Current Events in April 2013

Editor's note: We are aware of unconfirmed reports that the plaintiffs in this case were flying as non-revenue passengers. However, the lawsuit, which is the basis of our story, alleges that they "purchased" their tickets. The facts will be sorted out by the court, not by uninformed rumors and third-hand comments on social media. We report, the court decides.

Two black men say US Airways told them they had to remove their baseball caps, change from jeans to slacks and put on button-up shirts if they wanted the airline to honor their first-class tickets.

Not wanting to be sent to the back of the plane for the Denver-to-Los Angeles via Phoenix flight, MacCraig Warren of Compton and Miles Warren of Long Beach agreed to change.

But while Miles Warren was in the men's room changing, he says he spoke to a white passenger, Michael Heffernan, who was also wearing jeans and a hooded sweatshirt. Heffernan expressed fear that he would also be denied his seat in first class.

It's OK for whites?

But when the Warrens boarded, there sat Heffernan. In first. Wearing jeans and a hoody.

"Much to plaintiffs' amazement, Heffernan was sitting in first class wearing jeans and a hooded sweatshirt, not the 'required' slacks and button up shirt," according to the complaint.

Heffernan was traveling with his Filipino friend,  Edward DeLeon, who was dressed in rolled-up jeans, no socks and a hooded sweatshirt, according to the complaint.

In a federal court lawsuit, the Warrens charge that US Airways unlawfully discriminated against them because of their race in the August 2012 incident, Courthouse News Service reported.

Besides legal costs and damages, the Warrens want US Airways enjoined from hounding blacks out of first in the future.

A study finds high levels of lead and other heavy metals in imported rice, posing a potentially serious health threat, especially to infants and children.

The same study, presented at the American Chemical Society annual meeting in New Orleans, also found high lead levels in some baby food. 

The good news is that most rice consumed in the United States is grown here, but  Tsanangurayi Tongesayi, Ph.D., who headed the analysis of rice imported from Asia, Europe and South America, said that imports of rice and flour are increasing despite the vast rice fields in Louisiana, California, Texas, Arkansas and Mississippi.

“Such findings present a situation that is particularly worrisome given that infants and children are especially vulnerable to the effects of lead poisoning,” Tongesayi said. “For infants and children, the daily exposure levels from eating the rice products analyzed in this study would be 30-60 times higher than the FDA’s provisional total tolerable intake (PTTI) levels.”

Tongesayi’s team, which is with Monmouth University in N.J., detected the highest amounts of lead in rice from Taiwan and China. Samples from the Czech Republic, Bhutan, Italy, India and Thailand had significantly high levels of lead as well. 

Because of the increase in rice imports into the United States, Tongesayi said that rice from other nations has made its way into a wide variety of grocery stores, large supermarket chains and restaurants, as well as ethnic specialty markets and restaurants.

After rising in the first two months of the year, the Producer Price Index (PPI), for finished goods fell a sharp 0.6%. Economists surveyed by Briefing.com were calling for an increase of 0.1%

Figures released by the Labor Department show the decline was led by a 3.4% plunge in energy costs, thanks largely to a 6.8% drop in the prices of gasoline. Lower prices for diesel fuel and home heating oil also played a part.

Food prices -- on the other hand -- rose 0.8%, the sharpest advance since a 1.1-percent rise in November 2012. Costs for fresh and dry vegetables were major factors with a surge of 21.5%. Higher prices for strawberries also contributed to the overall increase in food prices.

The core rate of inflation, which strips out the volatile energy and food components,rose 0.2% for the third consecutive month.

The full PPI report can be found on the Bureau of Labor Statistics website. 

Retail sales

In a separate report, the Commerce Department said retail sales were down 0.4% in March, surprising analysts who had expected sales to be flat. At the same time, the government made a slight downward revision in it's February estimated -- to an advance of 1.0% from its previous report of a gain of 1.1%.

The biggest sales decline last month -- 2.2% was at gasoline stations, followed by dips of 1.6% at electronics and appliance stores and 1.2% at department stores. Grocery store sales were unchanged.

For more information, check the Commerce Department website.

If you happened to be flying in or out of Charlotte, N.C, in mid-February, it's probably an experience you won't want to repeat any time soon,

According to the U.S. Department of Transportation (DOT), there were 34 tarmac delays of more than three hours on domestic flights. All of them occurred on February 16 and involved flights departing from or arriving at Charlotte International Airport, where a snowstorm pounded the area.

Additionally, the delays involved US Airways or its code share partners and are under investigation by the Department.

Meanwhile, DOT reports there were no tarmac delays of more than four hours on international flights in February.

The DOT's ’s Air Travel Consumer Report, which also includes data on on-time performance, cancellations, chronically delayed flights and the causes of flight delays, can be found here.

Solar energy as a power source has become controversial in recent years. In the 1970s it had something of a “hippie” reputation. More recently, it has actually become a partisan issue.

Republicans have accused the Obama Administration of "crony capitalism" for backing government loans to solar company Solyndra, which later went bankrupt, owing the taxpayers millions. The GOP has consistently hammered Obama for favoring solar and other renewable energy enterprises over more traditional fossil fuels.

But the U.S. isn't alone in pushing energy from the sun. Germany, China and Japan have been leaders in backing solar as well. Is it a good bet or simply a pipe dream?

Rugged individualists

There is no question that the idea of solar energy has a lot of appeal, especially to individualists. If you want to unhook from the grid or simply live in a country less dependent on hostile energy sources, you probably look forward to a day when solar is a viable, mainstream energy source. Debates over the government's role in its development aside, the solar industry appears to be making some progress.

Though the company is still losing money, First Solar is a popular stock on Wall Street. It's had its ups and downs but Susquehanna Financial Group recently increased its price target from $28 to $40, based on the company's book value and future earnings potential.

First Solar provides solar energy components as well as complete solar systems. It sells products to investor-owned utilities, independent power developers and producers, commercial and industrial companies, and other system owners.

First Solar and its competitors produce photovoltaic cells that turn sunlight into electricity, collecting sunlight with large panels made up of hundreds of cells. The problem with that, of course, is that it takes a lot of cells, collecting a lot of sunlight, to produce meaningful amounts of electricity.

Too much cost, too little power

Critics complain that solar will never be practical because it simply costs too much to produce the systems and that they will never pay for themselves. They also point out that it requires a lot of energy, usually from fossil fuel, to produce the photovoltaic cells.

But researchers at Stanford University, not known as a haven for hippies or malingerers, point out that solar production has recently made strides in that area. They estimate that, for the first time since solar production kicked into high gear, the electricity generated by all of the world's installed solar photovoltaic panels probably eclipsed the amount of energy needed to make the cells, sometime in 2012.

That might seem a small accomplishment, but it has been a major threshold that some believe has been holding the industry back.

"This analysis shows that the industry is making positive strides," said Michael Dale, a Stanford researcher. "Despite its fantastically fast growth rate, photovoltaic is producing – or just about to start producing – a net energy benefit to society."

Huge energy requirements

Part of the problem with making solar practical is the intense energy needed to produce solar panels. For example, silica rock must be melted at about 3,000 degrees Fahrenheit. That's a lot of energy.

But producers continue to find more efficient ways to produce solar cells. The silicon wafers are now thinner and the process uses less highly refined materials.

Passionate debate

Still, the energy source remains a subject of passionate debate, even in forums and comments sections on news stories on the subject. In comments about one recent solar story a poster going by “Bannor” answered critics who doubted solar's value by pointing to what he sees as a distinct advantage.

“In many places, daytime energy costs are MUCH higher, where the afternoon peak demand might drive utility prices up five or 10 times above normal,” he wrote. “This is usually when solar produces best so it very effectively reduces the need for expensive peaker plants, which typically create the most emissions per unit energy.”

And to solar advocates, that remains its enduring appeal. It's the Holy Grail of power sources – clean, natural and there day after day. And even if it never provides a major portion of an area's power needs, if it can cost-effectively provide a portion, that may be enough.

According to the New York Times, some energy producers have taken that approach. They've incorporated solar into the production of traditional energy sources, using it to increase the energy content of natural gas, and boil water to power steam turbines, a task once performed by coal.

Chrysler is recalling 6.143 model year 2013 Dodge Ram 2500 and 3500 trucks manufactured January 7, 2013, through March 6, 2013.

The engine cover may trap an excessive amount of heat under the cover, which could result in an under hood fire.

Chrysler will notify owners, and dealers will replace the existing engine cover with one that is a different design, free of charge. The recall is expected to begin during May 2013.

Owners may contact Chrysler at 1-800-247-9753. Chrysler's recall campaign number is N19.

By now you’ve probably seen the footage.

It shows Coach Mike Rice—Rutgers head basketball coach—shove his players, kick them, yank their jerseys and throw basketballs at their heads at close range.

As a result, Rice was eventually fired and Rutgers Athletic Director Tim Pernetti resigned a little after the scandal went national.

Upon viewing the disturbing footage, it was apparent that Rice went way beyond a coach’s normal level of yelling and screaming, but that’s just the beginning.

It was also clear that Rice committed the ultimate betrayal between player and coach, teacher and student and trainer and trainee, by using his power to get the players to buy into a system of abuse and mistreatment.

By using both physical and verbal abuse, Rice wasn’t only able to control his players, but he used that control to make sure the abuse was kept behind gym doors for years, as it wasn’t until recently that Rutgers President Robert Barchi said he saw the actual footage.

Through Barchi’s own admission, he decided to view the tape for the first time after the scandal went national, although he heard of the abuse much earlier.

Why Barchi simply didn’t pop in a DVD of Rice abusing his players when he first learned of the abuse is beyond understanding, many say, as one would assume a claim so serious would warrant at least 15 minutes of Barchi’s time to view the details of what happened.

Makes parents wonder

Perhaps another thing the Rutgers scandal did was it made parents think about their own children and the coaches they deal with, because according to Craig Sigl, expert sports trainer for youth and adult athletes at Mental Toughness Academy, this type of abuse happens with kids of all ages, not just the older ones.

“Parents need to get the lesson that this kind of derogatory behavior happens at all levels of sports and that they need to ask their kids directly if they experience it and take action if they do,” said Sigl in an interview with ConsumerAffairs.

“Too many parents put their head in the sand about it thinking, ‘Well, it’s toughening him or her up for the real world.’ "

"I work daily with kids who have experienced this kind of emotional abuse and it affects them tremendously. To be sure, some kids are not affected and handle such coaches just fine, but you can’t know if your kid's one of those or not,” he said.

“Parents often make the logical mistake of thinking that a tough coach or parent worked for them and so it should be good for their kids just the same," Sigl adds. "But kids are not miniature versions of their parents; they are unique individuals with a completely different makeup than anyone else.”

How to tell

But how can parents differentiate between the coach who’s tough and may yell a little and the coach who steps over the line? There’s a clear way to tell, Sigl says.

“Coaches can be aggressive, loud and tough and be very effective without being emotionally abusive,” he explains.

“For example, an abusive coach tears down a player with yelling and screaming. A coach interested in getting more effort and attention from a player could yell or scream or be aggressive with words like these: ‘Jones, I know you are a great player and you are so close to your greatness and I know you want to see that.’ "

Or, ‘There is more hustle in you right now than you are giving. Show the team how bad you want your success.”

In addition, Sigl says coaches should place a focus on hard work and getting their athletes to perform to maximum potential. Letting players know they’ll sit on the bench and be replaced by a harder worker if they’re not trying, is often all the encouragement they need.

Obviously, this brand of toughness in a coach is vastly different from showing aggression just to prove authority.

“It’s totally fine for a coach to be passionate and raise a voice if that’s the style,” says Sigl. "It’s the intention behind yelling and screaming that matters. Coaches will get more out of their athletes by inspiring them than tearing them down.”

Sigl pointed to a quote from the legendary former UCLA basketball coach John Wooden about using yelling as a coaching technique: “I never yelled at my players much,” Wooden was quoted saying. “That would have been artificial stimulation which doesn’t last very long. I think it’s like love and passion. Passion won’t last as long as love. When you are dependent on passion, you need more and more of it to make it work. It’s the same with yelling.”

But sometimes, abuse of players by a coach doesn’t always come in the obvious form of verbal or physical abuse, so both parents and athletes need to be aware of other signs too, says Sigl.

 Like “When a coach shows bias toward the better players with regards to praise and encouragement,” he says.

“A smart coach works to boost up his weakest players. A coach who shows with words or body language approval or disapproval based on performance in the games is a coach who does that even more in practice when the parents aren’t looking.”

Another attribute of a good coach Sigl notes, is one who has the people skills and interest to learn their players' personalities, because by doing so, they’ll know how to reach the entire team and each individual member of the team at the same time.

Flexibility is key

“Athletes have told me consistently that knowledge of the game gains the most respect from them. I would say that flexibility is the most important attribute of a coach,” says Sigl.

“Meaning, one-size-fits-all coaching method on every player ends up wasting talent. Each player is different and responds to different motivation. The best coaches learn about people and continually seek to understand the personalities of the players."

"They know that the athlete isn’t just a sports machine and what happens to them off the court or field affects their play on the field. A great coach supports the player in all areas of performance.”

And for those parents wondering how they can provide tips for their child without interfering with what the coach is teaching, Sigl says to first speak to the coach.

Furthermore, parents should ask their child if they even want to be instructed outside of practice and games, because they may not want to and that’s okay, Sigl writes in a free ebook, “The 10 commandments for a great sports parent.”

“Basically, parents need to ask the child if he or she would like tips on their sport and when they would like them,” Sigl advises. “When giving tips, the parent should just ask the child if this is any different than what the coach teaches and how it’s different.”

“The parent can certainly go to the coach and ask about the methodology," Sigl adds. 

"Then make a decision on whether or not to go forward. There is plenty of coaches teaching methods that don’t work for every athlete and it’s the parent’s right to decide what they want their child to learn.”

“Parents need to be in charge of their child’s upbringing but also need to be self-aware that they don’t have all the answers either. In other words make informed decision about your child’s sports participation and don’t just assume you know best without knowing all of the facts,” Sigl concludes.

Four Japanese automakers are reportedly recalling more than 3 million vehicles to deal with problems involving airbags.

Honda says it's recalling approximately 426,000 model-year 2001-2003 Civic vehicles, 43,000 CR-V vehicles from the 2002-2003 model years and about 92,000 model-year 2002 Odyssey vehicles in the United States to replace the passenger front airbag inflator.

It's possible that the inflators in the vehicles may deploy with too much pressure, which may cause the inflator casing to rupture and could result in injury. Honda says there has been one crash in which a passenger front airbag deployed with too much pressure, causing the casing to rupture, but the company says it is not aware of any injuries or deaths related to the issue.

The company is encouraging owners of the affected vehicles to take them to an authorized dealer as soon as they receive the recall notification, which will be mailed to customers will begin in late May.

Owners will be able to determine if their vehicles require repair by going to www.recalls.honda.com or by calling (800) 999-1009, and selecting option 4.

Toyota

Toyota is recalling approximately 170,000 front passenger airbag inflators installed in several vehicle models.

The vehicles involved include certain Toyota Corolla, Corolla Matrix, Sequoia, and Tundra, and Lexus SC 430 models manufactured from 2001 – 2003. More precise vehicle information is being developed, but about 510,000 vehicles may have to be inspected to locate the suspect inflators.

Owners will receive an owner notification letter by first class mail. The remedy will involve inspection of the front passenger air bag, and, if it is equipped with an affected inflator, the inflator will be replaced with a newly manufactured one at no charge to the owner.

For more information customers should go to www.toyota.com/recall, or  1 800-331-4331, www.lexus.com/recall or 1 800-255-3987).

Nissan and Mazda

Two other companies -- Nissan and Mazda -- are also recalling models for the same reason but details have not yet been released by the companies.

The New York Times reports Nissan is recalling 480,000 vehicles and that 45,000 Mazdas are involved.

There has been no comment at this point from the latter two automakers.

If you are worried about online marketers gathering and selling your personal data, so they can more effectively sell you things, you might be pleased to know that there are federal and state efforts underway to rein in the process.

Previous efforts have fallen fall short. Advocates think growing awareness among consumers of privacy issues now strengthens their hand.

In Congress, Sen. Jay Rockefeller (D-WV), Chairman of the Senate Commerce, Science, and Transportation Committee, is pushing a measure that would give consumers the power to control their personal information and allow them to block online companies from collecting the data and selling it.

Rockefeller tried the same thing in 2011 but the measure died from a lack of support and effective lobbying by the Internet and advertising industries. He reintroduced it in February, believing there is a growing consumer backlash against data collection efforts.

Do Not Track

Rockefeller's Do Not Track Online Act would provide consumers the ability to opt out of having their online activities tracked by Internet companies. It would be the online equivalent to the Do Not Call list, that has effectively stopped telemarketers from interrupting the dinner hour.

In California, a Democratic Assemblywoman, Bonnie Lowenthal of Long Beach, has introduced a similar privacy measure. It would update California's laws covering the collection of data and privacy issues to include a broader definition of personal data. Her proposed legislation would also make it easier for consumers to prevent Internet companies from collecting personal data.

"Today, our personal data is everywhere – we share it when using mobile phone apps, search engines and websites like Facebook and Twitter,” Lowenthal said. “Companies buy and sell it for profit. As technology advances, so should our consumer protections."

Lowenthal's Right To Know Act would require Internet companies to tell consumers what information they have collected and who they've shared it with.

Under current California law, consumers have the right to ask businesses how they are using their personal information and what data they have collected. But there are limits – consumers may only learn how the information is being used for direct marketing purposes.

What's at stake

Privacy advocates say there is more than a creepy invasion of privacy at stake here. They say some people have lost jobs and been denied mortgages when businesses shared information that turned out to be wrong.

Lowenthal's bill would expand definitions, including sensitive data, location, buying habits and sexual orientation among the information that could not be collected or shared without the consent of the consumer.

California is home to a number of large Internet companies and it can be assumed they are viewing this legislative trend with growing alarm. The Wall Street Journal reports an Internet industry coalition, including the trade groups Internet Alliance, TechNet and TechAmerica, are lining up in opposition to Lowenthal's bill.

If California were to adopt tough privacy standards, it's likely Internet companies would have to implement them nationwide. Rockefeller's bill, assuming it is eventually passed into law, would actually implement an even tougher set of requirements, allowing consumers to opt out of data collection in the first place.

If consumers ask not to be tracked, Rockefeller's measure would severely limit what information could be collected. Companies could only gather data necessary for the site to function properly. Then, they would be required to destroy the data once it isn't needed any more.

Industry on defense

Ad Week, a trade publication for the advertising industry, reports marketers are taking nothing for granted, even though they have successfully beaten back consumer privacy attempts over the last two years. The Direct Marketing Association, a trade group that represents some online advertisers, says Online Behavioral Advertising (OBA), which collects anonymous user data, is a benign practice that helps the consumer.

“Imagine that you are online and you visit five different sports websites and then a news website,” the group said in an explanation on its website. “You might see a sports ad on the news site, even though you’re reading about fashion. You’re served that ad because your online behavior suggests you’re interested in sports.”

But these arguments may not sway Rockefeller, who is not running for re-election and doesn't have to worry about stepping on toes on his way to retirement. Whether enough other lawmakers feel the same remains to be seen.

The Federal Trade Commission (FTC), meanwhile, continues to enforce existing laws governing online data collection. In March the FTC reached a settlement with Compete, Inc., over charges the company failed to adopt reasonable data security practices and deceived consumers about the personal data its toolbar and survey panel collected.

The agency charged Compete with deceptive practices for claiming that the data it kept was anonymous when in reality it was not. Compete has agreed to obtain consumers' consent before collecting any data through its software, to delete personal information already collected, and to provide directions for uninstalling its software – in effect following practices called for in proposed legislation in Washington and Sacramento.

Coffee does a lot of good things, starting with keeping us awake. But scientists at an American Chemical Society meeting in New Orleans say coffee, especially unroasted coffee, may also help us prevent type 2 diabetes and even help us lose weight.

That's because coffee contains high leels of chlorogenic acids, a family of substances that occur naturally in apples, cherries, plums, dried plums and other fruits and vegetables. Roasting reduces the effectiveness of the substances but Joe Vinson, Ph.D., said the chlorogenics could be extracted and taken as a supplement.

“A simple natural pill or capsule that would both help control blood sugar and foster weight loss at the same time would be a major advance in the treatment of type 2 diabetes,” Vinson said. “Our own research and studies published by other scientists suggest that such a treatment may, indeed, exist. There is significant epidemiological and other evidence that coffee consumption reduces the risk of type 2 diabetes."

“One large study indicated a 50 percent risk reduction for people who drank seven cups of coffee a day compared to those who drank only two cups a day," he said. "I am trying to make the coffee and diabetes story as clear as possible for the public. The evidence points to chlorogenic acids as the active ingredients in coffee that both prevent diabetes and improve glucose control in normal, pre-diabetic and diabetic people.”

Major health problem

Type 2 diabetes, the most common form of diabetes, is an increasing global health problem. In the United States alone, almost 26 million have the disease.

Vinson, who is with the University of Scranton in Pennsylvania, pointed out that coffee ― due to its popularity as a beverage ― is a major dietary source of these substances. Large amounts of chlorogenic acids exist in green, or unroasted, coffee beans but the high temperatures used in roasting breaks down much of the chlorogenic acids.

Thus, Vinson's focus has been on using concentrated extracts of green coffee beans, which contain higher amounts of chlorogenic acids.

In a previous study, Vinson found that overweight or obese people who took such an extract lost about 10 percent of their body weight in 22 weeks. A follow-up study involving 56 men and women found the coffee extract "produced a significant reduction in blood sugar relative to the original blank glucose challenge."

Vinson acknowledged funding from Applied Food Sciences, Inc., which markets a green coffee antioxidant product.

Businesses that use vehicles, or provide them for employees, often lease them instead of buying them. There are some tax advantages to doing that and often, the paperwork is a lot simpler.

But there are tax advantages for consumers who lease cars too. Most states, for example, charge sales tax on leased cars in a different way than cars purchased outright.

“In most states, you are paying tax only on the amount of the vehicle you use as opposed to the entire vehicle,” said Scot Hall, Executive Vice President Operations of Swapalease.com, a company matching consumers who want to assume someone's lease with consumers who want to get out of their lease. “Even if a business were not involved, I would argue that there are tax benefits from leasing.

Here's an example. Let's assume the vehicle cost $25,000. That's the gross capitalization cost. Next, let's assume you paid $2,000 of that in cash. That leaves the net capitalization cost at $23,000.

Residual value

What will the car be worth at the end of the lease? That's the residual value, and in this case, let's assume it is $14,820. Your monthly payment is based on the difference between the net capitalization cost – $23,000 – and the $14,820 at the end of the lease.

Instead of paying sales tax in a lump sum payment at the time you purchase the vehicle, the sales tax in a lease arrangement is rolled into the monthly payment. And it's usually less than if you were purchasing the automobile.

“In most states, of course, how taxes are set on automotive leases in individual states will vary a little bit, you will be paying less tax when you lease as a consumer, whether you are set up as a business or not, as opposed to what you would pay if you were purchasing that vehicle,” Hall said.

Federal tax breaks

What about your federal taxes? If you operate a business and need a vehicle, you may find that leasing it yields more of a tax break than owning it. Record-keeping might also be a bit easier.

“With most leases you are able to write off a larger amount of the payment, if not the entire payment,” Hall said. “Assuming the vehicle is used for 100% business purposes, in most instances the full lease payment could be written off on a monthly basis as an expense. If they were purchasing the vehicle, they would have to set up a depreciation schedule, and typically that would be at a reduced expense level. That would keep them with a higher tax liability, at least in the short term.”

When you buy a vehicle and depreciate it on your taxes, the Internal Revenue Service (IRS) pays attention to what kind of vehicle it is. According to TurboTax, tax laws squeeze otherwise allowable depreciation deductions for vehicles that fall into the class of “luxury cars.” And the government has a much lower threshold of what it considers “luxury car” than you might have.

Leasing may be simpler

At any rate, the computations required for a purchased vehicle are, by and large, more complex than for leased autos – even ones not used exclusively in business.

“If a vehicle is used on a part-time basis for a business, it can usually be written off on a percentage basis,” Hall said. “For example, if the car were used half the time for business purposes it would allow you to write off half the monthly lease payment.”

Hall says it's always wise to check with your accountant or whoever handles taxes to make sure that what you want to do is something you can do.

If you are considering a new car purchase you may have noticed the TV ads with a lot of very attractive lease offers. In nearly every case, the monthly cost of a lease is going to be considerably less than a purchase, and the lease's structure – requiring you to only pay for the value of the car you are using – is mostly responsible.

“Cars are holding their value better and the better a car holds its value, the higher the residual value will be at the end of the lease, the higher the residual value, the lower the principal for the consumer,” Hall said.

But just as though you were purchasing the vehicle, it only becomes a good deal if you negotiate it that that way. Many consumers don't realize that a dealer will negotiate a lease, just as they would a sale. To dealers, there's very little difference. The consumer should view it the same way, and that means not paying so much attention to the monthly lease payment, but what the dealer is willing to sell it for.

A surprising drop in the number of people applying for first-time state unemployment benefits last week.

The Labor Department reports there were 346,000 initial claims on a seasonally-adjusted basis in the week ending April 6 -- down 42,000 from the previous week's figure of 388,000, which was revised upward by 3,000.

Economists at Briefing.com were calling for a total of 355,000, while the market expectation was 365,000.

Welcome news

Mark Hamrick, the Washington bureau chief at Bankrate.com, calls the news that new claims for unemployment insurance dropped sharply, "welcome, particularly after the worrisome monthly jobs report released last week by the Labor Department." Hamrick says the claims report helps allay fears that the job market is slowing abruptly, but adds, "we need to see more information."

While it's encouraging that layoffs are not accelerating, Hamrick says, "it would be more welcome for jobseekers and others if we see a signal that hiring is picking up more briskly."  

The 4-week moving average, which many economists consider a more accurate gauge of the labor market, rose 3,000 -- to 358,000. At the same time, the previous week's average was revised slightly higher -- to 355,000.

The full report is available at the Labor Department website. 

Just when you thought you might finally be able to buy that new home, or sell your old one, here comes a dose of reality

With wages dropping or stagnating, homes have gotten more expensive in many areas -- a result of the rebounding real estate market, according to Zillow, an online real estate marketplace.

Before the housing bubble, home buyers spent 2.6 times their median annual income -- on average -- on the purchase price of a typical home. However, through the end of last year, buyers across the country were spending three times their annual incomes. In other words, consumers bought homes that were 14.5% more expensive relative to their incomes than during the pre-bubble period.

Shelling out more

Homeowners in 24 of the 30 largest metros covered by Zillow were paying more for homes in the fourth quarter of 2012 relative to their region's median income than they were from 1985 through 1999. Metros with the largest difference between their pre-bubble and fourth quarter 2012 price-income ratios included San Jose (52.1% more), Los Angeles (48.8% more), Portland, Ore., (45.4% more), San Diego (44.6% more) and Denver (40.8% more).

Of the 30 largest metros covered by Zillow, only Cincinnati (3.1% less), Chicago (3.9% less), Cleveland (6.7% less), Atlanta (13.9% less), Las Vegas (14.6% less) and Detroit (25.5% less) posted price-income ratios in the fourth quarter of 2012 that were less than historic norms.

Rate-dependent

"The days of historically high levels of housing affordability are numbered," said Zillow Chief Economist Stan Humphries. "Current affordability is almost entirely dependent on low interest rates, and there's no doubt that rates will begin to rise in the next few years. This will have an undeniable effect on demand for housing, as home buyers will have to spend more of their incomes to buy a home.

Humphries says home values will have to either remain stagnant while incomes catch up or -- quite possibly -- home values will have to fall in some markets. “This will especially be the case,” he adds, “in some markets that have seen strong home value appreciation.”

Formosa Food Company of Hull, Iowa, is recalling approximately 1,133 pounds of a pork jerky product because of misbranding and an undeclared allergen -- wheat -- which is not declared on the label. There have been no reports of adverse reactions due to consumption of this product.

The following product is subject to recall:

• 16-oz. individual packages of “Formosa Brand Pork Szu (Cooked Seasoned Dried Pork Product)”

The product bears the establishment number “EST. 2446” inside the USDA mark of inspection on the label and was produced on various dates through Nov. 29, 2012. There is no expiration date on the product, which was distributed via Internet and direct sales nationwide.

Anyone with questions should contact Plant Supervisor Jennifer Shih at (712) 439-1065.