Sabtu, 09 Februari 2013

Dell's $24.4B deal opposed by major stockholder

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The Associated Press , Staff   –   6 hrs.

ROUND ROCK, Texas - Dell's largest stockholder, aside from the struggling personal computer maker's CEO and founder, is trying to thwart the company's plans to sell itself for $24.4 billion.

The opposition mounted Friday by Southeastern Asset Management Inc. could complicate Dell Inc.'s efforts to end its 25-year history as a public company. Southeastern Asset owns an 8.5 percent stake in Dell.

Under a plan announced earlier this week, Dell will pay existing stockholders $13.65 per share. The deal would leave the Round Rock, Texas, company under the control of founder and CEO Michael Dell and investment firm Silver Lake.

In a letter to Dell's board, Southeastern CEO O. Mason Hawkins dismissed Dell's proposed sale price as "woefully inadequate," contending that the company is worth at least $24 per share.

Dell declined to comment.



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Americans are tapping into home equity again

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Diana Olick , CNBC.com   –   11 hrs.

Nearly 11 million borrowers are underwater on their mortgages, owing more than their homes are worth, according to CoreLogic, and yet home equity lines of credit are suddenly on the rise again.

During the housing boom of the last decade Americans withdrew over $1 trillion in home equity. They did it through cash-out refinances, home equity loans, and home equity lines of credit. The latter allowed them to use their homes like an ATM. They spent the money on cars, televisions, vacations and fancy home upgrades. It was seemingly endless equity, until suddenly that equity was gone.

"Home prices are definitely a factor" in the recent rise home equity lines of credit, said Brad Blackwell, an executive with Wells Fargo Home Mortgage. "As they increase, people have more available equity."

(Read More: New Housing Fears: Home Prices Are Rising Too.)

Blackwell also pointed to increased consumer confidence, meaning borrowers now feel better about their ability to repay these loans. Both factors fueled a 19 percent jump in originations of home equity lines of credit at the end of last year, according to Equifax. In 2008, as housing was crashing, home equity line originations dropped 55 percent.

"Nationally we've seen a 31 percent increase in HELOC's year-over-year," said a spokesperson from JPMorgan Chase.

With home prices up 8 percent year-over-year in December, according to the latest reading from CoreLogic, homeowners are regaining home equity at a fast clip—1.4 million borrowers rose above water on their mortgages through the end of September. That number likely increased as price appreciation accelerated toward the end of the year.

Does this mean a return to the reckless equity withdrawals of the housing bubble? Likely not.

"I would guess that most of the current home equity line borrowing is quite prudent. We know that it is being very conservatively underwritten with plenty of equity," said Guy Cecala, editor of Inside Mortgage Finance.

(Read More: Housing Already Shows Signs of a New Bubble.)

While it is too early to say exactly what borrowers are spending this new cash on, anecdotal evidence shows borrowers are largely sinking the money back into their homes.

"We are seeing more responsible uses today, like home improvements, education expenses or other major expenses that would be a more responsible use of a customer's home equity," Blackwell said.

The average home equity line in October of 2012 was just below $90,000 compared to October 2006, when lines averaged just over $100,000, according to Equifax.

Despite the recent surge, volume is still down dramatically from the height of the housing boom. Borrowers in 2012 took out a collective $7.2 billion in home equity lines through last October, compared to just over $28 billion in 2006.

(Read More: Why Home Builders Won't Drop New Home Prices,)

The numbers are expected to go up in 2013, not just because home prices are rising, but because interest rates are rising. With higher rates, borrowers will not want to give up their rock-bottom fixed rates to do cash-out refinances; rather, they will turn to home equity lines instead. While these lines usually carry variable rates, banks are now offering new products with fixed rates. Wells Fargo recently promoted a line of credit where a portion of the loan is fixed for up to three years.

"We clearly want to lend, and we want to lend to the types of needs that our customers have," Blackwell added.

—By CNBC's Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

Questions? Comments? RealtyCheck@cnbc.com



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Male caregivers face gender bias at work

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As a growing number of men adopt the role of caregiver to their children or elderly parents, they’re fighting outdated gender norms in the workplace — a battle experts say will eventually usher in changes that benefit both male and female employees.

“Men who do take the time as caregivers are more likely to be seen as less committed to work because they’re violating gender norms,” said Kelli K. Garcia, a former fellow at O’Neill Institute for National and Global Health Law and current adjunct professor at the Georgetown University Law Center.

“The law does in this country does protect the ability to take leave” for both men and women, said Eileen Appelbaum, senior economist at the Center for Economic and Policy Research. “I think a lot of companies don’t realize that,” she said.

Joan Williams, director of the Center for WorkLife Law at the University of California — Hastings, said both men and women can be subject to what she termed a “flexibility stigma.” It can be an issue for women seeking a part-time or flex-time schedule, but for men, “It’s typically triggered if they even try to take leave,” she said.

Demographic factors are behind the increasing number of men taking on the role of caregiver. The recession relegated many men, especially young men, to periods of unemployment or underemployment. At the same time, women have taken on more of their families’ financial obligations. A Prudential Financial study published last year found that 53 percent of women are the primary breadwinner, and 22 percent make more money than their spouse. “Among female breadwinners, nearly a third say they earn more than their spouse as a direct result of the challenging economy,” the report said.

There also has been a shift in cultural norms that’s propelled men into caregiving roles, said Williams. “A group of young men is really drawing a line in the sand and saying ‘I don’t want to do it the way my father’s generation did it,’” she said. “They’re caught between that ideal and workplaces that haven’t caught up.”

“As women have learned, you have to assert the fact that this is not a ‘choice,’” Appelbaum said. It appears that more of them are doing just that: roughly 12 percent of the lawsuits filed alleging family responsibilities discrimination in the workplace are filed by men.

The experts think this number is bound to grow. According to a study published in 2009 by the National Alliance for Caregiving in collaboration with the AARP, nearly 30 percent of Americans perform at least some caregiving tasks for relatives, and about one-third of caregivers are men. “I think it’s clear that the demands on men as well as women are going to increase in terms of family care,” Appelbaum said.

In California, which began mandating paid family leave in 2004, the effect on men’s participation in caregiving is measurable, Appelbaum said. The number of men taking leave to care for a relative rose slightly between 2004 and 2012, from 30 percent to 33 percent, but the number taking time off after the birth of a child nearly doubled, climbing from 17 percent to 29 percent in that same time. “When we talk to HR managers about this... they told us that once the leaves were paid, it became more acceptable,” Appelbaum said.

Advocates for more flexible workplaces say men’s involvement ultimately will have a snowball effect that will lead to positive change. “The real advantage of having men taking leave is that when the issue of leave and the issue of caregiving is not just a women’s issue, you’re more likely to get good policies and not get gender-based judgments,” Garcia said.

“The more that men start taking leave and it becomes normalized and expected, then those judgments are going to change,” she said. “We’re at a moment where... we have this opportunity to change the workplace culture." 



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Zombies put spotlight on makeup artists

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Michelle V. Rafter , NBC News contributor   –   1 hr.

Christina Kortum works with a lot of freaks.

Kortum is an assistant makeup artist on NBC's “Grimm,” the TV show about a Portland, Ore., police detective who hunts fairy-tale monsters living among the city’s more unassuming inhabitants.

Like a lot of other makeup artists these days, Kortum keeps busy making monster masks, bloodshot eyeballs and airbrushed tattoos.

For that she can thank the public’s apparently unquenchable appetite for modern fairy tales, teenage bloodsuckers, killer zombies and other supernatural TV shows and movies. “These fantasy shows are wonderful,” says Kortum, 40, who lives and works on the “Grimm” set in Portland. “It’s giving opportunities to people, and not just in Los Angeles but outside of Los Angeles, too.”

It’s fitting that in a week when the industry lost a legend - Stuart Freeborn, the creator of Yoda, Jabba the Hut and other “Star Wars” characters, died Thursday at 98 - the onslaught of fantastical TV shows and movies is adding to makeup artists’ clout.

It’s not bringing work to just anyone, says Susan Cabral-Ebert, president of IATSE Local 706, the Los Angeles chapter of the TV, film and theatrical makeup artists and hairstylists’ guild. “It’s creating a lot of work for the people who have very strong imaginations and great technical skills. I won’t say it’s creating more jobs. It’s getting more notoriety because they’re more visible characters,” Cabral-Ebert says.

Local 706 has 1,800 members, but makeup artists don’t have to be union members to get work, at least not on non-union productions. The federal Bureau of Labor Statistics lists 2,040 makeup artists working in TV, film and theater as of May 2011, but doesn’t tally self-employed workers, which is what most makeup artists are. Pay varies greatly, but average wages for makeup artists working in TV and movies are about $88,000 a year, according to the bureau.

Besides “Grimm,” TV dramas such as “Once Upon a Time,” “The Walking Dead” and the reality TV show “Face Off” are pulling makeup artists from behind the scenes into the spotlight. Now in its fourth season, the Syfy show pits special effects makeup specialists against each other to construct the week’s best aliens and demons or risk being sent packing along with their makeup brushes and foam Latex.

Making it in the business isn’t easy. A college degree isn’t required, but technical skills are. Today, that includes knowing how to apply makeup for the more detailed gaze of high-definition TV. “You can see every single detail, so you have to be better at your craft, and use new products,” says makeup artist Kristen Kiyan.

Knowing someone in the business who can show you the ropes helps, too. Kiyan, 40, switched from a finance career by doing makeup for weddings and special events. She worked her way up to doing beauty makeup for reality TV shows like “Top Chef” before a friend got her a job last year working on “Sons of Anarchy,” where Kiyan says the makeup crew airbrushes close to 100 fake tattoos on a daily basis. Now she splits her time between Los Angeles and New York. “It’s hard work, but when you love what you do, it’s worth it,” she says.

Kortum was a creative arts major in college and did makeup for haunted houses for fun, but wound up working in business and IT. Seven years ago, she was on a three-month sabbatical figuring out what to do with her life when a friend asked for help with makeup on a music video. That led to an indie film project, and then to more work. Though Kortum still occasionally works in IT, she currently spends the bulk of her time on the “Grimm” set helping head makeup effects artist Barney Burnam, who won an Oscar in 2010 for “Star Trek.”

Kortum also works on indie films, differentiating herself from some makeup artists by fabricating limbs and other body parts in her own studio. “If you need a custom create or tattoo, I can provide that,” she says. “I’ve chosen to be a generalist in a smaller market, which means I do a lot of different things. It fits the market I’m in.”



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Gas shortages as snowstorm gives Sandy flashbacks

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Martha C. White , NBC News contributor   –   10 hrs.

Batten down the hatches, it’s time for a stormy re-run.

Not of wind and heavy precipitation and threats of flooding, but of long lines at gas stations. Motorists across metro New York City descended in droves on area gas stations Thursday night and into Friday as the snow started falling.

“I went out initially at 8 a.m. and it was pure craziness,” said Kenneth R. Mall, a banker from Bayside, Queens. “I wasn’t going to wait an hour.”

Mall returned home and went back out to fill his tank around midnight, when he found that many pumps had already run dry. “I was kind of nervous because I was on empty... I just kept going until I found one,” he said. Mall said he passed nine gas stations that were all out of fuel before finally finding one with gas — and no line — about a 15-minute drive from his house.

“There are a lot of gas stations on Long Island running out of gas,” Alex Basini, a medical salesman from West Islip, said Friday morning. “People are a little panicked right now.”

'Whiteout': Potentially historic winter storm closes in on Northeast

Some people took to Twitter to bemoan long lines and advise others about outages on Friday, while others made fun of the mad rush for gas, pointing out that while hurricanes might be rare, blizzards aren’t uncommon in the Northeast.

“It’s just an overreaction. ... People are being overly cautious,” Island Park, Long Island car salesman Andy Boyes said via email. “If we do end up with massive power outages, gas may become an issue again, but I seriously doubt it.”

Still, local residents have lingering memories of the chaotic days and weeks following Superstorm Sandy, when limited availability of gasoline prompted New York City Mayor Michael Bloomberg and New Jersey Governor Chris Christie to impose rationing requiring motorists to buy gas on alternate days.

"Better safe than sorry," Old Bethpage resident Mark Breyer told NBC New York Thursday night, adding that he was without power for nearly two weeks as a result of Sandy.

The prospect of power outages increases demand, as homeowners with generators stock up on fuel to keep their electricity on. Mall said the customer next to him was filling up a portable container as well as his vehicle’s tank.

Vivencio S. Valencia, a physical therapist from Bergenfield, N.J., also said he saw other customers filling up portable containers during his half-hour wait for gas on Thursday night.

“I still had [a] half tank full but I was just worried once Nemo strikes,” he said via email. He said other stations he passed on his way home last night all had lines of 10 to 15 cars each.

These well-intended efforts to prepare can backfire, said Tom Kloza, chief oil analyst at Oil Price Information Service. “When everybody hears about gas lines, you get a little bit of collateral buying” by futures traders responding to the sudden spike in demand at the pump, he said. And the empty station tanks frustrating motorists Friday are entirely due to pre-storm panic-buying.

From CNBC: Storm sends fuel prices to fresh 2013 highs

Kloza told CNBC, “The threat of no electricity in pumping stations and no electricity in New England to keep fuel supply terminals open" is contributing slightly to a run-up in wholesale gas prices that began in mid-January and has added about 50 cents a gallon to the cost of fuel.

This storm, even if it clocks in on the severe side of forecasters’ estimates, doesn’t have the potential to do the kind of damage Sandy left behind. “Sandy knocked out almost every terminal in New York Harbor, in some cases for months, and knocked out some refineries for about a month,” Kloza said.

Aside from gas, the usual stockpiling of staple grocery items and batteries that tends to kick in before a storm hits seemed to be amplified, as well. Twitter users posted about long lines and stocking up on food and beverages.

“I actually went to the grocery store this morning and bought cold cuts, milk, eggs, all the essentials,” Basini said. He wasn’t the only one with that idea — he said the two cashiers working at that early hour were overwhelmed.



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Maybe long-term unemployment isn't the new normal

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Allison Linn , NBC News   –   16 hrs.

Long-term unemployment may not be the stubborn problem we thought it was.

Some economists say there are signs it could ease in the next few years as the economy improves, raising hopes for the millions of Americans who have spent months or even years looking for work.

“There have been some improvements in the job prospects for the long-term unemployed, and while it remains a very severe social and economic problem in this country, it’s not an intractable problem,” said Rob Valletta, research advisor with the Federal Reserve Bank of San Francisco. “There are glimmers of hope.”

About 4.7 million American jobseekers, or 38.1 percent of all unemployed people, had been out of work for six months or more in January, according to the Bureau of Labor Statistics. That’s more than four times the number of people who had been out of work that long five years ago, just as the Great Recession was getting under way.

The recession officially ended in June of 2009, but job growth has remained painfully slow during the weak economic recovery. That’s meant that people who lose a job are often in for an arduous task when it comes to landing a new position.

The median duration of unemployment is currently 16 weeks, according to the Bureau of Labor Statistics. That’s down from a high of more than 24 weeks in mid-2010, but still around double what it was in 2007.

The large number of people who are out of work for months or even years has caused some people to wonder whether long-term unemployed workers will ever find new jobs.

Related:Are you struggling in the suburbs? We want to hear from you.

But Valletta said his analysis of government data shows that as the job market slowly improved, even some who have been out of work for a long time finally landed a new position. The problem may have more to do with cyclical economic issues, therefore, and less to do with structural changes in the economy, such as a big shift in how many workers are needed in certain fields.

Valletta thinks that long-term unemployment will likely still be a problem for at least several more years. But, he doesn’t think it will last forever.

“It’s not a permanent problem,” he said.

Not everyone is so optimistic. Sylvia Allegretto, a research economist with the Institute for Research on Labor and Employment at UC Berkeley, noted that despite several years of tepid economy recovery, the job market has continued to grow at a snail’s pace. That means there are still millions fewer jobs out there for people who want a job.

The unemployment rate was at 7.9 percent in January, and 12.3 million people were unemployed and actively looking for a job.

With unemployment still at crisis levels, she argued that it may be premature to say whether the problem of long-term unemployment will work itself out as the labor market improves.

“It’s far too early in the labor market recovery to separate out whether this is now a structural problem,” she said.

Valletta’s research also delved into who has been out of work for a long time, part of an effort to understand whether the long-term unemployed are suffering from a structural problem that is keeping them from finding new work. His research found that workers of all walks of life, from construction workers to those in financial services, have had a tough time immediately finding a job.

“They’re a very diverse group, and what that suggests is that there’s not some lump of long-term unemployed out there that are different from all the other unemployed,” he said. “Instead, the long-term unemployed are long-term unemployed largely because of bad luck and a very hard labor market.”

Related: Long-term unemployed losing benefits as jobs picture improves



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Jumat, 08 Februari 2013

Poor in cages show dark side of Hong Kong boom

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Kelvin Chan , The Associated Press   –   1 day

HONG KONG - For many of the richest people in Hong Kong, one of Asia's wealthiest cities, home is a mansion with an expansive view from the heights of Victoria Peak. For some of the poorest, like Leung Cho-yin, home is a metal cage.

The 67-year-old former butcher pays 1,300 Hong Kong dollars ($167) a month for one of about a dozen wire mesh cages resembling rabbit hutches crammed into a dilapidated apartment in a gritty, working-class West Kowloon neighborhood.

The cages, stacked on top of each other, measure 1.5 square meters (16 square feet). To keep bedbugs away, Leung and his roommates put thin pads, bamboo mats, even old linoleum on their cages' wooden planks instead of mattresses.

"I've been bitten so much I'm used to it," said Leung, rolling up the sleeve of his oversized blue fleece jacket to reveal a red mark on his hand. "There's nothing you can do about it. I've got to live here. I've got to survive," he said as he let out a phlegmy cough.

Some 100,000 people in the former British colony live in what's known as inadequate housing, according to the Society for Community Organization, a social welfare group. The category also includes apartments subdivided into tiny cubicles or filled with coffin-sized wood and metal sleeping compartments as well as rooftop shacks. They're a grim counterpoint to the southern Chinese city's renowned material affluence.

Forced by skyrocketing housing prices to live in cramped, dirty and unsafe conditions, their plight also highlights one of the biggest headaches facing Hong Kong's unpopular Beijing-backed leader: growing public rage over the city's housing crisis.

Photoblog: Living in a cage - and paying rent too?

Leung Chun-ying took office as Hong Kong's chief executive in July pledging to provide more affordable housing in a bid to cool the anger. Home prices rose 23 percent in the first 10 months of 2012 and have doubled since bottoming out in 2008 during the global financial crisis, the International Monetary Fund said in a report last month. Rents have followed a similar trajectory.

The soaring costs are putting decent homes out of reach of a large portion of the population while stoking resentment of the government, which controls all land for development, and a coterie of wealthy property developers. Housing costs have been fuelled by easy credit thanks to ultralow interest rates that policymakers can't raise because the currency is pegged to the dollar. Money flooding in from mainland Chinese and foreign investors looking for higher returns has exacerbated the rise.

In his inaugural policy speech in January, the chief executive said the inability of the middle class to buy homes posed a threat to social stability and promised to make it a priority to tackle the housing shortage.

"Many families have to move into smaller or older flats, or even factory buildings," he said. "Cramped living space in cage homes, cubicle apartments and sub-divided flats has become the reluctant choice for tens of thousands of Hong Kong people," he said, as he unveiled plans to boost supply of public housing in the medium term from its current level of 15,000 apartments a year.

His comments mark a distinct shift from predecessor Donald Tsang, who ignored the problem. Legislators and activists, however, slammed Leung for a lack of measures to boost the supply in the short term. Some 210,000 people are on the waiting list for public housing, about double from 2006. About a third of Hong Kong's 7.1 million population lives in public rental flats. When apartments bought with government subsidies are included, the figure rises to nearly half.

Rising anger
Anger over housing prices is a common theme in increasingly frequent anti-government protests. Legislator Frederick Fung warns there will be more if the problem can't be solved. He compared the effect on the poor to a lab experiment.

"When we were in secondary school, we had some sort of experiment where we put many rats in a small box. They would bite each other," said Fung. "When living spaces are so congested, they would make people feel uneasy, desperate," and angry at the government, he said.

Leung, the cage dweller, had little faith that the government could do anything to change the situation of people like him.

"It's not whether I believe him or not, but they always talk this way. What hope is there?" said Leung, who has been living in cage homes since he stopped working at a market stall after losing part of a finger 20 years ago. With just a Grade 7 education, he was only able to find intermittent casual work. He hasn't applied for public housing because he doesn't want to leave his roommates to live alone and expects to spend the rest of his life living in a cage.

His only income is HK$4,000 ($515) in government assistance each month. After paying his rent, he's left with $2,700 ($350), or about HK$90 ($11.60) a day.

"It's impossible for me to save," said Leung, who never married and has no children to lean on for support.

Leung and his roommates, all of them single, elderly men, wash their clothes in a bucket. The bathroom facilities consist of two toilet stalls, one of them adjoining a squat toilet that doubles as a shower stall. There is no kitchen, just a small room with a sink. The hallway walls have turned brown with dirt accumulated over the years.

While cage homes, which sprang up in the 1950s to cater mostly to single men coming in from mainland China, are becoming rarer, other types of substandard housing such as cubicle apartments are growing as more families are pushed into poverty. Nearly 1.19 million people were living in poverty in the first half of last year, up from 1.15 million in 2011, according to the Hong Kong Council Of Social Services. There's no official poverty line but it's generally defined as half of the city's median income of HK$12,000 ($1,550) a month.

Awaiting public housing
Many poor residents have applied for public housing but face years of waiting. Nearly three-quarters of 500 low-income families questioned by Oxfam Hong Kong in a recent survey had been on the list for more than 4 years without being offered a flat.

Lee Tat-fong, is one of those waiting. The 63-year-old is hoping she and her two grandchildren can get out of the cubicle apartment they share in their Wan Chai neighborhood, but she has no idea how long it will take.

Lee, who suffers from diabetes and back problems, takes care of Amy, 9, and Steven, 13, because their father has disappeared and their mother — her daughter — can't get a permit to come to Hong Kong from mainland China. An uncle occasionally lends a hand.

The three live in a 50-square-foot room, one of seven created by subdividing an existing apartment. A bunk bed takes up half the space, a cabinet most of the rest, leaving barely enough room to stand up in. The room is jammed with their possessions: plastic bags filled with clothes, an electric fan, Amy's stuffed animals, cooking utensils.

"There's too little space here. We can barely breathe," said Lee, who shares the bottom bunk with her grandson.

They share the communal kitchen and two toilets with the other residents. Welfare pays their HK$3,500 monthly rent and the three get another HK$6,000 for living expenses but the money is never enough, especially with two growing children to feed. Lee said the two often wanted to have McDonalds because they were still hungry after dinner, which on a recent night was meager portions of rice, vegetables and meat.

The struggle to raise her two grandkids in such conditions was wearing her out.

"It's exhausting," she said. "Sometimes I get so pent up with anger, and I cry but no one sees because I hide away."

© 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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