a-wake-up-call

By Matthew Boyle March 11 (Bloomberg) — Salmonella contamination at a Nevada food-flavoring plant may trigger the recall of as many as 10,000 products, according to a Consumers Union scientist. PepsiCo Inc. joined Procter & Gamble Co. , Nestle SA and McCormick & Co. yesterday in recalling food containing hydrolyzed vegetable protein, or HVP. The widespread use of the flavoring means more companies will follow, said Michael Hansen, senior scientist at Consumers Union, the Yonkers, New York-based advocacy group that publishes Consumer Reports magazine. More than 100 items, including two flavors of P&G’s Pringles and a store-brand ranch dip found in Wal-Mart Stores Inc., had been pulled as of yesterday, according to the U.S. Food and Drug Administration’s Web site. Soups, sauces, chili, hot dogs, snack foods, dips and dressings are among the processed foods that often contain the vegetable protein, according to the FDA. “It’s a wake-up call for the food industry as a whole to be more thorough in evaluating the safety of ingredients,” said Michael Doyle, director of the Center for Food Safety at the University of Georgia. “Big companies are putting their trust in suppliers, which is their Achilles heel.” The tally of products will rise over the next few weeks, FDA officials said March 4, declining to provide an estimate. The recall has the potential to be the largest ever by number of products, although the total isn’t yet known, said Rita Chappelle , an FDA spokeswoman. The contaminated HVP was made by Las Vegas-based Basic Food Flavors and discovered by one of its customers, which alerted the FDA, officials of the agency said on a March 4 conference call. Dave Wood, director of sales and marketing at Basic Food Flavors, wasn’t available to comment. No Illnesses To date, there are no known illnesses associated with the contaminated HVP, which is sometimes referred to as a “natural flavor” on ingredient labels. The FDA has said the overall risk to consumers is low because most products containing HVP are cooked during processing or are cooked by consumers, which would eliminate any salmonella. In uncooked, ready-to-eat products, like chips and dips, the risk is greater. In an inspection report sent to Basic Food Flavors, FDA investigators said they found salmonella on “non-food contact surfaces” near some food processing equipment. The contaminations were found where the HVP powder is mixed with other ingredients to be packaged into final products, according to the report. Basic Food Flavors continued to make and distribute HVP for several weeks after it knew its plant was contaminated, the FDA said in the report. ‘Abundance of Caution’ PepsiCo said yesterday in a statement that it voluntarily recalled its Quaker Baked Cheddar Snack Mix. HVP is a “very minor” ingredient in the seasoning of the snack, which was recalled “out of an abundance of caution,” the Purchase, New York-based company said. On March 5, McCormick, the seller of spices and herbs, recalled four products, including a French onion dip mix. Three days later, a North American unit of Nestle said it was recalling about 6,000 pounds (2,722 kilograms) of a ready-to-eat bacon base product. The same day, Cincinnati-based P&G recalled the two flavors of Pringles. Wal-Mart’s Great Value Ranch Chip Dip, manufactured for the world’s largest retailer by the T. Marzetti Co. of Columbus, Ohio, has been pulled from the shelves, according to Wal-Mart spokeswoman Anna Taylor. PepsiCo rose 7 cents to $64.43 yesterday in New York Stock Exchange composite trading. McCormick , based in Sparks, Maryland, rose 13 cents to $38.10. Nestle, based in Vevey, Switzerland, rose 35 centimes to 53.90 Swiss francs in Zurich. Rising Costs The costs associated with tainted products for food companies worldwide will balloon to as much as $15 billion annually in coming years, up from about $400 million in 2004, according to Constanze Freienstein, a senior principal at A.T. Kearney’s consumer and retail practice in Chicago. Eating products containing salmonella can cause fatal infections in young children, frail or elderly people. A nationwide salmonella outbreak traced to a South Georgia peanut processing plant in late 2008 was blamed for at least nine deaths and hundreds of illnesses. Legislation passed last year by the House and held up in the Senate would require companies to check their products and manufacturing process for contaminates, said Chappelle , the FDA spokeswoman. Under the proposed law, the FDA would be able to mandate food recalls when contaminations occur, a process that is currently voluntary for companies, she said. “We’re dealing with much more complicated processes and contaminations than when the current law was passed,” Sandra Eskin, director of the food safety campaign with the Pew Health Group, said in a telephone interview yesterday. “This is a legislative shift that’s necessary so the FDA will have authority to develop food safety plans, see where contaminations could occur, and set up procedures to prevent them from happening.” To contact the reporter on this story: Matthew Boyle at Mboyle20@bloomberg.net .

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Food Recalls From Salmonella May Rise to 10,000 in Industry ‘Wake-Up Call’

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Lakshman Achuthan: Analysis: Good News on Jobs, But Will it Last?

December 4, 2009

Friday’s news of a drop in the unemployment rate to 10 percent is a welcome development. It was presaged by earlier strength in reliable leading employment indicators, which suggest that this improving pattern will persist next year. In November, employers cut the fewest jobs since the recession began, but how should Americans interpret this information? With unemployment in double digits for the first time since 1983, many still worry about the jobless recovery. The post-recession dip in joblessness is the good news. But, looking ahead to the later phase of the expansion, the post-World War II period shows disturbing cyclical patterns. The jobless rate usually sees a sizable drop during the economic recovery — and bigger recessionary spikes in unemployment are typically followed by larger declines during the first year of improving unemployment. So it would be no surprise if, a year after the unemployment rate begins to drop, it falls to the 9 percent range. The real problem is that the rate of decline in joblessness slows during the rest of the economic expansion. The annual post-war pace of decline in unemployment during these periods has been reasonably uniform, the median being 0.5 percent a year. If that pattern persists, the U.S. economy needs to keep expanding without interruption until 2020 for unemployment to fall to its pre-recession low of 4.4 percent. Should the next recession arrive earlier, as we suspect, it will take much longer. The implications constitute nothing short of a wake-up call for policy makers who promise to get job growth back on track. Since World War II, there has been a clear easing pattern in the trend rate of economic growth during expansions, culminating in the 2001-07 expansion, which showed the slowest trend rate of growth on record — especially in terms of jobs. Ominously, during expansions following the initial year of revival, growth in non-manufacturing employment has been falling in a parabolic fashion since the 1970s. A continuation of this pattern would lead a much worse job market than almost anyone expects. The “great moderation” of business cycles once extolled by many economists, including Federal Reserve Chairman Ben Bernanke, is history. The trend rate of growth is shriveling. In other words, business cycles are back with a vengeance. The real risk is of more frequent recessions repeatedly aborting cyclical downswings in unemployment in coming years. Some consolation comes from the fact that past performance does not dictate destiny, and extrapolation from past patterns is not a reliable forecasting method, especially if the pattern is about to change. It is at least conceivable that either enlightened policy measures, or good luck, or both, will result in a decisive break from these patterns. The silver lining is that even an economy dipping in and out of recessions and keeping joblessness cycling near historical highs is a navigable one for decision-makers who keep a closer watch for recessions and recoveries. Originally posted on NPR. Lakshman Achuthan is managing director of the Economic Cycle Research Institute. He is a member of Time magazine’s board of economists, and co-author of Beating the Business Cycle: How to Predict and Profit from Turning Points in the Economy. Anirvan Banerji is the director of research for the Economic Cycle Research Institute and a RealMoney.com contributor.

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Raymond J. Learsy: The Price of Oil and the Massacre at Fort Hood

November 8, 2009

The relation between price of oil and the slaughter that took place at Fort Hood is hardly as farfetched as it would appear. In a instructive article (http://www.islamicpluralism.org/1408/take-a-look-at-hasans-old-mosque) that was reprinted as an Op-ed in the NYPost on Saturday Nov 7, one Stephen Suleyman Schwartz Executive Director of the Center of Islamic Pluralism talks about the influences that apparently formed Major Nidal Hassan’s murderous hatred. This in striking contrast to the New York Times’ “see no evil” editorial of the same date, pontificating, “But until investigations are complete, no one can begin to imagine what could possibly have motivated the latest appalling carnage.” Really?! The Times, undeterred, continues with an article on today’s front page, “A Military Therapist’s World: Long Hours, Filled With Pain” replete with the sad song of twisted rationalizations, instructing us that this horrendous act was attributable to professional traumatic stress or as brightly cited in the Times, “Thursday’s rampage has put a spotlight on the stains of their profession and the patients they treat.” Then, in an adjoining article on the same NY Times front page, “Preliminary Fort Hood Inquiry Turns Up No Link To Terrorist Plot” the NY Times is quick to advise us “But, so far, investigators have unearthed no evidence that he was directed or steered into violence”. Then, perhaps in some deference to journalistic objectivity, mentioned almost in passing, that findings were preliminary and that investigators viewed the investigation as fluid. No such mealy mouthed hesitancy in the Schwartz Op-ed. Here we are informed that Hasan regularly attended prayer services at the Muslim Community Center in Silver Spring MD where the main prayer leader Iman Faizul Khan was a friend of Hasan’s as well as holding board membership on the Islamic Society of North America (ISNA). The ISNA, according to Schwartz, the main Wahhabi lobby group in the United States, has a long and disgraceful record of promoting radical Islam. He goes on to advise that it is a group understood to have been established by Saudi Arabia to impose extremism on American Muslims. He continues, telling us that “from a ghastly act, to a Saudi-backed fundamentalist Iman, to a Saudi run designated terror financing charity is not a long trail. That ii is but a small coil of associations that exist in too many US mosques”. He rightfully concludes American Muslims must drive these elements out of their community. “The problem is not traumatic stress, much less Islam. It’s the ideology, the money and and the interests of the Saudi hardliners.” And almost needless to add, the funding comes from the avalanche of money flowing into the coffers of such as Saudi Arabia through the insidious and duplicitous manipulation of oil prices by the cartel producers, with Saudi Arabia as the dominant player and prime beneficiary. This at the cost of hundreds of billions to American consumers in dollars and cents alone, without even beginning to fathom the cost and danger to our society, safety and well being impacted by the radicalization of a segment of our society through Wahhabi dogma while our government and its agencies look the other way, rarely if ever holding the Saudis to account (please see “Oils Massive Price Distortion Militates the Reconvening of the 1970s Federal Oil Price Commision” 11/03/09). Perhaps, just perhaps, in tribute and memory to those who were gunned down at Fort Hood, this could be a wake-up call to the nation.

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Ellen Galinsky: Wellness is the Responsibility of Business as Well as Worker

September 22, 2009

No matter what your position is on the health care debate, almost everyone seems to agree that the path we are on is an untenable route to increasing costs and diminishing returns. New data show American workers are getting less healthy each year, and this obviously will increase health care costs. The good news is that employers and employees can help contain these costs, in cost-effective and straightforward ways. “The State of Health in the American Workforce,” a report that Kerstin Aumann and I co-authored and released today from the Families and Work Institute (FWI), finds that only 28% of employees today report that their overall health is “excellent,” down from 34% just six years ago. The report also reveals: 41% of employees report experiencing three or more indicators of stress sometimes, often or very often; One in three employees experiences one or more symptoms of clinical depression; and One in five employees has trouble falling asleep very often or fairly often and 31% awaken too early and have trouble falling back to sleep, also very often or fairly often. 21% are receiving treatment for high blood pressure and 14% are being treated for high cholesterol. Because two-thirds of employees are enrolled in the health insurance their employers provide, these findings must be considered in the health care reform debate. Employees who are enrolled in health insurance through their employer — or through another source — are also significantly less likely to plan to seek another job and report better physical and mental health than those who do not have health insurance coverage through their jobs or from another source. To be well and to do well, employees need health insurance. Not surprisingly, household income level makes a big difference when it comes to both access to and enrollment in health insurance. Low-wage/low-income employees are less likely to have access to employer health insurance and are also less likely to enroll in insurance from another source. This is an alarming catch-22 because even if they can access company health plans, low-wage/low-income employees are also less likely to receive employer contributions to offset the cost of insurance. They are thus less likely to enroll in their organization’s plan. On the bright side, employer policies fostering employee engagement and satisfaction are associated with better employee health. Examples of these policies include giving employees a say about how to do their jobs and providing flexible scheduling options. FWI finds that 38% of employees in workplaces that we classify as having “high overall effectiveness” (based on six measurable criteria: economic security, autonomy, work-life fit, job challenge and learning, supervisor task support and a climate of respect) report “excellent overall health.” By contrast, only 19% of employees in workplaces in the “low overall effectiveness” category report “excellent overall health.” Our findings serve as a wake-up call for employers and employees alike to take a closer look at how their organizations affect people’s health and well-being. Employees’ physical and mental health, stress levels, sleep quality and energy levels all significantly impact important work outcomes of interest to employers, such as engagement, turnover intent and job satisfaction. Employers are well aware that wellness programs can make a difference but are much less aware that effective workplaces should be considered as an integral part of promoting wellness. Although the provision of health care is expensive, providing most aspects of effective workplaces is not. Every workplace, small or large, can undertake efforts to treat employees with respect, give them some autonomy over how they do they jobs, help supervisors support employees to succeed in their jobs, and help supervisors and coworkers promote work-life fit. Providing economic security is more complex, especially during a period of business downturn, but ensuring that there is open and regular communication about the financial state of the organization can help employees weather economic storms. Similarly, organizations should not forget that access to good benefits and opportunities for career advancement affect employees’ feelings of economic security. Finally, providing reasonable challenges and learning opportunities can have a positive effect on employee engagement and job satisfaction. In addition, organizations can promote wellness by monitoring overwork and providing and encouraging employees to take their vacations. As employees we have a responsibility too. It is disturbing to find, for example, that nearly half of U.S. employees (49%) have not engaged in regular physical exercise in the last 30 days, including 22% not engaging in any rigorous physical exercise. We also need to look closely at the extent to which our jobs contribute to or hinder our personal well-being. This includes not only employer policies about paid sick time, vacation or health insurance, but also the very nature and design of our jobs and workplaces. The message is clear that beyond any reform measures on the table in Washington, it is urgent for employers and employees to pay attention to how they can promote better health, which ultimately will save money. Both employers and employees need to take responsibility for improving the health of the American workforce. Health care reform won’t work without it. The new FWI study is fully downloadable at www.familiesandwork.org.

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Commercial-Mortgage Bond Rally Stalls Ahead of Deadline for Fed Program

August 14, 2009

By Sarah Mulholland Aug. 14 (Bloomberg) — Yields on bonds backed by shopping malls, hotels, office buildings and apartment complexes rose relative to benchmark interest rates as investors wait for the second round of the Federal Reserve’s program to jumpstart lending. The yield gap, or spread, on a commercial-mortgage security commonly cited as a barometer rose 0.60 percentage point yesterday to 6.30 percentage points more than the benchmark swap rate, according to JPMorgan Chase & Co. data. The debt was at about 5.30 percentage points over the benchmark at the end of last week. The price of Markit CMBX index contracts plunged as much as 6.18 percentage points yesterday, JPMorgan data show. The price of the contracts fall as the cost to protect debt from default rises. Investors and Wall Street banks had been gobbling up the bonds as the Fed’s program to stimulate new lending promises to boost returns by financing purchases of AAA commercial-mortgage debt. The Fed effort pushed prices up quickly, and buyers could be pulling away as the commercial-mortgage market remains under pressure, according to Lisa Pendergast , a strategist at Jefferies & Co. in Stamford, Connecticut. Maguire Properties Inc. , the largest office landlord in downtown Los Angeles, announced its plans to surrender control of seven buildings to its lenders on Aug. 10. The mortgages on six of them had been bundled and sold as bonds. ‘Wake-Up Call’ “Maguire should have been a wake-up call for anybody that got lulled into comfort,” Pendergast said. “No sophisticated borrower is going to continue to feed a property for very long knowing that their assets are far out of the money.” The Fed began lending against so-called legacy commercial mortgage-backed securities last month through its Term Asset- Backed Securities Loan Facility, or TALF. Legacy securities are those sold before Jan. 1. Investors sought $669 million in loans to purchase older bonds backed by commercial real estate last month. The amount of loan requests should increase as investors get more comfortable with the program’s mechanics, according to a report from Barclays Capital yesterday. The next deadline for investors to apply for loans to buy the older bonds is Aug. 20. The Fed has reserved the right to reject loan requests if the bond to be used as collateral is deemed too risky. The Fed threw out one bond and accepted 35 in July. Top-ranked commercial-mortgage backed securities have gained 10.17 percent since July 1, according to Merrill Lynch & Co. indexes. ‘Momentary Setback’ This week’s sell-off should be seen as a “momentary setback,” Citigroup analysts led by Darrell Wheeler in New York said in a report today. The U.S. Public Private Investment Partnership, a separate government program that will lend against a broader swath of commercial-mortgage securities, should push prices up further once the program gets off the ground, the Citigroup analysts said. To contact the reporter on this story: Sarah Mulholland in New York at smulholland3@bloomberg.net

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