Home Warriors

Telecommuters need more than e-mail and a broadband connection

THE best thing about being a foreign correspondent is not having to commute to the office every day, attend dreary meetings, dress soberly, and generally get distracted from the nitty-gritty of doing the job. The worse thing is being out of touch with colleagues at head office, with little say over how your stories are treated. But if you can handle the patchy feedback and total lack of control, the freedom pays dividends in productivity and sheer job satisfaction.

Being one of the most portable jobs on the planet, journalism provides a daily reminder that work is something you do, not some place you go to. For the past quarter of a century, your correspondent has smirked about the time and energy he’s saved through not having to travel to work.

The unhappiness is mutual. Half the bosses in the Korn/Ferry study felt the work done by remote employees suffered over time through lack of face-to-face contact with fellow workers. With 40% of its employees working away from the office every day, IBM has been alarmed enough to do some soul-searching.

Research it commissioned recently from Jay Mulki, a marketing expert at Northeastern University’s business school, points to two particular challenges that need addressing—the feeling of isolation and the difficulty of achieving a healthy work/life balance when employees operate from home. “When face-to-face communication isn’t possible,” says Mr Mulki, “teleworkers need a substitute—and voice-mail isn’t it.”

Technology, it seems, is both the problem and the solution. What most telecommuters rely on—e-mail, voice-mail, conference calls and instant messaging, plus a broadband-connected computer—will do the job, but only just. Without some form of “telepresence”, remote workers tapping away at their keyboards in their pyjamas will always be struggling in the dark.

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Jose Padilla sentencing

"[Jose] Padilla's sentence maybe be appropriate as a "bottom line" matter, especially because he was NOT convicted of being a "dirty bomber" and that there was no evidence to link him to any specific act of terrorism," said Katherine Darmer, a former assistant US attorney and current professor of law at Chapman University's School of Law.

"The judge's decision to take into account his conditions of confinement is arguably illegal under sentencing law, however, which directs judges to take into account such factors as the seriousness of the offense, respect for the law, deterrence and protection of the public, and the need to provide the defendant with correctional treatment," Prof. Darmer added. "Pretrial treatment of the defendant is ordinarily taken into account at the trial stage -- with evidence being excluded if it was discovered as the result of illegal treatment of the defendant, for example."

"The case illustrates that there should be a role for judicial oversight of detention centers like the brig at a much earlier stage in the process," Prof. Darmer also points out. "The better procedure would have been for Padilla to have gotten a remedy for abusive conditions while he was subject to those conditions. To give him a shorter sentence primarily because of those harsh conditions undermines the important sentencing goal of protecting the public."

"No one held in the United States, no matter how serious his crimes, should be subject to abusive confinement conditions," Prof. Darmer concludes. "But once someone is fairly convicted, he should be sentenced to a term consistent with the seriousness of that offense."

Fed takes broad steps

Rules aim to prevent shady mortgage lending practices

WASHINGTON — After moving Sunday to quell growing doubts about the stability of housing giants Freddie Mac and Fannie Mae, the Fed on Monday adopted new rules to protect home buyers from shady mortgage-lending practices.

Both actions reflect a more aggressive regulatory zeal at the Federal Reserve Board, which has been criticized for allowing the nation's housing market to overheat and ultimately embrace dangerously unsound practices that helped trigger the ongoing foreclosure, lending and credit crises.

The new rules will protect home buyers from deceptive, unfair and abusive lending, establish new advertising standards and require lenders to provide clearer disclosures of loan terms earlier in transactions.

Consumer advocates wanted the practice banned. Instead, the Fed left the issue open for further study and possible action later.

"The Fed should be applauded for at least stepping up to the plate, but if this had happened five years ago, we probably wouldn't have had a sub-prime crisis," said Kurt Eggert, a law professor at Chapman University in Orange, Calif., and a former member of the Federal Reserve Board's Consumer Advisory Council.

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Fed issues rules to stop abusive lending practices

The Federal Reserve signed off Monday on a long-anticipated plan to end the abusive lending practices that victimized many borrowers in the now-collapsed subprime market.

The rules, however, will only cover new loans, not existing ones, so they will have little effect on the rising tide of mortgage delinquencies and foreclosures across the country. The rules don't go into effect until Oct. 1, 2009.

Among the key changes, the rules bar lenders from making loans without proof of a borrower's income, and require lenders to ensure risky borrowers have reserved money to pay for taxes and insurance. The plan prevents lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value.

Advocates did get the Fed to change its original draft so that borrowers who get a loan they cannot repay can file a lawsuit without having to prove the lender engaged in a similar "pattern or practice" of lending to others without regard to their repayment ability.

A lender, however, can find a "safe harbor" against customer lawsuits by proving it followed certain steps in verifying if the borrower could indeed repay the loan.

"Consumers don't have to prove the whole 'pattern and practice,' but lenders can say, 'Hey, if we follow these straightforward rules, it makes it harder for consumers to sue us for granting a loan they can't repay,'" said Kurt Eggert, a former member of the Federal Reserve Board's Consumer Advisory Council.

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More from Dr. Tony Gao

"The following 4 examples seem to align well with the electrical car purchase among some consumers - they are all driven by a cause or strong personal belief," says Tony Gao, Ph.D., a marketing professor and retail expert at Northeastern University’s business school:

(1) buying from locally owned independent stores rather than big box national retailers

(2) buying products made in the USA whenever possible to show patriotism

(3) buying brands other than the most hated one (e.g., Pepsi) when loved brand (Coke) is unavailable

(4) buying anywhere other than from the most hated retailer (such is the case of Wal-Mart for some consumers; and the case of a laid off employee from a retailer refusing to shop in his/her former employer for life).

In all of these cases, there is some consistency between personal values/beliefs and what's represented by the brand (Coke), or product type (electronic cars), firm type (small locally owned firms), or country origin (US products). Strong commitment to the personal beliefs is a must in these purchases and there is also a conviction that somehow, one's own purchase will make a difference. These considerations are psychological in nature in that buying or sometimes not buying the product will make the consumer feel good about him/herself.

New rules aimed at protecting buyers

FROM THE JOURNAL STAR

MIAMI —The Federal Reserve signed off Monday on a long-anticipated plan to end the abusive lending practices that victimized many borrowers in the now-collapsed subprime market.

The rules, however, will only cover new loans, not existing ones, so they will have little effect on the rising tide of mortgage delinquencies and foreclosures across the country. The rules don't begin until Oct. 1, 2009.

Among the key changes, the rules bar lenders from making loans without proof of a borrower's income, and require lenders to ensure risky borrowers have reserved money to pay for taxes and insurance. The plan prevents lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value.

A lender, however, can find a "safe harbor" against customer lawsuits by proving it followed certain steps in verifying if the borrower could indeed repay the loan.

"Consumers don't have to prove the whole 'pattern and practice,' but lenders can say, 'Hey, if we follow these straightforward rules, it makes it harder for consumers to sue us for granting a loan they can't repay,'" said Kurt Eggert, a former member of the Federal Reserve Board's Consumer Advisory Council.

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Feds order new mortgage rules to end deceptive practices

WASHINGTON — After moving Sunday to quell growing doubts about the stability of housing giants Freddie Mac and Fannie Mae, the Fed on Monday adopted new rules to protect home buyers from shady mortgage-lending practices.

Both actions reflect a more aggressive regulatory zeal at the Federal Reserve Board, which has been criticized for allowing the nation's housing market to overheat and ultimately embrace dangerously unsound practices that helped trigger the ongoing foreclosure, lending and credit crises.

But neither move improved the stock market’s outlook on the banking sector. Shares of Fannie Mae slipped 18 cents to finish at $10.08, while Freddie Mac shares dropped 66 cents to finish at $7.09. Banking stocks in general were also down.

Consumer advocates wanted the practice banned. Instead, the Fed left the issue open for further study and possible action later.

"The Fed should be applauded for at least stepping up to the plate, but if this had happened five years ago, we probably wouldn't have had a sub-prime crisis," said Kurt Eggert, a law professor at Chapman University in Orange, Calif., and a former member of the Federal Reserve Board's Consumer Advisory Council.

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Why different consumers have so many different shopping preferences

"Aside from variances in their budgetary abilities, consumers differ in what constitute 'need fulfillments' for them. Consumers make purchases to satisfy their needs and the following areas of needs exist: functional, social (relational), psychological (personality, religion, personal beliefs and values, etc.), situational, novel, hedonic, or holistic (to match existing possessions)," says Tony Gao, associate marketing professor at Northeastern University's College of Business Administration. "One thing that might be common among consumers of "special" products and experiences, is the reduced importance of the functional benefits and increased role of psychological and social benefits. Another commonality might be the lack of attention to the price of the product, that is, these consumers may have more discretional income to pursue benefits beyond the utilitarian or functional level."

Critics say Fed mortgage rules coming too late

Regulations only cover new loans and leave out entire prime market

MIAMI - The Federal Reserve signed off Monday on a long-anticipated plan to end the abusive lending practices that victimized many borrowers in the now-collapsed subprime market.

The rules, however, will only cover new loans, not existing ones, so they will have little effect on the rising tide of mortgage delinquencies and foreclosures across the country. The rules don't go into effect until Oct. 1, 2009.

Among the key changes, the rules bar lenders from making loans without proof of a borrower's income, and require lenders to ensure risky borrowers have reserved money to pay for taxes and insurance. The plan prevents lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value.

A lender, however, can find a "safe harbor" against customer lawsuits by proving it followed certain steps in verifying if the borrower could indeed repay the loan.

"Consumers don't have to prove the whole `pattern and practice,' but lenders can say, `Hey, if we follow these straightforward rules, it makes it harder for consumers to sue us for granting a loan they can't repay,'" said Kurt Eggert, a former member of the Federal Reserve Board's Consumer Advisory Council.

If you would like to read this entire article, please visit: http://www.paradigmshiftpr.com/media/placements/criticssaymortgagerules.htm

Airlines hit another rough spot

The AMEX airline index plunges to the lowest point in its 13-year history due to record-high oil prices.

By Aaron Smith, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- The already roughed-up airline industry nosedived on Friday as companies and their investors got slammed by high oil prices.

The AMEX Airline Index plunged to the lowest point in its 13-year history, dropping at one point on Friday by more than 7% to 13.7 points. That's 69% below its level in January 1995, when the index ( XAL) - a composite of U.S.-based and overseas carriers - was created.

UAL Corp. ( UAUA, Fortune 500), owner of United Airlines, lead the downturn with a 15% plunge in its stock price, after announcing a charge of $2.6 billion to $2.7 billion, partly from the cost of cutting 2,550 jobs. The stock closed on Friday off its lows at $3.63, down nearly 13%.

Cutting capacity.

Harlan Platt, a finance professor at Northeastern University's College of Business Administration in Boston, said he believes that some carriers won't survive another 18 months if oil prices don't ease. He said airlines should cut capacity by one-third.

"If everybody cut capacity by a third now and got rid of all unprofitable flights, the airlines would dramatically increase their survival time at these oil prices," said Platt.

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Cool travel gadget: transforming audio to DC power

I wanted to make you aware of a very cool gadget called the Inflight Power Recharger. This recharger uses the audio out power meant for headphones delivered to the jack in your aircraft seat as a source voltage to recharge your iPod, Blackberry, Game Boy, or whatever. Simply by plugging the cable into the passenger seat headset jack on an airplane, bus or train, the cable converts the audio output into regulated USB power.

The latest version of the Inflight Power Recharger adds an optional battery boost to increase the power supplied and offer continuous power, enabling one to charge their devices anywhere.

To read an independent assessment of the Inflight Power Recharger, here’s a write-up by AirFax: http://www.airfax.com/airfax/features/viewstory.asp?filepath=dec2006\power.htm