Current Events in May 2014

There is no polite way to say this: while a person must doubtlessly be very intelligent to get a job as a professional Facebook algorithm writer, the algorithms themselves are completely stupid, thanks primarily to their complete inability to read things in context.

And, therefore, those who put those algorithms in charge of evaluating news stories are both stupid and irresponsible. 

If you have a Facebook account, you've seen it yourself: post a withering insult about your least-favorite politician, and Facebook's algorithms will recommend that you “Like” his page and donate to his re-election campaign.

A friend of mine, who is a fan of the British science-fiction series Doctor Who, spent one summer getting constant Facebook recommendations that he read news articles about a then-current drug scandal in the world of European competitive bicycling; eventually he figured out it's because the articles all mentioned a doctor who allegedly helped athletes cheat.

Lack of standards

So in some ways, it's no surprise to see this Boston Globe article complaining that “Facebook draws fire on 'related articles' push,” nor any surprise to see that in the article's third paragraph, an unnamed Facebook spokeswoman blamed the problem on “algorithms.”

But read more closely and you'll notice that algorithms aren't the problem; lack of standards is. Or you could call it reckless disregard for facts.

New criticism of Facebook focuses not merely on articles unlikely to interest specific individuals (there's nothing inherently wrong with news stories about European bike-racers; there's just no reason to think Doctor Who fans are especially interested in them), but on pushing articles proven to be demonstrably false. As the Globe said:

A surprise awaited Facebook users who recently clicked on a link to read a story about Michelle Obama’s encounter with a 10-year-old girl whose father was jobless.

Facebook responded to the click by offering what it called “related articles.” These included one that alleged a Secret Service officer had found the president and his wife having “S*X in Oval Office,” and another that said “Barack has lost all control of Michelle” and was considering divorce.

Facebook's algorithms are proprietary information, so nobody knows exactly how they calculate what will and will not appear on Facebook “feeds,” but Facebook has indicated two factors: it has something to do with word association (obviously), and also has something to do with how “popular” an article is. But that's all; Facebook doesn't engage in fact-checking or anything else to verify the content of whatever its algorithms promote.

Were Facebook positioning itself exclusively as a social media site, focusing exclusively on popularity would be a perfectly legitimate tactic. The problem is that Facebook is also trying to position itself as a source of actual news, where mere popularity is supposed to matter far less than whether something is actually true.

Computer technology has evolved considerably in the past quarter-century, but hacking-into-computer technology has too.

Symantec Corporation, which introduced the first commercially available anti-virus software 25 years ago, is shifting its focus away from anti-virus programs into other security strategies, the Wall Street Journalreports. Symantec senior VP for information security Brian Dye told the Journal that anti-virus “is dead.”

Here's why: traditional anti-virus software focuses primarily on keeping hackers out of computers, specifically by looking for certain bits of code hackers use to break in where they don't belong. But hackers develop new viruses so quickly, anti-virus writers simply can't stay ahead of them.

Dye estimated that anti-virus software now only succeeds in stopping 45% of cyberattacks. Furthermore, viruses are far from the only method hackers have of gaining entrance to a system, anyway.

When all else fails ...

Since keeping hackers out of a system doesn't always work, computer security now focuses also on how to minimize the damage hackers can do once they're in.

Last March, for example, a U.S. Senate committee released a “kill chain” report about the various ways Target ignored chances to stop the massive security breach which put up to 40 million customers at risk (and cost their banks and credit card companies a lot of money, too).

Among other things, the report said that Target ignored multiple automated warnings from its own security software indicating that hackers were in the system, installing damaging malware and sending secure files out.

The security software Target chose to ignore was created by FireEye Research Labs, the security firm which recently made headlines after discovering the zero-day security flaw which potentially gave hackers access to all versions of Internet Explorer from IE6 on up. Target's first line of defense — keep hackers out of the system altogether — failed after a hacker acquired fake credentials sufficient to enter the system; no anti-virus software could possibly have prevented that, since “a virus” wasn't the problem.

The second line of defense — prevent hackers from causing trouble once they're in the system — might have worked, had Target acted upon its security warnings.

Though Brian Dye said anti-virus is “dead,” that does not mean that you, the everyday computer user, should stop using properly updated anti-virus software on your machine; it means you can't blithely assume “Since I have an updated anti-virus program, I have nothing to worry about.”

You still need to exercise due diligence yourself: for starters, don't click on suspicious-looking links, open spammy-looking emails or download unsolicited files. And if you are Target or any other enormous multinational corporation, don't give third-party air-conditioner repairmen access to the super-sensitive database where you store your customers' confidential financial information, either.

If you watched much cable television in 2011 and 2012 you couldn't help but be bombarded by all those commercials urging you to buy gold and silver. The pitch was bolstered by scary economic headlines.

The dollar was falling. Congress was one big partisan gridlock and the not-so-subtle message of these ads was you'd better buy now before the whole house of cards collapses.

It would have been easy to be tempted. The price of both precious metals was rapidly rising. At the beginning of 2011 the price of gold stood at $1,405 an ounce. The following September it peaked at over $1,900.

But be glad your didn't bite.

Long, bumpy slide

Had you purchased at the high, your losses would be quite steep. Gold has had a long, bumpy slide down to its present level of $1,292 – roughly $600 an ounce lower.

Silver has turned out to be a similar story. Three short years ago silver peaked at $48.70 an ounce. Today the metal trades around $19 an ounce. Those who bought at the top of the market took a beating.

In fact, their losses may be even greater than they appear. The prices noted above for gold and silver are the spot market prices. But that isn't what all those commercials were promoting.

Instead, consumers were urged to buy “physical” gold, either in the form of gold and silver bars or coins. Aside from the problem of providing secure storage, purchasers of physical gold and silver usually paid a premium.

If the gold is in the form of a coin, a dealer will argue that it has more value than just the gold it contains. They use the argument to justify a premium that can be 5% or more than the value of the gold or silver contained in the coins.

Action against telemarketers

Last year the Federal Trade Commission (FTC) settled charges against telemarketers accused of pressuring older consumers to spend $5 million on physical gold.

The settlement resolved charges against Sterling Precious Metals LLC for promising consumers they could profit by investing in precious metals with little risk of loss, without telling them they probably would have to pay more money later or lose their investment.

Make no mistake, plenty of people made lots of money investing in gold and silver because they bought low and sold high. Billionaire investor George Soros sold gold in August 2013, well after the peak but in time to pocket a nice profit.

Wall Street traders also had the chance to profit from gold's rise by purchasing shares of gold mining stocks or in gold exchange traded funds (ETSs), which are bought and sold like shares of stock.

Harder to unload quickly

When things started to go south for the precious metals, selling their positions was as easy as a few key strokes. Not so for those who bought physical gold and silver.

But the gold and silver commercials weren't aimed at investors who traded in gold and silver. Instead, their pitch was to people afraid of impending economic catastrophe. The unstated reason for buying physical metal, after all, is because you just can't trust Wall Street, the government, etc.

If they were worried about their declining dollars before, the people who bought gold and silver at their peaks have seen the dollars they sunk into precious metals erode considerably. If they put $10,000 into physical gold at the top of the market, their gold is now worth roughly $6,000.

Those who bought silver have fared far worse. A $10,000 investment in silver at the peak price is today worth less than $4,000.

Admittedly, many of the people who responded to the TV commercials by purchasing physical gold and silver don't look at it as an investment, but rather an insurance policy. An insurance policy against the collapse of the global financial system.

They may not ever plan to sell their gold and silver and, if it helps them sleep better at night, who can argue with that?

But the lesson here is to understand the difference between a real investment in which you hope to grow your wealth and an insurance policy against the apocalypse.

Parents aren't getting -- or are ignoring -- the message that infants should always be placed on their back to sleep and that they shouldn't share their parents' bed.

A new study finds that about 4,000 babies die each year from sleep-related deaths involving suffocation and strangulation in beds. According to the study, these deaths from SIDS or SUID (sudden unexpected infant death) are seen more often among black families.

"We found that many infants are not placed to sleep on the back, and many still routinely share a bed during sleep," said lead author Eve Colson, M.D., professor of pediatrics at Yale School of Medicine.

Colson and her colleagues collected data from 1,276 mothers recruited from 32 hospitals across the country, which were chosen to provide a nationally representative sample of behavior. The participants completed an in-depth survey about infant care practices including bed sharing and infant sleeping positions.

The team found that 28% of Hispanic parents, 18% of black parents, and 13% of white parents share a bed with their infants.

"The estimated national prevalence of bed sharing is quite high at 18.5%," said Colson. "It is clear that more needs to be done to provide safe environments for all infants while they sleep."

Prone (stomach) sleeping, which has an even higher risk of leading to SIDS and SUID, was particularly common among black infants, with 22% of those infants being placed on their stomachs.

The findings will be presented at the Pediatric Academic Societies (PAS) Annual Meeting taking place May 3-6, 2014 in Vancouver, BC.

Five months after the security breach that threatened the confidential data of up to 40 million Target customers, Target's CEO, president and chairman of the board of directors, Gregg Steinhafel, resigned today. The company released a statement which said:

Today we are announcing that, after extensive discussions, the board and Gregg Steinhafel have decided that now is the right time for new leadership at Target.  Effective immediately, Gregg will step down from his positions as
 Chairman of the Target board of directors, president and CEO.

The statement then went on to say “The board is deeply grateful to Gregg for his significant contributions and 
outstanding service throughout his notable 35-year career with the company.”

He's not getting much sympathy from professionals in the data security field.

“It was only a matter of time before Target CEO Greg Steinhafel would be shown the express lane out of Target. His woeful leadership in the mishandling of the security breach exposed tens of millions of his company’s customers to cybercriminals was ample reason to remove him as CEO," said JD Sherry, a Trend Micro vice president.

"The responsibility of a modern CEO includes relentlessly and tirelessly guarding the security and safety of their customer’s data. The gauntlet has been laid down for all executives that process and store sensitive information that CEOs can no longer pay attention to security only when there is a problem," Sherry said.

Shawn Henry, president of CrowdStrike, a data security firm, sounded a little more sympathic: "If a CEO's longevity is based on the ability to keep an adversary off the network, everyone will lose their jobs. The reality is that you cannot keep the adversary off the network."

Henry said organizations "need to focus on adversary detection and consequence management, and the government needs to focus on identifying who is behind this type of malicious activity."

Faint praise​

The significant, though somewhat vague, contributions mentioned in the statement included Steinhafel's “passion for the team and relentless focus on the guest,” his role in creating “a 
culture that fosters innovation and supports the development of new ideas,” and “Under his leadership, the company has not only enhanced its ability to
 execute, but has broadened its strategic horizons.... Most recently, Gregg led the response to Target’s 2013 data breach.”

Steinhafel will probably want to keep that last "accomplishment" off his resume, if he's in the market for another job.

A study of more than three million American children and adolescents finds a "significant" increase in both type 1 and type 2 diabetes occurred between 2001 and 2009.

Despite widespread concern about a diabetes "epidemic," there has been limited data to support the concern. 

"The increases in prevalence reported herein are important because such youth with diabetes will enter adulthood with several years of disease duration, difficulty in treatment, an increased risk of early complications, and increased frequency of diabetes during reproductive years, which may further increase diabetes in the next generation," the researchers write. "Further studies are required to determine the causes of these increases."

The study appears in the May 7 issue of JAMA, a theme issue on child health. This issue is being released early to coincide with the Pediatric Academic Societies Annual Meeting.

The analysis included cases of physician-diagnosed type 1 diabetes in youth ages 0 through 19 years and type 2 diabetes in youth 10 through 19 years of age in 2001 and 2009. The study population came from five centers located in California, Colorado, Ohio, South Carolina, and Washington state, as well as data from selected American Indian reservations in Arizona and New Mexico.

In 2001, the prevalence of type 1 diabetes among a population of 3.3 million was 1.48 per 1,000, which increased to 1.93 per 1,000 among 3.4 million youth in 2009, which, after adjustment, indicated an increase of 21 percent over the 8-year period.

The greatest prevalence increase was observed in youth 15 through 19 years of age. Increases were observed in both sexes and in white, black, Hispanic, and Asian Pacific Islander youth.

"Historically, type l diabetes has been considered a disease that affects primarily white youth; however, our findings highlight the increasing burden of type l diabetes experienced by youth of minority racial/ethnic groups as well," the authors write.

Dana Dabelea, M.D., Ph.D., of the Colorado School of Public Health, Aurora, Colo., and Elizabeth J. Mayer-Davis, Ph.D., of the University of North Carolina, Chapel Hill, and colleagues with the SEARCH for Diabetes in Youth Study, conducted the study.

The Centers for Disease Control and Prevention has confirmed the first case of Middle East Respiratory Syndrome Coronavirus (MERS-CoV) in a traveler to the United States.

The virus, relatively new to humans, was first reported in Saudi Arabia in 2012.

“We’ve anticipated MERS reaching the US, and we’ve prepared for and are taking swift action,” said CDC Director Tom Frieden, M.D., M.P.H. “We’re doing everything possible with hospital, local, and state health officials to find people who may have had contact with this person so they can be evaluated as appropriate. This case reminds us that we are all connected by the air we breathe, the food we eat, and the water we drink. We can break the chain of transmission in this case through focused efforts here and abroad.”

International travel involved

On April 24, the patient traveled by plane from Riyadh, Saudi Arabia, to London, England, then from London to Chicago, Illinois. The patient then took a bus from Chicago to Indiana. On the 27th, the patient began to experience respiratory symptoms, including shortness of breath, coughing, and fever.

The patient went to an emergency department in an Indiana hospital on April 28th and was admitted on that same day. The patient is being well cared for and is isolated, according to CDC, and is currently in stable condition.

Because of the patient’s symptoms and travel history, Indiana public health officials tested for MERS-CoV. The Indiana state public health laboratory and CDC confirmed MERS-CoV infection in the patient last Friday.

“It is understandable that some may be concerned about this situation, but this first U.S. case of MERS-CoV infection represents a very low risk to the general public,” said Dr. Anne Schuchat, assistant surgeon general and director of CDC’s National Center for Immunizations and Respiratory Diseases. In some countries, the virus has spread from person to person through close contact, such as caring for or living with an infected person. However, there is currently no evidence of sustained spread of MERS-CoV in community settings.

The investigation continues

CDC and Indiana health officials are not yet sure how the patient became infected with the virus. Exposure may have occurred in Saudi Arabia, where outbreaks of MERS-CoV infection are occurring. Officials also do not know exactly how many people have had close contact with the patient.

So far -- including this U.S. importation -- there have been 401 confirmed cases of MERS-CoV infection in 12 countries.

To date, all reported cases have originated in six countries in the Arabian Peninsula. Most of these people developed severe acute respiratory illness, with fever, cough, and shortness of breath; 93 people died. Officials do not know where the virus came from or exactly how it spreads.

There is no available vaccine or specific treatment recommended for the virus.

Preparing for MERS

“In this interconnected world we live in, we expected MERS-CoV to make its way to the United States,” said Frieden. “We have been preparing since 2012 for this possibility.”Federal, state, and local health officials are taking action to minimize the risk of spread of the virus.

The Indiana hospital is using full precautions to avoid exposure within the hospital and among healthcare professionals and other people interacting with the patient, as recommended by CDC.

In July 2013, CDC posted checklists and resource lists for healthcare facilities and providers to assist with preparing to implement infection control precautions for MERS-CoV.

As part of the prevention and control measures, officials are reaching out to close contacts to provide guidance about monitoring their health.

While experts do not yet know exactly how this virus is spread, CDC advises people to help protect themselves from respiratory illnesses by washing hands often, avoiding close contact with people who are sick, avoid touching their eyes, nose and/or mouth with unwashed hands, and disinfecting frequently touched surfaces.

The largest reported outbreak to date occurred April through May 2013 in eastern Saudi Arabia and involved 23 confirmed cases in four healthcare facilities. At this time, CDC does not recommend any changes in travel plans. Additionally, there have been no travel health warnings from the World Health Organization for any country related to MERS-CoV.

Anyone who develops fever and cough or shortness of breath within 14 day after traveling from countries in or near the Arabian Peninsula should see their doctor and let them know where they traveled.

Bacai is recalling 13165 lot (lot number is found next to the expiration date) of LiteFit USA.

The product, which is used as an herbal diet supplement and is packaged in plastic bottles of 30 softgels, was found by lab analysis to contain sibutramine.

The company has not received any reports of adverse events related to this recall.

The recalled product was distributed from June 26, 2013, to March 27, 2014, to wholesalers, retailers, and through the Internet.

The affected LiteFit USA lots include lot number 13165, which expires in May 2017.

Bacai is notifying its distributors and customers by mail and is arranging for return and refunds of all product sold in the US.

Consumers/distributors/retailers that have product which is being recalled should stop using and return it to the place of purchase.

Consumers with questions regarding this recall may contact Bacai at 714-775-0050 from 10:00 am - 6:00 pm PDT. 

General Motors is recalling 51,640 model year 2014 Buick Enclave, Chevrolet Traverse, and GMC Acadia vehicles manufactured March 26, 2013, through August 15, 2013.

The engine control module (ECM) software in the affected vehicles may cause the fuel gauge to read inaccurately, resulting in the vehicle unexpectedly running out of fuel and stalling, increasing the risk of a crash.

GM will notify owners, and dealers will reprogram the ECM to correct the fuel gauge reading, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact General Motors at 1-800-521-7300 (Buick), 1-800-222-1020 (Chevrolet), and 1-800-462-8782 (GMC). GM's number for this recall is 14007.

The Kroger Co. is recalling Private Selection Chocolate Hazelnut Mascarpone Ice Cream and Private Selection Caramel Hazelnut Fudge Truffle Ice Cream sold in 31 states.

The products may contain egg, an allergen not declared on the label.

No customer illnesses have been reported to date.

The recalled Private Selection Hazelnut Mascarpone Ice Cream, sold in 16 fluid ounce packages with a of UPC 1111052101, was distributed to Kroger stores in Alabama, Arkansas, Georgia, Illinois, Indiana, Kentucky, Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Texas, Virginia and West Virginia; Dillons and Gerbes stores in Kansas and Missouri; Baker's stores in Nebraska; Fred Meyer stores in Alaska, Idaho, Oregon and Washington; Fry's stores in Arizona; King Soopers and City Market stores in Colorado, New Mexico, Utah and Wyoming; Owen's, Pay Less and Scott's stores in Illinois and Indiana; Ralphs stores in California; Smith's stores in Arizona, Idaho, Montana Nevada, New Mexico, and Utah; and QFC stores in Oregon and Washington.

The recalled Private Selection Caramel Hazelnut Fudge Truffle Ice Cream, sold in 16 fluid ounce packages with a of UPC 1111052100, was distributed to Kroger stores in Alabama, Arkansas, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Virginia and West Virginia; and Owen's, Pay Less, Scott's, and Food 4 Less stores in Illinois and Indiana.

Customers should return the product to stores for a full refund or replacement.

Consumers with questions about this recall may contact Kroger toll-free at 800-KROGERS (800-576-4377).  

When a consumer fails to pay a debt, the creditor will eventually turn the matter over to a collection agency, which focuses on collecting the money owed. While it isn't very pleasant for the consumer, it's the way the system works, as long as the debt collector follows the rules.

When the collection efforts are unsuccessful, the creditor eventually writes the debt off its books. At that point, a debt collector often steps in and purchases the “bad debt” for pennies on the dollar.

If the debt collector is successful at collecting the full amount for an account it purchased for pennies, it stands to make a lot of money. In fact, the Center For Responsible Lending (CRL) says debt collection company revenue rose 600% between 2003 and 2012.

Nolen, of Marietta, Ga., is just one consumer who has experienced this. In a recent ConsumerAffairs post, he said there was a 5-year old charge on his AT&T bill that he disputed. He never paid it.

“Enhanced Recovery bought the paper February 2014 and immediately reported the charge as a collection, in the process dropping my credit score 100 points,” he wrote. “I learned of this action in March of 2014 after this reported collection had reduced my credit score. Now this company calls me 6 days a week at 8:30 with threats.”

At a disadvantage

If the AT&T charge was, in fact, legitimate then Nolen has few alternatives. AT&T is no longer the creditor, Enhanced Recovery is, since it bought the account and is no longer bound by many of the provisions of the Fair Debt Collection Practices Act.

As buying and collecting old debt becomes a growing practice, CRL says abusive and predatory practices have proliferated, with companies trying to collect debt consumers say they do not owe. One of the most high-profile cases involved defunct video rental chain Hollywood Video.

In 2011 thousands of former customers began getting collection calls for money they insisted they did not owe. The outcry was so loud that various state attorneys general stepped in to resolve the matter.

Unfortunately for consumers not involved in high-profile collection cases, there are few protections when a debt collector has purchased the old debt and has become the creditor. CRL says there should be.

Thin on documentation

In a report CRL cites an FTC analysis that found only 6% of debt accounts purchased by some of the largest debt buyers in 2009 came with any documentation. In other words the debt collectors bought old debt without having any proof that it existed.

CRL says debt buyers and collectors take advantage of financially-distressed consumers and extract billions of dollars in judgments for debts that may not even be owed. In many cases, it says the only information transferred is a name, last known address, and purported amount owed.

However thin the debt information may be, CRL says it’s all that’s necessary to begin collection attempts. Common complaints from consumers include misrepresentation about the amount or legal status of the debt, harassment and excessive contact, obscene or abusive language, and unlawful threats to sue.

Using the justice system

In fact, debt collection cases can quickly escalate. The report shows that more and more debt buyers are going to court, suing consumers for debts owed and obtaining default judgments in their favor when consumers fail to appear in court.

Why wouldn't a consumer show up in court if the facts are on their side? According to CRL, consumers often fail to appear because they never received notice of the lawsuit, can’t afford legal representation, or simply don’t understand the situation.

With a default judgment in hand, a debt collector can then freeze a consumer’s bank account, garnish wages, report the judgment to a credit reporting agency, and pressure a consumer into a payment plan.

At the most extreme, collectors in some states can have consumers arrested for lack of payment or seize personal property to satisfy a default judgment.

Solvable problem

What's CRL's answer? Better oversight at the federal and state levels to make sure that when a debt collector comes calling, it's for a legitimate debt and that they follow the rules.

“We are not suggesting the dismissal of debt,” said Mike Calhoun, president of CRL. “Ensuring that debt is collected when owed is an integral component of the American financial system, and makes access to credit possible. What we’re seeing is a pattern of predatory practices when it comes to some kinds of debt buying and collection – and that’s what is concerning.”

Calhoun says while a creditor has a right to be paid money it is owed, borrowers should have the right to information about their debt and how it’s being handled and collected.

“With prudent oversight at the federal and state levels, there’s no reason why this problem can’t be fixed,” he said.

There's an old joke about how a pessimist will say a glass is half-empty whereas an optimist says it's half-full. Either way, it's hard to look at the glass and say objectively which interpretation is correct.

You can perhaps find a similar “half-full, half-empty, not sure if good news or bad” vibe in this Washington Post report that tech companies including Apple and Facebook are now defying government authorities by notifying users of “secret data demands:”

“Major U.S. technology companies have largely ended the practice of quietly complying with investigators’ demands for e-mail records and other online data, saying that users have a right to know in advance when their information is targeted for government seizure. … Fueling the shift is the industry’s eagerness to distance itself from the government after last year’s disclosures about National Security Agency surveillance of online services. Apple, Microsoft, Facebook and Google all are updating their policies to expand routine notification of users about government data seizures, unless specifically gagged by a judge or other legal authority.”

The glass-half-empty pessimist might say “Okay, so ever since whistleblower Edward Snowden released certain documents, we've known that the NSA is pretty much spying on all Americans, despite Fourth Amendment prohibitions against such behavior, and the major tech companies have been quietly going along with this.” But then the half-full optimist can respond “Yeah, but from now on, at least the tech companies say they'll let us know about it. Unless of course the government goes through the trouble of getting a gag order first.”

Gag orders

In January 2014, for example, Bit-tech News, reporting on a then-current news story, said that “Apple has denied claims that its software comes with a built-in back-door at the request of the National Security Agency (NSA), but admits that it operates under a gagging order that prevents it from revealing too much about its work with the spook outfit.”

So we know Apple's doing “something” with the NSA, but we don't know what and they're not allowed to tell us. Not that Apple is in any way unique; in June 2013, for example, Google made headlines after going to court in an attempt to overturn a gag order requiring it to keep silent regarding exactly what information it was being forced to turn over to the Foreign Intelligence Surveillance Court.

The gag order rules were “relaxed” this past February, when various tech companies were allowed to at least announce the scope of various NSA requests. Yahoo, for example, announced that during the period from January to June 2013 it provided content on “somewhere between 30,000- 39,999 accounts,” and Facebook “somewhere between 5,000-5,999 accounts.”

Serious privacy risks

Coincidentally, the Washington Post story about tech companies fighting back against the indiscriminate government collection of data came out on May 1, the same day Politico reported that, according to a just-released three-month study sponsored by the White House, Americans face serious privacy risks if big businesses are allowed to indiscriminately collect all their data.

Of course, the White House study said nothing about any privacy risks if big businesses are required to indiscriminately collect Americans' data on behalf of the government, then forbidden to let anybody know about it.

In a rather unusual maneuver, General Motors is arguing that owners of cars with defective ignition switches should drop their 59 lawsuits against the automaker within 10 days. 

This may sound like an unarmed person saying to someone with a large club: "You'd better drop that club right away or you'll be sorry." Except that in this case, federal judges in Texas and California have already put the suits on hold pending a ruling on whether the claims are permitted.

General Motors' contention is that its bankruptcy reorganization in 2009 renders it immune from lawsuits for cars manufactured by its predecessor, "Old GM." 

Expedited ruling

The company has asked U.S. Bankruptcy Judge Robert Gerber in Manhattan for an expedited ruling on whether the claims are proper. It has also asked that if the customers filing suits don't withdraw them voluntarily, they should be required to file arguments by May 25 explaining why the claims shouldn't be dismissed. 

A blizzard of class actions, mass tort and personal injury suits have been filed against General Motors since it was revealed that millions of Chevrolets, Saturns and other cars contain defective ignition switches that can cause the engine to turn off while the car is being driven, leaving the occupants without functioning airbags. 

At least 13 deaths have been blamed on the defect.

A recall campaign is underway and replacement parts began arriving at dealerships late last week.  

When penicillin was introduced in 1930, it was considered a “miracle drug.” Infections that routinely killed people were suddenly wiped out with this antibiotic.

Since then there have been many new antibiotics hitting the market, each one more powerful than the next. They began to be prescribed for all kinds of ailments, whether they were life-threatening or not.

In recent years scientists warned that overuse of antibiotics would eventually lead to a super strain of bacteria that could resist the most powerful antibiotics. The World Health Organization (WHO) now says that day has arrived.

A new WHO report cites evidence of antibiotic resistance in every region of the world. Scientists say it is now a major health threat.

“Without urgent, coordinated action by many stakeholders, the world is headed for a post-antibiotic era, in which common infections and minor injuries which have been treatable for decades can once again kill,” said Dr. Keiji Fukuda, WHO’s Assistant Director-General for Health Security.

A path to the past

The evolution of effective antibiotics has allowed people to live longer, live healthier, and benefit from modern medicine. Now, scientists say we are on a path to the past, when there were no antibiotics and anything from a scratch to a case of the flu could be fatal.

Of most concern at present are seven different bacteria responsible for common, serious diseases such as bloodstream infections (sepsis), diarrhea, pneumonia, urinary tract infections and gonorrhea. These bacteria appear to have made the most progress in developing resistance to antibiotics.

The report says that in some countries, because of resistance, the strongest antibiotics are ineffective in more than half of people treated for a type of pneumonia.

Devastating implications

“Unless we take significant actions to improve efforts to prevent infections and also change how we produce, prescribe and use antibiotics, the world will lose more and more of these global public health goods and the implications will be devastating,” Fakuda said.

In particular, WHO scientists have found resistance to one of the most widely used antibacterial medicines for the treatment of urinary tract infections caused by E. coli–fluoroquinolones is very widespread.

As recently as the 1980s, when these drugs were first introduced, resistance was virtually zero. Today, there are countries in many parts of the world where this treatment is now ineffective in more than half of patients.

Defenseless against gonorrhea

Failure of once-reliable antibiotics to treat gonorrhea has been confirmed in Austria, Australia, Canada, France, Japan, Norway, Slovenia, South Africa, Sweden and the United Kingdom.

Scientists say that's worrisome because more than 1 million people are infected with gonorrhea around the world every day. Despite the dire circumstances, the report says it's not too late to turn things around.

From a health policy standpoint, the report urges governments to take action to prevent infections from happening in the first place -- through better hygiene, access to clean water, infection control in health-care facilities, and vaccination -- to reduce the need for antibiotics.

There are also steps individuals can take. They include:

• Only used antibiotics prescribed by a doctor
• Complete the full prescription, even if you feel better
• Never share antibiotics with others

A class action antitrust suit charges that Google uses its Android system to abuse its alleged monopoly in search engines and handheld wireless devices.

According to the suit, Google places Google Play, YouTube and other apps onto devices running the Android OS, a practice that it says has hampered the market and kept the price of devices made by competing device manufactures like Samsung and HTC artificially high.

“It’s clear that Google has not achieved this monopoly through offering a better search engine, but through its strategic, anti-competitive placement, and it doesn’t take a forensic economist to see that this is evidence of market manipulation,” said Steve Berman, an attorney representing the plaintiffs. “Simply put, there is no lawful, pro-competitive reason for Google to condition licenses to pre-load popular Google apps like this.”

The complaint claims that if device manufacturers bound by Google’s distribution agreements were free to choose a default search engine other than Google, the overall quality of Internet search would improve.

Cynical scheme

“The more use an internet or mobile search engine gets, the better it performs based on that use,” Berman said. “Instead of finding a way to legitimately out-compete other internet and mobile search providers, [Google] instead decided to choke off competition through this cynical, anti-consumer scheme.”

The lead plaintiffs -- Gary Feitelson, of Kentucky, and Daniel McKee, of Iowa -- sued Google under the Sherman and Clayton Acts, the California Cartwright Act and California's unfair competition law, Courthouse News Service reported.

“This comes down to a combination of Google’s power in the U.S. general mobile search market and their power in the realm of tablet and smartphone manufacturers,” Berman said. “As a result of the pricing conspiracy, everyone loses. Google and its competitors face an uncompetitive, stagnant market, and consumers are forced into one option.”

Minor adjustments to the Consumer Financial Protection Bureau's (CFPB) mortgage rules are being proposed in order to ensure access to credit.

The proposal includes two changes that would help certain nonprofits continue to provide mortgage credit and servicing to underserved populations. It also lays out limited circumstances where lenders that exceed the points and fees cap can refund the excess amount to consumers and still have the loan be considered a Qualified Mortgage.

“Our mortgage rules are now helping to protect consumers all across the country from debt traps, runarounds, and surprises,” said CFPB Director Richard Cordray. The new proposal, he says, “would maintain those strong protections, while making minor changes to ensure consumers have access to credit. This includes helping nonprofits that provide working families with important pathways to affordable home ownership.”

Tweaking the rule

In January 2013, the CFPB completed work on several mortgage rules, most of which took effect in January 2014. Among these rules, the Ability-to-Repay rule protects consumers from irresponsible mortgage lending by requiring that lenders generally make a reasonable, good-faith determination that prospective borrowers have the ability to repay their loans. The mortgage servicing rules establish strong protections for homeowners, including those facing foreclosure.

The proposed amendments respond to concerns about origination and servicing issues, particularly for nonprofit housing providers. Among the provisions:

• Defining nonprofit small servicers: Certain small servicers are exempt from some of the CFPB’s new mortgage servicing rules, so long as they service 5,000 or fewer mortgage loans and meet other requirements. But the agency has learned that some nonprofit organizations may service loans, for a fee, from other associated nonprofit lenders. Because of their unique structure, these organizations may not be able to consolidate their servicing activities and still meet the current requirements for the small servicer exemption. Accordingly, the proposal offers an alternative definition of a small servicer that would apply to certain 501(c)(3) nonprofit organizations so that they can continue to consolidate their servicing activities while maintaining their exemption from some of the servicing rules.
• Nonprofit Ability-to-Repay exemption amendment: Certain nonprofit organizations that lend to low- and moderate-income consumers are already exempt from the Ability-to-Repay rule if the organization makes no more than 200 mortgages a year, among other limitations. The proposal would carefully tailor an amendment to this provision so that certain 501(c)(3) nonprofit groups, such as Habitat for Humanity, can continue to extend certain interest-free, forgivable loans, also known as “soft seconds,” without regard to the 200-mortgage loan limit.
• Refunding excess points and fees: Under the Ability-to-Repay rule, certain loans called Qualified Mortgages (QM) are subject to special consumer protections. The points and fees charged to a consumer on a QM generally cannot exceed 3% of the loan principal. If a lender believes it has offered a QM but afterward discovers that it has exceeded the 3% cap, the proposal lays out limited circumstances where the excess can be refunded to still have the loan meet the legal requirements of a QM. The refund must occur within 120 days after the loan is made. The creditor must also maintain and follow policies and procedures for reviewing the loans and providing refunds to consumers. The proposal is designed to encourage lenders to provide access to credit to consumers seeking loans that are at or near the points and fees limit.

The proposal is drawing praise from the Mortgage Bankers Association.

President and CEO David H. Stevens calls it “a positive development for consumers because it would allow lenders to extend safe, sustainable Qualified Mortgage (QM) loans to considerably more qualified borrowers.”

Stevens says the MBA looks forward to working with the CFPB "to ensure that these proposals work to benefit consumers to the greatest extent possible.”

Looks like the economy revved up in April as total nonfarm payroll employment rose by 288,000, while the jobless rate fell by 0.4% to 6.3%.

Figures released by the Labor Department show the employment gains were widespread, led by growth in professional and business services, retail trade, food services and drinking places, and construction.

At the same time, though, the civilian labor force dropped by 806,000, after increasing by 503,000 in March. That pushed the labor force participation down 0.4% -- to 62.8% in April. The participation rate is the same as it was this past October, while employment-population ratio at 58.9% has changed little over the year.

The official government employment gain figure was well above the 220,000 reported earlier in the week by ADP and the Briefing.com consensus of 210,000.

Who's hiring

Professional and business services led the April increase, adding 75,000 jobs in April, while retail trade employment rose by 35,000. Other large contributors were food services and drinking places (+33,000), construction (+32,000), health care (19,000) and mining (+10,000).

Employment in other major industries, including manufacturing, transportation and warehousing, information, financial activities, and government, was little-changed over the month.

Who's working

Among the major worker groups, unemployment rates declined in April for adult men (5.9%), adult women (5.7%), teenagers (19.1%), whites (5.3%), blacks (11.6%), Hispanics (7.3%) and Asians (5.7 percent).

In April, the number of unemployed reentrants and new entrants declined by 417,000 and 126,000, respectively. The number of job losers and people who completed temporary jobs decreased by 253,000 to 5.2 million.

The number of long-term unemployed (those jobless for 27 weeks or more) declined by 287,000 in April -- to 3.5 million; these individuals accounted for 35.3% of the unemployed. Over the past 12 months, the number of long-term unemployed has fallen by 908,000.

The full April employment report is available on the Bureau of Labor Statistics website.

Personal incomes-spending

In other economic news, the government reports personal income increased rose 0.5% in March or $78.4 billion, while consumer spending, or personal consumption expenditures (PCE) jumped $107.2 billion, or 0.9% -- the bigest monthly gain since August 2009.

Disposable personal income (DPI) -- personal income less personal current taxes -- increased $68.0 billion, or 0.5%.

Wages and salaries

Private wages and salaries increased $42.3 billion in March, after rising just $17.4 billion in February. Payrolls of goods producing industries were up $10.4 billion, while manufacturing payrolls increased $7.0 billion.

Services-producing industries' payrolls increased $31.8 billion, and government wages and salaries rose $0.9 billion.

Spending and saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $109.7 billion in March, nearly double the increase of $57.2 billion in February.

Personal saving -- DPI less personal outlays -- was $487.7 billion in March, while the personal saving rate -- personal saving as a percentage of disposable personal income -- fell from 4.2% in February to 3.8%.

The complete incomes and savings report for March is available on the Commerce Department website.

Honda is recalling 24,889 model year 2014 Odyssey vehicles manufactured October 2, 2013, through December 16, 2013.

The shorting terminal, an electrical connector used to prevent air bag deployment before being installed into a vehicle, may have been damaged during assembly of the passenger-side side curtain air bag. The damage could cause failure of the passenger-side side curtain to deploy, increasing the risk of occupant injury in a crash.

Honda will notify owners, and dealers will replace the damaged shorting pin with a new shorting coupler, free of charge. The recall is expected to begin in early May 2014.

Owners may contact Honda at 1-800-999-1009. Honda's number for this recall is JE2.