Current Events in August 2015

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    10 best new car deals in August

    Kelley Blue Book rates the best leases, incentives, and financing

    August is typically a good month to buy a new car. Manufacturers are rolling out the next model year in full force and dealers come up with all sorts of incentives to move inventory off the lot.

    The editors at Kelley Blue Book (KBB) have been monitoring sales prices and incentives and found more than a few good deals, no matter what type of vehicle you're considering.

    "August is a great time to snag a deal on a new 2015 model-year car, as dealers are clearing their lots during this summer sell-down period making way for the new 2016 model-year inventory," said Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book's KBB.com. "Whether you're looking for a compact car, an SUV or a sedan, this month's list of noteworthy deals has a wide variety of choices.”

    KBB has broken down its picks in terms of lease value, incentives, and financing.

    Enclave number 1 overall

    In terms of lease deals, the 2015 Buick Enclave drives away the winner and earns the top spot on the list. The Enclave, Buick's high-end SUV, has an MSRP just under $40,000, but can be leased for 39 months for $319 and just $1,817 down.

    The second best August deal wins its spot for its incentives. The 2015 Hyundai Elantra Value Edition carries a discounted price of $1,100 off the MSRP. In addition, it provides $1,500 cash back.

    Coming in at number 3 in terms of August's best deals is a lease of the 2015 Chevrolet Spark EV. Fuel efficient vehicles have fallen out of favor due to falling gasoline prices, and the Spark's lease terms reflects that. The Spark can be leased for just $138 a month for 39 months with zero down.

    Number 4 wins its spot on the list for a combination of incentives and financing. The 2015 Toyota Venza has an MSRP of $29,965, but KBB says it should sell for $27,091. In addition, you should be able to drive away with $2,000 cash back and 0% financing for 60 months, with good credit.

    The fifth overall best deal is a lease on the 2015 Lexus GS. A 36 month lease will cost $409 a month with $2,499 due at signing.

    Incentives & financing

    The 2015 Kia Forte comes in at number 6 with an impressive incentive and financing package. KBB estimates the Forte should sell at a $1,300 discount to the MSRP. In August it comes with $1,500 cash back and 0% financing for 60 months.

    The 2015 Volkswagen Tiguan is another eye-catching lease deal, coming in at number 7 on KBB's list. For starters, KBB predicts a $3,400 discount off the MSRP. At that price, a 36 month lease is just $179 a month with $2,499 down.

    Number 8 on the list is another lease – the 2015 Cadillac ATS. A 36 month lease is available for $269 a month with $2,659 down.

    Ninth on the list of August deals is the 2015 Ford Taurus. KBB says the car can be purchased for $28,204 and buyers will get $5,000 cash back.

    Rounding out the list is another attractive incentive and financing package. It's on the 2015 Volkswagen Passat, which KBB says is selling this month for more than $3,000 off the MSRP. In addition, it comes with $1,000 cash back and 0% financing for 60 months.

    August is typically a good month to buy a new car. Manufacturers are rolling out the next model year in full force and dealers come up with all sorts of in...

    Think gas prices are low? Maybe they should be lower

    Falling oil prices have not directly translated to lower gas prices in the U.S.

    The tenth anniversary of Hurricane Katrina is coming up at the end of this month, truly one of the worst natural disasters in U.S. history. It was also 10 years ago that gasoline prices skyrocketed and have yet to really fall back to earth.

    Katrina caused extensive damage to Gulf of Mexico drilling rigs and refineries along the Louisiana and Texas coasts, interrupting the supply of refined fuel products. It was precisely at that point that prices of petroleum products began to be influenced more by the future markets than by oil producers.

    For example, the price of oil in 2004 was $37.66 a barrel, about the price it is today in inflation-adjusted dollars. In 2006, the price of a barrel of oil averaged $58.30 and kept going up until it peaked in 2008 at over $90 a barrel.

    Gas was $1.85 in 2004

    What happened to the price of gasoline was even more dramatic. In 2004, the average price of gasoline was $1.85 a gallon. In 2006, after Hurricane Katrina, the average was $2.57 a gallon.

    Brian, a reader from Utah, reminded us of this recently and asked why gasoline prices, which seem low at a national average price of $2.65, aren't even lower. Since a barrel of oil is now selling for roughly what it did in 2004 – before Hurricane Katrina sent it soaring – why isn't gasoline priced at around $1.85 a gallon, the way it was then?

    It's a good question with an interesting answer. It starts with the business assumption that prices should always go up and rarely come down. When prices rise businesses expand, building more infrastructure and hiring more employees. When prices go down, their profit margins are squeezed.

    Role of refineries

    If cars ran on unrefined crude oil, then you could make a strong case that fuel prices should be completely based on the price of oil. But crude oil has to go through refineries to be turned into gasoline. These refineries then have to distribute gasoline to stations around the country.

    One reason oil prices are so low is that there is a supply glut. Producers are pumping so much they are running out of places to store it. Refineries can only handle so much, so they can become something of a bottleneck. When a refinery reduces output for maintenance, or because of a breakdown or accident, it reduces supply and drives up the price. This seems to happen a lot more now than it did in the past.

    On the other hand, demand for gasoline continues to grow, but the U.S. isn't expanding its refinery capacity as fast as demand is rising. That said, refineries have plenty of gasoline.

    Supply and demand

    Refineries are able to keep a certain balance between domestic supply and demand of gasoline by increasing exports of the fuel – which they have been doing for some time.

    Check out this data from the Energy Information Administration. It shows U.S. gasoline exports surged in late 2010 and have steadily increased ever since.

    In January 2010 the U.S. exported 6.8 million barrels of gasoline. By January 2011 it had doubled. In January 2015 the U.S. exported 16 million barrels of finished motor gasoline.

    Why isn't there a national energy policy that would ensure plentiful supplies of gasoline and avoid abrupt price swings? It would be great for consumers, but, frankly, neither of the two political parties seem interested.

    Republicans are ideologically inclined not to interfere with markets. Democrats don't like fossil fuels and are not particularly interested in making them less expensive and more attractive.

    So to answer Brian's question, when it comes to gasoline prices, what goes up may come down, just not all the way.

    The tenth anniversary of Hurricane Katrina is coming up at the end of this month, truly one of the worst natural disasters in U.S. history. It was also 10 ...

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      When to buy travel insurance and when to skip it

      Read the fine print before making a decision

      Chances are you can't buy an airline ticket or book a cruise without being asked if you'd like to buy some travel insurance too.

      If you're the kind of consumer who hates any kind of risk, you might automatically agree. If you're the kind of consumer who thinks travel insurance is always a waste of money, you're likely to say no.

      Both consumers could be wrong.

      Travel insurance might be a waste of money for some trips, but it could save you thousands of dollars on others. The trick is knowing which trips are worth it.

      Read the fine print

      Travel insurance is like any other insurance. The more protection it provides, the more it is likely to cost. Consumers first need to understand what a policy covers and what it doesn't. That means reading some fine print, which is never pleasant.

      Most standard policies cover your trip if it is canceled or if you can't go because of an unexpected illness or injury. Just because the trip doesn't go the way you planned, that probably won't cut much ice with an underwriter.

      Sandra, of Reno, Nev., bought Trip Mate insurance for a special trip to Brazil, where she planned to spend her 65th Birthday with family and friends. It was a special trip and expensive too, so she deemed it well worth insuring.

      “Unfortunately the flight from Los Angeles to Miami was cancelled and eventually I was rerouted through New York, but had to wait another entire day to resume my trip to Rio, she wrote in a ConsumerAffairs post. “Ultimately my 65th birthday was spent in a hotel in New York and I missed all the celebrations friends had planned for me in Rio.”

      Delays not covered

      But the policy did not pay off because Sandra got to Rio, just a day late. In her mind it spoiled the whole trip but the trip was not cancelled – and cancellation was what was covered. The lesson is to make sure the policy you choose covers everything you want it to.

      A good rule of thumb is to buy travel insurance for foreign travel and trip packages that are paid for in advance. For inexpensive domestic air travel, a policy might not be necessary, but we hear plenty of stories about how it helped.

      Lynn, of Springwater, N.Y., bought an Allianz travel policy for a flight to South Carolina for his wife and himself. Days before the trip there was a death in the family, causing the trip to be put off for two weeks. When he rebooked, the tickets were twice the cost of the previous ones.

      “Within 2 weeks of submitting our information to them (Allianz), we had a check for the total amount we were charged for rescheduling our flights,” he wrote.

      But not all policies cover a death in the family, so read the fine print.

      Finally, remember that some credit cards carry travel insurance when you use the card to pay for travel. Some coverage is better than others, so it pays to research what you card does and doesn't cover.

      Most have a provision for lost luggage, or items stolen from luggage. Since that's a more common occurrence these days, it might pay to have that coverage – either through your credit card or from a travel insurance provider.

      Chances are you can't buy an airline ticket or book a cruise without being asked if you'd like to buy some travel insurance too.If you're the kind of c...

      FTC tries to define "unfair competition"

      A new statement of principles was adopted without public input, critics note

      The Federal Trade Commission has been around since 1914. One of its primary duties is to police "unfair" competition, even though no one seems to know exactly what that is. Competition, after all, is supposed to be a good thing. 

      In a speech yesterday at George Washington University in Washington, D.C., FTC Chair Edith Ramirez discussed a "statement of principles" the commission had approved earlier, sayiing the statement "makes time-honored principlex explicit" but "does not signal any change of course in our enforcement practicies and priorities."

      Reaction mixed

      Reaction to the statement was mixed.

      Sen. Richard Blumenthal (D, Conn.) called it "historic" and said he hoped it would “lead to more frequent and effective enforcement actions to protect both consumers and businesses.” Blumenthal is the top Democrat on a committee that oversees the FTC.

      The U.S. Chamber of Commerce said the statement didn't go far enough. Sean Heather, who oversees antitrust issues for the group,  called the guidance “disappointing,” saying that it “fails to establish an objective standard that closes the door to varying interpretations,” Bloomberg reported.

      But the Electronic Privacy Information Center (EPIC), a Washington nonprofit, said the statement appears "to narrow the ability of the Commission to pursue unfair business practices and were announced without any formal opportunity for public comment."

      EPIC noted that it and other advocacy groups have urged the FTC to use its authority to police unfair competition to address growing concerns about industry consolidation and privacy protection.

      It noted that the one dissenter in the 4-1 bipartisan vote to adopt the statement of principles, Commissioner Maureen K. Olhausen, noted the FTC's lack of public comment in its deliberations.

      EPIC has also noted the failure of the FTC to incorporate public comments in its proceedings, as required by law.

      Antitrust laws

      The statement enumerates the principles that the commission says it will follow when deciding whether to challenge unfair methods of competition, including:

      • the Commission will be guided by the public policy underlying the antitrust laws, namely, the promotion of consumer welfare;
      • the act or practice will be evaluated under a framework similar to the rule of reason, that is, an act or practice challenged by the Commission must cause, or be likely to cause, harm to competition or the competitive process, taking into account any associated cognizable efficiencies and business justifications; and
      • the Commission is less likely to challenge an act or practice as an unfair method of competition on a standalone basis if enforcement of the Sherman or Clayton Act is sufficient to address the competitive harm arising from the act or practice.

      The Federal Trade Commission has been around since 1914. One of its primary duties is to police "unfair" competition, even though no one seems to know exac...

      Feds approve two new endoscopic obesity treatments

      Treatment provide similar result as bariatric surgery

      The Food and Drug Administration (FDA) has approved two new endoscopic bariatric therapy techniques that may make this anti-obesity procedure more accessible to more people.

      Despite the fact that modern bariatric surgery yields good results, the American Society for Gastrointestinal Endoscopy (ASGE) says only about 1% of qualified candidates undergo these surgical procedures.

      Bariatric surgery helps people lose weight by reducing the size of their stomachs. Sometimes a gastric band is used to reduce stomach size, and sometimes a portion of the stomach is actually removed. This results in the patient not being able to eat nearly as much food as they could before, which allows them to lose weight. 

      Long-term studies show the procedures cause significant long-term loss of weight, recovery from diabetes, improvement in cardiovascular risk factors, and a reduction in mortality.

      Non-invasive procedures

      The newly-approved procedures could be game changers in the battle against obesity because they replace the surgery with a non-invasive endoscopic procedure.

      The two procedures are:

      • ReShape Integrated Dual Balloon System
      • ORBERA Intragastric Balloon

      "Endoscopic bariatric therapies offer a viable, safe alternative for patients who have been unsuccessful at weight loss with diet and exercise. They may also be appropriate for patients who are not suitable for, or are unwilling to undergo, a more invasive surgical procedure," said Dr. Christopher Thompson, chair of the ASGE Bariatric Endoscopy Task Force.

      Complications from surgeries

      It's possible that so few obese people elect to have traditional bariatric surgery because they are afraid of the potential medical complications. Studies have shown that patients who have undergone bariatric surgery have had significant risks of complications, both during the initial hospital stay and six months later.

      Initially, gastric bypass surgery carried a high risk of mortality. It was still risky when NBC Today Show co-host Al Roker had it in 2002, but it helped him drop 115 pounds. Roker says the surgery helped, but that he had to make lifestyle changes to maintain a healthy weight.

      Despite the reduced risks and successful results of today's bariatric surgery, it's still surgery, which may give some people pause. ASGE hopes the two new non-invasive options will cause more people to seek help.

      Study

      ASGE has completed a meta-analysis that concludes endoscopic bariatric therapies can be effective options and are most beneficial when used as part of a comprehensive program to treat obesity. An ASGE task force concluded that endoscopic IGB therapy with the ORBERA device meets or exceeds efficacy thresholds.

      Intragastric balloons intended for weight loss consist of one or more balloons that are placed into the stomach through the mouth using a minimally invasive endoscopic procedure while the patient is under mild sedation. As long as the balloons, filled with saline, are in place they help patients to feel full so they eat smaller amounts.

      At some point the balloons are removed, after being deflated using another endoscopic procedure. Balloons are typically removed after six months, with patients remaining in a lifestyle support program for one year to maintain weight loss. Best of all, the intragastric balloon can be placed in an outpatient setting.

      The Food and Drug Administration (FDA) has approved two new endoscopic bariatric therapy techniques that may make this anti-obesity procedure more accessib...

      School-aged kids are being overloaded with homework

      Researchers suggest that this negatively impacts students and their families

      The back-to-school season is already well underway, with some children already back in the classroom and others counting down the final days until they have to return.

      Parents may be relieved that their kids are going back to school, but they might be surprised by the amount of work that is being brought home when classes actually begin. A new study suggests that school-aged children across the U.S. are being overloaded with homework.

      The study was conducted by researchers from the Brown University School of Medicine, the Children’s National Health System, Brandeis University, Rhode Island College, and the New England Center for Pediatric Psychology. They collected data from 1,173 English and Spanish speaking parents with children in grades K-12 and found that students are getting over three times the workload that is recommended by the National Education Association (NEA). Their findings have been published in The American Journal for Family Therapy

      Younger students affected most

      The current standard for homework is that it should take students a total of 10 minutes, multiplied by their grade level. This means that a 9th grader should expect 90 minutes, or an hour and half, of total homework every night. This formula has been proven to produce the best academic results, according to the NEA.

      Unfortunately, this is simply not the case in U.S. schools, especially with younger students. First graders across the nation are currently three times above their recommended homework time. Even the average kindergartener, who the NEA says should have no homework, is spending approximately 25 minutes on homework every night. The researchers believe that this is putting a large amount of pressure and stress on families, which can be harmful to the well-being of the children.  

      “The levels of family stress and tension found in this study fall into ranges that could lead to detrimental physical and mental health. The Kindergarten homework load was identical to that of first and second graders. In that period when children are focused on early stages of socialization and finessing motor skills, an overload of homework will likely interfere with a Kindergartener’s ability to play and participate in extra-curricular activities,” said lead author Robert Pressman.

      Family limitations

      If that wasn’t bad enough, researchers have also found that many families are at a disadvantage with this current system because of educational or language limitations. Many parents who are not native speakers of English, or did not have a full education themselves, have trouble helping their children with their homework because they simply do not have the skills to do so. This factor greatly affects the amount of stress that families feel, and puts more pressure on the student.

      Another lead author of the study, Stephanie Donaldson-Pressman, has written a book on this matter. It explores the daily habits and routines that can help a student achieve academic success. It incorporates comprehensive research from over 50,000 parents from more than 4,600 cities across the nation.

      Doing your own research and implementing healthy habits is a good start, but in an ever-changing education system, there is no easy answer to solving this problem. It is recommended that parents talk to their child’s teacher and be very open about any limitations they have with helping their child achieve academic success. Being proactive and developing an individualized plan to help a student succeed has, and always will be, the best course of action. 

      The back-to-school season is already well underway, with some children already back in the classroom and others counting down the final days until they hav...

      FTC silences "Mole Detective" app claims

      The widely-advertised app can't detect moles

      We may have finally heard the last of the "Mole Detective." The Federal Trade Commission has wound up its action against promoters of an app that claimed it could detect skin cancer, or melanoma after the last defendant agreed to a settlement. 

      Avrom Lasarow settled FTC charges that he and other promoters made false and unsubstantiated claims for the app, which sold in the Apple and Google app stores for up to $4.99.

       Melanoma kills an estimated 10,000 people in the U.S. each year.

      “We haven’t found any scientific evidence that Mole Detective can accurately assess melanoma risk,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “If you’re concerned that a mole may be cancerous, please see a health professional.”

      In a statement to ConsumerAffairs, Lasarow called the FTC's approach "a real disappointment" and said his decision to settle was based on the cost of litigation. 

      Lasarow and his company took over marketing the Mole Detective app in August 2012, after it was originally developed and marketed by Kristi Kimball and her company, New Consumer Solutions LLC, and added derivative apps like “Mole Detect Pro.”

      Deceptive claims

      The Mole Detective apps instructed users to photograph a mole with a smartphone and input other information about the mole. The apps then supposedly determined the mole’s melanoma risk to be low, medium, or high.

      The FTC alleged that the marketers deceptively claimed that the apps accurately analyzed melanoma risk and could assess such risk in early stages. The marketers lacked adequate evidence to support such claims, the FTC charged.

      We may have finally heard the last of the "Mole Detective." The Federal Trade Commission has wound up its action against promoters of an app that claimed i...

      Wholesale prices rise again

      Falling food and energy costs helped keep a lid on the increase

      The Producer Price Index (PPI) for final demand -- wholesale prices in plain English -- rose in July for a third straight month.

      According to the Labor Department (DOL), the PPI was up a seasonally adjusted 0.2% following advances of 0.4% in June 0.5% in May.

      On an unadjusted basis, the PPI was down 0.8% for the 12 months ended in July, the sixth consecutive 12-month decline.

      Services prices up

      The services sector of the PPI rose 0.4% last month, the sharpest increase since October of last year when it surged 0.6%. Sixty percent of the broad-based July advance was due to a 0.4% rise in the index for services less trade, transportation, and warehousing. Trade services prices also rose 0.4%, while the cost of transportation and warehousing services was up 0.2 percent.

      Over 40 percent of the increase is the result of a 9.9% surge in prices for guestroom rental. The costs of automotive fuels and lubricants retailing; health, beauty, and optical goods retailing; securities brokerage, dealing, investment advice, and related services; computer hardware, software, and supplies retailing; and transportation of passengers (partial) also moved higher. Conversely, prices for apparel,

      footwear, and accessories retailing declined 4.2 percent. Loan services (partial) and truck transportation of freight prices also fell.

      Goods prices drop

      The prices of goods inched down 0.1% last month after posting a gain of 0.7% in June. Most of that was the result of a 0.6% decline in energy costs. Food prices dipped 0.1%, leaving prices for all goods less foods and energy unchanged.

      A major factor in the July decrease in prices for goods was the 2.4% drop in the cost of residential natural gas. Prices for chicken eggs, home heating oil, pork, and nonferrous metals were lower as well. In contrast, the cost of gasoline advanced 1.5%, with prices for corn, motor vehicles and basic organic chemicals also increasing.

      The complete PPI report is available on the DOL website.

      The Producer Price Index (PPI) for final demand -- wholesale prices in plain English -- rose in July for a third straight month. According to the Labor De...

      Volkswagen recalls various vehicles with possible airbag issue

      A loss of electrical connection to the driver's front airbag is possible

      Volkswagen Group of America is recalling 420,000 model year 2010-2014 Volkswagen CC, Passat, and Tiguan; 2010-2013 Eos and Jetta; 2011-2014 Golf and GTI; and 2011-2013 Jetta Sportwagen vehicles.

      Debris may contaminate the vehicles' air bag clock spring, a spiral wound, flat cable that keeps the air bag powered while the steering wheel is being turned. This contamination may tear the cable and result in a loss of electrical connection to the driver's front air bag. This would prevent the air bag from deploying in the event of a vehicle crash, increasing the risk of injury.

      The remedy for this recall is still under development. The manufacturer has not yet provided a notification schedule.

      Owners may contact Volkswagen customer service at 1-800-822-8987.

      Volkswagen Group of America is recalling 420,000 model year 2010-2014 Volkswagen CC, Passat, and Tiguan; 2010-2013 Eos and Jetta; 2011-2014 Golf and GTI; a...

      American SportWorks recalls four-wheel off-road utility vehicles

      The throttle can fail to return to idle causing the rider to lose control

      American SportWorks (ASW) of Roseland, La., is recalling about 3,500 off road utility vehicles.

      The throttle can fail to return to idle causing the rider to lose control, posing a risk of injury.

      No incidents or injuries have been reported.

      This recall includes 6 models of ASW Four Wheel Off-Road Utility Vehicles. The name of each model is located above each front fender and along the sides of the dump bed. Affected vehicles include:

      BullDog 300, ChuckWagon 300 and LandMaster 300 -- all powered by Kohler 277cc engines with the last 6 Characters of the product identification number between A11746 and A13294, and LandMaster 400, TrailWagon 400 and ChuckWagon 400 all powered by Honda 390cc engines with the last 6 characters of the product identification number between A24835 and A26806. The product identification numbers can be found on a sticker on the firewall above the accelerator and brake pedal.

       ModelColor 
      LandMaster 300  Red, Green, Black, White, Camo
      LandMaster 400 Red, Green, Black, White, Camo
      BullDog 300 Red
      Trail Wagon 400 Red, Camo
      Chuck Wagon 300 Red, Green, Camo
      Chuck Wagon 300 Red, Green, Camo

      The vehicles, manufactured in the U.S., were sold at Atwood Distributing, Rural King, The Home Depot, Tractor Supply Company and other dealers from September 2014, through June 2015, for between $4,300 and $5,300.

      Consumers may contact ASW toll free at 800-293-0795 from 8 a.m. to 5 p.m. (ET_ Monday through Friday or online at www.amsportworks.com. At the top of the page under the SAFETY tab under Recalls, click on “TSB167 & TSB168.”

      American SportWorks (ASW) of Roseland, La., is recalling about 3,500 off road utility vehicles. The throttle can fail to return to idle causing the rider ...

      Britax recalls Advocate ClickTight, Boulevard ClickTight and Marathon ClickTight child seats

      The harness adjuster button may stick in the harness release position

      Britax Child Safety is recalling 213,753 Advocate ClickTight child seats, model numbers E9LT95Q, E9LT95Z, E9LT95N, and E1A025Q; Boulevard ClickTight child seats, model numbers E9LT86F, E1A135Q, E9LT86G, E9LT85Q, E9LT86A, E9LT86H, E9LT85S, E1A015Q, E1A016A, and E1A016H; and Marathon ClickTight child seats, model numbers E1A116L, E9LT76P, E9LT71Q, E9LT76N, E9LT76B, E9LT75R, E9LT76L, E1A006B, E1A005R and EXA116L, manufactured August 1, 2014, to July 29, 2015.

      The seats have a red harness adjuster button that may stick in the down (harness release) position allowing the shoulder harness to loosen. If the harness loosens, the child may not be restrained properly, increasing the risk of injury in the event of a crash.

      Britax will notify registered owners and send them a remedy kit that includes a lubricant to apply to the harness adjuster button, free of charge. The recall is expected to begin on August 17, 2015.

      Owners may contact Britax customer service at 1-888-427-4829, option 3 or by visiting www.BritaxClickTightConvertibleRecall.com.

      Britax Child Safety is recalling 213,753 Advocate ClickTight child seats, model numbers E9LT95Q, E9LT95Z, E9LT95N, and E1A025Q; Boulevard ClickTight child ...

      Kapowsin Meats recalls pork product

      The product may be contaminated with Salmonella

      Kapowsin Meats of Graham, Wash., is recalling approximately 116,262 pounds of whole hogs.

      The hogs may be contaminated with Salmonella.

      The whole hogs of varying weights for barbeque were produced between April 18, 2015, and July 27, 2015. They bear the establishment number “Est. 1628” inside the USDA mark of inspection.

      The hogs were shipped to various individuals, retail locations, institutions and distributors in Alaska and Washington.

      Working in conjunction with the Washington State Department of Health and the Centers for Disease Control and Prevention (CDC), the federal Food Safety and Inspection Service (FSIS) determined that there is a link between whole hogs for barbeque from Kapowsin Meats and numerous illnesses.

      Traceback investigation has identified 32 case-patients who consumed whole hogs for barbeque from this establishment prior to illness onset. These illnesses are part of a larger illness investigation.

      Based on epidemiological evidence, 134 case-patients have been identified in Washington with illness onset dates ranging from April 25, 2015, to July 29, 2015.

      There are concerns that some product may be frozen and in consumers' freezers.

      Consumers with questions regarding the recall may contact John Anderson at (253) 847-1777.

      Kapowsin Meats of Graham, Wash., is recalling approximately 116,262 pounds of whole hogs. The hogs may be contaminated with Salmonella. The whole hogs of...

      Are cable TV's days numbered?

      Maybe not, but cable companies will have to quickly evolve

      Last week an innocuous document filed with the Securities and Exchange Commission (SEC) rocked Hollywood.

      DirecTV filed form 10-Q with the SEC, reporting among other things, that it suffered a net loss of 133,000 subscribers in the second quarter. That was nearly 100,000 more than it lost in the second quarter of 2014.

      Research firm MoffettNathanson plugged in those numbers and estimated the pay TV industry as a whole had shed 566,000 subscribers during the period. Most media stocks had a bad week on Wall Street, especially after Disney, owner of cable stalwart ESPN, lowered its guidance for subscriber revenue.

      Variety's New York Digital Editor Todd Spangler writes that, while the second quarter is usually the industry's lightest, operators should be concerned that the number of pay-TV households is now shrinking at a much faster rate.

      Long-term trend

      In fact, this trend has been happening for quite some time. As we reported in April, Nielsen reported a dramatic increase in 2014 in the number of customers for what it calls subscription-based video on-demand services, known as SVODs. These are households that subscribe to services like Netflix, Amazon Prime or Hulu but not necessarily to pay TV services.

      The number of these households is still quite small compared to homes that have cable, but the number is growing. And the latest numbers suggest it's happening faster than anyone predicted.

      That traditional pay TV providers are seeing a surge in defections year-over-year is made even more dramatic by the fact that household formation in the U.S. is growing. Many of these new households apparently think they can live without the 200 or so channels pay TV provides.

      On the other hand, SVOD's have plenty of content for a low monthly fee. Content on YouTube is free.

      YouTube stars

      It may surprise some to learn that YouTube has turned into a favorite viewing source for some viewers, particularly young Millennials who wouldn't be caught dead watching “television.” These viewers have made a number of amateur producers YouTube stars, whose videos get millions of views.

      One YouTube duo, Smosh, is so popular they star in a movie – that will be viewed mostly online, no doubt.

      Like nearly every other industry subjected to a disruptive force, the price of entertainment content is coming down. The biggest impact will likely be felt more by the content creators than the companies distributing it.

      After all, nearly all cable TV providers nearly all provide broadband Internet services too. As their pay TV revenue falls, their Internet revenue should grow.

      The defection of more and more subscribers from pay TV may finally convince these providers that they must embrace the new reality to survive. HBO is already available for on-demand streaming through HBO Go.

      Can other cable programming be far behind?

      DirecTV filed form 10-Q with the SEC, reporting among other things, that it suffered a net loss of 133,000 subscribers in the second quarter....

      Samsung jumps into the mobile payments business

      Samsung Pay launches in the U.S. next month

      Not to be outdone by its rival Apple, Samsung has announced that Samsung Pay will be available to U.S. consumers starting next month.

      The service began in South Korea earlier this month. The company used a press event in New York on Thursday to announce the September launch in the U.S.

      The concept is very similar to Apple Pay. It turns your mobile device into a digital wallet, letting users seamlessly pay for things at retailers.

      The company says Samsung Pay will use Near Field Communication (NFC), fingerprint verification, and digital tokenization to shield users' credit card information. It says if a retailer can accept Apple Pay or Android Pay, it should be able to work with Samsung Pay as well.

      Step forward

      Dan Wagner, ecommerce veteran and CEO of Powa Technologies, says the launch of Samsung Pay, along with its latest devices, represents a step forward for the international mobile payment scene.

      “Samsung launching into competition with Apple Pay demonstrates how two of the largest tech leaders in the world are putting mobile payment as a major priority,” he said.

      The big news may be that Samsung Pay will work with the old fashioned magnetic strip card readers, at a time when many independent retailers lack the resources to convert to the new chip-based EVM technology.

      “Samsung’s inclusion of magnetic strip recognition alongside NFC puts it ahead of Apple Pay, bringing more versatility for users and merchants alike – especially in markets where magnetic strip readers are still the main payment method,” Wagner said.

      Still more to do

      However, Wagner says both Apple Pay and Samsung Pay both still lack the cutting edge needed to fully meet user demand.

      “With consumers’ shopping habits constantly evolving, now is the time to rethink the entire shopping experience and break free from the reliance on point-of-sale terminals and queues,” Wagner said. “What shoppers and merchants alike really want is a cross-channel payment method that allows transactions to take place anywhere, at anytime, from a range of mediums. Until this level of freedom is achieved, mobile payments will remain more of an added bonus than the must-have feature the industry needs.”

      Apple Pay got off on a wrong foot with some major retailers soon after its October 2014 launch. Less than a week after it was first made available, Apple Pay encountered its first roadblock when the pharmacy chains CVS and Rite-Aid stopped accepting it.

      Although neither chain officially explained why, most observers agree it was because they decided instead to work with a retailer-owned group.  

      Not to be outdone by its rival Apple, Samsung has announced that Samsung Pay will be available to U.S. consumers starting next month.The service began...

      America's 10 hottest ZIP codes for housing

      They're livable, affordable, and only one is on the coast

      In the 1990s, 90210 was the hot ZIP code, dripping with Beverly Hills glamour. But when it comes to 2015 real estate, there are many more communities drawing buyer interest that translate into quick sales.

      Online marketplace realtor.com established a formula based on the number of times a property listing is viewed and how quickly it sells to rank America's hottest ZIP codes, where you are lucky if you can buy property and even more fortunate if you happen to be selling.

      It turns out these ZIP codes have several distinguishing characteristics; healthy housing dynamics, strong local employment and neighborhood "it factors."

      "Each locale on this list is emblematic of the key trends driving housing this year – healthy local economics, job opportunities and affordability," said Jonathan Smoke, chief economist for realtor.com.

      Smoke says these communities offer something for everyone. For first-time home buyers, these communities provide great opportunities to enter the housing market, build a career, and raise a family. Older generations are able to build wealth and enjoy a variety of lifestyles in these communities.

      In something of a surprise, only one California ZIP Code makes realtor.com's list and the other nine are located in the nation's interior.

      Hot ZIP codes

      1. 02176 – Melrose, Mass. is close to both Boston and Cambridge and has become a magnet for young professionals and families due to its relative affordability, access to public transportation, and attractive downtown area.
      2. 43085 – Worthington, Ohio is a major relocation market and part of the Columbus, Ohio metro. It's home to several major corporations and Ohio State University.
      3. 80122 – Centennial, Colo., a suburb of Littleton, is centrally located south of Denver. It's home to the area's largest employer, Lockheed Martin, and a new Charles Schwab campus opened in October 2014 that is expected to employ approximately 2,000 workers. Houses spend approximately two weeks on the market – the shortest number in the U.S.
      4. 75023 – Plano, Texas is a suburb of Dallas and home to the corporate headquarters of Dell Services, Dr. Pepper Snapple Group, Ericsson, and Frito-Lay Inc., as well as the future headquarters of Toyota Motors USA. Listings receive nearly 1,200 views per month on average, 2.4 times more views than the rest of the metro and eight times more than the national average.
      5. 48375 – Novi, Mich. is near the General Motors Technical Center in Warren, Mich. and the General Motors Proving Grounds in Milford, Mich., as well as the Ford headquarters in Dearborn, Mich. It's also home to some of the region's largest healthcare systems.
      6. 78247 – San Antonio. Located in the city's North Central district, 78247 is within San Antonio city limits but offers a suburban feel. San Antonio is home to the corporate headquarters of USAA, Valero Energy Corporation, Rackspace, NuStar Energy L.P. and Harland Clarke. It also has a huge military presence.
      7. 63126 – Crestwood, Mo. is a suburb of St. Louis. Home prices and quality of schools have attracted affluent Millennials. Median income for 25-34 year old households in this ZIP code is $73,000, 40% higher than the average millennial household in the U.S.
      8. 78729 – Austin, Texas. One of 78 ZIP codes in Austin, 78729 is located on the city's north side, incorporating the residential Jollyville neighborhood, which offers prime access to many of the city's major tech companies, including Apple, IBM, and Dell. It's a Millennial Mecca, with Millennials making up 23% of the ZIP code's population, 75% higher than the national average.
      9. 58103 – Fargo, N.D. incorporates many smaller residential neighborhoods, just southwest of Fargo's downtown district. It is located just miles from the North Dakota State University campus, and provides many housing options for first-time home buyers.
      10. 92010 – Carlsbad, Calif., nicknamed the "village by the sea," is a tourist destination known for its Legoland theme park. Prices in this region have been steadily increasing over the last 18 months. Located farther from the beach than the other Carlsbad communities, 92010 offers buyers a big selection of multi-family units, which realtor.com says is a way to get into the real estate market for under $600,000.

      Another thing that sets these ZIP codes apart is their supply and demand. According to realtor.com's data, these communities sell 4 to 9 times faster than the rest of the country.

      In the 1990s, 90210 was the hot ZIP code, dripping with Beverly Hills glamour. But when it comes to 2015 real estate, there are many more communities drawi...

      America has a growing appetite for burgers

      High beef prices and health concerns aren't hurting sales

      Despite recent trends toward healthier foods, U.S. consumers still love hamburgers. A large beef patty piled high with garnish and condiments has never fallen out of favor. In fact, its popularity may be growing.

      That fact was underscored this week when Shake Shack, a small chain featuring gourmet burgers and thick, creamy milk shakes, surprised Wall Street with blowout earnings.

      The New York based firm, which enjoys a “health halo” among foodies who value its antibiotic-free beef but overlook the massive calories, reported sales jumped nearly 13% in the second quarter. Analysts were looking for an 8.6% rise.

      Shake Shack vs. McDonald's

      Shake Shack is immensely popular with hip, urban consumers whereas McDonald's, the long-time fast food burger champion, is not. McDonald's has struggled in recent years as it has tried to add healthier fare to its menu and removed some of the lower-priced “value” items that many of its customers like.

      But there is evidence that McDonald's is ready to up its game in the burger wars. This week, Wall Street trader Tim Seymour, a regular on the CNBC program Fast Money, filed this video report from a Manhattan McDonald's location that is experimenting with a customizable gourmet burger.

      Using a touchscreen kiosk, Seymour was able to create a burger to his liking, including being able to select the type of bun and gourmet condiments he wanted. The kiosks are being added to select McDonald's locations in the roll out of what the company calls the“Create Your Taste” burger.

      Game changer

      By the time Seymour had created his burger, his custom toppings had pushed the price up to $10, but he seemed to be satisfied. He called the “Create Your Taste” a “game-changer” for the iconic burger franchise.

      Technomic's latest Burger Consumer Trend Report says 57% of consumers eat a burger at least once a week. It notes that all burger restaurants, not just those offering high-end, gourmet burgers, are prospering in spite of health concerns and rising beef prices.

      "Utilizing value beef cuts and incorporating non-beef proteins can help lower costs and broaden the range of needs burgers can satisfy," said Sara Monnette, Technomic vice president. "Specialty ingredients like pretzel buns can enhance the value perception, and unique toppings and sauces, stuffed patties, and premium sides can add to craveability and brand differentiation."

      The report, based on interviews with more than 1,500 consumers and restaurant operators, suggests McDonald's might be on the right track with its “Create Your Taste” feature. It found 61% of consumers think it is important to be able to customize the toppings and condiments, with 43% prioritizing build-your-own burgers.

      On a weekly basis, 39% of consumers get their burgers from fast-food restaurants and 39% make them at home.

      Despite recent trends toward healthier foods, U.S. consumers still love hamburgers. A large beef patty piled high with garnish and condiments has never fal...

      Insane Crips were running a huge identity theft/tax fraud ring, cops charge

      The California street gang was allegedly using stolen identities to file phony tax returns

      Law enforcement officials in California say they have broken up a huge identity theft and tax fraud scam being perpetrated by the Long Beach street gang Insane Crip.

      California Attorney General Kamala D. Harris said the gang operated an identity theft scheme to perpetrate tax fraud, stealing over $3.3 million and attempting to steal over $11 million via tax fraud. The takedown resulted in 22 members of the Insane Crip street gang being taken into custody on charges that include 283 counts of criminal conspiracy, 299 counts of identity theft, 226 counts of grand theft and 58 counts of attempted theft.

      “This violent street gang orchestrated a sophisticated scheme to steal the identities of hardworking Californians and defraud the government of millions in taxpayer money,” Harris said. “These victims had their identities stolen and face financial harm as a result of this theft. My office is committed to dismantling these criminal organizations and targeting their illicit income sources. I thank our law enforcement partners for their thorough investigation in this matter.”

      The arrest is the culmination of a three-year investigation into the Insane Crip street gang that began after a Long Beach crime spree tied to the gang. A Long Beach Police Department detective discovered evidence containing the personal identifying information of hundreds of California residents at an address associated with the gang. The defendants had used the stolen personal identifying information to commit financial crimes, including identity theft and tax return fraud.

      The defendants exchanged the stolen information via text messages to the leaders of the scheme, who would then file fraudulent tax returns, obtain the refunds and load them onto prepaid debit cards in the name of other victims. The debit cards were then used to fund the gang’s illicit activities, lavish lifestyle and to recruit members.

      How it works

      Tax return fraud occurs when an individual files a fraudulent tax return with someone else’s personal identifying information and collects a tax refund from the IRS. Victims are unlikely to know their identities have been stolen until they attempt to file a tax return that is rejected by the IRS because one has already been filed.

      The Attorney General’s eCrime Unit (eCU) and Financial Frauds and Special Prosecutions Section (FFSPS) are jointly prosecuting the case, which resulted from an investigation by the Long Beach Police Department (LBPD) and the United States Postal Inspection Service (USPIS).

      In March, Attorney Harris issued tips for Californians to avoid tax-related identity theft and on how consumers can protect themselves. These tips and additional resources can be found here

      Law enforcement officials in California say they have broken up a huge identity theft and tax fraud scam being perpetrated by the Long Beach street gang In...

      Buying a home got a bit tougher in the second quarter

      Rising home values are affecting affordability

      Consumers hoping to buy a home in the April – June quarter of this year may have found it a little tougher.

      The National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI) says rising home prices in many housing markets resulted in a modest drop in nationwide housing affordability.

      “Home price appreciation in many markets across the nation are a sign that the housing recovery continues to move forward,” said NAHB Chairman Tom Woods. “At the same time, the cost of building a home is rising due to higher costs for buildable lots and skilled labor.”

      In all, 63.2% of new and existing homes sold in the second quarter were affordable to families earning the U.S. median income of $65,800, compared with 66.5% in the first three months of the year.

      This came as the national median home price increased from $210,000 in the first quarter to $230,000. The median is the point at which half the homes sold for a higher price and half lower. Meanwhile, average mortgage rates inched downward -- from 4.03% to 3.99%.

      Most affordable

      Youngstown-Warren-Boardman, Ohio-Pa., was rated the nation’s most affordable major housing market, beating out Syracuse, N.Y., which fell to the second slot following 2 straight quarters at the top of the list. In Youngstown-Warren-Boardman, 90.6% of all new and existing homes sold in the second quarter were affordable to families earning the area’s median income of $53,700.

      Rounding out the top five affordable housing major housing markets in respective order were Indianapolis-Carmel, Ind.; Scranton-Wilkes-Barre, Pa.; and Cincinnati-Middletown, Ohio-Ky.-Ind.

      Meanwhile, Kokomo, Ind., claimed the title of most affordable small housing market, with 95.5% of homes sold during the second quarter affordable to families earning the area’s median income of $55,200.

      Smaller markets joining Kokomo at the top of the list included Davenport-Moline-Rock Island, Iowa-Ill.; Lima, Ohio; Elmira, N.Y.; and Cumberland, Md.-W.Va.

      Least affordable

      For the11th consecutive quarter, San Francisco-San Mateo-Redwood City, Calif., was the nation’s least affordable major housing market. There, just 11% of homes sold in the second quarter were affordable to families earning the area’s median income of $103,400.

      Other major metros at the bottom of the affordability chart included Los Angeles-Long Beach-Glendale, Calif.; Santa Ana-Anaheim-Irvine, Calif.; San Jose-Sunnyvale-Santa Clara, Calif.; and New York-White Plains-Wayne, N.Y.-N.J.

      All 5 least affordable small housing markets were in California. At the very bottom of the affordability chart was Santa Cruz-Watsonville, Calif., where 18.2% of all new and existing homes sold were affordable to families earning the area’s median income of $87,000. Other small markets at the lowest end of the affordability scale included Napa, Salinas, San Luis Obispo-Paso Robles and Santa Barbara-Santa Maria-Goleta, respectively.

      “Though affordability edged slightly lower in the second quarter, the HOI remains well above 50, where half the households can afford half the homes sold,” said NAHB Chief Economist David Crowe. “Low mortgage rates, pent-up demand and continued job growth should contribute to a gradual, steady rise in housing throughout the year.”

      Consumers hoping to buy a home in the April – June quarter of this year may have found it a little tougher. The National Association of Home Builders http...

      Retail sales resume climb after 1-month pause

      Initial jobless applications were up again

      Helped by an increase in auto and parts sales, overall retail sales posted a modest gain in July.

      Figures released by the Census Bureau, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, show sales were up 0.6% last month to $446.5. At the same time, the June decline of 0.3% was revised to show sales were actually flat for the month. Sales were up 1.2% in May.

      On a year-over-year basis, sales jumped 2.4%.

      Major factors in the July increase were sales by auto and parts dealers (+1.4%), sporting goods, hobby and book & music stores (+0.9%) and furniture & home furnishing stores (+0.8%). Gas station sales inched up 0.4% after surging 1.8% a month earlier.

      On the losing side were electronics & appliance stores (-1.2%) and department stores (-0.8%). Grocery store sales were flat.

      Core sales, which strip out 3 volatile categories -- auto and auto parts dealers, building material and garden equipment and supplies dealers, and gas stations -- were up 0.3%.

      Stiffel Fixed Income Chief Economist Lindsey M. Piegza notes that while the July increase is a welcome step in the right direction and offers reassurance the consumer isn’t dead, it "does little to suggest the US consumer 'is back.'”

      The complete retail sales report is available on the Commerce Department website.

      Initial claims

      First-time applications for state unemployment benefits rose last week for a third straight week.

      The Labor Department (DOL reports seasonally adjusted initial claims totaled 274,000 in the week ending August 8 -- an increase of 5,000 from the previous week's level, which was revised down by 1,000.

      The government says there were no special factors affecting this week's initial claims.

      The 4-week moving average, considered a more accurate gauge of the labor market because it lacks the volatility of the weekly tally, fell 1,750 from the previous week's revised average to 266,250, its lowest level since April 15, 2000.

      The full jobless claims report may be found on the DOL website.

      Helped by an increase in auto and parts sales, overall retail sales posted a modest gain in July. Figures released by the Census Bureau, adjusted for seas...