Current Events in March 2012

A survey of economists shows a less optimistic forecast for housing this year than previous estimates. The survey of 104 economists, real estate experts and investment and market strategists shows an expectation that home prices will fall another 0.7 percent in 2012.

The survey, sponsored by real estate information marketplace Zillow, Inc. and conducted by Pulsenomics LLC, is based on the projected path of the S&P/Case-Shiller U.S. National Home Price Index during the coming five years.

The latest survey shows that economists now expect U.S. home prices to begin to rise in 2013, although expectations for how much they would rise were tempered when compared to their responses in the December survey. For example, economists now predict home prices will rise 1.4 percent in 2013, compared to their previous prediction of 1.8 percent.

December dip

"The fourth quarter drop in the national Case-Shiller Index was sharper than some expected and is the likely reason so many of the economists in the survey revised their forecasts downward," said Zillow Chief Economist Stan Humphries. "Looking at the longer history of these forecasts by top economists, the bottom in home prices always seems just around the corner but never quite here. Conditions across the country vary considerably. Some markets have already hit bottom and are experiencing tight inventory and multiple offers, while foreclosures and negative equity continue to pull down the housing market in many other parts of the country."

True, all real estate is local and local conditions drive the price. In markets where jobs pay high salaries and are plentiful, home prices are nearly back to their bubble levels. Washington D.C. and its suburbs are an example.

But in other areas, prices are down and still falling. Another real estate site, Trulia, reports that buying a home in the New York City borough of Queens is now cheaper than renting it, because home prices are falling and rent is rising.

Varied views

The economists surveyed by Zillow varied widely in their expectations for 2012. The most optimistic quartile of panelists predict a one percent increase, on average, in home prices during the full year, while the most pessimistic predict an average decline of 2.8 percent.

Of the individual economists, the most bullish, Susan Sterne of Economic Analysis Associates Inc., predicts home prices will climb five percent during the year while Gary Shilling of A. Gary Shilling & Company, Inc. expects prices to fall eight percent.

The National Association of Realtors (NAR) says the major factor holding back the housing recovery is the difficulty many credit-worthy borrowers experience in obtaining a mortgage. Part of the problem is a tightening of lending standards. Another is an appraisal process that routinely values a house less than the purchaser has agreed to pay.

A majority of the economists surveyed by Zillow believe adoption of a large-scale, bulk sales program of foreclosed properties by the federal government would help the market recover, but might drive down prices more in the short-term.

Sure, gas prices are high and many consumers are still feeling economically queasy but if surveys are to be believed, that won't keep them from blowing $16 billion on Easter candy and spring apparel.

The National Retail Federation's Easter spending survey, conducted by BIGinsight, predicts Americans will shell out an average of $145.28 on everything from apparel and candy to food and decorations this year, up 11 percent from $131.04 last year. 

“Though the price of gas is on everyone’s mind, Easter is one of the few holidays when some consumers are willing to stretch their budgets, especially because many children look forward to treats and new outfits on Easter morning,” said NRF President and CEO Matthew Shay. “Retailers will make sure to offer plenty of promotions on candy, apparel, food and decorations in the coming weeks for eager holiday shoppers.” 

Candy & clothes

According to the survey, those celebrating Easter have a hefty appetite for candy and new spring clothes. Nearly half (48.5%) will head to the stores to take advantage of retailers’ spring sales on colorful fashions and accessories, with total spending on those items expected to reach $3.0 billion. Most though, will head straight to the candy aisle (89.3%), shelling out more than $2 billion on traditional favorites such as chocolate eggs and jelly beans.

The average person will spend more on these items as well: $26.11 on apparel, up from $21.51 last year, and $20.35 on candy, up from $18.55 last year. 

Holiday feasts

Americans are also set to fork over more on their Easter meals with the average person expected to spend $44.34, up from $40.05 last year for a total $5.1 billion. Additionally, consumers will spend an average of $20.57 on gifts for their friends and family, $10.50 on flowers and $9.07 on decorations for their home and office. Half (53.6%) will buy greeting cards, spending an average of $7.04. 

Though most people will shop at their local discount store (63.5%), department stores can expect a nice treat this Easter as well. Four in 10 (42.6%) – and the highest percent in the survey’s history - will shop at a department store for gifts and other holiday merchandise.

Online retailers will see the biggest jump in traffic this year, however. Nearly two in five (18.7%) will shop online, up from 14.8 percent last year and just 11.1 percent in 2008. Others will shop at specialty stores (25.4%) such as a jeweler, electronic store or florist, or a specialty clothing store (9.7%). 

“Beautiful weather conditions coupled with a slight lift in consumer confidence will likely be a boon to the Easter holiday this year as consumers begin to seek out new spring merchandise for their home or garden, and even their wardrobe,” said BIGinsight Consumer Insights Director Pam Goodfellow. “It remains to be seen though, if this spending momentum will carry into the coming months with the cost of fueling up on the rise.”

Why does inhaling anesthetics cause unconsciousness? It sounds like a simple question but, believe it or not, researchers are only starting to awaken to the answer.

Scientists from the National Institute of Standards and Technology (NIST) and the National Institutes of Health (NIH) have found hints that anesthesia may affect the organization of fat molecules, or lipids, in a cell’s outer membrane—potentially altering the ability to send signals along nerve cell membranes.

A federal appeals court has held that graphic warnings on cigarette packs do not violate tobacco companies' First Amendment rights.

The U.S. Court of Appeals for the Sixth Circuit upheld most provisions of the new law giving the U.S. Food and Drug Administration (FDA) the power to regulate tobacco products, including the requirement for large, graphic warnings on cigarette packs. 

The court majority found that the law's requirement for large, graphic cigarette warning labels "are reasonably related to the government's interest in preventing consumer deception and are therefore constitutional." The court found that the warnings "do not impose any restriction on Plaintiff's dissemination of speech, nor do they touch on Plaintiffs' core speech. Instead, the labels serve as disclaimers to the public regarding the incontestable health consequences of using tobacco."

Key provisions

The court also upheld key provisions of the law that:

• Prohibit tobacco companies from making health claims about tobacco products without FDA review;

• Ban several forms of tobacco marketing that appeal to children, including brand name sponsorships, tobacco-branded merchandise such as caps and t-shirts, and free samples of tobacco products; and

• Prohibit tobacco companies from making statements implying that a tobacco product is safer because it is regulated by the FDA.

The ruling for the most part affirms an earlier decision by Judge Joseph H. McKinley in the U.S. District Court for the Western District of Kentucky. Judge McKinley's decision upheld the cigarette warning labels requirement and most other provisions of the law.

Separate case

In a separate, narrower case, Judge Richard Leon, of the U.S. District Court for the District of Columbia, struck down the new cigarette pack warnings. That ruling is on appeal to the U.S. Court of Appeals for the DC Circuit, with oral arguments scheduled for April 10.

In addition to finding that the warning requirement is constitutional, the ruling strongly supports Congress' findings in enacting the requirement and finds the warnings are supported by the scientific evidence and the tobacco industry's long history of deception regarding the health hazards of its products.

"Tobacco manufacturers and tobacco-related trade organizations knowingly and actively conspired to deceive the public about the health risks and addictiveness of smoking for decades," the majority opinion states. "In addition to this decades-long deception by Tobacco Companies, their advertising promoting smoking deceives consumers if it does not warn consumers about tobacco's serious health risks…

"Faced with evidence that the current warnings ineffectively convey the risks of tobacco use and that most people do not understand the full risks, the Act's new warnings are reasonably related to promoting greater public understanding of the risks. A warning that is not noticed, read, or understood does not serve its function. The new warnings rationally address these problems by being larger and including graphics."

In addition, the appeals court majority countered Judge Leon's argument that the proposed labels are meant to incite an emotional response and therefore constitute 'opinions' that don't pass legal scrutiny. "Facts can disconcert, displease, provoke an emotional response, spark controversy and even overwhelm reason, but that does not magically turn such facts into opinions," the Sixth Circuit opinion states.

California is strengthening consumer protections for users of online dating sites, including the requirement that sites checking subscribers against national sex offender registries.

Attorney General Kamala D. Harris said three of the nation's leading online dating providers have issued a joint statement of business principles that online dating providers should follow to help protect members from identity theft, financial scams and sexual predators. 

The agreement between the Attorney General and online dating providers eHarmony, Match.com and Spark Networks (operator of such websites as JDate and ChristianMingle), states that the companies will protect their members through the use of online safety tools, including checking subscribers against national sex offender registries and by providing a rapid abuse reporting system for members. 

The websites also agreed to educate members about safe online dating practices, and will supply members with online safety tips, including fraud prevention guidance and tips for safely meeting people offline. These tips and financial scam warnings will be issued on an ongoing basis to registered members. 

"Consumers should be able to use websites without the fear of being scammed or targeted. It is a priority for this office to ensure consumers are protected online, and companies who are creating in the Internet space have a continued opportunity to innovate and thrive," Harris said.

Screen members

Providers will continue their efforts to screen members for safety threats, whether financial or physical, using a number of protective tools, including looking for fake profiles and checking sex offender registries to prevent registered sex offenders from using their fee-based services. Any member who is identified as a registered sex offender will not be allowed to use these services. 

This joint statement also ensures that the online dating service providers have rapid abuse reporting systems, which give members access to a website, email address and/or phone number to report any suspected criminal activity, including physical safety concerns and fraud. This agreement reflects best practices that these industry leaders are following. 

"In the interest of protecting and educating users, I strongly encourage all online dating companies to adopt the same principles as these industry leaders," Attorney General Harris said. 

The Financial Industry Regulatory Authority (FINRA) has fined Citi International Financial Services LLC, a subsidiary of Citigroup, Inc., $600,000 and ordered more than $648,000 in restitution and interest to more than 3,600 customers for charging excessive markups and markdowns on corporate and agency bond transactions, and for related supervisory violations.

States like New York have very high taxes on cigarettes, both to raise revenue and to discourage smoking. But there are ways around the tax.

New York Attorney General Eric T. Schneiderman says one retailer -- Tobacco House C.C.W., Inc., in Dewitt, N.Y. -- has found a way around the tax. According to Schneiderman, consumers can purchase loose tobacco, tubes of cigarette paper and access to machinery that instantly produces assembled cigarettes onsite.

The customer leaves the store with cigarettes that were purchased without paying federal or state cigarette taxes. But Schneiderman says this "roll your own" business sells cigarettes in violation of tax and other regulatory statutes applicable to cigarettes by selling the components of cigarettes and facilitating customers' production of untaxed and unsafe cigarettes.

The lawsuit

Schneiderman has sued the business, its owner, and its employees, saying they are in violation of the Federal Contraband Cigarette Trafficking Act, the New York State Cigarette Marketing Standards Act, and New York State tax law, for selling cigarettes on which the required taxes have not been paid.

The lawsuit also charges the defendants with violating New York’s Cigarette Fire Safety Act by selling cigarettes that have not been certified as “fire-safe” to extinguish more quickly than standard cigarettes, and which bear no health warnings, both of which are required by New York State law.

“Rather than playing by the rules, this store and others like it are cheating the state out of millions of dollars per year in legitimate tax revenue and endangering public health and safety while they’re doing it,” Schneiderman said.

'Illegally low prices'

Schneiderman says the business charges “illegally low prices" for their store-made machine-rolled cigarettes, encouraging people to take up smoking and to discourage smokers from quitting.

"Additionally, because cigarettes are the number one cause of deaths by fire in this country, New York State has long required that all cigarettes sold in the state be fire-safe; these cigarettes are not,” Schneiderman said.

Tobacco House advertised “All Cigarettes $28.99 per Carton,” and sometimes even advertised a $3.00-off-per-carton coupon, bringing the price down to $25.99 per carton, prices which fall well below the amount of the taxes alone on a carton of cigarettes.

The state's lawsuit against Tobacco House seeks an injunction to stop the defendants from continuing their sale, distribution, and advertisement of non-taxed cigarettes, as well as compensation for the tax revenue lost by the state as a result of defendants’ activities.

The U.S. Food and Drug Administration has approved the first generic versions of Boniva (ibandronate) tablets, a once-monthly product to treat or prevent osteoporosis in women after menopause.

The most common type of bone disease, osteoporosis, is characterized by low bone mass and structural deterioration of bone tissue, leading to bone fragility and an increased risk of fractures of the hip, spine, and wrist. Ibandronate is in a class of medications called bisphosphonates that help increase bone mass and reduce the chance of having a spinal fracture.

According to the National Institutes of Health, in the United States more than 40 million people either already have osteoporosis or are at high risk due to low bone mass.

“Men as well as women are affected by osteoporosis, a disease that can be prevented and treated,” said Keith Webber, Ph.D., deputy director of the Office of Pharmaceutical Science in the FDA’s Center for Drug Evaluation and Research. “For people who must manage their health conditions over time, it is important to have affordable treatment options.”

Generic drugs approved by FDA have the same high quality and strength as brand-name drugs and provide a lower cost alternative. The generic manufacturing and packaging sites must pass the same quality standards as those of brand name drugs.

Apotex Inc., Orchid Healthcare, and Mylan Pharmaceuticals Inc. are the manufacturers that have gained FDA approval to make generic 150 milligram ibandronate tablets. 

Medication guide

An FDA-required Medication Guide will be given to patients and caregivers when ibandronate is dispensed, describes the risks and adverse reactions people should be mindful of when using the drug. Ibandronate can cause serious side effects including: esophagus problems; low calcium levels in the blood; bone, joint, or muscle pain; severe jaw bone problems; and unusual thigh bone fractures.

In the clinical trials for Boniva, the most commonly observed adverse reactions were:  back pain, indigestion (dyspepsia), pain in extremity, diarrhea, headache, and muscle pain (myalgia).

Being invited to attend a presentation on vacation travel packages is like being invited to a presentation on timeshares. Chances are you're going to be sold something you don't really want that doesn't turn out nearly the way it's presented.

A five-count complaint alleges that Global Travel Solutions, LLC, and its owner, Jason A. Krieck, violated the New Jersey Consumer Fraud Act and the Advertising Regulations, among other laws, by committing "unconscionable commercial practices and deception, making false promises or misrepresentations, and engaging in the knowing omission of material facts in their advertisement and sale of memberships."

“We allege the defendants’ deceptive business practices began with postcards the company mailed offering complimentary cruises and roundtrip airfare, and continued right through their sales presentations,” Chiesa said. “Rather than getting away on a vacation, these consumers ended up stuck at home, dealing with the loss of their hard-earned money.”

Complaints

To date, the Division has received complaints from 54 New Jersey consumers, the majority of whom paid between $995 to $8,500 for the membership, plus a $29.95 monthly fee. After discovering that the memberships did not provide the represented deep discounts and availability of accommodations and other travel services, consumers attempted to cancel their memberships but were unable to do so for varying reasons.

Some consumers who contacted the company said were told cancellation papers would be mailed to them but no papers were received. Others went to the company’s Montvale, N.J., location during listed business hours but found the office was closed.

Empty promises

“According to our lawsuit, the defendants lured consumers into purchasing memberships through empty promises of discounted vacation services and free cruises and airfare, all with the purpose of defrauding consumers and enriching themselves,” said Thomas R. Calcagni, Director of the State Division of Consumer Affairs. “We allege that consumers paid significant money for sham memberships that were essentially worthless. In fact, consumers could find lower vacation travel prices through free internet sites.”

The alleged violations of the Consumer Fraud Act include inducing consumers to attend presentations for memberships by offering a complimentary cruise and airfare that are, in fact, not complimentary. The suit also charges the company failed to book the complimentary cruise and airfare even after the consumer submitted the requisite paperwork and paid the requisite deposits.

With vacation season approaching, consumers should be on the lookout for vacation deals that sound too good to be true. Unfortunately, most of them are.

Many of those abandoned foreclosed houses blighting neighborhood streets could soon have "for rent" signs in front of them. Fannie Mae and Freddie Mac are considering a proposal to stop selling and start renting many of those homes.

The reason is very simple: an eight percent cap rate.

According to a new and much-publicized Federal Reserve white paper, eight percent is the return which could result from renting foreclosed housing units now owned by Fannie Mae and Freddie Mac.

The catch is that the 8 percent capitalization rate is hardly a sure thing — it takes a lot of financial twists and turns to justify the 8 percent figure. No less important, it may be that 8 percent is actually a low estimate — logic suggests that savvy investors may do far better.

For example, an investor might pay $100,000 for a house that could be rented for $1,200 a month. After spending $20,000 on improvements, the total investment would be $120,000 and the annual rent $14,400 - a return of 12 percent before taxes.

Rents are rising

Rents also continue to go up, mainly because so many people can no longer qualify for a mortgage to buy a home. Rents have risen 10 percent or more in many markets in the last year.

In January Federal Reserve Chairman Ben Bernanke sent a white paper to Congress describing some of the strategies which could be used to ease the foreclosure crisis. One idea is to rent empty homes now held by Fannie Mae and Freddie Mac.

Such a move would would help reduce the inventory of foreclosures on the market. There are other advantages to renting repossessed homes. The properties would be occupied and by itself that would mean less vandalism and decay, fewer neighborhood eyesores and actual cash flow to offset ownership costs until the properties can be sold off.

If Fannie and Freddie do decide to start renting homes, they will be following, rather than setting a trend. Individual investors have been buying up distressed properties for more than a year. In the last 12 months, National Association of Realtors sales data show that investors have made up nearly one third of the buyers every month.

Skin cancer is not only one of the most prevalent forms of cancer, it's also the most preventable.

So why do so many people get it?  

In a study reported in Online First by Archives of Dermatology, one of the JAMA/Archives journals, a team of Texas researchers tackled that question. They assembled a group of 20 medical students from the University of Texas Health Science Center, San Antonio.

Interviews with the group demonstrated that they understood the causes of skin cancer but -- perhaps surprisingly -- had less understanding about sun protection factor (SPF) and the proper use of sunscreen.

Not only were they light on their knowledge of sunscreen, but most of them tanned themselves in tanning beds or in the sun.

SPF what?

The researchers concluded that the med students did not know the meaning of SPF numbers, did not know which sunscreen would be most appropriate for them, did not know how to reapply sunscreen and did not know whether sunscreen was immediatelly effective or whether it takes time for it to activate.

The most common reason for ignoring skin cancer risks was, as one student put it, skin cancer "is not as scary as other cancers," like breast or lung cancer.

Some of the students were also skeptical that the preventive efforts would pay off. 

One student said, "People have the perception they can fix their skin later because companies sell products for age reversal, so people think they can fix the problem later and not worry about it now."

The students suggested that celebrities be used in media campaigns to raise awareness about skin cancer and how to prevent it.  The researchers agreed that "new strategies to persuasively communication information and warnings about skin cancer are needed."

What to do

For more information about sunscreen, see:

• Not All Sunscreens Are Created Equal
• Don't Leave the Sunscreen at Home
• Four Sunscreens Outshine the Rest

Astronomers scanning distant planets say life can't evolve on those planets without water. Starbucks would perhaps add coffee and juice to that list of evolutionary necessities.

To keep thing evolving smoothly here on Earth, Starbucks is opening its first Evolution Fresh juice store today in Bellevue, Wash. The coffee chain purchased the California-based juice company last November for $30 million.

"Starbucks has seen success with expanded healthier menu items to deliver the nutritious, on-the-go options consumers are seeking," the company said in a prepared statement. "With this acquisition, Starbucks will reinvent the $1.6 billion super-premium juice segment, its significant next step in entering the larger $50 billion Health and Wellness sector."

"Our intent is to build a national Health and Wellness brand leveraging our scale, resources and premium product expertise. Bringing Evolution Fresh into the Starbucks family marks an important step forward in this pursuit,” said Howard Schultz, Starbucks chairman, president and CEO. 

Evolution juices are already carried in Whole Foods, Safeway, Costco and many Trader Joe's stores, thus clearing a major obstacle in establishing a new or rebranded product line.

Yeah, so?

What's so evolutionary about Evolution Fresh?

Well, as Starbucks tells it, it's putting evolution into reverse, returning to the days when juice was made on the spot from fresh fruits and vegetables, not from a bunch of concentrate delivered in 50-gallon drums.

Of course, those with long, caffeinated memories may recall that when Starbucks started its chain of coffee shops, it roasted its coffee beans on the spot.  That lasted a decade or two until roving bands of MBAs decreed it would be more efficient to do what everyone else does -- roast the beans at a central processing plant and ship them around the country to local outlets.

Starbucks' baked goods and sandwiches also leave some customers feeling that they bought an antique.

"I ordered a lemon cake. I sat down and discovered it was hard and old, said MaryJane of Santa Ana, Calif.  "I went back to return it and the girl said, 'All the cake is the same.'" MaryJane asked for a different slice anyway

"She got mad and took the tongs, scraping off the frosting, and stuffed the cake in the bag. Then, she began to talk about me to another employee. Bad customer service. Very rude."

And speaking of fresh, Vicki of Portland, Ore., complains that the employees at the Starbucks she's been frequenting for seven years spend their idle moments laughing at their customers.

"At one point, I walked up to the counter and the manager said, 'Here's a case in point,' and the employee at the counter still laughed," Vicki said. "I have been laughed at and teased all life and I resent having my one time of during the day ruined. I felt like I was on stage each time I went in. The last time I was in there, the manager couldn't see me, and I heard him talking about me again.

"The sad thing is that before this guy was promoted manager, I was treated with respect."

This is perhaps the fatal flaw of chain stores. Try as they may to channel locally-owned businesses, chains can't replicate the oversight provided by fully evolved humans whose livelihood depends on treating their customers with respect.

Kelli, of Los Alamitos, Calif., negotiated a price for a car and left the dealership to drive it home. Four days later, she says, the salesman called with some bad news. She wasn't approved for financing after all.

"They had also added two extended warranties on the contract that I did not see when I signed the contract; I agreed to only purchase one extended warranty," Kelli wrote in a post at ConsumerAffairs. "I was told I needed a co-signer or would need to return the car. I asked if they could remove the two warranties would bring the price down by $5,000 and maybe the bank would then approve the loan."

But Kelli says the dealer said no.

"They did not want to help me get the financing worked out and I returned the car," Kelli said. "They lied to me stating I was approved when I had not been and then tried to make me purchase two extended warranties adding $5000 to my purchase price, stating the bank required them which is not only false but an illegal practice. I returned the car at their request and told them what day I would be there and asked them to have a check ready for me for my original $4,072 deposit."

No check

But when Kelli returned the car, she said there was no check waiting for her. She was told she would have to return the following week to get it.

Kelli experienced a practice called "spot delivery." It's when a dealer makes a deal "on the spot" and you leave with the car. It's only later that you learn there is a problem with the financing, or you need a co-signer, or must pay a higher rate. By that time you have already "bonded" with the car and don't want to return it.

According to attorneys who prosecute auto dealer fraud, if Kelli signed purchase documents and registration applications and if she obtained insurance for the vehicle, had a new license plate put on the car or had her old plate transferred, the car belonged to her and she should not have returned it.

Kelli may find that getting all of her deposit back from the dealer might not be easy. If she can't afford an attorney, she should consider talking with someone in California Attorney General Kamala Harris' office before having further contact with the dealer.

Now more than ever, it's important to drive a car that gets good fuel economy. Fortunately, there is an increasing number to choose from.

Even cars that historically didn't get great mileage are recording much better results now. Automotive information site Edmunds.com has singled out the Audi A3 and Chevy Equinox as the two models that have made the biggest strides in fuel economy since 2008, when gasoline prices hit $4 a gallon for the first time.

The A3 has increased its fuel economy 38.5 percent, from 21.0 mpg in its 2008 model year, to 29.1 mpg in its 2012 model year. The Chevy Equinox is a close second with a 32 percent growth in fuel economy in the last four years. That compares to an industrywide increase of 16.4 percent over the same period.

Wake-up call

"The 2008 spike in gas prices served as a wake-up call for manufacturers whose fleets just weren't cutting it for consumers who were demanding vehicles with better fuel economy," said Edmunds.com Analyst Ivan Drury. "Automakers responded by de-emphasizing fuel-chugging V6 and V8 engines and turning their focus to fuel-sipping four-cylinder and diesel engines."

The new car registration data since 2008 bears out that trend. Car-buyers appear happy to purchase a four-cylinder powered vehicle if it results in fewer trips to the gas pump. And the new four-cylinder engines seem to be getting better all the time, in terms of both performance and fuel economy.

In December 2008 — when gas prices were $1.69 per gallon — four-cylinder engines were found in 36.7 percent of all new cars registered in the U.S. By December 2011 — when gas prices stood at $3.27 — the share of four-cylinders had increased to 44.4 percent.

Significant savings

Now that gas prices are soaring again, improved fuel economy is a welcome relief for the average consumer's gas budget. Based on today's gas prices, calculated at $3.79 a gallon, the owner of a 2012 model year vehicle is saving about $400 per year, on average, compared to the owner of a 2008 model year vehicle, according to Edmunds' estimate.

Edmunds also points out that many gasoline-powered four-cylinder vehicles are a more economical choice than high-mileage hybrids, which tend to cost thousands of dollars more. The slight savings on gas with a hybrid probably won't offset the initial extra cost to buy the vehicle.

The late-winter springlike temperatures that have prevailed in much of the U.S. this year may have one very negative side effect. Pests may show up earlier, and in greater numbers.

"The mild winter weather could have a ripple effect on pest activity," said Jim Warneke, Southeast division technical services manager for Orkin Pest Control. "Insects stay in a hibernation-like state during the winter since cold temperatures slow down their metabolism and reproduction cycles. But with the season's above-average temperatures, we could have larger numbers of ants, termites, cockroaches and mosquitoes this spring."

While most ants don't bite, they can be just as big a nuisance as mosquitoes. There are about 50 different ant species in the U.S. While many are just a nuisance, carpenter ants can infest homes and cause expensive structural damage.

Similar to termites

"Another common sign in the spring is a group of ants with wings which can be confused with termite swarms," said Warneke. "It's a common misconception because of their similar appearance. Correctly identifying an ant infestation determines the best treatment method."

When the temperature rises above 60 degrees, termites often swarm inside homes before moving outdoors to search for food and water. Termites are found in every state except Alaska and thrive in warm and humid climates.

Signs of an infestation can include termite swarms, mud tubes and piles of discarded wings. After the termites swarm — usually during warm spring days — they can shed their wings and leave behind piles of them.

Termites are attracted to light, so swarms are typically found around lighting fixtures and windowsills. Mud tubes act as a protective tunnel and provide moisture for the termites. The mud tubes are about the size of a pencil and usually run vertically on the inside or outside of a building's foundation.

Cockroaches

Cockroaches are a hardy pest and therefore, hard to get rid of. They pick up germs on their legs and bodies and can spread disease, contaminate food and cause allergies and asthma. According to the World Health Organization (WHO), cockroaches can also carry organisms that cause diarrhea, dysentery, cholera, typhoid fever and viral diseases.

"Cockroaches burrow in mulch or bark for the winter," said Warneke. "But since the ground temperature has been warmer, cockroaches probably stayed near the ground's surface, and we could possibly have larger numbers this spring."

Because cockroaches are nocturnal, if you see one during the day, that means they were likely forced out by overcrowding—a possible sign of a severe infestation.

Preventive measures

There are things you can do to make your home a less-attractive target for insect pests. Remove all unnecessary food and water sources. Seal cracks and crevices around doors and windows. Clean up spilled food and drinks immediately.

Outside, keep gutters clear, and direct water from downspouts away from your home.

Thin out vegetation and do not pile mulch or allow soil to accumulate against your home's siding. This could provide a breeding ground for mosquitoes and access for ants, cockroaches and termites to enter your home.

Pay close attention to dirt-filled porches and crawlspaces. Termites could have easy access to wood through cracks in foundation walls or if wood is in contact with the soil.

Taxpayers have two extra days to file their income tax returns this year, but just because you have the extra time, doesn't mean you have to use it. In fact, there's something to be said for not putting it off to the last minute.

Even though over 75 percent of taxpayers who filed last year received a tax refund -- and the average refund is nearly $3,000 --many chose to wait until the tax filing deadline. to tackle this important annual task.

The 2012 filing deadline is now less than a month away, so if you haven't started preparing your return, you shouldn't put it off much longer, tax professionals say.

No advantage to waiting

"There is no real advantage to waiting to file a tax return because, even if you owe taxes, you can delay making a payment until April 17," said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. "The top advantage of filing now, assuming you have a refund coming to you, is to receive your refund sooner, rather than later. Early filing has the added advantages of discouraging identity theft and avoiding the last minute crunch."

The Internal Revenue Service (IRS) has spent more time and effort this year dealing with cases of identity theft. Criminals who obtain a taxpayer's Social Security number can file a phony return early in the tax year and claim a refund. When the taxpayer finally gets around to filing their real tax return, they learn that someone has already filed using their money and collected their refund.

Refund delays

The IRS' crackdown on identity theft has resulted in delays in getting out many refunds, another reason to file as soon as possible.

Another reason to not wait until the last minute is to avoid the bottleneck created by all those other procrastinaters. Every year, thousands of taxpayers wait until the last minute to file. Making an appointment with an accountant or professional tax preparer now ensures that you have the chance to complete your return without being rushed.

As mobile phones have become a universal accessory of modern life, concerned researchers look for possible harmful health effects. There is already a growing body of study on cell phones' potential impact on tumor development.

Now, researchers at the Yale School of Medicine have determined that exposure to radiation from cell phones during pregnancy affects the brain development of offspring, potentially leading to hyperactivity.

The study was based on mice and the results are detailed in the latest issue of Scientific Reports.

Affects behavior

“This is the first experimental evidence that fetal exposure to radiofrequency radiation from cellular telephones does in fact affect adult behavior,” said senior author Hugh S. Taylor, M.D., professor and chief of the Division of Reproductive Endocrinology and Infertility in the Department of Obstetrics, Gynecology & Reproductive Sciences.

Taylor and co-authors exposed pregnant mice to radiation from a muted and silenced cell phone positioned above the cage and placed on an active phone call for the duration of the trial. A control group of mice was kept under the same conditions but with the phone deactivated.

Exposed mice were hyperactive

The team measured the brain electrical activity of adult mice that were exposed to radiation as fetuses, and conducted a battery of psychological and behavioral tests. They found that the mice that were exposed to radiation tended to be more hyperactive and had reduced memory capacity.

The theory goes that the behavioral changes result from an effect during pregnancy on the development of neurons in the prefrontal cortex region of the brain.

Attention deficit hyperactivity disorder (ADHD) is a relatively new developmental disorder that predates the proliferation of cell phones. But the researchers think its growth might have something to do with so many mobile phones now in use.

“We have shown that behavioral problems in mice that resemble ADHD are caused by cell phone exposure in the womb,” said Taylor. “The rise in behavioral disorders in human children may be in part due to fetal cellular telephone irradiation exposure.”

While he agrees that further research is needed, Taylor has no qualms about recommending pregnant women limit their exposure to cell phones.  

Aging Baby Boomers are beginning to inherit money in increasing numbers as members of the "greatest generation," who have worked hard and saved all their lives, pass from the scene.

What becomes of the money? A new study shows that half of it gets spent, and only half gets saved. The findings may be good news for retailers, restaurant owners and people in the service industry who will receive that spillover from that windfall, but not so good news for personal finance advisers who continually urge their clients to save more.

Disappointing

“I came into this study thinking that people would save more of their inheritance than what I found,” said Jay Zagorsky, author of the study and research scientist at Ohio State University’s Center for Human Resource Research. “The fact that people spent about half is disappointing in some ways, but not shocking.”

The findings are significant because, over the next 10 years, elderly Americans are expected to transfer almost $4 trillion to their heirs.

“If these findings are correct, this means about $2 trillion will be saved and $2 trillion spent,” Zagorsky said.

Overall, more than one-third of all inheritors saw a decline or no change in their wealth after getting an inheritance. Among baby boomers who inherited less than $1,000, slightly more than 40 percent spent their entire gift.

The more you inherit, the more you keep

The more someone inherited, the less likely they were to spend or lose it all, but according to Zagorsky's data, it happens. For those who received $100,000 or more, more than 18 percent either spent it, lost it, or gave it away.

“This means that almost one in five young baby boomers who inherited a significant amount of money spent or lost all of it. That’s pretty amazing,” Zagorsky said.

How do you make sure you aren't one of those 20 percent who spend or lose it all? Financial advisers say it starts with a plan.

Make a plan

Spend a significant amount of time thinking about your goals for your inheritance. Do you want to use it to support yourself in your old age, or perhaps grow it and pass it on to other family members?

As soon as you receive the money, it is important to segregate it from your other finances. Open a new bank or brokerage account and set aside the portion you want to save. If it is kept separate from the rest of your money, you will be less tempted to spend it.

Talk to a trusted and objective financial adviser about your goals for the money and how the money should be invested.

Most inheritances are tax-free, and because of that provide real opportunities to build wealth and increase financial security. Capitalizing on those opportunities requires some discipline and a plan.

Whatever you do, you don't want to wind up facing retirement with virtually no assets, like the 60 percent of prospective retirees studied in a recent survey.

Foodborne disease outbreaks are a growing problem in the U.S. and it appears a growing part of that problem is imported food.

A new report from the U.S. Centers for Disease Control shows foodbourne illnesses related to imported food rose in 2009 and 2010, and nearly half of the outbreaks implicated foods imported from areas which previously had not been associated with outbreaks.

"It's too early to say if the recent numbers represent a trend, but CDC officials are analyzing information from 2011 and will continue to monitor for these outbreaks in the future," said Hannah Gould, Ph.D., an epidemiologist in CDC's Division of Foodborne, Waterborne and Environmental Diseases and the lead author of the study.

Outbreaks tied to imports

CDC experts went back to 2005, looking for outbreaks that could be tied to imports. During the five year period from 2005 through 2010, 39 outbreaks and 2,348 illnesses were linked to imported food from 15 countries.

Of those outbreaks, nearly half - 17 - occurred in 2009 and 2010. Overall, fish were the most common source of implicated imported foodborne disease outbreaks, followed by spices. Nearly 45 percent of the imported foods causing outbreaks came from Asia.

"As our food supply becomes more global, people are eating foods from all over the world, potentially exposing them to germs from all corners of the world, too," Gould said. "We saw an increased number of outbreaks due to imported foods during recent years, and more types of foods from more countries causing outbreaks."

Tighter inspections

Congress has approved an expansion of Food and Drug Administration enforcement authority, and part of that expansion includes wider inspections of U.S. port facilities where food enters the country. While the U.S. is a major agricultural exporter, it has also begun to import greater quantities of food in recent years.

A recent Department of Agriculture report shows U.S. food imports grew from $41 billion in 1998 to $78 billion in 2007. Much of that growth has occurred in fruit and vegetables, seafood and processed food products.

The report estimated that as much as 85 percent of the seafood eaten in the United States is now imported, and depending on the time of the year, up to 60 percent of fresh produce is imported.