Finance news. My opinion.

+%3Cp%3E+Cell+phone+bans%2C+such+as+those+recently+recommended+by+the+National+Transportation+Safety+Board%2C+have+so+far+proven+useless+when+it+comes+to+actually+reducing+car+crashes%2C+according+to+the+Insurance+Institute+for+Highway+Safety.%3C%2Fp%3E%3Cp%3EThe+Insurance+Institute+is+a+private+group+financed+by+auto+insurers.+The+National+Transportation+Safety+Board+recently+recommended+that+states+adopt+strict+rules+banning+all+non-driving-related+use+of+hand-held+devices+such+as+cell+phones+–+even+hands-free+–+while+driving.%3C%2Fp%3E%3Cp%3E%3Cp%3E%3C%2Fp%3E%3Cp%3E%3Cp%3E%3C%2Fp%3E%3C%2Fp%3E%3C%2Fp%3E%3Cp%3EMany+states+already+have+bans+on+hand-held+cell+phone+use+and+on+texting+while+driving.+The+Insurance+Institute+has+studied+crash+rates+before+and+after+bans+were+enacted+in+various+states+and+also+compared+them+to+crash+rates+in+nearby+states+with+no+such+bans.%3C%2Fp%3E%3Cp%3EWhile+the+bans+have+resulted+in+actual+reductions+in+phone+use%2C+they+have+not+resulted+in+any+reduction+in+crash+rates%2C+according+to+the+Institute.%3C%2Fp%3E%3Cp%3EThe+Institute+found+similar+results+from+bans+on+text+messaging+while+driving.+In+fact%2C+in+a+strange+twist%2C+texting+bans+actually+resulted+in+more+crashes+in+several+states%2C+according+to+an+IIHS+study.%3C%2Fp%3E%3Cp%3EThe+lesson%2C+Insurance+Institute+spokesman+Russ+Rader+said%2C+may+be+that+cell+phones+aren%27t+really+the+problem%2C+drivers+are.%3C%2Fp%3EGallery%3A+Safest+cars+from+the+Insurance+Institute%3Cp%3E%26quot%3BPart+of+it+is+that+distracted+driving+is+much+bigger+than+just+phones%2C%26quot%3B+he+said+%26quot%3Bso+focusing+on+phones+doesn%27t+deal+with+the+full+spectrum+of+things+that+distract.%26quot%3B%3C%2Fp%3E%3Cp%3EFor+its+part%2C+the+NTSB+has+cited+various+studies+showing+a+connection+between+cell+phone+use+and+an+increased+likelihood+of+crashing.+An+NHTSA+study+indicated+that+distracted+driving+caused+about+3%2C000+crash+deaths+last+year%2C+although+it%27s+not+clear+how+many+of+those+crashes+were+related+to+hand-held+devices+as+opposed+to+other+distractions.%3C%2Fp%3E%3Cp%3E%26quot%3BWhat+we+know+is+that+the+best+course+of+action+is+a+three+pronged+approach+–+strong+laws%2C+strong+education+and+strong+enforcement%2C%26quot%3B+NTSB+spokeswoman+Kelly+Nantel+said+in+an+email.%3C%2Fp%3E%3Cp%3EAutomakers%2C+including+Ford+%28%2C+Fortune+500%29%2C+General+Motors+%28%2C+Fortune+500%29%2C+Toyota+%28%29+and+Hyundai+%28%29+have+invested+heavily+in+creating+increasingly+sophisticated+hands-free+phone+systems+for+cars+%3Ca+href%3D%22http%3A%2F%2Fpay-day-loans-4all.com%22%3Efaxless+pay+day+loans%3C%2Fa%3E%3C%21–+.+–%3E.+Most+of+those+systems+would+be+banned+under+the+NTSB%27s+proposal.+%28An+exception+would+be+GM%27s+OnStar+which+allows+users+to+make+calls+using+a+telephone+built+into+the+car+itself.+The+NTSB+proposal+would+specifically+allow+calls+on+that+sort+of+system+since+it+does+not+involve+a+handheld+phone.%29%3C%2Fp%3E%3Cp%3EFord+spokeswoman+Christin+Baker+objected+to+the+NTSB+proposal+citing+research+that+tracked+real-world+drivers.+The+research+showed+that+talking+on+a+phone+resulted+in+dangerous+incidents+only+when+drivers+took+their+eyes+off+the+road+and+their+hands+off+the+steering+wheel.+Voice-activated+systems+like+Ford%27s+Sync+would+prevent+that%2C+she+said.%3C%2Fp%3E%3Cp%3EExperts+have+said+the+NTSB%27s+proposal+is+unlikely+to+become+law+in+many%2C+if+any%2C+states+due+to+strong+resistance+from+drivers+who+want+to+stay+in+communication+while+driving.%3C%2Fp%3E%3Cp%3ENew+technologies+that+help+alert+drivers+to+hazards+on+the+road+would+probably+do+more+to+actually+reduce+distracted+driving+crashes%2C+the+Insurance+Institute%27s+Rader+said.%3C%2Fp%3E%3Cp%3E%3C%2Fp%3E%3Cp%3E+%3C%2Fp%3E%3Cp%3ESuch+technologies+include+forward+collision+warning+systems+that+alert+drivers+to+stopped+or+slow-moving+cars+or+pedestrians+ahead+of+them+and+lane+keeping+assistance+systems+that+warn+when+a+vehicle+is+drifting+out+of+its+lane.%3C%2Fp%3E%3Cp%3EBoth+the+Insurance+Institute+and+the+U.S.+Department+of+Transportation+are+looking+at+ways+to+incorporate+safety+systems+like+these+in+their+assessments+of+car+safety.+As+of+now%2C+such+assessments+rely+almost+entirely+on+crash+tests.%3C%2Fp%3E%3Cp%3EThere+is+the+danger+that+drivers+might+over-rely+on+these+systems%2C+said+Rader%2C+canceling+out+their+benefits+by+just+paying+even+less+attention+to+the+task+of+driving.%3C%2Fp%3E%3Cp%3E%26quot%3BThat+is+the+thing+researchers+are+going+to+be+watching%2C%26quot%3B+said+Rader.+%26quot%3BHow+are+drivers+going+to+respond+to+these+systems%3F%26quot%3B%26nbsp%3B+%3C%2Fp%3E++%3Cp%3E%3Ca+href%3D%27http%3A%2F%2Fmoney.cnn.com%2F2011%2F12%2F15%2Fautos%2Fiihs_cell_phone_bans%2Findex.htm%27+rel%3D%27nofollow%27%3ESource%3C%2Fa%3E%3C%2Fp%3E+

Stock indexes swung from gains to losses and back again Tuesday afternoon, after the Federal Reserve cautioned that Europe’s financial crisis still poses a threat to the world’s economy.

The Dow Jones industrial average rose 7 points, or 0.1 percent, to 12,028 as of 3 p.m. Eastern time. It had risen as high as 126 points earlier Tuesday after two strong auctions of European debt reassured investors.

The Federal Reserve portrayed the U.S. economy as slightly healthier but cautioned that it remains vulnerable to the European debt crisis. “Strains in global financial markets continue to pose significant downside risks to the economic outlook,” the Fed said in a statement.

The Spanish government was able to sell short-term debt at much lower interest rates Tuesday compared with a month ago, a signal that markets are becoming less fearful about the government’s ability to repay its debt.

In its first sale of short-term bills, the European Financial Stability Fund raised 1.9 billion euros ($2.6 billion) from investors at an average rate of 0.22 percent. That’s below the rate Germany pays for the similar bills. “This is an amazing success,” Carl Weinberg, chief economist at High Frequency Economics, wrote in a note to clients.

The Dow sank 162 points Monday when Moody’s and Fitch warned that the fiscal agreement reached last week among European leaders fell far short of what was needed to contain that region’s debt crisis.

The Commerce Department reported Tuesday that retail sales rose for the sixth straight month in November. Sales increased just 0.2 percent, below what analysts had expected. But the government also revised the previous month’s slightly higher. That was the encouraging part, said Tim Hoyle, director of research at Haverford Investments. “It reassures you that the economy is going in the right direction,” Hoyle said cash advance to savings account.

Energy companies led the market higher as crude oil rose back above $100. Exxon Mobil Corp. rose 2 percent, Chevron Corp. 1.5 percent. Drugmaker Pfizer added 2.1 percent, the most of the 30 companies in the Dow. Pfizer said it plans to buy back up to $10 billion of its own stock.

The Standard & Poor’s 500 index dropped 2 points, or 0.2 percent, to 1,233. The Nasdaq composite fell 14 points, or 0.5 percent, to 2,598.

The Vix, a measure of stock market volatility, fell to 25. It has dropped 10 percent in December. The index remained above 30 from early August until last week. Hoyle said a sustained fall in the Vix usually is followed by a rise in stock prices. The recent trend “sets us up for a little Santa Claus rally between now and the end of the year.”

The yield on the 10-year Treasury note fell to 1.95 percent from 2.02 percent late Monday after an auction of new 10-year notes drew strong demand.

Urban Outfitters jumped 6 percent, the most in the S&P 500 index, after the retailer said its sales were rising faster than analysts were expecting. The Philadelphia-based company owns Urban Outfitters stores, Anthropologie and Free People.

Sprint Nextel Corp. rose 1 percent as it looked like its rival AT&T Inc. would be unable to pull off an acquisition of T-Mobile USA. Sprint agreed to drop a lawsuit against AT&T now that the deal appears to be in jeopardy. Sprint had been lobbying to stop it.

Electronics retailer Best Buy plunged 15 percent. The company said its third-quarter income sank 29 percent as it cut prices on tablets and TVs to drive sales and traffic during the busy holiday season.

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Federal authorities are investigating a suspected embezzlement of potentially millions of dollars from a St. Louis area medical practice, according to a source close to the investigation.

The FBI and U.S. attorney’s investigation comes on the heels of the termination by Metropolitan Urological Specialists PC of Dunard Morris, who until recently served as its chief executive. The investigation focuses in part on whether money was diverted from the firm’s bank loans, the source said. The amount of missing money isn’t known but could be millions, the source said.

The medical practice also maintains that Morris subleased a $5,475-a-month luxury apartment using company funds without approval of the firm’s board of directors.

During the last two years, the company has shown signs of cash flow problems, including the buildup of about $1 paydayloans.3 million in delinquent federal, state and local taxes, interest and fees, St. Louis County records show.

Asked about the federal investigation, U.S. Attorney Richard Callahan said Thursday, “I don’t want to prejudge anything, but it is a matter that has our interest.”

Morris did not return phone calls Thursday. One of his lawyers, Patrick Smith at DLA Piper law firm in New York, has declined to comment. “I’m not authorized to talk with you,” he said. Morris’ local counsel, Richard Sindel, declined to comment.

Metropolitan’s attorney, Mayer Klein, said the medical firm “terminated” Morris in mid-September but would not detail why. He did confirm that the company is investigating the missing money.

“There were some concerns with regard to prior management, and we’re working with everyone involved

An investigator has denied any role in the death of ailing lawyer Sergei Magnitsky while he was imprisoned in a Moscow jail for tax evasion.

Oleg Silchenko, a senior investigator at the Interior Ministry’s Investigative Department, made his first public appearance at a news conference Thursday.

Magnitsky was imprisoned in 2008 and died of untreated pancreatitis in Nov. 2009. His family blame Silchenko for his continued detention.

Grilled by reporters, Silchenko said he had no powers to recommend the ailing lawyer for extra medical treatment and believed Magnitsky could have pressured witnesses if released us fast cash.

Silchenko is top of a list of dozens of Russian officials barred by the United States from entering the country for his alleged role in the death.

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St. Louis-based Concordia Publishing House on Tuesday won one of four 2011 Malcolm Baldrige National Quality Awards.

The company’s “focus on customers” with the goal that they recommend the business to others was a key factor in the nonprofit being recognized, said Bruce G. Kintz, Concordia’s president and CEO.

The award is the nation’s highest presidential honor for business performance through innovation, improvement and visionary leadership.

Kintz said he implemented a business model used when he was a director at McDonnell Douglas Corp./Boeing Co. after coming to Concordia in 2001. In short, the model puts each customer’s needs first, he said.

Concordia is the only nonprofit business named as a Baldrige Award winner this year. The other recipients announced by U.S. Commerce Secretary John Bryson were Henry Ford Health System of Detroit, Schneck Medical Center of Seymour, Ind., and Southcentral Foundation of Anchorage, Alaska, all health care agencies.

Concordia Publishing House, or CPH, is the publishing arm of The Lutheran Church-Missouri Synod. It has about 250 employees. In 2009, CPH received a Missouri Quality Award from the Excellence in Missouri Foundation.

“With God’s grace, CPH has achieved a level of excellence that few major corporations realize,” Kintz said. “As a Christian organization we are humbled by our achievements, and as a thriving publishing house we are proud to represent both innovation and sustainability in this ever-changing marketplace.”

The 2011 Baldrige Award recipients were selected from a field of 69 applicants. All were evaluated by an independent board of examiners. The evaluation process for each of the recipients included about 1,000 hours of review and an on-site visit by a team of examiners.

Named after Malcolm Baldrige, the 26th secretary of commerce, the Baldrige Awards were established by Congress in 1987 to enhance the competitiveness of U.S. businesses.

The 2011 recipients are expected to get their awards at an April 2012 ceremony in Washington. More information on the awards is available at www.nist.gov/baldrige.

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World stock markets fell Wednesday as Europe’s festering debt crisis overshadowed figures showing that Americans increased their retail spending for a fifth straight month.

Benchmark oil slipped below $99 per barrel while the dollar rose against the euro and was little changed against the yen.

European shares fell in early trading. Britain’s FTSE 100 slipped marginally to 5,517.44. Germany’s DAX shed 0.9 percent to 5,878.33 and France’s CAC-40 lost 0.4 percent to 3,036.76.

Wall Street also braced for a lower opening, with Dow Jones industrial futures falling 0.7 percent to 11,957 while S&P 500 futures lost 0.8 percent at 1,244.50.

The retreat in Europe followed losses in Asia, where Japan’s Nikkei 225 index lost 0.9 percent to close at 8,463.16, a six-week closing low. Hong Kong’s Hang Seng dropped 2 percent to 18,960.90 and South Korea’s Kospi shed 1.6 percent to 1,856.07. Benchmarks in Singapore, Taiwan, and Australia also fell.

Mainland China’s benchmark Shanghai Composite Index lost 2.5 percent to 2,466.96, its lowest closing this month. The smaller Shenzhen Composite Index dropped 2.6 percent to 1,059.24.

Data on retail sales showed Americans spending more on autos, electronics and building supplies in October _ and at a faster rate than expected. Many saw the result as a sign that the U.S. economy may well avoid another recession as consumer spending is the biggest component of the country’s GDP.

Still, investors could not get past the mammoth debt loads carried by Greece and Italy, which are threatening to trigger an all-out financial crisis on the continent.

“The world does not believe the crisis is solved,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong. “The market is still very jittery and still worried about possible effect of economic slowdown and recession in Europe. I think this will depress the market for a quite a long period.”

And the problem isn’t just isolated to Greece or Italy, he said.

“It’s the problem of the entire Western world,” Lun said. “For Europe, it overborrowed for 12 years and for the U.S., it probably overspent for 30 years _ so 30 years of mismanagement cannot be corrected in one day.”

On Tuesday, higher interest rates on government debt issued by Italy, Spain and other countries rattled European stock markets. The interest rate on Italy’s 10-year bond jumped back above 7 percent, a dangerously high level.

Higher borrowing costs _ in the form of extra yields that must be paid for bonds regarded as riskier _ are a sign that investors are worried that those countries may have trouble paying their debts.

The debt crisis among the 17 nations that use the euro currency “appears to be deteriorating by the day,” analysts at Credit Agricole CIB said in a report. “Contagion has spread across eurozone bond markets like wildfire and the lack of action to create a firewall means that that there is little to extinguish it.”

Italy’s borrowing rate first crossed the 7 percent threshold last week, raising worries about Rome’s ability to manage its debts. Greece, Ireland and Portugal had to get rescued by international lenders when their borrowing rates crossed the same level.

Meanwhile, Chinese property shares were sharply lower amid falling housing prices as government efforts to cool the overheated housing industry take effect. Hong Kong-listed blue chip China Overseas Land & Investment fell 4.6 percent, while Poly Real Estate Group lost 4.8 percent.

Japan’s Olympus Corp. soared 15.6 percent amid easing worries that the company _ embroiled in a scandal over the concealment of huge investment losses _ will be delisted by the Tokyo Stock Exchange.

Shares of Tiger Airways jumped 6.1 percent in Singapore trade after the carrier was cleared to increase its number of flights in Australia ahead of the busy Christmas travel period.

Mainland Chinese shares in real estate, cement, media and financial companies weakened following a report from the International Monetary Fund that warned China’s banks could face risks if real estate prices fall sharply or unpaid loans increase. The IMF also said other dangers could arise from growing imbalances in a Chinese economy that relies heavily on exports and investment to drive growth.

Shanghai-listed Ping An Insurance lost 4.6 percent while China Nonferrous Metal Industry lost 4.7 percent.

On Wall Street on Tuesday, the Dow rose 0.1 percent to 12,096.16. The S&P 500 gained 0.5 percent to 1,257.81, and the Nasdaq added 1.1 percent to 2,686.20.

Benchmark crude for December delivery was down 43 cents at $98.94 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.23 to settle at $99.37 in New York on Tuesday.

The euro fell to $1.3532 from $1.3543 late Tuesday in New York. The dollar fell to 76.94 yen from 77.04 yen.

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Investor Warren Buffett says his company bought $10.7 billion of IBM stock this year, about a 5.6 percent stake.

Buffett revealed the new investment during an interview on CNBC Monday. Buffett’s company, Berkshire Hathaway Inc., will file a full quarterly update on its U.S. stock portfolio Monday afternoon.

Buffett has long refused to invest in high-tech companies because he it’s too difficult to predict which technology businesses will prosper in the long run.

Buffett says he recently changed his view of IBM’s role in industry. So Berkshire bought about 64 million shares since March, or about 5.6 percent of IBM.

Buffett says he believes IBM has a sound plan for the future.

IBM shares rose $1.62 to $189 in premarket trading after rising as high as $190.55 earlier.

Besides investments, Berkshire owns roughly 80 subsidiaries including insurance, railroad and utility firms.

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Spanish telephone company Telefonica said Friday it lost euro429 million ($584 million) in the third quarter, its first quarterly loss in nine years, after hefty costs laying off workers in Spain’s moribund economy.

It compared to profits of euro5.1 billion in the same period of 2010, although that figure included a one-off gain from Telefonica’s takeover of Brazilian cell phone company Vivo.

Telefonica said the third quarter 2011 results included costs of euro1.87 billion in compensation for workers being laid off in Spain.

Revenue in Spain for the quarter was down 8.8 percent. But total revenue for the quarter _ in Spain and all the countries where Telefonica operates _ was up 3.7 percent to euro15.8 billion no fax payday advances.

The poor performance in Spain was offset by a 17.5 percent rise in revenue in Latin America.

Telefonica is eliminating up to 6,500 jobs, or close to 20 percent of its work force, in Spain through 2013 to reduce costs.

Telefonica’s profits for the first nine months of the year were down 69 percent to euro2.73 billion, again in part because of redundancy costs. Revenue for the January-September period rose 5.4 percent.

Telefonica shares were practically unchanged at euro13.9 in early trading.

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A former St. Peters vehicle-service contract business and its owner have settled with the state over alleged violations of the Missouri Merchandising Practices Act, Attorney General Chris Koster said today.

Vehicle Services, which no longer is in business, marketed what appeared to be “extended auto warranties” through the mail, the internet and by telephone, Koster said. The warranties actually were service contracts or automotive additives, he said.

The company and its owner, Steven Chapa, agreed to pay the state $25,000 in restitution and civil penalties for the costs of the investigation, said Nanci Gonder, a spokeswoman for Koster’s office.

Chapa could not be reached immediately for comment.

Gonder said the office has been contacting customers who filed complaints in an effort to help them get restitution.

Koster’s office received 85 complaints about the company, she said.

Koster said many customers were led to believe their current vehicle warranties were about to expire, and they had to act immediately or lose the chance to buy an extended warranty payday lenders. Many weren’t told Vehicle Serivces wasn’t affiliated with their dealership or manufacturer, he said.

He said customers who bought service contracts by telephone often learned later that the coverage was limited. Those who asked for a cancellation or refund when they discovered the provider wouldn’t pay a claim often were denied a refund or made to go to great lengths to get part of their money back, he said.

Gonder said anyone who is seeking restitution or who has complaints about businesses selling extended motor vehicle service contracts can contact the Attorney General’s Office through its website or by calling the consumer protection hotline at 1-800-392-8222.

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The echo boomers are finally moving out of their parents’ homes and expected to be the biggest rush of renters to hit Toronto’s housing market since the early 1990s, according to projections by the Canada Mortgage and Housing Corp.

But they’re likely to be renting for quite a while — much longer than their parents, thanks to a job market that remains tentative and offers far less of the stable, full-time employment that made their parents the most affluent generation of all time.

That boom in rental demand is already being felt with bidding wars for prime units and vacancy rates for apartments and rental condos hovering at 1.6 per cent, the lowest vacancy rate in a decade, says Shaun Hildebrand, CMHC’s senior market analyst for the GTA.

That vacancy rate has been declining steadily since 2004 when it stood at 4.3 per cent.

There are currently 325,000 rental apartments across the GTA, says Hildebrand, but just 1,500 new units are being added each year, most of them high-end rentals aimed more at affluent, downsizing baby boomers.

Even the unprecedented condo boom across the GTA, much of it driven by investors, many of whom are putting up their units for rent, is having a hard time keeping up with demand, says Hildebrand.

That is already playing out in bidding wars for brand new and two-bedroom units, with some would-be renters offering to pay more per month or offering up to six months’ rent in advance.

The GTA has seen such an unprecedented building boom the last few years that we now have almost as many condos as rental apartments.

The total number of condos now stands at 300,000 with another 80,000 under development and 60,000 more approved but yet to start, Hildebrand told bankers, developers and housing market watchers Thursday during its annual 2012 Housing Outlook Conference at the Metro Toronto Convention Centre.

But there are now 875,000 echo boomers between the ages of 25 and 35 across the GTA, accounting for about 18 per cent of the population.

With the average price of a GTA home expected to hit $469,700 next year — in Toronto that’s closer to $530,000 — and condos averaging $500 a square foot, echo boomers’ dream of owning a home may be just that.

A dream.

Hildebrand expects to see growing demand for basement apartments, both as an affordable place to live for those heading into their first jobs, and for homeowners struggling to pay high mortgages.

Already the shifting demographics are playing out in increased demand for townhouses and row houses which offer all the amenities of traditional detached homes, but at more affordable prices and often on infill lots closer to the downtown core, he said.

“All eyes are on the (Toronto) condo market,” Hildebrand told the crowd, because of a “healthy level of fear” that this unprecedented boom is on the verge of bust.

Instead, he predicts the condo market — which now accounts for 25 per cent of all MLS sales — will soon start to “self correct.”

New condo prices have escalated to the point where rents can’t keep pace with costs, and that should ease demand among investors to more realistic levels, he said.

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