Current Events in December 2019

The Centers for Disease Control and Prevention (CDC) has linked a multi-state outbreak of  E. coli O157:H7 infections to a pre-made salad product, the Fresh Express Sunflower Crisp chopped salad kit.

The suspect products bear the following identifying information:

• UPC 0 71279 30906 4, beginning with lot code Z

• Best-before date up to and including 07DEC19

The information is shown on the front of the bag in the top right corner. The CDC is urging consumers to check their refrigerators for this product. If you find it, the CDC says you should discard it.

“Even if some of the kit was eaten and no one got sick, throw the rest away,” the agency said in its Food Safety Alert. “Wash and sanitize drawers or shelves in refrigerators where the salad kit was stored.”

The CDC says retailers and restaurants that find the affected salad kits among their inventory should make sure it is not sold or served to consumers.

No link to romaine lettuce has been established

The salad kits contain romaine lettuce, but the CDC says it has not been established that there is any connection to the E.coli outbreak traced to romaine lettuce sourced from Salinas, Calif. 

In November, the Food and Drug Administration (FDA) identified that agricultural region as the source of another outbreak of E. coli O157:H7 illnesses that sickened more than 40 people in 16 states. 

The CDC says the E. coli outbreak linked to the salad kits has sickened eight people in three states. Three of the eight consumers required treatment in hospitals. One has developed hemolytic uremic syndrome, a type of kidney failure. 

The agency says its investigation is now focused on what specific ingredient in the salad kit was contaminated with the pathogen.

Symptoms

Symptoms of an E. coli infection can be very severe and even life-threatening. People usually start getting sick three or four days after eating contaminated food, though symptoms can be delayed as long as eight days.

Diagnosis usually requires testing a stool sample. The CDC says antibiotics are not recommended for patients with suspected E. coli infections until diagnostic testing can be performed and an infection is ruled out. 

The number of adults choosing to pursue teaching as a career has declined sharply over the last eight years, according to a new analysis by the Center for American Progress (CAP). 

Enrollment in teacher preparation programs has fallen by more than half in the following nine states: New York, Pennsylvania, Illinois, California, Oklahoma, Michigan, Ohio, Indiana, and New Jersey. In Oklahoma, teacher preparation programs at colleges and universities have seen an 80 percent drop in enrollment since 2010. 

CAP researchers attributed the decline in part to low teacher salaries, which force many educators to take on second jobs or rely on Supplemental Nutrition Assistance Program (SNAP) benefits.  

“The state of the teaching profession is an urgent topic for policymakers and the public, especially against the backdrop of increased teacher strikes and walkouts across the country in the past two years,” the researchers said in the report. “Due to low salaries, difficult working conditions, and a lack of career pathway opportunities, the teaching profession as a whole cannot compare with other high-status professions such as medicine and law.” 

Stress and burnout

All told, there are approximately 340,000 fewer students enrolled in teacher preparation programs today than there were in 2010. 

Some would-be teachers have cited concerns about burnout as a deterrent to pursuing the career. Julia Alvarez, a senior at Michigan State University, said she’s more worried about potential burnout than low pay. 

"The stuff that really worries me is the burnout aspect because I know that I care so much and I want to help,” Alvarez, who will be graduating from MSU this spring, told U.S. News and World Report. “I'm so afraid of being five or 10 years in and being like, I can't do this anymore. That's the worst thing: wanting to help but not feeling like you can."

A number of other studies published this year have attempted to shed light on the impact of declining teacher rates, as well as look into what has fueled the trend. 

In April, a study found that 93 percent of teachers are affected by high levels of job-related stress, which takes a toll on their ability to effectively teach. A separate report found that a significant number of teachers are choosing to leave their teaching career after ten years on the job to pursue a different career path. Teachers often cited the need for a better work/life balance and less pressure on performance as reasons for resigning. 

“It’s not as if they weren’t aware that teaching was going to be demanding,” the authors wrote. “However, they feel that the demands of the job outstrip their capacity to adapt. This raises the questions: what can be done to arrest this trend?”

Predictions that falling inventory levels would heat up the housing market in 2020 might already be coming to pass, according to a new industry report.

Online real estate marketplace realtor.com reports that the number of homes for sale in November fell nearly 10 percent year-over-year, several months ahead of previous forecasts. One big reason, the company says, is the recent drop in mortgage rates.

"As millennials -- the largest cohort of buyers in U.S. history -- embrace homeownership and take advantage of this year's unexpectedly low mortgage rates, demand is outstripping supply, causing inventory to vanish," said George Ratiu, realtor.com’s senior economist. 

Making matters more difficult for these first-time buyers is the fact that they’re seeing the largest shortage of available homes at the entry-level of the market, where most millennials are looking to become homeowners for the first time.

"The issue is further compounded by the fact that sellers tend to be more reluctant to list during the colder time of year when the market typically makes a seasonal slowdown," Ratiu said.

Fewer bidding wars

As we reported last month, real estate brokerage firm Redfin’s 2020 housing forecast predicts the market will heat up by mid-year. But so far, Redfin hasn’t seen nearly as many “bidding wars” over houses as last year.

Outside of San Francisco, Redfin said it found little evidence of competition, with no other market seeing a bidding war rate higher than 17 percent. The bidding war rate hit its lowest point in at least five years in November in Chicago, Houston, Portland, Ore., and Los Angeles. 

"Even though the number of homes for sale has been falling faster than we normally see this time of year, buyers just aren't feeling any sense of urgency right now," said Redfin chief economist Daryl Fairweather. "The supply and demand data still says that it's a seller's market, but homebuyers working with Redfin agents in places like Portland and Denver are feeling and acting like they're in control.”

Shortages picking up speed

But based on realtor.com's listing data, the shortage of available homes for sale has already picked up speed, which suggests that the housing market could get more competitive early in 2020. For example, national housing inventory fell  9.5 percent in November, compared to October's drop of 6.9 percent.

The falling inventory numbers may increasingly pose a problem for first-time buyers if the biggest decline remains in the category of the most affordable homes. The supply of homes priced below $200,000 dropped 16.5 percent year-over-year in November, up from the 15.2 percent decrease seen in October. 

Surly Bikes of Bloomington, Minn., is recalling about 5,199 Surly front bicycle racks.

The front bicycle rack can loosen and contact the front wheel, posing crash and injury hazards to the rider.

The firm has received 15 reports of racks failing, including three reports of minor injuries including sprains and lacerations, and seven reports of serious injuries including a fractured vertebra.

This recall involves all Surly 8-Pack Racks and Surly 24-Pack front bicycle racks and Pack Rat Bicycles equipped with these racks.

The racks were sold in black and silver finishes, are made of tubular chromoly steel and are intended for use on the front of a bicycle.

The racks, manufactured in Taiwan, were sold at bicycle stores nationwide and online at various websites from December 2015, through September 2019, for $110 and $150 for the 8-Pack Rack and 24-Pack Rack, respectively, and $1,350 for the Pack Rat complete bicycle with rack.

What to do

Consumers should stop using the recalled bicycle racks immediately and contact the bike shop or online retailer where it was originally purchased to arrange for a free repair.

Consumers may contact Surly Bikes toll-free at (877) 773-3191 between 8 a.m. and 6 p.m. (CT) Monday through Friday, or online at www.surlybikes.com and click on “Safety Recall 8 – 24-Pack Rack” at the top of the page for more information.

Chrysler (FCA US LLC) is recalling 51,788 model year 2012-2013 Fiat 500s with 6-speed automatic transmissions.

The shifter cable bushing may fail allowing the cable to detach from the transmission.

If the shifter cable detaches from the transmission, the transmission may not shift into the gear selected by the driver. Additionally, despite selecting PARK with the shifter, the vehicle may roll away.

These scenarios may increase the risk of a crash.

What to do

Chrysler will notify owners, and dealers will replace the shifter cable adjuster free of charge.

The recall is expected to begin January 4, 2020.

Owners may contact Chrysler customer service at (800) 853-1403. Chrysler's number for this recall is VB4.

Lawyers for Sprint and T-Mobile will be in court today, arguing that their proposed merger should be allowed to move forward. The U.S. government has already approved the deal.

But a group of state attorneys general -- all Democrats -- have gone to court to block the merger, which would reduce the number of major wireless providers from four to three. The state officials argue that would harm consumers.

The complaint involves more than reducing the number of wireless companies. The suit contends that as the smaller players, both Sprint and T-Mobile offer packages with rates that are more affordable for low-income consumers. With these companies merging, regulators argue that those low rates will likely go up.

As a condition for approving the merger, the Justice Department required Sprint and T-Mobile to provide assistance to Dish Network so the pay-TV provider can launch a competing wireless service.

Sprint agreed to sell Boost, its prepaid wireless business, to Dish in order to help it get up to speed. Dish would also get a network of towers and billions of dollars in spectrum as part of the deal.

‘Not adequate’

In their complaint, the state officials reject that remedy, arguing that Dish’s wireless network would not be an adequate substitute for what both Sprint and T-Mobile now offer.

At issue is whether there is now a competitive landscape in the wireless industry. Sprint and T-Mobile say there is, noting that other non-traditional providers like Charter and Comcast have recently launched mobile services.

“Millions of Americans rely on mobile devices at work, at home, and to organize their lives. Competition between the mobile companies has resulted in better coverage and cheaper, more reliable service for all of us,” said Massachusetts Attorney General Maura Healey, when the suit was filed in June. 

Year-long investigation

Healey said her office participated in a year-long investigation which concluded that the proposed merger would give the new company the power to raise prices, significantly reduce competition for customers, lower quality, and cost thousands of retail workers their jobs. 

“We are challenging this merger to protect a service that matters to everyone,” she said.

Healey and her colleagues argue that the competition between T-Mobile and Sprint has lowered prices for all mobile phone subscribers. Since 2009, they say the average cost of mobile service in the United States has fallen by roughly 28 percent.

Sprint and T-Mobile, meanwhile, have said they need to join forces because, as individual companies, they lack the financial resources to build out 5G networks to compete with Verizon and AT&T.

If you’re looking for a wireless provider, ConsumerAffairs has gathered thousands of reviews of cell phone companies. You’ll find them here. 

Spurred by the belief that broadband internet access should be treated as a “basic human right,” Sen. Bernie Sanders (D - VT) has come up with a new plan to expand consumer access to high-speed internet. 

In a proposal titled “High-Speed Internet for All,” Sanders calls for broadband to be reclassified as a public utility. Sanders’ plan would set aside $150 billion in grants and technical assistance to allow government resources to build out “democratically controlled, co-operative, or open access broadband networks.”

“Bernie believes it’s time to stop relying on profit-focused corporations to get to universal broadband,” the proposal states. The funding provided would help to “ensure all households are connected by the end of his first term.” 

Taking on telecom and cable monopolies

A key element of Sanders’ plan is breaking up what he calls “internet and cable monopolies.”

“We will break these monopolies up and closely regulate them to ensure they are providing consumers with acceptable service, and eliminate hidden fees, surprise bills, and other consumer-gouging practices,” Sanders said.

“Access to the internet is a necessity in today’s economy, and it should be available for all,” he added.

The plan would establish a new definition of high-speed broadband. Under the proposal, high speed would be defined as 100 Mbps download, 10 Mbps upload. By contrast, the FCC currently defines high speed as 25 Mbps down and 3 Mbps up. 

"High-speed internet service must be treated as the new electricity -- a public utility that everyone deserves as a basic human right," Sanders said. "And getting online at home, at school, or at work shouldn’t involve long waits, frustrating phone calls, and complex contracts and fees meant to trap and trick consumers."

Expanding internet access

Sanders -- who has made serving public, not corporate interests a cornerstone of his platform --  also said that he would use existing antitrust law to “bar service providers from also providing content and unwind anticompetitive vertical conglomerates” if he is elected. Under the plan, AT&T and Comcast would likely have to separate their roles as access providers and content producers.

In August, presidential candidate Elizabeth Warren (D-MA) announced a plan to expand rural internet access through an $85 billion grant program for nonprofits and local governments. Sen. Amy Klobuchar (D-MN) also committed to expanding universal internet access as part of a trillion-dollar infrastructure proposal, and South Bend, Indiana Mayor Pete Buttigieg has come up with an $80 billion plan to accomplish the same goal. 

Childhood obesity is an important issue for consumers, as researchers have found that there are several different health risks associated with the condition, many of which can last well into adulthood. 

Now, researchers from the Karolinska Institutet found that how women give birth, whether through natural delivery or a C-section, doesn’t affect whether a child will develop obesity, as many previous studies have reported. 

“We found no evidence to support a link between C-sections and the development of obesity,” said researcher Daniel Berglind. “This tells us that how women give birth may not be an important factor in the origins of the global obesity epidemic.” 

Understanding obesity risks

With more and more women delivering via C-section, the researchers set out to discover if one delivery method yielded better health outcomes in children over the other. The team had 100,000 18-year-old males participate in the study, dividing them into three groups depending on how their mothers delivered -- elective C-section, non-elective C-section, or natural delivery. 

From there, the researchers assessed their overall health, paying particular attention to their body mass index (BMI), in the hopes of understanding if delivery method played a role in obesity. The study revealed that regardless of delivery method, mother’s weight pre-pregnancy was the biggest determining factor of obesity for all of the participants involved in the study. 

Though those delivered via C-section, both elective and non-elective, were slightly more likely to be obese than those delivered naturally, the researchers explained that several other factors come into play that affect children’s weight as they develop, with their mother’s weight coming in at the top. 

These findings are consistent with several other studies, which have found that mothers’ lifestyles, and their ability to follow healthy habits, affect their children’s likelihood of developing obesity. 

The researchers hope these findings are illuminating, as women shouldn’t worry that their delivery method will affect their child’s health down the road. 

“Most of the association between C-section and obesity could be explained by maternal pre-pregnancy BMI,” said researcher Viktor H. Alhqvist. “This suggests that heritability and fetal exposure to obese-causing factors in the womb are more important when assessing the risk of obesity in the offspring than the mode of delivery.” 

Recent studies have explored the countless ways that the youngest population is vulnerable to the effects of air pollution. Researchers have already found how both physical and mental health is affected by such exposure. 

Now, researchers from the American College of Allergy, Asthma, and Immunology found that toddlers are at an increased risk of allergies when they’re exposed to multiple air pollutants early in life. 

“The increase in the average amount of time indoors means there is an increased risk of harmful health outcomes related to exposure to indoor air pollutants,” said researcher Dr. Anne K. Ellis. “Additionally, children breathe more frequently per minute than adults, and mostly breathe through their mouths. These differences could allow for air pollutants to penetrate more deeply into the lungs and at higher concentrations, making children more vulnerable to air pollutants.” 

Understanding the risks

The researchers analyzed allergy sensitivity in two-year-olds, tracking infants’ exposure to air pollutants from before they were born until they reached the age of two. 

The children in the study had their exposure to various pollutants tested at four different thresholds: prenatal, six months, one year, and two years, and during the final check, both the children and their mothers received a skin prick allergy test to determine their sensitivities at this age. 

“We examined exposure to dogs, cats, air fresheners, candles, mold, environmental tobacco smoke (ETS), and carpet, all of which have been associated with childhood allergies,” said researcher Mallory Gallant. 

Ultimately, the researchers found that children were more likely to test positive for allergy sensitivities at two years old when they were exposed to more pollutants earlier in life. 

While a positive allergy test doesn’t necessarily mean that a substance is of great danger to the child, the researchers say that exposure could lead to an allergic reaction. This information is important for parents, as they’ll know what substances could be triggers and can eliminate them from the home in order to reduce the risk of a potential reaction. 

Moving forward, the researchers want to emphasize that the combination of such pollutants is what parents should be most mindful of with their young ones, as early and consistent exposure was the key to children testing positive for allergies in this study. 

“When considered together, the findings suggest that the effect of multiple exposures may contribute more to allergy development than one single exposure,” said Dr. Ellis. 

Pacific Gas and Electric (PG&E) announced on Friday that it has agreed to pay $13.5 billion to settle claims related to several destructive fires in California. 

"We want to help our customers, our neighbors and our friends in those impacted areas recover and rebuild after these tragic wildfires,” Bill Johnson, CEO and President of PG&E, said in a statement.

The settlement must still be approved by a bankruptcy court. If accepted, it will resolve claims that arose from the 2015 Butte Fire, the 2017 Northern California fires, the 2018 Camp Fire, and the fire at Oakland's Ghost Ship warehouse in 2016. 

The claims centered around the role the company’s equipment played in these fires. Earlier this year, PG&E said it was “probable” that its equipment would be found by the California Public Utilities Commission's Safety and Enforcement Division (SED) to have caused the 2018 Camp Fire.

The SED report attributed the fire, which killed 86 people and destroyed around 14,000 homes, to shortcomings in the company’s maintenance procedures, as well as a lack of inspections on its transmission line towers. 

"We remain deeply sorry about the role our equipment had in this tragedy, and we apologize to all those impacted by the devastating Camp Fire," the company said in a statement published in the wake of the report. "PG&E's most important responsibility must always be public and employee safety, and we remain focused on helping affected communities recover and rebuild, resolving wildfire victims' claims fairly and expeditiously, and further reducing wildfire risks."

Two previous settlements

PG&E filed for bankruptcy in January as a result of the impact of the multiple lawsuits filed against it. It previously reached settlements with two other groups of wildfire claim holders, including a $1 billion settlement with local governments and an $11 billion settlement with insurance companies. 

If the agreement announced on Friday is approved, PG&E said it will be poised to emerge from bankruptcy by June 30, 2020.

“From the beginning of the Chapter 11 process, getting wildfire victims fairly compensated, especially the individuals, has been our primary goal,” Johnson said. He added that PG&E shares California’s focus on “helping mitigate the risk of future wildfires and we will continue to do everything we can to help reduce those risks across our system.” 

The company’s most recent action to prevent the occurence of future fires has been turning off customers’ power during dry and windy periods, when conditions are more conducive to fires.

More consumers are turning to used vehicles as new car prices continue to reach record levels, according to new data from Experian. But even used car sales are resulting in buyers financing record debt.

The report shows average vehicle loan amounts are rising across the board. The average loan amount for a new vehicle increased 3.8 percent in the third quarter to reach $32,480, while the average used car loan amount increased 2.3 percent to reach $20,466. 

Experian categorizes the average monthly payment for used cars in the third quarter as “high” -- $393. That’s led to many buyers financing vehicles for an extended period of time in order to get a lower payment -- something most personal finance experts consider risky.

The value of a vehicle goes down over time and as miles add up. If a buyer is paying off the loan at a slow rate, at some point they will owe more for the vehicle than it’s worth. That means they can’t sell it or trade it in without writing a check.

New cars are getting more expensive

The rising cost of new cars and trucks is a major reason used vehicles are taking a bigger share of the automotive market. The financing of used vehicles increased by 2.4 percent year-over-year in the third quarter, reaching 55.15 percent of auto loans. 

Experian says other reasons for the shift to used vehicles include a higher percentage of prime customers financing used vehicles and the increased availability of late-model vehicles coming off three-year leases.

As prices for both new and used cars rise, buyers appear to be financing for longer periods of time, a trend that worries some in the industry. In the third quarter, Experian saw average car loan terms increase in both the five- and six-year loan categories, with five and six-year used car loans increasing by 42.9 percent.

Perhaps more worrying was the 19 percent increase in used car loans that extended payments for seven years. Automotive News reports that auto lenders are sharply divided on this sort of financing.

Bad for consumers

Some lenders won’t underwrite seven-year loans, particularly on used vehicles, calling them bad for consumers. Others offer them because they believe underwriting metrics have improved to the point that they can tell good risk from bad and reduce the chances of making a bad loan.

But extended used car loans fly in the face of the advice of personal finance researchers who, as late as 2017, said the “20-4-10 rule” still applies. 

The rule states that a potential buyer should be able to afford a 20 percent down payment, a four-year loan, and make payments that don’t exceed 10 percent of their household’s income. If someone can’t make those kinds of payments, then the researchers say they can’t truly afford the vehicle.

ConsumerAffairs has collected hundreds of reviews on major auto lenders. Check them out here.

Something happened in the financial world in mid-September that has not been fully explained but could hold great significance for the U.S. economy -- and for consumers --  in 2020.

The Federal Reserve was forced to take emergency measures to add money to the nation’s money supply. The New York Fed abruptly injected $75 billion into the financial system in two days through an obscure market called the repo market.

Banks and other financial institutions have needs for short term cash, usually just for a 24-hour period. They have always been able to go into the repo market and borrow the money from other banks, putting up U.S. Treasury bonds as collateral and paying a very small amount of interest.

At some point in September, U.S. banks were much less willing to lend that money -- at least not enough of it. The Fed had to act, purchasing billions of dollars of bonds to replace the money the banks were suddenly unwilling to lend.

No one has explained why

Since then, the Fed has continued to pump billions of dollars into the repo market each month to replace the banks, but no one has ever answered the question of why.

The Bank for International Settlements (BIS) thinks it knows why this happened. It has traced the problem to four major banks, which it did not name. In a report, BIS said these four banks suddenly became reluctant to lend money in the overnight market.

When they stopped lending, the interest rate on overnight loans shot up. The Fed’s target rate was around 2 percent but when the money dried up, the lenders that remained could command up to 10 percent. That forced the Fed’s hand.

Since September, the Fed has been purchasing billions of dollars of U.S. debt and injecting the money into the short term borrowing market, providing liquidity that likely would not be available otherwise. Without the Fed’s intervention, it would be very difficult to borrow money and interest rates would skyrocket. And that’s why all of this matters to consumers.

Ominous sign?

Some analysts believe this event is an ominous sign for the economy in the months ahead. To them, it suggests a lack of liquidity in the U.S. financial system, similar to what happened during the 2008 financial crisis.

There are many opinions about what’s causing the lack of liquidity in the money supply. They range from the government borrowing too much to cover its skyrocketing budget deficits to government regulations requiring banks to increase the amount of cash they keep on hand.

Whatever the reason, consumers can best protect themselves from any potential adverse effects from this by reducing debt -- especially credit card debt. And it’s worth keeping an eye on this issue; a lack of liquidity in the financial system doesn’t just affect Wall Street -- eventually, it could affect all of us.

Trek Bicycle Corporation of Waterloo, Wis., is recalling about 2,840 Trek Super Commuter+ 8S electric bicycles.

The front fender bolt can unthread causing the wheel to detach from the bicycle, posing a fall hazard.

The firm has received two reports of the wrong bolt being installed to secure the front fender to the fork crown. One injury -- a vertebrae fracture -- has been reported.

The bikes, manufactured in China, were sold at independent bicycle stores nationwide and online at www.trekbikes.com and other websites from June 2017, through June 2019, for about $5,200.

What to do

Consumers should immediately stop using the recalled bicycle and take it to a Trek retailer for a free inspection and repair.

Consumers may contact Trek at (800) 373-4594 from 8 a.m. to 6 p.m. (CT) Monday through Friday, or online at www.trekbikes.com and click on Safety & Recalls at the bottom of the page for more information.

General Motors is recalling 476 model year 2014-2016 Chevrolet SS vehicles that previously received an inspect-only remedy under a previous recall.

Corrosion of the connector between the electric power steering module and the torque sensor connector may cause a loss of electric power steering assist.

A greater steering effort would be needed to control the vehicle if power steering is lost, increasing the risk of a crash.

What to do

GM will notify owners, and dealers will replace the steering gear assembly free of charge.

The manufacturer has not yet provided a notification schedule.

Owners may contact Chevrolet customer service at (800) 222-1020 or GM customer service at (586) 596-1733. GM's number for this recall is N192265980.

Chrysler is recalling 99,128 model year 2015-2018 Ram ProMasters with 3.0L diesel or 3.6L gasoline engines and air conditioning.

The engine cooling fan may seize which can cause the cooling fan motor to overheat, increasing the risk of a fire.

What to do

The remedy for this recall is still under development.

Interim notices informing owners of the safety risk are scheduled to begin mailing on or before January 4, 2020. Owners will receive a second notice when the remedy becomes available.

Owners may contact Chrysler customer service at (800) 853-1403. Chrysler's number for this recall is VB2.