MM Money: February 2005 Archives

February 21, 2005

When Greenspan Is Stumped, Investors Should Play It Safe

WHEN Alan Greenspan says he cannot explain why longer-term interest rates are so low, what's an investor to do? Take cover. Some money managers are doing just that because they have had the same problem as Mr. Greenspan, the Fed chairman: they cannot understand the decline of longer-term rates despite six increases in short-term rates by Fed policy makers since June. "This development contrasts with most experience," Mr. Greenspan said last week in testimony to ... (full story) Continue reading "When Greenspan Is Stumped, Investors Should Play It Safe"

Posted by mm at February 21, 2005 01:04 PM | Permanent Link | Comments (0)

Four Strong Emerging Markets. But How to Play Them?

WHAT do Brazil, Russia, India and China have in common? They have the greatest prospects for long-term economic growth among big emerging-market countries, in the view of many analysts, who are bullish about investing in them. Goldman Sachs calls the four countries the BRIC's, for their first initials, and many analysts say that all four have growing middle classes and improving domestic infrastructures, and are likely to play dominant roles in the global economy. "The ... (full story) Continue reading "Four Strong Emerging Markets. But How to Play Them?"

Posted by mm at February 21, 2005 12:52 PM | Permanent Link | Comments (0)

Fed Chief Sees Home Price Bubble

Federal Reserve Chairman Alan Greenspan yesterday said he sees a housing price bubble in "certain areas" and suspects prices are vulnerable to declines, but they will not collapse in any way that threatens the economy. "I think we're running into certain problems in certain localized areas. We do have characteristics of bubbles in certain areas, but not, as best I can judge, nationwide," he told the House Financial Services Committee. "I don't expect that we ... (full story) Continue reading "Fed Chief Sees Home Price Bubble"

Posted by mm at February 21, 2005 07:44 AM | Permanent Link | Comments (0)

February 20, 2005

Flaws Showing in 529 Plans for College Savings

Worried about how you'll send your kids off to college? You're not alone. According to a recent survey, 44 percent of parents say they are not prepared to pay for their children's college education, though 65 percent fully expect their kids to attend. Even scarier: 16 percent of parents plan to dip into their retirement funds to help out their kids, and another 7 percent plan to finance at least a portion of education with ... (full story) Continue reading "Flaws Showing in 529 Plans for College Savings"

Posted by mm at February 20, 2005 06:00 AM | Permanent Link | Comments (0)

Men and Women Spend and Save Differently

When it comes to money, men and women view it, spend it and invest it very differently. Little wonder that disagreement over the green stuff is the leading cause of divorce nationwide. Despite better education, despite more and simpler ways to manage it, despite tons of books on the subject, even despite just plain having more of it, there is one thing we seem dead set against doing with our money, and that's talking about ... (full story) Continue reading "Men and Women Spend and Save Differently"

Posted by mm at February 20, 2005 05:58 AM | Permanent Link | Comments (0)

February 19, 2005

Avoiding Confusion With IRA Rollovers

A botched rollover of your individual retirement account can mean the difference between retiring in comfort or retiring a few years later than you'd planned. Forgetting to reinvest the savings after a rollover or having multiple IRAs can complicate matters. Even something as minor as waiting too long to deposit a check into your IRA can result in steep taxes and penalties. But rollovers don't have to be problematic. In this column, I offer some ... (full story) Continue reading "Avoiding Confusion With IRA Rollovers"

Posted by mm at February 19, 2005 08:45 PM | Permanent Link | Comments (0)

American Express's Advisory Unit Faces Fraud Charges

New Hampshire regulators accused American Express Co.'s financial-advisory unit of defrauding customers by giving its sales force secret incentives to sell poorly performing in-house mutual funds, rather than investments from competitors. American Express Financial Advisors awarded bigger bonuses for selling the proprietary funds, investigators said. E-mails collected by the state show supervisors praising advisers who sold American Express funds and chiding those who didn't. In one sales contest, American Express offered advisers free one-year leases ... (full story) Continue reading "American Express's Advisory Unit Faces Fraud Charges"

Posted by mm at February 19, 2005 06:56 AM | Permanent Link | Comments (0)

Time Warner Stops Granting Stock Options to Most of Staff

Time Warner said yesterday that it would no longer grant stock options to most employees, citing new accounting rules. The decision comes at a time when a number of companies that happily doled out options to employees during the last market boom are reining in their use. With the stock market weak, options no longer have much of a cachet for many employees. Some companies - most notably Microsoft - have sought other ways to ... (full story) Continue reading "Time Warner Stops Granting Stock Options to Most of Staff"

Posted by mm at February 19, 2005 05:55 AM | Permanent Link | Comments (0)

Exxon Mobil Takes Top Spot From G.E.

Buoyed by rising profits from lofty oil prices, Exxon Mobil passed General Electric yesterday to become the largest corporation in the nation measured by stock market value. The two companies traded places after Exxon Mobil shares gained more than 2 percent, having surged 43 percent from a year ago, while G.E.'s stock slipped. Exxon Mobil's market value topped $383 billion, while G.E. slipped to $379 billion. A spokesman for Exxon Mobil said the company, which ... (full story) Continue reading "Exxon Mobil Takes Top Spot From G.E."

Posted by mm at February 19, 2005 05:54 AM | Permanent Link | Comments (0)

A New S.E.C. Rule Fails to Raise Share Prices, and Some Are Angry

IT'S a criminal conspiracy when stocks move the wrong way, and the government should do something about it. That is the cry these days of some investors in stocks that have been heavily shorted even after a new rule from the Securities and Exchange Commission took effect. Patrick Byrne, the chief executive of Overstock.com, an Internet retailer, has no doubt why his company's stock took a sudden $13 plunge, to about $53, late last month ... (full story) Continue reading "A New S.E.C. Rule Fails to Raise Share Prices, and Some Are Angry"

Posted by mm at February 19, 2005 05:51 AM | Permanent Link | Comments (0)

February 18, 2005

Fed Chief Urges Cutback in Scale of 2 Big Lenders

The Federal Reserve chairman, Alan Greenspan, urged Congress on Thursday to sharply scale back Fannie Mae and Freddie Mac, the giant and troubled government-sponsored mortgage companies. His comments were the first on the matter since Fannie Mae acknowledged major violations of accounting rules and forced out its chief executive in December. Mr. Greenspan said that the two companies had grown so big that they posed a "substantial risk" to the economy. Under pressure from banking ... (full story) Continue reading "Fed Chief Urges Cutback in Scale of 2 Big Lenders"

Posted by mm at February 18, 2005 11:35 AM | Permanent Link | Comments (0)

Outlooks Differ at Wal-Mart and Target

Wal-Mart Stores, the discount retail giant, rang up more than $288 billion in sales last year, the company announced yesterday, an impressive total that kept it in first place among American corporations in terms of revenue. But the fine print told another story - of higher expenses, slower growth and profit increasingly coming from sources other than the stores themselves - that had the company pledging to investors that it would plan better for this ... (full story) Continue reading "Outlooks Differ at Wal-Mart and Target"

Posted by mm at February 18, 2005 11:35 AM | Permanent Link | Comments (0)

The Times Company Acquires About.com for $410 Million

The New York Times Company announced yesterday that it would acquire About Inc. and its Web site, About.com, from Primedia Inc. for $410 million. Times Company officials said the acquisition would add a fast-growing, highly profitable Web site to the company's portfolio and would increase the company's revenue from the expanding online advertising business. "This deal provides a very attractive return on our investment going forward, and I feel very comfortable standing up in front ... (full story) Continue reading "The Times Company Acquires About.com for $410 Million"

Posted by mm at February 18, 2005 11:33 AM | Permanent Link | Comments (0)

Merck May Resume Sales of Painkiller, Official Says

A top Merck research official suggested to a federal drug advisory panel on Thursday that the company might soon decide to start reselling the painkiller Vioxx in the United States, despite risks it may pose to the heart. The official, Dr. Peter Kim, Merck's research chief, said that if the panel decided that Celebrex and Bextra, drugs similar to Vioxx, also hurt the heart, "then that would be important to us to take that into ... (full story) Continue reading "Merck May Resume Sales of Painkiller, Official Says"

Posted by mm at February 18, 2005 11:32 AM | Permanent Link | Comments (0)

NASD Says Fund Family Paid Improper Fees

NASD has accused an affiliate of American Funds, the nation's third-largest mutual fund company, of directing $100 million in trading commissions to the brokerage firms that were top sellers of its funds. The case is a rare blow for American Funds, whose funds have long been favorites of investors because of their low cost and strong performance. Indeed, its sales were bolstered last year as the mutual fund trading scandals dented the reputations of many ... (full story) Continue reading "NASD Says Fund Family Paid Improper Fees"

Posted by mm at February 18, 2005 11:31 AM | Permanent Link | Comments (0)

Greenspan Backs Idea of Accounts for Retirement

Alan Greenspan, the Federal Reserve chairman, gave his blessing on Wednesday to the creation of individual investment accounts in Social Security but expressed unease that the change could lead to trillions of dollars in additional government borrowing in the next few decades. Mr. Greenspan's cautiously hedged support for the core of President Bush's plan to overhaul the retirement system came as Mr. Bush, in newspaper interviews published Wednesday, left the door open to raising taxes ... (full story) Continue reading "Greenspan Backs Idea of Accounts for Retirement"

Posted by mm at February 18, 2005 11:31 AM | Permanent Link | Comments (0)

Starbucks Will Venture Into Coffee Liqueur

The Starbucks Corporation's latest attempt to create a beverage that is not just for breakfast starts today with the nationwide introduction of an alcoholic coffee drink. It will market the drink, Starbucks Coffee Liqueur, through a partnership with Jim Beam Brands, a unit of Fortune Brands. The liqueur will be sold in bars, liquor stores and restaurants in 750-milliliter bottles for $22.99. It will not be available at Starbucks coffee outlets. Neither company would disclose ... (full story) Continue reading "Starbucks Will Venture Into Coffee Liqueur"

Posted by mm at February 18, 2005 11:30 AM | Permanent Link | Comments (0)

Greenspan Says Entitlement Programs Need Reform

Federal Reserve Chairman Alan Greenspan said on Wednesday the U.S. economy entered 2005 in good shape but warned fiscal discipline was essential to meet future challenges. "All told, the economy seems to have entered 2005 expanding at a reasonably good pace, with inflation and inflation expectations well-anchored," Greenspan said remarks prepared for delivery to the Senate Banking Committee. He gave no direct hint on the direction of future monetary policy, other than to note that ... (full story) Continue reading "Greenspan Says Entitlement Programs Need Reform"

Posted by mm at February 18, 2005 11:29 AM | Permanent Link | Comments (0)

A Hedge Fund May Try to Buy Circuit City, but It May Not

Is Circuit City Stores being primed for a takeover, or is it just being bluffed? Circuit City, the nation's second-largest electronics chain, said yesterday that it had received a $3.25 billion unsolicited takeover bid from one of its largest shareholders, Highfields Capital Management. Highfields, a Boston hedge fund that owns about 6.8 percent of Circuit City and has a long history of shareholder activism, said in a letter that it was disappointed by the company's ... (full story) Continue reading "A Hedge Fund May Try to Buy Circuit City, but It May Not"

Posted by mm at February 18, 2005 11:29 AM | Permanent Link | Comments (0)

February 17, 2005

House Vote Sends Measure On Class-Action Suits to Bush

Congress on Thursday passed legislation that would transfer most large, multistate class action lawsuits to federal court, fulfilling one of President Bush's second-term goals. The aim of the bill was to protect businesses and stop lawyers from reaping huge profits by filing suits in carefully selected state courts. The legislation, given final congressional approval by the House on a 279-149 vote, would bar state courts from hearing large multistate class-action lawsuits. Such courts have been ... (full story) Continue reading "House Vote Sends Measure On Class-Action Suits to Bush"

Posted by mm at February 17, 2005 12:28 PM | Permanent Link | Comments (0)

Investors Get Shortchanged on Interest

The New York Stock Exchange yesterday issued a warning to brokerage houses who may be sweeping billions of dollars of their clients' cash into special accounts that pay lower interest rates than money-market funds. The NYSE said brokerage houses sometimes fail to disclose prominently that these so-called cash-sweep accounts often are inferior to money-market funds. In a letter posted on its Web site and sent to about 300 brokerage houses, the exchange warned the industry ... (full story) Continue reading "Investors Get Shortchanged on Interest"

Posted by mm at February 17, 2005 11:14 AM | Permanent Link | Comments (0)

Going Online To Balance Family Budget

Banks want their Web sites to keep track of your budget as well as your balances. Many consumers already are going online to pay bills and to view account statements and balances. Now, a number of banks are adding online tools that allow customers to track their spending. The tools are similar to basic features offered by personal-finance software such as Microsoft Corp.'s Money and Intuit Inc.'s Quicken. Wells Fargo & Co. plans to announce ... (full story) Continue reading "Going Online To Balance Family Budget"

Posted by mm at February 17, 2005 11:12 AM | Permanent Link | Comments (0)

Greenspan Sees Medicare Crunch

Federal Reserve Chairman Alan Greenspan told lawmakers that the funding shortfall in Medicare is of a much greater magnitude than the problems facing the Social Security system, and that Congress should offset tax cuts by cutting spending. Mr. Greenspan delivered a second day of testimony on the state of the U.S. economy to the House Committee on Financial Services Thursday, a day after testifying to the Senate Banking Committee, where he faced extensive questioning from ... (full story) Continue reading "Greenspan Sees Medicare Crunch"

Posted by mm at February 17, 2005 10:42 AM | Permanent Link | Comments (0)

February 16, 2005

How to Make Tax-Law Changes Work for You This Filing Season

When struggling with your tax return, don't expect common sense will always lead you down the best path, especially if you haven't kept up with all the changes. Taxes have grown so complex that some techniques can be highly counterintuitive. For instance, with the new law on sales-tax deductions, some people may be better off deducting sales tax even if the amount is less than what they paid in state and local income tax. Here ... (full story) Continue reading "How to Make Tax-Law Changes Work for You This Filing Season"

Posted by mm at February 16, 2005 05:20 PM | Permanent Link | Comments (0)

E-Trade Slashes Fees Across The Board, Continuing Online Brokerage Price War

E-Trade launched the latest salvo Tuesday in online brokerages' growing price war, putting its commissions more in line with rivals. Shares of E-Trade (NYSE:ET - News) and Ameritrade (NasdaqNM:AMTD - News) fell on fears that price cuts will slash profit margins. But Web brokers said they're cutting costs and attracting more customers from high-priced offline brokers. E-Trade in December hinted cuts were coming and called its latest move a "disciplined execution" of its strategy to ... (full story) Continue reading "E-Trade Slashes Fees Across The Board, Continuing Online Brokerage Price War"

Posted by mm at February 16, 2005 04:36 PM | Permanent Link | Comments (0)

E*Trade Cuts Some Trading Costs

E*Trade Financial Corp. unveiled a commission schedule that brings down the prices for many online stock and options trades. The company's move, which takes effect Friday, marks the latest price cut in the price-sensitive online-trading industry. E*Trade, based in New York, said it is making changes to three big customer groups. E*Trade will make it easier to qualify for its "power E*Trade" active-trader service, bringing the number of trades per quarter needed to 15 from ... (full story) Continue reading "E*Trade Cuts Some Trading Costs"

Posted by mm at February 16, 2005 04:34 PM | Permanent Link | Comments (0)

NHL Cancels Rest of Season As Flurry of Negotiations Fail

Calling off what little was left of its 2004-05 season, the National Hockey League became the first professional sports league to cancel an entire season because of a labor conflict. The shutdown came five months after the NHL's 30 teams locked out the 700 unionized players after the expiration of their collective-bargaining agreement. At a news conference Wednesday in New York, NHL Commissioner Gary Bettman apologized to fans but said the league was not willing ... (full story) Continue reading "NHL Cancels Rest of Season As Flurry of Negotiations Fail"

Posted by mm at February 16, 2005 04:28 PM | Permanent Link | Comments (0)

February 15, 2005

G.M. Will Pay $2 Billion to Sever Ties to Fiat

General Motors said on Sunday that it would pay Fiat $2 billion so that it would not be forced to take over Fiat's ailing auto business, resolving a dispute between the two that had threatened to become a court battle. The companies also dissolved a five-year-old industrial partnership in which they jointly produced engines and transmissions in Europe and Latin America and jointly purchased parts, though they said they would continue to cooperate in some ... (full story) Continue reading "G.M. Will Pay $2 Billion to Sever Ties to Fiat"

Posted by mm at February 15, 2005 01:22 PM | Permanent Link | Comments (0)

February 13, 2005

Utah, Alaska Among Top 529 Plans

For the second consecutive year, college-savings plans in Utah, Michigan, Alaska and Virginia snagged the top spots on research firm Morningstar Inc.'s annual list of the best 529 plans. The Chicago firm -- which began evaluating these vehicles last year -- compiled its rankings by looking at different plans' costs, investment options, flexibility and fund firms' reputations. The list is designed to provide investors with a starting point to evaluate these savings plans, which hold ... (full story) Continue reading "Utah, Alaska Among Top 529 Plans"

Posted by mm at February 13, 2005 09:38 AM | Permanent Link | Comments (0)

Sullivan: Accounting Sank Merger Deal

A possible 2001 merger between WorldCom Inc. and Verizon Communications was scuttled by internal concerns over accounting tricks at WorldCom, jurors in the fraud trial of former WorldCom CEO Bernard Ebbers were told on Thursday. One-time finance chief Scott Sullivan, who has pleaded guilty to fraud and is cooperating with prosecutors in hopes of leniency, said he became concerned that false accounting would be uncovered when Verizon (Research) began taking a closer look at the ... (full story) Continue reading "Sullivan: Accounting Sank Merger Deal"

Posted by mm at February 13, 2005 08:38 AM | Permanent Link | Comments (0)

Bush Seeking Help For Overhaul

President Bush promised to listen to "any good idea" for fixing Social Security on Saturday as he sought to coax reluctant lawmakers into joining his effort to overhaul the immensely popular retirement program. "I will work with members of Congress and listen to any good idea that does not include raising payroll taxes," Bush said in his weekly radio address. "But we cannot pretend that the problem does not exist," he said, as he repeated ... (full story) Continue reading "Bush Seeking Help For Overhaul"

Posted by mm at February 13, 2005 08:22 AM | Permanent Link | Comments (0)

Taxed On Our Gains

We sold our home in Los Angeles for a profit of $85,000, moved to Kansas and are now looking to purchase a new home. My husband says we should put as little as possible of our home-sale gain toward the down payment, but I'm worried we'll get taxed on our gain if we don't invest it in a new house. What do you think we should do? -- Laura, Overland Park, Kansas The first thing ... (full story) Continue reading "Taxed On Our Gains"

Posted by mm at February 13, 2005 08:20 AM | Permanent Link | Comments (0)

Bleak Outlook Dulls Sharper Image

Shares of Sharper Image Corp., the personal and home electronics retailer, dropped as much as 16 percent Friday, a day after it forecast a first-quarter loss and declining sales. Company Chairman and Chief Executive Richard Thalheimer, told analysts in a conference call late on Thursday that lackluster product introductions were hurting results. Claire Gallacher, an analyst at Caris & Company, called the company's outlook "dismal", and downgraded her investment rating on the stock to "sell ... (full story) Continue reading "Bleak Outlook Dulls Sharper Image"

Posted by mm at February 13, 2005 08:19 AM | Permanent Link | Comments (0)

Best Rock For Your Buck

You're in deep. Cupid either just struck you silly or hit you years ago so hard those feelings are still there. Nonetheless, the little chub has you out looking for a diamond, ruby, or sapphire or maybe all three to express your love for that special someone this Valentine's Day. While you might be smitten, wise up there. Precious stones are a big-time purchase. To make sure you're getting the real thing and the best ... (full story) Continue reading "Best Rock For Your Buck"

Posted by mm at February 13, 2005 08:15 AM | Permanent Link | Comments (0)

Is There Hype Behind Hedge Funds?

Hedge fund indexes strongly overstate the industry's investment success and far too much money is being drawn into the funds as a result, with possibly dire consequences in the future, a leading U.S. academic said. "Between 1998 and 2004 there has been enormous growth in hedge fund assets to about $1 trillion and since they are typically leveraged their buying power is much greater," said Burton Malkiel, professor of economics at Princeton University. "Hedge funds ... (full story) Continue reading "Is There Hype Behind Hedge Funds?"

Posted by mm at February 13, 2005 08:14 AM | Permanent Link | Comments (0)

Citigroup To Cut Up To 1,000 Jobs?

Citigroup Inc. is trimming its corporate and investment banking work force by 2 percent to 3 percent, which could result in the loss of more than 1,000 jobs, a person familiar with the matter said Friday. The cuts are expected at all levels within the unit, which employs about 48,000 people, the source said. New York-based Citigroup is the world's largest financial services company. "We are making limited staff reductions, consistent with two fundamental objectives ... (full story) Continue reading "Citigroup To Cut Up To 1,000 Jobs?"

Posted by mm at February 13, 2005 08:13 AM | Permanent Link | Comments (0)

Fidelity's Outsourcing Biz Hits Record

Fidelity Investments said Thursday its retirement and human resources outsourcing business reached record levels for the second straight year in 2004 and makes up about one-third of the mutual fund company's annual revenue. Boston-based Fidelity, which has tried to insulate itself from market swings by diversifying into other areas, said it signed up more than 1,500 new clients in its outsourcing business in last year. In 2003, Fidelity said it added 1,175 new client outsourcing ... (full story) Continue reading "Fidelity's Outsourcing Biz Hits Record"

Posted by mm at February 13, 2005 08:12 AM | Permanent Link | Comments (0)

Carly May Get $42 Million

Ex-Hewlett-Packard CEO Carly Fiorina will get a severance package worth about $21.4 million, but stands to reap another $21 million after she was forced out by the computer maker's board last week, a newspaper reported Saturday. The additional amount reflects the estimated value of her Hewlett stock and options as well as her pension, which were not included in her severance package, the New York Times reported. Fiorina was forced to resign Tuesday after the ... (full story) Continue reading "Carly May Get $42 Million"

Posted by mm at February 13, 2005 08:11 AM | Permanent Link | Comments (0)

Analyzing the I.Q. of Money

EVER wonder what the smart money is doing? Walter Hertler, a technical analyst, thinks he has it figured out, and many stock market investors won't like the news. Mr. Hertler consulted the Smart Money Indicator, a measure sometimes used to try to distinguish the activity of the wiliest professional investors from that of the less astute and less rational public. That barometer has sent one of its strongest sell signals in years, said Mr. Hertler ... (full story) Continue reading "Analyzing the I.Q. of Money"

Posted by mm at February 13, 2005 02:03 AM | Permanent Link | Comments (0)

Marketing of Vioxx: How Merck Played Game of Catch-Up

At times, it is necessary to "neutralize" the opposition, or at least Merck & Company executives seemed to think so. In 1999, the company's new pain drug, Vioxx, was beaten to pharmacy shelves by a competing drug, Celebrex. Merck apparently hoped that nationally known rheumatologists like Dr. Roy Altman could help it catch up. At a dinner that year in Miami, a Merck executive asked Dr. Altman what it would take to win his support ... (full story) Continue reading "Marketing of Vioxx: How Merck Played Game of Catch-Up"

Posted by mm at February 13, 2005 02:01 AM | Permanent Link | Comments (0)

Social Security Plan Hinges on the Peg

Now that President Bush has put forward a proposal to allow younger workers to divert part of their Social Security payments to investment accounts, the even bigger challenge awaiting him is to offer a plan for restoring the system to financial balance. At the top of the agenda, officials and outside experts say, is the idea of curtailing the growth of the benefits promised to future retirees by tying them to increases in consumer prices ... (full story) Continue reading "Social Security Plan Hinges on the Peg"

Posted by mm at February 13, 2005 02:00 AM | Permanent Link | Comments (0)

Dell Revenue Sets Record, but Tax Charge Hits Profit

Dell Inc. said on Thursday that an increase in sales to corporations led to record revenue in the fourth quarter, although profit slipped slightly because of a one-time tax charge. "The quarter represents continued record performance by our team around the world," the chief executive, Kevin Rollins, said. Dell, the leading personal computer maker, earned $667 million, or 26 cents a share in the quarter, compared with $749 million, or 29 cents a share, in ... (full story) Continue reading "Dell Revenue Sets Record, but Tax Charge Hits Profit"

Posted by mm at February 13, 2005 01:58 AM | Permanent Link | Comments (0)

U.S. Trade Deficit Exceeds a Record $600 Billion

The American trade deficit broke the $600 billion barrier in 2004, soaring to $617.7 billion, the Commerce Department reported today. The trade deficit now accounts for more than 5 percent of the American economy, a level some economists and lawmakers said was unsustainable. The deficit also adds pressure to push down the value of the dollar and increases the amount of debt held overseas. Domestic manufacturers, labor unions and Democrats say the growing deficit is ... (full story) Continue reading "U.S. Trade Deficit Exceeds a Record $600 Billion"

Posted by mm at February 13, 2005 01:57 AM | Permanent Link | Comments (0)

February 10, 2005

Americans Worry About Saving

Nearly nine out of 10 Americans were worried about saving enough for retirement even before President Bush began his recent campaign to change Social Security, according to a new study. Fifty-seven percent admitted they often or sometimes felt worried about how well prepared they will be for retirement, and 32% said they worried occasionally, according to a survey released by Wachovia Corp. Only 11% expressed no such concerns. And half of those polled worried about ... (full story) Continue reading "Americans Worry About Saving"

Posted by mm at February 10, 2005 09:56 AM | Permanent Link | Comments (0)

Online Calculators Test Social Security Scenarios

Figuring out just how golden your retirement years will be if Social Security is overhauled is a challenge. A number of think tanks have created online calculators that compare the benefits individuals might receive under the current Social Security system with how they may fare under a plan using personal accounts that invest in the market. If a system involving a mix of traditional Social Security benefits and personal accounts comes to pass, individuals likely ... (full story) Continue reading "Online Calculators Test Social Security Scenarios"

Posted by mm at February 10, 2005 09:54 AM | Permanent Link | Comments (0)

Title Insurance Protects Lenders. So Why Shouldn't They Pay for It?

Hey lawmakers? If you're really serious about lowering costs for homeowners on closing day, here's a suggestion: Make lenders pay for title insurance. Though many consumers don't quite understand what title insurance covers, lenders require them to buy it, whatever the cost. The insurance typically is one of the biggest costs at closing, ranging anywhere from a few hundred dollars to $1,200 on a $150,000 mortgage, depending on the state you live in. But while ... (full story) Continue reading "Title Insurance Protects Lenders. So Why Shouldn't They Pay for It?"

Posted by mm at February 10, 2005 09:51 AM | Permanent Link | Comments (0)

Citigroup Plans Platinum-Card Rival

The American Express Platinum card is about to get a big new competitor. Starting next month, Citigroup Inc. will roll out the Chairman card, a MasterCard with a long list of features that are similar to ones that American Express Co. offers. The Chairman card, like the Platinum plastic, will offer airport-lounge access, free companion plane tickets, emergency-evacuation services and reserved tables at restaurants. While Citigroup is aiming its initial pitch at its Smith Barney ... (full story) Continue reading "Citigroup Plans Platinum-Card Rival"

Posted by mm at February 10, 2005 09:48 AM | Permanent Link | Comments (0)

Too Big: Learning From Mistakes

Amid the most vigorous merger market in five years, the failings of Carly Fiorina's $19 billion link-up between Hewlett-Packard Co. and Compaq Computer is a reminder of the risk that lies at the heart of all large takeover deals. Ms. Fiorina staked her future on the promise of the combined company, reasoning that it could compete in everything from personal computers and printers to big consulting projects for large companies. While H-P promises to continue ... (full story) Continue reading "Too Big: Learning From Mistakes"

Posted by mm at February 10, 2005 09:47 AM | Permanent Link | Comments (0)

Retirement Turns Into a Rest Stop as Benefits Dwindle

For John A. Lemoine, retirement has been hard work. Forced to take an early pension package at AT&T three years ago, Mr. Lemoine, 54, a former building manager who once made more than $70,000 a year handling the operations of several AT&T sites, soon found that retirement was something he just could not afford. To supplement the greatly reduced pension he received upon his retirement, he first took an $11-an-hour job as a maintenance worker ... (full story) Continue reading "Retirement Turns Into a Rest Stop as Benefits Dwindle"

Posted by mm at February 10, 2005 09:41 AM | Permanent Link | Comments (0)

Valuing MCI in an Industry Awash in Questions

What price a struggling telecommunications company? Industry bankers and accountants are trying to answer just that: What is the value of MCI, a company for which Qwest Communications has already made a tentative offer of about $6.3 billion, and on which Verizon Communications has been running the numbers. Conversations between MCI and Qwest have been suspended since late last week, and Verizon has yet to make a formal offer, people close to the negotiations say ... (full story) Continue reading "Valuing MCI in an Industry Awash in Questions"

Posted by mm at February 10, 2005 09:39 AM | Permanent Link | Comments (0)

S.E.C. Chief, Under Cross-Pressure, Sees Some Modest Changes

William H. Donaldson, chairman of the Securities and Exchange Commission, predicted on Wednesday that the commission would consider making modest, but not wholesale, changes to some major regulations adopted after a wave of corporate scandals. Under heavy pressure from Bush administration officials, business groups and Wall Street, Mr. Donaldson denied that the agency was in a period of significant retrenchment, but said that it was part of his plan to reflect on the regulatory experience ... (full story) Continue reading "S.E.C. Chief, Under Cross-Pressure, Sees Some Modest Changes"

Posted by mm at February 10, 2005 09:35 AM | Permanent Link | Comments (0)

Fiorina's Confrontational Tenure at Hewlett Comes to a Close

It came as an icy moment in an already tense news conference last month during the annual World Economic Forum in Davos, Switzerland. Asked to describe her relationship with her board, Carleton S. Fiorina, the Hewlett-Packard chief executive, replied with a single word: "Excellent." Perhaps she was in denial, or just out of the loop, but Ms. Fiorina's confrontational tenure as chief executive of the world's second-largest computer company was unraveling. Back in the United ... (full story) Continue reading "Fiorina's Confrontational Tenure at Hewlett Comes to a Close"

Posted by mm at February 10, 2005 09:32 AM | Permanent Link | Comments (0)

What Hewlett-Packard Seeks In a Successor to Fiorina

The next leader of Hewlett-Packard Co. will need to boast an impressive résumé. The ideal successor to departing Chief Executive Officer Carly Fiorina is a star CEO at a company with at least $40 billion in annual sales. He or she will have demonstrated the ability to restore the tarnished luster of the giant printer and computer maker, a Silicon Valley icon. That means a proven ability to tackle brutal global competition, execute multiple technology ... (full story) Continue reading "What Hewlett-Packard Seeks In a Successor to Fiorina"

Posted by mm at February 10, 2005 09:18 AM | Permanent Link | Comments (0)

February 07, 2005

Long-Term Rates Down Since June

As the Federal Reserve has steadily pushed up short-term interest rates, the market has been pushing long-term interest rates down. The Fed has been on a rate-raising campaign for nearly eight months, delivering six increases for a total rise of 1.5 percentage points that culminated with Wednesday's 1/4-point hike. What has caught many off-guard is that long-term rates have fallen a half percentage point. The rate on the 10-year bond ended at 4.17% Thursday. It ... (full story) Continue reading "Long-Term Rates Down Since June"

Posted by mm at February 07, 2005 06:47 AM | Permanent Link | Comments (0)

Watch Spending Habits To Keep Debt From Going Bad

This is not a book about how to get out of debt, so put away your pencils. What Jon Hanson, a personal finance lecturer, offers in Good Debt, Bad Debt is a folksy guide to changing your spending habits, saving for retirement and, in general, thinking about money. He knows how scary debt can be. In 1997, he owed nearly $100,000 to the IRS. But he recovered and is singing the praises of his saved ... (full story) Continue reading "Watch Spending Habits To Keep Debt From Going Bad"

Posted by mm at February 07, 2005 06:42 AM | Permanent Link | Comments (0)

'Simplified' Ticketing Is Not So Simple For All Fliers

In the new world of airfares, Tony Randall is one of the lucky ones. Fares had been so high at Randall's local airport in Greenville, S.C., that the machine salesman routinely drove 250 miles to fly from Raleigh/Durham, N.C. There, discounter Southwest Airlines keeps fares in check. After Delta Air Lines cut some of its business fares and simplified its ticket pricing a month ago, Randall says he was "shocked" to see Delta's and US ... (full story) Continue reading "'Simplified' Ticketing Is Not So Simple For All Fliers"

Posted by mm at February 07, 2005 06:39 AM | Permanent Link | Comments (0)

Blockbuster With a Joystick

Ten years after being burned in their first attempts to combine movies and television with the video game business, media companies now seem willing to press the play button again. Wall Street is rife with speculation that various media companies are on the hunt to acquire a video game maker like Activision or Electronic Arts. Studios are more aggressively licensing their television and movie properties to game makers. And the pitches for video game-inspired movies ... (full story) Continue reading "Blockbuster With a Joystick"

Posted by mm at February 07, 2005 06:31 AM | Permanent Link | Comments (0)

Trim Deficit? Only if Bush Uses Magic

The economy is growing. Tax revenues are climbing. But can these factors rescue President Bush from a federal deficit that seems stuck above $400 billion? The answer, unfortunately, is almost certainly no, analysts say. For all the programs that Mr. Bush is expected to slash in his budget proposal on Monday - from health care and housing aid to Amtrak - the cuts would total less than $15 billion next year and barely dent the ... (full story) Continue reading "Trim Deficit? Only if Bush Uses Magic"

Posted by mm at February 07, 2005 06:29 AM | Permanent Link | Comments (0)

The Downside of Cash Advance Checks

Nothing beats using your credit card when it comes to protection of your purchases. That's something on which financial experts generally agree, whether you're buying groceries, paying for items online, or making a big purchase like a car or paying a college tuition bill. Credit card transactions are protected under the Fair Credit Billing Act. It's this law that allows you to dispute charges made on your account, including things such as late or unacceptable ... (full story) Continue reading "The Downside of Cash Advance Checks"

Posted by mm at February 07, 2005 06:27 AM | Permanent Link | Comments (0)

Taken For A Ride

Car companies are at a crossroads. Last week, Nissan chief executive Carlos Ghosn lamented that while gas-electric hybrid cars are in vogue, their cost of production makes no economic sense. He also dashed hopes for hydrogen-fuel-cell vehicles: "The cost to build one fuel-cell car is about $800,000. Do the math and you figure out that we will have to reduce the cost of that car by more than 95 percent in order to gain widespread ... (full story) Continue reading "Taken For A Ride"

Posted by mm at February 07, 2005 06:26 AM | Permanent Link | Comments (0)

Busting The Bond Myth

Retirement may be decades off, but life's next stumbling block may be just around the corner -- a reason some advisers urge younger investors to think of bonds as a complement to their stock-heavy 401(k)s. Long considered the boring cousin of the stock market and aimed primarily at older, wealthier individuals who need to preserve capital, fixed-income investments could be a vital component of a well-rounded, lower-risk portfolio. That's true particularly if the portfolio has ... (full story) Continue reading "Busting The Bond Myth"

Posted by mm at February 07, 2005 06:24 AM | Permanent Link | Comments (0)

Picking Rewards Deals? Seek Loyalty

Customer reward programs are becoming more of a factor in credit card choice. Reward cards allow you to earn redeemable rebates or points for purchases you make. These aren't your typical store-sponsored credit cards -- reward programs are offered by major credit card companies and can be used anywhere. Potential rewards include airline tickets, merchandise or fuel reimbursement, car rebates, cash back, investments or even contributions to a college savings plan. Each program has different ... (full story) Continue reading "Picking Rewards Deals? Seek Loyalty"

Posted by mm at February 07, 2005 06:23 AM | Permanent Link | Comments (0)

February 06, 2005

FCC: Cable TV Rates Rose 5.4% In 2003

U.S. cable television prices increased at almost three times the rate of inflation in 2003 and the medium lost market share to satellite services, according to government reports issued on Friday. The U.S. Federal Communications Commission said rates for basic, expanded basic cable service and equipment rose 5.4 percent to an average of $45.32 per month in the year ended Jan. 1, 2004, up from $42.99 a month the prior year. But cable rates rose ... (full story) Continue reading "FCC: Cable TV Rates Rose 5.4% In 2003"

Posted by mm at February 06, 2005 07:34 AM | Permanent Link | Comments (0)

China: No Yuan Timetable

Chinese authorities on Saturday again declined to set out a time-table to make their currency more flexible on the world's money markets and said they had not come under international pressure to revalue the yuan. Major nations and especially the United States have repeatedly urged China to allow its currency to rise and the Chinese foreign exchange regime was also in focus at the Group of Seven meeting. "We are determined to move towards a ... (full story) Continue reading "China: No Yuan Timetable"

Posted by mm at February 06, 2005 07:31 AM | Permanent Link | Comments (0)

If Profits Grow, How Can the Market Sink?

THE faster corporate earnings grow, the better the stock market performs. That is a tenet of Wall Street, but like so much other conventional wisdom, it turns out to be false. In fact, since 1927, according to data from Ned Davis Research of Atlanta, the market has performed best during quarters when earnings are as much as 25 percent below year-earlier levels. When earnings are growing strongly, as many expect them to do this year ... (full story) Continue reading "If Profits Grow, How Can the Market Sink?"

Posted by mm at February 06, 2005 07:27 AM | Permanent Link | Comments (0)

Is Online Retailing a Victim of Its Own Success?

ONLINE retailers have benefited from some very conspicuous consumption, on their Web sites and especially on Wall Street. Shares of companies in the sector rose nearly 80 percent last year, among the best performances in the entire stock market. But investors seem to have developed a strong case of buyer's remorse. Many companies in the sector are trading lower since the start of this year, including two of the leaders, Amazon.com, down 19.3 percent, and ... (full story) Continue reading "Is Online Retailing a Victim of Its Own Success?"

Posted by mm at February 06, 2005 07:24 AM | Permanent Link | Comments (0)

Working for Top Bosses on Wall St. Has Its Perks

On Wall Street, just about everything has its price, from the commission on a stock trade to the pay package of a top banker. But when it comes to securing the services of an ever-loyal, all-knowing executive assistant, the boss is often willing to disburse cash and a long list of perks - from unlimited credit at high-end hair salons to nannies. After this week's disclosure that the executive assistant for Richard A. Grasso, the ... (full story) Continue reading "Working for Top Bosses on Wall St. Has Its Perks"

Posted by mm at February 06, 2005 07:20 AM | Permanent Link | Comments (0)

Greenspan Says Trade Gap May Narrow

Alan Greenspan, the chairman of the Federal Reserve, said on Friday that America's record trade deficit might be poised to stabilize and even fall because of market pressures and belt-tightening by the Bush administration. Mr. Greenspan was speaking at a gathering coinciding with a scheduled meeting of the finance ministers and central bank governors from the Group of 7, the leading industrialized nations. His remarks inspired a strengthening of the dollar, which had fallen because ... (full story) Continue reading "Greenspan Says Trade Gap May Narrow"

Posted by mm at February 06, 2005 07:18 AM | Permanent Link | Comments (0)

Greenspan Sees U.S. Trade Gap Stabilizing and Possibly Falling

Alan Greenspan, the chairman of the Federal Reserve, suggested today that the United States' record trade deficit may be poised to stabilize and even decline as a result of market pressures and promised spending restraint by the Bush administration. Mr. Greenspan was speaking at a gathering here coinciding with a scheduled meeting of finance ministers and central bank governors from the Group of 7 leading industrialized nations. His remarks contributed to a strengthening of the ... (full story) Continue reading "Greenspan Sees U.S. Trade Gap Stabilizing and Possibly Falling"

Posted by mm at February 06, 2005 07:16 AM | Permanent Link | Comments (0)

Court Blocks U.S. From Seeking Billions From Tobacco Industry

A federal appeals court ruled today, in a big victory for cigarette makers, that the federal government could not use an antiracketeering statute to collect $280 billion from the tobacco industry, which it accuses of conspiring for decades to hook people on smoking and conceal the deadly effects of the habit. A panel of the United States Court of Appeals for the District of Columbia Circuit ruled, 2 to 1, that the government could not ... (full story) Continue reading "Court Blocks U.S. From Seeking Billions From Tobacco Industry"

Posted by mm at February 06, 2005 07:13 AM | Permanent Link | Comments (0)

February 05, 2005

Start Saving For College ASAP, If You Can

According to Nellie Mae, a leading education-loan provider, the average undergraduate student loan debt in 2002 was $18,900 and rising fast. The trend toward higher tuition costs shows no signs of abating, and neither does the trend of increasing post-graduation indebtedness. The magic of compounding and escalating college costs underscore the importance of starting a college fund early. But tight budgets and other priorities stand in the way of many families' establishing college savings for ... (full story) Continue reading "Start Saving For College ASAP, If You Can"

Posted by mm at February 05, 2005 08:24 AM | Permanent Link | Comments (0)

February 04, 2005

Banks Speed Process For Opening Online Accounts

Bank branches are losing a major advantage over online banking: instant accounts. Visiting a branch has traditionally been the quickest way to open and fund an account for say, checking or savings, because of the paperwork and processes involved to validate customer identities and avoid fraud. At a branch, consumers typically can provide the data needed and walk out with an active account. With an online application to open an account, customers often need to ... (full story) Continue reading "Banks Speed Process For Opening Online Accounts"

Posted by mm at February 04, 2005 03:23 PM | Permanent Link | Comments (0)

Fidelity Cuts Commissions On Some Internet Trades

Fidelity Investments lowered the online-trading commission paid by its mid-level traders, becoming the latest Internet broker to bring down pricing. The company on Tuesday said it would now charge its "silver level" customers a stock-trade commission of $10.95, down from a previous commission of $14.95. The prices are available to customers who place 36 to 119 trades a year and who have $30,000 or more in household assets at Fidelity. Those with more than $100,000 ... (full story) Continue reading "Fidelity Cuts Commissions On Some Internet Trades"

Posted by mm at February 04, 2005 03:22 PM | Permanent Link | Comments (0)

Cash Is Favored Over Trip In Card Loyalty Plans

The rich use loyalty programs to make themselves richer. A survey of households with incomes above $125,000 found that 70% of them earned cash back in the past two years or will get money back soon, while 62% redeemed points for free travel. Until recently, a finding such as this would have been counterintuitive. After all, families with six-figure incomes probably wouldn't have noticed a 1% or so refund on the goods they put on ... (full story) Continue reading "Cash Is Favored Over Trip In Card Loyalty Plans"

Posted by mm at February 04, 2005 03:20 PM | Permanent Link | Comments (0)

AT&T Investors Face Tax Headache

AT&T Corp. was once the nation's most widely held company, the epitome of a "widows and orphans" stock, with a safe, consistent income stream that inspired grandparents to bequeath their shares to loved ones. Today, many people, especially those who have owned the stock for decades, are more likely to hold onto their shares for a different reason: They're afraid of the tax consequences. SBC Communications Inc.'s proposal to buy AT&T -- and the pending ... (full story) Continue reading "AT&T Investors Face Tax Headache"

Posted by mm at February 04, 2005 11:17 AM | Permanent Link | Comments (0)

Automatic 401(k) Enrollments May Lasso Lackadaisical Savers

Concerned that workers haven't saved enough for their golden years, companies are ramping up efforts to put workers' retirement plans on autopilot. Employers say one of their biggest priorities for 2005 is to provide employees with more information and customized projections of how much money is needed to meet their retirement goals, according to a recent study by Hewitt Associates in Lincolnshire, Ill. But for some employers, simply touting the importance of saving for retirement ... (full story) Continue reading "Automatic 401(k) Enrollments May Lasso Lackadaisical Savers"

Posted by mm at February 04, 2005 11:16 AM | Permanent Link | Comments (0)

Schwab to Reduce Commissions By 35% for Some Online Trades

SAN FRANCISCO -- Charles Schwab & Co. will reduce by 35% its online equity commission for some retail investors, its third price cut since summer in an effort to keep pace with competitors such as E*Trade Financial Corp., TD Waterhouse and Ameritrade Holding Corp. Schwab said the changes could reduce consolidated revenue by 1% in the 12 months following implementation, but backed its target of a 25% gain in 2005 pretax operating profit. In a ... (full story) Continue reading "Schwab to Reduce Commissions By 35% for Some Online Trades"

Posted by mm at February 04, 2005 11:15 AM | Permanent Link | Comments (0)

Popular Tax Software Is Now Free to All

In an unusual departure for the $1 billion tax software and online tax-preparation industry, makers of the nation's two best-selling programs are giving away free software and electronic-filing services to anyone who wants them. The move to make the software free to everyone is the latest twist to emerge from a deal the Internal Revenue Service cut in late 2002 with numerous tax-preparation companies. The IRS, which has been trying to encourage more people to ... (full story) Continue reading "Popular Tax Software Is Now Free to All"

Posted by mm at February 04, 2005 11:09 AM | Permanent Link | Comments (0)

If Yuan Moves, Will U.S. Rates Go Up?

Finance ministers from the Group of Seven industrialized nations will converge today on the clubby Lancaster House in London, where they will raise a question that, depending on whom you believe, could affect pocketbooks from Beijing to Peoria: Should China allow the value of its currency, the yuan, to rise against the dollar. In U.S. bond markets, the question has long fueled anxiety, because many investors believe that China's policy of maintaining a fixed yuan-dollar ... (full story) Continue reading "If Yuan Moves, Will U.S. Rates Go Up?"

Posted by mm at February 04, 2005 11:04 AM | Permanent Link | Comments (0)

Greenspan Sees Weak Dollar Easing Current-Account Gap

A weaker dollar and greater fiscal discipline are among the factors that may help start to restrain the explosive U.S. current-account deficit, Federal Reserve Chairman Alan Greenspan said Friday at an economic conference in London. But Mr. Greenspan cautioned that the global economy is essentially in uncharted waters given the unprecedented level of economic interaction between countries and thus any forecast of where the trade deficit is headed could prove to be wrong. "The dramatic ... (full story) Continue reading "Greenspan Sees Weak Dollar Easing Current-Account Gap"

Posted by mm at February 04, 2005 11:02 AM | Permanent Link | Comments (0)

For MCI, Qwest May Not Be Most Desirable

Michael D. Capellas is at it again. As chief executive of Compaq, Mr. Capellas successfully engineered the sale of that troubled computer maker to Hewlett-Packard three years ago. Now, as chief executive of MCI, the big, challenged long-distance phone carrier, Mr. Capellas is in talks to sell the company to Qwest Communications, the smallest and weakest of the four Bell operating companies, for about $6 billion, according to industry executives. Yet Qwest is not Mr ... (full story) Continue reading "For MCI, Qwest May Not Be Most Desirable"

Posted by mm at February 04, 2005 10:37 AM | Permanent Link | Comments (0)

February 01, 2005

Microsoft Allots More Cash to Ads For Search Engine

Microsoft Corp. plans to intensify its attack on Google Inc. with a four-month advertising and marketing campaign to promote its new Internet search engine. Microsoft Vice President Yusuf Mehdi said Microsoft will promote its MSN Search service using "grassroots" marketing, online advertisements and commercials in select cities during the Super Bowl and college-basketball playoffs. Mr. Mehdi said Microsoft will spend in the tens of millions of dollars on the campaign, which is in addition to ... (full story) Continue reading "Microsoft Allots More Cash to Ads For Search Engine"

Posted by mm at February 01, 2005 12:39 PM | Permanent Link | Comments (0)

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