Current Events in December 2015

Car companies are once again pitching new cars as Christmas presents, but chances are there will be fewer Volkswagens under the tree this year.

Industry sources report that the VW brand continues to suffer from the diesel emissions cheating scandal. Sales of used VWs are down and so are prices.

The buyer intelligence site Autolist has released its analysis of data through November 30. It finds the pricing data pretty much confirms the public narrative: things just keep getting worse for Volkswagen cars and dealers.

Among the findings – even VW vehicles that have nothing to do with the emissions scandal are starting to feel its effects. Vehicles bearing the VW nameplate, but untouched by the scandal, have now fallen to 2% below their expected value, demonstrating how the scandal just keeps spreading.

$1,500 discount

To move VWs off the lot, dealers have been forced to keep dropping the price. Autolist reports sticker prices for vehicles directly implicated in the scandal have now fallen $1,500 to nearly 5% below their expected value.

But even lower prices don't always help. For VWs, time on the market is running 47% above average, at 136 days.

New Volkswagens aren't selling that fast either, and those that do sell often come with generous incentives. In its report on November new car sales, Kelley Blue Book (KBB) noted the growth average transaction price (ATP) grew only modestly, climbing just 0.4%.

One reason was a decline in the Volkswagen Group's ATP. While VW prices dipped 0.1% from October, the ATP was down 0.2% from November 2014.

Most of the recent discussion surrounding frauds and scams have dealt with online threats.

While cyber attacks are very real and growing, it's easy to loose sight of the threats that take advantage of an older technology – the telephone. That's a mistake, because the telephone is a more useful device for exploiting a scam's most vulnerable victims – senior citizens.

After New York Attorney General Eric Schneiderman learned scammers were calling people in his state, pretending to be officials from his office, he started looking into these kinds of schemes. The result is a list of what Schneiderman says are five common telephone scams that are seeing an uptick in activity.

IRS/Tax Collection Scam

The caller claims to be an agent or police officer from the Internal Revenue Service or Attorney General’s Office with one message: you're in trouble that can only be cleared up by sending payment, usually in a way that can't be traced or retrieved.

Assuming you owed money or were in actual trouble, no public agency would call you on the phone demanding payment. When that happens, just hang up.

Jury Duty Scam

The caller claims to be an officer of the court, saying you didn't show up for jury duty. Once again, the message is “you're in trouble.” The trouble, you are told, can be avoided by making a payment.

This scam is a lot like the IRS scam and the way to avoid it is the same. Realize that you would not get a call, and a chance to pay, if you actually missed jury duty.

Grandparent Scam

The caller usually starts by saying “Grandpa, it's me and I'm in trouble.” “Billy?” Gramdpa might ask. Bingo, the scammer has a name. While the emergencies vary, the scenario is usually this: the “grandson” is out of town and needs money fast -- to make bail, or to pay for automobile repairs or medical expenses.

The best way to avoid this scam is to make sure real grand parents know about this scam and how it works.

Lottery Scam

The caller says you’ve won a foreign lottery and requests that you, as the “winner,” send a check or to wire money to cover taxes and fees. The caller may request your banking information in order to electronically direct deposit your winnings. This is an attempt to steal your identity and will wipe out your bank account.

Make sure seniors in your family know that they cannot win a lottery or contest that they didn't enter. Also, legitimate contests never require a payment.

Utility Scam

The caller claims to be a representative of a local utility provider and, because they didn't get your last payment, they are about to cut off service. You can avoid this inconvenience, you are told, by sending payment in some untraceable way. People committing this scam have often gotten personal information from the Internet, Facebook, Instagram or other social media.

If you think there is a slight chance your bill could have gotten lost, hang up and call your utility provider directly. Ask if your account is up to date. Ninety-nine times out of 100, it will be.

Schneiderman says telephone scams are easy to avoid if you think of the telephone as a one-way street. It's okay to give out information over the phone if you made the call to a number you know and trust.

Just don't give out personal information when you receive an unsolicited call. If you receive a call soliciting personal information, just hang up the phone, no matter what the caller ID says.

Chipotle Mexican Grill has closed its restaurant at Cleveland Circle in Boston after a number of Boston College students who ate there got sick with E. coli-type symptoms.

However, it isn't clear the illnesses are linked to food at the restaurant. The company issued a statement saying it closed the restaurant as a precaution as it works with local health officials, who are investigating.

"We do not have any evidence to suggest that this incident is related the previous E. coli incident,” the statement said. “There are no confirmed cases of E. coli connected to Chipotle in Massachusetts."

Various local Boston media outlets reported that several Boston College basketball players were among the 28 students who got sick, forcing them to miss last weekend's game against UMass Lowell.

10^th state?

If the illness turns out to be linked to Chipotle, Massachusetts would become the 10^th state where E. coli has been reported. At the end of last week the Centers for Disease Control and Prevention (CDC) added seven more people to the number reportedly sickened in nine states. But the connection to the restaurant chain is less certain among the latest cases, as it is in the Massachusetts illnesses.

Of the three most recent illnesses reported in November, only one ill person, whose illness started on November 10, reported eating at Chipotle Mexican Grill in the week before their illness began. The investigation is still ongoing to determine what specific food is linked to the illness.

On Wall Street, investors have dumped Chipotle stock in recent sessions. The stock price fell 1.68% in Monday's trading, which ended before news of the Boston College illnesses broke. In after hours trading, Chipotle stock fell another 6.2%. The stock is down more than 28% from before the E. coli outbreak.

Reeling since late October

The restaurant chain has been reeling since late October, when E. coli illnesses were linked to restaurants in Washington and Oregon. On Friday the company issued a plan that it said committed it to become the industry leader in food safety.

"While Chipotle’s food safety practices were already well within industry norms, I was asked to design a more robust food safety program to ensure the highest level of safety and the best quality of all meals served at Chipotle,” said Mansour Samadpour, Ph.D., CEO of IEH Laboratories and Consulting Group. “I am happy to report that our proposed program was adopted in its entirety, without any modification. While it is never possible to completely eliminate all risk, this program eliminates or mitigates risk to a level near zero, and will establish Chipotle as the industry leader in this area."

Samadpour said work on the enhanced food safety program began immediately after outbreak reports surfaced at the end of October.

The Labor situation didn't change a whole lot from September to October.

The Bureau of Labor Statistics reports the number of job openings totaled 5.4 million during the month, compared with 5.5 million in September. Separations came in at 4.9 million versus 4.8 million a month earlier.

Job openings

The job openings rate was 3.6%, with the number of openings falling in professional and business services (-137,000) and in the West region (-132,000).

The number of job openings (not seasonally adjusted) increased over the 12 months ending in October for total nonfarm, total private, and government. Openings rose over the year in health care and social assistance (+225,000), retail trade (+141,000), state and local government (+51,000), and federal government (+15,000).

Job openings decreased over the year in finance and insurance (-55,000) and mining and logging (-17,000). The number of job openings increased over the year in three out of the four regions -- Northeast, South, and Midwest -- and was little changed in the West.

Hires

The number of hires was 5.1 million in October; there were 5.0 million in September. The hires rate was 3.6%. There was little change in the number of hires for total private and government in October and for number of hires in all industries. Hires increased in the West region over the month.

Over the 12 months ending in October, the number of hires (not seasonally adjusted) was little changed for total nonfarm and total private, and increased for government. At the industry level, hires increased in state and local government (+33,000). The number of hires was little changed in all four regions over the year.

Separations

Total separations includes quits, layoffs, and discharges, among other separations. Total separations is referred to as turnover. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs.

Layoffs and discharges are involuntary separations initiated by the employer. Other separations includes separations due to retirement, death, and disability, as well as transfers to other locations of the same firm.

The total separations rate was 3.4%, with little change in the number of total separations in private industry, while it rose slightly for government. The number of total separations was essentially unchanged in all four regions.

Quits

There were 2.8 million quits in October, up 100,000 from September. The number of quits has held between 2.7 million and 2.8 million for the past 14 months, and the quits rate was unchanged in October, measuring 1.9% for the seventh consecutive month.

The number of quits was little changed for total private industry and rose for government over the month. Quits rose in state and local government (+19,000) and nondurable goods manufacturing (+17,000), but fell in durable goods manufacturing (-15,000). Quits were little changed in all four regions over the month.

The number of quits (not seasonally adjusted) was little changed over the 12 months ending in October for total nonfarm, total private, and government. Quits increased over the year in accommodation and food services (+58,000) and nondurable goods manufacturing (+26,000). In the regions, quits rose most in the Midwest.

Layoffs and discharges

There were 1.7 million layoffs and discharges in October, the same as September. The layoffs and discharges rate was 1.2%. The number of layoffs and discharges was little changed over the month for total private and edged up for government. Layoffs and discharges were little changed in all four regions.

The number of layoffs and discharges (not seasonally adjusted) was little changed over the 12 months ending in October for total nonfarm and total private, and rose for government. The number of layoffs and discharges rose over the year in state and local government (+30,000) and mining and logging (+6,000). The number of layoffs and discharges fell over the year in professional and business services (-88,000) and transportation, warehousing, and utilities (-28,000). Layoffs and discharges fell in the Midwest over the year.

Other separations

In October, there were 414,000 other separations for total nonfarm, compared with 387,000 in September. Over the month, the number of other separations was little changed for total private at 338,000 and for government at 76,000.

Over the 12 months ending in October, the number of other separations (not seasonally adjusted) was little changed for total nonfarm, total private, and government. Other separations increased over the year in finance and insurance (+22,000), information (+7,000), and federal government (+6,000). The number of other separations decreased over the year in wholesale trade (-19,000). Other separations were little changed in all four regions over the year.

Net change in employment

Large numbers of hires and separations occur every month throughout the business cycle. Net employment change results from the relationship between hires and separations. When the number of hires exceeds the number of separations, employment rises, even if the hires level is steady or declining.

On the other hand, when the number of hires is less than the number of separations, employment declines, even if the hires level is steady or rising. Over the 12 months ending in October 2015, hires totaled 61.0 million and separations totaled 58.3 million, yielding a net employment gain of 2.7 million.

These totals include workers who may have been hired and separated more than once during the year.

The complete report is available on the BLS website.

Demand for housing is expected to increase in the coming year, and, according to CoreLogic Chief Economist Dr. Frank Nothaft, that means home sales and prices will likely be on the rise.

According to its 2016 Outlook for Housing, we can expect to see the following five things in next year's housing market:

Higher interest rates: Homeowners who have adjustable-rate mortgages or home-equity loans will most likely see a rise in their interest rate because the Federal Reserve is expected to raise short-term interest rates approximately 1% between now and the end of 2016. Fixed-rate mortgages will also rise -- perhaps up 0.5% in the next year -- reaching 4.5% for 30-year loans. Despite this increase in interest rates, mortgage rates will remain historically low.

Increased housing demand: More than 1.25 million new households will be formed in 2016 due to improvements in the labor market and lower unemployment rates. These new household formations will increase housing demand, specifically in the rental market.

High demand for rental homes: Rental vacancy rates are at or near their lowest levels in 20 years, and rents are rising faster than inflation. High demand for rental homes -- both apartments and houses -- will likely continue in 2016, especially from new, young households.

Increasing home sales and prices: Not only is the rental market hot, but overall purchase demand may lift 2016 home sales to the best year since 2007. Nationally, home prices will likely rise at a quicker rate than inflation, but not at the same rate as last year. The CoreLogic Home Price Index showed a year-over-year increase of 6% in the last 12 months; however, 2016 is only expected to see increases of 4-5%. These increases can be attributed to the improved economy, which has enhanced homeowners' feelings of financial security.

Falling dollar volumes of single-family mortgage originations: The single-family mortgage origination decline will occur even though home equity lending is expected to rise and originations of home purchase loans will likely rise about 10% in volume next year. The growth in those two areas will be offset by a 34% drop in refinance, reflecting the higher mortgage rates and dwindling pool of borrowers with a strong financial incentive to refinance.

While single-family mortgage originations are expected to fall, multifamily originations will likely rise. This gain reflects the higher property values and new construction that adds to permanent mortgage usage.

"As we approach the start of 2016, the consensus view among economists is that economic growth will continue, and the U.S. will enter an eighth consecutive year of expansion in the second half of next year,” said Nothaft. “Most forecasts place growth at 2% and 3% during 2016, creating enough jobs to exert downward pressure on the national unemployment rate.”

Aggressive and abusive debt collection practices persist, despite laws and court rulings affording debtors more protections.

Missouri Attorney General Chris Koster says he's troubled by the fact that racial minorities appear more likely to be on the receiving end of these abuses. While it is impossible to determine who is getting the harassing phone calls, it is possible to tell who gets hauled into court.

Koster says his state has witnessed a dramatic increase in debt-collection litigation in recent years. Charged-off debt, or debt that has been deemed uncollectable by a creditor, is often sold for pennies on the dollar. If the buyer is able to collect, the profit is huge.

Serial law suits

To collect the debt, Koster says these companies engage in what he calls the serial filing of debt-collection lawsuits in state court.

Worse, he says these debt collectors file suit without bothering to find out whether a debt is even owed, what it was for, and how much it is. He says he has seen cases where the same companies sue for debts more than five or ten years old, even though the statute of limitation would normally preclude recovering a debt.

Koster cites research which demonstrates that these litigation abuses disproportionately target racial minorities, creating “devastating long-term impacts for those who already struggle economically.”

He says recent studies from ProPublica and other sources have shown that debt-collection lawsuits in Missouri have obtained judgments in communities with predominately minority neighborhoods.

Missouri court takes a stand

Earlier this year, a Jackson County, Mo., court took a firm stand on the issue of debt collectors suing consumers without finding out first if the debt was legitimate.

Portfolio Recovery Associates LLC, one of the largest buyers of written-off debt in the U.S., tried to collect a $1,000 credit card debt from Maria Guadalupe Mejia, who insisted the debt wasn’t hers. She tried to explain that the person they were looking for was actually a man with a name that was similar, but not the same, as her name.

In May, the judge threw out the debt collector's case, but not before the jury awarded Mejia damages of over $82 million. Despite that lesson, Gregg Lombardi, Executive Director of Legal Aid of Western Missouri, says the debt collection abuses persist.

"Zombie debt collection agencies file thousands of cases in Missouri every year, and in virtually every one our attorneys see, they cannot prove their case in court,” Lombardi said. “They get default judgment after default judgment that they don't deserve by targeting low-income consumers who they know cannot afford to defend themselves. Then they are ruthless in collecting on those judgments.”

Proposed reforms

Koster has proposed reforms aimed at curbing abusive debt collection lawsuits in the state. He's proposed changes to state court rules that he said would end unscrupulous collection practices.

The changes would require debt collectors to produce documentary proof of the debt, stop debt buyers from manipulating court procedures with stalling tactics, and strengthen the proof needed before creditors can recover for attorneys’ fees and litigation costs.

Furthermore, consumers who want to reduce exposure to potential debt collector issues may consider consolidating their debt. Here is a link to our best debt consolidation companies resource.

In August, doctors gave former President Jimmy Carter what amounted to a death sentence. A rare form of melanoma had started in his liver and spread to his brain.

Over the weekend, Carter stunned the medical world by announcing that he is now cancer-free.

How did he do it? The brief statement from the Carter Center revealed he has been receiving a new immunotherapy drug called pembrolizumab.

As we have previously reported, immunotherapy is a recent cancer treatment trend in which doctors use forces within a patient's own body to fight the disease. According to the American Cancer Society, immunotherapy stimulates the patient's immune system to work harder, or smarter, to attack cancer cells, or it might introduce man-made immune system proteins to strengthen the immune system.

Humanized monoclonal antibody

Pembrolizumab, the drug Carter received, is an example of the latter type of immunotherapy. It is a humanized monoclonal antibody injected into the patient to strengthen the immune system. The drug won Food and Drug Administration approval in September 2014.

Image Guided Cancer Specialist (IGCS), a Florida medical group specializing in the treatment of cancer using the combinations of immunotherapy with image guided ablation, calls the immunotherapy Carter received “one of the greatest advances in cancer treatment.”

But while these treatments are true miracle drugs, IGCS cautions that the cost is a real concern. It says the average cost for using these drugs in combination at a standard dose is about $300,000 per year. The higher doses being used in the current research could mean that figure might climb to $1 million annually.

Skyrocketing costs

Dr. Leonard Saltz, an oncologist at Memorial Sloan Kettering Cancer Center in New York, is on the record with his concerns about skyrocketing costs for miracle drugs.

“The typical new cancer drug coming on the market a decade ago cost about $4,500 per month (in 2012 dollars); since 2010 the median price has been around $10,000,” he wrote in a 2012 op-ed in The New York Times. “Two of the new cancer drugs cost more than $35,000 each per month of treatment.”

At a recent American Society of Clinical Oncology Meeting, Saltz estimated the total cost to treat all metastatic cancer patients in the United States would be an “unsustainable” $174 billion per year.

IGCS said it is working on ways to reduce costs. It says one of its researchers, Dr. Jason Williams, has suggested the immunotherapy drugs directly into the cancerous tumor and combine it with image-guided cryoablation.

Lowering the cost of treatment, IGCS says, could make it accessible to more patients.

It's nice to know that every now and then a government action really does what it's supposed to do -- more or less. Case in point, the Credit Card Accountability Responsibility and Disclosure Act or CARD Act.

The Consumer Financial Protection Bureau (CFPB) has released a report that says the Act has helped reduce the cost of “gotcha” credit card fees by more than $16 billion. In fact since the reform law, total costs to consumers have fallen with the elimination of certain back-end pricing practices such as over-limit fees.

In addition, the CFPB says credit has generally become more available to consumers and the number of new accounts has grown faster than in almost every other major consumer credit market.

However, concerns remain about other back-end practices such as deferred-interest promotions that can hit consumers with unexpected costs.

“The CARD Act has helped people avoid more than $16 billion in gotcha credit card fees,” said CFPB Director Richard Cordray. “The law made it easier for consumers to evaluate costs and risks by eliminating the worst back-end pricing practices in the market. There is more work to do. But with commonsense rules in place, credit cards are safer and more affordable, credit is more available, and companies remain profitable with improved customer satisfaction.”

Big business

More than 60% of adults own at least one credit card account. In the first six months of 2015, more than 14.5 billion credit card transactions accounted for more than $1.4 trillion in purchase volume.

Before the CARD Act, widespread back-end pricing practices racked up costs for consumers through hidden fees and other gotchas. The intent of the CARD Act was to create a fairer and more transparent market by protecting consumers against unexpected interest rate hikes, excessive late fees, and hard-to-avoid over-limit fees.

The report finds that, generally, consumers are paying less for their credit cards than they did before the law, and those costs are easier to predict before they are incurred. In addition, credit availability has continued to expand for consumers. Specifically, the report found that since the CARD Act:

• Consumers have avoided more than $9 billion in over-limit fees
• Consumers have saved more than $7 billion in late fees
• Total cost of credit is roughly 2% lower than before the CARD Act
• Available credit has increased 10% since 2012
• More than 100 million credit card accounts offer consumers free access to their credit scores

Continued concerns

While the CARD Act addressed many problematic practices in the market, the CFPB has outstanding areas of concern from the report, including:

• Deferred-interest promotions that can hit consumers with back-end pricing
• Subprime credit card companies charging much more for credit
• Rewards programs containing obscure and incomplete terms and conditions
• Debt collection practices that pose risks to consumers
• Agreements that are still long and complex

Federal health officials say a foodborne illness outbreak linked to Chipotle Mexican Grill restaurants spread last week.

The U.S. Centers for Disease Control and Prevention (CDC) said seven more people have been reportedly sickened in a total of nine states. But the connection to the restaurant chain is less certain among the latest cases.

Of the three most recent illnesses reported in November, only one ill person, whose illness started on November 10, reported eating at Chipotle Mexican Grill in the week before their illness began. The investigation is still ongoing to determine what specific food is linked to illness.

Illness reported in nine states

The CDC says 52 people infected with the outbreak strain of STEC O26 have been reported from nine states. The majority of illnesses have been reported from Washington and Oregon during October 2015.

The number of ill people reported from each state is as follows:

• California (3)
• Illinois (1)
• Maryland (1)
• Minnesota (2)
• New York (1)
• Ohio (3)
• Oregon (13)
• Pennsylvania (1)
• Washington (27)

Age one to 94

The illnesses were first reported on October 19, 2015 and resulted in the temporary closure of a number of Chipotle Mexican Grill restaurants in the Pacific Northwest. The illness continued through November 13, 2015. The people who got sick range in age from one year to 94, with a median age of 21.

Fifty-nine percent of people who got sick are female. Twenty people reported being hospitalized. There have been no reports of hemolytic uremic syndrome and no deaths.

Of the most recent illnesses, only one victim reported eating at Chipotle Mexican Grill in the week before their illness began. But the CDC says the epidemiologic evidence available at this time suggests that a common meal item or ingredient served at Chipotle Mexican Grill restaurants in several states is a likely source of this outbreak.

About 90% of the people who got sick reported eating at a Chipotle Mexican Grill restaurant in the week before their illness started. However, the investigation has not identified what specific food is linked to illness.

The CDC, along with state and local public health partners, are keeping up laboratory surveillance through PulseNet to identify additional ill persons and to interview them. The agency says consumers should contact a health care provider if they recently became ill with diarrheal symptoms after eating at a Chipotle Mexican Grill restaurant.

Despite the near-certainty of higher interest rates and a tight inventory of property, at least one housing forecast sees booming home sales next year – the highest since before the start of the Great Recession.

But in its 2016 outlook, housing marketplace realtor.com says it expects most of the growth in sales to come from the new home market, which has been nearly dormant for years.

Existing home sales and prices are expected to slow to 3% year-over-year due to higher mortgage rates, continuing tight credit standards, and lower affordability. But the new construction market is expected to see more significant gains in the coming year as new home starts increase 12% year-over-year and new home sales grow 16% over 2015.

Total sales highest since 2006

Home builders have been slow to start large developments in the wake of the housing crash, but realtor.com predicts total sales for existing and new homes will reach six million for the first time since 2006.

The economy is expected to grow some 2.5% next year and continue to produce new jobs. On the downside, it's still hard to qualify for a mortgage and home prices continue to go up.

"Next year's moderate gains in existing prices and sales, versus the accelerated growth we've seen in previous years, indicate that we are entering a normal, but healthy housing market," said Jonathan Smoke, chief economist for realtor.com. "The improvements we've seen over the last few years have enabled a recovery in the existing home market, but we still need to make up ground in new construction, which we could begin to see in 2016.”

Smoke says it will be the addition of new homes, some of which are currently in the planning phase, that will breath new life into a plodding housing market.

Millennials, Gen-Xers and retirees

Who is going to be buying these new homes? Smoke sees three groups as likely candidates – Millennials, younger Gen Xers, and retirees.

Because of their number and critical place in household formation, Millennials are expected to drive housing demand next year. Currently, they make up about 30% of the existing home market. Smoke says they are seeing their incomes rise and will seek out homes that meet the needs of their growing families – putting the most weight on the safety of the neighborhood and the quality of the home.

Realtor.com predicts Atlanta, Pittsburgh, Memphis, Boston, and Austin will be the top markets for Millennials in 2016.

Moving up

Young Gen Xers, who have also been a force in 2015's housing market, have rebounded from the financial crisis and are entering their prime family-raising and earning years. More than two-thirds of the buyers in this age group already own a home and will be looking to move up.

Top markets for this group could be Atlanta, Denver, St. Louis, Charlotte, and Columbus, Ohio.

Retirees are downsizing and will seek to lower their cost of living in 2016. Smoke says you can look for their current homes to hit the market in March or April. This group will be one of the largest buyers of new construction.

Top markets for retirees might be Boston, Sacramento, San Diego, Sarasota, and Ft. Myers, Fla.

Ford Motor Company is recalling 411,205 model year 2010-2011 Ford Fusions manufactured July 21, 2008, to March 4, 2011, and 2010-2011 Mercury Milans manufactured July 23, 2008, to December 10, 2010.

The vehicles' fuel vapor canisters purge valves may not operate properly resulting in abnormal pressure changes in the fuel tank. The pressure changes may cause the tank to crack and leak fuel. A fuel leak in the presence of an ignition source increases the risk of a fire.

Ford will notify owners, and dealers will update the vehicle powertrain control modules and inspect the vehicle for any diagnostic trouble codes (DTCs) for this issue and perform a leak test on the Canister Purge Valve (CPV). The fuel tank will be inspected for cracks. The CPV and fuel tank will be replaced as necessary. These repairs will be performed free of charge. The recall is expected to begin January 11, 2016.

Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 15S34.

Chrysler Group is recalling 105,458 model year 2013-2014 Dodge Darts manufactured February 27, 2012, to January 23, 2014, and equipped with either a 2.0L or 2.4L engine.

Engine oil from the vacuum pump may seep into the brake booster, damaging a component within the brake booster.

Internal damage to brake booster could result in a loss of brake assist, lengthening the distance needed to stop the vehicle and increasing the risk of a crash.

Chrysler will notify owners, and dealers will inspect the brake booster grommet for the presence of oil. If no oil is found, the vacuum tube assembly will be replaced.

If oil is found, the vacuum pump, vacuum tube assembly, brake booster and master cylinder will be replaced.

Parts are not currently available to remedy the vehicles. Owners will be sent an interim notification and then will be sent a second notice when remedy parts are available. The manufacturer has not yet provided a notification schedule.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R63.

JAT Productos Naturales Corp., and JAT Natural Products Corp. of Brooklyn, N.Y., are recalling all Lipo Escultura.

The weight loss dietary supplement contains sibutramine and diclofenac which are not listed on the label.

Sibutramine is an appetite suppressant is a controlled substance that was removed from the market for safety reasons. It is known to substantially increase blood pressure and/or pulse rate in some patients and may present a significant risk for patients with a history of coronary artery disease, congestive heart failure, arrhythmias, or stroke.

Diclofenac is a non-steroidal anti-inflammatory drug (commonly referred to as NSAIDs). NSAIDS may cause increased risk of cardiovascular events, such as heart attack and stroked, as well as serious gastrointestinal damage, including bleeding, ulceration, and fatal perforation of the stomach and intestines.

One consumer illness has been reported.

The recalled product is used as a weight loss dietary supplement and is packaged in a white plastic bottle with green and lime labeling with white capsules. It was sold/distributed nationwide on www.lipoesculturatreatment.com, through a retail store and a home office in Brooklyn.

Customers should discontinue the use of this product immediately.

Consumers with questions may contact Julio Tapia at (718) 415-2611 or (347) 867-9988 Monday through Friday from 9am to 5pm (ET).

Consumers curious about their genetic make-up have been able to get some answers using 23andMe, which describes itself as a personal genetics company.

After ordering the kit, consumers provide a saliva sample and send it back. A few weeks later, the results are available.

However, not all consumers have been able to participate. Two states, New York and Maryland, have specific statutes that barred residents from using such a service.

New York has a law on the books that prohibits residents from sending saliva samples out of the state. Maryland has a law that bars direct-to-consumer genetic testing all together.

End run

Now, 23andMe reports its service is available to consumers in all 50 states. Maryland and New York have not changed their laws – they've simply been countermanded at the federal level.

The company says the U.S. Food and Drug Administration's (FDA) recent decision designating 23andMe’s service as an over-the-counter device gets around the restrictions in both states.

“We are thrilled that our customers in both New York and Maryland will now be able to explore their own DNA without restrictions,” said 23andMe co-founder and CEO Anne Wojcicki. “Customers in both states can now take full advantage of our newly launched and completely redesigned experience which includes reports that meet FDA standards.”

Rocky start

Health policymakers haven't really known what to make of 23andMe since it first arrived on the scene in 2013. The FDA initially ordered the company to stop doing business, claiming that it amounted to an unlicensed medical device.

ConsumerAffairs' Truman Lewis managed to get one of the early kits before the feds ordered the temporary halt.

“I also ordered the kits for my family, thinking we could spend some cozy evenings around the fire comparing our risks of atrial fibrillation, Alzheimer's disease, breast cancer and other cheerful topics,” Lewis wrote. “So far, it hasn't been much of a conversation starter but, on the positive side, none of us found much of anything to worry about in the reports we received.”

Lewis said the most interesting finding was that 3% of his DNA was Neanderthal in origin, a finding that did not surprise his co-workers.

After a period of study, the FDA earlier this year lifted its order blocking 23andMe, allowing it to be used by U.S. consumers – with the exception of those in New York and Maryland.

Rejected produce will be reincarnated and seaweed is the new kale in 2016, according to the editors of Specialty Food News. The $109 billion dollar specialty food industry will see a focus on health and convenience next year. The food trend forecast also shows a focus on simplicity.

"Consumers gravitate toward simpler foods and beverages, often sustainable and local,” says Denise Purcell, head of content for the Specialty Food Association. “They respond to products and new store formats that make their lives easier. But, while they may want their food simpler, they don't want it boring. There's always room for indulgence and new taste adventures."

Here are some of the trends on the menu for 2016:

• Vegetables – Vegetables are getting new respect and will be seen more in teas, yogurt, and ice cream. Seaweed will also become more popular.
• Fresh florals – Flowers will adorn chocolate, cheese, snack foods, carbonated water, and an expanding variety of teas.
• Food waste – Food retailers and makers will be looking for more creative solutions to combat food waste.
• Locally sourced foods – Locally sourced meats, seafood, and produce will continue to attract attention from consumers.
• Fungi – the mushroom is now at the intersection of several trends: vegetables, umami, and foraging.
• Snacks – Better-for-you snacks are being viewed as meal replacements by solo diners, busy parents, and even their children.
• Fat – Full-fat products once deemed forbidden are back in style, from milk to butter to red meat.
• Convenience – Food retailers large and small are testing new strategies to lure in consumers who are looking for the best in their food and willing to pay.
• Health food markets – More supermarkets will double as wellness centers with dietitians on staff, blood sugar testing, and nutrition classes.
• Latin foods – From food halls to high-end eateries, Latin American cuisine is building a forceful presence on the global culinary scene.

Fifty percent of consumers purchase specialty food and those numbers are expected to rise in 2016, according to Association research.

The November jobs report, showing an increase of 211,000 new jobs during the month, is likely to have consequences – chief among them rising interest rates for just about everything.

After repeatedly saying that a decision would be “data dependent,” it appears all but certain the Federal Reserve will vote to raise interest rates when it meets December 16. It would be the first interest rate hike in nine years.

Over the last seven years the Fed has kept its benchmark Federal Funds Rate at 0% in an effort to spur economic growth. Despite the free money, growth has been weak, at best.

If the Fed does, in fact, move on rates, it would signal a belief that the economy won't be hurt by the action. And no one expects more than a quarter of a percent move anyway.

If the Fed raises once and lets several months pass before doing it again, consumers might not even notice any change in the rates on their charge cards or variable rate loans.

Housing market could feel effects

Mortgage rates, however, could be another story – not so much caused by the Fed raising interest rates but by what such an action means. If the Fed raises rates because it believes the labor market is getting stronger, then that effect will likely be felt in the housing market.

“Job creation is a very important leading indicator of strong demand for housing,” said Jonathan Smoke, the chief economist at realtor.com. “The strong employment results for the last two years created an uptick in household formation, which drives demand for home purchases and rentals.”

Demand could put some upward pressure on rates, though it shouldn't matter that much. Rates are still near all-time lows and at least two percentage points lower than at the peak of the housing boom.

Homes getting more expensive

Smoke says an analysis of November traffic on realtor.com suggests the residential real estate market continues to follow the normal seasonal decline in demand as we head into the New Year. The median listing price remained fairly constant over last month, down just 1% to $230,000, but up 7% year-over-year.

Home prices are buoyed by a lack of available homes for sale. Should that trend continue into 2016, rising mortgage rates will be the least of homebuyers' concerns.

Rather, it will be rising home prices, more competition, and sellers not as eager to accept the first offer they get.

The economy cranked out 211,000 new jobs last month, but that didn't help the unemployment rate, which remained at 5.0% for a second straight month. Over the last 12 months, the jobless rate and the number of people out of work are down by 0.8% and 1.1 million, respectively.

According to the Department of Labor's Bureau of Labor Statistics (BLS), construction, professional and technical services, and health added jobs, while mining and information saw them disappear.

As it released the November report, BLS revised the October report to show the addition of 145,000 jobs -- 8,000 more than initially reported. October was changed also -- from 271,000 additions to 298,000.

With these revisions, employment gains in September and October combined were 35,000 more than previously reported. Over the past three months, job gains have averaged 218,000 per month.

The demographics

Among the major worker groups, the unemployment rates for adult men (4.7%), adult women (4.6%), teenagers (15.7%), whites (4.3%), blacks (9.4%), Asians (3.9%), and Hispanics (6.4%) showed little or no change last month.

The number of people who have been without jobs for 27 weeks or more was little changed at 2.1 million in November and has shown little movement since June. They accounted for 25.7% of the unemployed last month.

The civilian labor force participation rate inched higher (62.5% versus 62.4% in October), while the employment-population ratio was unchanged at 59.3% and has shown little movement since October 2014.

Where the jobs are

November's job growth occurred in construction (+46,000), professional and technical services (+28,000), health care (+24,000), food services and drinking places (+32,000), and retail trade (+31,000).

Employment in mining  (-11,000) and information (-12,000) continued to decline in November. Other major industries -- including manufacturing, wholesale trade, transportation and warehousing, financial activities, and government -- were little-changed over the month.

Average hourly earnings for all employees on private nonfarm payrolls rose by four cents -- to $25.25, following a nine cent gain in October. Over the year, average hourly earnings are up 2.3%.

The full November employment report is available on the BLS website

Cost Plus Management Services of Oakland, Calif., is recalling about 2,700 reading chairs.

The front leg on reading chairs sold without front leg support blocks can bend or break, posing a fall hazard to the user.

The company has received eight reports of front chair legs bending or breaking, including one report of an injury when a consumer fell out of the chair.

This recall involves high-back upholstered reading chairs sold in a black and white floral print. The chairs are 37-inches tall by 30-inches wide, and have four wooden legs with the front two on casters. SKU number 473747 is printed on a UPC sticker affixed to the underside of the chair.

The chairs, manufactured in China, were sold exclusively at Cost Plus World Market and World Market stores nationwide and online at www.worldmarket.com from January 2015, through September 2015, for about $300.

Consumers should immediately stop using the recalled chairs and inspect the front legs for support blocks. Chairs without support blocks can be returned to any Cost Plus World Market for a free exchange. Consumers should contact Cost Plus World Market or log onto www.worldmarket.com for instructions on how to inspect the chair legs for support blocks

Consumers may contact Cost Plus World Market toll-free at 877-967-5362 from 7 a.m. to midnight (ET) daily or online at http://worldmarketcorp.com/assets/corporate_files/CPWM_Reading_Chair_Website_Sign.pdf for more information.

Companies are often tempted to "sit out" scandals and other bouts of bad publicity, but Gallup finds that may not be possible for Volkswagen. Fully three quarters of respondents say they are familiar with the VW "dirty diesel" scandal that came to light in September.

Not only is awareness high but consumers are taking it seriously. Four in 10 (41%) say VW's use of deceptive software to trick emissions testing equipment makes them less likely to buy a Volkswagen, while 29% say the news will have no impact on their future buying decisions. Another 28% said they would never have considered buying a Volkswagen in the first place. 

When it comes to Volkswagen's reputation, the majority of consumers (69%) believe the emissions scandal will have a major or moderate impact on its brand, Gallup said.

Gallup also asked respondents to use three words or short phrases to describe the Volkswagen brand. Based on a brand analysis, Gallup determined that Volkswagen's desired or projected brand could most accurately be described using words such as "reliable," "fun" and "environmentally friendly."

But that message is no longer getting through. A mere 1.6% of respondents used these or other keywords that aligned with the Volkswagen brand, while 16% used words such as "dishonest," "liar" and "cheater" to describe the company's brand.

Down but not out

In Gallup's analysis, the VW brand is down but not out. It has a core group of customers who strongly believe in its brand.

About seven in 10 fully engaged customers say the Volkswagen scandal has no impact on their decision to purchase from the brand (71%); only 37% of actively disengaged customers say the same. Instead, two-thirds of actively disengaged customers say that they are less likely to purchase a Volkswagen.

Volkswagen's recovery will depend on rebuilding brand trust first with customers who are not fully engaged and then with new customers, Gallup analysts said.

Legal challenges

Besides the court of public opinion, VW faces an enormous number of competing lawsuits and regulatory actions. In New Orleans today, federal judges are trying to devise a strategy to speed things along. They're likely to consolidate most of the consumer cases and assign them to an appropriate court.

There's not much legal controversy involved. Volkswagen has already admitted rigging its 2.0- and 3.0-liter diesel engines to produce artificially low emissions when hooked up to testing equipment. The only real issue is how consumers should be compensated for the reduced value of their cars and for punitive damages.

The company has set aside about $20 billion to cover legal and recall costs.