Grumpy Editor

Obama praises solar plant: 5 jobs, no power for Nevadans

National media on President Barack Obama’s solar energy visit to the Las Vegas area on Wednesday neglected to mention that the one million glittering photovoltaic panels that served as a backdrop for his 17-minute televised speech that brought applause from the audience and heavy print/broadcast coverage, would not provide one watt of power to Nevadans who helped foot the bill, observes Grumpy Editor. 

And as for total jobs created at Sempra Energy Corp.’s Copper Mountain Solar 1 plant in Boulder City, 30 miles east of Las Vegas:  only five full-timers run the plant. 

That wasn’t exciting news to Nevadans in a state that has the highest unemployment rate in the nation, 12.7 percent. 

San Diego-based Sempra owns the facility that cost $141 million with a portion of that funded by Nevada taxpayers who consistently receive hikes in power rates --- now among the highest in the nation --- from NV Energy, Inc., which serves the Silver State.

Yet, Sempra's solar energy output from Nevada is being directed to California. 

Both NV Energy and Sempra are listed on the New York Stock Exchange. 

Meanwhile, Obama’s short visit to Boulder City did not win applause from many of its 15,000 residents who were curbed from their daily activities. 

On the afternoon the president’s motorcade traveled from Las Vegas’ McCarran International Airport, where he arrived on the Boeing 747 Air Force One, motorists, including visitors and business people, were advised to stay away from Boulder City because of congestion and road closures.

 

FCC toughens annoying ‘robocalls’ from telemarketers

Telemarketers, even those linked to consumers via an “established business relationship” such as banks or auto dealerships, now will have to obtain your written consent before placing those pesky “robocalls” which always seem to occur at inopportune times, finds Grumpy Editor.

New rules from the Federal Communications Commission make it more difficult for automatic dialers with prerecorded messages to reach consumers.

Also, to simplify things, the FCC will require firms behind “robocalls” to allow those on the receiving end to opt-out of future calls within the first two seconds via pressing keys on phones.

Despite the fresh clampdown, some marketing folks and others still will find ways to interrupt peaceful evenings.

These include pollsters, schools, churches and non-profit operations.

And, not surprisingly, loopholes also allow another group to reach you:  politicians.

The key method to block unwanted calls is to go to DoNotCall.gov and add your name to the National Do Not Call Registry.

No need to re-sign every five years, as some media sources suggest.

Registered telephone numbers will remain permanently, stemming from the Do Not Call Improvement Act of 2007 that became law in February, 2008.

 

Postal Service seeks to end overnight mail delivery

In a bid to avoid insolvency, the Postal Service today officially proposes eliminating overnight delivery of first-class mail to many destinations --- which is nothing new considering for years it has taken a sluggish two days to get many letters from point A delivered to point B, notes Grumpy Editor. 

For example, for years mailing a letter in Los Angeles for delivery in  Las Vegas --- a distance of about 230 miles --- takes two days. 

The Postal Service wants to change what it calls “overnight standards.”  Officially, that means it would take first class mail more than one day to reach destinations. 

The agency says it needs to overhaul service standards as it closes hundreds of processing facilities. 

Delivering first class mail in two to three days instead of one to three days could save about $3 billion by 2015, claims the Postal Service. 

That comes close to Pony Express standards. 

And it gets closer to the Postal Service's unofficial label, “snail mail.” 

Lowly speed contrasts with 70 years ago when the postal operation was swift.  Two mail deliveries a day were common.  A mailing in the morning was delivered by afternoon in the same city. 

Modern mail operations struggle to offset falling mail volumes as more people and businesses communicate by email and pay bills online. 

Adding to the decline in mail activity is the periodic increase in cost of postage. 

Another boost comes on Jan. 22. 

Cost of a first-class stamp, for a one-ounce mailing, rises to 45 cents from the current 44.

 

Growing ‘Big Bank’ fees trigger Bank Transfer Day

Look for “Bank Transfer Day” tomorrow to inspire further account shifting but expect spotty coverage by newspapers that run large ads of major banks such as Bank of America, predicts Grumpy Editor. 

It comes at a time when “Big Banks” face a huge public relations problem in retaining customers. 

Their marketing departments may have to take a promotion page from yesteryear and roll out inducements such as toasters and other small appliances with new account openings. 

Bank Transfer Day rises from major banks’ growing fees, spurred by Bank of America’s month-ago announcement to charge a $5 monthly debit card fee --- which it canceled on Tuesday following a national uproar.

Also reversing course a few days prior by scrubbing fees linked to debit cards were other giant banking operations JPMorgan Chase & Co. and Wells Fargo & Co., among others. 

Those actions, coupled with other treatment (dreadful in some cases), triggered many consumers to transfer accounts to other financial institutions such as community banks and credit unions. 

A Harris Poll released yesterday found credit unions enjoy best-in-class customer retention rates while “the nation’s largest banks fail to engender the same degrees of loyalty from their customers.” 

“For example, only two in five of Bank of America's customers are extremely or very likely to continue (40 percent), as are less than half of JPMorgan Chase's customers (46 percent) and just over half of Wells Fargo/Wachovia's customers (54 percent),” Harris reported after polling 2,463 adults online between Oct. 10 and 17. 

"Customers express their loyalty through their actions, but the underlying motivation for these actions is rooted in the degree to which the bank connects with its customers on both a rational and emotional level, which in turn impacts their future intentions of continuing to use and recommend their bank to others,” Harris pointed out. 

Harris added, “Credit union members are three times as likely as customers of Bank of America to experience a trustworthy relationship (74 percent vs. 25 percent) and feel valued as a customer (72 percent vs. 24 percent), primary drivers of a strong emotional commitment to a relationship.” 

Meanwhile, Norma Garcia, director of Consumers Union’s financial services program, said Bank of America’s debit card fee “was the last straw for many consumers who are tired of banks that got bailed out that are now turning around and hiking fees.”

She added, “Consumers who are unhappy with new bank fees can vote with their feet and take their money elsewhere.  There are many banks and credit unions that are eager to serve consumers fed up with rising fees.”

 

First Lady shops ‘incognito’ in Target store near D.C.

Public relations folks at Target Corp. must be jubilant following the “incognito” appearance of Michelle Obama at the retailer’s Alexandria, Va. store, notes Grumpy Editor. 

It’s not every day that one finds the nation’s First Lady pushing a Target shopping cart loaded with household necessities. 

The event brought much media coverage for Target --- better then a news release from the New York Stock Exchange-listed company. 

An Associated Press story on Friday mentioned Michelle Obama was “hard to recognize in a baseball cap and sunglasses.” 

Sure. 

Snapping away at the mystery shopper from the White House was AP photographer Charles Dharapak --- who just happened to be in the store, just outside Washington, at the time.

Of course, the unusual in-store photo shoot didn't attract much attention.

Dharapak obviously spots a notable “incognito” person when he sees one.  A lensman working out of AP’s Washington office, he joined the news service in 1995 and later became chief photographer and photo editor for AP in Jakarta, Indonesia. 

From the news reports, shoppers and employees, it seemed, also did not notice a bevy of Secret Service agents in and around the store or the lineup of special vehicles outside the front entrance.

After Michelle Obama, trailed by an assistant, spent at least a half hour in the store, AP reported, “She was recognized only by the cashier at checkout.”

 

Violent crime figures focus on reported incidents in 2010

Violent crime rates dropping for the fourth straight year received heavy broadcast/print coverage yesterday --- with apparently few editors or writers raising eyebrows, notes Grumpy Editor. 

Key word in the information from the FBI is reported as with crimes reported to authorities.  Many victims, for various reasons, fail to file crime reports.

Estimated also appears in released material. 

Nationwide, an estimated 1.2 million violent crimes and an estimated nine million property crimes occurred in 2010, reports Associated Press. 

The decline, say criminologists, is attributed to an aging population, better policing and continued high rates of imprisonment for criminals, adds AP. 

This runs counter to other news stories that cross editors desks during the year that point to jobless younger people in troubled economic times turning to crimes, slimmer budgets with freezes or cuts to police departments, and closing of prisons along with early release of inmates in efforts to reduce costs in a down economy. 

Robust gang activity is keeping many police departments busy and away from other investigations. 

Most television stations’ news programs often air shooting stories first.  “If it bleeds, it leads,” is the cry of TV news editors. 

Thus, it’s difficult for many Americans to agree with headlines such as:  “Crime rates continue decline in U.S. despite high unemployment.” 

Meanwhile, not mentioned in the latest crime tally stories are lesser offenses --- from identify theft to imposter scams --- directed at consumers. 

The Federal Trade Commission places identity theft at the top of the list of consumer complaints, accounting for 250,854 out of 1,339,265 complaints filed last year.  Never-ending various scams not only are multiplying, but are being aimed at seasoned investors, too. 

Many of these also go unreported to authorities. 

 

Consumer price index makes surprise jump in July

While heavy financial coverage in today’s newspapers focused on the battering the stock market took Thursday, with the Dow industrials down 419.63 points to 10,990.58, taking a back seat (or buried) was news that the cost of living made a surprise jump in July --- the most in four months, observes Grumpy Editor. 

Key media, echoing Washington, have labeled inflation “tame” in recent months. 

Consumer prices last month rose 0.5 percent, led by higher food and energy costs, reported the U.S. Bureau of Labor Statistics. 

It came in more than twice the rate that some economists expected and markedly higher than June’s 0.2 percent decline. 

Over the last 12 months, the all items index increased 3.6 percent before seasonal adjustment. 

The core inflation rate, excluding food and energy prices, was up 0.2 percent in July after two straight months of 0.3 percent increases.

On Wednesday, the Labor Department announced the producer price index (PPI), which measures price changes in goods before they reach consumers, rose 0.4 percent in July, the biggest increase since January.

For those following the consumer price index (CPI), the tally for August is slated to be released on Sept.15 at 8:30 a.m., EDT. 

 

Better Homes and Gardens renewal messages scold

 

Magazine renewal notices usually are rather cordial, often with an inducement --- such as a token gift --- to spur prompt action from subscribers, but mailed messages from Better Homes and Gardens border on something that would originate from the IRS or a collection agency, finds Grumpy Editor.

Scolding and threatening valued readers are sure ways to deter renewals.

Think subscribers would “re-up” to the magazine, a Meredith Corp. publication, that first mails an “urgent notice” from the “collections department” that reads:

“As you know, we have been very patient, but your bill is now seriously delinquent. 

“We fully expect you to resolve this situation as honorably as you began it…please pay your debt now.” 

(The “account balance” on the form shows $12.97.  The bill is not delinquent and there is no “debt” since no renewal is happening.) 

Then a month later, a follow-up mailed greeting arrives in a yellow envelope labeled “TELEWIRE, electronic message”: 

Inside, a yellow sheet from “accounts receivable,” all in capital letters, reads: 

“ALTHOUGH WE HAVE REPEATEDLY ADVISED YOU OF YOUR DELINQUENT ACCOUNT, WE HAVE NOT YET RECEIVED PAYMENT IN THE AMOUNT OF $12.00 FOR THE BETTER HOMES & GARDENS MAGAZINES YOU ORDERED.”  

(Note: The renewal is not ordered and the pitch incorrectly uses an ampersand in the magazine’s title, rather than and.)

“IN ORDER TO PREVENT ADDITIONAL MEASURES, WE URGE YOU TO REMIT YOUR PAYMENT AT ONCE. 

“YOUR IMMEDIATE RESPONSE WILL BE AN IMPORTANT FACTOR IN DETERMINING OUR COURSE OF ACTION. 

“DO NOT DELAY.  REMIT YOUR PAYMENT TODAY.” 

(Note: On the follow-up pitch, the “Status: past due amount due: $12.00”--- that’s with two “dues” in the pitch --- shows 97 cents less than in the month-earlier scolding.) 

Also, unlike other magazines that provide postage-paid envelopes for renewal payments, envelopes from both Better Homes and Gardens pitches require readers to affix stamps. 

Bottom line:  Would a normal subscriber renew after those tongue-lashings? 

By the way, going “cold” to Meredith’s Web site to order a similar 12 issues of Better Homes and Gardens costs half the “overdue payment”:  $5.99.  And with that comes a free “All-Time Favorites Cookbook.”

 

Bernanke faces press today, responses to be scrutinized

The big question today is will media gain better insight on Federal Reserve policies with chairman Ben Bernanke holding the first of quarterly televised news conferences (2:15 p.m., Eastern), asks Grumpy Editor. 

Unlike Bernanke’s appearances in recent months before Senate and House groups when questions sometimes ran almost as long, timewise, as a sitcom on TV, it is hoped that concise queries from media will shed a better light on the country’s fiscal situation and outlook. 

Today’s news conference immediately follows a two-day-long Federal Reserve policy meeting that usually is capped by an economic statement from the central bank that is scrutinized down to the last word --- and often still has to be deciphered. 

One word certain to be heard:  inflation. 

Details likely will be sought on rising inflation pressures that are extending to and affecting nearly all U.S. businesses and consumers, threatening the economic recovery. 

Other words likely to be heard include interest rates, oil and the dollar. 

Responses may have an effect on the stock market which will be open until about 4 p.m., Eastern.

To trigger a reaction, it takes just one financial analyst to air a wrong interpretation of something said by Bernanke.

And that will be in tomorrow’s newspaper headlines.

 

Blame Libya for gasoline pain at pump? Not so fast

With the price of oil reaching $106 a barrel yesterday, most media and the White House point the finger at Libya as the culprit in sending the price of gasoline to $4 a gallon and beyond, but Grumpy Editor finds that the North African nation is only a very minor player in contributing to the U.S. crude oil supply --- information that is rarely inserted in current stories relating to oil and gasoline.

One publication mentioning the minor role of Libyan oil imports is The Wall Street Journal.  Today’s top front-page story on Libyan oil mentions, “The U.S. is a small customer of Libya.”  But that’s in the 17^th paragraph of the 22-paragraph article.

Gasoline prices are up a hefty 34 cents a gallon, on average, in just 13 days, reports AAA.

Among nations receiving Libya’s crude exports, the U.S. gets a minuscule 0.5 percent (that’s half of one percent for those confused by decimal points).  That puts the U.S. at the bottom of the list of key nations on the receiving end of Libyan oil.

Put another way, the U.S. receives only 51,000 barrels a day via Libya.

That compares to Ireland, topping the list in importing 23 percent of its crude from Libya.  It is followed by Italy with 22 percent and Austria with 21 percent.

Europe receives more than 85 percent of Libya’s oil.

Of course, U.S. dependency on foreign oil imports can be reduced greatly by more domestic production.

But despite the steady upward climb of oil prices --- contributing to inflation on many fronts --- barriers remain for more domestic production that would result in less dependency on foreign imports.

Interior Secretary Ken Salazar last Friday told CNSNews:  “We don’t believe that you need to drill everywhere and we don’t believe that the ‘drill, baby, drill’ program is the way that’s going to get us to the energy independence that we need for America.”

(One has to re-read that quote to understand Washington thinking.)

Salazar said the president and the Interior Department point to the need for an energy program that includes a number of different sources, especially citing renewable energy.

Also on Friday, a Rasmussen Reports survey finds 55 percent of likely U.S. voters (up from 48 percent three months ago) now oppose President Barack Obama’s seven-year ban on offshore oil and gas drilling in part of the Gulf of Mexico and along the East Coast.