Gri.pe gives consumers a voice

At times, individuals rely on the Better Business Bureau when bad business strikes. But the BBB isn’t always the quickest way to solve such problems anymore. That’s where Gri.pe plays a role. This cell application brings grievances out in the open, Twitter style.

‘Word of mouth is powerful’

The New York Times states the free Gri.pe iPhone or Android application is available to any consumer that wants to complain about a business with Twitter’s speed at their fingertips. The company’s byline – “word of mouth is powerful” – reminds consumers they have the power to fight back against bad companies. Customers are able to post to Facebook and Twitter their grievances to the company’s consumer service department with a simple user interface on Gri.pe. Just like Yelp works for businesses, Gri.pe then allows the business to respond and make an effort to fix the problem.

Customers are also able to use “cheers.” These are positive notices. They can talk about it on the Gri.pe network with friends also.

Getting rid of fakers with a Facebook post requirement

While having Gri.pe post to sites like Facebook might seem like an expected add-on, Gri.pe CEO Farhad Mohit argues that there is a good reason for doing so. As it would be very simple for customers searching for a free payday to loan their voice to a chorus of boos, Gri.pe utilizes Facebook and Twitter as security devices to help discourage users from making frivolous posts (“social bullying”). It is easier to be a jerk whenever you do not know who’s reading it. You will only make accurate comments. However, if a user does not possess reasonable internal filters, Gri.pe does reserve the right to remove comments deemed too offensive or outlandish.

Gri.pe: It was a very good year

The six people that run Gri.pe have no problems with its users right now, even though it was founded concerning a year ago. According to Mohit’s estimation, almost 1.7 million people already use the service. ”Online word-of-mouth power,” or “womp,” is powerful enough to do that. Gri.pe has more than 100 million-plus local businesses and service providers taking notice, so it must be.

Take a look at the griping about service on ‘The View’

Citations

Gri.pe

gri.pe/

New York Times

nytimes.com/2011/05/29/technology/29digi.html

House foreclosure rates go up and prices go down

Foreclosure rates are on the rise in the United States as house prices continue to drop. This is great news for home buyers looking for a bargain. Sellers, however, would be advised to give it more time.

FHFA report shows distinct decline

The Federal Housing Finance Agency reports this week that its home-price index fell in the current quarter quicker than at any time since 2008. In the last quarter, prices went down 2.5 percent, which is a 5.5 percent drop from last year was. The report didn’t contain all homes. Only Fannie Mae or Freddie Machomes were integrated. It excludes cash only sales.

Difficulties caused by foreclosures

According to Edward DeMarco, FHFA director, “In many local real estate markets, particularly those hit hard by this cycle, foreclosures and other distressed properties are still a key factor in recorded and anticipated future sales and may be delaying price stability or recovery.” There has been a decrease in the price people are willing to pay for foreclosures. It has been going down considerably, RealtyTrac explained. The average sales price was $168,321 during the first quarter, which is a 1.89 percent drop from the previous quarter, and 1.46 percent from a year ago. The rest of the homes are worth less since foreclosures lower the value of homes in the neighborhood.

Foreclosure third parties

”While foreclosure sales continue to account for an unusually high percentage of all residential home sales, sales volume is well off the peak we saw in the first quarter of 2009, when nearly 350,000 foreclosure properties were sold to third parties,” said CEO of RealtyTrac, James Saccacio. There were 158,434 homes sold to third parties in the first quarter. That’s a 16 percent decline from the previous quarter and from a year ago it dropped 36 percent.

States have different foreclosure rates

Every state has a different number of homes being foreclosed on. In Ohio and Illinois it was 41 percent. Both California and Arizona had the same also. It was 45 percent for both. In Nevada, foreclosures were 53 percent of the industry.

Beware of foreclosure scams

This trend has brought out higher numbers of foreclosure rescue scams. Some companies promise to protect from foreclosure for an upfront fee. The homeowners end up with nothing. The Federal Trade Commission no longer allows upfront fees for negotiations on mortgage reduction plans. This change was made in February.

Articles cited

Wall Street Journal

blogs.wsj.com/marketbeat/2011/05/25/home-prices-fall-at-fastest-pace-since-late-2008/?mod=google_news_blog

DS News

dsnews.com/articles/home-prices-post-biggest-drop-in-two-years-as-foreclosures-depress-market-2011-05-26

DS News

dsnews.com/articles/home-prices-post-biggest-drop-in-two-years-as-foreclosures-depress-market-2011-05-26

Daily Finance

dailyfinance.com/2011/05/27/foreclosure-prices-fall-again-how-your-state-stacks-up/

DC Comics restarts all its superheroes at No. 1

In September DC Comics plans to reboot each one of its hero comics. Each one of them will begin once again from issue No. 1. DC owns such iconic roles as Superman, Batman, Green Lantern, Wonder Woman and The Flash.

DC’s new imaginative team to do well

In a bold and risky move, DC’s new imaginative team, Geoff Johns and Jim Lee, are leaving behind 70 years of storylines and starting over with a clean slate. The plotlines will be more modern, there will be new origins and the costumes will be changes. Lee explained it a little better. He said it will “make characters more identifiable and accessible to comic fans new and old.”

Battle of the superheroes

DC has long played second fiddle to its arch nemesis, Marvel Comics. Walt Disney Business is owned by Marvel who has about 40 percent of the industry for comic books. About 27 percent goes to Time Warner’s DC. Hopefully Johns and Lee can change that gap a bit.

The Justice League

The new DC saga begins Aug. 31 with a new start for the Justice League. ”The Brave and the Bold” magazine is where the Justice League debuted in Feb. 1960. It involves Aquaman, Flash, Wonder Woman, Green Lantern, Batman and Superman.

Altogether, there will be 52 titles rebooted. In Sept, there will be 13 new titles released every week. At DC, 52 is an enchanting and well known quantity. This is because in the company’s “multiverse,” there are 52 alternate Earths that “exist.”

New industry to overcome

A new marketing strategy will be put in place with the starting of the “Justice League” reboot. DC will plan an app where the rebooted titles could be sold. They’ll have same-day digital releases. This will end up “making DC Comics the first of the two major American publishers to release all of its superhero comic book titles digitally the same day as in print.” This is what DC’s blog explains. The move is following what Archie Comics did. The strategy was initially thought up by the company.

Articles cited

National Post

arts.nationalpost.com/2011/05/31/dc-reboots-entire-line-of-comic-books/

MSNBC

today.msnbc.msn.com/id/43232629

Titans Tower

titanstower.com/monitor/?p=3118

Completing a bill with an autopen brings about controversy

The contentious Patriot Act has been given a new lease on life, thanks to President Obama. It went to the White House for approval, though President Obama is currently in Europe. The president’s signature is creating debate, as he authorized an autopen signature, which is a mechanical device that produces an exact copy of a persons’ signature.

Not ending government surveillance just yet

Unless a new bill was created and passed by Congress and signed by the president, some Patriot Act provisions would have expired. The controversial surveillance was passed and finalized into law by President Obama at the last minute. This was despite all the debate on it, states the Christian Science Monitor. The government can still use the internet, wiretaps and business records whenever they want without permission. Senator Paul did rally against the bill though, without any luck. Apparently the president used a robotic pen though which caused anger in Congress, reports CNN.

Refill the ink if you need to live

Since the president is currently in France, and the signature was needed urgently, the document had to be signed using an autopen. The autopen is a system that could be used. A person’s signature could be reproduced with it. It is almost extremely hard to tell the difference between the signatures. It might as well have been the same. Some of the machines are very complex. Some are not complex at all though, reports MSNBC. There are two companies in the U.S. that make them, and a brief interview with Bob Olding, owner of one of those companies, is being reproduced on many news sites. ABC spoke with Damillic Corp., owner Olding who said that the technology hasn’t changed much since the 1930s when it came out. He also stresses that Damillic goes out of its way to properly vet its customers and make sure that his goods are being used ethically.

Whether or not it is legal

The Constitution states “he shall sign it” in reference to the president signing the bill. As long as a signature is directed to be attached to a document, it is valid, according to the Department of Justice. As long as a president gives his consent of signature, it is legal and valid to auto sign something. This was the response the Justice Department had in 2005 when an autopen for President Bush was being looked into. V.P. Quayle admits that he used an autopen in 1992 while Donald Rumsfeld used one in 2004. This was for the letters he sent to families of troops killed. The signature and letter duplication machine was built in the 19th century. Thomas Jefferson was responsible for this. Government officials, astronauts and business executives all have used autopens in the past.

Articles cited

Christian Science Monitor

csmonitor.com/USA/Politics/2011/0527/Patriot-Act-three-controversial-provisions-that-Congress-voted-to-keep

CNN

whitehouse.blogs.cnn.com/2011/05/27/rise-of-the-machines-autopen-puts-bill-into-law/?hpt=T2

MSNBC

firstread.msnbc.msn.com/_news/2011/05/27/6731197-the-great-presidential-autopen-hullabaloo

ABC

blogs.abcnews.com/politicalpunch/2011/05/robama-is-it-ok-for-a-president-to-autopen-a-bill-into-law.html

Damillic Inc

realsig.com/index.htm

The Credit Card Act is able to help, but individuals aren't using it

In 2009, Obama agreed upon the Credit Card Act into legislation. Part of the legislation required card businesses to work in conjunction with the National Foundation for Credit Counseling to provide free assistance to customers in danger of delinquency, commonly in the form of advising. In spite of this, credit-constrained consumers simply are not using the resources, per NFCC reports.

Not many chances for free credit card counseling

Only 150,000 U.S. consumers struggling with charge card debt have accessed the nonprofit help to which banks and the NFCC have access, said NFCC spokeswoman Gail Cunningham. The contact number is toll-free and printed on credit card statements. As credit card debt still weighs heavily on the average, recession-weary American, the lack of initiative is troubling.

“I certainly think one of the reasons for the low response rate from consumers could be attributed to a lack of prominence,” said Cunningham. “Perhaps the number is buried somewhere.”

The number is likely buried in the recess of public prejudice. Several consumers think the toll-free Credit Card Act number is just a “service” that the charge card business has put together so they can get even more money from them. Some statements haven’t put the number on statements, which is illegal now, states Cunningham.

Less credit card debt last year

A study by Credit Karma indicates that from Jan to December, U.S. customer credit card debt decreased by 8 percent nationally, to an average of $7,404 per person. As much as an 11 percent improvement was shown in eight states including CT, Indiana, Oklahoma, Tennessee, Nevada, California and Colorado. There was a 31 percent improvement shown from 2009 to 2010 in Wisconsin making is the biggest in charge card debt change.

On the other side of the scale, states like Delaware, Iowa, LA, Missouri, Nebraska and New Mexico grew their credit card debt by as much as 6 percent. The Credit Karma Survey states that Mississippi had the biggest increase in charge card debt. It had an 8 percent increase.

Looking for credit card help?

If you need information on non-profits, go to nfcc.org which is the National Foundation for Credit Counseling website. If you just make minimum monthly payments, you will still have a balance on your charge card debt. You can find out what this balance is at the Federal Reserve’s website. You can go to the Android Market for tools as well. The Personal Financial Calculator should be downloaded. Or, if you are seeking to compare overdraft APRs of personal financing and other customer loan goods, have a look at Personal Money Network’s “Loan Overdraft Calculator,” connected below.

Articles cited

Android Market

market.android.com/details?id=com.adworkz.pms.mobile.tools.calculators_2001.com

Bankrate

bankrate.com/financing/credit-cards/nfcc-credit-card-help-unused/

Federal Reserve

federalreserve.gov/creditcardcalculator/

Personal Money Store

tools.personalmoneystore.com/free-payday-loan-calculator/

National Foundation for Credit Counseling

nfcc.org/

Obama signed the Credit Card Act. Are you using its programs?

youtube.com/watch?v=OVFj2p8JeKo

ClearXchange is large bank competition for PayPal

The Associated Press states that PayPal should watch out right about now, because three cut-throat banking giants are getting even closer. Bank of America, Chase and Wells Fargo now are offering clearXchange as a cheaper, easier option to mobile payment businesses like PayPal. Three United States banking companies anticipate that clearXchange will eventually replace traditional money transfers altogether.

Pay more for prepaid debit and PayPal to work

Bank of America, JPMorgan Chase and Wells Fargo are suggesting that the Charlotte, N.C. clearXchange has fewer fees than prepaid debit cards and eBay’s PayPal, even though banks bring on the fees. The person-to-person clearXchange will only be given to the three banks’ consumer base, but it will change to the mobile payment program soon.

The Associated Press reports that Jack Stephenson believes the clearXchange is very simple. Stephenson is JPMorgan’s Director of Mobile, eCommerce and Payments.

“Customers will be able to send and receive money even more quickly and easily,” he said, “with full confidence their funds are in a bank account without worrying about cash, checks or higher-cost services.”

PayPal is quite big

In the first quarter of 2011, PayPal processed $27.4 billion in payments with its 100 million active users that currently using it, reports eBay, which is a 28 percent increase from last year. EBay is sure that PayPal will make more money than its parent company annually soon as PayPal’s revenue hit $992.3 million.

‘An innovative game-changer’

Wells Fargo Executive Vice President Mike Kennedy told Business Wire that clearXchange’s simplicity will change the mobile payments game.

“This is an innovative game-changer in electronic payments,” he said. “We want our customers to be able to easily send money to anyone without having to establish a new account outside their primary bank. All our customers need to know is the email address or mobile number of a friend or family member and (clearXchange) takes care of the rest.”

Citations

Reuters

reuters.com/article/2011/05/25/idUS131437+25-May-2011+BW20110525

USA Today

usatoday.com/money/industries/banking/2011-05-25-banks-cash-transfer-cell-email_n.htm

ROAM Data, Inc.’s Rob Stringer on end-to-end encryption

youtube.com/watch?v=2NU-E0Ul59I

Strauss-Kahn not given bail in IMF sex scandal case

The head of the IMF, Dominique Strauss-Kahn, was brought up on sexual assault charges recently and has been denied bail. While boarding a flight to France, Strauss-Kahn was detained for allegedly trying to rape a maid at the hotel he was staying at. Strauss-Kahn will stay in a holding cell at Riker’s Island.

International financier in Riker’s Island

One of the highest profile sex scandals in years has just been announced as the head of the International Monetary Fund was arraigned for charges of sexual attack and false imprisonment in a NYC courtroom on Monday, May 16, states the Guardian. Dominique Strauss-Kahn was detained on Saturday for sexual assault and false imprisonment after he was accused of sexually assaulting a hotel maid at Sofitel, the Times Square hotel he had been staying at. Officers detained him as he was boarding a plane for France, according to Reuters, and he appeared before a judge on Monday. Prosecuting attorneys labeled him a flight risk and observed that France wouldn’t extradite him if he was able to leave. He is at the Riker’s Island Correctional Facility right now after being denied bail.

Still having IMF operations in his absence

The imprisonment of the International Monetary Fund has not changed it much. The LA Times states that it is still running. Kahn missed a meeting with several finance ministers in Europe in Brussels because he was in arraignment. This meeting discussed the possibility of a joint bailout package for the Portugal debt crisis between the European Union and International Monetary Fund. The Greece debt crisis is still ongoing, and more aid to the struggling country was also slated to be topic for discussion. A newspaper in Athens carried the headline “the chambermaid blocks Greece!” in reaction to the scandal, and Strauss-Kahn is already a reviled figure there for forcing austerity measures to give the country emergency financial assistance. The Guardian reports that Strauss-Kahn is in The Tombs holding cells near Riker’s Island Courthouse while all of this is happening.

Response to scandal

Dominique Strauss-Kahn is a prominent figure in the Socialist party in his native France and had been anticipated to challenge current president Nikolas Sarkozy in the coming elections. It is possible that Francois Hollande or Marine Aubry will replace him. The Telegraph reports that his job at IMF is up for grabs. Several people are ready to take the position too. The previous English pm Gordon Brown is said to covet the job, however it is said that current P.M. David Cameron won’t endorse him. Other possibilities include finance minister of France, Christine Lagarde, and previous Germany finance minister Axel Weber.

Articles cited

The Telegraph

telegraph.co.uk/finance/dominique-strauss-kahn/8517119/Christine-Lagarde-and-Axel-Weber-front-runners-for-Dominique-Strauss-Kahns-IMF-role.html

Los Angeles Times

latimesblogs.latimes.com/washington/2011/05/ron-paul-imf-dominique-strauss-kahn.html

Reuters

reuters.com/article/2011/05/16/us-strausskahn-arrest-idUSTRE74D29F20110516

Los Angeles Times

latimes.com/news/nationworld/world/la-fg-euro-talks-20110517,0,2339845.story

The Guardian

guardian.co.uk/world/2011/may/17/dominique-strauss-kahn-court-appearance

The Guardian

guardian.co.uk/world/2011/may/15/strauss-kahn-arrest-hits-french-elections

Nissan and Toyota fire up the incentive engine yet again

Japan is ramping up production in the wake of the 9.0 March 11 earthquake, and major factory-to-dealer rewards are on the way from Toyota and Nissan to move the expected inventory wave. Automotive News states that the Japanese automakers will offer cash, interest rate holidays and significant lease incentives in the United States market. Sagging May sales numbers have made the incentive push a priority.

Supply is back meaning vehicles must move

Before May is over, Toyota and Nissan both expect to be producing normally again by the end of May, meaning vehicles need to sell. Incentive spending is the mechanism through which an overstock will theoretically be avoided. There will have to be even more automobiles sold since Nissan believes its Japanese factories will be up and running normally again by June.

The plan is something Nissan Division Manager Al Castignetti believes will work. He thinks that there will be tent sales by Memorial Day on Altima and Maxima automobiles which will have good deals.

Sales fallen in May

Compared with May sales in 2010, Toyota and Honda sales have fallen on hard times this May. Toyota sales have dropped by 56 percent (Lexus by 45 percent). Honda sales are down 41 percent overall, with the Acura division showing a 46 percent drop-off. Both Nissan and Infiniti aren’t doing too badly with only a 12 percent drop. A 37 percent increase in Hyundai Motors sales was shown in May as one of the only Asian automakers to do so.

The high gas costs, Japan earthquake shortages and low rebates are all attributed to the low Japan May sales according to J.D. Power and Associates forecaster Jeff Schuster.

Change from Feb. to Mar. in rewards

According to Edmunds.com, the decline in dealer incentives has been occurring for a few months, even in the U.S. From February 2011 to March 2011, there was a decrease in the average manufacturer incentive $220, or 8.6 percent, from $2,346 per new vehicle sold.

That was a huge drop in rewards. Ivan Drury as an Edmunds analysis spoke about this.

“These latest numbers show by far the biggest February-to-March incentives decline since Edmunds.com started tracking in 2002,” Drury said. “The decline is mostly likely a result of a 26 percent month-over-month sales jump in subcompact and compact cars which typically have a much lower level of incentives compared to large trucks and SUVs.”

The automakers may have changed from incentives

Whether or not GM, Ford Motors and Chrysler, also known as Detroit’s Big Three, stand idle or produce as many automobiles as possible, the fixed production and labor costs are the same. This was suggested by a team of researchers in a report called “The Effect of Customer Rebates and Retailer incentives on Manufacturer Profitability and Sales” that did a statistical analysis. There was overstock and more incentives since the Big Three produced more than they needed to. These rewards pumped up sales, often at a loss.

Articles cited

Auto News

autonews.com/apps/pbcs.dll/article?AID=/20110512/RETAIL01/110519951/1422

The Effect of Customer Rebates and Retailer Incentives on Manufacturer Profitability and Sales

isye.gatech.edu/|jswann/teaching/6230/6230 Swann Rebate (L13).pdf

Dealer Magazine

dealer-magazine.com/home/single-article/edmundscom-reports-true-cost-of-incentives-down-16/c11329d180.html

Pre-owned dealer incentives at Star Nissan

youtube.com/watch?v=2XJ9UW1VM24

Recent launch of Space Shuttle without practice

National Aeronautics and Space Administration occasionally has to break with practice and think outside the box. For a while, the Space Shuttle has launched was delayed, until National Aeronautics and Space Administration broke with that paradigm and the Space Shuttle took to the sky. The Space Shuttle Endeavour finally launched after weeks of delays. The launch was not all great, however. It is the last trip of the Endeavour.

Endeavor launch

CNN reports that the Space Shuttle Endeavor went up at 9 a.m. Eastern standard time. The last attempt at a launch was made on April 29, however had to be canceled because of a problem with a heating unit aboard the shuttle that is located in the hydraulic system, according to Reuters. The okay to go was given to the launch. That occurred just recently. The Alpha Magnetic Spectrometer, which is a $2 billion instrument 60 nations worked together to build, is being delivered in Endeavor to the International Space Station in STS-134. The machine is a particle detection and analysis machine that will try to find particles that aren’t detectable by normal telescopes and other instruments.

Last mission

The general tone around Mission Control was bittersweet. After the 16-day mission where the ISS will also get some parts, the Endeavor will be retired. The shuttle program will then launch its last journey in late June, according to the Christian Science Monitor, when the Shuttle Atlantis goes on the program’s last journey. After the Shuttle Columbia exploded on its way back to the atmosphere, the shuttle program was stopped by the Bush administration. There have been 14 astronauts killed during the shuttle program; three astronauts total lost their lives in all other National Aeronautics and Space Administration programs.

Where National Aeronautics and Space Administration goes from here

Congresswoman Gabrielle Giffords was present at the launch to view Mark Kelly, her husband, take off as mission commander, according to CBS. After almost dying from a gunshot to the head several months ago, Giffords has recovered quite well. The Soyuz spacecraft will be the only way an astronaut will be able to get to the ISS soon. This will be the case after Atlantis returns. Private contractors are intended to start creating spacecraft which astronauts will “rent” for flights into space. NASA had been working on a replacement for the shuttle dubbed the Constellation program, which was nearly identical to the Mercury, Gemini and Apollo programs using a capsule set atop a very large rocket. However, the program was scrubbed in lieu of handing responsibility to private firms. It will be several years before any such craft are accessible.

Articles cited

CNN

cnn.com/2011/US/05/16/nasa.shuttle.endeavour/?hpt=C1

Reuters

reuters.com/article/2011/05/16/us-space-shuttle-idUSTRE74E2II20110516

Christian Science Monitor

csmonitor.com/USA/Society/2011/0516/After-the-space-shuttle-astronaut-corps-awaits-a-new-mission

CBS

cbsnews.com/stories/2011/05/16/scitech/main20063171.shtml?tag=stack

Tricks to stay away from rental auto gas penalties and other fees

Gas costs nearly $4 per gallon average in the U.S. today. However did you know it will cost more than double per gallon needed if you do not return the rental with a full tank? This and other “hidden” fees can cost you an excellent deal of money. Equip yourself with knowledge now so that your rental auto bill won’t sting your wallet later.

Gas costs $9.29 a gallon for a rental auto

Auto rental companies at 13 United States airports were studied by USA Today. It found out that $9.29 a gallon is what Hertz charges to top off your gas tank while $8.99 a gallon is what Dollar and Thrifty charges. With low base fees, rental businesses often charge these extra fees. They can be avoided if you pay for the additional gasoline ahead of time though.

Adding on even more fees

1. Additional driver fees – Every driver on the auto adds on. It typically is about $10 per driver that is added on.

2. Insurance – Never purchase additional insurance for those who have a vehicle insurance policy of your own, particularly if you already have comprehensive coverage on your policy. See if your losses could be insured by the credit card company too.

3. Early/late return fees – It is always significant that you return the vehicle on time. Each day that you are late, it can cost $10 or more. Typically, rental companies will charge for early return as well. It costs about $15.

4. Child car seats – Make sure you bring your own vehicle seats into your rental. Otherwise, you’ll pay about $7 per day for each child safety seat rented through the company.

5. Toll bypass – Some rental corporations will sell you an electronic toll road pass. Just say no if you don’t want one or already have one.

6. Mileage – Watch the mileage limit. Are you going to be driving long distances? If this is the case, you should make sure you have an unlimited mileage rental to keep away from additional fees for going over your miles.

7. Cleaning – Clean up your mess, leave the cat with family and do not smoke as part of your rental automobile. It can cost a lot to have the vehicle cleaned.

Finding cheap cars to rent

To discover the least expensive rental vehicles, start by searching travel web sites like Travelocity.com, Expedia.com, Priceline.com and Hotwire.com for deals on rental cars. You really should try planning ahead. You may get good airline ticket, rental auto and hotel deals put together. You might be able to save even more with entertainment coupon books and websites like RetailMeNot.com. Make sure you rent for what you need. Do not go any longer. As long as you do not have too much stuff, you may be okay with an economy compact which will get you there safely.

Citations

Bankrate.com

bankrate.com/financing/cars/rental-car-gas-costs-9-a-gallon/

MSNBC

today.msnbc.msn.com/id/23471992/ns/today-money/t/secrets-renting-car-without-overspending/

Dollar Rent-A-Car was caught red-handed

youtube.com/watch?v=ZY4A-EJAbZs

All Detroit teachers could possibly be laid off if spending budget problems not resolved

All school administrators and teachers employed by the city of Detroit are being laid off. Starting July 29, no educator employed by the Motor City can have a job because of the deeply troubled finances of the city. A 3rd of Detroit is uninhabited, and individuals have been leaving in droves. Post resource – Severe budget problems could get all Detroit teachers laid off by MoneyBlogNewz.

Motor City schools $327 million in debt

The public school system in the city of Detroit, Mich., is so plagued by financial problems the city is being forced to lay off every single one of its teachers and school administrators, according to CNN. To raise over $230 million to stay alive through August of the year, the Detroit School District issued emergency bonds in March while continuing to have its $327 million deficit. Drastic measures were required since the district was able to raise half a year’s budget, although it was not enough. First on the firing line were staff salaries. The layoff notices are being given to all 5,714 teachers and school administrators in Detroit. July 29 could be the end of teachers in Detroit. The city will no longer be paying for it.

Nobody wants to stay

Detroit, once a sprawling metropolis and industrial powerhouse, has been losing people steadily for more than a decade. There are now the same numbers of individuals in Detroit as there was in 1910 as 25 percent of the population left in just the last 10 years. A third of the city, according to MSNBC, sits vacant. The school district has 10,000 fewer students than in 2001. In March, when the Detroit School District went into crisis mode, a law titled Public Act 4 was passed by the Michigan legislature that granted broad powers to emergency financial managers employed by state and local governments. Robert Bobb is the emergency financial manager for the public schools in Detroit. As an emergency measure, he is using the law now.

Firing may not happen

When it comes to layoffs, not every person will really be losing their jobs. Bobb, the emergency financial manager, is said to be restructuring Detroit schools in order to bring them in line with declining enrollment. However, he is also going to restructure the CBA that exists between the city and the Detroit Federation of Teachers. Bobb is likely trying to repeat what happened in 2009 when the district and union made an agreement to cut back on health benefits and teachers salaries. If the fiscal issues are not controlled, Detroit may have to deal with a state takeover, report Reuters. By 2015, the $155 million Detroit deficit might grow to $1.2 billion which would really start in 2014. Just like Bobb took over Detroit schools, an emergency manager might be assigned by the state to the city.

Citations

CNN

money.cnn.com/2011/04/15/news/economy/detroit_teachers/index.htm

MSNBC

msnbc.msn.com/id/42612424/ns/us_news-life/

Reuters

reuters.com/article/2011/04/12/us-detroit-budget-idUSTRE73B5GT20110412

Scheming barristers bungle up BP oil leak fund

The government of the U.S. directed BP to pony up $20 billion for an oil leak fund. A mere pittance of those mega billions has been dispersed to Gulf coast residents who say their livelihoods have been overturned by the environmental and economic carnage. People demanding recompense complain a lot about the claims process, which is infested with attorneys attracted to settlement money like flies on turds.

Getting through BP oil spill claims

About 19 percent of the $20 billion BP set aside for the oil leak claims was paid in the BP oil spill claims with $3.8 billion paid in total by the Gulf Coast Claims Facility a year after the Gulf of Mexico accident last year. The latest report from Kenneth Feinberg, who was appointed by the Obama administration to disburse the BP oil leak fund, said that 201,261 claims have been paid. There have been over 857,000 claims already. BP oil spill claims will be paid until August 2013 by the Gulf Coast Claims Facility which has 3,200 employees in its 35 offices in five states. The claims process has been considered unfair, slow and confusing by several people getting Feinberg a lot of criticism.

Damage proof

Feinberg made a statement on Tuesday about the BP oil spill fund management saying “Amounts requested by claimants very often bear no reasonable relationship to the damages really proven,” since $20 billion was requested by one applicant. About 72 percent of the claims from the BP oil spill have had payments or offers made. There have been claims denied too. There are pending claims also. Usually they just need some documentation. Figuring out the BP oil claims process has been hard on some of the individuals for instance fishermen. They are used to dealing in cash and without paperwork. In 574 cases disputed by claimants who believed payment was too low or rejection was unfair, the Coast Guard, charged with arbitrating disputes, hasn’t overturned a single one.

Getting the cash is all that matters

Tens of thousands of Gulf Coast residents — particularly vulnerable populations with language and culture disadvantages such as the region’s large contingent of Vietnamese fishermen — have been misled into signing up with lawyers or have been unaware that claims have been filed in their name. Feinberg spoke on the fraudulent activity. He said it was “an obstacle to the efficiency and speed in getting the checks out.” The New York Times states that several law firms have targeted Vietnamese fishermen to con them onto their client lists. When BP settles, lawyers end up with more money for how many clients are on the list. The New York Times states of a San Antonio law firm that filed claims for thousands of Vietnamese, all listed as deckhands with identical earnings. The claims were rejected, and many people were surprised to discover their names on the list.

Information from

CNN Money

money.cnn.com/2011/04/18/news/companies/BP _spill_claims/?npt=NP1

24/7 Wall Street

247wallst.com/2011/04/19/the-BP -20-billion-gulf-claims-facility-has-paid-nearly-nothing/

Los Angeles Times

latimes.com/news/nationworld/nation/la-na-gulf-spill-claims-20110419,0,2595018.story

New York Times

nytimes.com/2011/04/19/us/19spill.html?_r=1

Lansing says absolutely no to pay day advance lending as Michigan economy flails

If a legal business offers a product like pay day loans – a product for which there is a proven demand – the efforts of local governments to restrict payday loan lenders through cutthroat zoning policies are at best questionable, says the Payday Pundit. NWI.com reports the Lansing, Mich., Planning and Zoning Board are looking for ways to revise ordinances to phase bad credit loans out of town. Cutting legal, profitable, in-demand companies out of the picture is a poor choice, considering that Michigan’s HB 4214 is holding the financial martial law ax over every struggling town in the state. Source of article – Lansing says no to payday lending as Michigan economy flails by MoneyBlogNewz.

Changing ’special use’ provisions now

Lansing’s Planning and Zoning Board of Appeals has been poring over the city’s “special use” zoning provisions, ostensibly as a check-up to see if any changes need to be made. The suggestions that targeted payday lenders are not a coincidence. Bad credit loan companies help a city’s economy while helping those in need of a little boost here and there although it might help to talk about parking near churches in residential neighborhoods and making sure there are fewer in home day centers.

The zoning changes say that there cannot be any new payday advance outlets in Lansing although this is something that might end up leading to more issues in the future, some suggest. Trustee Mikal Stole said to NWI that they’re simply trying to encourage “more variety in the types of companies.

Several fighting

The state government would be able to “force a municipality” such as putting Lansing into bankruptcy with its “financial czar” (EFM) according to Detroit Rep. John Conyers while it is “an assault on democracy” according to AFL-CIO president Mark Gaffney. This is how Michigan House Bill 4214 has already caused some issues. A new Emergency Financial Manager will start to have control as the Benton Harbor, Mich., official’s powers have been superseded . The economy of the small town might be bad enough to warrant dissolution, a power HB 4214 grants to a governor-appointed EFM.

According to the Rachel Maddow Blog, Benton Harbor’s per capita income is $8,965, the lowest in Michigan. From Benton Harbor, you just have to cross the St. Joseph River to get a better number. The PCI is at $24, 949 in “Twin City” St. Joseph. This is significant because Benton Harbor is the home of the Whirlpool company, which is celebrating its 100th anniversary this year. The company is in St. Joseph, “on the other side of the tracks,” celebrating this.

The business staying at home is something the Benton Harbor business individuals would like. When it comes to payday advance, Lansing should be concerned about keeping its moneymakers around because a financial czar could possibly be waiting in the wings.

Information from

The Maddow Blog

maddowblog.msnbc.msn.com/_news/2011/04/18/6489195-whats-at-stake-in-benton-harbor

NWI Times

nwitimes.com/news/local/govt-and-politics/article_61f251e3-379e-5576-adde-8954a51e9131.html

Payday Pundit

paydaypundit.org/2011/04/18/too-prominent/

CFPB set to deliver easier mortgage forms to consumers

The Home Mortgage Disclosure Act of 1975 demands lenders to make all loan data clear to pertinent public parties. User-friend provisions like this have been around for over 30 years, yet the subprime debacle of recent years proves that the mortgage process still needs an excellent deal of work. Thus, the Consumer Financial Protection Bureau plans to take steps to simplify mortgage disclosure forms so that any prospective homebuyer can understand them. Source of article – CFPB to make simpler mortgage disclosure forms a priority by MoneyBlogNewz.

Calling the mortgage disclosure form a ‘key priority’

The Wall Street Journal reports that the new mortgage disclosure form is a “key priority” of the CFPB, a Dodd-Frank organization that will start operations on July 21.

There’s a lot of paper documentation in detail of the mortgage agreement with all of the mortgage forms. Closing the loan costs a lot in fees and costs. There are a lot of provisions as well. The 1968 Truth in Lending Act and Real Estate Settlement Act from 1974 were put together with these forms. Mortgage disclosure forms will become friendlier than ever if the CFPB gets what it wants.

“We will be looking at our first (mortgage form) prototypes,” White House adviser and possible CFPB chairwoman Elizabeth Warren told Dow Jones Newswires.

In the past, this form has been opposed

The CFPB idea to simplify the forms was being reviewed by Elizabeth Warren with supports. In the past, there have been several attempts to simplify the mortgage papers to help customers understand the exact costs with mortgage loans. This never worked in the past. The CFPB post can be filled by somebody who might make an effort to help Warren. What the decision is on changes to the credit card industry will be determined in the future.

Citations

Home Mortgage Disclosure Act

ffiec.gov/hmda/

Wall Street Journal

blogs.wsj.com/developments/2011/04/18/warren-new-prototype-for-mortgage-forms-coming-in-may/?mod=google_news_blog

You should understand your mortgage

youtube.com/watch?v=MC515DJrhsM

Student loan debt expected to hit $1 trillion and beyond this year

student loan debt is increasing commensurate with a greater number of students paying higher tuition. Students borrowing money for college have racked up a higher amount of debt than those individuals who have financed any number of things in life with charge cards. In fact, the amount of money individuals while students have borrowed to finance education and its relevant accessories is about to blow by $1 trillion and gain momentum into the future. Student loans, long considered a “good debt,” may morph into a bad debt for graduates faced with decades of student loan payments.

Tuition increases mean a rise in student loan debt

In 1993, less than half of students earning a bachelor’s degree graduated with student loan debt. That number increased to two-thirds by 2008. The average debt students left with in 2009 were $24,000. The total amount of student loan debt is supposed to get to at least $1 trillion in 2011. It is anticipated to continue to grow rapidly. Republicans in Congress want to cut Pell grants, a form of federal financial aid for lower-income students. The states are starting to cut college and university funding right now. Also, tuition is increases at most of these places which may hurt the current generation of college students quite a bit. There has been more than just an increase in student loan debt. Student loan default has also increased. When it comes to having kids in the future and purchasing homes, students may have troubles due to credit damage and the huge student loan payments. Anyone who has children may have to choose between paying off their student loan d! ebt and saving for their children’s college education.

Debt does not have to be bad

Payday loans, credit cards and auto loans are all forms of “bad debt.” Student loans, on the other hand, are considered “good debt” by several. It is considered bad to take out any debt though, now that the recession is done. As long as the degree and salary from that degree are able to effortlessly pay back the debt, school loans are considered good debt even though the College Board explained a four year education is over $37,000 a year now. Most financial advisers suggest that individuals do not borrow more than they could make the year after they graduate. That rule of thumb, however, highlights the risk of taking on student loan debt. Finding a job that pays off the average cost of college with a degree in sociology or history is unlikely. The risk may be lower for fields such as engineering or medicine, however the costs, and the debt, will likely be higher.

Loans aren’t always the answer

The real thing that everybody ought to know when it comes to debt is that if it cannot be paid off, then it is bad debt. Students going to for-profit schools have default rates at about 50 percent currently. Student loans usually can’t be discharged in bankruptcy. Any student loans that are guaranteed by the government could be even worse for you. You will end up having tax refunds withheld, Social Security payments docked or even your wages garnished. The Obama administration did make it easier for student loan debtors stuck in low-paying jobs by forgiving the balance on debt for those who have dutifully paid 15 percent of their income toward their student loans for 25 years – or 10 years if they work in public service.

Information from

New York Times

nytimes.com/2011/04/12/education/12college.html?_r=1&emc=eta1

Creditcards.com

creditcards.com/credit-card-news/does-good-debt-still-exist-1264.php

care 2

care2.com/causes/education/blog/student-debt-for-college-likely-to-exceed-a-trillion-dollars/

Federal Reserve doesn't plan to stiffen credit supply just yet

The Federal Reserve has declared that it will not be securing the national credit supply yet. Part of the Fed’s duties, of which there are many, is to monitor the supply of available lending capital and altering it accordingly to best fit the needs of the economy as a whole. The central bank of the nation is being pressured to look into reigning in the credit supply, however insists it will not until the economy is in better shape.

Not a good enough economy to change credit

Food and gasoline is just a couple of the consumer goods that costs have increased on lately. Several have worried that inflation is going to start happening. Because of all of this change, many are worried about the Federal Reserve. They think the Federal Reserve should try restricting credit again. Members of the Fed, however, are confident that the overall economy is too shaky to tighten the credit supply, according to MSNBC. The interest rates will stay near zero still according to Fed Vice Chair Janet Yellen. She was speaking at Yale University when she said this.

Not a low enough joblessness

The interest rates charged by banks and the credit offered to the banks in the united states are partially controlled by the Fed. In order to stimulate lending, banks can get loans from the Fed at zero or close to zero interest during a recession. Those banks can lend that capital to consumers, as mortgages or personal installment loans, or to other financial institutions. There are more parts than credit to the Federal Reserve’s operations. Still, credit is probably the most essential. The amount of available capital may also be dropped by the Fed. This would only take place if it thought the price inflation was too much. There has been a huge increase in the price of oil and food. Now, a dollar does not mean as much.

CFPB watching banks too

The Federal Reserve is going to eventually restrict the supply of credit, meaning interest rates on loans will start increasing in the next year or so, once the central financial institution feels confident enough about unemployment and other economic conditions. Banks may also have to follow rules from the new Consumer Financial Protection Bureau, which will levy fines for legal violations. Elizabeth Warren is the spokesperson for the bureau who said there should be new rules put in place by 2012. Reuters states that July is when the bureau will start to operate. The CFPB is nevertheless a hotly debated issue in Congress, so the extent of its reach has yet to be determined, however a greater degree of regulation is soon to set in for the financial system.

Information from

MSNBC

msnbc.msn.com/id/42520140/ns/business-eye_on_the_economy/

CNBC

cnbc.com/id/42532601

Reuters

reuters.com/article/2011/04/11/us-cfpb-warren-idUSTRE73A5FQ20110411

Jesse Jackson Jr. mistakes iPad for joblessness monster

Illinois Democratic congressman and iPad owner Jesse Jackson Jr. has turned on the machine he used to love. Only one month ago, Jackson lauded Apple’s groundbreaking tablet as a revolutionary educational tool. On Friday, however, iPad owner Jackson turned around and exclaimed before Congress that the iPad is a dangerous gadget that is “probably responsible for eliminating thousands of American careers,” states the Huffington Post.

Jackson states goodbye to publishing

Seeing the textbookless campuses growing and the bankrupt Border Books upset the Illinois junior congressman. He claims it is the iPad’s fault.

“What becomes of publishing companies and publishing company jobs?” Jackson asked the House. “What becomes of bookstores and librarians and all of the jobs associated with paper? Well, in the not-too-distant future, such jobs simply won’t exist.”

Jackson also objected to China being the primary production source of iPad parts.

“There is no protection for jobs here in America to ensure that the American people are being put to work.”

Americans are the ones that want it

The wealth that the iPad has had for many companies in the United States, not even Apple, has not been considered by Jackson, states Business Insider. MarketCues suggests that the iPad will prove to be the nexus from which numerous billion-dollar industries could conceivably spring. E-readers and the iPad provide publishers with myriad opportunities to create interactive textbooks while greatly reducing the costs of producing frequent new editions, a boon for students.

It was anticipated that traditional publishing was to change. According to @Craigmod, the evolution was needed. It might be more helpful to have electronic books to save on paper and give the books instantly. Reading books is what over 65 percent of iPad users use the iPad for. It also, according to Morgan Stanley, created more than $2 billion in revenue every quarter.

Tablet revolution

Unlike Jesse Jackson Jr., publishers are likely to have to adapt. More electronic books than print books are sold on Amazon currently, according 2010 figures. Similarly, iPad users also support periodicals. YUDU Media states that iPad users, in comparison to desktop computer browsers, will spend 30 times more time on sites such as Wired.com, VanityFair.com and GQ.com. There were more Wired.com iPad apps sold than Wired print editions. This is what late 2010 figures showed.

It is just like the commercial for the iPad. It claims, “It’s already a revolution, and it’s only just begun.” There is no longer an invitation for Jesse Jackson Jr.

Citations

@Craigmod

craigmod.com/journal/ipad_and_books/

The Hill

thehill.com/blogs/floor-action/house/148879-jackson-an-ipad-for-every-schoolchild

Huffington Post

huffingtonpost.com/2011/04/17/jesse-jackson-jr-ipad-unemployment_n_850227.html

Market Cues

marketcues.com/blog/2010/02/will-apples-ipad-impact-the-printing-and-publishing-industries/

Neiman Journalism Blog

niemanlab.org/2010/02/the-ipad-business-model-for-news-strategies-publishers-must-embrace/

Publishing Perspectives

publishingperspectives.com/2010/11/simba-releases-statistics-on-ipad-e-book-reading/

Real Clear Politics

realclearpolitics.com/video/2011/04/15/rep_jesse_jackson_jr_blames_the_ipad_for_killing_jobs.html

TSTC Publishing’s Book Business Blog

tstcpublishing.wordpress.com/2010/02/26/ipad%E2%80%99s-potential-impact-on-textbook-publishing/

YUDU Media

slideshare.net/yudu/the-apple-ipad-trends-and-statistics

Economies evolve, pontificators pontificate

youtube.com/watch?v=D5X8W7MgbhM

Home sales are low and rent is starting to rise

Often there is debate on whether to rent or to buy, and the cost of renting is going up. More people are electing to rent apartments, and vacancies have plummeted countrywide among rental properties. That presents landlords with a fantastic chance to charge more to new tenants, as the demand means the resource is scarcer.

Get the apartment rented with no problems

The number of rental property vacancies has been steadily falling for more than a year, according to Bloomberg. The occupancy rate is very high. The vacancy rate throughout the nation is only at 6.2 percent total. There’s a business called Reis Inc., which tracks real estate data throughout the nation. This company observed that there was an 8 percent vacancy rate in April 2010 which dropped to 6.6 percent by the time the year was over. More than likely, there is one age group taking up all the rental space, according to Reuters. This contains anyone from age 20 to 34. The amount of individuals needing a place to live isn’t going down. Nevertheless, people do not want to purchase yet. It could be very hard to find a new apartment now with all the vacancies continuing on.

Rent is rising

As fewer apartments and other rental properties are accessible, the cost of those properties goes up. There is also a rise in countrywide rent averages. The Reis Inc. survey also stated this. The national average effective rent, which is what people pay each month, is $991 per month, a rise over $967 a year ago. There was also an increase in the asking rent. It went up from $1,027 to $1,047 from a year ago. The actual rent went up $20 while asking rent went up $20. At this time, there are also fewer duplexes and apartment complexes being built. That signifies a higher rent in the future is very possible.

Americans don’t have to buy for any reason

Buying real estate is something Americans do not have incentive to do. Rates of interest and values are very low. Nevertheless, getting financing is harder than ever. CNN reports the Federal Reserve said 25 percent of applicants aren’t given loans while borrowers with a credit rating below 760 can’t be backed by Freddie and Fannie. Most banks are hoping for a 20 percent down payment on homes as well. This isn’t a simple thing for Americans to do.

Citations

Bloomberg

bloomberg.com/news/2011-04-06/apartment-vacancies-in-u-s-fall-to-three-year-low-as-rental-demand-climbs.html

Reuters

reuters.com/article/2011/04/06/us-usa-apartments-idUSTRE7353CD20110406

CNN

money.cnn.com/2011/04/06/real_estate/why_you_cant_get_a_mortgage/index.htm

Amazon Kindle to ship with ads on May 3

The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting quite with its Kindle platform. Currently, Amazon has a 60 percent market share in the e-reader market, a hold that should increase as the $114 Kindle with Special Offers hits the market next month. But there’s a caveat for people, states the Christian Science Monitor. The latest Kindle offering could be advertisement-supported. Source of article – Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Kindle price cut with advertisements

The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. To be able to try and compete with the iPad in the e-reader market, the advertisements were put on it this time in the price deduction. May 3 is when the kindle will start with Special Offers. The Kindle 3 will be put in stores then. Both Best Buy and Target will carry it.

Founder and CEO of Amazon Jeff Bezos state it is a “chicken in every pot” move. Every person will want the Special Offers $114 kindle:

“We’re working hard to make sure that anyone who wants a Kindle can afford one,” he said via a statement.

Reader response to a Christian Science Monitor article about the price cut seems to echo the fears most customers have about an advertisement-based Kindle. With 99 cent books, one reader would be okay as long as the ad based e-kindle was free. The price of books becomes a different issue then. Another reader concurs that a $25 discount is not enough to make up for the presence of ads, however one thing experts believe Amazon has done right is to isolate the ads to the Kindle’s screensaver and the bottom of the home screen.

“It’s very important that we didn’t interfere with the reading experience,” Kindle director Jay Marine told the Associated Press.

The price is needed

The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. According to traditional marketing, 99 is magical number.

This isn’t real anymore though according to research done at the New York Columbia Business School. The “dollar-minus” approach (down to 99 cents, for instance) was really less effective than “dollar-plus” price points (like $4.01), according to the Columbia study. Sales of goods that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands because the prices were perceived as being less manipulative.

Articles cited

Christian Science Monitor

csmonitor.com/Books/chapter-and-verse/2011/0413/Will-readers-accept-ads-in-exchange-for-a-cheaper-Kindle

Columbia Business School

gsb.columbia.edu/ideasatwork/researchbriefs/7314376?&top.region=main

Knowing and Making

knowingandmaking.com/2011/04/new-research-99-no-longer-optimal-for.html

TechCrunch

techcrunch.com/2011/04/11/amazon-kindle-99/

Kindle sales tripled after last price drop

youtu.be/PaAFm_fZQ2A

Executive payment soaring as wages flat line

CEO pay in the United States was up 12 percent in 2010, averaging about $9.6 million. In the final quarter of 2010 corporate profits grew faster than they have in over 60 years-30 percent. As CEOs get richer, the workers making them rich get poorer because the rising cost of food and gas is taking a bigger chunk out of stagnant wages. Post resource – CEO pay soars as flat middle class wages erode with inflation by MoneyBlogNewz.

CEO pay increases
coming from the hard workers

At a time when millions of Americans simply hope they keep their jobs, average CEO pay has risen to surpass pre-recession levels. Even as employment is increasing, employee pay is not, however CEO pay is. Over 13 million people are currently looking for work, yet CEO’s are getting by on what they already have and increasing their own wallets. There is no incentive to retain workers or entice new employees. CEOs from nearly every economic sector bailed out by taxpayers’ averaged 12 percent raises last year. Yet, private sector pay rose by about 2 percent. Joblessness hovered at 8.8 percent in March. Economist predicts the unemployment rate will continue to stay high for some time.

The CEO stock portfolio increases

The richest CEO of 2010 was Phillipe Dauman of Viacom, making in only nine months $84.5 million. The rising price of oil and gas has been good to Ray Irani of Occidental Petroleum, who was the runner up with $76.1 million, a 142 percent pay increase over 2009. The third highest paid CEO was Larry Ellison of Oracle bringing in a modest $39.5 million. Wall Street has made it so CEOs are making more money with stock choices than they have made since 2007. Several CEOs played the stock market well by taking stock options when they had no value, knowing the market would one day recover. CEOs are now cashing in on their stock opportunities and making the millions they anticipated. There was well over $20 million made by several CEOs cashing in their stock opportunities according to USA Today.

Middle class income his hard by commodity price increases

The huge CEO pay increases are hard to swallow for the American middle-class, who has watched income stagnate for a generation. In the last five months, income for U.S. hourly workers have not increased one penny, according to the Bureau of Labor Statistics. United States workers are not getting raises, yet the cost of products is ever increases. Prices of commodities and income are basically going in opposite directions. Gas costs alone eat up more than half the average worker’s wage increase. The average middle class employee buys about 12 gallons of gas a week alone. In 2010 it was about $40 cheaper per month to fill a gas tank. Yet the average weekly raise only increased by about $18.

Citations

New York Times

nytimes.com/2011/04/10/business/10comp.html?_r=2#38;ref=business

USA Today

usatoday.com/money/companies/management/2011-04-04-1Aoptions04_ST_N.htm

NPR

npr.org/2011/04/10/135272006/paychecks-cant-keep-up-with-rising-prices