Current Events in February 2013

Diet soda often gets a bad rap from those who think it's really not much of an improvement over a real-sugar soft drink. One frequent criticism is that diet sodas leave you hungry -- and therefore more likely to pig out on sugary and fatty food and snacks.

But a new study says it's not so. 

Researchers at the University of North Carolina studied 318 overweight or obese adults who said they consumed at least 280 calories' worth of drinks each day.

One third of the participants were advised to substitute at least two daily servings of sugary beverages with water. Another third was instructed to substitute diet drinks, including Diet Coke and Diet Lipton Tea.

At the conclusion of the six-month study, water and diet beverage drinkers reduced their average daily calories from what they had been at the start of the study, from between 2,000 and 2,300 calories to 1,500 to 1,800 calories.

At both the three- and six-month points, researchers said people in the two groups were eating a similar amount of total calories, carbohydrates, fat and sugar. Everyone in the study lost weight.

Theory contradicted

The findings seem to contradict the theory that artificial sweeteners used in diet drinks could disrupt the hormones that are involved in hunger and satiety cues -- making diet soda drinkers feel hungrier than others.

Some have speculated that, because the artificial sweeteners are sweeter than sugar, they might cause regular users to develop what we might call a hyper-sweet tooth, causing them to go in search of more sugary snacks and drinks.

But that's not what the North Carolina study found.

"Our study does not provide evidence to suggest that a short-term consumption of diet beverages, compared with water, increases preferences for sweet foods and beverages," wrote lead researcher Carmen Piernas in the American Journal of Clinical Nutrition.

There are still studies out there that have suggested an increased risk of cancer related to artificial sweeteners, but most researchers say nothing is conclusive on that front.

It's worth mentioning that water is still the best thirst-quencher. It's sugar-free, has no calories and, if it's tap water, it's free. 

Is the U.S. food supply safer than in past years? After many high-profile foodborne illness outbreaks, Congress passed the Food Safety Modernization Act (FSMA), which was signed into law in 2011.

The measure was supposed to beef up government efforts to prevent foodborne illness and consolidate inspection and enforcement activity under the Food and Drug Administration (FDA).

Two years later, FDA is still in the process of implementing the FSMA's provisions. In its 2013 report on High Risk Areas of Oversight, the General Accountability Office (GAO) put food safety near the top of the list.

Fragmented oversight

"The fragmented federal oversight of food safety has caused inconsistent oversight, ineffective coordination, and inefficient use of resources." the report warns. "The 2010 nationwide recall of more than 500 million eggs because of Salmonella contamination highlights this fragmentation."

The report points out that, under current regulations, several agencies have different roles and responsibilities in the egg production system, including the FDA and the U.S. Department of Agriculture’s (USDA) Food Safety Inspection Service (FSIS), USDA’s Agricultural Marketing Service, and USDA’s Animal and Plant Health Inspection Service.

The report also spotlights what it calls three major trends that create food safety challenges:

• A substantial and increasing portion of the U.S. food supply is imported;
• Consumers are eating more raw and minimally processed foods;
• Growing segments of the population are increasingly susceptible to foodborne illnesses.

Not fully implemented

"Because FSMA is not yet fully implemented and a number of the regulations required under the law are still under development or review, it is too early to understand in depth the impact of the law on federal oversight of food safety," the report concluded.

Some in Congress are losing patience. When FDA announced it was extending the comment period on two food safety rules mandated under FSMA, Rep. Rosa DeLauro (D-Conn.) suggested "special interests" were pressuring the FDA to slow the process in an effort to water down the rules.

“American families are already living with the specter of foodborne illnesses and contamination hanging over them," DeLauro said. "It is shameful that in a country as wealthy and prosperous as ours, with all the scientific and technological knowledge we possess, parents still have to worry if ground beef, cantaloupe, spinach, or any other number of foods, will send their children to the hospital, or possibly even their death."

Big increase in food recalls

While recent months have produced no major food safety incidents like the egg recall or 2007's deadly peanut contamination, there is evidence that consumers remain at risk. Stericycle ExpertRECALL, a recall management firm, reports food recalls during the fourth quarter of last year reached a two year quarterly high.

It reports an average rate of approximately six food recalls being documented every day in the fourth quarter, affecting some 18.4 million products, more than double the units affected in the previous quarter.

“Right before FDA’s announcement of two major requirements proposed under the Food Safety Modernization Act, the agency documented 552 food recalls, representing a 33 percent increase over the previous quarter and reaching the highest level of recall activity in more than two years,” said Mike Rozembajgier, vice president of recalls at Stericycle ExpertRECALL.

Of the recalled food products announced during the fourth quarter, 94 percent fell within the classification of having the potential to cause serious health consequences or death. 165 of those recalls were related to issues stemming from a plant processing nut products. Salmonella concerns were the number one cause of food recalls followed by undeclared allergens or other allergen concerns.

The economy has never quite gotten on track since the Great Recession officially ended in June 2009. Unemployment remains high and consumer spending -- along with business spending for that matter -- remains in check.

While there are undoubtedly many factors at work, the role of gasoline prices continues to come under close scrutiny.

When the recession escalated with the credit crisis in late 2008, oil prices plunged, along with gasoline prices. After peaking at over $4 a gallon in July of that year, the national average price of regular plunged to below $2 a gallon by the end of 2008.

Since that time, gasoline prices have regained their footing while the economy has not. Gasoline prices escalated sharply at the beginning of both 2011 and 2012 -- always remaining well above $3 a gallon throughout the year.

Higher and faster

This year gasoline prices rose higher and faster than ever before. And just as in previous years, there are signs the economy is slowing down.

Bloomberg News obtained some very candid internal emails from Walmart executives showing the company is off to its worst winter start in seven years. One executive called the retailer's early 2013 sales "a total disaster."

The disaster just happens to coincide with a huge spike in gasoline prices. Not every economist is linking the two but economist Joel Naroff, of Naroff Economic Advisors, in Holland, Pa., says the rise in pump prices is getting worrisome for the overall economy.

Economist's take

"Indeed, coupled with the payroll tax increase, there could be a real slowdown in consumer spending," Naroff said. "Add to that the potential for a government sequestration for a short time at least and once again we are looking at an economy that could falter."

That's right, another economic hit is waiting in the wings. On March 1, automatic across-the-board spending cuts will go into effect, lopping $85 billion a year from the federal budget. Though that will hardly make a dent in a $1 trillion annual deficit, it's likely to slow the economy even more.

"As I like to say, all we have to fear is Washington itself, though this time the energy sector is doing its part in hurting the economy," Naroff said.

It is, indeed, a triple whammy. The two-year payroll tax "holiday" expired at the beginning of this year, so everyone who works for a paycheck had a slightly smaller one starting last month. If the check wasn't that big to begin with, the reduction makes a big difference.

Math problem

Added to that employees who drive to work are now having to pay more to do that. Let's do the math.

Let's say Carol Consumer has to drive 20 miles one way to her job. Her car gets, on average, 20 miles to the gallon. She uses two gallons of fuel each day and, with about 22 workdays in the average month, she buys 44 gallons of gas each month.

If gasoline costs $3.28 a gallon, which it did on December 28, 2012, the monthly expenditure is $144.32. When the average price rises to the current $3.75, the monthly cost is $165.

Not a big difference, you say? Multiply the extra $20 a month by the millions of U.S. consumers living in the margins and you might find a big hit to the economy.

In fact, it's estimated that for every penny that fuel prices go up takes at least $1 billion away from consumers' disposable income. Simply put, if U.S. consumers are putting more money into their gas tanks, they have less to spend at Walmart, or at grocery stores and restaurants. It becomes a drag on the economy and so, it's no surprise that the economy begins to noticeably slow whenever gasoline prices go up.

If you get a phone call from someone trying to sell you health insurance -- hang up!! You could be the target of a costly scam.

Under a settlement with the Federal Trade Commission (FTC), telemarketers who allegedly tricked consumers into buying purported health insurance are permanently banned from selling healthcare-related products. Among consumers being targeted are those who are uninsured, unemployed, or have pre-existing medical conditions.

Last September, the FTC charged Roy D. Hamilton and his wife, Judy M. Hamilton, and their companies, Health Service Providers, Inc., Magnolia Health Management Corporation, Magnolia Technologies Corporation, and Fav Marketing Inc. (HSP defendants), with fraudulently selling bogus health insurance for the Independent Association of Businesses (IAB).

Predatory marketing

The HSP defendants allegedly called consumers who had submitted their contact information to Websites that claimed to offer quotes for traditional health insurance or equivalent coverage.

According to the FTC, after paying an initial fee ranging from $50 to several hundred dollars and a monthly fee ranging from $40 to $1,000, consumers eventually learned they had not purchased comprehensive health insurance, but were deceived into buying an IAB membership that supposedly provided discounts on services such as golf, travel, and some limited health related services and insured benefits.

In addition to the ban against selling healthcare-related products, the settlement order prohibits the HSP defendants from misrepresenting material facts about any goods or services, selling or otherwise benefiting from consumers’ personal information, and from violating the FTC’s Telemarketing Sales Rule, including calling consumers on the Do Not Call Registry.

The order also imposes an $11.8 million judgment that has been suspended following the HSP defendants’ surrender of assets to the FTC.

Continuing legal action

Litigation continues against the remaining defendants behind the allegedly fraudulent health insurance scheme: IAB Marketing Associates LP, Independent Association of Businesses, HealthCorp International Inc., JW Marketing Designs LLC, International Marketing Agencies, LP, International Marketing Management LLC, Wood LLC, James C. Wood, James J. Wood, Michael J. Wood, and Gary D. Wood.

The FTC has also sought to amend its complaint against the remaining defendants in the case, adding two individuals as relief defendants who allegedly benefited from the scheme but did not participate in it.

The rate of construction for new homes fell sharply in January.

According to the U.S. Census Bureau and the Department of Housing and Urban Development, privately-owned housing starts were down 8.5 percent from December's revised estimate -- to a seasonally adjusted annual rate of 890,000. Still, the January rate is 23.6 percent above the year-ago rate of 720,000.

Single-family housing starts in January were at a rate of 613,000 -- 0.8 percent above the revised December figure of 608,000. The January rate for units in buildings with five units or more plunged 26.1 percent from December -- to 260,000.

David Crowe, chief economist at the National Association of Home Builders, tells ConsumerAffairs, that the huge decline in starts for the rental sector was due to a leveling out from the huge surge of starts in December.

Building permits

Applications for building permits, an indicator of what developers have in mind for the future, were higher.

Permits for privately-owned housing units totaled a seasonally-adjusted annual rate of 925,000 -- up 1.8 percent from revised December rate of 909,000 and 35.2 percent above the January 2012 estimate of 684,000.

Single-family permits were up 1.9 percent from December at rate of 584,000, while authorizations for units in buildings with five units or more were up 1.0 percent -- to a rate of 311,000.

Crowe says overall, the January report shows “modest improvement” in housing and that he expects it to continue throughout 2013. He says those builders who have “been waiting for several years are finally deciding to go forward.”

The Producer Price Index (PPI) -- or wholesale prices -- rose in January for the first time in three months.

According to the Bureau of Labor Statistics, the cost of goods one step shy of what consumers pay was up 0.2 percent following declines of 0.3 percent in December and 0.4 percent in November. On an unadjusted basis, the finished goods index advanced 1.4 percent

For the 12 months ended in January, the PPI was up 1.4 percent.

Food and energy

Over three quarters of the rise in finished goods prices can be attributed came from a 0.7 percent increase in the cost of for consumer foods, following an 0.8 percent drop in December. The January advance was led by a 39 percent jump in prices for fresh and dry vegetables. Increases in the prices for soft drinks and for candy and nuts also contributed.

Energy prices, meanwhile dropped 0.4 percent in January -- the fourth straight decrease. The January decline is mostly attributable to prices for gasoline, which fell 2.1 percent.

Core rate

Prices for finished goods less foods and energy -- the so-called “core rate” of inflation -- rose 0.2 percent in January, the third straight increase. Most of that can be traced to a 2.5-percent rise in the index for pharmaceutical preparations. Higher prices for communication and related equipment also contributed.

News that home prices posted their biggest year-over-year gain in more than six years could produce a surge in relocation by job-seeking homeowners this year. And that -- according to John A. Challenger, chief executive officer of Challenger, Gray & Christmas, -- could ultimately help accelerate the decline in unemployment rates.

“One factor that has kept unemployment rates high has been the inability of underwater homeowners to relocate for employment opportunities,” said Challenger. “With home prices bouncing back, even those who may now simply break even on a home sale might consider moving to a region where jobs are more plentiful. This could spark a more rapid decline in the unemployment rate over the next year.”

Demand for workers

As of December, there were still more than 130 metropolitan areas where the unemployment rate stood at 8.0 percent or higher and nearly 50 where the rate was at or above 10 percent, according to data from the Bureau of Labor Statistics. Meanwhile, there are about 20 metropolitan areas where unemployment is below 4.5 percent.

“It is likely that employers in these low-unemployment regions are actually struggling to find available workers with the skills need to fill job openings,” said Challenger.

Relocation for employment opportunities has been difficult in this recovery due to the collapse in home values. At the end of the third quarter, 22 percent of residential properties remained underwater, according to the latest available data from real estate analytics firm CoreLogic.

The turning tide

However, the percentage of underwater homeowners is likely to have declined since that last reading, based on the fact that December not only marked the tenth consecutive month of increased home prices, but it saw the biggest gain since May 2006, according to CoreLogic.

“As more and more homeowners reach or even exceed the break-even point on their mortgages, they will gain the freedom to explore job opportunities beyond their immediate surroundings,” said Challenger. “By casting a much wider net, these individuals will significantly reduce the length of the job search.”

According to Challenger, relocation is starting to increase among the job seekers going through the firm’s employment transition programs. Last year, an average of 13.3 percent of those finding new positions each quarter relocated for the opportunity. The average was 11.7 percent in 2011. In 2009 and 2010, as the recession and housing market hit bottom, the relocation rate dropped to just 10 percent.

“Increased mobility and churn in the housing market, of course, will help the economy in several ways. As mentioned, it could lead to an increase in the number of people leaving high unemployment regions for areas where job openings are going unfilled, thus getting more people back on payrolls,” said Challenger.

Increased mobility possible

It just so happens that some of the states with the biggest gains in home prices are also among those still struggling with high unemployment. Arizona home prices saw the biggest year-over-year increase in home prices at 20.2 percent. The unemployment rate for the state matches the national rate of 7.9 percent, but some metropolitan areas, such as Flagstaff, Lake Havasu City, and Prescott, have unemployment rates above 8.0 percent.

In California, where many cities are still experiencing double-digit unemployment rates, home prices increased 12.6 percent. Nevada home prices were up 15.3 percent, which is good news for the 10.2 percent of the state’s labor force that remains unemployed.

“In addition, increased home buying will ignite more consumer spending on relocation related services, new furniture and appliances, home improvement projects, etc. All of this activity will feed the economy and help create more jobs,” said Challenger.

Indeed, the latest report from the Commerce Department showed a 4.6 percent increase in orders for durable goods, which includes appliances and furniture. And, at least one company is reaping the benefits from increased home buying; Americo, the parent company of U-Haul International, reported that net earnings for the nine-month period ending December 31, 2012 were up 33 percent from the same period a year earlier.  

If you converted amounts to a Roth IRA or designated Roth account in 2010, the Internal Revenue Service (IRS) reminds you that -- in most cases -- you must report half of the resulting taxable income on your 2012 return.

Normally, Roth conversions are taxable in the year the conversion occurs. For example, the taxable amount from a 2012 conversion must be included in full on a 2012 return. But under a special rule that applied only to 2010 conversions, taxpayers generally include half the taxable amount in their income for 2011 and half for 2012, unless they chose to include all of it in income on their 2010 return.

Roth conversions in 2010 from traditional IRAs are shown on 2012 Form 1040, Line 15b, or Form 1040A, Line 11b. Conversions from workplace retirement plans, including in-plan rollovers to designated Roth accounts, are reported on Form 1040, Line 16b, or Form 1040A, Line 12b.

Reporting distributions

Taxpayers who also received Roth distributions in either 2010 or 2011 may be able to report a smaller taxable amount for 2012. For details, see the discussion under 2012 Reporting of 2010 Roth Rollovers and Conversions. In addition, worksheets and examples can be found in Publication 590 for Roth IRA conversions and Publication 575 for conversions to designated Roth accounts.

Taxpayers who made Roth conversions in 2012 or are planning to do so in 2013 or later years must file Form 8606 to report the conversion.

As in 2010 and 2011, income limits no longer apply to Roth IRA conversions.

The lawsuits have begun in the wake of the problem voyage of the Carnival Cruise Lines ship Triumph. After the ship docked in Mobile, Ala., passengers complained of severe hardships during the four days the ship was adrift after an engine room fire.

The U.S. Coast Guard has investigated the incident, linking the fire to a leak, which knocked out power and the sewage system. Meanwhile, a ConsumerAffairs reader, Holly, of Texarkana, Tex., says she was a passenger on the Triumph back in 2011 and worried then that the ship had problems with its waste disposal system.

"I logged a complaint with the on call manager letting them know something was wrong with the sewer system," Holly wrote in a ConsumerAffairs post. "The stink was all over the boat! I would say the Triumph has had a plumbing issue for many months that was never addressed when I logged a complaint."

Coast Guard regulation delayed

The measure requires that the Coast Guard to continue to study the use of modern out-of-the-water survival devices. Frump said this, in effect, keeps them from applying new standards to thousands of passenger vessels equipped with old fashioned life saving rings.

The out-of-water devices hold people up and out of the water, giving them a better chance to fight hypothermia. Old fashioned life rings submerge one's body core into water, which even at mild temperatures quickly can kill.

Recent example of effectiveness

Frump points to the recent sinking of the Bounty during Hurricane Sandy. The ship was equipped with the out-of-the-water devices, which Frump says saved lives. Two months later, he says, Congress essentially deleted the Coast Guard effort to require such devices on more and more passenger vessels such as whale watch boats, tourist DUKWs, fishing charter vessels and others.

"This is isn't a study, it's a stall," Frump writes. "The studies can last years and years more."

Frump says a faster, cheaper study of the effectiveness of out-of-the-water devices would be to watch the last reel of the movie Titanic.

"She is out of the water and lives," he writes, referring to a scene with Leonardo DiCaprio and Kate Winslet. "He's in the water and dies. In, dies. Out, lives. Study over."

Tougher regulations for cruise ships

Ever since the Titanic disaster, cruise ships have operated under stringent international safety regulations. A United Nations agency – the International Maritime Organization (IMO) – mandates global standards for the safety and operation of cruise ships.

When Titanic sank after hitting an iceberg in April 1912, it carried lifeboats for less than half the people on board. The disaster claimed more than 1,500 lives.

Video games for kids come a dime a dozen these days and most of them have to do with either blowing something up, shooting something or someone, or providing kids an opportunity to live out their hero fantasies and save the world.

But there are fewer games these days that help children understand math, science or English and some of the games that do exist either lack the cool graphics that kids love or they turn out to be unchallenging. And if a kid isn’t challenged or feel like they don't have some virtual mission to accomplish, they’ll simply turn to the million other games that happen to be on the market today.  

However, there are some educational games that have it right in terms of having the correct balance of learning tools and visual eye candy, which is desperately needed to keep the ever-wandering attention span of a child engaged, and one of those games that has that necessary balance is BrainNook.com, which has a bunch of games that surround both math and English.

Paid or free

Users can access Brain Nook either through a paid membership or for free; those who pay for a membership are able to play more games, have an extended number of features and are have an unlimited number of friends that users can compete against.

Membership prices are $6.99 for a one-month membership, $16.99 for a three-month membership or $49.99 for a 12-month membership, but kids can also get hours and hours of play without paying anything and still have access to several games that can help them understand math and English better, and also help build their confidence, which sometimes is the only barrier between a child and academic success.

The company, Nunook Interactive Inc., which created Brain Nook, says the games are for kids ages 6-11, but children outside of these age brackets can still benefit from the games and strengthen their learning and retention skills.

And if you happen to be a school teacher, you can sign up through a special link on the site and add your entire class to the database, so teachers can create friendly learning competitions among the students, track their progress and give out rewards.

The background story behind the Brain Nook games is that the user is an alien that crash lands on Earth, and goes on to explore various worlds that each contain a different language or math game.

The company says the site allows kids to interact with others in a safe manner, by allowing them to compete with other users and compare scores to build competitiveness among the players, which is what many kids are already used to with some of the games that are sold today.

State standards

In addition, each game is based on the Common Core State Standards, which are educational guidelines used by most states in the U.S., so in many cases the games will be able to meet a student where they are, in terms of what they’re learning at school and what their teachers are covering.

The Brain Nook games can be used before certain lessons even begin, so they can get an early jump on what’s going to be taught in the future.

The site also gives progress reports to parents that show which games their child played the most, and also informs parents which subjects kids are spending the most time on.

Some of the games are math challenges where kids have to fill in certain blanks to complete a multiplication table. In some of the language games, users have to match up synonyms in order to move on. There are many games that use different approaches and give different point totals, so kids have access to a good amount of variety with Brain Nook.

After completing a game or series of challenges, kids can report the results to their parents if they choose by sending them an electronic message, and once each game is completed successfully, kids are rewarded with points and badges that allow them to access other virtual worlds and delve deeper into the game where lessons become increasingly more difficult.

And not only does Brain Nook help with math and English lessons, it can also improve things like analytical skills, memorization, reasoning skills, decision-making, computer literacy and dexterity, the company says, which can do wonders for a child's academic self-esteem.

So instead of buying that new game to strengthen your child’s save-the-world skills, you may want to log onto BrainNook.com, because knowing how to save the planet is nice, but knowing how to construct a proper sentence or simplify a fraction just might come in a bit handier for your child, since many of the save-the-world-positions are already filled.

The more you pay for something, the better it should be, right? It may be true in many cases but might not be true when it comes to buying a washing machine.

You can spend a little -- $400 or so -- or a lot, more in the neighborhood of $1,500 to $2,700. But don't be surprised if the more expensive machine is the one that gives you the most problems and has the shortest lifespan.

The modern washing machine got its start in the years right after World War II. It was a top-loading machine with a central agitator, that moves the clothing around in the soapy water. A set of electromechanical  controls determine the settings. For years, these machines evolved with very little change.

Digital controls

The 1990s brought the digital age, along with new designs in washing machines. The electromechanical controls were replaced with electronic circuit boards. Instead of loading clothing from the top, these newly designed machines were front-loaders -- the type of machines typically found in laundromats.

Both kinds of machines are available today. In a recent comparison, Consumer Reports found that both had pros and cons.

"Top-loaders with center-post agitators typically cost less and wash the fastest, but performance is unimpressive," the magazine reported. "High-efficiency washers hold more laundry, use less water to wash, and extract more water. That cuts drying time, saving energy and money. Front-loaders generally use the least water and spin the fastest, resulting in the most savings."

Problems

While that may be true, consumers posting reviews at ConsumerAffairs appear to experience the most problems with the newer, more sophisticated and more expensive front loading machines. Carrie, of Englewood, Fla., reports purchasing a GE front-loader in 2008 that broke down in December 2012.

"The tech came in and opened the washing machine and shook the basket and said 'just what I thought, the basket is broken.' Then he gave us an estimate for $529."

While front-loaders are supposed to do a better job of cleaning clothes, many consumers disagree. Amy, of Port Washington, Wisc., is one of them.

"We purchased the LG front loading washing machine four years ago," she writes. "It does smell sometimes but we bleach out the machine once a month or so. It does not clean our clothes very well. I have to soak my shirts and pants in a water/ammonia solution before putting them in the washer to get a 'start' on cleaning them properly. I guess if we used high powered stink detergent we'd not notice the not quite clean smell of freshly laundered cloths; but we don't want artificial stink on our clothes."

Jim, of Ramona, California, says he purchased a Maytag Bravos in 2010.

Fried computer board

"Worked fine, but all of a sudden the washer stopped spinning and was not following any of the cycles," he writes. "Of course it was out of warranty. Repairman states the computer board on the washer is fried and will cost $400 to replace."

Christopher, of Parks, La., tells us he's a washing machine repairman who has recently found a serious problem on two Samsung models he's worked on.

"The 'spider' on the back of the inner drum corrodes and literally turns to sand," Christopher wrote in a ConsumerAffairs post. "This causes the inner drum to either unbalance or the drive shaft to completely break off. Either way, it can cause catastrophic damage to the inner drum, outer tub and door seal. The last one I worked on, the WF328AAR, had a 3E error, because the inner drum would not spin and the motor thought it was locked up. Turns out, parts of the spider had broken off and lodged in the inner drum, causing it to lock."

At the same time, complaints about the cheaper, old-fashioned top-loaders are rare. One reason may be the older design has been perfected over the years and has fewer things that can go wrong. Instead of sophisticated electronic controls it has a switch with three settings, much like changing the channels in an old analog TV set.

Consumers in the market for a new washing machine should not be swayed by sexy designs and elaborate features. Instead, carefully research the model you are considering, checking to see what other consumers have experienced. You may find that an old-fashioned top-loader will, despite its supposed drawbacks, not only be cheaper but be more likely to provide years of trouble-free performance.

Gentlemen, start your engines. The Chevrolet SS is back and it's a 415-horsepower, rear-wheel-drive V-8, evoking the SS (SuperSports) of old. The 2014 Chevrolet SS will debut this weekend at the Daytona International Speedway as the SS racecar makes its NASCAR debut during the Daytona 500. 

“The Chevrolet brand was largely built on the strength of rear-drive performance sedans, yet it's been 17 years since we've offered one,” said Mark Reuss, president of General Motors North America. “The comfort, convenience, spaciousness and V-8 power make the SS a total performance package unlike any other on the road today.”

The Chevrolet SS is powered by the LS3 Chevrolet V-8, also used in the 2013 Corvette, expected to deliver 415 horsepower and 415 lb-ft of torque. It's married to a six-speed automatic transmission, which can be shifted manually using steering wheel paddles.

With an aggressive 3.27 final-drive ratio, the Chevrolet SS accelerates from 0 to 60 mph in about five seconds – making it one of the quickest sedans on the market, GM said.

The Chevrolet SS shares the rear-wheel-drive architecture that is the foundation for the Camaro, Caprice Police Patrol Vehicle and Holden’s VF Commodore, sold in Australia, where the SS will be built.

The new SS should please rear-wheel drive enthusiasts who have been mourning  the loss of the Pontiac G8, a sedan on the same platform that garnered solid sales and critical praise before Pontiac's demise in early 2010. It will no doubt cause severe indigestion in the eco-conscious -- but come on guys, life can't be all work.

GM says the car's sport-tuned chassis ensures that it will turn and stop as well as it accelerates. Handling is improved by a near 50/50 weight distribution, and a low center of gravity – made possible in part by the aluminum hood and rear deck lid that are 30 percent lighter than traditional steel panels.

“Our goal was to create a car that delivers incredible grip and handling balance while cornering, while still being comfortable to drive on the road,” said David Leone, executive chief engineer GM global programs.  “The perfect weight balance and lower center of gravity were a big part of that goal because it enabled the team to tune for a more comfortable highway ride without sacrificing handling or driver confidence while cornering at the limits.” 

The SS isn't expected to be a big seller but is intended to give Chevy a little more street cred with car enthusiasts.

How are home builders seeing the housing market these days? Pretty much the same as they have since the start of the year.

The National Association of Home Builders (NAHB) /Wells Fargo Housing Market Index (HMI) finds that builder confidence in the market for newly built, single-family homes was virtually unchanged in February with a one-point decline -- to 46.

“Following solid gains over the past year, builder confidence has essentially leveled out and held in the same three-point range over the last four months,” noted NAHB Chairman Rick Judson, a home builder from Charlotte, NC. “This is partly due to ongoing uncertainties about job growth and consumer access to mortgage credit, but it’s also a reflection of the fact that builders are now confronting rising costs for building materials and, in some markets, limited availability of labor and lots as demand for new homes strengthens.”

NAHB Chief Economist David Crowe notes that after rising strongly in 2012, the HMI hit a slight pause in the beginning of this year as builders adjusted their expectations to reflect the pace at which consumers are moving forward on new-home purchases. Still, he says, “The index remains near its highest level since May of 2006, and we expect home building to continue on a modest rising trajectory this year.”

Gauging builder perceptions

Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.”

The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Holding above the critical mid-point of 50 for a third consecutive month, the HMI component gauging current sales conditions fell by a single point to 51 in February. Meanwhile, the component gauging sales expectations in the next six months rose by one point, to 50, and the component gauging traffic of prospective buyers slipped four points, to 32.

Three-month moving averages for each region’s HMI score were mixed in February, with the Northeast up three points to 39 and the West up four points to 55 and the Midwest and South each down two points, to 48 and 47, respectively.

Consumers are expected to continue to keep a watchful eye on their nickels and dimes.

The Deloitte Consumer Spending Index declined again in January for the third consecutive month. The Index tracks consumer cash flow as an indicator of future consumer spending.

“The index is down primarily due to slowing increases of new home prices,” said Patricia Buckley, director, economic policy and analysis, Deloitte LLP, and author of the monthly index. “Looking ahead, gradual improvements in initial unemployment claims and real wages may help the index reverse its course. In the near term however, spending may remain constrained as consumers contend with tax hikes and rising prices at the pump.”

The index, which comprises four components -- tax burden, initial unemployment claims, real wages and real home prices -- fell this month to 3.87 from a reading of 3.93 the previous month.

“Shoppers are taking their annual post-holiday pause and may slow their spending even more as they adjust to higher payroll taxes,” said Alison Paul, vice chairman, Deloitte LLP and retail & distribution leader. “The hit to consumers’ paychecks is likely to be more pronounced among lower- and middle-income Americans who may put household necessities on hold, not just discretionary items. Retailers should hone in on price sensitivity, basket size, and traffic data using analytics to quickly respond with appropriate pricing, assortment and promotions rather than lose a shopper to a more competitive retailer.”

Index highlights

Here's a closer look at the four major components:

• Tax burden: The tax burden fell slightly over the past two months and is just below 11 percent.
• Initial unemployment claims: After rising in November to 405,750 due to Hurricane Sandy, jobless claims fell 11 percent in December to 361,400. On a year-over-year basis, unemployment claims remained relatively unchanged.
• Real wages: With inflation in check, hourly real wages have risen over the past two months to $8.76.
• Real home prices: Home prices continue to rise and are up 12 percent over a year ago, though the pace of increases is slowing.  

There's been real progress over the past couple of decades in the way people with diabetes are handling the disease.

According to a study conducted and funded by the National Institutes of Health (NIH) and the Centers for Disease Control and Prevention (CDC), more people are meeting recommended goals in the three key markers of diabetes control.

The report, published in Diabetes Care, shows that -- from 1988 to 2010 -- the number of people with diabetes able to meet or exceed all three of the measures that demonstrate good diabetes management rose from about 2 percent to about 19 percent. Each measure also showed substantial improvement, with over half of people meeting each individual goal in 2010.

The markers

The measures are A1C -- which assesses blood sugar (glucose) over the previous three months -- blood pressure and cholesterol. They are often called the ABCs of diabetes. When these measures fall outside healthy ranges, people are more likely to be burdened by complications of diabetes, including heart disease, stroke, kidney disease, blindness and amputation.

Despite improvement, the results show continued need for better diabetes control. In particular, young people and some minority groups were below average in meeting the goals.

To gauge diabetes management, researchers analyzed data from the National Health and Nutrition Examination Surveys from 1988-1994 and 1999-2010. “The most impressive finding was the significant improvement in diabetes management over time across all groups,” said Catherine Cowie, Ph.D., the study’s senior author and director of the Diabetes Epidemiology Program at the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK), which conducted and funded the study. “However, we see a lot of room for improvement, for everyone, but particularly for younger people and some minority groups.”

Steady progress

According to 2007-2010 data on Americans with diabetes:

• 53 percent met A1C goals, compared with 43 percent in 1988-1994 data
• 51 percent met blood pressure goals, compared with 33 percent in 1988-1994 data
• 56 percent met cholesterol goals, compared with 10 percent in 1988-1994 data

Improved cholesterol control was likely due to the increase in the use of statins, a type of cholesterol-lowering drug, from about four percent of people with diabetes during 1988-1994 to 51 percent during 2007-2010.

Falling short

Glucose control was worse in Mexican-Americans and in younger adults. Only 44 percent met A1C goals, versus 53 percent of whites and blacks in 2007-2010 data. People between 20-49 years old were less likely to meet A1C goals than older people.

“It is particularly disturbing that good control was seen less frequently in young people,” said Judith Fradkin, M.D., director of the NIDDK Division of Diabetes, Endocrinology, and Metabolic Diseases. “Research has shown that good diabetes control early in the course of disease has long-lasting benefits reducing the risk of complications. For people with long life expectancy after diagnosis of diabetes, it’s especially important to focus on meeting diabetes management goals as early as possible, because with that longer life comes a greater chance of developing complications if they do not control their diabetes.”

“Not only do Mexican-Americans and non-Hispanic blacks have higher rates of diabetes, members of these groups who develop diabetes also have poorer health outcomes,” said the paper’s first author, Sarah Stark Casagrande, Ph.D., an epidemiologist from Social & Scientific Systems Inc., Silver Spring, Md., whose work is supported by NIDDK. “While diabetes control has improved in these populations, some disparities remain, demonstrating the need for improved management of the disease to prevent its devastating complications.”

Setting goals

Goals for A1C, blood pressure and cholesterol must be individualized for people with diabetes, as effects of diabetes can differ depending on a person’s age, type of diabetes, diabetes medications, complications from diabetes and other factors.

For A1C, a goal for many people is below seven percent. It is particularly important for people with long life expectancies to control A1C to protect against eye, nerve and kidney disease in the future. Goals can be less stringent for people with limited life expectancy, since complications develop over time. For blood pressure, the goal for most people is 130/80. Moderate- or high-dose statin therapy is recommended for people over 40 with diabetes, with a goal of keeping the low-density lipoprotein (LDL) -- sometimes called bad cholesterol -- less than 100 milligrams per deciliter. Control of blood pressure and cholesterol are particularly important for lowering cardiovascular risk.

People at risk

About 26 million Americans have diabetes, and another 79 million have prediabetes, a condition that places them at increased risk for developing type 2 diabetes and heart disease. Between 1988 and 2012, the prevalence of diagnosed diabetes has more than doubled, from nearly four percent of the U.S. population to nearly nine percent, according to data from the CDC.

To help people improve their health, the National Diabetes Education Program (NDEP), an initiative of the NIH and the CDC, is working to assist people in making positive, lasting changes to improve their health. NDEP’s Make A Plan tool can help make these changes become part of a daily routine to support people in reaching their health goals. The NIDDK's National Diabetes Information Clearinghouse creates and promotes research-based health information and campaigns for the public. Among many publications, the A1C Test and Diabetes explains how this important test can help with diagnosis and management of diabetes.

While all eyes were on Matthew speeding home to Downton Abbey, Amazon was locking down the butler's pantry and tying up exclusive streaming rights to the blockbuster British soap opera.

Abbeyphiles may find it hard to accept but, quite soon now, they'll not be able to watch missed episodes, or wallow repeatedly in their favorite scenes, on Netflix or on the show's own website.

Amazon Prime already has Seasons 1 and 2 of the series, which airs on PBS in the United States and will have the just-concluded Season 3 beginning in June.

What's perhaps more significant, is that it will have exclusive rights, meaning that it will be the only legal source for Downton streaming. While the first season is still on Netflix, it won't be for much longer. 

"Later this year, no digital subscription service other than Prime Instant Video will offer any seasons,” Amazon smirked.

The series, which for some reason has enormous appeal to Americans nostalgic for a past they never had, will definitely be around for at least one more season and may even go into a fifth season unless the populace comes to its senses before then.

Mirror image

Netflix has been awash in kudos over the success of its "House of Cards," a smash series that is sort of the mirror image of Downton Abbey. Instead of royals and their servants overcoming their baser instincts as they move regally towards equality, justice, love and what have you, House celebrates the drunken, seedy, corrupt and depraved atmosphere that Americans believe prevails in Washington, D.C.

It's a litte hard to tell which of these is the greater fantasy although those who have lived and worked in present-day Washington will tell you that, while the series may be entertaining, it is -- shall we say -- a bit of a stretch. Since no one we know of spent the early 20th Century in an English manor house, we're not able to gauge their opinion as to which series is the most far-fetched.

For those who have been unaware of Amazon's progress towards digital hegemony, the Downton Abbey coup may blow off their blinders. Amazon has been spending big bucks to acquire recent movie releases and TV series and many consumers would say it already has a more compelling, though smaller, catalog than Netflix.

The truth, however, is that the true film or TV addict needs both, since there is going to be less and less duplication as both players strive to cut exclusive deals for top content. Neither service is expensive but as anyone who has read his credit card statement recently will tell you, little things add up.

Netflix describes its price as $7.99 per month for streaming -- $96 a year, in other words. Amazon's streaming service is mostly free, although some top releases carry an extra charge. Amazon prices it at $79 a year, which sounds like a lot more than $7.99 a month.

Of course, if you're still paying attention, you'll know it's actually $16 less per year. 

Not only that, but the $96 a year for Netflix gets you video steaming. Period. The $79 for Amazon Prime gets you video streaming plus free shipping on most Amazon purchases and other goodies from Amazon's vast array of products and services.

Of course, you can still watch over-the-air TV -- you know, Channel 5 and so forth -- for nothing, other than the constant array of commercials  and fund-raisers. This comes as a shocking revelation sometimes and the occasional adolescent will assure you that watching "free TV" must be illegal. You might want to explain it to them someday when you're not polishing the silver or doing backroom deals with Congressmen.  

Whether it's auto, health, life or home, insurance coverage is expensive. If you could know what makes it more expensive, you might be able to save some money here and there.

Lynette of Boca Raton, Fla., said she and her husband have been insured with The Hartford, through AARP, for years. She was shocked when her rate surged.

“Many years with company never a late payment. Never a claim, no tickets, no accidents, clean driving record, no arrests,” Lynette wrote in a ConsumerAffairs post. “And a $600.00 increase! Their commercial says they will never drop you for any reason. But they sure know how to force you out!”

Credit score

Could there be a reason, unknown to Lynette, that caused her rate to rise? Kim Lankford, contributing editor, Kiplinger Personal Finance Magazine and columnist at Kilpinger.com, says there are five factors that may be obvious, or not so obvious, starting with your credit score.

“Insurance companies did studies and found that people with low credit scores were more likely to have claims than people with high credit scores,” Lankford said. “I think that's a big surprise to people because it doesn't seem obvious. It doesn't seem to have anything to do with driving.”

And some people don't think it's fair. It's prompted some states, like California, to impose regulations preventing auto insurance companies from basing rates on credit scores.

Driving record

What's not exactly surprising is that a car insurance company will base rates on your driving record. Pick up a few speeding tickets or get in an accident or two and you could see you auto insurance rates rise. And that's not all. Lankford says you could see an impact on your health insurance rate.

“When you think about it, when people get in a lot of accidents they can get hurt,” Lankford said. “Some health insurers will actually reject people if they've had a DUI in the last five years.”

The kind of car you drive is also going to make an impact on your auto insurance rates. In general, a four-cylinder car is less costly to insure than a six- or eight-cylinder car.

“Insurance companies are all looking at the claims different cars produce,” Lankford said. “They're slicing and dicing it in various ways, looking at the correlations between car models and claims.”

House history

Where you live will make a difference in your homeowners insurance rate. If you live in a part of the country prone to hurricanes, for example, you'll pay very high rates – assuming you can even get insurance. If you live in the country, far from a fire station, your homeowners insurance rates will be higher than if you live in a city.

But here's something you might not know. Your house's claims history – claims that were made before you moved in – will also affect your rates.

“This kind of makes sense, because if the house has problems that keep resulting in claims the insurance company is going to be concerned that that kind of thing is going to continue to happen and cost them a lot of money,” Lankford said, “So they're not just looking at your personal claims record but claims on the house.”

Co-workers can affect you

And speaking of things beyond your control, your health insurance rates will be affected by the age and health of your co-workers, especially if you work for a small company.

If you've been working at a tech start-up with a lot of young, healthy people, then your health insurance rates have been based on those demographics and they've probably been relatively low. But go to work where most employees smoke and are in their 50s and you'll face higher premiums.

In the end, it's a numbers game. Actuaries at insurance companies spend their entire careers looking for tiny statistical nuances that can predict the likelihood that someone will file a claim — and that can justify charging a higher premium. Knowing what those factors are may help you make smarter decisions.

Prices at the gas pump continued their upward climb, although double digit weekly spikes have eased.  Gas prices have climbed every day for the past 29 days, climbing 7 cents this week to a national average of $3.64 per gallon on Friday.

In the past month, prices have jumped 35 cents and since February 1 prices have increased 18 cents.  The national average price remains 12 cents above year ago prices, making prices the most expensive ever for this time of year.

It comes at a bad time for consumers. Many have just taken a big hit in their take-home pay, thanks to the end of the payroll tax holiday. Many are also facing high home heating bills during a winter that's delivered some pretty severe weather. And many others are worried about what looming government budget cuts may mean to their jobs and the economy.

When will it end?

Well, believe it or not, the federal government says it should end sometime this year. In its Short-Term Energy Outlook (STEO) report, the Energy Information Administration (EIA) says it expects that falling crude prices will contribute to a decline in the national annual average regular gasoline retail price from $3.63 per gallon in 2012 to $3.55 per gallon in 2013 and $3.39 per gallon in 2014.

But while that's a long-term decrease, it's still about 11 cents per gallon and 4 cents per gallon higher than the EIA forecast last month. In other words, prices may start falling one of these days but they may not fall as much as had been expected.

Crude oil prices are the biggest factor in determining gas prices, since crude oil makes up nearly 70 percent of a gallon of gasoline. They have  continued to hover in the $95 to $97 per barrel price range over the last week.

In addition to the price of crude oil, gas prices have also been affected by seasonal maintenance work at refineries, temporarily reducing gas supplies, and financial market speculation, where investors believe demand for oil will rise which further inflates prices.

National AAA average prices

The smartphone is not just a trend in technology. Over the last couple of years it has become an emerging trend in healthcare.

For example, there are apps to help you lose or control weight. The Eatery app allows users to take pictures of each meal and provides feedback in terms of how those meals are contributing to overall weight gain or loss. 

The app also lets you know what specific foods are blocking ou from reaching your dietary goal and points out the times of day that seem to challenge you the most when it comes to eating better.

In January we reported on a new smartphone app called UMSkinCheck, one of several apps that claim to be adept at identifying dangerous skin conditions. The smartphone app was created by the University of Michigan’s Health System and it lets users snap photos of a mole or lesion that could be cancer or could become cancerous over time. 

The National Cancer Institute (NCI), part of the National Institutes of Health (NIH), is leading an initiative to help teens quit smoking through the use of a smartphone app. Developed by smoking cessation experts, SmokefreeTXT is a free text message cessation service that provides 24/7 encouragement, advice, and tips to teens trying to quit smoking. 

Like an electronic diary

“Smart phones are a great way for people to track how their daily activities impact their health,” said Aaron Michelfelder, MD, a physician at Loyola University Health System and professor in the Department of Family Medicine at Loyola University Chicago Stritch School of Medicine. “They give patients instant access to the effects their habits have on daily living, and they are better able to make connections between what they do and how they feel.”

Some health apps are more useful than others. In Michelfelder's book, the most beneficial apps are for people needing to monitor blood sugar and blood pressure, mood tracking and asthma as well as fitness and nutrition.

“People who are detailed and willing to truly keep track of their data find them the most beneficial,” Michelfelder said. “It’s great that they can see right away I had such and such for dinner and this is how it impacted my blood sugar.”

Aiding doctors

These apps don't just help consumers. Michelfelder says they can also help the consumers' physicians to better treat their patients, providing a more well-rounded view of their health. He says he's actually benefited from that.

“I love when my patients bring their smart phone to a visit and show me their data or even email me in advance,” Michelfelder said. “This real-time data helps me better analyze a patient’s health than just the information I get from an office visit. This way instead of maybe having two blood pressure readings, I’ll have 25. This allows me to have a more in-depth conversation with the patient about where to go next.”

Some health researchers have raised concerns that consumers will put too much faith in their health apps and might overlook real health problems. Michelfelder says that's a legitimate concern. There can be other issues too.

Security issues

For example, the apps might not be compliant with the Health Information Privacy and Accountability Act that protects patients’ health information.

“This is especially true for apps that allow you to email your medical information,” he said.

Michelfelder says patients should carefully read an app’s terms and agreements to ensure a copy of the email is not being sent to the company and that personal medical information is not being stored in an unsecure location. Also, make sure the medical apps are password protected.

As for reliability, Michelfelder agrees that patients should never use apps for self-diagnosis. One the the biggest benefits, he says, is getting young people – who tend to be more tech-savvy, to take an active interest in health issues.