Current Events in May 2016

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    Democratic chair co-sponsors bill to hamper CFPB's regulation of payday lenders

    Groups call on Debbie Wasserman Schultz to withdraw her support of the pro-industry bill

    While Republicans work to tighten the purse strings of the Consumer Financial Protection Bureau (CFPB), a number of Democrats -- including Democratic National Chair Debbie Wasserman Schultz -- are co-sponsoring a bill that would restrict the CFPB's ability to regulate payday lenders.

    An activist group says it has gathered 40,000 signatures demanding Wasserman Schultz' ouster and today, television viewers in her South Florida district are seeing TV and cable ads that include a recent news clip in which she calls payday lending "unfortunately ... necessary." 

    "What’s truly ‘unfortunate’ is that Debbie Wasserman Schultz is still refusing to put her constituents and millions of vulnerable Americans ahead of an industry that has given her more than $68,000 in campaign cash,” said Karl Frisch, executive director of Allied Progress, a liberal advocacy group. 

    Opponents of the measure Wasserman Schultz is co-sponsoring say it would encourage states to adopt the "Florida model" of regulating payday lenders, a model consumer groups have called "disastrous."

    “The average borrower in Florida pays more than 300% interest and ends up taking out nine loans each year. They find themselves trapped in a cycle of debt while payday lenders rake in piles of cash they then turn around and donate to powerful politicians like Wasserman Schultz. How anyone could describe this racket as ‘necessary’ – unfortunate or not – is beyond me," Frisch said. 

    New rules 

    The controversy is raging as the CFPB is expected to announce new national rules reigning in some of the worst abuses of the payday lending industry during a field hearing in Kansas City later this week.

    It also coincides with a nasty spat between Wasserman Schultz and Sen. Bernie Sanders (I-Vt.), who has accused Wasserman Schultz and other party bosses of being openly biased in favor of apparent front-runner Hillary Clinton in the contest for the Democratic Presidential nomination. 

    Sanders has called the fees charged by banks and other lenders "usury" and said he would open bank-like storefronts in post offices if elected. 

    Frisch says Wasserman Schultz should withdraw her support for H.R. 4018, the "Consumer Protection and Choice Act," which would prohibit the CFPB from enforcing its payday rules in any state that had enacted its own regulations. 

    Wasserman Schultz is one of nine Democratic co-sponsors of the bill, which has 15 Republican co-sponsors.  

    Allied Progress said it is making an initial investment of $100,000 to air its ad on network and cable television beginning May 31 and will be running it for at least a week.

    While Republicans work to tighten the purse strings of the Consumer Financial Protection Bureau (CFPB), a number of Democrats -- including Democratic Natio...

    Is a new housing bubble forming?

    Median home prices are well beyond pre-housing crash levels in many markets

    The year-long housing market narrative has been one of rising prices, which has been cheered as a good economic sign.

    After all, the housing crash of 2008-09 left millions of homeowners underwater and led to widespread foreclosures.

    But real estate marketplace Zillow reports home prices are now rising faster than anyone expected. And it isn't due to a robust economy – it's because the supply of homes for sale has shrunk, making the homes that are on the market worth more.

    In its existing home sales report for April, the National Association of Realtors (NAR) said the median price for all types of homes was $232,500 – a gain of 6.3% year-over-year.

    Zillow uses a different metric to measure home prices, and it places the median home price in the U.S. significantly less, at $187,000. Still, that's a 5% increase over the last 12 months and may be a cause for concern.

    Worries

    "The temporary relief from mortgage rates currently near three-year lows has helped preserve housing affordability this spring, but there's growing concern a number of buyers will be unable to find homes at affordable prices if wages don't rise and price growth doesn't slow," said Lawrence Yun, NAR's chief economist.

    The Zillow report shows a wide gap in home prices, depending on the market. While prices seem to be rising in most markets, the median price appears to be reaching bubble proportions in some markets faster than others.

    For example, in Dallas-Fort Worth, the median home price gained 12.6% in the last 12 months, but is only $183,000. San Francisco, meanwhile, saw a 10% appreciation in the median home price, which is now $806,800.

    Wide price variations

    Using Zillow's national median home value of $187,000 as a baseline, the median home in Dallas is 2% below the national average. However, the median home in San Francisco is more than four times the national average.

    Denver, the nation's hottest housing market, saw the median home value rise 15.2% in the last year to $336,600 – nearly twice the national average. The median home price in Los Angeles is $567,700, more than three times the national average.

    But the median home prices in Houston, Detroit, and Atlanta remain well below Zillow's national average, yet values grew in all three metros last year by at least 6%.

    If a housing bubble is forming, it isn't universally recognized. People in Atlanta aren't seeing it. But home buyers in markets where inventory is low and high-income jobs are plentiful certainly are.

    The year-long housing market narrative has been one of rising prices, which has been cheered as a good economic sign.After all, the housing crash of 20...

    Exposure to nicotine could lead to ADHD, behavioral disorders in babies

    Smoking during and right after pregnancy could change your baby's brain chemistry

    The health risks of smoking while pregnant are well known. The Centers for Disease Control and Prevention (CDC) states that pregnant women who smoke, or are exposed to secondhand smoke, during pregnancy are more likely to experience pregnancy complications, including birth defects and even miscarriage.

    The health concerns attributed to smoking don’t stop after birth, though – and not all of them relate to physical health. A new study conducted at Yale shows that early exposure to nicotine can change a baby’s brain chemistry. This can lead to behavioral changes, as well as the development of disorders like attention deficit and hyperactivity disorder (ADHD), addiction, and conduct disorder.

    Changing brain chemistry

    Researchers came to these conclusions after conducting a study that tested the effects of nicotine on mice. They found that nicotine is able to affect the way that synapses are formed between brain cells by changing the way that a master regulator packages DNA. This affected the way that mice paid attention to different stimuli.

    “When this regulator is induced in mice, they pay attention to a stimulus they should ignore,” said senior author Marina Picciotto. In other words, it affected how the mice focused on the world around them, a symptom that is indicative of ADHD and other behavioral disorders.

    Additionally, the researchers found that mice who were exposed to nicotine early in their development displayed these same behavioral problems later in life. A genomic screening confirmed that these mice had higher levels of histone methylation, a key regulator that controls how DNA wraps around chromosomes.

    Understanding effects of nicotine

    Young mice were not the only specimens that were affected by changes to regulators in this way. The researchers found that adult mice who had histone methylation inhibited became calmer -- but when these levels were increased (mimicking the effects of nicotine), these mice also exhibited behavior that was indicative of ADHD.

    The researchers believe that these regulators could be the key to understanding how nicotine can affect brain chemistry.

    “It is exciting to find a signal that could explain the long-lasting effects of nicotine on the brain cell structure and behavior,” said Picciotto. “It was even more intriguing to find a regulator of gene expression that responds to a stimulus like nicotine and may change synapse and brain activity during development.”

    The full study has been published in the journal Nature Neuroscience.

    The health risks of smoking while pregnant are well known. The Centers for Disease Control and Prevention (CDC) states that pregnant women who smoke, or ar...

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      Communication expert sees some simple fixes for airport delays

      TSA urged to communicate better with novice travelers before they get to the gate

      The Memorial Day weekend came and went without headlines or viral videos about excessive waits to get through airport security. There were still extended waits at some airports, but nothing like the breakdowns that occurred the previous week.

      While things may have temporarily improved, Transportation Security Administration (TSA) officials say there will be no quick and easy fix. TSA, Congress, and the Airlines have blamed one another for the mess and passengers seem to blame all three.

      “Blame is great but it doesn’t solve anything,” said Guy McHendry, an assistant professor in the Department of Communication Studies at Creighton University.

      A communications expert, McHendry has studied the delays at security checkpoints as a communication issue. He says he's observed several problems.

      Failure to communicate

      McHendry says TSA has very little communication directed at consumers who rarely travel by air. When confronted with security procedures, their lack of understanding of what is expected from them can slow things down.

      He notes that TSA has blamed passengers, in part, for the bottlenecks since they aren't prepared when they reach the checkpoint. But whose fault is that, he asks?

      “Seasoned travelers have it down to a science, they do it so regularly,” McHendry said. “But there’s another segment of travelers, arguably a larger segment, that doesn’t fly very often and, therefore, they see security as an interruption and inconvenience and they don’t always understand what it is they’re supposed to do at a checkpoint.”

      Things that could help

      McHendry says clearer statements of the expectations, better signage, and a cheerful TSA screener walking lines and providing helpful reminders could help move the process along. Better communication, he says, might also reduce the number of prohibited items that show up at checkpoints, contributing to delays.

      Finally, McHendry says better TSA internal communication might help morale and slow the turnover of personnel that has contributed to staff shortages.

      “TSA has to ask itself why people are leaving and what the impact will be,” he said.

      Another possible reason for the security bottlenecks may have its origins in drills conducted late last year. TSA officials carried out a number of operations in which people purposefully tried to get prohibited items through the security lines.

      Officials were chagrined to find that it was relatively easy to do. Early this year TSA screeners expanded their screening duties to ensure no banned items made it onto the aircraft.

      The Memorial Day weekend came and went without headlines or viral videos about excessive waits to get through airport security. There were still extended w...

      Ad-blockers are now used by 22% of the world's smartphone users, report says

      Marketers continue to scramble for ways to advertise on the 'blocked web'

      According to a new report, 419 million people (22% of the world’s smartphone users) are now using mobile ad-blocking technology.

      PageFair's numbers also indicate that 408 million people are using mobile browsers that block ads by default.

      Smartphone users in China account for 159 million instances of mobile ad-blocking, while India is home to 122 million people using browsers that block ads.

      Mobile ad-blocking isn’t as quite as prevalent in Europe and here in North America, where there were 14 million monthly active users of mobile ad-blocking browsers as of March 2016.

      Finding new approaches

      Nancy Hill, CEO of 4A’s, says these numbers validate a long-standing concern in the digital media industry. The report also highlights a need for advertisers to rethink their marketing strategies.

      “Consumers are pushing back on mobile and online ads,” said Hill in a statement. “Now is the time for advertising professionals and marketers to take a hard look at ourselves to understand why consumers are not responding to these types of ads, and figure out how we can correct the issue to better engage with the consumers we’re trying to reach.”

      An earlier discussion, which sought the opinions of global stakeholders, delved into topic of sustainable advertising on the 'blocked web'. A report on the outcome of the discussion can be viewed here

      According to a new report, 419 million people (22% of the world’s smartphone users) are now using mobile ad-blocking technology.PageFair's numbers also...

      Student debt relief programs were bogus, feds and Florida charge

      Meanwhile, no one does anything about TEACH Grant's wrongful conversions of grants to loans

      The epidemic of student debt has led to any number of bogus debt relief schemes. The Federal Trade Commission (FTC) and the state of Florida last week took action against two allegedly phony student debt relief schemes, and defendants in a similar FTC action filed earlier this year have agreed to get into another line of work.

      “The FTC is not going to stand on the sidelines when it uncovers evidence of fraudsters targeting students,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Consumers should be wary of any company that claims it can eliminate or greatly reduce debt, especially if they ask for money in advance.”

      Federal and state agencies are powerless, however, to combat such government-sanctioned frauds as the U.S. Education Department's TEACH Grant program, which recruits young teachers to take assignments in troubled schools, then routinely converts their grants to loans, claiming administrative errors.

      Teachers stuck paying wrongful debts call the program "legalized theft." Federal bureaucrats and elected officials know about the problem but have done nothing. 

      The private-enterprise schemes are more easily dealt with.

      "These latest joint actions will help protect Floridians, as well as many across the country, from these companies’ unscrupulous debt relief operations and ensure that those responsible will be held accountable,” Florida Attorney General Pam Bondi said.

      Consumer Assistance Project

      The FTC and Florida charged that the Consumer Assistance Project lured borrowers with promises such as “GET RID OF YOUR DEBT TODAY!” and then charged illegal up-front fees -- typically $250, plus monthly fees of up to $303 -- for as long as 36 months.

      According to the complaint, the defendants pretend to evaluate these consumers for eligibility and then tell them they qualify for government student loan forgiveness programs that will reduce their debt by at least 50 to 70 percent. In reality, the FTC alleges, consumers are not likely to meet the strict requirements of these loan forgiveness programs.

      Student Aid Center

      In the second case, the Student Aid Center Inc., and its owners allegedly enticed people with promises such as “Get Your Student Loans Forgiven Now!” and “$17,500 in Up Front Forgiveness?”

      Student Aid Center also told consumers they were “approved” or “pre-approved” for loan forgiveness or lower monthly payments, which they could get by paying up-front monthly fees, typically $199 or more for five months.

      The defendants’ websites, including studentloanforgiveness.org, included more false claims, and their telemarketers deceived people with false promises of a 100 percent money-back guarantee, the complaint alleges.

      Attorneys general in Washington and the District of Columbia have also filed actions against Student Aid Center.

      Good EBusiness

      In a separate case, the operators of another student debt relief scheme have agreed to a settlement with the FTC that will permanently ban them from the debt relief business.

      The FTC alleged that Tobias West and his wife, Komal West, the owners of Good EBusiness, Select Student Loan Help LLC, and Select Document Preparation Inc., charged consumers up-front fees of $500 to $800 based on phony claims that they could renegotiate, settle, or alter payment terms on student loan debt.

      In addition, the FTC charged that two of the defendants deceptively marketed home loan and student modification services under the name “AAP Firm,” illegally charging advance fees ranging from $1,000 to $5,000.

      The epidemic of student debt has led to any number of bogus debt relief schemes. The Federal Trade Commission (FTC) and the state of Florida last week took...

      Consumer confidence down in May for second straight month

      Personal incomes and spending were on the rise

      Another drop -- the second in as many months -- for consumer confidence.

      The Conference Board reports its Consumer Confidence Index, fell to 92.6 in May from 94.7 a month earlier.

      Both the Present Situation Index and the Expectations Index were lower, dropping from 117.1 to 112.9, and 79.7 to 79.0, respectively.

      A large part of the decline was due to consumers rating current conditions less favorably than in April. In addition, “Expectations declined further,” said Lynn Franco, director of Economic Indicators at The Conference Board, “as consumers remain cautious about the outlook for business and labor market conditions. Thus, they continue to expect little change in economic activity in the months ahead.”

      How they see it

      Consumers’ assessment of current conditions weakened in May, with the percentage seeing business conditions as “good” improving from 24.2% to 25.9%, but those saying business conditions are “bad” also increasing -- from 18.2% to 21.6%.

      Consumers’ appraisal of the labor market was less favorable. The proportion who think jobs are “plentiful” was virtually unchanged at 24.3%; however, those who say they are “hard to get” rose from 22.8% to 24.4%.

      Consumers were less optimistic about the short-term outlook than last month. Those who expect business conditions to improve over the next six months rose from 13.8% to 15.1%, while those expecting them to worsen also rose -- from 10.8% to 11.6%.

      The outlook for the labor market also was less favorable. Those anticipating more jobs in the months ahead was roughly the same at 12.8%; those anticipating fewer jobs jumped from 16.7% to 18.1%.

      The proportion of consumers who see their incomes rising improved from 15.8% to 16.2%, while those expecting a reduction held at 12.4%.

      The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was May 19.

      Personal income, spending

      The Commerce Department reports that personal income increased $69.8 billion, or 0.4% in April, while disposable personal income (DPI) -- what's left after personal current taxes -- rose $63.5 billion, or 0.5%.

      Personal consumption expenditures (PCE), meanwhile, increased $119.2 billion, or 1.0%.

      Compensation

      Wages and salaries were up $38.6 billion, after rising $30.7 billion in March. With that, private wages and salaries increased $37.2 billion, and government wages and salaries increased $1.4 billion.

      Personal outlays and saving

      Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- soared to $121.7 billion in April, compared with an increase of just $1.8 billion in March.

      Personal saving -- DPI less personal outlays -- was down to $751.1 billion in April from $809.4  billion the month before. As a result, the personal saving rate -- personal saving as a percentage of disposable personal income -- dropped to 5.4%, from 5.9%.

      The full report is on the Commerce Department website.

      Another drop -- the second in as many months -- for consumer confidence.The Conference Board reports its Consu...

      Steady gains continue for home prices

      Values were up in March on both an annual and monthly basis

      A leading measure of U.S. home prices shows increases in value continued during March.

      On a year-over-year basis, the S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, posted a 5.2% gain with the 10-City Composite and the 20-City Composites’ year-over-year gains unchanged at 4.7% and 5.4%, respectively, from the previous month.

      The highest gains among the 20 cities with another month of annual price increases came in Portland, Seattle, and Denver. Portland led the way with a 12.3% surge, followed by Seattle at 10.8%, and Denver with an increase of 10.0%. Ten cities reported greater price increases in the year ending March 2016 versus the year ending February 2016.

      “The economy is supporting the price increases with improving labor markets, falling unemployment rates and extremely low mortgage rates,” said David M. Blitzer, managing director & chairman of the Index Committee at S&P Dow Jones Indices.

      “Another factor behind rising home prices is the limited supply of homes on the market. The number of homes currently on the market is less than 2% of the number of households in the U.S. -- the lowest percentage seen since the mid-1980s.”

      Month-over-month

      The National Index was up 0.7% in March, with the 10-City Composite recording a 0.8% month-over-month increase while the 20-City Composite rose 0.9%. Six cities saw prices rise, one city was unchanged, and prices dropped in 13 cities.

      A leading measure of U.S. home prices shows increases in value continued during March.On a year-over-year basis, the S&P;/Case-Shiller U.S. National Ho...

      Noble House recalls counter stools

      The kick plates of the counter stools can have a sharp edge

      Noble House Home Furnishings of Chatsworth, Calif., is recalling about 2,000 counter stools.

      The kick plates of the counter stools can have a sharp edge, posing a laceration hazard to consumers.

      The firm has received six reports of the stools injuring consumers, including scratches and cuts.

      This recall involves Noble House’s Louigi and Tate counter stools with solid wood legs and a metallic kick pate.

      The Louigi black leather counter stool has a backrest and measures about 18 inches wide by 26 inches deep by 41 inches tall. The backless Tate counter stools were sold in white or brown and measure about 16.5 inches wide by 16.5 inches deep by 27 inches tall.

      “MADE BY: PERMAISURI CO., LTD: No. 30 YUANCUO ROAD HONGSHANQIAO, FUZHOU, FUJIAN 350002 CHINA” is stamped on a tag on the underside of the stool’s seat.

      The stools, manufactured in China and Vietnam, were sold online at Amazon.com, ATC.com, eBay.com, Greatdealfurniture.com, Groupon.com, Houzz.com, Overstock.com and Wayfair.com from October 2013, through March 2015, for about $120.

      What to do

      Consumers should immediately stop using the recalled stools and remove the kick plates from the stools and contact Noble House for free replacement kick plates, including shipping.

      Consumers may contact Noble House toll-free at 888-600-6376 from 8:30 a.m. to 5:30 p.m. PT Monday through Friday or online at www.noblehousefurniture.com and click on the Safety Recall link at the bottom of the page.

      Noble House Home Furnishings of Chatsworth, Calif., is recalling about 2,000 counter stools. The kick plates of the counter stools can have a sharp...

      Mitsubishi recalls Lancers and Lancer Evolutions

      Airbag inflators may rupture resulting in serious injury or death to vehicle occupants

      Mitsubishi Motors North America (MMNA) is recalling 38,628 model year 2006-2007 Lancers and Lancer Evolutions manufactured June 29, 2005, to June 19, 2007, equipped with certain airbag inflators.

      In the event of a crash necessitating airbag deployment, these inflators may rupture due to propellant degradation occurring after long-term exposure to absolute humidity and temperature cycling.

      An inflator rupture may result in metal fragments striking the vehicle occupants resulting in serious injury or death.

      What to do

      MMNA will notify owners, and dealers will replace the passenger front airbag inflator, free of charge. The manufacturer has not yet provided a notification schedule.

      Owners may contact MMNA customer service at 1-888-648-7820. MMNA's number for this recall is SR-16-002.

      Mitsubishi Motors North America (MMNA) is recalling 38,628 model year 2006-2007 Lancers and Lancer Evolutions manufactured June 29, 2005, to June 19, 2007,...

      Model year 2012-2016 Fiat 500s recalled

      The driver may not be able to shift gears

      Chrysler (FCA US LLC) is recalling 39,217 model year 2012-2016 Fiat 500s equipped with a manual transmission, manufactured June 21, 2010, through January 12, 2016.

      The clutch diaphragm spring may fracture and fail, causing an inability to switch gears and increasing the risk of a crash.

      What to do

      The remedy for this recall will include the installation of a clutch pedal limiter and a clutch pedal switch. Interim notices will be mailed to owners in June 2016. Owners will receive a second notice when remedy parts become available.

      Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is S34.

      Chrysler (FCA US LLC) is recalling 39,217 model year 2012-2016 Fiat 500s equipped with a manual transmission, manufactured June 21, 2010, through January 1...

      New app shows kids how their meal will affect the environment

      Encourages kids to think about the impact of their dietary choices

      Kids rarely regard food as anything more than fuel. And the rare meal that isn’t mom-curated is usually selected by a child’s taste buds.

      Pondering how food choices affect the planet generally isn't on the menu among middle school-aged children -- but soon, a new app may change that.

      The University of Illinois has begun developing a new educational software application that will introduce middle school students to the topic of climate change and show them how the food they eat affects the environment.

      Students who use the Food for Thought computer app can drag food selections to a virtual plate on the screen. The app will then tally the nutritional data and carbon footprint associated with each item and reveal just how much Mother Earth will be sacrificing to produce the meal.

      Curriculum and instruction professor, Emma Mercier, says the app focuses on two main learning goals: to make kids aware of the causes and impacts of climate change and help them become “data literate” -- which is to say, she adds, “knowledgeable consumers of the media.”

      Small choices matter

      At the end of a nine-day curriculum on the topic of climate change, Mercier and her research team gathered together the children in their test group. Then, on a big computer screen, kids could enter the information they recorded in their food diaries over the weekend.

      After kids looked at the carbon footprints associated with their meals, they were challenged to put together a calorie-sufficient meal that had the least impact on the planet.

      The researchers were surprised to discover that children were highly engaged in the activity.

      "The excitement level -- and noise -- in this room was astounding," Mercier said in a statement. "The teachers who observed their students' work in the lab said that even the kids who are usually difficult to engage were very engaged with this activity.”

      One student even said she was inspired to eat something other than a steak while out to dinner with her parents -- a true testament to the idea that kids are very much on board with the idea that small choices do matter.

      Kids rarely regard food as anything more than fuel. And the rare meal that isn’t mom-curated is usually selected by a child’s taste buds.Pondering how ...

      Americans increasingly pessimistic about retirement

      But despite concerns, survey finds they aren't doing much about it

      Americans are living longer. That's the good news.

      The bad news is, longer life could mean you live your last years in poverty, if you end up outliving your money.

      As you might expect, this is a growing fear among the aging population. Northwestern Mutual has released its 2016 Planning & Progress Study, showing two thirds of Americans think there is some chance that they will outlive their savings.

      Drilling down in the numbers, the survey found that just over one third believe there is a better than 50% chance of that happening. Notably, 14% are convinced that will be their fate.

      Despite this prevailing belief, the survey found that Americans aren't doing much about it. Just 21% reported increasing their savings while more than four in 10 say they have taken no steps at all.

      Social Security skepticism

      Not only are Americans doubtful about their ability to save enough for retirement, they also express strong doubts about the government's minimal safety net – Social Security. Just 25% of those polled are very confident that Social Security will be there when they retire.

      About 28%, in fact, mentioned uncertainty about Social Security as one of the main obstacles to having a financially secure retirement.

      The survey found just 35% of Americans who have yet to retire expect that Social Security will be the major part of their retirement income compared to 49% of current retirees.

      Rebekah Barsch, vice president of planning for Northwestern Mutual, says the survey should serve as an incentive for Americans to get serious about their non-working years.

      "The prospect of an extended retirement in an environment of diminishing safety nets makes it even more essential that your financial plan is flexible enough to stretch as long as needed," she said.

      What to do

      While money for retirement doesn't have to be contained in an account designated for that purpose, there are tax advantages to using a retirement account, like a 401(k) offered through your employer or an Individual Retirement Account (IRA). The advantage is that money grows without being taxed, until it is withdrawn.

      Many people don't have access to retirement plans through their employers. To address that need, the government last year introduce MYra, a basic IRA that has no fees. It carries no risk of loss but returns only a small amount of interest.

      Surveys have shown the biggest impediment to retirement savings is most people think they have enough trouble just paying the bills each month. Talking to a non-profit credit counselor or financial advisor may help you establish a savings plan, even if it is a very small amount each month.

      Personal finance experts say that once a savings plan is in place, it will be easier to build on it over time.

      Americans are living longer. That's the good news.The bad news is, longer life could mean you live your last years in poverty, if you end up outliving ...

      U.S. economy picks up (a little) steam, but remains sluggish

      Consumer spending was among the factors

      A second look at how the nation's economy was doing in the first quarter shows the growth rate was a bit stronger.

      The Bureau of Economic Analysis (BEA) reports real gross domestic product (GDP) -- the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes -- increased at an annual rate of 0.8%.

      While that's a bit better than the 0.5% reported in the advance estimate released a month ago, it pales in comparison to the 1.4% growth rate chalked up in the final three months of 2015.

      Consumer spending picks up

      The increase in real GDP results from increases in personal consumption expenditures (PCE), residential fixed investment, and state and local government spending.

      Those advances were partly offset by declines in nonresidential fixed investment, exports, private inventory investment, and federal government spending. Imports -- a subtraction in the calculation of GDP -- decreased. 

      The overall slowdown from the fourth quarter of last year reflects a larger decrease in nonresidential fixed investment, a deceleration in PCE, and a downturn in federal government spending. Those were offset -- in part -- by an upturn in state and local government spending, and a speedup in residential fixed investment.

      Inflation and corporate profits

      The price index for gross domestic purchases -- GDP inflation -- increased 0.2% in the first quarter, compared with an increase of 0.4% in the fourth quarter of 2016. Excluding food and energy prices, the “core” GDP rate increased 1.4%, compared with a 1.0% advance in the final three months of last year.

      Corporate profits were finally in the black. Following a plunge of $159.6 billion in the fourth quarter, they increased $6.5 billion in the first three months of this year.

      The complete report is available on the BEA website.

      A second look at how the nation's economy was doing in the first quarter shows the growth rate was a bit stronger.The Bureau of Economic Analysis (BEA)...

      Redesigned BMW X1 earns top IIHS award

      The vehicle also offers an optional front crash prevention system

      BMW tweaked its 2016 X1 model and walked away with the Insurance Institute for Highway Safety's (IIHS) top award for safety.

      The key was earning a good small overlap rating. The driver's space was maintained reasonably well in the test, with maximum intrusion of about 4 inches at the lower door hinge pillar and at the instrument panel.

      In the test of the previous version, intrusion reached 16 inches at the footwell, trapping the dummy's right foot.

      Like its predecessor, the new X1 earns good ratings in the moderate overlap front, side, roof strength, and head restraint tests.

      Optional front crash prevention system

      The X1's newly available front crash prevention system earns an advanced rating from IIHS. In track tests at 12 mph, impact speed was reduced by an average of 10 mph.

      In the 25 mph tests, impact speed was reduced by 7 mph. The system includes a forward collision warning component that meets National Highway Traffic Safety Administration criteria.

      To qualify for TOP SAFETY PICK+, a vehicle must have good ratings in all five crashworthiness tests and an available front crash prevention system that earns an advanced or superior rating.

      BMW tweaked its 2016 X1 model and walked away with the Insurance Institute for Highway Safety's (IIHS) top award for safety.The key was earning a good ...

      Chrysler recalls aftermarket Mopar Canvas Seat Covers

      The seat covers can impede the deployment of the seat thorax airbags

      Chrysler (FCA US LLC) is recalling 487 aftermarket Mopar Canvas Seat Covers for certain 2012-2016 RAM 1500, 2500, and 3500 trucks.

      These seat covers, sold through Chrysler dealerships beginning October 15, 2015, can impede the deployment of the seat thorax airbags.

      If the seat cover impedes the air bag deployment, the seat thorax air bags may not provide adequate protection in the event of a crash, increasing the risk of a injury.

      What to do

      Chrysler will notify owners to remove the front seat covers and return them for a full refund. The recall is expected to begin June 30, 2016.

      Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is S30.

      Chrysler (FCA US LLC) is recalling 487 aftermarket Mopar Canvas Seat Covers for certain 2012-2016 RAM 1500, 2500, and 3500 trucks. These seat cover...

      Dakota Style Foods recalls sunflower kernels

      The product may be contaminated with Listeria monocytogenes

      Dakota Style Foods of Clark, S.D., has expanded its product recall to include 15,158 cases of sunflower kernels.

      The product may be contaminated with Listeria monocytogenes.

      No illnesses have been confirmed to date.

      The sunflower kernels were distributed to 34 customers nation-wide, and are sold through retail outlets.

      The products involved are:

      • Dakota Style 16 ounce;
      • Roasted and Salted Sunflower Kernels, 3.5 ounce;
      • Roasted and Salted Sunflower Kernels, 32 ounce;
      • Roasted and Salted Sunflower Kernels, 4 ounce;
      • Savory Bacon Sunflower Kernels, 8 ounce;
      • Savory Bacon Sunflower Kernels; and
      • 4 ounce Salted Caramel Sunflower Kernels.

      The products were shipped by Dakota Style Foods between February 15, 2016, and May 17, 2016.

      The affected lots are identified by lot codes 8B6M02, 8B6M09, 8B6M17, 8B6M18, 8B6M24, 8B6M25, 8C6M02, 8C6M08, 8C6M10, 8C6M28, 8C6M31 and 8D6M01.

      The product comes in plastic packages bearing the company logo and product name, with the lot code located on the back right hand panel.

      What to do

      Customers who purchased the recalled products should return them to the place of purchase for a full refund.

      Consumers with questions may contact the company at 1-800-446-2779 between 8:30 am and 5 pm (CST) Monday through Friday.

      Dakota Style Foods of Clark, S.D., has expanded its product recall to include 15,158 cases of sunflower kernels. The product may be contaminated wi...

      Right Hand Drive Jeep Wranglers recalled

      The driver's front air bag may not deploy in the event of a crash

      Chrysler (FCA US LLC) is recalling 7,180 model year 2011-2016 Right Hand Drive Jeep Wranglers manufactured February 16, 2010, to May 2, 2016.

      The clockspring assembly may become contaminated with dust and cause the air bag circuit to fail.

      Failure of the air bag circuit may prevent the driver's front air bag from deploying in the event of a crash, increasing the risk of injury.

      What to do

      Chrysler will notify owners, and dealers will replace the clockspring, wheel back cover, and column shroud, free of charge. 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 S40.

      Chrysler (FCA US LLC) is recalling 7,180 model year 2011-2016 Right Hand Drive Jeep Wranglers manufactured February 16, 2010, to May 2, 2016. The c...

      General Motors recalls model year 2016 Chevrolet Malibus

      The vehicles could lose electronically controlled brake systems

      General Motors is recalling 66 model year 2016 Chevrolet Malibus manufactured March 7, 2016, through March 12, 2016.

      The memory chip in the electronic brake control module (EBCM) may fail and cause the loss of electronically controlled brake systems including anti-lock brakes (ABS) and electronic stability control (ESC). As such, these vehicles fail to conform to Federal Motor Vehicle Safety Standard (FMVSS) number 126, "Electronic Stability Control Systems."

      If the EBCM fails the primary braking system will still function, however, the loss of ABS and ESC increase the risk of a crash.

      What to do

      GM will notify owners, and dealers will install a replacement EBCM, free of charge. The recall is expected to begin on June 10, 2016.

      Owners may contact Chevrolet customer service at 1-800-222-1020). GM's number for this recall is 39440.

      General Motors is recalling 66 model year 2016 Chevrolet Malibus manufactured March 7, 2016, through March 12, 2016. The memory chip in the electro...