Current Events in July 2013

New home construction hit the skids last month.

According to government figures, housing starts in June were down 9.9% from May at a seasonally adjusted annual rate of 836,000. As disappointing as that is, construction during the month was still 10.4% above the pace recorded the year before.

Construction of single-family homes was down 0.8% from the month before.

Looking ahead, things aren't likely to get much better. Building permits for privately-owned housing units dropped 7.5% to a seasonally adjusted annual rate of 911,000.

Mortgage applications

Separately, the Mortgage Bankers Association (MBA) reports mortgage applications were down 2.6% for the week ending July 12. Refinancings dipped 4% from the previous to the lowest level since July 2011.

In addition, the refinance share of mortgage activity decreased to 63% of total applications -- down 1% from the previous week to the lowest level since April 2011.

Builder confidence

Earlier this week, the National Association of Home Builders  (NAHB) reported builder confidence in the market for newly built, single-family homes rose six points -- to 57, the third consecutive monthly gain and the strongest reading since January of 2006.

“Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten,” noted NAHB Chief Economist David Crowe. “Meanwhile, as the infrastructure that supplies home building returns, some previously skyrocketing building material costs have begun to soften.”

All four regions of the country posted gains, with the Midwest leading the way with an advance of 8 points. The South reported a 5-point gain, the Northeast was up 4 points and the West picked up 3 points.

A new test for attention-deficit/hyperactivity disorder (ADHD) is about to hit the market.

The U.S. Food and Drug Administration (FDA) has decided to allow marketing of the Neuropsychiatric EEG-Based Assessment Aid (NEBA) System for use in children and adolescents 6 to 17 years old.

The agency says that when used as part of a complete medical and psychological examination, the NEBA System can help confirm an ADHD diagnosis or a clinician’s decision that further diagnostic testing should focus on ADHD or other medical or behavioral conditions that produce symptoms similar to ADHD.

The device is based on electroencephalogram (EEG) technology, which records different kinds of electrical impulses (waves) given off by neurons (nerve cells) in the brain and the number of times (frequency) the impulses are given off each second.

How it works

The NEBA System is a 15- to 20-minute non-invasive test that calculates the ratio of two standard brain wave frequencies, known as theta and beta waves. The theta/beta ratio has been shown to be higher in children and adolescents with ADHD than in children without it.

“Diagnosing ADHD is a multistep process based on a complete medical and psychiatric exam,” said Christy Foreman, director of the Office of Device Evaluation at the FDA’s Center for Devices and Radiological Health. “The NEBA System along with other clinical information may help health care providers more accurately determine if ADHD is the cause of a behavioral problem.”

ADHD is one of the most common neurobehavioral disorders in childhood. According to the American Psychiatric Association, 9% of U.S. adolescents have ADHD and the average age of diagnosis is 7 years old. Children with ADHD have difficulty with attention, hyperactivity, impulsivity and behavioral problems.

NEBA Health of Augusta, Ga., manufactures the NEBA System.

Sears, Roebuck and Co., and Kmart Corporation, of Hoffman Estates, Ill are reissuing a recall first published in August 2012 for about 795,000 Kenmore dehumidifiers.

The dehumidifiers can overheat, smoke, melt and catch fire, posing fire and burn hazards to consumers.

In addition to a low consumer response rate, Sears says there have been seven additional incident reports of shorting and fire associated with the dehumidifiers. Incidents involved a severe burn to a consumer’s foot, and three fires resulting in more than $300,000 of property damage.

This recall involves Kenmore brand 35-, 50- and 70-pint dehumidifiers made by LG and manufactured between 2003 and 2005. The dehumidifiers are made of white plastic and are between 21 and 24 inches tall, about 15 inches wide and about 13.5 inches deep. They have a fan, humidity controls and a Kenmore logo on their top front panels. They come with front-loading water buckets. Some models include remote controls. The model number can be found on the right side of the interior of the unit once the bucket has been removed. Recalled units have the following model numbers:

• 35-pint (2004) - 580.54351400
• 50-pint (2003) - 580.53509300
• 70-pint (2003) - 580.53701300
• 70-pint (2004) - 580.54701400
• 70-pint (2005) - 580.54701500

The dehumidifiers, manufactured in China, were sold exclusively at Sears and Kmart stores nationwide and Sears.com and Kmart.com from 2003 to 2009 for between $140 and $220.

Consumers should immediately turn off and unplug the dehumidifiers and contact the Recall Fulfillment Center to receive a Sears gift card for either $75, $80, $90 or $100, which may be used at any Sears or Kmart store or at Sears.com or Kmart.com. The gift card amount will depend on the capacity and year of the dehumidifier. In lieu of a gift card, consumers may request a check for the refund amount. All consumers with recalled units will also receive a $25 coupon that may be used at Sears Department Stores or Sears.com toward the purchase of a new Kenmore dehumidifier.

Consumers may contact the LG Recall Fulfillment Center, toll-free, at (855) 400-4641 between 8 a.m. and 7 p.m. CT Monday through Friday and between 8 a.m. and 2 p.m. CT Saturday.   

Have you ever felt sad or depressed during the day and weren't sure why?

The next time that happens ask yourself how much sleep you got the night before. Better yet, ask yourself how much sleep you've been getting overall.

And if you suffer from sleep apnea, you really want to ask yourself these questions.

Exploring the link

Researchers at Ohio State's Wexner Medical Center recently took a closer look at the link between sleep apnea and depression and looked into how even small amounts of light can throw off a good night's sleep a great deal.

Dr. Ulysses Magalang, director of the Sleep Disorders Center at the Wexner Medical System, said nearly 50% of folks with sleep apnea live with depression.

"We know that approximately half of all patients with obstructive sleep apnea also suffer from depression and anxiety," he said. "And we aren't exactly sure why."

Magalang and his research team conducted an experiment using lab mice, to get a better understanding of how sleep apnea patients can sleep better.

At the conclusion of the experiment the researchers said even the dimmest of lights can cause a sleep apnea patient to suffer. And they're not just talking about the TV and laptop being kept on.

Magalang and his team said even the small dots of light on your cable box or other electronics can throw off sleep and cause depression.

In addition, people with sleep apnea should avoid using digital alarm clocks, since most give off light and can cause a distraction. In fact, anyone who wants a good night's sleep should follow these instructions.

"Light at night -- even low levels of light -- might actually suppress the secretion of melatonin," said Magalang.

Sleep preparation 

Dr. Shelby Freedman Harris, director of the Behavioral Sleep Medicine Program Sleep-Wake Disorders Center at Montefiore Medical Center in New York City, says in order for your brain to release melatonin, you'll have to make some preparations.

"In the sleep field we like to call [melatonin] the 'hormone of darkness,' " said Harris in an informational video. "Melatonin helps us to get sleepy and fall asleep at night. So when the sun goes down and it gets dark, melatonin starts to come out and we start to get sleepy."

And there are a lot of things that can disrupt that sleepy feeling, she says.

"If you are sitting in bright light in your bedroom or you're just playing with a computer or an iPad or you're watching TV, all those things can inhibit the ability for melatonin to come out and therefore make you not as sleepy when you want to go to bed at night," Harris explained.

The seriousness of apnea

According to the American Sleep Apnea Association, there are more than 20 million adults who are living with sleep apnea but don't know it, and besides depression, sleep apnea can lead to diabetes, heart attacks, strokes and other serious conditions.

If you're not sure if you have sleep apnea, Dr. Rod Willey, of the Illinois Institute of Dental Sleep Medicine, says getting someone to monitor your sleep is your best bet.

Wiley says that it's often a family member who observes that a spouse or partner stops breathing or snores loudly. Both can be signs of apnea.

In addition, Willey says it's not the snoring that people should be concerned about when it comes to sleep apnea, they should be worried about what happens after the snoring.

"Snoring is usually followed by a moment of silence," he said. "It's that moment of silence that we have to worry about, because that's when you actually must start breathing again. And after that moment of silence is over, that's usually followed by a cough or a gasp or a snorting or something -- or more snoring."

Willey says the snoring, followed by the silence and coughing can happen hundreds of times throughout the night for a person with sleep apnea, so grabbing a family member to watch you sleep is the best route that you can take. If you live alone, recording yourself sleeping might not be a bad idea.

Magalang says his team isn't 100% sure of how strong the link is between sleep apnea and depression, but the link does exist.

A good night's sleep

By just removing some of the small and subtle lights in a room, sleep apnea patients, and other folks, will be able to sleep better and lower the chances of depression setting in.

"Although it is unclear at the present time whether sleep apnea causes depression, both conditions are commonly seen together in patients," said Magalang. "Our research suggests that sleeping even with a minimum amount of light may increase symptoms of depression in those with sleep apnea.

"The combination of dim light exposure and sleep apnea appears to result in increased depressive and anxiety-like behaviors in mice, so limiting exposure to light at night could be a very simple strategy to help patients with sleep apnea. We're currently exploring further testing."

In addition, Magalang says for the best sleep, use drapes that will completely darken the room, as some drapes still allow a little light to get through. And obviously, all electronics should be turned off as you're getting ready to shut down for the night.

Lastly, Magalang says to choose clocks or night lights with red lighting instead of blue or green lighting, since blue and green lights can cause more distraction.

Don't like those lengthy cell phone contracts? AT&T is giving you a chance to cut the cord, or at least snip it a little bit -- but it comes at a price.

AT&T calls its new program "AT&T Next." Simply put, it lets you buy any phone or tablet you want at full price without signing up for a two- or three-year network service contract. Instead, you have to sign up for an AT&T Next service contract, which as we interpret AT&Tspeak does not have a fixed term.

What's so great about that? Well, not too much except for the no-long-term contract part. The rub is that you'll be paying full price for the phone you select instead of having AT&T subsidize the device in exchange for a multi-year contract.

Of course, while there's no contract, you'll be signing an interest-free financing plan (i.e., a contract) that lets you pay for the phone in 20 monthly payments. After 12 payments, you can trade the device in on a new one; after 20 payments, the phone or tablet is yours and you can keep it, sell it or give it away. 

Of course, if you lose the phone or it gets damaged or stolen, you'll still have to make the payments, so if you're one of those people who tends to drop the phone into the toilet or back over it with your Hummer, it might be a good idea to look into insurance. 

To hear AT&T tell it, this is the greatest thing since unsliced bread. 

“With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment. That’s hard to beat, and it’s an incredible value for customers who want the latest and greatest every year,” said Ralph de la Vega, president and chief executive officer of AT&T Mobility.

Really?

Why is this such a great deal? Well, it depends on a lot of things -- like what AT&T will be charging you for network service and how much you wind up spending for the phone or tablet. See AT&T's website for more information on network plan pricing (we couldn't find it but maybe you can).

Phones and tablets aren't cheap, you know. Consumers who've gotten used to getting a new phone every few years for $100 or so will be shocked to learn that new iPhones, Droids and so forth can easily top the $500 mark -- a cool $25 or so per month just to pay for the phone plus the monthly network charge.

Oh, and about that "no-contract" network agreement, you can cancel it at any time but if you do -- guess what -- the full amount of your installment contract on the device becomes immediately payable. 

So, yes, you can quit anytime you want. But it will cost you.

Freedom, as they say, isn't free.

What do you and your significant other argue about? Which team to root for, what color to paint the living room, whether to serve Coke or Pepsi?

If you mostly argue about money, chances are your relationship could be headed for the rocks.

"Argument about money is by far the top predictor of divorce," said Sonya Britt, assistant professor of family studies and human services at Kansas State University. "It's not children, sex, in-laws or anything else. It's money -- for both men and women."

Britt reached her conclusion after studying data collected from more than 4,500 couples who were part of the National Survey of Families and Households. The study controlled for some obvious factors, like income, debt and net worth. After all, wouldn't people who have less be more likely to fight about money? Not really.

Even the rich fight over money

"Results revealed it didn't matter how much you made or how much you were worth,” Britt said. “Arguments about money are the top predictor for divorce because it happens at all levels."

Britt also found that it takes longer to get over money arguments than squabbles about other issues. The words are often nastier and the arguments last longer.

Mindy Crary, a financial coach and Forbes contributor, says many couples stumble into arguments about money when they first begin to merge their finances. When two singles become a couple and pool their assets, it's often akin to a corporate merger.

Her advice? Don't expect the merger to become an instant success financially. It took a while to become a couple, she points out, and it will take a while for two income streams to become a single pool.

The debt trap

If one of the partners brings more debt to the union, that can also be a source of friction. If one of the partners enters couplehood debt-free, that person should show some sensitivity to the other. It's often hard because people disciplined about money seem to have little patience with people who are not.

Spending can be another source of friction in a relationship. Both parties should have similar approaches to spending and similar goals. Otherwise, there's likely to be some arguments.

Avoiding money fights

Those are some of the problems. Now, are there any solutions? Many experts say there are.

The first piece of advice is to talk about money before the subject comes up in a heated argument. And perhaps the best time to talk about money is before the relationship gets serious.

For example, if you have dreams of an early and independent retirement while your would-be partner tends to live for today, it might be good to know that before you contemplate a merger. Prospective couples often feel each other out on important life decisions like children. It would be wise to work money into that conversation as well.

Financial plan

Once you take the plunge into couplehood, formalize your agreements into a financial plan. Any organization needs a budget and a household is no exception. Come up with a spending plan that balances with income and leaves some room for savings and investment.

Britt says financial arguments don't always end in divorce but they almost always make both parties miserable. They increase stress and suck all the satisfaction out of the relationship.

"We, as financial planners, can help clients reduce their stress through education," Britt said. "This is important because people who are stressed are very short-term focused. They don't plan for the future. If you can reduce stress, you can increase planning."

Couples who agree to tie the knot often seek premarital counseling. A good opportunity, Britt says, to pull each other's credit reports and talk through how to handle finances fairly for both individuals.

A sharp increase in gasoline prices sent the government's consumer price index (CPI) up 0.5% in June following a miniscule 0.1% advance the month before.

The June increase came as a surprise to economists surveyed by Briefing.com, who had forecast a gain of 0.3%. For the 12 months ending in June, inflation is running at an annual rate of 1.8%

Energy and food

Energy costs were up 3.4% last month after increasing just 0.4% in May. Almost all of that was due to a jump of 6.3% in the price of gasoline, which was unchanged in May. In fact, the gasoline price surge accounted for about two- thirds of the rise in the overall CPI. Other energy categories were mixed, with electricity rising, but natural gas and fuel oil declining.

Food prices rose 0.2% in June following a 0.1% dip in May. Costs for cereals and bakery products, and for meats, poultry, fish, and eggs all increased 0.4%. The costs of fruits and vegetables, and for dairy and related products fell 0.1%.

The “core rate” of inflation, which strips out the volatile energy and categories, increased 0.2% -- the same increase as in May.

The full June CIP report is available on the Labor Department website

A California resident claims in a lawsuit that police responding to a shooting killed his dog for no apparent reason. The suit, filed on July 10, alleges that Chico Blue, a 5-year-old pit bull, died a gruesome death, bleeding out after being shot twice.

According to the suit, plaintiff Arturo Gonzalez was home with Chico when officers with the Los Angeles Sheriff’s Department responded to a report of a nearby shooting. Gonzalez, who according to the suit was not connected with the shooting, was held in a police car while Chico stayed in the yard.

Suit: Cop tormented dog

The suit claims that “one of the officers, apparently for his own amusement, picked up a lounge chair and threw it over the fence at Chico ... Shortly after, another officer opened the gate to the area where the dog was securely enclosed and tasered him twice in the face.”

“After being tasered, Chico Blue staggered through the gate an officer had left opened,” the complaint says. “Even though the dog was already dazed and injured, an officer near the sidewalk drew his gun and shot Chico Blue twice.”

“The dog attempted to flee by jumping into an officer's open car door, where an officer kicked the door closed and allowed Chico Blue to bleed to death.”

According to the suit, Gonzalez repeatedly begged the officers to let him bring Chico inside, but the police ignored his pleas. The suit names as defendants the City of Pico Rivera and the County of Los Angeles.

Lawyer: “One of the worst” 

"My office unfortunately receives many calls from people who have lost a family companion due to an unnecessary and excessive shooting by police officers," the plaintiff’s lawyer, Jill Ryther told the Huffington Post. "Despite the many horrific stories I have heard, the shooting of Chico Blue is one of the worst I've encountered."

Ryther founded Expand Animal Rights Now (EARN), a group whose “primary objective is to use the legal system, education and outreach to end the exploitation of all animals.”

In a press release issued the day the suit was filed, Ryther says that “Chico Blue’s tragic death is part of a larger trend in which numerous animals have been harmed or killed by careless law enforcement officials.”

“Just last week a video published on YouTube showed Max, a Rottweiler, being gunned down by police in Hawthorne, prompting protests and outrage from countless citizens,” the press release says.

Chrysler has been having its share of setbacks lately, including a nasty fight with consumers and regulators over fires in the Jeep Grand Cherokee, but the company also got some good news this week: it's 2013 Ram 1500 pickup has come out on top of the Consumer Reports ratings.

Coincidentally, the truck was recalled today because of a problem with the electronic stability control system. 

The 2013 Chrysler 300 tied the Nissan Maxima in the magazine's test scores for large sedans earlier this year. The test scores are widely used by consumers considering new car and trucks purchases.

The re-engineered half-ton pickup scored a 78 in the magazine's road testing, nine points ahead of the second-place Toyota Tundra and 10 points higher than the Ford F-150.

"Continued interior and powertrain improvements make the Ram a particularly well-rounded choice," said Jake Fisher, director of Consumer Reports' Auto Test Center.

The top score for the Ram comes just as large pickups are seeing a sales surge, due mostly to the uptick in the housing and construction trades. All of the major manufacturers have been retooling their pickups to get in on the action.

In its testing, Consumer Reports used a 2013 Ram with the 5.7-liter Hemi engine and the eight-speed automatic transmission, running up a 15 miles per gallon rating, the highest among those tested.

The truck also got the magazine's "recommended" badge because earlier models have achieved a good reliability rating.

The marketers of unproven cedar oil-based remedies for bed bugs and head lice have agreed to soft-pedal their claims.

The Federal Trade Commission (FTC) charged that Chemical Free Solutions, LLC, had made unsupported and over-hyped claims for its BEST Yet! line of cedar-oil-based liquid products that it said would treat and prevent bed bug and head liceinfestations.

According to the FTC, the defendants falsely claimed that their natural, BEST Yet! bed bug and head lice products were invented for the U.S. Army, that their bed bug product was acknowledged by the USDA as the No. 1 choice of bio-based pesticides, and that the Environmental Protection Agency had warned consumers to avoid chemical solutions for treating bed bug infestations.

Under the agreed-upon settlement orders, the defendants are prohibited from claiming that their BEST Yet! products by themselves can stop or prevent a bed bug infestation, or are more effective at doing so than other products, unless they have competent and scientific evidence to make the claims. 

The defendants also are barred from claiming that their products can effectively treat head lice infestations unless those claims are non-misleading and they obtain FDA approval prior to making those claims. 

The defendants are further prohibited from misrepresenting the results of scientific tests or studies, and from claiming that a product or service they sell is endorsed by a government agency or by any other third-party entity when it is not.

The orders impose a $4.6 million judgment against company owner Dave Glassel who is facing bankruptcy, and a $185,206 judgment against Chemical Free Solutions, LLC, which will be suspended due to the company’s inability to pay.  

Consumers concerned about bed bugs also should see the FTC publication,  “Battling Bed Bugs,” which urges caution about advertisements that offer quick solutions, and provides other related advice to consumers.

Chrysler is recalling 1,058 model year 2013 RAM 4500 and 5500 trucks manufactured January 22, 2013, through March 8, 2013.

An incorrect bolt may have been used to attach the track bar to the frame. The incorrect attaching bolt may break or fall out, resulting in the vehicle suddenly pulling to one side, increasing the risk of a crash.

Chrysler will notify owners, and dealers will inspect and replace the track bar fasteners, as necessary, free of charge. The recall is expected to begin in August 2013.

Owners may contact Chrysler at 1-800-247-9753. Chrysler's recall campaign number is N41.

Chrysler is recalling 4,458 model year 2014, non-SRT trimmed, Grand Cherokee vehicles manufactured January 14, 2013, through March 20, 2013 equipped with premium headlamps.

When switching between daytime running lights and parking lights, electrical spikes may cause the parking lamps to turn off. Without parking lamps, the vehicle may not be as visible to other vehicles, increasing the risk of a crash.

Chrysler will notify owners, and dealers will update the Central Body Controller software, free of charge. The recall is expected to begin in August 2013.

Owners may contact Chrysler at 1-800-247-9753. Chrysler's recall campaign number is N42.

Chrysler is recalling 45,961 model year 2013 RAM 1500 4x4 trucks manufactured June 26, 2012, through February 5, 2013.

Due to a software issue with the Electronic Stability Control (ESC) module, the ESC system may be disabled when the vehicle is started. A disabled ESC system may result in loss of directional control, increasing the risk of a crash.

Chrysler will notify owners, and dealers will update the ESC module software, free of charge. The recall is expected to begin in August 2013.

Owners may contact Chrysler at 1-800-247-9753. Chrysler's recall campaign number is N37.

Consumers spend hundreds of dollars a month for insurance coverage for their home and automobiles, so when damage occurs the first thought is to file a claim. That's why you pay those premiums each month, right?

However, in the real world that's not always the best course of action. Consider what happened to Ellen, a Farmers auto policyholder from West Bend, Wis.

“We have been paying for several years to insure a 2003 Mini Cooper and a 2010 BMW,” Ellen writes in a ConsumerAffairs post. “I recently backed into a car. The damage was not that great. In fact I paid out of pocket to repair my car.”

But the person she backed into filed a claim to have their car repaired. Ellen would have been better off paying for that damage herself too.

“Within a month of the incident our rate increased by $983 a year,” Ellen writes. “This was my first claim. I have not had any claims for over 10 years with any company. The increase was greater than the claim made by the car owner I hit. How can this be fair?”

Frank, an Allstate customer from New Jersey, says his auto policy was canceled after a minor at-fault claim and two non-fault claims.

“For six years I never was late on a payment, so total premiums paid for six years comes to about $25,000,” Frank writes. “Now I know they did pay almost $4,000 for my at-fault accident that I can't believe, because I backed up into someone who was five feet behind me and I had nothing but a scratch on my bumper. But because I had a little bad luck and someone else hit my wife's car and my son's car, that's reason enough to kick me to the curb.”

How it works

It doesn't seem fair, but unfortunately that's how the insurance industry works, especially now when publicly-traded insurance corporations seek to enhance their profitability by minimizing risk. By and large insurance companies don't bother to explain to consumers how their business works, so credit Most Insurance, an independent broker in Tampa, Fla., for making the effort.

“Insurance, and the price you pay for it, is based on risk – the risk of a loss occurring,” the company says on its website. “High risk of loss means higher prices are necessary to pay for those increased losses. And low risk of loss means lower prices. Now, what determines the level of risk? Lots of things. But claims experience is one of the most important.”

The company says that the numbers show that people who have made a claim are more likely to have another claim in the future. If you have a claim on your record, you're going to look like a bigger risk compared to a consumer with no claims.

Avoiding claims will probably pay off

If you have an accident and can avoid filing a claim, it just might pay off in the long run. But how do you know when you really should file a claim and when you should just pay for the damage out of pocket? Some industry experts suggest keeping the damage repair off the insurance company's record books if the damage is under $1,000. However, if you can afford to pay more out of pocket, that number should probably be a bit higher.

It's useful to remember that the real purpose of an insurance policy is to protect you from catastrophic loss – the kind that could force you into bankruptcy. If you can afford to cover your own damage, and damage to the other party, it might be the smart thing to do.

Consider covering the cost yourself if there is no other party involved. Asking your insurance company to pay for the repair to your car when you backed into a telephone pole will probably cost you in the long run. Yes, they may pay your claim but you may find yourself dropped as a client when the policy comes up for renewal or paying a higher rate.

Don't ask, don't tell

If your are uncertain about whether or not to file a claim, your insurance agent may be the wrong person to ask. It's quite possible that the agent will be required to note in your file that you had an accident, even if you don't file a claim.

While all of this seems vastly unfair to consumers who are required by law to pay monthly premiums for the privilege of operating a vehicle, deciding to “self-insure” for all but the most serious accidents can work in your favor. Insurance policies carry “deductibles,” the amount of damage the client agrees to pay before the insurance company begins to pay. The higher the deductible the lower the premium.

If you have already decided that you are going to file a claim only for major damage, it makes financial sense to take the largest deductible the company provides. That way you save on the monthly premium and can apply the savings toward covering damages, when or if you get in a fender-bender.

You may have noticed that, all of a sudden, gasoline is getting more expensive. It's not your imagination. Prices at the pump began surging since late last week.

Here's what gas prices have done over the last few days. On Thursday, the national average price of self-serve regular was $3.518 a gallon, according to the AAA Fuel Gauge Survey. On Friday it was $3.550. By Saturday the price had jumped to $3.582 and on Sunday it was $3.60, a rise of more than eight cents in four days.

What's behind the dramatic move higher in the middle of the summer driving season? Two reasons.

First, the price of crude oil has suddenly escalated on world markets. Since the beginning of July oil prices have surged – primarily oil produced in the U.S. Since the beginning of the year U.S. crude has been selling about $20 a barrel less than Brent Crude, produced primarily in the Middle East.

U.S. oil prices rising

Now those prices have narrowed, with West Texas Intermediate (WTI) selling about $3 a barrel less than Brent. Both prices are over $100 a barrel. That means refiners have to pay more for the oil they turn into gasoline.

Adding to the price pressure, some refineries have reported problems that have curtailed production, so that they are suppling less gasoline. The price of Reformulated Blended with Onygenated Blendstock (RBOB), the blend of fuel that influences U.S. service station prices, has jumped 14% on the August futures market so far this month.

In the east, major refineries in Philadelphia, New Brunswick and Newfoundland were affected by unanticipated problems that slowed or shut off completely the output of refined product. Valero Energy reported problems at its Port Arthur, Tex., refinery would affect output starting this week.

More oil but not more refineries

While the U.S. has been producing more oil in recent years, it has not increased, to the same extent, its capacity to refine oil into gasoline. There were a total of 144 operable petroleum refineries in the United States as of January 1, 2012, according to the U.S. Energy Information Administration.

The last U.S. refinery was built in 2008 in Douglas, Wyo., but it produces a paltry 3,600 barrels per day. In fact, most recently-built U.S. refineries only produce between 3,600 and 23,000 barrels.

The last major U.S. refinery was built in 1977 in Garyville, La. It produces more than 400,000 barrels a day. While the U.S. increase in demand for gasoline has tapered in recent years, problems at refineries can cause supply problems and, more importantly, send prices soaring.

Market forces

These days gasoline prices are set by commodities traders on the futures market. While previous price hikes have often been blamed on speculators, in this case gasoline wholesalers appear to be doing their part as well. Various industry reports have cited what they call “panic buying” by wholesalers trying to get ahead of the anticipated price surge.

While shortages of gasoline from refineries are pushing prices higher, those same refineries have increased their export of refined gasoline to other countries. In the first three months of 2013 the U.S. became a net exporter of gasoline. While the oil industry denies this has had any impact on domestic pump prices, the consumer group Public Citizen estimates it had added as much as 12 cents a gallon to what consumers pay.

At the beginning of this week Hawaii, Alaska and California all had statewide average gas prices over $4 a gallon. The average price in Santa Barbara was $4.11 while both Los Angeles and San Francisco stations averaged $4.08 a gallon.

On the East Coast, meanwhile, New York had the highest average gas prices – $3.814 a gallon. Within the state the New York City metro had the highest prices, averaging $3.917 a gallon.

The all-electric Leaf has just been one headache after another for Nissan. First, everybody laughed at the idea. Then nobody bought the cars. Now Nissan can't make them fast enough. 

"We're going to be short on inventory all through the summer," Erik Gottfried, director of electric vehicle sales for Nissan, says he has been telling dealers, according to Automotive News. "It will be late fall before we can produce enough to satisfy everybody."

Nissan says it is now selling more than 2,000 Leafs a month, quadruple its volume of a year ago. It's ramping up production at its Smyrna, Tenn., plant as fast as it can.

One big -- and largely unexpected change -- is that the car is selling in parts of the country far from its expected demand centers of San Francisco, Seattle and other environmentally-conscious markets.

Gotfried says dealers in places like Dallas, St. Louis and Atlanta are now asking for the cars, saying that consumers have been coming into their showrooms asking for them.

Tipping point

Why the sudden demand? Well, gas prices are rising again and many consumers are starting to realize that they can do their daily commute and maybe work in a quick stop at the supermarket on a single charge. The dread "range anxiety" is starting to fade, in other words.

After all, some of these cities -- St. Louis, for example -- are a lot more compact than Los Angeles or Seattle. Where a Los Angeleno may think nothing of driving 40 miles to work, most St. Louisans probably drive half that far, or less. And the fear of an unexpected errand is less ominous in the East and Midwest.

After all, it's one thing to make an unexpected trip from Santa Ana to Santa Clarita (65 miles or so)  and quite another to work in a quick jaunt from St. Louis to University City, Mo. (10 miles). 

It doesn't hurt that Nissan came out with a cheaper model. The new, more basic trim line cut the price by about $6,000 to $29,750, including shipping. Subtract a $7,500 federal tax credit and throw away your Exxon credit card and, well, it adds up. 

It also helps that charging stations are becoming more common. Nissan is installing more than 100 public quick chargers at dealerships. They can get a Leaf charged from depleted to 80 percent in about 30 minutes, the company says.

Public chargers are also popping up around the country at airports, government buildings and random shopping and office centers. 

Add all this together and you may just have a tipping point -- the place in time when a novel idea that has been embraced by radicals or early adopters bursts out into general acceptance. We've seen it happen most recently with gay marriage. Maybe electric vehicles are next?

A local news affiliate in Oakland, Calif. is potentially facing a lawsuit after airing the purported names of the pilots of Asiana Airlines Flight 214, which crash-landed in San Francisco last Saturday. The list was later found to be a racially offensive prank, although its origin remains unclear.

The list, which aired on San Francisco Fox affiliate KTVU on Friday, appeared under the header “Asiana Flight 214 Pilots’ Names.”

When sounded out, the names -- "Sum Ting Wong," "Wi Tu Lo," "Ho Lee Fuk" and "Bang Ding Ow" -- are clearly references to the crash (the second name refers to the fact that the plane was flying too low during its descent into San Francisco International Airport).

KTVU did contact the National Transportation Safety Board (NTSB) to affirm the veracity of the list before airing it. For reasons unknown, a summer intern confirmed that the names were accurate.

Station apologizes

In a statement aired on Friday evening, KTVU apologized for the “several mistakes” that led to the debacle.

“We made several mistakes when we received this information,” the statement said. “First, we never read the names out loud, phonetically sounding them out. Then, during our phone call to the NTSB where the person confirmed the spellings of the names, we never asked that person to give us their position with the agency.”

Asiana considering legal action

But Asiana, already trying to control the public relations fallout from the crash, said in a statement that it is weighing legal options against both the affiliate and the NTSB.

"The reputation of the four pilots and of the company had been seriously damaged by this report," the statement said. "The company is reviewing taking legal action against both KTVU-TV and the NTSB."

The incident has also prompted an angry reaction from the Asian American Journalists Association (AAJA).

“Words cannot adequately express the outrage we ... feel over KTVU's on-air blunder that made a mockery of the Asiana Airlines tragedy and offended so many loyal viewers of the ...  station," a statement from the AAJA said. “We are hardly satisfied with the station’s statements, and its unwillingness to help us understand how the gaffe originated.”

The Association added that it was “embarrassed for the anchor, who was as much a victim as KTVU’s viewers and KTVU’s hard-working staff, including the journalists who produced stellar work covering the crash.”