Current Events in March 2016

You can add the Federal Trade Commission (FTC) to the long list of those suing Volkswagen. The agency wants the automaker to be ordered to compensate the 550,000 consumers who bought or leased a TDI "clean diesel" car from VW.

“For years Volkswagen’s ads touted the company’s ‘Clean Diesel’ cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests,” said FTC Chairwoman Edith Ramirez. “Our lawsuit seeks compensation for the consumers who bought affected cars based on Volkswagen’s deceptive and unfair practices.”

U.S. Senator Bill Nelson (D-Fla.) had asked the agency in September to investigate VW after news of the defeat devices broke. 

“This was one of the most egregious examples of a company deceiving the public,” said Nelson in a statement today.  “Hopefully, the court will provide adequate redress to consumers and send a strong message that this type of corporate behavior won’t be tolerated. ”

VW is struggling to come up with a plan to retrofit the emission control devices on its cars so that they comply with federal and California emission standards. A federal judge in California last week gave VW 30 more days to submit a plan to the court. If it fails to do so, the court could order Volkswagen to buy back the cars or otherwise compensate owners.

The FTC's suit charges that Volkswagen deliberately deceived consumers from 2008 through 2015 with advertisements and promotional materials targeting environmentally-conscious consumers, promising that its TDI-equipped cars produced lower emissions than other diesels while achieving high gas mileage and spirited performance.

In fact, the suit says the cars produced up to 4,000 percent more than the legal limit of nitrogen oxides (NOx), a harmful chemical that damages the environment and causes respiratory problems in humans and other animals.

"Our most important priority is to find a solution to the diesel emissions matter and earn back the trust of our customers and dealers as we build a better company," VW said in a statement.

The final accounting has yet to be done, but from the figures available now, it appears March will be another record month for new car sales.

Kelley Blue Book (KBB) reports that preliminary data suggests sales surged 8% this month, at a seasonally adjusted annual rate of 17.2 million vehicles. KBB says sales were helped by still-low interest rates and two extra selling days.

“The industry continues to maintain its momentum in March as we expect the highest volume of any month in more than 10 years,” Tim Fleming, analyst for Kelley Blue Book, said in a statement.

That said, the multi-month trend of ever-increasing car sales might be running out of steam. Fleming says there are indicators suggesting that demand for new cars is weakening. Carmakers had to offer more incentives, and boost fleet sales, to keep the sales totals moving higher.

Up 24% from February

The projected 8% rise over March 2015 might be eclipsed by comparisons to last month. KBB said it projects March new vehicle sales rose 24% from February.

It could turn out to be the highest March sales total since 2000, and the strongest month since July 2005, when the U.S. was roaring along, propelled by the housing bubble.

KBB projects Fiat Chrysler will win the month, posting double-digit growth in March. Its biggest improvement likely came on exceptionally strong sales of Dodge Grand Caravan and Chrysler Town & Country minivans. The Jeep brand also provided a boost, posting strong year-over-year strength, thanks in part to the Renegade.

Honda also had a good March. KBB says strong sales of the new Civic likely will give the carmaker a double-digit growth rate for the month. The Honda Pilot was one of the fastest-selling models in March, averaging just 18 days on dealer lots.

Losing ground

KBB projects that three automakers – Volkswagen, General Motors, and Toyota – lost ground in March. Its estimate projects VW sales dipped the most, declining 0.6% as it continues to deal with the fallout from the diesel emissions cheating scandal.

Low gasoline prices may be driving new car sales. Lower prices at the pump certainly seem to be influencing consumers' purchase decisions, as KBB notes continued strong sales in March for trucks and SUVs.

Monday's revised first quarter Gross Domestic Income (GDI) estimate shocked a lot of economists. It probably shouldn't have.

Wall Street traders have been sharply divided since the start of the year, with some saying the U.S. economy is doing just fine and others warning that the economy is headed for recession – and the market for steep losses.

The GDI estimate revision, to just 0.9%, promises to escalate the debate in the next couple of weeks. Analysts downgraded expectations in the face of evidence that consumers aren't spending that much.

The U.S. may be doing better than the rest of the world, but the fact is, economies everywhere appear to be slowing down. That might not seem like a terrible thing – we haven't had a recession since that really bad one, from 2007 to 2009 – except that a lack of growth right now threatens a lot of things.

Fed policy

For one thing, the Federal Reserve is trying to pursue a policy of gradually raising interest rates. It hiked rates in December for the first time in six years, telegraphing that more hikes are coming. The last thing it wants to do is raise rates heading into a recession.

Fed Chair Janet Yellen may provide some clues about the central bank's plans when she speaks to the Economic Club of New York later today.

The U.S. stock market's valuation is based on growth. People buy stock in companies with the assumption that profits will increase and the value of the company will also go higher. If that assumption is wrong, investors won't continue to buy stocks unless their price goes down.

This is a problem for millions of Baby Boomers and other retirees who have the bulk of their retirement savings in stocks. If the value of those stocks goes down, these retirees will lose a lot of money – at least on paper.

It is worth noting that retirees who did not panic and sell when the stock market suffered steep declines in the wake of the financial crisis did just fine. The market quickly regained all the ground it lost.

But if the economy isn't growing, or threatens to slide into reverse, that threatens to reduce the value of retirees' assets, so they'll spend less. Baby Boomers, who drove the consumer economy for 40 years, are buying fewer “things” anyway, since many are trying to downsize.

Millennials, who are coming along behind them, have a value system that largely frowns on conspicuous consumption. They're even content to share things, like cars and houses, and save their money. At some point that has to have an effect on the economy.

Technological changes

So what may be at work here is a generational and cultural shift that is having profound – but thus far unrecognized – impact on the economy.

Technology is also having a disruptive effect on the economy. Stores in small towns now have to compete with Amazon.com. Etsy has allowed artisans to market their product to a global audience.

The technology effect is about to get even more pronounced. Author John Hornick says 3D printers will make a company's former customers their competitors.

“Presently, the products that can be self-manufactured are limited, but it won't always be that way,” Hornick said in an email to ConsumerAffairs. “Given enough time, anyone will be able to make almost anything, away from control.”

He says that means retail outlets that once sold mass-produced products will vanish, just like camera stores vanished when photography went digital.

The disruption to the old economy will increase, as people figure out easier and cheaper ways to do things and companies just won't be able to keep up. In fact, it may just be getting started.

It appears spring has brought with it a little consumer optimism about the course of the economy.

The Conference Board reports its Consumer Confidence Index has rebounded a bit from its February decline. After slipping to 94.0 last month, the Index now stands at 96.2.

The Present Situation Index dipped from 115.0 to 113.5, while the Expectations Index rose to 84.7 in March from 79.9.

“Consumers’ assessment of current conditions posted a moderate decline, while expectations regarding the short-term turned more favorable as last month’s turmoil in the financial markets appears to have abated,” said Conference Board Director of Economic Indicators. “On balance,” she added, “consumers do not foresee the economy gaining any significant momentum in the near-term, nor do they see it worsening.”

Current conditions

Consumers’ appraisal of current conditions eased in March, with those saying business conditions were “good” slipped from 26.5% to 24.9%. On the other hand,, those who said conditions are “bad” edged down from 19.0% to 18.8%.

Consumers’ appraisal of the labor market was mixed. Those who think jobs are “plentiful” rose from 22.8% to 25.4%, while consumers who believe jobs are “hard to get” also rose -- to 26.6% from 23.6%.

The outlook

Consumers were more optimistic about the short-term outlook than they were in February. The percentage expecting business conditions to improve over the next six months was up moderately to 15.0% from 14.5%, while those expecting business conditions to worsen was down sharply from 11.6% to 9.2%.

The outlook for the labor market was more favorable as well. Those who expect to see more jobs in the months ahead increased slightly from 12.2% to 12.9%, while those who think there will be fewer jobs fell from 17.7% to 16.3%.

The proportion of consumers expecting higher incomes dipped from 17.7% to 17.2%, while the proportion who believe their paychecks will shrink edged up from 11.6% to 11.8%.

The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was March 17.

Home prices across the country rose over the last 12 months.

On a year-over-year basis, the S&P/Case-Shiller U.S. National Home Price Index (HPI), covering all nine U.S. census divisions, was up 5.4% in January.

The 10-City Composite rose 5.1% for the year., while the 20-City Composite’s year-over-year gain was 5.7%. After seasonal adjustment, the National, 10-City Composite, and 20-City Composite rose 0.5%, 0.8%, and 0.7%, respectively, from the prior month.

West leads the year-over-year advance

Portland, Seattle, and San Francisco reported the highest year-over-year gains among the 20 cities, with another month of double digit annual price increases. Portland was on top with an 11.8% year-over-year price increase, followed by Seattle with 10.7%, and San Francisco with a 10.5% increase.

Eleven cities enjoyed greater price increases in the year ending January 2016 versus the year ending December 2015. Phoenix posted an annual gain of 6.1% in January 2016 versus 6.3% in December 2015, ending its streak of 12 consecutive months of increasing annual gains. The western part of the country saw the largest price gains in the past year; the northeast is the weakest region.

Month-over-month

Before seasonal adjustment, the National Index, the 10-City Composite, and the 20-City Composite all were unchanged in January. After seasonal adjustment, all three composites reported strong advances.

Eleven of 20 cities reported increases in January before seasonal adjustment; after seasonal adjustment, all 20 cities increased for the month.

Inventory worries

“Home prices continue to climb at more than twice the rate of inflation,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “The low inventory of homes for sale -- currently about a five month supply -- means that would-be sellers seeking to trade-up are having a hard time finding a new, larger home.

The recovery of the sale and construction of new homes has lagged the gains seen in existing home sales, but this may be starting to change. Starts of single family homes in February were the highest since November 2007, and the single-family-home share of total housing starts was 70% in February, up from a low of 57% in June 2015.

“While low inventories and short supply are boosting prices,” Blitzer said, “financing continues to be a concern for some potential purchasers, particularly young adults and first time home buyers. The issue is availability of credit for people with substantial student or credit card debt.”

Blitzer said one hopeful sign is that the home ownership rate -- at 63.7% in the 2015 fourth quarter -- may be turning around. It is up slightly from 63.5% in the 2015 second quarter but far below the 2004 high of 69.1%.”

Sadly, tragedies happen everyday. When they hit close to home -- to family, friends, or colleagues -- thoughts often turn to fundraising. Not too long ago, such efforts might be limited to a bake sale, spaghetti dinner, or other neighborhood effort.

Today, technology and social media extend the reach of volunteer fundraising far beyond what was possible just a few years ago. For example, when veteran Associated Press and UPI journalist Sofia Mannos was paralyzed in an accident at her Washington, D.C., home, friends turned to GoFundMe, hoping to raise $35,000 for a motorized wheelchair.

At last word, 92 donors had kicked in $7,470 in the first month. Contributions have been coming in from journalists and friends around the world who worked with Mannos at one point or another in her extensive career -- a response that would not have been possible without the Internet.

One potential difficulty in raising money through such means is that contributions are not tax deductible, as they are when giving to an established charity, which might dissuade some donors. Also, while immediate friends and acquaintances may keep track of how the efforts turn out, some potential donors may worry about whether their money will be used well.

Existing charities

Experts advise that, besides raising money from friends and family, victims of catastrophic accident or illness should should look to existing charities that offer grants and other types of assistance.

In Mannos' case, this might include the United Spinal Association, which publishes an extensive directory for those seeking financial assistance but which did not respond to a request for comment on this article.

The Bryon Riesch Paralysis Foundation is one of those listed in the spinal group's directory. Besides funding research, It makes charitable grants to paralyzed people and provides scholarships to individuals suffering from paralysis or families with a parent dealing with a neurological disorder. 

In 2015, it made several grants to help purchase wheelchairs, modify vehicles, install stair lifts, and modify homes. 

Named for the onetime Superman star, the Christopher Reeve Foundation provides a New Injury Packet to newly-paralyzed consumers and their families. 

What to do

Our point is that those looking to help someone in trouble have more resources available than ever. Besides the traditional bake sales, car washes, etc., there are Internet funding sites and, just as important, search engines that can help locate foundations and non-profits organizations like those mentioned above.

Besides providing direct help, non-profits can also frequently guide consumers to government agencies that offer services, training, and grants. 

GoFundMe offers tips on how to organize an effective online fund-raising effort.

Watch for scams

But while the Internet can be a boon in raising funds and conducting research, it can also be a pathway to scams, phony offers, and well-meaning but misguided do-gooders, the Federal Trade Commission (FTC) warns.

"These days, charities and fundraisers (groups that solicit funds on behalf of organizations) use the phone, face-to-face contact, email, the internet (including social networking sites), and mobile devices to solicit and obtain donations. Naturally, scammers use these same methods to take advantage of your goodwill," the FTC says in an advisory.

The FTC warns against fund-raisers who ask for an immediate donation, refuse to provide information about their organization and ask you to wire funds. Additional tips from the FTC are located here.

Supposed charitable appeals on Facebook should also set off alarm bells, as many, if not most, are scams. 

It's been six months since the official switch-over from magnetic strip credit cards to ones with embedded computer chips. The new EMV technology, used in many other parts of the world, is more secure.

While you may have received replacement cards with the embedded chips, you may not be finding many retailers where you can use them. Personal finance website CardHub.com has conducted a study, finding that 42% of retailers have not upgraded terminals in any of their stores.

The study authors call this “shocking,” since for the last six months, retailers have been liable for any fraudulent purchases made in their stores.

Waiting for certification

Retailers, meanwhile, say it isn't their fault. A spokesman for the National Retail Federation (NRF) recently told Yahoo Finance that once chip readers have been installed, the installation must be certified by the credit card industry. That process, he says, is taking longer than anyone expected.

The CardHub survey suggests consumers are either confused or ambivalent about the whole issue. Among the consumers questioned, 41% don't have an embedded chip credit card. More than half of consumers – 56% – didn't care if a retailer's terminal was EMV compliant.

Retailers have not been overly enthusiastic about the move to chip readers. For one thing, it means investing in new technology. For another, retailers have not been sold on the system's security.

Arguing for better security

As we reported in early October, the NRF urged adoption of an EMV system that requires a PIN, arguing that a simple signature is easily forged, negating the cards' enhanced security features.

The NRF also warned that if small businesses were forced to adopt EMV technology, alternatives like near-field communication contactless payment, mobile wallets, and other smartphone-based technology “may effectively be locked out of the market.”

According to the CardHub survey, about one-third of retailers in the survey have upgraded to chip readers at 90% to 100% of their stores. They include some of the nation's major retailers, such as Costco, CVS, and The Home Depot.

America's preoccupation with food is evolving from what tastes good to what is healthy. Younger consumers, especially, are being more careful about what they put into their bodies.

With a new study being conducted seemingly every day, however, it's hard to keep up with what's healthy and what's not. Sometimes, the studies contradict one another.

That's prompted nutritionists at the Texas A&M Health Science Center to cut through the clutter and get back to basics. They offer up 10 foods that should be a regular part of your diet.

Almonds

Nuts have fat, but not the bad kind. And a handful of almonds every once in a while is a tasty way to add an antioxidant to your daily diet. Alyssa Burns, a researcher at the University of Florida Institute of Food and Agricultural Sciences says almonds are a good source of plant protein -- essential fatty acids, vitamin E, and magnesium.

Eat almonds on a consistent basis and you can reduce your risk of heart disease, diabetes, and even cancer.

Apples

You know what they say about an apple a day. It might be something of an exaggeration, but the truth is, apples do provide a good source of dietary fiber.

There is some evidence that compounds from apples can slow down the aging process and might even reduce the risk of stroke.

Avocados

The A&M team says avocados can be a healthy source of fat – the good kind that lowers cholesterol and reduces heart disease risk. That makes the creamy, green fruit a good substitute of other kinds of fat in your diet.

Beans

Chances are that beans are already a part of your diet. If not, they are easy to add. Mankind has been serving up some type of bean for the last 10,000 years.

They provide protein fiber, and many vitamins and minerals. The A&M scientists recommend eating half a cup each day to take advantage of their nutrients.

Blueberries

Blueberries may be a tiny fruit, but they pack a powerful antioxidant punch. The A&M team points to studies that have shown that the anthocyanins in blueberries are effective in reducing chronic inflammation.

A 2013 study in Circulation: Journal of the American Heart Association found eating three or more servings of blueberries and strawberries per week could help women reduce their risk of a heart attack by as much as one-third.

As a bonus, blueberry consumption can help with erectile dysfunction in men and short-term memory in children and elderly.

Broccoli

Former President George H.W. Bush once famously said he hated broccoli, but the A&M team says it should be on your menu from time to time. Among its health benefits – it's loaded with vitamin C and folic acid, and is a good source of fiber and potassium.

Studies have also shown that a compound in the plant can reduce inflammation associated with heart disease.

Cranberries

Cranberries should be served all year round, not just on the holidays. This fruit has active ingredients known for treating urinary tract infections. Doctors also recommend them for reducing the risk of cardiovascular disease, inflammatory bowel disease and various types of cancer.

Leafy greens

Take your pick – spinach, kale, turnips, and cabbage – a leafy green will add vitamins C, K and E, folate, carotenoids, and fiber to your diet.

The USDA recommends adults eat three to four cups of leafy greens every week.

Oily fish

Fish can provide something you need in your diet – omega-3 fatty acids. This substance can do a lot of good things, including lowering blood pressure and reducing the risk of heart disease and rheumatoid arthritis.

Sweet potatoes

Sweet potatoes have high nutritional value, providing a lot of the vitamins and minerals you need. As a bonus, nutrients found in the potato are thought to be effective weapons against cancer, diabetes, and inflammation.

In what one analyst called “promising strides,” pending home sales rose to their highest level in seven months during February.

The National Association of Realtors (NAR) reports its Pending Home Sales Index (PHSI) -- a forward-looking indicator based on contract signings -- rose 3.5% to 109.1 last month. The PHSI is now 0.7% above the same month a year ago, and, while it has now increased year-over-year for 18 consecutive months, the annual gain in February was the smallest in that time frame.

NAR Chief Economist Lawrence Yun is encouraged by the February performance.

"After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year and a modest, seasonal uptick in inventory," he said. "Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what's being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau."

Yun says the one silver lining from last month's noticeable slump in existing-home sales was that prices were up less than 4.4%. While that's still above wage growth, he says its more favorable -- from a buyer's perspective -- than the 8.1% annual increase in January.

"Any further moderation in prices would be a welcome development this spring," adds Yun. "Particularly in the West, where it appears a segment of would-be buyers are becoming wary of high asking prices and stiff competition."

Sales by region

All major regions except for the Northeast saw an increase in contract signings.

• The PHSI in the Northeast dipped 0.2% to 94.0 but is still 12.6% above a year ago.
• In the Midwest the index shot up 11.4% to 112.6 and is now 2.5% above the previous February.
• Contract signings in the South rose 2.1% to a reading of 122.4 but have posted a year-over-year decline of 0.4%.
• The index in the West climbed 0.7% to 96.4 but is now 6.2% below a year ago.

Looking ahead

Existing-homes sales this year are projected to rise 2.4% from 2015 -- to around 5.38 million.

The national median prices for existing homes is expected to increase between 4% and 5%. Prices jumped 6.8% in 2015.

Smartphones are often the last thing we see at night and the first thing we look at in the morning -- but gazing into the glow of screens is not at all conducive to sleep. Research has shown that staring into the blue light of tablet or smartphone displays actually suppresses the production of melatonin, leaving you feeling wide awake.

But while that bright blue light may not exactly be a soothing digital lullaby, smartphones can help expedite your journey towards dreamland in other ways. Several apps have been specially designed to help you drift off quickly and easily without requiring you to stare into your phone. 

Sleep apps

Trouble falling asleep is not uncommon. The American Academy of Sleep Medicine estimates that, here in the U.S., 30% of adults have symptoms of insomnia. Whether you find yourself tossing and turning frequently or just occasionally, a few apps are out there to help you get to sleep faster.

• MySleepButton. This cognitive science-based app, which works on Android/iOS, aims to help settle a busy mind by having it focus on one mental image at a time. Just select how long you’d like the app to play, then a woman will begin saying words such as “pencil” or “teddy bear.” By imagining each of the simple images, the brain is prevented from dwelling on other concerns. There’s even a mode that allows you to imagine drawing various items. It's available as a free download on iOS. For Android users, it’s $2.99. 
• Sleep Genius. Astronauts have used Sleep Genius to help them fall asleep, but the earth-bound will love this app just as much. The program combines four neuroscientific elements known to help the brain enter into sleep mode. Sleep Genius will even wake you up in the morning, but not in the harsh way that a beeping alarm clock would. With its Revive Cycle Alarm, users will be gradually awakened over a five-minute period with soothing sounds. Other features include a Power Nap mode, a Relaxation Program, and the ability to monitor the quality of your sleep. It's available in the App Store for $4.99.
• Sleepmaker Rain. If rainy days make you want to curl up and take a nap, this app might have the same effect on you at bedtime. Even at night, the brain is wired to be alert to sounds that might signal danger. Research shows that a little white noise or nature sounds can help drown out sounds that might cause your sleep to be needlessly interrupted. Choose from a variety of rain sounds, from medium level rain against a window to “torrential downpour.” Restless kids might benefit from this app at bedtime, too. It's available for free on Android.
• Relax & Sleep Well. This app uses hypnosis and meditation to help reduce stress and anxiety, allowing you to fall asleep easier. Created by hypnotherapist and self-help audio author Glenn Harrold, this app offers a 27-minute hypnotherapy session over a background of soothing sounds. The special frequencies of the background sounds pair well with the meditation and aim to help you slip into a deeper meditative state. It's free on Android and $1.99 for iPhone users. 

Students at 91 former Corinthian College campuses in 24 states will have an clearer path to loan forgiveness, U.S. Education Secretary John B. King Jr. said today.

The action comes just one day after Corinthian was hit with a $1.1 billion judgment that may help provide additional relief to struggling ex-students.

The 91 campuses were identified as having the largest groups of borrowers eligible for loan relief by investigators from the Department of Education and state attorneys general.

The program is available to students who attended Everest and WyoTech colleges in these states: 

• California,
• Colorado,
• Florida,  
• Georgia, 
• Illinois,
• Indiana, 
• Maryland, 
• Michigan,
• Minnesota,
• Missouri, 
• Nevada,
• Ohio, 
• Oregon, 
• Pennsylvania, 
• Massachusetts,  
• New Jersey, 
• New York, 
• Texas,
• Utah, 
• Virginia, 
• Washington,
• West Virginia,  
• Wisconsin, and
• Wyoming.

If that includes you, you can apply for debt relief through a form posted here. The Department is reaching out to those students through postal mail, email, partner organizations and other means.

The DOE has approved loan discharges for more than 8,800 former Corinthian students nationwide, totaling more than $130 million.

"With a straw ..."

The DOE's efforts are not a raging success in the eyes of critics, however. One non-profit group, The Institute for College Access and Success (TICAS) said the debt relief program so far has been "like draining a swimming pool with a straw."

"Despite the Department’s outreach to date, few students are aware that debt relief is available.  Only a fraction of eligible Corinthian students have applied and less than three percent have been approved (with most approved because their school closed, not based on fraud), TICAS vice president Pauline Abernathy said in a statement.  

"It’s like draining a swimming pool with a straw -- even a streamlined application is an unnecessary barrier to the relief these students deserve because the Department has already determined that their school committed fraud," Abernathy said. "We urge the Department to provide automatic discharges to all groups of students covered by findings of fraud, rather than requiring them to submit individual applications."  

Placement rates

King made the announcement in Boston with Massachusetts Attorney General Maura Healey, who said her investigation found that Corinthian's two Everest Institute campuses in Massachusetts misrepresented their job placement rates.

"When Americans invest their time, money and effort to gain new skills, they have a right to expect they'll get an education that leads to a better life for them and their families. Corinthian was more worried about profits than about students' lives," King said.

Last summer, the DOE created a similar form for students at 12 Heald College campuses after fining the institution $30 million for misrepresenting job placement rates to current and prospective students. In November 2015, the department published additional findings of misrepresentation at 20 Everest and WyoTech campuses in California and Florida.

Students in other states may be eligible for debt relief as the investigations continue.

Food prices are often blamed for increases in the cost of living but grocers will tell you consumers need a better understanding of why food prices fluctuate.

Industry analyst Phil Lempert, who writes the Supermarket Guru blog, says that while it's true food prices are up significantly from ten years ago, the Consumer Price Index for food has declined each month since November 2015.

"For many shoppers, there still is sticker shock at each checkout experience, and frankly I think the industry needs to do a better job communicating why prices did go up so much and why they are falling now," Lempert writes. "Most shoppers still do not have a clue where their food comes from and how weather conditions around the planet has affected supplies and costs."

The highest increases over that ten-year period were for ground beef -- more than 65% -- and eggs, which went up 110% because of the Bird Flu epidemic, Lempert notes. But such spikes aren't permanent and Lempert says the price of beef is expected to drop as much as 17% this year, thanks to heavier cattle and an increase in production.

Lempert also predicts falling prices for boneless chicken breast meat and pork, both expected to fall by as much as four percent this year despite the drive for better living conditions at chicken farms.

Consumers tend to forget that rising restaurant prices reflect a lot more than the cost of food. In recent years, higher minimum wages and healthcare costs have played a much larger factor, he says.

Food and energy 

Food and energy are, of course, the most volatile factors in the Consumer Price Index and the decline in energy prices in recent months has helped keep overall living costs in check despite increases in housing costs.

The Department of Labor's (DOL) Consumer Price Index (CPI) dipped a seasonally adjusted 0.2% in February, thanks in large part to falling energy costs. During the last 12 months, prices have risen just 1%.

The drop in energy costs more than offset the rise in the price of food in February. 

Are you getting enough sleep at night? If you’re not, then you may have more problems than being groggy at work the next day. Sleeping habits are closely associated with your metabolism, so if you aren’t getting enough then you can expect symptoms like increased appetite and insulin insensitivity.

As a result, many people who don’t get enough sleep end up developing serious health problems, like obesity, metabolic syndrome, type 2 diabetes, and cardiovascular disease. Understanding that this link is problematic is important, but why are sleep and these issues connected in the first place?

It’s a question that researchers from Florida Atlantic University have been trying to answer, and it’s possible that they may have figured it out. In a study that examined fruit flies, the researchers found that a conserved gene called translin was responsible for modulating sleep in response to metabolic changes.

Altering genes and behaviors

The researchers point out that, up to this point, there have not been many answers when it came to linking metabolic problems with lack of sleep. “Despite widespread evidence for interactions between sleep loss and metabolic dysfunction, little is known about the molecular basis of this interaction and how these processes integrate within the brain,” said corresponding author Alex C. Keene.

So in order to fill in that knowledge gap, researchers began studying fruit flies, who are shockingly similar to humans when it comes to their sleeping habits. For example, if fruit flies do not get enough sleep then their memory performance drops. Their sleep can also be negatively affected by stimulants like caffeine, which any person who has mistakenly drank a cup of regular coffee late at night can also attest to.

Like humans, fruit flies also have trouble going to sleep if they are hungry; the tiny insects will often sacrifice sleep time in order to go out and scavenge for food. Knowing this, researchers created scenarios for the fruit flies that would either encourage them to sleep or go out and forage for food. During these scenarios, the researchers tested and manipulated gene levels to see if they could provoke an abnormal response.

Eventually, the researchers found that altering translin in the fruit flies led to atypical actions. When the number of neurons were decreased in translin, the insects were able to sleep despite being on an empty stomach.

Important evidence

The results of the study indicate that translin is not needed in order to experience feelings of starvation, but it does have a large effect on our inability to go to sleep if we are hungry.

“While many genes have been identified as genetic regulators of sleep or metabolic state, mounting evidence from our study indicates that translin functions as a unique integrator of these processes,” said study co-first author Kazuma Murakami.

“The identification of genes regulating sleep-feeding interactions will provide important insight into how the brain integrates and controls the expression of complex behaviors,” added Keene.

The full study has been published in the journal Current Biology.

General Electric (GE) launched a creative and amusing television advertising campaign last fall, built around a recent college grad named Owen.

Owen proudly tells his parents and friends that he is going to work for GE as a programmer, but no one gets it. They can't understand why a smart and gifted computer programmer would want to work for an industrial company.

The campaign earned a thumbs up from AdWeek, after it debuted in September on The Late Show With Stephen Colbert.

What is GE selling?

The spots are so engaging and entertaining that the viewer has to watch a lot of them before asking the question, “Hey, what exactly is GE selling?”

The company makes every type of appliance you can think of and a host of household goods – but none of the commercials show a single product.

After GE recently began airing the second phase of the campaign, such as the spot below, that the real purpose was very clear to see. These commercials are actually recruiting ads, aimed at smart, bright Millennials coming out of college.

Phase two

The second phase of the campaign features other young people who now want to work for GE too. It might seem a bit extreme to spend millions of dollars on a network television ad campaign to recruit employees. But high-tech corporations have complained in recent years that it is hard to attract the people with the skills they need.

And apparently it's working. Tony Denhart, University Relations Leader at GE Corporate, tells Business Insider GE is seeing an increase in applications from major colleges. He also says the company is fielding more queries from students and faculty, who want to know more about GE technologies.

Will we see other technology companies develop mass market advertising campaigns that are really stealth help wanted ads? Maybe. And if it recruits the employee who develops the next killer app, it might be worth it.

General Motors is recalling 3,137 model year 2016 Malibus manufactured February 16, 2016, to March 5, 2016.

The two weld studs that mount the front and rear side impact air bags may fracture and separate from the air bag during deployment. As such, these vehicles fail to comply with the requirements of the Federal Motor Vehicle Safety Standard (FMVSS) No. 214, "Side Impact Protection."

Fractured weld studs may allow the side air bag to move out of position during deployment, increasing the risk of injury.

What to do

GM will notify owners, and dealers will replace the side air bag modules, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Chevrolet customer service at 1-800-222-1020. GM's number for this recall is 31820.

A U.S. District Court judge has given Volkswagen one more month to come up with an acceptable plan to get its rigged diesel engines off the road, after the automaker failed to meet today's deadline. 

A VW attorney said the company's engineers are "working around the clock" to find a fix for a software device that gives deceptively low emission readings when a TDI "clean diesel" car is being tested, but then pollutes at as much as 40 times the legal limit when the test is over.

But while Volkswagen engineers may or may not be working around the clock, some consumers are wondering how they are supposed to get around now that their VW diesels have been outed as anything but clean.

That's the fix California motorist Christianne finds herself in. She bought a diesel-powered Volkswagen in 2012, thinking she was doing something good for the environment. But now she's unable to renew her registration because the car can't pass California's tough smog test, she told ConsumerAffairs. 

"The DMV states I need a smog check and a certificate from VW dealership for a proof of correction certificate," Christianne said. That, of course, is something she won't be able to get for as long as Volkswagen fails to get approval from state and federal agencies for its plan to make the cars meet the specifications it originally promised.

"I am stuck in a bind, it seems," Christianne said, reflecting the position a growing number of consumers are likely to face as their registrations come up for renewal, a procedure that in most states requires a smog test.

Fixed or scrapped

The delays are causing environmental damage as well as hurting individual consumers, according to Sierra Club California Chapter Director Kathryn Phillips who said the polluting vehicles "need to be fixed or taken off the road, and the consumers who trusted they were buying less-polluting cars need to be compensated. Period."

"Otherwise the legacy of Volkswagen’s deceitful actions will be as dirty and dangerous as the smog left behind by their vehicles -- people will continue to breathe dirtier air, consumers will lose faith in watchdog agencies, and manufacturers will believe they can cheat and get away without feeling the full consequence," Phillips said.

Concrete proposal

In court today, judge Charles Breyer said he wants a "concrete proposal" by April 21. Options include a technical fix approved by federal and state environmental agencies and a buyback plan or other remedies no one has yet thought of. At a hearing in February, Breyer had given VW one month to come up with a plan that could be executed within six months. 

Breyer said today that if the latest deadline isn't met, he will consider setting a trial date for this summer to hear more than 500 consumer lawsuits that are being consolidated into a single trial through a process called multidistrict litigation.

That could potentially allow the court to impose a settlement on VW, which initially denied it had phonied up the emission controls, then admitted it had but claimed only a handful of engineers know about it. Now the company says it needs more time to organize a defense.