come to an end. These two jokers managed to sneak this mat out past security but if they can sneak it back in, we'll give them a €100 [~$135] bar tab and a free limo and vip entry for their friends. BUT if they care caught bringing back in, BARRED for 2 months...So ye feeling lucky punks????..do it!!

The challenge prompted one of the thieves to hit back at the club with a challenge of own: "I see your mat...how much for the rest? 4 posters and a drip mat... #its on #doubleornothing"

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

Soon enough, others started getting in on the fun, taunting the nightclub by posting photos their own Carbon souvenirs:

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

"We're delighted people are seeing it in the humour it was meant," the nightclub's marketing manager Jonathan Bryne told Independent.ie. "Galway is a vibrant student town and they're all studying and doing exams at the moment, so it was just a fun thing we came up with to draw attention to ourselves."

Unfortunately, it seems the mat bandits won't be returning to Carbon, stealthily or otherwise, for at least a couple of weeks as they too are focusing on their education for the moment, but Bryne says they're welcome to bring back the welcome mat anytime.

Nightclub Offers Thieves Prize If They Sneak Back In With Stolen Stuff

[H/T: Reddit, photos via Facebook]

Philly Is Suing Scientology Over Its Vacant "Cathedral of the Future"

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Philly Is Suing Scientology Over Its Vacant "Cathedral of the Future"

The Church of Scientology has reportedly spent roughly half a billion dollars buying up buildings in U.S. cities over the past few years—but, in many cases, these huge buildings have remained vacant. Now, the city of Philadelphia is taking the church to court over an empty tower.

Using $7.85 million in donations, the church bought the 15-story Cunningham Piano building in downtown Philly back in 2007. The idea was to renovate the tower into a "cathedral" called the Philadelphia Freedom Org, which would broadcast L. Ron's message to the good people of greater Philly. Instead, the building has sat untouched for six years.

Philly Is Suing Scientology Over Its Vacant "Cathedral of the Future"

Image: Tim McFarlane

Now, the city's Department of Licenses & Inspections is taking the church to "blight court," a special municipal court that deals with violations like an ordinance that outlaws any building from boarding up multiple doors and windows (the church's tower has several).

According to Philly.com, the violation can result in a $300/day fine—which is chump change in light of the church's supposedly vast fortunes.

Philly Is Suing Scientology Over Its Vacant "Cathedral of the Future"

Image via Google.

But the Cunningham Piano building is far from the church's only major real estate holding that has been left abandoned in recent years. According to a New York Times story from 2010, increasing its property holdings is part of the church's strategy of projecting major growth—despite the fact that its numbers are reportedly dwindling. Scientologists call these structures "ideal orgs," or prominent urban buildings that bring attention to the church's mission. They are purchased with donations aggressively wrung from members, and they are often left empty for years pending more cash to complete interior renovations.

"If you find just the right building, you're going to snap it up if you can, even if you're not ready to start construction right away," a Scientology spokesperson told the NYT by way of explanation, while professor and Church of Scientology author Hugh B. Urban gave another explanation, saying it "could be a marketing strategy to give the appearance that Scientology is in a period of massive growth, which would in turn attract people. That's the kind of thing they've done, historically."

Philly Is Suing Scientology Over Its Vacant "Cathedral of the Future"

The new Scientology Flag Building in Clearwater, Florida. Construction began in 1999 and cost more than $40 million. Photo: Tim Boyles/Getty Images.

A January, 2013 BuzzFeed expose about dissent within the church reveals even more about its real estate "boom"—including the fact that keeping these buildings closed is a way for the central church to wring more cash from local members:

According to ex-executives, the Ideal Org money play is simple: Find beautiful buildings; get local parishioners to foot the bill; keep them closed; keep fundraising; open them; and finally, have the parishioners pay for renovations, buy supplies, and send money to the central church for the right to practice there.

The church purchased a massive historical landmark—the 50,800-square foot Braley Building—in Pasadena in 2006. The building sat empty until 2010, when renovations began (it's now open). Likewise, the church's most important building, known as the Super Power Building, opened in 2011 after 12 years and $40 million worth of interior renovations. The pattern seems to be simple: Ask for donations to buy the building, then wait for even more donations to finish renovations.

So the fact that the church is being sued for contributing to urban blight in Philly doesn't mean that they won't eventually open the building. Rather, it seems to indicate that the church is keeping it closed until local followers contribute enough cash to fund a major renovation. Paradoxically, this new volley of press is likely to help. [Philly.com]

Here's an Amazing Mashup of Every Movie Trailer from 2013

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The year isn't over yet, but it might as well end with today's release of The Sleepy Skunk's annual Movie Trailer Mashup.

Every movie trailer from the past year sliced and diced into one incredible promo for the greatest film never made.

Its creator promises a full list of clips is forthcoming, but that's not nearly as fun as showing off your movie-watching prowess by naming each one yourself.

If you're feeling nostalgic, check out The Sleepy Skunk's past masterpieces: 2012, 2011, 2010.

[H/T: Devour]

"Girl, I promise this will be painless, painless/ We'll take a trip to planet Uranus": Slate's catal

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