Current Events in May 2015

FCA Chrysler is recalling 43,750 model year 2006 Dodge Viper and Jeep Wrangler and Liberty vehicles manufactured July 1, 2005, to July 31, 2006.

The springs within the clutch pedal position switch that prevents the vehicle from starting unless the clutch pedal is pushed down may break. As a result, the vehicle may not be started when the clutch pedal is pushed down or the engine may crank and start without the clutch pedal being pushed down causing the vehicle to lurch unexpectedly.

An unexpected movement could increase the risk of a crash.

Chrysler will notify owners, and dealers will replace the clutch ignition interlock switch, free of charge. Parts are currently unavailable. Owners will be mailed an interim notification beginning in June 2015, and receive a second notification when remedy parts are available.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R13.

General Motors is recalling 3,690 model year 2013 Chevrolet Malibus manufactured April 10, 2012, to August 2, 2012.

The console transmission gear selection indicator in the affected vehicles may not illuminate the shift position selected. As a result, the driver could inadvertently select a transmission position other than the intended one, increasing the risk of a crash.

GM has notified owners, and dealers will replace the transmission gear selection control module, free of charge. The recall began on April 20, 2015.

Owners may contact Chevrolet customer service at 1-800-222-1020. GM's number for this recall is 12162.

Since the financial crisis of 2008, fewer people have purchased homes and more, either by necessity or choice, have rented their homes. With demand increasing faster than supplies of available property, rents have skyrocketed, especially in expensive housing markets.

In the San Francisco Bay Area, rents are up a staggering 14.8% year-over-year, according to the real estate site Zillow. Nationwide, rents are up just under 4%.

Make Room, a non-profit group focusing on rental affordability, estimates more than 11 million families, or 1 in 4 of the 42 million U.S. renter households, spend at least half their income on rent. It bases its claim on an analysis of U.S. Census data.

Little left over

With half of income going to pay the rent, that leaves little for the rest of life's necessities, such as groceries, health care and child care.

The rental situation in the U.S. is a crisis, the group says, and is getting worse.

“The lack of rental homes is pervasive and affects working families, seniors and children across America, said Angela Boyd, vice president of advocacy at Enterprise Community Partners. “No community – be it urban, suburban or rural – is immune.”

The analysis of 2013 Census data finds rent shock is most severe in Florida, New Jersey, California and New York. In those states, 30% of renters pay at least half of their income toward housing costs, including rent and utilities.

But even in traditionally more affordable markets in Ohio, Alabama, Maine and Tennessee, the group says about a quarter of the people renting their homes pay more than half their income to do so.

Credit and finances a barrier to buying

A recent Zillow report shows buying a home is becoming a much better deal in more and more housing markets. But the company says a survey of renters found half reporting that either their credit or finances prevented them from becoming homeowners.

Eighteen percent said they can't afford taxes, maintenance and other costs associated with homeownership, while 13% said they don't have enough savings for a down payment. About a quarter said they struggle, as it is, to pay their rent.

The survey also showed that 82% of renters are long-term renters, and 57% are long-term renters who have lived for a long time in the same home. Under normal circumstances, these are the people that eventually become first-time home buyers.

Not simple math

"If the buy versus rent decision were about simple math, we'd likely have millions more homebuyers in the market, because the equation is tilted heavily in favor of buying," said Zillow Chief Economist Dr. Stan Humphries.

Humphries says there is no right or wrong choice when it comes to buying or renting, but says the survey demonstrates that a lot of renters who might be better off financially as homeowners are still shut out of the market.

Among the top 35 metro areas in the U.S., the Dallas-Fort Worth market showed the fastest rate in which a home buyer reached the break-even point over renting – 1.2 years. Indianapolis and Detroit were next at 1.3 years. The national average is 1.9 years.

Concussions are a serious issue for high school football players and not just during games. A new study finds that more than half -- 57% -- of high school and college football player concussions studied occurred during practice.

The researchers say their findings should be a call for action.

"Concussions during practice might be mitigated and should prompt an evaluation of technique and head impact exposure. Although it is more difficult to change the intensity or conditions of a game, many strategies can be used during practice to limit play-to-player contact and other potentially injurious behaviors,” the authors of the study said.

Thomas P. Dompier, of the Datalys Center for Sports Injury Research and Prevention Inc., and his team collected data from over 20,000 athlete seasons to see how much of an effect concussions had on athletes from youth to college levels. An athlete season is defined as one player participating in one season of a sport.

High school most dangerous

The study found that high school players were much more likely to suffer concussions than youth- or college-level players. 

There were 1,198 concussions reported during the 2012 and 2013 seasons. Of this number, 141 (11.8%) occurred at the youth level, 795 (66.4%) occurred at the high school level, and 262 (21.9%) occurred at the college level. At each level, concussions accounted for 9.6%, 4%, and 8% of all injuries, respectively.

While 53.9% of concussions happened during games at the youth level, roughly 57% of all concussions at the high school and college levels happened during practice.

“The rate of concussion in youth players was generally not different from those in high school and college players compared with other injuries. However, football practices were a major source of concussion at all three levels of competition," the researchers said. 

The study was published by JAMA Pediatrics and is available to the public. 

It's not enough that millions of Americans are struggling under $1.2 trillion in student loan debt. They often must must try to avoid getting taken by bogus offers of relief.

Any offer of relief can be very tempting for someone who has run out of options. Illinois Attorney General Lisa Madigan says this has drawn the attention of numerous scammers who make big promises in return for big fees, but deliver nothing but disappointment.

Madigan has filed suit against five companies she says charged student loan borrowers hundreds to thousands of dollars in upfront fees with false promises. She says the promises suggested that the debt load could be reduced, or forgiven entirely, under programs endorsed by President Obama’s administration.

The suits were filed against:

• Consumer Financial Resources LLC, of Texas, which operated as Student Loan Resolve
• Federal Student Loan Alliance LLC, based in California
• Interactiv Education LLC, based in Florida, that operated as Direct Student Aid
• Chicago-based Nationwide Student Aid
• Student Consulting Group Inc., based in Georgia, that solicited consumers as University of One and Help Assist Me Default Resolution Services

The approach

The lawsuits paint a picture of a highly deceptive approach. The state says the companies run heavy marketing campaigns, claiming expertise and offering loaded-down borrowers several options to ease their debt burden.

In reality, Madigan alleges, the companies she named in the suit try to persuade desperate people to pay as much as $1,250 upfront for services she describes as “bogus.” These often include enrolling in loan forgiveness programs for public service employees, including teachers, nurses, police officers, firefighters and employees of non-profit organizations.

In many cases, she says, the companies hold out the possibility of complete debt relief without even looking at borrowers’ individual situations, to determine whether they are eligible for the programs. Seldom, she says, is there any explanation of all the required steps borrowers must take to qualify for loan forgiveness.

Proof of the problem

“These scams are proof that the rate of student loan debt in this country has skyrocketed, and it has already destabilized the financial security of millions of people across the country,” Madigan said. “When people cannot make their loan payments, they don’t get to build the future that they dreamed about when they went to college. We cannot allow these scams to continue.”

This isn't the first time the Illinois Attorney General has taken on companies promising student loan debt relief. Last July she sued 2 other companies – First American Tax Defense LLC and Broadsword Student Advantage LLC, charging them with deceptive marketing practices and illegally charging consumers hundreds in upfront fees to reduce or eliminate their student loan debt burden.

The student loan debt settlement industry appears to be a new incarnation of the debt settlement industry that most recently targeted homeowners in distress. In 2011 six defendants agreed to settle Federal Trade Commission (FTC) charges that they participated in a fraudulent mortgage modification and foreclosure relief scheme.

Under that settlement five defendants were ordered to pay back money they collected and all 6 were permanently banned from selling any mortgage assistance or debt relief products.

Meanwhile, consumers looking for options when it comes to repaying student loan debt might want to start with the federal Consumer Financial Protection Bureau.

Many parents may remember a time when they dreaded putting their child down to bed. When they are young, many children go through a sleepwalking phase or experience night terrors that make them inconsolable.

While these problems are fairly common, the scientific community has never pinned down exactly why these things happen in the first place. Well, a new study conducted in Canada says that it may have to do with genetics.

Dr. Jacques Montplaisir, of Hopital du Sacre-Coeur de Montreal, has theorized that children may inherit their sleeping problems from their parents. His study analyzed sleep data from 1,940 children born in the province of Quebec.

All children were born between 1997 and 1998, and their sleep patterns were studied from 1999 to 2011. The researchers assessed sleepwalking and night terrors through questionnaires and parental sleepwalking was taken into account.

Sleepwalking, sleep terrors

The results of the study revealed correlations between sleepwalking and sleep terrors. The data showed that children who had sleep terrors during early childhood (1 ½ to 3 ½ years old) were about 15% more likely to sleepwalk later in childhood.

These odds increased dramatically if the child’s parents had a history of sleepwalking when they were young. Children who had one parent who was a sleepwalker were three times more likely to sleepwalk themselves. If both parents were sleepwalkers, children were seven times more likely to be sleepwalkers.  

The study concludes by offering an explanation about the root cause of sleepwalking. Researchers believe that their data points to “a strong genetic influence on sleepwalking and, to a lesser degree, sleep terrors. This effect may occur through polymorphisms in the genes involved in slow-wave sleep generation or sleep depth.”

They caution that parents who have been sleepwalkers in the past should count on their children to be sleepwalkers as well. The full study has been published in JAMA Pediatrics, and contains detailed statistics on the researchers’ findings.

Economic activity in the manufacturing sector grew in April for the 28th consecutive month, with the overall economy growing for the 71st month in a row.

According to the latest Manufacturing Institute for Supply Management (ISM) report on business, the April Purchasing Managers Index (PMI) was 51.5%, the same as in March, while the New Orders Index registered 53.5% -- an increase of 1.7% from March.

The Production Index came in at 56%, 2.2% above the 53.8% posted in March. The Employment Index was down 1.7% at 48.3 % reflecting contracting employment levels from March.

Inventories of raw materials dropped 2% from March to 49.5%, and the Prices Index registered 40.5% -- up 1.5%, indicating lower raw materials prices for the sixth consecutive month.

While the March and April PMI both registered 51.5%, 15 of the 18 manufacturing industries reported growth in April while only 10 industries reported growth in March, indicating a broader distribution of growth in April among the 18 industries.

Broad-based growth

Of the 18 manufacturing industries, 15 reported growth in April in the following order:

• Nonmetallic Mineral Products
• Plastics & Rubber Products
• Wood Products
• Printing & Related Support Activities
• Furniture & Related Products
• Fabricated Metal Products
• Food, Beverage & Tobacco Products
• Paper Products
• Miscellaneous Manufacturing
• Machinery
• Transportation Equipment
• Textile Mills
• Electrical Equipment, Appliances & Components
• Chemical Products and
• Primary Metals.

The two industries that reported contraction in April were Apparel, Leather & Allied Products and Computer & Electronic Products.

The ISM will release its April report on the services sector of the economy Tuesday.

Sun Rich Fresh Foods of Richmond, Canada, is recalling sliced apple and products containing sliced apples, from its Northeast Fresh Facility located in Brampton, Canada.

The products may be contaminated with Listeria monocytogenes.

Apple slices and products containing sliced apples were distributed to retail stores, distributors and food service establishments in Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, North Dakota, Ohio and Wisconsin.

The recall is limited to product produced out of the Brampton, Canada, facility, which is identified by a 7-digit numerical lot code that begins with the number 2.

If you have recalled products in your home or establishment, dispose of them or return them to the place of purchase.

Consumers with questions may contact the company at 1-800-661-0087 between 8am – 7pm EST, Monday – Sunday.

Victory Kitchens of Toronto, Ontario, Canada, is recalling approximately 4,672 pounds of chicken noodle soup products.

The products contain chicken from a country that is not eligible to send product to the U.S.

There are no reports of adverse reactions due to consumption of these products.

The following frozen chicken noodle soup items, produced on February 5, 2014, April 1, 2014, and September 11, 2014, are being recalled:

• Boxes of “Chicken Noodle Soup” product code VK-HALCHX (four units per box).

The recalled products bear the establishment number “I-422” inside the USDA FSIS mark of inspection on the outside box and the establishment number “Est. 711” inside the CFIA mark of inspection on the immediate container.

The products were exported to Sharjah, United Arab Emirates and were not distributed in the U.S.

Consumers with questions about the recall may contact Allan Kliger at (416) 766-5848.

IKEA North America Services of Conshohocken, Pa., is expanding an earlier recall of crib mattresses.

About 344,000 mattresses are being recalled in the U.S. and Canada. About 169,000 VYSSA crib mattresses and about 175,000 SULTAN crib mattresses were recalled in the U.S. and Canada in January 2015.

The mattresses could create a gap between the mattress and crib ends larger than allowed by federal regulations, posing an entrapment hazard to infants.

The firm has received 2 reports of infants becoming entrapped between the mattress and an end of the crib. The children were removed from the gap without injury.

This recall involves IKEA SULTAN and VYSSA crib mattresses with the following model names:

• SULTAN BLUNDA
• SULTAN DROMMA
• SULTAN SNARKA
• SULTAN SUSSA
• VYSSA VACKERT
• VYSSA VINKA
• VYSSA SPELEVINK
• VYSSA SLOA and
• VYSSA SLUMMER.

The recalled mattresses are 52 inches long and 27 ½ inches wide and were manufactured on May 4, 2014 or earlier. An identification label attached to the mattress cover has the date of manufacture in Month-DD-YY format or YY-WW format and the SULTAN or VYSSA model name. In the YY-WW format, mattresses with a date code of 14-18 or earlier are being recalled.

A gap between the mattress and crib ends larger than two finger width is an indication of the defective mattress.

The mattresses, manufactured in Mexico, Poland, China and the U.S., were sold exclusively at IKEA stores nationwide and online at www.ikea-usa.com from October 2000 to May 2014, for about $20 to $100.

Consumers should immediately stop using a recalled mattress and inspect it by making sure there is no gap larger than the width of two fingers between the ends of the crib and the mattress. If any gap is larger, customers should immediately stop using the recalled mattresses and return it to any IKEA store for an exchange or a full refund.

Consumers may contact IKEA toll-free at (888) 966-4532 anytime.

Ford Motor Company is recalling 487,301 model year 2013-2015 Ford Fusion and Lincoln MKZ vehicles manufactured February 3, 2012, to March 20, 2015, and 2015 Ford Edge vehicles manufactured February 26, 2015, to February 28, 2015.

The vehicles were originally sold, or are currently registered in, Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin and the District of Columbia.

Snow or water containing road salt or other contaminants may corrode the electric power steering gear motor attachment bolts.

If the bolts corrode, the steering gear motor may detach from the gear housing resulting in a loss of power steering assist. Loss of power steering assist would require a higher steering effort, especially at lower speeds, which may increase the risk of a crash.

Ford will notify owners, and dealers will apply sealer and replace the steering gear motor bolts as required. If one or more of the steering gear motor attachment bolts are broken or missing, a new steering gear will be installed in the vehicle. These repairs will be performed free of charge.

The recall is expected to begin June 22, 2015. Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 15S14.

Felt Bicycles of Irvine, Calif., is recalling about 200 Felt Cruiser bicycles

The bicycle’s brakes can fail, posing a crash hazard.

The company has received 26 reports of incidents with the recalled bicycles. No injuries have been reported.

This recall involves beach cruiser style Felt Deep Six and El Guapo model bicycles with one speed and coaster brakes. “Felt” and “Deep Six” or “El Guapo” are printed on the bicycle’s frame.

The Deep Six was sold in black cherry with white sidewall tires and the El Guapo was sold in matte black with white tires. The Deep Six has a serial number between YI31106188 and YI31106287. The El Guapo has a serial number between YI31106288 and YI31106387. The serial number is printed on the bicycle’s bottom bracket.

The bicycles, manufactured in Taiwan, were sold at bicycle specialty stores nationwide from June 2014, through March 2015, for between $600 and $750.

Consumers should immediately stop using the recalled bicycles and contact their local Felt bicycle dealer for a free inspection and replacement of the rear hub cog/driver.

Consumers may contact Felt Bicycles toll-free at (866) 433-5887 from 8 a.m. to 5 p.m. PT Monday through Friday.

Since the U.S. economy bottomed at the end of the Great Recession in the third quarter of 2009, it has failed to generate much of a rebound.

There have been only 4 quarters where economic growth exceeded 4%. There have been 2 quarters of negative growth and 2 quarters when there was barely any growth at all.

One of those was the just-ended first quarter of 2015, when the government reported this week that the economy grew by a measly 0.2%. This, in spite of retail gasoline prices around $2 a gallon for months.

A new report from Bank of America may help explain why.

Still recovering

In its annual small business survey, the bank asked small business owners if they believe they have recovered from the Great Recession. Only 21% said that they had.

Since millions of Americans work for small businesses – defined as those that employ fewer than 500 people -- it might help explain why consumers in general have been struggling since the financial crisis nearly 7 years ago.

The report found that the people who own small businesses have been working longer hours, forgoing raises for their employees and delaying their own compensation as they focus on rebuilding their businesses and rewarding repeat customers.

If employees are going longer without increases in compensation, it may be small consolation that the owner is doing the same thing. But according to the survey 67% of small business owners said they would rather delay or reduce their own compensation than take any other course of action to make ends meet.

No raise in 2 years

In fact, more than half said they have either never given themselves a raise, or haven’t done so in more than 2 years.

In order to keep their businesses going, 85% of small business owners work more than 40 hours per week on average. Thirty percent of respondents work more than 60 hours per week on average.

There are jobs available at many small businesses but owners often struggle to come up with salaries that are able to attract the people they need. Forty-five percent of owners said prospective employees declined job offers because the salary was too low.

Hiring expectations, meanwhile, are moving in the wrong direction. The Bank of America report found 46% of small business owners plan to hire additional employees over the next 12 months, down from 52% a year ago. Again, one reason cited for the decline is the inability to offer a competitive wage.

Similar trend

The National Federation of Independent Businesses (NFIB) has noted a similar trend. In March it found a 2 point decline in the number of small businesses planning to create new jobs.

With an estimated 150 million Americans working for small businesses, when a small business struggles, so do consumers.

As Baby Boomers become grandparents, it means Millennials are becoming parents. In 2014, there were approximately 20.5 million parents 18 to 34 years old, making up nearly 30% of the Millennial population.

It's a natural part of the generational lifecycle and the children of Boomers are now having children of their own. Only something isn't quite right with this picture.

While it's true that young families have usually had to struggle to get ahead, this generation – coming of age in the wake of the financial crisis – appears to face an economic hill much steeper than recent generations.

Highest poverty rate in quarter century

A new analysis of U.S. Census data shows the depth of the problem. One out of 5 Millennial parents today lives in poverty. The survey found today's young parents are experiencing the highest poverty rates seen by any young parents over the last quarter century.

Young Invincibles, a non-profit advocacy group for young Americans, uncovered the poverty data in a study aimed at learning how Millennials cope with the demands on their time.

In their research they found Millennials face an unemployment rate that is over 40% higher than the national average, are seeing paychecks shrink, and face the prospect of repressed wages for years to come.

“They graduated from college with historically high student debt and have the lowest health insurance rate,” the authors write. “They are the first generation in modern history to have higher poverty rates and lower incomes than their two preceding generations. Add a child into this mix and the challenges mount further.”

Work harder, make less

Millennials with children typically work more hours than non-parents, but the authors say their inability to find a flexible work schedule can make career advancement difficult.

Then there is the cost of raising a child on wages that are often stagnant, at best. Raising children while trying to get an education adds even more pressure. The study finds young parents have a hard time caring for dependents, working to afford skyrocketing college costs, and finding time to study.

“Taken together, these economic challenges compound to devastating effect,” the authors write.

Childcare costs

Childcare costs, by themselves, can be staggering. The report finds childcare costs varying dramatically by geography, ranging from $4,515 per year in Tennessee to $12,320 per year in Massachusetts.

The report quotes a young mother from Washington, DC as saying she had to sacrifice the quality of her childcare, simply because she could not afford better care.

“Good places do not have open spots; the good places that do are very expensive,” she told Young Invincibiles.

The group's policy recommendations include finding ways to give Millennial parents a little more breathing room, primarily in 3 areas. The report calls for public policies that help young parents balance a demanding workplace, scarce time, and skyrocketing education and childcare costs.

The first step, it says, is finding ways to make “childcare more accessible and affordable, work more flexible, and education more achievable.”