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The ongoing financial crisis claimed its latest victim this week as the Lehman Brothers investment firm filed for Chapter 11 protection on Monday, after attempts to find an investor to rescue it broke down. Lehman listed unsecured debts of
$613 billion, much of which was owed to creditors in Hong Kong, Taiwan, Taipei, Tokyo, and New York. Although the average man on the street may not feel any immediate effects from the failure of Lehman and other banks, economists warn
that continuing bank failures will tighten the already narrow spigot of available credit, slowing consumer spending and pushing the global economy deeper into the doldrums. Read more...
SENIORS HIT HARD BY FINANCIAL CRISIS
There's already one group of Americans feeling the pain of our economic implosion--senior citizens. Many retirees are watching their investment portfolios shrivel and die as the market falters, cutting into their available income and making it difficult for them to make ends meet. Our James R. Hood investigates the problems seniors are facing as they are forced to work long into their golden years and their houses continue to lose value in the crippled market, making even simple life choices far more difficult. SENIORS HIT HARD BY FINANCIAL CRISIS
This week's economic and financial news...
• How Does The Banking Crisis Affect You? Advice for everyday people on how to keep their money safe.
• FDIC Seizes West Virginia Bank, More Likely to Follow More than 100 banks on agency's troubled list.
• Mortgage Rates Fall for Fifth Straight Week Fixed-rate loans nearly double that of adjustable mortgages.
• August Housing Starts Near 18-Year Low Reducing inventory may lead to end of housing slump.
• Lenders Offering Homeowners Little Aid, Congress Told States testify that rescue efforts are minimal.
• Back-to-School 2008: Retail Nightmare Consumers cut spending, leave many stores struggling.
Read more...
Our intrepid founder took a spur-of-the-moment cross-country odyssey to sunny California recently, documenting both the weird and wonderful things he saw on the road, and his method of conveyance--the 2007 Saturn Aura XR. The Aura held up extremely well throughout the marathon jaunt to the West Coast and back, even as Hood and his passengers experienced everything from giant crosses, to finding hotel rooms in the midst of hurricane evacuations, to the wonders (and limits) of XM Radio. Read the review if you're interested in giving the Aura a whirl yourself. Read more...
SHORTAGES, PRICE GOUGING FOLLOW IN WAKE OF IKE
The devastation left by Hurricane Ike didn't just come in the form of wrecked communities and power outages. Gas stations throughout the affected regions reported irregular shortages, while drivers noted price spikes before and immediately after the hurricane hit, in some places topping $5 a gallon. Automotive maven Joe Benton reports that Attorneys General in six states are investigating the sudden price jumps, even as prices trickle slowly down and lower refining could lead to future spikes. SHORTAGES, PRICE GOUGING FOLLOW IN WAKE OF IKE
This week's automotive news...
• Texting Behind The Wheel Like Driving Drunk Or High British study confirms texting reduces reaction time.
• Investigations of $5 Gas in North Carolina, Florida, and Virginia Price gouging, shortages at the pump probed.
• Seat Belt Use Hits Record Level in 2008 Every region of the country shows increase or consistent usage.
• GM Unveils Chevy Volt Automaker introduced electric car on 100th anniversary.
• Oil Prices Fall, Gas Prices Surge Accusations of gouging in wake of Ike's wrath.
• Pumping More U.S. Oil Won't Lower Prices, Consumer Group Says Alternative energy investment will be more help.
Recalls this week...
CHINESE INFANT FORMULA DEATH TOLL INCREASES
Three babies have died and 6,200 have fallen ill in China due to ingesting infant formula containing the dangerous chemical melamine, the same chemical used in tainted Chinese-made pet food that killed thousands of pets last year. The Food and Drug Administration (FDA) claims that infant formula made in the United States is safe, but Joseph Enoch reports that the Chinese government is under fire for letting many companies export the tainted formula across the world without any controls or oversight. CHINESE INFANT FORMULA DEATH TOLL INCREASES
This week's consumer protection news...
• Lawn Mower Horsepower Overstated, Class Action Claims Mower manufacturers clipped Texas consumers, plaintiffs charge.
• More Impurities Showing Up In Ground Water, USGS Says Study shows increase in nitrate contamination.
• Texas Investigates Price Gouging, Scams in Wake of Ike Attorney General warns residents to watch out for hucksters and con men.
• FTC Cracks Down On Bogus Cancer "Cures" "No credible evidence" that products can cure or treat anything.
• FDA Web Site on Drug Ads Developed by Drug Industry PR Firm Clunky advice fails to properly educate consumers.
• FTC Backs Crackdown on Pre-Paid Phone Card Abuses Agency wants legislation against deceptive marketing tactics.
• United Doubles Second Bag Fee To $50 First bag check fee remains $15.
• Dex-Cool Class Action Deadline Nears Complaints must be filed by October 27.
SEVEN WEB SITES THAT CAN SAVE YOU THOUSANDS
Everyone knows that searching the Internet can yield you big shopping bargains--but where are the best places to look? If you don't know exactly what you want, you could end up getting off at the wrong exit of the information superhighway. ShopSmart magazine compiled a list of the seven best Web sites for prices, bargains, shipping, and freebies, all to help you be a smarter surfer and shopper. Read more...
BUYING A COMPUTER WITH POOR CREDIT
Speaking of bargains, there are a lot of "alternative financing" companies out there that claim they can help you buy a computer even with bad credit or no credit history. In these tough economic times, it sounds like a good deal--but it can cost you in the long run. Mark Huffman crunched the numbers and found that not only can it cost you more to finance a computer than to buy it outright, but the computer you end up getting isn't nearly as powerful or advanced as something you might buy directly from a retailer. BUYING A COMPUTER WITH POOR CREDIT
This week's technology news...
• Beware of Email Scams Tied to Financial Crisis Scammers use Wall Street meltdown to fool consumers.
• Bank Stopped From Enabling Online Tobacco Sales Attorneys General crack down on Web sites illegally selling cigarettes.
• House Holds Hearing on Digital Television Transition Congress, Bush officials spar over funding for converter coupons.
• Best Buy Acquiring Napster Former file-sharing service will stay mostly independent.
MEMORIES OF DIET FAILURES CAN CURB OVEREATING
Remember the last time you had one too many slices of pizza at a party? Those memories can actively help prevent you from falling off the diet wagon in the future, according to a
new study in the Journal of Consumer Research. The researchers found that impulsive and non-impulsive people act and react differently to examples of temptation--specifically, impulsive people were more likely to
resist their impulse to binge or cheat when they considered past examples of overeating. By keeping the associated feelings of guilt at the forefront, impulsive people were better able to curb their habits
and stay on target. MEMORIES OF DIET FAILURES CAN CURB OVEREATING
RESEARCHERS SUPPRESS "HUNGER HORMONE"
There's more good news on the obesity-fighting front. Scientists at Johns Hopkins are reporting success in significantly suppressing levels of the "hunger hormone" ghrelin in pigs. Treatments that can suppress
or level out the amount of ghrelin produced in the human body could provide an alternative to gastric bypass surgery as a treatment for serious obesity. RESEARCHERS SUPPRESS "HUNGER HORMONE"
This week's health news...
• Surgeon General Urges More Deep Vein Thrombosis Treatment Condition can lead to pulmonary embolism, blocking arteries.
• Study Links BPA with Various Diseases Chemical compound may contribute to diabetes and heart conditions.
• FDA Approves Expanded Uses for Gardasil Agency approves use for vulvar and vaginal cancers.
• Can Broccoli Help Treat Chronic Lung Disease? Veggie helps maintain antioxidants that prevent pulmonary problems.
