Sandusky defense rests on 3rd day in abuse case

Former Penn State University assistant football coach Jerry Sandusky leaves the Centre County Courthouse in Bellefonte, Pa., Wednesday, June 20, 2012. The defense rested Wednesday without calling Sandusky to the stand. Closing arguments are set for Thursday morning. Sandusky is charged with 51 counts of child sexual abuse involving 10 boys over a period of 15 years. (AP Photo/Gene J. Puskar)

Former Penn State University assistant football coach Jerry Sandusky leaves the Centre County Courthouse in Bellefonte, Pa., Wednesday, June 20, 2012. The defense rested Wednesday without calling Sandusky to the stand. Closing arguments are set for Thursday morning. Sandusky is charged with 51 counts of child sexual abuse involving 10 boys over a period of 15 years. (AP Photo/Gene J. Puskar)

Former Penn State University assistant football coach Jerry Sandusky, left, arrives at the Centre County Courthouse in Bellefonte, Pa., Wednesday, June 20, 2012. Sandusky is charged with 51 counts of child sexual abuse involving 10 boys over a period of 15 years. (AP Photo/Gene J. Puskar)

Former Penn State University assistant football coach Jerry Sandusky, right, arrives with his attorney Joe Amendola at the Centre County Courthouse in Bellefonte, Pa., Wednesday, June 20, 2012. Sandusky is charged with 51 counts of child sexual abuse involving 10 boys over a period of 15 years. (AP Photo/Gene J. Puskar)

Former Penn State University assistant football coach Jerry Sandusky, right, arrives with his attorney Joe Amendola at the Centre County Courthouse in Bellefonte, Pa., Wednesday, June 20, 2012. Sandusky is charged with 51 counts of child sexual abuse involving 10 boys over a period of 15 years. (AP Photo/Gene J. Puskar)

Former Penn State University assistant football coach Jerry Sandusky, right, arrives with his attorney Joe Amendola, left, as case files are unloaded at the Centre County Courthouse in Bellefonte, Pa., Wednesday, June 20, 2012. Sandusky is charged with 51 counts of child sexual abuse involving 10 boys over a period of 15 years. (AP Photo/Gene J. Puskar)

(AP) ? The defense in Jerry Sandusky's child sex abuse trial rested on its third day Wednesday without calling the former Penn State assistant coach to dispute charges that he molested boys at his home and on campus over more than a decade.

Closing arguments were set for Thursday in the case that led to the dismissal of Hall of Fame football coach Joe Paterno, the ouster of the university president and a re-examination of college administrators' role in reporting abuse charges.

The defense called only four new witnesses Wednesday, including a physician who they used to try and poke holes in the story of a Penn State coaching assistant who testified that he saw Sandusky sexually assault a boy in the campus showers more than a decade ago.

The defense's case has consisted of character witnesses who defended Sandusky's reputation, a psychologist who said Sandusky had a personality disorder and the ex-coach's wife, who said she did not see her husband do anything inappropriate with the accusers. His lawyers showed that an investigator had shared information with an accuser about other alleged victims' stories and repeatedly suggested that accusers have financial motivations for their claims.

Sandusky was only heard from via a November interview with NBC's Bob Costas, saying he probably shouldn't have showered with boys; and in letters he wrote to one of his accusers.

Sandusky is charged with 51 criminal counts for the alleged abuse of 10 boys over 15 years.

One of the last witnesses called was Dr. Jonathan Dranov, a physician summoned to the home of Mike McQueary's father in February 2001 to hear McQueary's account of seeing Sandusky sexually assaulting a boy in the campus showers. The boy, known only as Victim 2, has never been identified and isn't known to prosecutors.

Dranov testified that McQueary told of hearing "sexual sounds" and seeing a boy in the shower before an arm reached around to pull him out of view. McQueary said he made eye contact with the boy and Sandusky later emerged from the showers, Dranov said.

That account is different from what McQueary told a grand jury and testified to at a preliminary hearing and at the trial. He has said he saw Sandusky directly behind the boy's back, moving his midsection enough to convince McQueary it was a sex act.

Dranov told the jury that McQueary described hearing sounds he considered sexual in nature but did not provide him with a graphic description of what he saw.

"It just seemed to make him upset so I backed off that," Dranov said.

Asked to describe McQueary's demeanor, Dranov said: "His voice was trembling. His hands were shaking. He was visibly shaken," Dranov said.

McQueary's report to his superiors ? and Penn State officials' failure to go to outside law enforcement ? led to the firing of Paterno, who died of cancer in January.

McQueary had testified earlier in the trial that he wasn't "over-descriptive" in his conversation with Dranov, saying he told the doctor that what he saw was sexual, wrong and perverse.

The defense rested around lunchtime Wednesday. Judge John Cleland said jury instructions and closing arguments by the defense and then prosecution would take place Thursday morning. If convicted, the 68-year-old former defensive coordinator could be sent to state prison for the rest of his life.

The seven days of testimony were far shorter than the three weeks or so that Cleland had predicted, as many of the 28 defense witnesses were there to briefly vouch for Sandusky's reputation. Prosecutors called 22 witnesses, including eight young men, ages 18 to 28, who alleged a range of abuse from grooming, kissing and massaging to fondling, oral sex and anal rape.

David Hilton, who met Sandusky through a summer camp of his charity, testified Wednesday he felt like investigators were trying to coach him into accusing Sandusky.

"When it got to the second or third time I felt like they wanted me to say something that isn't true," he said.

The other witnesses on Wednesday were a man who ran a golf event for the charity, who testified that McQueary may have participated in the event after the 2001 shower incident; and a Second Mile alum who praised Sandusky's reputation and referred to him as a father figure.

Prosecutors allege that Sandusky met his alleged victims through The Second Mile, which once was lauded for its efforts to help at-risk children but now appears headed for closure as a result of the scandal.

Sandusky didn't take the stand after his lawyer suggested in opening statements that he might and a day after his wife, Dottie, took the stand. In interviews Sandusky did shortly after his arrest in November, with the support and presence of defense attorney Joe Amendola, his responses were halting and uncertain, raising doubts about how he might stand up to cross-examination.

Criminal defendants in Pennsylvania, in serious crimes, generally are required to waive their right to testify on their own behalf, although that does not always happen in open court.

Jurors will have to decide whether the defense was able to create sufficient doubt based on how the investigation was conducted, the reliability and motives of the accusers, and Sandusky's decades-long reputation as a man who worked tirelessly to help underprivileged children.

One of the jurors was excused from the case Wednesday with an illness; the female juror was replaced by an alternate, also a woman.

Sandusky attorney Karl Rominger also asked Cleland to dismiss five counts related to so-called Victim 8, the other boy never identified by investigators. Rominger argued that the timing of the charges had not been proven by the testimony of a janitor's co-worker, who said the janitor had told him he saw Sandusky molest the boy in a shower. The Penn State janitor himself was ruled not medically competent to testify.

The judge didn't immediately rule on the motion.

Associated Press

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Who Are Your Favorite Science, Technology, Engineering and Math Youtubers?

This is a follow up to my last post about Science Video Brainstorming.

Thank you everyone who has kindly donated toward my trip to VidCon 2012! I have enough for a plane ticket! Please continue your generous donations in any amount so I can have a place to stay and food to eat! Recall that I have levels of thanks which range from a huge thanks in my social media, hunting down your favorite youtuber for an autograph, to a mini ad/shoutout in one of my videos all the way to making a custom science video for you or a loved one! I am currently researching one on the eponymously named structures in neuroscience for a donor already!)

If you can help out, I have a paypal button on my website or you can contact me if you cannot stand to use paypal.

As a reminder, my goal is to get to VidCon2012 so I can interview as many science, technology, engineering and math video makers, ones that I may not even be aware of, and share these great finds with you! I truly appreciate your assistance!

My favorite video makers include Bill Hammack, The Engineer Guy, the wonderful Jeri Ellsworth, Periodic Videos, Professor Dave at York and NurdRage. Enjoy videos from the last three on the list (and link to their sites) at my post ?Have Some Coke?and Some Chemistry!?

So, to choose whom I should interview, I?d love to know your favorite science, engineering, technology and math video makers!

This is an exciting time for science in new media!

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Oil prices fall as US supplies grow

(AP) ? A "build" and a "Twist" knocked oil prices to the floor on Wednesday.

In the morning, the government announced a surprise increase, or build, in U.S. oil supplies. That told investors that America has a bounty of crude and less need to import more from foreign countries. Then the Federal Reserve extended an interest-rate reduction program known as Operation Twist, but declined to take more aggressive steps to boost the economy.

Together, they sent the price of oil to a nine-month low.

Benchmark U.S. crude dropped $2.23, or 2.7 percent, to end the day at $81.80 per barrel in New York. That's the lowest level since October. Brent crude, which is used to price much of the oil imported into the U.S., lost $3.07 to finish at $92.69 per barrel in London. That's Brent's lowest finish since December 2010.

Wednesday's drop was among the biggest in a nearly two-month swoon that has slashed 23 percent off the price of oil.

The Energy Information Administration said oil supplies grew by 2.9 million barrels last week. That surprised analysts who had expected a decline of 600,000 barrels. Oil supplies have risen this year to the highest level since 1990, thanks to a boom in North American production.

"The U.S. is flush with oil right now," independent analyst and trader Stephen Schork said. "And if you factor in the economic mess in Europe, slower economic growth in China, and probably overproduction from the Saudis in preparation for the Iranian oil embargo, the world has a comfortable supply" of oil.

Oil prices fell further after the Federal Reserve sharply lowered its outlook for the U.S. economy at the conclusion of a two-day policy meeting. The Fed also predicted that the unemployment rate, now 8.2 percent, probably won't fall much further this year.

In hopes of sparking borrowing and spending by consumers and businesses, the Fed said it would continue its program designed to lower long-term interest rates. Under Operation Twist, the Fed will sell $267 billion of short-term Treasurys and buy longer-term Treasurys through December.

Michael Lynch, president of Strategic Energy & Economic Research, said many investors were hoping for stronger action by the Fed. Absent that, they focused instead on its dour outlook for the economy.

Keeping interest rates low "is kind of like kissing your sister," Lynch said. "You're doing something, but it's not as big of a deal as you'd expected."

What traders wished for was another round of Fed bond purchases. The Fed on two previous occasions purchased a total of more than $2 trillion in bonds. Those bond purchases made it easier for investors to raise money, and many pumped that money into commodities like oil that were considered safe bets given rising demand from developing nations like China.

Oil's recent retreat has been good news for motorists, though.

Gasoline prices have tumbled by nearly 45 cents per gallon, on average, since the first week of April. The national average fell by a penny to $3.487 per gallon on Wednesday, according to auto club AAA, Wright Express and Oil Price Information Service.

In other futures trading, heating oil lost 4.77 cents to end at $2.5874 per gallon while wholesale gasoline lost 5.13 cents to finish at $2.5902 per gallon. Natural gas lost 2.8 cents to end at $2.517 per 1,000 cubic feet.

___

Follow Chris Kahn on Twitter at http://twitter.com/ChrisKahnAP

Associated Press

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How about a Unified: CAlifornia, Texas, Fla, NY Scratchoff...

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Honduras
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How about a Unified: CAlifornia-Texas-Fla-NY Scratchoff...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

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Honduras
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Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

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Honduras
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guys, remember what i just did here and with the lotto in other countries...Well can someone do the scratchoffs of the entire world...i am soooooooooooooooooooooo bussssssssssssssssssssssyyyy...For the past: 4 years i does take a shower at: 12 midnight because i am so bussssyyyy...Post it here or on a popular site, i think it will be better if you post them here but thats just me...i am very busy and i am like: not again...there is also horse racing and dog racing and casino, so can someone please do them, make them unified between countries...

Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

?

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Honduras
Member?#21312
August 29, 2005
4685?Posts
Offline
Posted: Today, 2:58?am - IP Logged

or how about a Unified: CAlifornia-Texas-Fla-NY-Canada-Australia-South Korea-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

?

?

?

?


Honduras
Member?#21312
August 29, 2005
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Offline
Posted: Today, 3:06?am - IP Logged

or how about a Unified: CAlifornia-Canada-Australia-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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?

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or how about a Unified: NY-Canada-Australia-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

?

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How about a Unified: CAlifornia, Texas, Fla, NY Scratchoff...

You?last?visited June?19,?2012, 3:18?am

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Honduras
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August 29, 2005
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Posted: Today, 2:04?am - IP Logged

How about a Unified: CAlifornia-Texas-Fla-NY Scratchoff...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: CAlifornia-Texas-Fla-NY-Canada Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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or how about a Unified: CAlifornia-Texas-Fla-NY-Canada-Australia-South Korea-Mexico Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

?

?

?

?


Honduras
Member?#21312
August 29, 2005
4685?Posts
Offline
Posted: Today, 2:16?am - IP Logged

or how about a Unified: CAlifornia-Canada-Australia Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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or how about a Unified: Texas-Canada-Australia Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: Texas-Canada-Australia-South Korea Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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or how about a Unified: Florida-Canada-Australia Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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or how about a Unified: NY-Canada-Australia Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

?or how about a Unified: NY-Canada-Australia-South Korea Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: NY-Canada-Australia-South Korea-Mexico Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

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Honduras
Member?#21312
August 29, 2005
4685?Posts
Offline
Posted: Today, 2:56?am - IP Logged

guys, remember what i just did here and with the lotto in other countries...Well can someone do the scratchoffs of the entire world...i am soooooooooooooooooooooo bussssssssssssssssssssssyyyy...For the past: 4 years i does take a shower at: 12 midnight because i am so bussssyyyy...Post it here or on a popular site, i think it will be better if you post them here but thats just me...i am very busy and i am like: not again...there is also horse racing and dog racing and casino, so can someone please do them, make them unified between countries...

Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

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Honduras
Member?#21312
August 29, 2005
4685?Posts
Offline
Posted: Today, 2:58?am - IP Logged

or how about a Unified: CAlifornia-Texas-Fla-NY-Canada-Australia-South Korea-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: CAlifornia-Texas-Fla-NY-Canada-Mexico-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: CAlifornia-Texas-Fla-NY-Canada-Australia-Mexico-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: CAlifornia-Texas-Fla-NY-Canada-Australia-South Korea-Mexico-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

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Honduras
Member?#21312
August 29, 2005
4685?Posts
Offline
Posted: Today, 3:06?am - IP Logged

or how about a Unified: CAlifornia-Canada-Australia-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: CAlifornia-Canada-Australia-South Korea-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: CAlifornia-Canada-Australia-South Korea-Mexico-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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or how about a Unified: Texas-Canada-Australia-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: Texas-Canada-Australia-South Korea-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

?or how about a Unified: Texas-Canada-Australia-South Korea-Mexico-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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or how about a Unified: Florida-Canada-Australia-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

?or how about a Unified: Florida-Canada-Australia-South Korea-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

?or how about a Unified: Florida-Canada-Australia-South Korea-Mexico-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

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or how about a Unified: NY-Canada-Australia-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

?or how about a Unified: NY-Canada-Australia-South Korea-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

or how about a Unified: NY-Canada-Australia-South Korea-Mexico-Japan Scratchoffs...You have from: $1, $2, $3, $5, $7, $10, $15, $20, $25, $30, maybe one of $50...

Scientists, geniuses & nerds work on stuffs to purify salt water and on stuffs to make any hair straight.

The Forex trades: 1.6 Trillion dollars EVERY day, that?s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases?

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?

?

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Faculty/Staff Golf League seeking new members

June 18, 2012

The MSU Faculty/Staff Golf League has been active for 25 years, allowing golf enthusiasts to join together for after-hours and weekend fun. The league is open to all (faculty, staff, retired faculty or staff, currently enrolled graduate students, and alumni). Whether whether you're a low, middle, or high handicapper, we encourage you to participate. This isn't just a men's league, it is open to women also. We play 9 holes after 5 p.m. on Tuesday evenings and have Saturday events from now until October, with the final event being the league championship tournament.

Some of the past events have included:
Individual Stroke play
Member/Guest team scramble
"Drop 3 Holes" event
"Tombstone" event
2-person "Best Ball" play
"Stableford" event
"Alternating Shot" team play
3-person and 4-person team scrambles

So get those golf clubs out of the closet, polish them up, and plan on coming out to join us. Everyone is welcome, no matter what type of game you have.

If you have any questions about the league or want additional information on joining, please contact Barry Stewart at brs40@msstate.edu or 662-325-2725.

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Greek leaders close to coalition, aim to ease bailout

ATHENS (Reuters) - Greece's conservatives are close to forming a new coalition government following a narrow election victory, a party official said on Monday, after their leader promised to soften the country's punishing austerity program despite German opposition.

A relief rally on financial markets after Sunday's vote quickly fizzled out as it became clear that the New Democracy party of Antonis Samaras had failed to win a strong mandate to implement the big spending cuts and tax increases demanded by the European Union and the IMF under a bailout deal.

Radical left-wing bloc SYRIZA and smaller parties opposed to the conditions attached to the 130 billion euro ($164 billion) bailout won around half the vote, though they took fewer seats in parliament because the electoral system rewards the first placed party disproportionately.

Samaras received a mandate from the president to form a coalition, and a New Democracy source said the party expected to clinch a deal on Tuesday after Samaras met the third-placed PASOK Socialists and the small Democratic Left group.

Samaras said Greece would meet its commitments under the bailout which aims to save the country from bankruptcy and an exit from the euro zone. But he added:

"We will simultaneously have to make some necessary amendments to the bailout agreement, in order to relieve the people of crippling unemployment and huge hardships."

A senior New Democracy official expected agreement soon on a new cabinet. "We are going to clinch a deal tomorrow, we will form a government," said the official, who declined to be named.

It would aim to accelerate and broaden a privatization program to top up state coffers, but also ask its creditors to spread 11.7 billion euros of further austerity cuts over four years instead of two.

PASOK would also hold cabinet posts, meaning the two parties which have dominated Greece for decades and led it into crisis would stay in power despite SYRIZA's strong showing. The official also expressed hope that the Democratic Left, a small, moderate leftist party, would also take part.

"STICK TO COMMITMENTS"

There were mixed signals from Europe over the extent of any possible changes to the bailout deal. Euro zone paymaster Germany, already irritated at what it sees as the slow pace of Greek reform, ruled out more than minor delays to some targets in the rescue package - Greece's second since 2010.

Chancellor Angela Merkel said at a meeting of G20 leaders in Mexico that any loosening of Greece's agreed reform promises would be unacceptable. "The new government will and must stick to the commitments, which the country has agreed on," she said.

With an emboldened SYRIZA bloc led by charismatic former communist Alexis Tsipras, 37, at the head of a powerful opposition, the new government could face protests soon after taking office unless it can calm social tensions.

Samaras, who voted against the first bailout because it was too harsh, also met Tsipras, who ruled out joining the government. SYRIZA almost doubled its share of the vote since a previous election on May 6, which produced stalemate and propelled Tsipras from fringe obscurity.

SYRIZA supporters celebrated Sunday's result, saying it was a matter of time before the leftists came to power.

With Greece in its fifth year of recession, protests have regularly choked central Athens, some hospitals are running short of medicines, thousands of businesses have closed and beggars and rough sleepers are multiplying.

PASOK leader Evangelos Venizelos, who has seen his once-mighty party's standing collapse due to voters' anger with the ruling elite, said negotiations "must be wrapped up" on Tuesday.

The New Democracy source told Reuters that PASOK would join the government, rather than just vote with it in parliament. "They will participate actively, more than symbolically, and for a long time," said the official.

Democratic Left leader Fotis Kouvelis said he was ready to support Samaras, depending "on the content of what is agreed". Kouvelis has also called for the bailout terms to be eased.

German Foreign Minister Guido Westerwelle said the substance of the bailout agreement was "not negotiable", but that creditors might be willing to offer some flexibility on timing for some of the targets, given the time lost in campaigning.

"We're ready to talk about the time frame as we can't ignore the lost weeks, and we don't want people to suffer because of that," he told German radio on Monday.

BUYING TIME

The head of the Eurogroup of euro zone finance ministers, Jean-Claude Juncker, said they may agree to some concessions on the austerity measures but they would not be substantially altered. "It would send the wrong signal if we made concessions without good reason," he told German ZDF television.

Inspectors from the "Troika" which represents Greece's lenders - the IMF, European Commission and European Central Bank - are expected to visit Athens once a new government is formed.

A coalition that won only 40 percent of the vote is likely to struggle to push through reforms as the Greek public resents the repeated tax hikes on top of pay and pension cuts.

New Democracy won 29.7 percent of the vote, ahead of SYRIZA on 27 percent and PASOK on 12.3 percent. With New Democracy's 50-seat bonus for coming first, a New Democracy-PASOK alliance would have 162 seats in the 300-seat parliament. Adding the Democratic Left would give it 179 seats.

Analysts were pessimistic. "The crisis has been postponed, not necessarily averted," said Theodore Couloumbis of the Athens-based think-tank ELIAMEP. "For this government to last it has to show results. You can't continue with 50 percent youth unemployment and a fifth straight year of recession."

Markets were also skeptical. The FTSEurofirst 300 index rose 1.1 percent at the open but shed all those gains before two hours were up, as the underlying problems in the euro zone brought investors back to earth. The euro's rise also evaporated.

More worryingly, Italian and Spanish borrowing costs rose strongly with yields on Spain's 10-year bonds at dangerously high levels of over 7 percent and equivalent Italian debt over 6 percent, showing that the euro zone crisis was intensifying.

"The new government must deliver a positive development soon - an easing of the bailout terms or a positive sign in the economy - or people will lose trust in a week," a senior New Democracy official said on condition of anonymity. ($1 = 0.7921 euros)

(Additional reporting by George Georgiopolous, Dina Kyriakidou, Karolina Tagaris, Greg Roumeliotis, Harry Papachristou and Deepa Babington in Athens, Gernot Heller in Los Cabos, Mexico, Annika Breidthardt in Berlin, writing by Matt Robinson; editing by David Stamp)

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Greece parties seal coalition deal, problems loom

ATHENS (Reuters) - Greece's traditional ruling parties agreed a coalition government on Wednesday and said they would form a team to renegotiate the punishing terms of a bailout that is staving off bankruptcy but fuelling rising social tensions.

The government brings together the conservative New Democracy party and Socialist PASOK in an uneasy alliance of rivals facing an emboldened opposition vehemently opposed to the austerity conditions attached to the country's financial lifeline.

Party leaders said a team would be formed to renegotiate the terms of the 130 billion euro ($164.79 billion) bailout, setting up a showdown with Greece's European partners who say they will tweak but not re-write the document.

"Our efforts have yielded a parliamentary majority to form a durable government," New Democracy leader Antonis Samaras told President Karolos Papoulias, three days after he narrowly won a Sunday election.

PASOK leader Evangelos Venizelos warned of a "big battle" in Brussels to craft a new deal that would promote growth and contain unemployment.

"The most critical issue is the formation of the national negotiation team and ensuring that it is successful," he told reporters.

PASOK will back the government in parliament but there was no word on who would serve in the new cabinet. Venizelos said the make-up of the government remained to be fixed and would be discussed by the evening.

The conservative-socialist alliance will also be backed by the small Democratic Left party, whose leader, Fotis Kouvelis, called on the government "to gradually disengage from the terms of the bailout that has bled society."

An official from one of the three parties in the coalition said that they had agreed to name National Bank Chairman Vassilis Rapanos as finance minister.

ARCH RIVALS

New Democracy narrowly beat the radical leftist Syriza bloc, which had vowed to scrap the withering terms of the bailout blamed for driving the country deeper into depression.

New Democracy and PASOK have little history of cooperation, having alternated office from the fall of military rule in 1974 until last year, when the economic crisis brewing under their watch forced them to share power in a short-lived national unity government.

They will face immediate pressure to try to soften the bitterly resented austerity measures demanded of Greece under bailout deal agreed in March with the European Union and International Monetary Fund, Greece's second since 2010.

At the same time Samaras must contain the rising social tensions created by the crisis and hold together a coalition in the face of Greece's most severe economic test since World War Two.

He inherits a nation facing its fifth year of a recession that has left one in five workers jobless, seen tens of thousands of businesses close and a growing number of homeless on the streets. The capital Athens is scarred by repeated bouts of violent protest.

Democratic Left party members endorsed a motion to back a coalition if a final agreement is reached, but according to party sources refused to place senior politicians in the cabinet, a move which potentially weakens their commitment to the new government.

PASOK, the former ruling party humbled in a May 6 inconclusive election and Sunday's re-run, may also stop short of sending senior leaders of its own to serve in the government.

Greek media reported that Venizelos had clashed angrily with other senior party leaders over his insistence that the Socialists should not put ministers of their own in a cabinet led by the right.

Both center-left parties could nominate technocrats from outside politics to serve in the cabinet but their reluctance to throw their own weight behind the new government may not augur well for the hard battles ahead.

"It will be a very weak coalition," said Nikos Konstandaras, managing editor of leading conservative daily Kathimerini, pointing to the decades of enmity between New Democracy and PASOK, the two traditional giants of Greek politics.

SUSPICIOUS

Germany, the euro zone's biggest economy, remains suspicious of Samaras, who switched from opposing the bailout when PASOK was in power to cautious endorsement when the Socialist government began to unravel late last year.

"What is needed is more decisiveness in swiftly implementing the measures which have already been agreed," German Finance Minister Wolfgang Schaeuble told the weekly Die Zeit in an interview.

However European Union officials have signaled that some adjustments are likely to a program that has slipped behind target in the weeks of political uncertainty following the May election and a deeper than expected recession.

With Greek society deeply split, a repeat of the violent anti-austerity protests seen last year is a constant threat.

Greek electoral law gives New Democracy a 50-seat bonus for coming first, so an alliance with PASOK would have 162 seats, a majority in the 300-seat parliament. Adding the Democratic Left would give it 179 seats.

Fast running out of money, the new government's first mission will be to convince officials from the so-called "troika" of European Union, European Central Bank and International Monetary Fund inspectors to sign off on the next installment of aid from the bailout.

Patching up funding gaps, gas supplier DEPA overcame a cash crunch with a 100 million euro bank loan to pay foreign suppliers and avert an imminent energy crisis, a company official said on Wednesday.

"The money was cashed in earlier today. It gives us a breather to pay for July and August deliveries," the official said on condition of anonymity.

But underlining the rising poverty levels which the new government will have to confront, hundreds of people turned up in Athens to a free distribution of fruit and vegetables by a farmers' association based on the island of Crete.

"Here we're seeing middle-class people that we never imagined we would see lining up like that," Athens mayor George Kaminis told Antenna TV. "But this is the reality." ($1 = 0.7889 euros)

(Additional reporting by Harry Papachristou, Tatiana Fargou, Karolina Tagaris, Greg Roumeliotis and Dina Kyriakidou; Writing by James Mackenzie and Matt Robinson; Editing by)

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