Current Events in February 2016

Consumer reviews on the Internet can be very helpful tools when you are trying to find a good business and avoid a bad one. But you have to be able to trust the information.

Unfortunately, as consumers have come to rely more on sites like ConsumerAffairs, some companies have tried to game the system, creating their own review sites and passing off the content as objective consumer reviews.

New York Attorney General Eric Schneiderman investigated the practice and brought action against four firms. This week, he announced settlements that require the companies to be honest and transparent in online reviews and endorsements and pay penalties ranging from $20,000 to $50,000.

“Consumers rely on reviews and other endorsements on the Internet to inform themselves in making daily purchasing decisions,” Schneiderman said in a release. “This investigation continues my office’s historical work into ‘astroturfing’ over the Internet and signals to companies that consumers deserve honesty and transparency in their reviews, endorsements and related content.”

The four companies

Included in the settlement is Machinima, a California-based online entertainment network that distributes video content relating to video games and gaming culture via a multi-channel network. Schneiderman says his investigation found that Machinima paid gaming experts known as “influencers” to post YouTube videos endorsing Microsoft’s Xbox One system and several games.

Premier Retail Group, Inc., a chain of cosmetic and beauty supply stores, was found to be paying Yelp reviewers to post positive reviews about the stores and products, whether they had any experience with them or not.

The investigation found Here2Four, Incorporated, a California Internet marketing company, solicited over 50 freelance writers to write over 200 fake reviews of its small-business clients for $10 to $15 per review.

Finally, the investigation found New York-based Rani Spa agreed to pay a writer to post fictitious Yelp reviews.

Violates state law

Schneiderman said the practices engaged in by all four companies violated New York state law, which prohibits misrepresentation and deceptive acts or practices in the conduct of any business.

For good measure, he says it also violates the Federal Trade Commission Guide Concerning the Use of Endorsements and Testimonials in Advertising.

The National Retail Federation (NRF) is bullish on 2016.

The trade group is projecting retail industry sales -- excluding automobiles, gas stations, and restaurants -- will grow 3.1%, higher than the 10-year average of 2.7%. The NRF also says it expects non-store sales to grow between 6 and 9% this year.

“Wage stagnation is easing, jobs are being created and consumer confidence remains steady, so despite the headwinds our economy faces from international developments -- particularly in China -- we think 2016 will be favorable for growth in the retail industry,” said NRF President and CEO Matthew Shay. “All of the experts agree that the consumer is in the driver’s seat and steering our economic recovery. The best thing the government can do is stay out of the way, stop proposing rules and regulations that create hurdles toward greater capital investment and focus on policies that help retailers provide increased income and job stability for their employees.”

Report highlights

• Economic growth should be more of the same and uneven. It is likely to be in the range of 1.9 to 2.4% in 2016.
• Employment gains of approximately 190,000 on an average monthly basis are expected. While that pace is down from 2015, it is consistent with the labor market growing near its underlying trend. By year end, unemployment should drop to 4.6%.
• Prospects for consumer spending are straightforward -- more jobs equals more income, which equals more spending. However, spending will come largely from the growth in jobs and not as much from increased wages.

“The economy had a bumpy ride in 2015 with fits and starts along the way,” said NRF Chief Economist Jack Kleinhenz. “Despite the volatility, the economy continued to reduce unemployment, raise wages and actually increase real GDP by 2.4 percent.”

Kleinhenz says lower gas prices are creating more discretionary income to save, pay down debt, spend on travel, eat out, and use personal services. “Retailers have benefited as well,” he concluded, “and continue to find ways to compete and succeed in a very cost-conscious environment.”

Arctic Cat of Thief River Falls, Minn., is recalling about 1,600 turbo 9000 snowmobiles.

The brakes can fail, posing a risk of injury or death.

No incidents or injuries have been reported.

This recall involves all model year 2016 Arctic Cat turbo 9000 snowmobiles. Recalled models include the M 9000, XF 9000, XF9000 Cross Trek and ZR 9000 snowmobiles. The recalled snowmobiles were sold in black, green, orange and white.

The model name is on a decal on the top of the chassis between the seat and the rear bumper. The name Arctic Cat is on each side of the snowmobiles. The letter G in the 10th position of the vehicle identification number (VIN) indicates that the unit was made in the 2016 model year. The VIN is stamped into the chassis near the right foot rest.

The snowmobiles, manufactured in the U.S., were sold exclusively at Arctic Cat dealers nationwide from June 2015, through January 2016, for between $14,000 and $16,000.

What to do

Consumers should immediately stop using the recalled snowmobiles and contact an Arctic Cat dealer to schedule a free repair. Arctic Cat is contacting its customers directly.

Consumers may contact Arctic Cat at 800-279-6851 from 8 a.m. to 5 p.m. (CT) Monday through Friday or online at www.arcticcat.com and click on Customer Care, then Product Recall and then List of Safety Bulletins for more information.

Nuna Baby Essentials of Morgantown, Pa., is recalling about 5,700 ZAAZTM high chairs in the U.S. and Canada.

The arm bar can bend or detach during use, posing a fall hazard to children.

The company has received 50 reports of the arm bar detaching, including six reports of children falling from the high chair. Four incidents resulted in injuries, including bruising and a cut on the forehead.

This recall includes ZAAZTM high chairs in eight models:

• HC-07-004 (pewter),
• HC-07-005 (carbon),
• HC-07-006 (plum),
• HC-07-009 (almond),
• HC-08-004 (pewter),
• HC-08-005 (carbon),
• HC-08-006 (plum) and
• HC-08-009 (almond).

ZAAZ and the model number are printed under the high chair seat on a white sticker. These high chairs look like a regular kitchen table chair and have removable trays, arm bars footrests, seat pads and harnesses so that they can convert into toddler chairs. “Nuna” is printed above the footrest of the unit.

The high chairs, manufactured in China, were sold at Albee Baby, Giggle, Magic Bean, Nordstrom and other specialty stores nationwide and online at www.nuna.eu and www.wayfair.com and other online retailers from February 2013, through November 2015, for about between $250 and $300.

What to do

Consumers should immediately stop using these recalled high chairs and contact the firm to receive a free new arm bar and instructions on how to replace it.

Consumers may contact Nuna Baby Essentials toll-free at 855-686-2872 from 8:30 a.m. to 4:30 p.m. (ET) Monday through Friday or online at http://www.nuna.eu/usa/recallforthezaaz for more information.

A long era of uncertainty over the future of Internet taxes may be coming to a close. With a 75-20 vote in the Senate today, Congress passed the Permanent Internet Tax Freedom Act (PITFA), which bans taxing Internet access.

Summed up by Congress, the act “amends the Internet Tax Freedom Act to make permanent the ban on state and local taxation of Internet access and on multiple or discriminatory taxes on electronic commerce.”

While billed as a pro-consumer measure, the measure was supported most fervently by the cable and telecommunications industries.

"We applaud the Senate on today’s passage of the Permanent Internet Tax Freedom Act (ITFA)," said Michael Powell, president of the National Cable & Telecommunications Association, the cable industry's trade association. "Internet access is more than a convenience, it’s critical to the daily lives of Americans."

"By keeping Internet access free from state and local taxes, ITFA will permanently keep down the cost of connectivity, enable more American consumers and businesses to get online and allow the Internet to further power economic growth. We urge President Obama to sign this important legislation to make ITFA permanent once and for all,” said Powell. 

Permanent tax ban

PIFTA makes permanent the Internet Tax Freedom Act (ITFA), which was first passed in 1998. It placed a temporary ban, or moratorium, on taxing Internet access. 

The key word here is “temporary.” ITFA was never made permanent, even though it received bipartisan support. Some senators consistently prevented the tax ban from being made permanent. Sen. Dick Durbin (D-Ill.), for one, wanted to make passage of PITFA contingent on passage of another piece of legislation called the Marketplace Fairness Act (MFA), which stipulates that consumers must pay sales tax on online purchases.

After being promised a vote on a new MFA in 2017, Durbin finally relented and agreed to the bill’s passing, ending 17 years of annual ITFA extensions. 

The bill now awaits the signature of President Barack Obama. Whether he intends to sign it is unknown. If he does, states who have taxes in place for Internet access will need to cease collections by 2020.

When a scammer hooks a victim, he wants to make sure he gets the money neatly and cleanly, in a way that it can't be traced or recovered.

For years, money wires like MoneyGram were the method of choice. It was easily accessible for the victim and it fit the bill of untraceability. Once the money was sent, it was gone.

Because MoneyGram was often used to carry out these criminal enterprises, the attorneys general from 49 states brought a suit, claiming the company was liable. All sides have now agreed to a settlement that has two main components. There will be financial restitution for victims and MoneyGram will improve fraud detection and prevention.

Detection and prevention

The Dallas-based business must include the following:

• Mandatory and documented compliance training for agents and guidelines for when an agent’s conduct warrants suspension or termination;

• Suspension or termination of agents who fail to take reasonable steps to reduce fraudulently induced money transfers;

• A telephone and online system where employees and agents can report noncompliance with anti-fraud measures;

• Methods to track and evaluate actual fraud rates and consumer losses from fraudulently induced money transfers in order to utilize that information to improve compliance; and 

• Continued enhancement of technology solutions, including its Anti-Fraud Alert System (AFAS).

MoneyGram has agreed to pay a total of $13 million to the participating states to fund a nationwide consumer restitution program, and to cover the states’ costs and fees.

“Heartless” scams

“Sadly, con artists use an array of scams to prevail on people to wire them money,” acting New Jersey Attorney General Hoffman said in a release. “These range from the heartless ‘grandchild in distress’ scam -- in which a fraudster contacts a grandparent and falsely claims that money must be wired to assist with a grandchild’s medical or legal emergency -- to lottery and contest scams. In these lottery and contest scams, potential victims are told they’ve won a large sum of money but, in order to claim the prize, they must first wire money to cover required taxes or fees.”

Can you collect? You can if you previously filed complaints with MoneyGram between July 1, 2008 and Aug. 31, 2009 related to fraudulently induced transfers sent from the U.S. to foreign countries other than Canada. Get more information here.

Meanwhile, scammers have largely moved to an alternative way to collect funds. These days they are more likely to instruct victims to put money on a reusable money card.

A word to the wise – never send strangers money using any method that can't be traced and in which the money can't be recovered.

Dog lovers without a pooch of their own may be able to get their next dog fix with Bark’n’Borrow — an app through which you can find a dog to borrow.

The way the app works is simple. Create a profile, pass the screening to become a verified “dog lover,” and you’ll be able to connect with a community of dog lovers in your local area.

The three-sided marketplace aspect of Bark’n’Borrow allows you to become either a Sitter (someone who gets paid for their time), a Borrower (rewarded simply with canine companionship), or a dog owner looking for some extra love for your dog.

Borrowing a pup

If you’re a borrower looking to spend time with a dog — whether it’s for an afternoon walk, a day of play, or the entire time a pooch’s human is on vacation — just peruse some doggy profiles and you’ll be on your way.

Similar to a dating app for humans, each dog has a profile which includes a photo and some basic info, such as breed, obedience level, and how it well it gets along with other dogs and children. Profiles also include typical dog characteristics, such as “curious,” “affectionate,” and “energetic.”

Once you’ve found a winner, borrowers can reach out to the owner. If everyone gets along after meeting, they can arrange for dog walking or sitting later.

Despite the meet-and-greets, however, there is a definite trust aspect to the service. Handing off your dog to a relative stranger might feel a little strange to a dog owner, but the company assures owners that each potential borrower has undergone a careful vetting process.

Sharing economy

Bark’n’Borrow’s founder Liam Berkeley believes the service might be a natural step in the sharing economy. In the age of AirBnB and Uber, dog sharing doesn’t seem too outlandish a concept.

He says the idea for the app came to him when he was unable to commit to a dog due to work demands.  "I was contemplating rescuing a dog — I grew up with dogs — but I was working 12 or 13 hour days," Liam Berkeley tells Fast Company. "My girlfriend at the time was still in school and had a job on the side. So as much as we were thinking of getting one, we knew it wasn't the best idea."

So Berkeley would occasionally borrow neighbors' dogs and take them for hikes. He soon discovered there was no shortage of people like himself who missed having a dog of their own, so he decided to create the simple dog-matching service.

Dog owners and borrowers currently pay nothing for the service, but eventually Berkeley plans to charge a small fee for borrowers as well. The fee, he tells Fast Company, will help cover insurance and customer support, and a portion of the profits will go to animal rescue.

Race car driver and businessman Scott Tucker has been indicted for allegedly operating a nationwide internet payday lending enterprise that systematically evaded state laws in order to charge illegal interest rates as high as 700% on loans to cash-strapped consumers.

Tucker and his attorney, Timothy Muir, are named in criminal indictments unsealed yesterday (Wednesday) in New York. They face charges of violating the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and the Truth in Lending Act (“TILA”). Both defendants were arrested in Kansas City, Kansas. 

In Manhattan, U.S. Attorney Preet Bharara said Tucker and Muir "targeted and exploited millions of struggling, everyday people by charging illegally high interest rates – as much as 700 percent."

Bharara said the two claimed their $2 billion business was actually owned and operated by Native American tribes. "But," he said, through the work of the FBI and IRS, "this deceptive and predatory scheme to take advantage of the most financially vulnerable in our communities has been exposed for what it is – a criminal scheme.”  

Miami Tribe

Bharara also announced a non-prosecution agreement with two tribal corporations controlled by the Miami Tribe of Oklahoma. The tribes agreed to forfeit $48 million in criminal proceeds from the payday lending operation.

The indictment charges that from at least 1997 until 2013, Tucker made small, short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” through the Internet. He did business under a number of names, inclduing Ameriloan, f/k/a Cash Advance; One Click Cash, f/k/a Preferred Cash Loans; United Cash Loans; US FastCash; 500 FastCash; Advantage Cash Services; and Star Cash Processing (the “Tucker Payday Lenders”). 

The loans were issued to more than 4.5 million working people throughout the United States, including hundreds of thousands of people in New York, many of whom were struggling to pay basic living expenses, Bharara said. Many of these loans were issued in states, including New York, with laws that expressly forbade lending at the exorbitant interest rates TUCKER charged, he added.

The Federal Trade Commission has also been investigating Tucker. In January, the agency asked a federal court to pay $1.3 billion in damages to customers who were allegedly overcharged for their loans. That case is still pending.

What to do

If you believe you were a victim of one of Tucker's operations, and you wish to provide information to law enforcement or receive notice of future developments in the case, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. 

More information is available online. 

Morgan Stanley will pay $2.6 billion to settle claims that it misled investors about the value of subprime mortgages, a prime factor in the financial collapse of the last decade. 

“Today’s settlement holds Morgan Stanley appropriately accountable for misleading investors about the subprime mortgage loans underlying the securities it sold,” said Acting Associate Attorney General Stuart F. Delery in announcing the penalty, the largest in a series that has so far totaled about $5 billion.

As part of the agreement, Morgan Stanley admits in writing that it failed to disclose critical information to prospective investors about the quality of the mortgage loans underlying its residential mortgage-backed securities (RMBS) and about its due diligence practices. 

Investors suffered billions of dollars in losses from investing in RMBS issued by Morgan Stanley in 2006 and 2007, a process dramatized in the recent film "Short."

Investors misled

In today's settlement, Morgan Stanley acknowledges that it made misleading representations to prospective investors about the characteristics of the subprime mortgage loans underlying its RMBS.

In particular, Morgan Stanley told investors that it did not securitize underwater loans (loans that exceeded the value of the property).  However, Morgan Stanley did not disclose to investors that in April 2006 it had expanded its “risk tolerance” in evaluating loans in order to purchase and securitize “everything possible.” 

As Morgan Stanley’s manager of valuation due diligence told an employee in 2006, “please do not mention the ‘slightly higher risk tolerance’ in these communications.  We are running under the radar and do not want to document these types of things.” 

Through these undisclosed practices, Morgan Stanley increased the percentage of mortgage loans it purchased for its RMBS, notwithstanding its awareness about “deteriorating appraisal quality” and “sloppy underwriting” by the sellers of these loans. 

Allergy conditions are on the rise, especially among aging Baby Boomers. An alternative to moving to Arizona is to get regular allergy shots. But is it worth the money?

The injections can be expensive. Some estimates place the cost at between $720 and $1,800 per year. So, if you're going to pay for this therapy, it had better provide results.

A new study suggests allergy shots reduced symptoms by 55% after three years of therapy, and decreased the amount of medication needed for relief of symptoms by 64%.

The conclusions were reached after testing 60 people suffering from hay fever, and who were between the ages of 65 and 75. The subjects were divided into two groups.

The first group received allergy shots for three years while the second group received a placebo.

Challenges for older allergy sufferers

“Older people who suffer from hay fever may have health challenges that younger people do not,” allergist Ira Finegold, MD, said in a release. “Hay fever is often ignored in older patients as a less significant health problem because of diseases such as asthma, coronary heart disease, depression and high blood pressure. Also, some baby boomers might not realize they have allergies, and their physicians might not suggest allergy shots. The research indicated that allergy shots were extremely effective for this group.”

According to the Mayo Clinic, every time you receive an allergy shot the injection contains a tiny amount of the specific substance or substances triggering your allergic reactions. The shots contain just enough of these allergens to stimulate your immune system but not enough to cause a full-blown allergic reaction.

Gradually you get larger doses of the allergens until your system becomes desensitized and builds up a tolerance, causing symptoms to diminish over time.

Often overlooked

The researchers say older patients often get overlooked in the treatment of allergies, but the condition is widespread in people over 65.

“It’s important that allergy treatment methods commonly used in young people are also investigated for use in older patients,” said allergist Gailen Marshall, Editor-in-Chief, Annals of Allergy, Asthma and Immunology. “More and more allergists are expanding the age limit for allergy shots as the baby boomer generation enters their senior years.”

Marshall says there has never been any doubt about the effectiveness of allergy shots for both adults and children, but there hasn’t been much research until now in older patients.

The study concludes that an aging immune system doesn’t significantly influence the effectiveness of immunotherapy.

You'll find more information about allergy shots and a tool to locate a local allergist here.

The number of job-seekers packing up the truck for greener pastures is on the decline.

Outplacement consultancy Challenger, Gray & Christmas says the latest data on relocation rates show that -- on average -- 11% of those finding employment each quarter in 2015 moved for a new position. That's down significantly from a four-quarter average of 13% in 2014 and 2013.

Relocation reached a post-recession high in the second half of 2014, as 15% of job seekers pulled up stakes for new opportunities during the final two quarters of the year.

The new data is based on a quarterly survey of approximately 1,000 people completing the job search.

“It is typical to see these small windows of relocation surges,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas. “They tend to occur at the beginning of recessions and then again as the economy moves from recovery to expansion.”

A turning point

Challenger said last year definitely marked a turning point in the recovery. “We finally regained all of the jobs lost as a result of the 2008-2009 recession and, by the end of the year, the national unemployment rate fell to 5.0%. Even with the struggles in the oil industry, the number of metropolitan areas throughout the country with unemployment rates below the national average continued to grow."

The relocation rate in the last half of 2014 was the highest since the first half of 2009, when an average of 16.3% of job seekers moved in the immediate wake of the recession.

Relocation activity plunged after the first half of 2009 as home values continued to decline, which made it virtually impossible to sell an existing home without taking a significant loss. But, Challenger noted, “The housing market improved in enough places by the second half of 2014 to, once again, make relocation a job search consideration."

“However,” he continued, “the window in which relocation is the best option typically closes quickly, since moving involves so much cost and risk -- even in the strongest economy.”

What to do

Challenger advises those relocating for a new position to make professional and social networking a top priority.

“Join local professional associations related to your occupation or industry,” he said. “Volunteer for charitable and service organizations. And, do not overlook your new neighbors. Getting to know people in your new area will not only make the transition easier, but these are the people who will help you if your new employment situation does not work out.”

Initial claims

Elsewhere on the jobs front, the Department of Labor (DOL) reports that the number of people lining up to apply for unemployment benefits for the first time fell by 16,000 in the week ending February 6 to a seasonally adjusted total of 269,000.The previous week's claims level was unchanged.

The four-week moving average, which is less volatile and considered a more accurate gauge of the labor market, came in at 281,250 -- down 3,500 from the previous week.

The complete report is available on the DOL website.

Pier 1 Imports U.S. of Fort Worth, Texas, is recalling about 804 Capella Island Swivel Dining chairs in the U.S. and Canada.

The chairs can break at the base, posing fall hazard to the user.

The company has received three reports of the chairs breaking, including two reports of customers falling. No injuries have been reported.

This recall involves Pier 1 Imports Capella Island Swivel Dining chairs. The plastic wicker chairs have a natural wood color. The chair measures about 26 inches wide by 26 inches deep and 39 inches high.

The chairs, manufactured in Vietnam, were sold exclusively at Pier 1 Imports stores nationwide and online at Pier1.com from January 2015, through October 2015, for between $240 and $500.

What to do

Consumers should immediately stop using the recalled chairs and return them to any Pier 1 Imports store for a full refund or a merchandise credit.

Consumers may contact Pier 1 Imports at 800-245-4595 from 8 a.m. to 7 p.m. (CT) Monday through Friday, Saturday 9 a.m. to 5 p.m. (CT) or Sunday 10 a.m. to 6 p.m. (CT) or online at www.Pier1.com and click on the “Product Notes & Recalls” at the bottom of the page for more information.

General Motors is recalling 426,593 model year 2015-2016 Chevrolet Silverado 2500 and 3500 heavy duty trucks manufactured October 1, 2013, to February 1, 2016; 2015-2016 Chevrolet Tahoe Police Pursuit Vehicles (PPV) manufactured March 1, 2014, to February 1, 2016; and 2015-2016 GMC Sierra 2500 and 3500 heavy duty trucks manufactured October 29, 2013, to February 1, 2016.

The brake pedal pivot nut may loosen, causing the brake pedal to be loose or inoperative. If the brake pedal becomes loose or inoperative, the driver may be unable to stop the vehicle by using the brake pedal. Additionally, a loose pedal may also interfere with the accelerator pedal. Either condition may increase the risk of a crash.

What to do

GM will notify owners, and dealers will inspect the brake pedal pivot nuts, adding thread adhesive and tightening the nut as necessary, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Chevrolet customer service at 1-800-222-1020 or GMC customer service at 1-800-462-8782. GM's number for this recall is 20760.

We’ve all been there: that moment when an instant of boredom becomes twenty minutes of mindlessly toggling back and forth between apps. “This is way better than sitting here doing nothing,” your brain tells you, as you take in yet another photo of your high school friend’s dog.

While these phone-staring sessions are usually nothing more than a time waster, they can easily turn into something more harmful if left unchecked. As technology sinks its roots deeper into our daily lives, digital dependency is becoming more common. For many, device use can spiral into compulsion territory.

So how can you tell if you’re in an unhealthy relationship with your smartphone? You can start by turning it off, says Mariya Shiyko, PhD., an Assistant Professor in Northeastern University’s Department of Applied Psychology.

Take a break

According to Shiyko, an expert on digital detoxes, the best way to tell if you could stand to distance yourself from your device is by turning it off for a few hours.

“See if you can continue engaging with life without constantly thinking about the end of this miserable break, compulsively reaching for your phone or checking the time,” says Shiyko in an interview with ConsumerAffairs. During this break, are you able to function well and enjoy life? If not, then you may be too dependent on your device.

“You know it’s not healthy if you NEED your device,” says Shiyko, adding that if your happiness and well-being become tied up in anything else — whether it’s drugs, alcohol, or your phone — it has become an addiction. Digital addiction is no different from any other forms of addiction, she says.

There’s nothing wrong with a glass of wine just as there’s nothing inherently wrong with technology, explains Shiyko — but with each, there is the potential for misuse. 

Detoxing

If you’ve decided to give technology a rest, the next question might be “How?” — especially if you frequently use your device for work purposes. Shiyko says that as with anything else, you can go big or small.

Digital detoxing, she says, is similar to a bodily cleanse in that there are many different routes to take. “A spring cleanse for your body might look like a week on juices and light vegetarian meals or it may be one fasting day per week continuously,” says Shiyko. “Everyone needs to find what works for them.”

She suggests choosing one weekend a month to keep your phone and email locked up. Or you could go smaller by detaching yourself from computers and devices for half a day on a weekend, or simply by turning them off after 8 PM daily.

Instead of being glued to a computer screen or a TV, go outside or make plans to visit your friends or family in person, says Shikyo. In conquering your reliance on technology, you’ll experience benefits similar to those of a person who is mentally healthy — less stress, anxiety, depression, and higher levels of life satisfaction.

“The more mental freedom one has, independently of gadgets or political news,” says Shiyko, "the more one can enjoy meaningful interpersonal interactions, creativity, and multitudes of opportunities that technology enables.”

Coming of age precisely as the housing market collapsed should, by all accounts, have caused millennials to become leery of mortgages — but it hasn’t. Despite the housing crash, research shows that more than 85% of the millennial generation still believe that owning a home makes more financial sense than renting.

It comes as a surprise to many that the generation known for choosing to buy the latest gadget rather than a big-ticket item would be interested in owning property. But the general public has the wrong perception about them, says Yilan Xu, a professor of agricultural and consumer economics at Illinois.

"It doesn't seem like they would want to. But it turns out that millennials still do eventually want to own a home,” says Xu. “They just face significant obstacles in doing so."

According to a new paper co-written by a University of Illinois expert in household and individual financial behaviors, there are several factors that affect the housing demand of the millennial generation, including mortgage accessibility, the burden of student loan debt, and the fact that millennials are taking their time settling down and starting families.

All of these factors indicate that the American dream of homeownership is not dead, says Xu — it’s just deferred.

Upside in delay

According to Xu, there is an upside in millennials delaying homeownership. In considering what happened during the credit expansion, Xu notes that many people who were not really ready for homeownership were lured into it.

“That’s certainly not what we want to see again,” she says. But Xu explains that the more stringent credit conditions will select the more financially prepared millennials for homeownership.

“As a result, millennials' homeownership will be more sustainable, and their financial stability and wealth accumulation may be enhanced,” says Xu. “If that's the case, then maybe a little delay in buying their first home isn't too bad if they're a more responsible homeowner."

Older millennials

Last year, as we reported, the generation once pigeonholed as renters surprised us. Millennials accounted for 68% of first-time home buyer sales in the first half of the year, according to the NAR’s 2015 Home Buyer and Seller Generational Trends report.

This is an important piece of data, says Realtor.com’s Chief Economist Jonathan Smoke, because the people who have increased the demand (and price) of rental inventory are increasingly trading rent payments for mortgages.

“People who believe that Millennials are disinterested in home ownership are grossly mistaken,” said Smoke. He adds that they’ve just had to work a little harder to establish credit and save for a down payment.

But now that older millennials are beginning to enjoy the life events that drive homeownership — marriage and children — now is the most appropriate time for them to consider homeownership, says Smoke. We’re beginning to see the impact of that, he says.

Crooks have been using stolen Social Security numbers to try to get information that could be used to steal tax refunds, the Internal Revenue Service said.

Most of the automated attacks were aimed at generating E-file PINs, the IRS said. The PINs would then be used to generate phony returns or to waylay refunds.

The Social Security numbers were used in abot 464,000 automated attacks, of which about 101,000 successfully generated a PIN, the IRS said.

The agency, which is no stranger to hacking, said that no personal taxpayer information was disclosed in this incident and said that affected taxpayers would be notified by mail.

You may have mail

Consumers should note that the official notification will come via the U.S. Postal Service. Scam artists will soon be out in force, sending emails and calling taxpayers claiming to be the IRS. 

Last May, the IRS admitted that hackers had stolen the personal data of as many as 334,000 taxpayers after initially saying only 100,000 had been affected.

Senate Finance Committee Chairman Orrin Hatch (R-Utah) says he will question IRS Commissioner John Koskinen about the attack at a hearing today, the Wall Street Journal reported.

“While it appears that the IRS was able to successfully block this attempted breach this time around, it’s past time we fundamentally rethink our approach in authenticating taxpayers and processing tax returns,” Mr. Hatch said, according to the Journal.

Federal Reserve Chair Janet Yellen was the subject of close attention Wednesday as she testified before the House Financial Services Committee.

After all, since the Fed hiked its key interest rate in December, the stock market has been in turmoil, with averages selling off significantly. Some market analysts have suggested the U.S. economy is sliding into a recession and have questioned the Fed's wisdom in hiking rates in the face of a slowing economy.

But if anyone expected Yellen to back away from the Fed's December rate hike, they were disappointed. Yellen told the committee that since her last appearance before it in July, the economy has made further progress toward full employment. In fact, the January unemployment rate fell to 4.9%.

The Fed Chair did, however, concede that there could be some rough spots on the economic horizon.

Less supportive of growth

“Financial conditions in the United States have recently become less supportive of growth, with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar,” Yellen said in prepared testimony. “These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor market, although declines in longer-term interest rates and oil prices provide some offset.”

"If" may be the key word in that paragraph. Right now there is no strong consensus on the direction of the economy. Yellen said the Fed would be looking to see if there are ongoing employment gains and faster wage growth. If there are, she says that should promote faster economic growth.

With rapid economic growth comes inflation – at least it has in the past. The Fed's policy of gradually raising interest rates is designed to keep inflation under control.

In her appearance before the committee, Yellen made it clear that the Fed began on the path of rising interest rates because it believes the economy is growing, and so far it has seen nothing to suggest it was mistaken.

Trouble outside the U.S.

But she acknowledged that might not be the case in the rest of the world, and global economic trouble can always have a negative impact in the U.S. While the Fed is raising rates as a hedge against possible inflation, Japan has instituted negative interest rates – meaning it costs money to put money into bonds – to head off deflation.

“As is always the case, the economic outlook is uncertain,” Yellen said. “Foreign economic developments, in particular, pose risks to U.S. economic growth.”

She points to economic problems in China as a potential trouble spot that could have ramifications in the U.S. She also conceded that inflation remains below the Fed's target of 2%, which to many suggests the U.S. economy is not growing that fast.

But Yellen attributes the low rate to a steep drop in energy prices. She again defended the Fed's decision in December to hike interest rates, saying it reflected the belief that economic activity would continue to expand at a moderate pace and labor market indicators would continue to strengthen.

Retail gasoline prices continue to fall across the U.S., hitting levels even the experts believed would never be seen again.

The national average price of self-serve regular is around $1.72 a gallon, according to the AAA Fuel Gauge Survey. A year ago, the average price was $2.17 a gallon.

Motorists can thank oil prices, which continue to fall in the face of an increasing supply glut. AAA reports the U.S. is swimming in oil, with crude oil inventories at their highest level for this time of year in nearly eight decades.

Barring any major disruptions in supply, AAA predicts gas prices will remain near their lowest price point since the Great Recession, at least for the next couple of weeks. Once refineries begin to curtail operations for seasonal maintenance, oil prices will be less of a factor and gasoline prices should rise a bit.

The end of the decline?

Also, gasoline demand usually starts to increase in February, reaching its peak in August.

The combination of increased demand and reduced supply often leads to upward swings in the price at the pump. Still, with prices so low and oil prices headed down instead of up, increases at the pump should be fairly painless.

For years, the national average gasoline price has disguised the fact that gas was cheap in some parts of the country and really expensive in other parts. AAA says prices are now more even than they've been in years, with the southeast and southwest still enjoying the lowest prices but the Pacific northwest not outrageously expensive.

According to AAA, drivers in 44 states continue to pay gas prices below $2 per gallon. Oklahoma pays the least at $1.42 a gallon. Hawaii pays the most at $2.63 a gallon.

In addition, prices at the pump are moving in the right direction, as far as drivers are concerned. Gasoline prices are down in nearly every state week-over-week and consumers in 20 states are saving a nickel or more per gallon at the pump.

The biggest price drops in the last week came in the Midwest. Drivers in Ohio and Indiana saw their price drop 14 cents a gallon. Michigan motorists are saving 13 cents a gallon.

Job openings rose to 5.6 million in December, according to new figures from the Bureau of Labor Statistics, for an openings rate of 3.8%.

The number of openings for private payrolls was up, but was little changed for government. Openings increased in construction (+69,000), nondurable goods manufacturing (+60,000) and durable goods manufacturing (+26,000). In the regions, job openings increased in the West.

The number of job openings (not seasonally adjusted) increased over the 12 months ending in December for total nonfarm and total private, and edged up for government. The largest changes in openings over the year came in health care and social assistance (+172,000) and finance and insurance (+99,000). The number of job openings increased  over the year in the Northeast, Midwest, and West.

Hires

There were 5.4 million hires in December -- little changed from November, but up 5.0 million from December 2007, the first month of the recession. The hires rate for the month was 3.7%. There was little change in the number of hires for total private and government, with what gains there were coming in professional and business services.

Over the 12 months ending in December, the number of hires (not seasonally adjusted) was little changed for total nonfarm and total private and edged up for government. At the industry level, hires increased in accommodation and food services (+93,000); transportation, warehousing, and utilities (+43,000); and federal government (+11,000). Hires edged down in construction. The number of hires was little changed in all four regions over the year.

Separations

Total separations includes quits, layoffs and discharges, and other separations, with total separations referred to as turnover. Quits are generally voluntary separations initiated by the employee, while layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, and disability, as well as transfers to other locations of the same firm.

There were 5.1 million total separations in December, roughly the same as November, for a total separations rate of 3.5%. There was little change in the number of total separations for total private and government. In December, total separations edged up in accommodation and food services and in state and local government. The number of total separations was little changed in all four regions.

Quits

There were 3.1 million quits in December for a rate of 2.1%, with the number of quits coming in higher than in December 2007 (2.8 million). The number of quits rose for total private and government over the month. Quits rose in state and local government (+20,000) but fell in nondurable goods manufacturing (-25,000). Quits increased in the South over the month.

The number of quits (not seasonally adjusted) increased over the 12 months ending in December for total nonfarm, total private, and government. Quits increased over the year in several industries with the largest changes occurring in professional and business services (+102,000), accommodation and food services (+68,000), and retail trade (+58,000). In the regions, quits rose in the South and Midwest.

Layoffs and discharges

There were 1.6 million layoffs and discharges -- little changed from November, for a rate of 1.1%. The number of layoffs and discharges was little changed over the month for total private and unchanged for government, and showed little change in all four regions.

The number of layoffs and discharges (not seasonally adjusted) decreased over the 12 months ending in December for total nonfarm and total private and edged up for government. Layoffs and discharges rose in mining and logging (+7,000) and fell in construction (-129,000) and retail trade
(-64,000). The number of layoffs and discharges was little changed in all four regions over the year.

Other

In December, there were 411,000 other separations for total nonfarm, little changed from November. Over the month, the number of other separations was little changed for total private at 343,000 and for government at 68,000.

Over the 12 months ending in December, the number of other separations (not seasonally adjusted) fell for total nonfarm and total private and was little changed for government. Other separations increased over the year in federal government (+7,000). Other separations decreased in the South region 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.

Conversely, 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 December 2015, hires totaled 61.4 million and separations totaled 58.8 million, yielding a net employment gain of 2.6 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.