Around the Internet

Independent Fix-it Shops Offer Nearly 50 Percent Savings for L.A. Drivers - Wow...I had no idea that dealers charge that much more for service. Getting new brakes? Transmission? Big bucks!!

"Los Angeles motorists can save nearly 50 percent on car repairs by patronizing an independent repair shop rather than a dealership, says a first-ever study of the issue."

Experts Don't Expect the Rush Retailers Would Like - Expect sales tax in LA County to go up to 9.25% on April 1st, no foolin'. The legislature approved the sales tax rate increase in February, and Gov. Arnold Schwarzenegger signed it into law Feb. 20. The income is meant to help alleviate a $42 billion budget deficit. Oh, and as of July 1, "most county residents will see an additional half-percent hike - to 9.75 percent - to fund transportation projects authorized when local voters approved Measure R last November." So we're going to see sales tax go from 8.25% to 9.75% within a few months. Yikes!!

On that note, on May 19, the vehicle licensing fee will nearly double, from .65 to 1.15 percent, part of the deal to resolve the state's budget crisis.

Eau de Boy: There's such a thing as too much Axe - This was a funny article about what to expect from your boy after age 10.

Redondo Beach bystanders hurt when driver, 88, plows into restaurant - It's always disturbing to hear stories stories like these. And when I heard that a toddler was involved, it was just infuriating.

"The 88-year-old man, whom police did not immediately identify, apparently hit the car's accelerator instead of the brake pedal, sending the car hurtling through the store's glass facade, police said. "

Sesame Street explains Bernie Madoff scandal

This is NOT for kids. Seriously.

Around the Internet

Study: Kids Often Misdiagnosed With Food Allergies - A very interesting article that is sure to create skepticism about the current state of food allergies based on blood tests alone.

"Tests on 125 children with allergies and eczema and found that more than 50 percent of the kids could tolerate foods they had been told to avoid."

Alice Waters on 60 Minutes - I really think she's right. And I'm glad she's been around pushing good food on the U.S. because I think it's fair to say the FDA and the USDA aren't bothered by such pursuits. Having the luxury of being able to shop at farmers' markets has allowed me to realize how good food can be. And that salad...ooo, it looks to good!!

NPR Cancels All Newspaper Subscriptions Except Wall Street Journal - It seems ironic. But they've been cutting back in all areas, which has included canceling two shows and laying off 7% of its staff. And if they can get certain content online for free (e.g., New York Times)...well...

‘Sesame Street’ Producer to Reduce Workforce by 20% - This makes me sad. But they could probably use a reworking of expenses. Per the article, 2008 revenue and expenses were $145 million and $141 million, respectively. "Program expenses at Sesame Workshop, which include content distribution and product licensing, totaled $116.4 million in last year, up from $100 million the year before."

Auto Tax Revenues Going in Reverse, Hurting Cities' Coffers - An informative article breaking down how dismal car sales are impacting Los Angeles and surrounding cities. I'd guess it's applicable to most U.S. cities.

Acne: another bump from the recession - The stress caused by the tough economy can lead to acne. Ack!! Ironically, that stresses me out.

Holiday Deals

I'm a bit overwhelmed at the sales these days. It just feels like the question these days is not "are you having a sale?" Rather "how good is your sale?" And free shipping is a default assumption.

I went to a favorite store, Anthropology, with a specific item in mind and found myself accosted by racks of clothes that filled half the store..all deeply discounted. The better part of my loot was 50% off.

To name a few recent discounting retailers that have helped to overwhelm me: Banana Republic, Gap, J Crew, American Eagle Outfitters, Bloomingdales, Macys, and even high end retailers like Saks and Nordstrom. Emails and store signs and mailers...it's so hard to resist!!

Gap was selling all sweaters at $25 one day, then all gloves, scarves, and hats for $10 another day. Saks has some serious mark downs on designer labels, though it's all far beyond what I'm willing to spend. And I just discovered that Kate Spade (oh, their lovely handbags!!) is offering 30% off of everything on their website, excluding jewelry.

Yikes!!

Have you found any good deals out there?

Like a German

Sometimes I feel like a German.

[Insert joke here]

I heard this piece on the radio explaining how Germany's banking system is relatively unaffected by the current economic climate because they didn't participate (or gain) from the excesses that led to the international meltdown. They didn't get involved in subprime loans. In fact, their equivalent system to a savings and loan is very conservative, only offering mortgages to those with at least 20% down. And depositors earn no more than 4%. Whoa, Nelly!!

The thing is that MetaDaddy and I thought about moving a couple of years ago, but we didn't want to (1) overpay for a property or (2) take out a mortgage we couldn't afford. Staying in our current home, we got to take advantage of the benefits of Santa Monica under affordable circumstances. That said, we'd look longingly at homes in our neighborhood while muttering under our breathe about how nice it would be...blah, blah, blah. But financially, we remained conservative...yardless, but conservative.

When the mortgage crisis started to unfold, we felt vindicated. Why should I feel bad for someone who made a bad decision if I restricted myself from the same luxury? Why should I bail that person out? Why? Why? Why?

But at some point it became obvious that something needed to happen before the U.S. economy, as well as that of so many other countries, is compromised. Is the 700 billion bail out the answer? I don't know. I don't think anyone knows for sure. It seems people with a lot of knowledge and experience are taking a shot in the dark to avoid repeating history.

As I heard this story about Germany, it seemed to me that they'll have to appreciate that even if they didn't benefit from the economy over the past few years, it doesn't mean that they won't suffer if the financial system isn't repaired. All of our economies are interwoven so tightly; you can see the tear ripping through the fabric of the international financial system. And while it's hard to help someone who benefited from stupid mistakes at an ultimate cost to you, isn't the alternative scenario worse.

Happiest Place on Earth

When you Google "Happiest Place on Earth," the first result is Disneyland.

Which leads me to tell you about the best text message ever.

"Do you want to go to Disneyland?"

Duh.

Be still my heart. I don't remember when I've been so excited! I've been to Disneyland many, many times, but not for a while. In my 20's, it seemed like a ridiculously boring thing to do. But now, OMG, OMG, OMG!!

Speaking of the "happiest place on earth," I ran across a couple of interesting articles. This one and this one both rank Iceland as the 4th happiest place on earth. Basically, the populations of the happiest countries

• have a higher GDP per capita,
• have good healthcare,
• have access to education,
• don't have extremes in happiness or sadness.

Basic tools for a healthy body and mind while keeping to the middle of the road is where to be, I guess. Unfortunately, Iceland's been perhaps the hardest hit thus far in the global economic crisis.

"Iceland's whole economy appears on the verge of breakdown, with debts 12 times larger than its GDP. Its stock exchange was today shut down until Monday, due to the "unusual market conditions". Three days ago trading in financial firms was stopped."

The population of 320,000 seems panicky, as does the British government given that Prime Minister Gordon Brown is considering legal action against Iceland for its decision not to recompense those with savings in its failed banks.

Every day, another huge chunk of depressing financial news.

Curious to see what happens with WellsChovia Group. What's King Solomon gonna do with that baby?

Quote: Sir Winston Churchill

Solvency is valueless without security, and security is impossible to achieve without solvency.
--Sir Winston Churchill

...touche

An Economy of Cheap Comfort Foods

Interesting segment on ABC World News last night. The sale of inexpensive comfort foods is up, as is the advertising for said foods. Campbell's soup, DiGiorno pizza, Kellogg's...they're all touting their thrifty eats. Campbell's general manager even admitted that they haven't been as "explicit in focusing on value probably since the 1920s or 1930s." When the stock market took a dive on Monday (remember that 778 drop in the Dow?), the only stock on the S&P 500 index to go up was...drumroll...yup, Campbells.

The segment goes on to say that biologically, this marketing tactic makes sense. Animal studies suggest that fatty comfort foods may ease stress. They are sooooo preaching to the choir. If I could live on cupcakes, I would. I would.

Personally, I've noticed more ads focused on savings. I saw the first commercial for Kool Aid that I've seen in years. It wasn't very exciting, but it just felt unusual. Same goes for Velveeta. I can't believe they still make that stuff!!

Credit Crunch on Main Street

Here's an fun animation simplifying how the credit crunch could effect main street. Cute and funny :-)

The Economy

I listen to news radio a lot throughout the day, and I try to follow the news online when I have time (ha!). When I hear headlines that I find fascinating, I want to post about them so very much. However, I generally don't like posting without researching and referencing information, for the sake of accuracy and clarity. I enjoy the process of researching because it gives me the opportunity to learn more about a particular topic. It's my geeky version of fun.

I yam what I yam.

The economy is a source of so much interest to me. I was an accountant at what I'll call an investment bank, for the sake of simplicity. But it's all so...UGH. Despite my inclination to do so, I'm going to refrain from researching too much because this post will turn into one of those "drafts" that never sees the light of day. Trust me, I know the signs. I'll just share a few news highlights that I've heard over the past few days, and some thoughts here and there. There's so much more, though!!

• Short-selling stocks of financial firms has been halted in the U.K. by the Financial Services Authority (FSA) for the rest of the year, and all held positions will require full disclosure. The reason? Some are accusing short-sellers of spreading false information about companies (e.g., Goldman) to assure the stocks price drops.


• On a similar note, the SEC is considering a temporary ban on short-selling.


• I heard someone on the radio comment that the securities lending industry (short-sellers) saw all of the failures coming. For example, they shorted Lehman, Fannie Mae and Freddie Mac. I can't help but wonder if they foresaw Lehman's demise, or if helped spur it on.


• As of yesterday (Sept 17), the Fed's bail outs totaled a staggering $816 billion, as follows:
  
  --$29 billion to help JP Morgan buy Bear Stearns
  --$200 billion to shore up Fannie Mae and Freddie Mac
  --$85 billion to keep AIG in business
  --$400 billion emergency credit line to banks
  --$102 billion in new FHA loans for distressed homeowners


• Such bailouts have been compared to communist policies in other countries. The thing is that they have far exceeded the intervention of any communist country.


• Washington Mutual, the nation's largest savings and loan, is putting itself up for sale rather than risk total collapse.


• London based Lloyd's Insurance is selling itself to a Scottish bank.


• Wachovia and Morgan Stanley may merge. If Morgan Stanley does merge, Goldman Sachs would be the only independent investment bank left compared to five at the beginning of the year.


• Bank of America didn't get deeply involved in risky sub-prime mortgages.


• Bank of America and Barclays were interested in buying Lehman, but when the Fed wasn't willing to help the purchase along by taking on some of Lehman's debt, as with the Bear Stearns purchase, both potential buyers backed out. Instead, Barclays was able to buy the specific division it wanted at a fire sale price once Lehman filed for bankruptcy and was essentially sold for parts. Why buy the car when all you need is the windshield wiper?


• The 1999 legislation that broke down firewalls between commercial and investment banks and insurance companies created rules that institutions like AIG were able to exploit allowing for its current financial problems.


• And the financial news of the day that has spurred actual positive activity in the stock market involves a systemic fix that resembles the Resolution Trust Corporation (the fix for the savings and loan crisis of the 1980s). An explanation from Marketplace:
  

  "What's being discussed today is something similar, where a fund would be set up by the U.S. government that would go into the marketplace and buy up unwanted mortgage securities and hold them on the sidelines until some of the panic calmed down."

Sources:
ABC World News
Marketplace
Bloomberg
NY Times
NPR

Google: Jerks or Fumblers?

Google stock is down today in after hours trading. Personally, I'd say it's because they're jerks (see below). But no, it's just that their second-quarter earnings that fell below analysts' expectations.

Why are Google heads jerks?

On Day Care, Google Makes a Rare Fumble

"Parents who had been paying $1,425 a month for infant care would see their costs rise to nearly $2,500 — well above the market rate. For parents with toddlers and preschoolers, who were charged less, the price increases were equally eye-popping. Under the new plan, parents with two kids in Google day care would most likely see their annual day care bill grow to more than $57,000 from around $33,000."

It's essentially a ridiculous tale where Google kept one-upping its day care facilities, and before it knew it, they had an over-the-top program that it was subsidizing to the tune of $37K per child per year. The price increase served to fix their other problem, too: the ridiculously long wait list.

"Google has also started charging people several hundred dollars to stay on the waiting list; as a result the list has dropped to around 300 parents. By next fall, Google plans to open new facilities with another 300 places. See? No more waiting list."

Just to drive the point home, Google co-founder Sergey Brin was reported to have said "he had no sympathy for the parents, and that he was tired of “Googlers” who felt entitled to perks like 'bottled water and M&Ms.'"

Since when has day care been equatable to a packet of "free" M&Ms?

Reassessing Property Taxes

Appraisers get it wrong. I had to deal with the Los Angeles County Assessor's office when resolving an issue at work, and...well, I should have been a dentist. (translation = I had to pull many, many teeth for many, many months)

FMF posted a while back on how to have your property taxes reassessed in some states. Definitely something worth looking into if you were unfortunate enough to buy property at the height of the market.

Property taxes in California, however, are different. They are tied to the purchase price of the property, as opposed to market value as in FMF's post. Why? This LA Times article on Property Tax Reassessment says:

"Property tax reductions due to falling home values were established by Proposition 8, which was approved by voters in November 1978 as an amendment to the tax-limiting Proposition 13, which passed in June of that year."

Here's the scoop:

"Assessors in the five-county Los Angeles area are now in the process of cutting property taxes on more than half a million homes because of plunging home values. Notifications will go out this month and next to lucky homeowners.

Keep in mind,

"Homes bought before 2004 are not being automatically reviewed because of the way property values are set.

When a home is sold, the taxable value is set at the sale price. After that, it can rise no more than 2% a year.

Because the market value of most homes sold before 2004 increased far more than 2% annually in the first part of the decade, those properties are probably still worth more than their taxable value, even when the recent slump is considered."

So if you think you're overpaying, check out the article to see how to try to have your taxes reassessed. And be very, very patient. They're not in the business of reducing their income.

Women Paying for Health Insurance

I'm so terribly offended by this phenomenon that I can't quite make enough sense of it. Per this article, women are charged more for health insurance than men, at least on individual policies. Group policies have enough people pooled together that the insurance company can spread the "risk" among everyone, thus negating the need to charge different rates for each insured person.

But insurance companies are in business to make money. Their actuaries crunched the numbers that concluded women are riskier to insure. Their results lead Blue Shield to deem "Hack and all other women are somehow more accident-prone, or more likely to break a bone, or more susceptible to costly ailments."

Come on? How many women do you know that walk around in casts? MetaDaddy broke his collar bone, and spent much of his childhood recovering from head dings and other random boy mishaps. Prior to my c-section, my worst injury was a bump on the head from a flying flute bumping me. Who was at the other end of the flute? Some clumsy guy. Go figure.

I was curious to know why we women are so dangerous. I came up with a few theories, and the article countered each one. Keep in mind that the article is referencing Blue Shield's policies in particular, although they do throw in some data from other insurance companies as a point of comparison.

• It's not about pregnancy because the policy in question doesn't cover pregnancy and maternity care.
• It's not about seeking more preventative care because that should make them better insurance risks. Someone in the article questioned whether or not the actuaries are assessing how much insurance is used vs. true risk. Interesting point.
  
• It's not a "women live longer" issue. As the article points out, on average, women pay more than men up until the age of 60, at which point the trend reverses and men are charged more than women. That said, men are "viewed as a lesser medical liability than women, who live longer on average because they tend to eat right, exercise more frequently and take better care of themselves." How contradictory can you get?
  

So, keep that in mind if you're shopping around for an insurance policy and you're a young, healthy woman. Even though you're likely a lesser risk than the clumsy slob down the hall who snowboards once a year and hasn't seen his ankles since Y2K was all the rage, you might still be paying more than him for the same insurance coverage.

This American Life Analyzes the Housing Crisis

I heard this episode of This American Life on the radio last week, The Giant Pool of Money. It was one of the best depictions of the recent decline of the housing market, as impacted by the mortgage industry.

"We explain it all to you. What does the housing crisis have to do with the turmoil on Wall street? Why did banks make half-million dollar loans to people without jobs or income? And why is everyone talking so much about the 1930s?"

Why did I find it so enlightening and informative?

• It's easy to listen to, making the one hour fly by.
  
  
• Real people tell their stories and their intentions. The good, the bad, and the ugly.
  
  
• The stories make sense. For example, brokers wanted to lend more money because they made a mint on each deal they made, and mortgage companies wanted to lend more money to borrowers because there was little long-term liability (they would bundle a cluster after a month or two and sell the debt off to other institutions). Money was flowing.

In any event, I highly recommend listening to this if you're interested at all in how the nation got into the housing crisis, with foreclosures taking up more and more news headlines, and the credit crunch, which has impacted us all.

Stuff on the Huffington Post

I like reading the Huffington Post, but honestly, the number of daily posts can be a bit overwhelming. I read a few in a moment of madness, and here are some that jumped out at me.

2008 Tax Rebate Checks: What Does a Bush-Hating Liberal Spend Hers On? - OK, politics aside, I think she makes some interesting and novel suggestions on how to use your rebate checks. Personally, I like all three.

Activism Made Easy: Choosing UPS - We ship very few packages/envelopes, but after reading this, I think we'll be using UPS exclusively from now on. I had no idea Fed Ex is such an evil dictator of an *employer*. They save an estimated $400 million per year by treating their *employees* as independent contractors, who then have to purchase their own delivery trucks, insurance, fuel, tires, and maintenance. UPS, on the other hand, treats all of their *employees* as...well, as employees. Benefits, social security, and a truck with gas are some of the perks they get over Fed Ex workers.

I know I've had pretty mediocre customer service and delivery experiences with them in the past, and I wonder how much the treatment of their employees plays into that. On one occasion, I was informed by Fed Ex ground that they have no way of knowing when a delivery person will actually make a delivery, but they have until 10PM (or something like that...it was a while ago) to do so. So the delivery guy could show up at 9:30 and wake my barely sleeping infant, and that was my problem. Gee, thanks.

Sexualizing Miley: Are Billy Ray and Tish Cyrus Letting Her Be The New Lolita? - This reminds me of how much easier it was to be a kid when I was young. Maybe it's just me, but I don't remember being obsessed by confused pop idols or short, revealing clothes. My vice? Debbie Gibson vanilla (ya, ya...we all make mistakes). Personally, it scares me how obsessed young girls are with Hannah Montana, the Disney character played by Miley Cyrus. We know 6 and 7 year-old girls who idolize her, so the kind of adult behavior displayed in Vogue is jarring. These days, I'm constantly hearing from friends of how difficult it is to find non-scandalous clothes for young girls, nevermind dodging media messages. When an obviously under-aged celebrity poses provocatively for a magazine, is this something we want relayed to kindergarteners? Why didn't her parents prevent the shot from being approved for the layout? I would be fuming if someone took a shot like that of my *innocent* 15 year-old. Am I really supposed to believe that two people with such a vested interest in their child's career didn't get to approve the photos beforehand? Really?

Fixing Your Credit Report

A while back I found an error on my Transunion credit report, but it wasn't on the Equifax or Experian reports. Dummy that I am, I didn't fix it right away.

Ugh.

So, it was an account that I did not recognize from a bank that I have had an account with. More suspicious, it was an installment account for an amount that didn't make any sense to me. I'm pretty good about knowing about my accounts, so I knew this wasn't mine. It was on my list of things to do, but dang it, it just fell clean off one day for no good reason.

I have an old credit card with Providian, now Washington Mutual. I never use it, but I keep it open because they provide my Transunion credit score for free. One day I check it and see that my 800 score has dropped by 100 points.

UGH!!!

So, I got my 3 credit reports and saw that Transunion and Equifax now had this unknown account, and it has become delinquent. I contact the bank and ask them about it. But I only had a partial account number as provided on the credit reports. I provided my name, address, and social security number, but they still couldn't find anything. So I had to submit an inquiry, which takes about one month to complete. I kept calling to get an update from the bank, and I ended up having to submit my inquiry twice. Eventually, I got someone really helpful on the phone who suggested I submit another inquiry with them, and one with Transunion and Equifax. The credit reporting agencies, she told me, are required to provide information on the item on my credit report or, if they can't, remove it. Better yet, they have to do one or the other within 30 days.

So within 30 days, I got a notice from both agencies telling me that the item was removed from my credit report.

Woo Hoo!!

My Transunion credit score is now back to the 800 range.

Lessons learned:

• If you see an error on your credit report, fix it right away.
• The longer you take in fixing the problem, the wider it spreads. The wider it spreads, the more tedious it is to fix.
• Don't just call the bank that the erroneous credit item is with. Call the reporting agencies as well, which unlike banks, are required to resolve the disputed item in a set amount of time.
• If you see an unexpected dip in your credit score, something bad has happened.

Want some fore info on credit scores? Check out PBS. More info than you knew existed on credit scores, including it's rather biased history.

Avoid Identity Theft

Identity theft is an ever-prominent danger that people should be wary of whether they spend a lot of time online or not. Shopping with a credit card at a shop can compromise your credit card information just as easily as shopping online. That said, the more time you spend online and sharing your information, the more susceptible you are.

Tips from ABC News: How Identity Theft Happens and How to Protect Yourself - These might just be reminders for the cautious, but good to remember.
For example, only provide financial information when you have initiated the contact. And be suspicious of shabby looking or poorly maintained websites.

A Wall Street Journal article: How to Avoid Cons That Can Lead to Identity Theft - Lists some tips of a similar nature. Also a good reminder to watch out for what are now called "social engineering scams." For example, never click on an embedded link in an email from your bank or credit card company. Open a new window and type in the URL to log in and access your account.

Both are good articles worth skimming. But nothing beats just keeping an eye out for suspicious activity.

I'm just saying.

Around the Internet

Culinary Confessions - A commenter's sin: A lollipop. A glob of peanut butter with chocolate chips sprinkled on top for that "peanut butter cup" effect. Awesome.

Can’t Grasp Credit Crisis? Join the Club via My Open Wallet - A good summary of why credit is hard to come by these days even though you have steady income, great credit, and money in the bank.

Iconic Photographs Recreated in Lego - Precious? Disturbing? All of the above?

Summer Soles via Daily Candy - Cuz women don't sweat, we glow.

Around the Internet

Mortgage rates skyrocket - Have you noticed how mortgage rates are climbing instead of dropping? If the Fed keeps dropping rates, how does that makes sense?!?

"When people hear that the Fed has cut short-term rates, they expect long-term mortgage rates to move in the same, downward direction. But it's a stubborn fact that when Fed rate cuts are deemed inflationary, long-term mortgage rates go up. And that's what has been happening in the past few weeks."

Specifically, lenders aren't too keen on lending money on the cheap. If inflation is on the horizon, they're better off upping their rates to reflect the state of the economy.

U.S. postal rates will increase in May - Yes, again. To 42 cents. However, if you purchase Forever Stamps prior to May 12, their value will rise to match the price adjustment. Otherwise, stock up on 1 cent stamps. More details here.

Classic Beach, but Much More in Santa Monica - The New York Times says Santa Monica's a good place to visit. Obviously, we agree ;-)

Around the Internet

Depleted Helium - Here's another worry to add to your list of environmental concerns. No more balloons for the wee ones!!

Cracked Cabinet - Coolest. Dresser. Ever.

Why people believe weird things about money via Chief Family Officer - Or why people tend to avoid risk to the detriment of their bottom line. It's an interesting concept to keep in mind the next time you find yourself being risk averse. Are you avoiding an actual or perceived risk?

Oscar nominees cross their fingers at luncheon - With talk of the end of the writers' strike, the Oscars are looking brighter than ever.