Say "bye-bye" to traditional newspapers? Thanks to the burgeoning advancements in digital publishing options like the iPad and online news sites, Viacom and CBS honcho Sumner Redstone predicts the death of printed dailies.
According to Redstone at the Milken Institute Global Conference in Beverly Hills: "There won't be any newspapers in two years."
The exec, who owns TV and film giants MTV, VH1 and Paramount Pictures, also takes a swipe at media rival Rupert Murdoch, who invested his News Corp. empire into the so-called "ink" industry and forked over $5.5 billion in 2007 to purchase Dow Jones & Co., publisher of the Wall Street Journal.
“He lives in ink, and I live in movies and television,” Redstone says here. “Ink is going to go away, and movies and television will be here forever, like me.”
In the current economic downturn, consumers are cutting back on non-essential extravagances. However, is it smart to cut the college fund? According to a Gallup survey, 47 percent of parents who have previously been saving for their kid's education are putting less cash away ... or not saving at all.
It's important to prepare for the future and start saving for education, especially during an economic crisis. The Wall Street journal reports on the rising costs of education for the 2008 to 2009 school year. "The average cost of attending a four-year public school for in-state residents--including tuition and room and board--rose 5.7 percent to $14,333, according to the College Board. The cost was up 5.6 percent to $34,132 for a private university.
Should you invest in a college-savings plan? A 529 is an account that works like a Roth IRA. However, these plans are somewhat complex. They're governed by individual states, and each state in the U.S. deals with the benefits and tax breaks of a Roth IRA differently.
Financial Research, a Boston Consulting firm adds, "Meanwhile, the value of 529 college-savings accounts sank 21 percent last year."
Using 529s can be very confusing, and only around 5 percent of middle-class families use these accounts, according to Treasury Secretary Timothy F. Geithner. The 529 is more common with high-income filers.
“The combination of differing rules and a cacophony of confusing investment options have made the plans tough to navigate and can discourage their use by less sophisticated savers" says Joseph Hurley, founder of SavingforCollege.com and author of "The Best Way to Save for College: A Complete Guide to 529 Plans."
So how can one make 529's less confusing? To start, pick up a copy of Hurley's "Save for College" book. Also, pay attention to your state's rate compared to others. Clark Howard shows different state rates here.
A new trend in banking is allowing some borrowers to cut down on the cost of financing their loans to make environmentally friendly upgrades.
Some banks and government-sponsored programs offer credits on closing costs or reduced interest rates if the money is going to be used to increase a home's energy efficiency. The combined factors of relatively low energy prices and reluctance to spend during the downturn have decreased demand for products related to energy efficiency and home renovations.
As a result, the incentives could help stimulate the market for new appliances and construction and installation services.
The Wall Street Journal also reports that an additional benefit offered by the incentives is the ability to report energy savings as income. The difference between the cost of energy bills before and after the improvements are made can be added to the total amount of qualifying income.
In order to be eligible for any of these cost-saving measures, potential borrowers often must first undergo a home energy audit. After the audit, homeowners agree reduce their consumption by a designated amount or agree to make predetermined changes to their properties.
Some programs, such as myEnergyloan, allow borrowers to lower the interest rates on their loans by increasing the efficiency of their homes. A "point" of energy improvement represents one one-hundredth of a point on the principal mortgage cost. Making numerous improvements can generate significant savings on a mortgage.
Upgrades and improvements won't necessarily generate savings, especially in the short-term, and Mark Wolfe, director of the Energy Programs Consortium, cautions consumers in the Wall Street Journal.
"In practice, if you have a reasonable house that's in reasonably good shape, look to save between 25% and 40% on your energy bills" to make the choice cost-effective. "Fifty percent or deeper savings require a bigger investment and a longer payback period," Wolfe adds.
Sell stocks, buy shoes? A new trend of meltdown-themed marketing capitalizing on the current economic crisis is adding salt to an already wounded general public.
Retailers are in full panic due to the current financial meltdown. With the spike in gas prices over the summer, there was already a move toward conservative hiring and inventory. September's numbers look even worse, causing retailers to cut back even more.
The same is true for consumers. Analysts predict that purchases on non-essentials will probably be put on hold. In response, retailers are coming with meltdown-themed marketing focused on the current financial crisis.
Steve Madden Ltd. footwear stores advertise to shoppers saying, "Sell Stocks, Buy Shoes." On top of the ad, all products were marked down by 20%.
Restoration Hardware sent out an e-mail blast on Thursday advertising that it "unanimously approves the bailout bill" offering $100 off purchases of $400 or more.
However, consumers aren't buying into the ads.
According to a WSJ report, many retail chains are expected to show declining sales in the upcoming months, a key measure of retail performance.
Oil has dropped to $100 a barrel, yet airline fees are here to stay.
When oil was $140 a barrel, it was understandable that airlines began to add "fuel surcharges" for frequent flier tickets. At $130 a barrel, Airlines such as American, United, and US Airways added on a fee for each checked bag per flight. This was blamed on fuel costs.
The price of oil has dropped to $100 a barrel, yet airline fees seem to be here to stay. Airlines continue to say that these fees are based on current oil prices. The price of oil is by far the largest expense in any airline.
Airlines have long been looking for a way to extract more revenue from customers in areas other than fares. They seem to have found the answer, and customers are willing to pay. Continental airlines will generate $100 million annually from a 15$ checked-bag fee alone. United could make $700 million just in add on fees next year. J.P. Morgan estimates that with all fees included, the new airline business structure will generate an additional $3 billion in revenue. Keep in mind the airline industry has never earned more than $5.3 billion in a year.
Jamie Baker, a J.P. Morgan airline anayst says, "It was only the reality of $140 oil that gave the U.S. inustry the courage to pursue a strategy they wanted to pursue, you hold onto it as long as you can until competitive pressures force you to back off." This strategy includes a new business model that is completely a-la-carte.
What to expect? A whopping $2 for a soda, coffee or a bottled water. $15 for a checked bag. No dinner served in coach. Expensive snack packs. And fees, fees and more fees.
As the sub-prime mortgage situation continues to worsen, the FBI confirms that they're investigating lenders for possible fraud. According to articles in The Wall Street Journal and CNN Money, Countrywide Financial Corporation could be involved in the suspected fraud within the industry.
The company’s practices of representing their losses and underwriting loans are said to be under examination. In addition, the company has also come under scrutiny after sending out letters to customers this week informing them that some personal data may have been compromised.
A former employee is cited as the cause of the leak and Countrywide is providing two years of credit monitoring services for free to customers believed to be impacted. This comes at a difficult time for Countrywide, the country’s biggest home-loan lender.
Though Countrywide is the biggest lending company involved, it's not the only company under investigation. CNN Money reports that the FBI is looking into the lending practices of a total of 16 mortgage companies.
As other major financial institutions continue to experience the negative effects of the subprime mortgage market, the FBI would not release the names of the lenders under investigation.
"The FBI has been investigating potential fraud in the mortgage/sub-prime lending industry, however, we can not confirm or deny which companies are under investigation," FBI spokesman Richard Kolko told CNN.
Compact Appliance: Save 25% or more off air conditioners at Compact Appliance.
MXenergy: $25 Consumer United rebate upon signing.
Peapod: First time shoppers with our new service partner, Peapod, will instantly save $10 on their online grocery order. Use the Consumer United promo code CJN10, and click on the promotional link HERE to start saving.
Verizon: Limited time offer! Verizon FiOS bundle, cancel within 90 Days with no early termination charges. Click here to sign up for the Internet service and get the first month free.
Wall Street Journal: Eight free weeks and 75% off Wall Street Journal print & online subscriptions.
Say "bye-bye" to traditional newspapers? Thanks to the burgeoning advancements in digital publishing options like the iPad and online news sites, Viacom and CBS honcho Sumner Redstone predicts the death of printed dailies.
