Microsoft adds complaint to EU antitrust analysis of Google

An antitrust investigation of Google by the European Union started late last year. Google, its Euro rivals say, is taking steps that result in lower search rankings for its competitors and other techniques that limit their advertising competitiveness. Microsoft took a stand with its Euro subsidiaries Thurs and filed a criticism of its own accusing Google of anti-competitive techniques. Source for this article – Microsoft adds complaint to EU antitrust investigation of Google by MoneyBlogNewz.

Complaint Microsoft issued against Google

In Europe, Google may have to deal with the antitrust complaint that Microsoft filed saying that Google is limiting access to data needed with YouTube and Google services like this to be able to hurt European customers. Currently, Google is already being investigated by the European Union Competition Commission for antitrust problems. Adding Microsoft could really help the issue. Microsoft's search engine Bing has been unable to get much attention in Europe while the Internet search industry is about 95 percent under Google's thumb in Europe. There have, in the past, been a lot of antitrust complaints that Google has been used to dealing with about competition as it is Europe's center place for advertisers to go. Billions went to the European Commission from Microsoft for Windows antitrust investigations. Now, Microsoft has decided to get Google to the same problem.

Obvious fights between Google and Bing

Microsoft’s European antitrust complaint against Google is about background technologies such as “application programming interfaces” that unlock access to Google products and services. The Microsoft complaint states that Google makes it impossible for Bing and other search engines to have access to YouTube due to the application programming interfaces used. Google then becomes the primary search engine used. The Windows Phones cannot work with YouTube very well due to Google's programming, Microsoft suggests; which is not a problem on the iPhone or Android. Microsoft suspects that Windows Phones are getting the short shrift due to Bing because Apple doesn’t compete with Google in the search engine market. Microsoft also alleges that Google blocks some advertisers from access to data they need to optimize advertising on rival platforms, allegations already being investigated by the EU antitrust probe.

Revenues drop for Google in Europe possibly

The EU Commission spokesman said that Google can speak. Its side of the story must also be heard. In order to keep a consistency with Google ads, Google said the third-party software restraint is necessary. Advertisers are allowed to access any data that is available; there are no restraints. Microsoft is involved. This means the stakes are much higher. There might be a huge fine Google would have to face. This might be up to 10 percent of global revenues in one year, which last year was $29 billion. It could also be forced to change the way it does business in Europe. The EU commission said that Google would be able to defend itself and stay away from a fine by changing its business in Europe before Microsoft got involved.

Citations

Associated Press

finance.yahoo.com/news/Microsoft-throws-weight-apf-1337664829.html?x=0&sec=topStories&pos=6&asset=&ccode=

Los Angeles Times

latimesblogs.latimes.com/technology/2011/03/microsoft-files-european-antitrust-complaint-against-google.html

New York Times

nytimes.com/2011/04/01/technology/01google.html?src=busln

Stay away from credit at your peril

Several consumers seeking to set up a credit history are denied credit because they don’t have enough credit to start with. And even a person with a high FICO score could be denied if the overall credit score bears too few records of active credit. Source of article – Understanding the down side of avoiding credit by MoneyBlogNewz.

Don't be super-responsible ever

Everyone who is super responsible with credit may not do also off as they think. Paying off student loans right out of the gate, avoiding excessive use of credit and generally living debt-free will save money in the long term, but some creditors don’t view the credit-phobic kindly. A credit score can also be hurt by several credit inquiries for those who want to use credit however have lots of choices.

Having little credit history and being a serial credit card applicant can impact credit negatively, claims Rod Griffin, public education director for the credit bureau Experian. You will need to your creditors that you can manage many credit sources at one time, even mortgage lenders like it when this takes place.

Active credit necessary with paid off loans

Paying off loans early isn't a bad thing, according to Griffin. You will have good marks stay for about 10 years on a FICO report. At the same time, only seven years are needed to get rid of negative marks. Paying down loans with excessive zeal can lead a customer to the "No, thank you" zone with some potential creditors, however. Some creditors will say no to a credit application just because there are not three accounts open and active for about 24 months.

Charge cards are necessary some of the time

Don't take on a lot of credit cards if you’re a college student that is just beginning to build credit. Having one or two credit cards can help a student build credit if it’s responsibly done.

But the weather may be changing, says Griffin. The ability a young person has to building credit is overlooked because of the new Credit card Act the Obama administration began. Experts say there is less of a possibility that students can build credit since access to college students is taken away.

Do not just use money

With just cash, you won't have any debt. Additionally you won't have any credit though. Maintain active credit accounts where you pay more than the minimum each month, and look to such goods as personal financing and no credit check loans when emergency funding is necessary. While such goods don’t traditionally report to the credit agencies – and hence do not provide a possibility to record optimistic marks on a credit history – they will enable you to keep away from building up excessive revolving debt on credit cards.

Information from

MSN

money.msn.com/credit-rating/raise-your-credit-score-to-740-weston.aspx

Yahoo

finance.yahoo.com/banking-budgeting/article/112152/dangers-of-avoiding-credit?mod=series-m-article-c

Understanding the Credit card Act

youtube.com/watch?v=UbIDOZz6CPw

Dodd-Frank will cost almost $3 billion, states Government Accountability Office

What will the cost of customer financial reform under the Dodd-Frank Wall Street Reform Act be? With any governmental undertaking, there’s a financial burden working class individuals shoulder. In accordance with a Government Accountability Office (GAO) report, that burden will amount to as much as $2.9 billion over five years, the price of Wall Street reform.

Working class individuals don’t always determine financial stability

Taxpayers feel like they’re getting money taken left and right. The Wall Street Journal reports the Dodd-Frank Act will be able to function without taxpayer subsidization. There are 11 agencies that are there to enforce the Dodd-Frank law. Six of them are already funded for probably the most part. Congressional appropriations cover three others while the Federal reserve will give money to the Consumer Financial Protection Bureau which money comes, not from taxpayers, however from revenues for instance assessments.

Paying out to the government from banks

Banks, credit unions, investment houses and short term installment loan outlets are slated to pay the U.S. government more to operate under Dodd-Frank laws. This has elevated concerns within the financial community that competitiveness will be hampered by over-regulation, and House Republicans have taken up that torch, using GAO report findings to support the idea that Dodd-Frank is too much for a slowly recovering economy to bear.

The GOP will be talking about the first year of the Dodd-Frank Wall Street Reform Act as it will cost about $975 million to support all 11 agencies. The five year tag is closer to $2.9 billion. Moreover, hiring 2,600 full-time workers (including 1,225 for the Consumer Financial Protection Bureau) will produce significant cost.

GAO report shows even more

The Journal explains that these things were noted in the GOP presentation to the House Financial services Subcommittee on Oversight and Investigations:

• A Fed estimate from earlier this year projected a cost of $77.5 million to pay 290 full-time staff dedicate to Dodd-Frank implementation. The Financial Market Infrastructures Oversight, the Office of Financial stability Policy and Research and the Financial Market Infrastructures Risk Analytics have all been offices created. These three offices are necessary if the Dodd-Frank laws are to run correctly.
• The Financial stability Oversight council will, starting in the fiscal year for 2012, have to pay $7.9 million for a full time staff of seven.
• About $74.5 million will be used to pay the 135 full time staff for the Office of Financial Research in the fiscal 2010. These employees are there to make sure the Dodd-Frank duties are done.

Information from

Senate

banking.senate.gov/public/_files/070110_Dodd_Frank_Wall_Street_Reform_comprehensive_summary_Final.pdf

Government Accountability Office

gao.gov/

Wall Street Journal

blogs.wsj.com/washwire/2011/03/28/dodd-frank-2-9-billion-over-5-years-gao-says/

GOP on what Dodd-Frank might cost small businesses

youtube.com/watch?v=6iB2fWk7Rho

Bitter winter froze demand causing new home sales to drop

The bitter winter chilled demand for newly built homes, causing new home sales to sink like a stone. The already struggling housing market received another blow, as new home sales dropped by almost 17 %. Skittish lending conditions are given partial credit. Overall conditions have not been very conducive to recovery in the housing market.

Less individuals considering new houses

A decrease in the sale and construction of new homes in the last few months has appeared. Reuters attributes this to the cold weather, less of a demand and the issues with foreclosures.

In February, there was a 27 percent decrease in new housing starts. There was a decrease in the annual rate of sales of new homes from 300,000 to 250,000. From January to February, there was a 16.9 percent decrease in new home sales. There was a 28 percent decrease in new home sales since February 2010. That year's data shows those figures.

The delay in construction most likely did have to do with winder conditions. Nevertheless, the decrease in existing home sales was likely as a result of weak demand. Nobody wants homes while banks have to lend to make it take place. Banks may be unwilling to write installment loans for these homes.

Head real estate economist blasts sluggish lending

The NAR site showed that chief economist for the National Association of Realtors, Lawrence Yun, said that if "mortgage credit conditions would return to normal," the sales would go up which is the issue with "unnecessarily tight credit" and loan companies.

Ron Phipps, president of the NAR, echoed Yun by saying that though rates of interest for mortgages were certainly lower than several short term loans, lamenting that "credit remains a challenge.". Purchasing a new home is something hard to justify. This is especially true when the home costs are low nevertheless and not going up. There was a median price for existing homes of $156,100 at the end of February. This compares to the new home median price of $202,100.

Glut of foreclosures

The housing market is currently riddled with foreclosed properties, and the rich are having a field day gobbling them up. Cash sales made up 33 percent of all home sales in February, and 39 percent of all homes sold were distressed properties, in accordance with Bloomberg.

The future of housing does not look good, in accordance with Federal Reserve Chairman Ben Bernanke. He said that mortgages were "difficult to obtain" and "there's no demand for construction" right now.

Purchasing a house is only something few will be able to do. This is for everyone with credit or money to do so. However, those that try to become homeowners will likely have a difficult time. Until credit gets better, more than likely the housing industry will struggle.

Information from

Reuters

reuters.com/article/2011/03/23/us-usa-economy-housing-idUSTRE72F3XG20110323?pageNumber=1

Bloomberg

bloomberg.com/news/2011-03-21/u-s-february-existing-home-sales-fall-to-4-88-million-rate.html

National Association of Realtors

realtor.org/press_room/news_releases/2011/03/feb_decline

Maryland challenges sovereign immunity in tribal lending case

Numerous state laws apply to United States short term lenders. When a legitimate company operates outside the bounds of state law – such as with Native American tribal lending – state laws traditionally have not applied. In accordance with the Center for Public Integrity, such a legal divide has resulted in a legal clash between Maryland regulators and Western Sky Financial, a personal loans provider that claims affiliation with the Cheyenne River Sioux Tribe.

Western Sky claims sovereign immunity is there

Owner of Western Sky Financial, Martin Webb, has the exact same opinion. He says the company is saved by its short term loans activity amongst Native American tribes from laws in the state. When trying to make a stricter personal unsecured loan rule in Maryland, the state is arguing this statement in court. The argument Maryland has is that tribal immunity is being used by Native American lenders. Customers throughout the nation are able to get the short term loans though. All native personal loan companies can be affected by the ruling. The CFPB has to make this decision.

Western Sky in Maryland supposedly breaks laws

The Western Sky Financial loans issue has a right and a wrong according to Anne Norton as financial regulation deputy commissioner in Maryland:

"I don't think there's a lot of gray area in terms of what is or is not permitted," Norton said. "Under our reading of both how tribal immunity is interpreted and how it's been applied by the Supreme Court, we feel that these are loans that violate Maryland law."

There can be a 33 percent Annual Percentage Rate cap on an unpaid balance with Maryland law. Right now, Maryland short term loan regulation doesn’t apply to Western Sky Financial as it has, instead of a Maryland license, sovereign immunity as it is part of the Cheyenne River Sioux Tribe operating out of South Dakota and online. APRs charged for short term unsecured loans vary by state, but are generally at least three times higher than the Maryland cap.

The Indian Commerce Clause is there

Webb’s attorney argues that under the Indian Commerce Clause of the U.S. Constitution, tribes are the ones responsible for regulating consensual relationships undertaken between non-members and members of a tribe. Webb claims that he doesn't have to recognize any lending laws outside of the tribe as he claims to be a Cheyenne River Sioux Tribe member.

Norton claims that Western Sky Financial should not be protected because it is not an arm of the tribe even though Maryland does follow Cheyenne River Sioux Tribe sovereign immunity rules.

It remains to be seen on which side of the argument a court will rule. There are a lot of times in which the court tends to side with tribes though which makes several suspect Western Sky Financial will win. For example, there is the Wall Street Journal case of casino lending with the Lac du Flambeau Band of Lake Superior Chippewa.

Citations

Public Integrity

publicintegrity.org/blog/entry/3052/

Wall Street Journal

online.wsj.com/article/SB10001424052748703565804575238621598513454.html

Western Sky Financial

westernsky.com/

Western Sky Financial: No collateral required

youtube.com/watch?v=183C9NM4XMg

Trend of increasing food costs anticipated to proceed

Americans are noticing a significant rise in food prices recently. Greater competition globally for agricultural commodities is trickling down to U.S. customers in the form of more expensive groceries.

Problem with food costs

Food inflation in January rose 1.8 percent year-over-year, according to the U.S. Consumer Cost Index. With the increasing fuel costs and bad weather, the price for many goods is going up. The need is going up right along with it. There was a huge impact on meat costs. This was where these factors changed cost the most. In January, corn prices went to a 30 month high since supplies are going down. Because corn is used more for livestock feed rather than consumed directly, the price of livestock is rising. Meat is wanted in more developing countries. In fact, China and India are both requesting more meat in their meals. U.S. beef exports have risen nearly 1.5 billion pounds in the past five years.

Average U.S. food costs

Other countries are beginning to bid against U.S. consumers. The supply of meat is limited. There has been an increase in pork prices of 12 percent, beef 6 percent and poultry 2 percent from a year ago. The grocery store costs are increasing in other products too since commodity costs are increasing. There has been a huge increase in bread, milk and egg costs according to January CPI data. Since the coffee bean prices went up 77 percent last year, coffee has started becoming more expensive while cereal isn't as cheap with increasing wheat costs. At the food store in 2011, pork costs are expected to raise the most, more than 10 percent. Beef is expected to go up as well. It is supposed to have a 7 percent increase. U.S. consumers will be eating more chicken, which is expected to rise in price a little more than 5 percent.

Perspective for cost of food this year

Overall, U.S. food prices are expected to rise 3 percent to 4 percent this year, according to the U.S. Department of Agriculture. U.S. lawmakers are trying to act like the food inflation doesn't affect Americans. Last week Federal Reserve Chairman Ben Bernanke told the Senate Banking Committee that effect of food inflation on consumers will be “temporary and relatively modest.”. The Fed doesn’t factor in food and energy costs when it calculates inflation, but more than 12 percent of after-tax income in U.S. households is now spent on fuel and food. Consumers aren't happy with the increases in costs. This is because unemployment is still extremely high while those who are employed are not having an increase in salary anytime soon. About $33,000 a year was the 2008 average made by a taxpayer. Two decades ago, it was not that bad.

Information from

CNN Money

money.cnn.com/2011/03/08/news/economy/food_prices/index.htm” target=”_blank

Seeking Alpha

seekingalpha.com/article/256992-rising-prices-are-hitting-consumers-harder-than-the-fed-will-admit” target=”_blank

Agrimoney.com

agrimoney.com/news/meat—and-oil—to-lead-climb-in-us-food-prices–2903.html” target=”_blank

Brand new jobs statement indicates unemployment dropped in Feb.

Unemployment has declined by an unimpressive percentage in the recently issued Feb. jobs report. Joblessness dropped 0.1 % through February to 8.9 %. Joblessness has dropped for the past three months in a row. Post resource – February jobs report shows decline in unemployment by MoneyBlogNewz.

Companies incorporating jobs

There was a small increase in Feb. in the number of jobs according to the Department of Labor's Feb. jobs statement. CNN reports that from Jan to Feb., the unemployment went down to 8.9 % from 9 percent, a 0.1 percent decrease. There were a lot more jobs included to the sector improving quite a bit from January. About 192,000 jobs were added. In Jan, employers included 63,000 jobs to the overall economy, however January was slower than Feb. as winter weather brought several areas to a near standstill, according to the LA Times. About 50,000 new jobs weren't reported in the Dec. and Jan jobs states. This was what the Labor Department said with a revised report.

Decreasing joblessness shown for a 3rd sequential month

The unemployment rate has declined for the 3rd month in a row. Throughout the recession, there have been drops and gains in the unemployment pace over and over. This seems different though considering there was almost an entire percentage pace drop in unemployment from December to Feb.. There were only 368,000 unemployment claims. That is a three year low. Much more than 9 million people are claiming joblessness benefits, in accordance with Forbes. The economy is projected by the Federal Reserve to grow between 3.5 and 4 percent during 2011, though increasing gas prices are sure to trigger some hiccups over the next few months.

Restoration can be hard with government spending reductions

CBS states that reducing the federal budget is a goal that many Republicans have in mind although economists are worried that might hurt the joblessness rate some more. Moody's Analytics' Mark Zandi thinks that a $61 billion cut from the federal spending budget, as planned, could end up a job loss for 700,000 people. This projection was mirrored fairly closely by Goldman Sachs. You should remember that Zandi claimed that the stimulus spending would allow joblessness to stay under 8 percent while being one of probably the most supportive people of the stimulus packages.

Articles cited

CNN

cnn.com/2011/03/04/news/economy/february_jobs_report/

Los Angeles Times

latimesblogs.latimes.com/money_co/2011/03/february-unemployment-jobs-economy-recovery-obama.html

Forbes

blogs.forbes.com/heatherstruck/2011/03/04/jobs-report-at-high-end-of-expectations-unemployment-drops-to-8-9/

CBS News

cbsnews.com/8301-503544_162-20037435-503544.html