All Blog Posts from Econwatch

Fewer Americans say they'll be tightening their financial belts during the holiday season this year, a private study shows.

The Consumer Federation of American and the Credit Union National Association released the results of a joint survey forecasting the holiday shopping season. Among the chief findings: 43 percent of consumers say they'll cut back on holiday spending. That's better than the 55 percent who said the same thing a year ago amid the throes of a massive national recession.

The improved data, however, still lags behind 2000 to 2007 figures.

Americans are still worried about their financial situations – 36 percent say they're worse off this year, 19 percent say they're better off and 44 percent say their situations are about the same.

But fewer consumers are worried about meeting their monthly debt payments – 24 percent compared with 28 percent a year ago.

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The CFA and CUNA also offer some common-sense advice to avoid breaking the bank during the holidays.

Among the tips:

• Prepare a budget and make a price list of the gifts you plan to buy.

• Shop around for deals using the Internet or even the phone.

• Avoid overloading on debt. Pay cash when able, but if you use a credit card, pay of the debt as quickly as possible.

• Shop for next year's holidays right after this year's are over. Great bargains are to be had.

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That knock on the door may be Microsoft, wanting to de-index you — that is, if you are a media organization whose news content is being searched and indexed by Google.

The Financial Times reports that Microsoft has had discussions with News Corp. over the possibility of paying the media company to "de-index" its news Web sites from Google.

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Attention Mets fans: Feeling down after watching a Yankees-Phillies World Series? Need a little boost to get through a long offseason? How does owning Bernard Madoff's tattered but shiny plush Mets jacket sound? With "Madoff" sewn on the back, it's sure to be a hit from Wall Street to Citi Field.

The jacket is one of more than 100 seized items once belonging to the famous Ponzi schemer and his wife Ruth Madoff set to be auctioned to the public Saturday in New York. Other items include Madoff's Rolex watch, Mrs. Madoff's jewelry and furs, and a decoy duck.

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A year after a Wal-Mart worker was trampled to death by a massive crowd of bargain-hunting shoppers, the retail giant is implementing new crowd control measures to handle the crush that typically accompanies the day after Thanksgiving – Black Friday.

According to a New York Times report Wednesday, Wal-Mart is taking a page from experts who have managed crowds at the Super Bowl and Olympics. The revamped effort stems from the death of Jdimytai Damour, a temporary store worker crushed by throngs of customers in Valley Stream, N.Y.

Among the measures:

• Most Wal-Mart stores will stay open from Thanksgiving night into Black Friday. In the past, the store closed Thanksgiving and opened its doors in the early morning hours Friday, leading to a huge crowd buildup outside its doors. The store hopes the extra hours will ease the crowd flow.

• To avoid the mad dash toward popular items, the store will have customers line up at product displays and treat them on a first come, first serve basis.

• Since Wal-Mart stores only have one entrance, making crowd control more difficult, workers will be stationed at the front of the store directing customers to the appropriate places.

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The will of Florida businessman Jeffry Picower, an associate of Bernard Madoff who was found dead in Palm Beach swimming pool last month, is expected to be filed today — and is bound to set off a tug of war over his assets, estimated to be far in excess of $1 billion.

As reported by Diana Henriques of The New York Times, Picower's estate (most of which is to go to charity) will be targeted by the trustee charged with reclaiming the estimated $21 billion in losses suffered by investors in Madoff's massive Ponzi scheme.

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With gold prices surging comes a new surge in gold mining in the far north. The Anchorage Daily News is reporting that gold production in Alaska has reached its highest levels since the rush of a century ago, shortly after gold was discovered in the Yukon.

ADN's Elizabeth Bluemink writes that, with gold setting record prices (it hit $1,095 an ounce on Friday), investors are putting more money in to get more money out.

Alaska currently accounts for about 10% of the U.S. gold production, but that could soon change: A new mine near Juneau, set to open next year, will be the state's third largest, and two smaller mines may reopen. And two proposed mega-projects in the state's southwest, if approved, could turn Alaska into one of the world's leading producers of gold.

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Last year's outbreaks of H1N1 virus hit schools hard, shutting many as transmission of the virus among students was confirmed or suspected.

Betsy McKay and Dana Mattioli of The Wall Street Journal write today about how businesses are increasingly worried that outbreaks of swine flu among their workforce may stall their operations — and are taking steps to limit or prevent the spread of the virus among employees.

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The H1N1 (swine) flu might not just be harmful to young children or people suffering from chronic illnesses. Companies — or at least those accused of capitalizing on fears of the pandemic flu — might also suffer from bouts of shivers and fatigue during the final quarter of the year.

The Kellogg Company finds itself as one of those businesses. USA Today reported Monday that critics accuse the company of attempting to increase sales of its cereals during flu season by promoting them as a way to boost children's immune systems.

Compared to other claims made on cereal boxes, "this one belongs in the hall of fame," the director of Yale University's Rudd Center for Food Policy and Obesity told the newspaper.

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A Saudi family feud is being felt by banks around the world, from New York to the Cayman Islands.

It also offers a glimpse into the clannish nature of business in a region dominated by oil markets.

According to a Wall Street Journal report ($) Thursday, the Gosaibi clan – one of the richest in Saudi Arabia – is beset by multibillion-dollar debt that has sent its businesses into default and caused deep familial rifts.

The problems, Gosaibi family members say, stem from Ma'an al Sanea, a former fighter pilot from Kuwait who married into the family and eventually ran the financial arm of the clan's expansive business empire - Ahmad Hamad al Gosaibi & Bros., or Ahab.

Aside from his involvement in Ahab, Sanea also formed his own company, Saad Group. The two entities have borrowed $15 billion from 110 local and global banks over the last several years. Some of those banks have already written off hundreds of millions in bad loans while others, including Deutsche Bank AG, are suing Ahab subsidiaries and Saad group in New York, London, Dubai and the Cayman Islands, according to the report.

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Galleon Group, whose co-founder is allegedly at the center of an insider trading ring, is winding down its hedge funds, according to a Wall Street Journal report ($) Wednesday.

Billionaire money manager Raj Rajaratnam, who was arrested last week along with five others on charges of insider trading, informed employees and investors by letter of plans to close out the firm's hedge funds.

"I have decided that it is now in the best interest of our investors and employees to conduct an orderly wind down of Galleon's funds while we explore various alternatives for our business," the Journal quotes Rajaratnam as writing.

According to the report, one possibility is selling Galleon to another company.

The firm has reportedly started selling off some of its positions to raise cash in preparation for a spate of investors redemptions. No cash can be withdrawn, however, before Jan. 1, 2010 according to Galleon's redemption rules.

In the letter, Rajaratnam again denied the insider trading charges.

Galleon's hedge funds have enjoyed double-digit returns this year. An orderly wind down would likely prevent major disruptions to stocks and markets, the report notes.

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