Dollars And Nonsense

Article – Businesswire

July 7 (BusinessDesk) – Stocks in the U.S. fell, erasing an early rally, on evidence of a slowdown in growth in the U.S. services sector.

While you were sleeping: Uncertainty for Wall Street

July 7 (BusinessDesk) – Stocks in the U.S. fell, erasing an early rally, on evidence of a slowdown in growth in the U.S. services sector.

In late trading, the Dow Jones industrial average fell 0.10%, the Standard & Poor’s 500 Index lost 0.23% and the Nasdaq Composite Index declined 0.51%.

Service industries in the U.S. grew in June at a slower pace than forecast, indicating the economy was beginning to cool entering the second half, according to the Institute for Supply Management.

The ISM index fell to a four-month low of 53.8, trailing the median forecast in a Bloomberg survey of economists. the report follows data last week showing a slowdown in manufacturing growth and smaller-than-forecast increase in jobs.

Among the most active stocks on Wall Street were Home Depot Inc, Lowe’s Cos and Macy’s Inc.

KKR & Co. revealed that its founders Henry Kravis and George Roberts will own 25% of the company, clearing the last major hurdle for a New York Stock Exchange listing.

Agricultural Bank of China Ltd’s initial public offering is raising $US19.2 billion in what may turn out to be the world’s biggest IPO, according to people with knowledge of the pricing for Hong Kong and Shanghai.

Longtime technical analyst Robert Prechter told Reuters he expected that as the U.S. economy sinks into a deflationary depression, stocks would plunge.

The Dow Jones could fall to between about 1,000 and 3,000 points over the next five to seven years, Prechter said. the Dow was trading at 9,754 in early afternoon.

“It is very clear there is substantial stock market risk,” said Prechter, who urges investors put their money in cash proxies such as safe-haven U.S. Treasury bills instead.

Prechter is known for his very bearish views on the economy and also for forecasting a big bull market in stocks in 1982 and for getting out before the 1987 market crash.

Over the near term, the U.S. dollar would remain under pressure against the euro and against the safe-haven Swiss franc, he said.

The Chicago Board Options Exchange Volatility Index, or VIX, which is known as Wall Street’s ‘fear gauge’, rose 2.49% to 30.87.

The Stoxx Europe 600 Index advanced 2.6%.

Across Europe, the U.K.’s FTSE 100 climbed 2.93%, Germany’s DAX rose 2.15 % and France’s CAC 40 gained 2.73%.

Among the most active stocks in Europe were Banco Santander SA, BHP Billiton, Rio Tinto and Balfour Beatty Plc.

U.S. Treasuries rose, pushing 10-year note yields toward their lowest level this year.

Ten-year note yields fell 3 basis points, or 0.03 percentage point, to 2.94% at 2.37pm in New York, according to BGCantor Market Data. Thirty-year yields decreased 4 basis points to 3.90%, while two-year note yields traded at 0.62%.

U.S. government bond yields are signalling almost no chance of the economy slipping into another recession even as stocks and commodities tumble, Bloomberg News reported, citing research from the Federal Reserve Bank of Cleveland.

The 2.34 percentage gap between yields on two-year and 10-year Treasuries is more than double the 20-year average and about the same as in 2003, just before gross domestic product rose 3.6%.

The so-called yield curve suggests growth won’t slow to less than 1% and about a 12% chance of a recession in the next year, Joseph Haubrich, head of the banking and financial institutions group at the Cleveland Fed, and Kent Cherny, a researcher, wrote in a July 1 report.

The Dollar Index, which measures the greenback against a basket of six major currencies, fell 0.55% to 84.08.

In mid-afternoon in New York, the euro rose 0.8% to US$1.2643, breaking through option barriers at US$1.26. the euro also briefly hit a two-week high against sterling, rising to as much as 83.41 pence.

The U.S. dollar fell against the yen and the euro after the ISM report. the greenback was last down 0.3% at 87.48 yen.

The greenback also fell against the Australia dollar after the Reserve Bank of Australia spurred traders’ appetite for high-yielding currencies such as the Australian dollar and the euro.

The Reuters/Jefferies CRB Index, which tracks 19 raw materials, fell 0.28% to 253.76.

Gold erased early gains to tumble to a six-week low.

Spot gold was bid at US$1,192.00 an ounce at 10.09am EDT (1409 GMT), against US$1,206.95 late in New York on Monday. U.S. gold futures for August delivery fell US$14.80 an ounce to US$1,192.90.

The US$1,200 mark is providing good support to gold, with physical demand emerging as prices slip further from June’s record US$1,264.90. But its swift retreat from that level has hurt some investors’ confidence in the metal, traders told Reuters.

U.S. copper futures rose to a one-week high.

Copper for September delivery rose 5.50 cents, or 1.9%, to settle at $2.9710 per pound on the COMEX metals division of the New York Mercantile Exchange.

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Scoop Business » Uncertainty for Wall Street

A debate has began in Washington DC about if SEC has the ability to regulate peer-to-peer lender Prosper. Banks are usually effectively cut out of lending with the peer to peer lending business model – generally used for charity purposes. the SEC believes that these companies should fall under their purview of regulations. Prosper, however, believes that this is not a correct ruling.

Article Resource: Peer to peer lending confounds the SEC By Personal Money Store

The basics of p2p lending

Peer to peer lending is a business model that is not entirely unheard of. Basically, an investor has direct choice over who they lend money to. A borrower can make a plea for money on the site, including their planned use of the money, their credit score, and personal story. Lenders can offer as little as $ 25 to each of these borrowers. the two largest p2p lending facilitators are both Silicon Valley startups – prosper.com and lendingclub.com. On average, these companies claim that investors make around 9 percent on their investments.

How p2p lenders are regulated

The lending on peer to peer loan websites are currently regulated by the SEC. the SEC claims that these lenders sell bonds, not loans. to regulate their business, Prosper is asking for the CFPA to have the rights to their business.

The difference between bonds and loans

A bond, generally known as a corporate bond, is a type of investment generally used by corporations and companies. A bond is basically a promise to pay a certain amount of money later in exchange for an amount of fast cash loans. Financial markets usually accept bonds as a market item to trade. In comparison to other loans, bonds usually have very low interest rates. Loans are a contract for money now that cannot be traded as very easily. Individuals are “sold” loans by banks, while corporations sell banks bonds.

SEC regulating peer-to-peer lending – Vox

40% of Indiana’s mortgage brokers have lost their licenses because they did not comply with a new law aimed at “raising the standards” of the mortgage lending industry. The law requires mortgage brokerages to “name a principal broker with at least three years experience who has passed a state exam and will oversee his company’s business affairs,” says BusinessWeek. Sounds reasonable, doesn’t it?

The Indiana Association of Mortgage Brokers worked with Rokita’s office and lawmakers in drafting the new law, said the group’s president, Mike Monaco of Merrillville.

“Make no mistake about it, we had one of the easiest entrance barriers in the country,” Monaco said. he said many of the brokers who have lost their licenses likely already had left the business because of the housing industry downturn.

The low standards likely were among the factors leading to Indiana consistently having one of the 10 highest foreclosure rates in the nation, Monaco said.

when you add in the 143 brokerages who voluntarily gave up their licenses, the total number of mortgage brokerages in Indiana has shrunk by half since July 1st.

If you’re interested in seeing a list of all the brokerages whose licenses have been revoked, you can click here (PDF).

40 percent of Ind. mortgage brokers lose licenses [BusinessWeek]
(Photo: stirwise )

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Oh Sh*t 40% of Indiana's Mortgage Brokers Lose their License

Finally, job prospects are looking up for spring college grads of the Class of 2010.

Employers plan to hire 5.3 percent more new college graduates this year than last, according to the National Association of Colleges and Employers. That’s a dramatic reversal from a year ago, when employers said they expected to hire 22 percent fewer new grads.

“This is the beginning,” said Ed Koc, spokesman for the Bethlehem, Pa., association representing corporate human resource executives and college placement services. “If the economy continues to improve, we expect more optimism by employers next fall.”

Kristen Beck, 23, graduating next month with a bachelor’s degree in industrial design from the University of Cincinnati, started her job search in February.

• Careerbuilder: Find a job

“It was scary,” she said. “A lot of the time you send out emails, and you don’t hear anything back.”

Beck sent out 50 copies of her portfolio and landed five job interviews and three job offers. She passed up two full-time offers for a three-month internship with a Silicon Valley-based designer of consumer soft goods, the field she wants to pursue.

“I’m confident in my abilities,” she said.

Katrina Jordan, interim director of the career development center at UC, agrees the job market for new grads is improving.

“We see a sliver of light in the tunnel,” she said.

Job postings at the career development center numbered 807 this spring, a 25 percent increase over last year, she said.

At Northern Kentucky University, Keley Smith-Keller, director of the career development center there, said her contacts with graduates indicates the job market “isn’t great, but it’s better than it was last year.”

She advises grads to use a variety of resources in their job hunts: faculty contacts, college placement offices, online sources and social networking.

“Don’t be afraid to accept less than your dream job,” she said, and don’t overlook volunteering opportunities to develop job skills and contacts.

Job demand varies depending on the type of degree.

“Accounting is steady and opening up a little,” Smith-Keller said. Although there’s a national shortage of nurses, the nursing market for new grads in Northern Kentucky is difficult, she added.

Since their 2008 merger, St. Elizabeth Medical Center and St. Luke Hospital have been able to fill openings internally. with the soft economy, many nurses are delaying retirement or have gone from part-time to full-time work.

Mallory Kuhlman, 23, of Burlington, graduated in December from NKU with a bachelor’s degree in nursing. Despite graduating near the top of her class and completing the Kentucky licensing exam, she hasn’t been able to find a job.

“I check St. Elizabeth’s website every day, but they’re not hiring new graduates,” she said. her provisional license from the state of Kentucky requires 120 hours of work experience before she can obtain full accreditation.

“It’s very frustrating,” said Kuhlman, who’s married to a Boone County sheriff’s deputy and waits tables at Famous Dave’s Barbecue while looking for a chance to practice nursing.

“One of the reasons I chose nursing was because of the job security and never having to worry about having a job.”

4 in 10 firms hiring

About 40 percent of 183 companies surveyed by the Employers Resource Association expect to increase hiring this year, said Douglas Matthew, survey manager for the Bond Hill-based non-profit that helps small and mid-sized companies with human resource issues and information.

Among new college graduates, technical and sales skills are most in demand, he said.

Another sign of improvement is an increase in on-campus recruiting, said Bill Froud, associate director of career services at Miami University at Oxford.

Campus recruiting visits to MU were up from 12 a year ago to 21 in April, the last month before spring commencements, he said.

Fall and early winter is the peak of the corporate campus recruiting season. but GE Aviation, as part of a GE corporate directive to increase new graduate hires, went back to campus earlier this year, said Justin Whitman, GE Aviation human resources manager.

“We identified some really solid candidates,” he said. in the end, the company hired an additional 60 graduates for its leadership development programs in engineering, finance, operations, information technology and human resources.

That’s on top of the 125 hired during recruiting visits last fall. Whitman said GE expects to continue stepped-up college recruiting this fall.

job outlook improves

A lawsuit that threatens to hamstring the state clean Electionslaw doesn’t appear to have slowed the flow of candidates seeking todip into taxpayers’ pockets to pay for their campaign.

With the may 26 filing deadline looming for the primaryelection, there are already 136 candidates seeking to run “clean.”That’s up from 99 at this time in 2008.

If the plug gets pulled on public funding, it will be up to thecourt to do it since a legislative effort to give voters a secondchance to weigh in – and maybe kill the funding – fell flat.

Maybe that’s not much of a surprise, since a lot of thelawmakers who couldn’t get around to putting the issue back on theballot are among the 136 signed up for public funds, along with alot of other high-profile races on both the Republican andDemocratic sides.

A federal judge ruled earlier this year it’s unconstitutional toprovide a dollar-for-dollar match in public funds to candidateswhose privately funded foes outspend them. the 9th Circuit Court ofAppeals is still trying to decide whether it agrees.

The first matching funds won’t be distributed until June 23, andthe ruling is expected by then, said Colleen McFee, clean electionsdeputy director.

NEW MATH

U.S. Senate candidate Rodney Glassman’s campaign sent out a newsrelease last week saying the candidate “brought in more than$500,000 in the first three weeks of his U.S. Senate campaign.”

That’s an impressive number. It took Congressional District 8Republican hopeful Jonathan Paton nine weeks to pull that off.

But wait. It turns out half of that was simply “raised” out ofGlassman’s own personal pocket tucked into his campaign pocket.

Meanwhile, it’s looking like Glassman might not get a free rideto the Democratic nomination, so he might just need some of thatcash a little sooner than he thought.

Randy Parraz, a political activist and labor organizer who’sincensed about the immigration law, also recently announced he wasjoining the race, as did former Phoenix New Times reporter JohnDougherty.

For now, though, the pair have a different set of numbers toworry about. Each has to get about 5,100 signatures by may 26 toqualify for the ballot.

Candles, cake and … cash?

On yet another Glassman fundraising front, Sasha Glassman made acameo appearance in her husband’s U.S. Senate campaign last weekwhen she asked supporters to donate money as a “birthdaysurprise.”

Sure hope this little mention doesn’t spoil the surprise.

Mrs. Glassman hopes supporters will pitch in $20,000 by Mondayfor a weekend birthday gift. Glassman turned 32 Friday, and Sashasent the e-mail request Thursday. A link in the e-mail takespotential donors to a special birthday fundraising site.

Sounds like a big-scale take on “I didn’t know what to get you,so here’s some cash” gifting. Maybe this week the campaign willaccept donations in those greeting cards made specifically to fitcash or a check.

Playing nice

Just when it seemed there was no hope for political civility,the state Democratic, Libertarian and Republican parties arepartnering in the Project Civil Discourse, a cause embraced by theArizona Humanities Council.

The three chairmen will all take part in the town hall this weekon the proposed sales-tax increase on the may 18 ballot. the goalis to demonstrate how an issue such as taxes can be discussed in acivil and respectful way.

The town hall is free and open to the public. but only if you goto Phoenix.

Contact reporter Rhonda Bodfield at rbodfield@azstarnet.comor 573-4243. Reporter Andrea Kelly contributed to thisreport.

Number of 'clean' candidates is up

Abraham (R-MI), Yea
Akaka (D-HI), Nay
Allard (R-CO), Yea
Ashcroft (R-MO), Yea
Baucus (D-MT), Nay
Bayh (D-IN), Nay
Bennett (R-UT), Yea

Bingaman (D-NM), Nay
Bond (R-MO), Yea
Boxer (D-CA), Nay
Breaux (D-LA), Nay
Brownback (R-KS), Yea
Bryan (D-NV), Nay
Bunning (R-KY), Yea
Burns (R-MT), Yea
Byrd (D-WV), Nay
Campbell (R-CO), Yea
Chafee, J. (R-RI), Yea
Cleland (D-GA), Nay
Cochran (R-MS), Yea
Collins (R-ME), Yea
Conrad (D-ND), Nay
Coverdell (R-GA), Yea
Craig (R-ID), Yea
Crapo (R-ID), Yea
Daschle (D-SD), Nay
DeWine (R-OH), Yea
Dodd (D-CT), Nay
Domenici (R-NM), Yea
Dorgan (D-ND), Nay
Durbin (D-IL), Nay
Edwards (D-NC), Nay
Enzi (R-WY), Yea
Feingold (D-WI), Nay
Feinstein (D-CA), Nay
Fitzgerald (R-IL), Present
Frist (R-TN), Yea
Gorton (R-WA), Yea
Graham (D-FL), Nay
Gramm (R-TX), Yea
Grams (R-MN), Yea
Grassley (R-IA), Yea
Gregg (R-NH), Yea
Hagel (R-NE), Yea
Harkin (D-IA), Nay
Hatch (R-UT), Yea
Helms (R-NC), Yea
Hollings (D-SC), Yea
Hutchinson (R-AR), Yea
Hutchison (R-TX), Yea
Inhofe (R-OK), not Voting
Inouye (D-HI), Nay
Jeffords (R-VT), Yea
Johnson (D-SD), Nay
Kennedy (D-MA), Nay
Kerrey (D-NE), Nay
Kerry (D-MA), Nay
Kohl (D-WI), Nay
Kyl (R-AZ), Yea
Landrieu (D-LA), Nay
Lautenberg (D-NJ), Nay
Leahy (D-VT), Nay
Levin (D-MI), Nay
Lieberman (D-CT), Nay
Lincoln (D-AR), Nay
Lott (R-MS), Yea
Lugar (R-IN), Yea
Mack (R-FL), Yea

McConnell (R-KY), Yea
Mikulski (D-MD), Nay
Moynihan (D-NY), Nay
Murkowski (R-AK), Yea
Murray (D-WA), Nay
Nickles (R-OK), Yea
Reed (D-RI), Nay

Robb (D-VA), Nay
Roberts (R-KS), Yea
Rockefeller (D-WV), Nay
Roth (R-DE), Yea
Santorum (R-PA), Yea
Sarbanes (D-MD), Nay
Schumer (D-NY), Nay
Sessions (R-AL), Yea
Shelby (R-AL), Yea
Smith (R-NH), Yea
Smith (R-OR), Yea
Snowe (R-ME), Yea
Specter (R-PA), Yea
Stevens (R-AK), Yea
Thomas (R-WY), Yea
Thompson (R-TN), Yea
Thurmond (R-SC), Yea
Torricelli (D-NJ), Nay
Voinovich (R-OH), Yea
Warner (R-VA), Yea
Wellstone (D-MN), Nay
Wyden (D-OR), Nay

The WSJ gets McCain's Gramm-Leach-Bliley vote wrong

Morning Outlook

Stocks are looking toward a lower opening on the Street a once again the circus that is Greece is causing global concern. I say who cares, the exposure is minimal and we should be focusing on the host of economic data points today as well as continued earnings. after a lull the first two thirds of the week, the economic calendar is full with housing, inflation and jobs data. in addition, we will be hearing from Verizon Communications Inc. (VZ), Microsoft Corp. (MSFT) and American Express Co. (AXP). So far in premarket action, Dow Jones industrial average futures are down 43, or 0.4 percent, to 11,016. Standard & Poor’s 500 index futures fell 6.80, or 0.6 percent, to 1,193.60, while Nasdaq 100 index futures lost 13.50, or 0.7 percent, to 2,012.00.

Wall Street is coming off of a mixed session Wednesday. the blue chips rose for the 3rd consecutive session, advancing 7.86 points, or 0.07 percent to 11,124.92. the S&P 500 Index declined 1.24 points to 1,205.93, a 0.10 percent drop, while the Nasdaq Composite Index rose 4.3, or 0.17 percent to 2,504.61.

Currencies and Commodities

The dollar fell 0.2093% at 92.9950 yen in the currency market. the euro depreciating 0.3955% at $1.3336 while the pound declined 0.0746% to $1.54. Gold dropped $6.50 at $1142.30, while silver lost 0.57% at $17.97. Light, sweet crude fell 76 cents to $82.92 per barrel on the NYMEX; a 0.91% decline.

Economic Calendar

8:30 AM
Producer Price Index: the PPI is a measure of the average price level for a fixed basket of capital and consumer goods received by producers. This is a great indicator of the future CPI as producers will eventually pass the costs onto the consumer. the consensus for the month of March was for an increase of 0.4%, with a 0.1% increase excluding food and energy. February’s PPI reading came in at a decline of 0.6%.

8:30 AM
Jobless Claims: New unemployment claims for the week of April 17th, showing the number of individuals who filed for unemployment insurance for the first time. the fewer people filing for unemployment benefits, the more that have jobs, the more income in the consumer’s pocket, as well as a forecast on the strength of the economy. the consensus is for an increase of 460,000 for first time jobless claims, down from last week’s surprising spike of 484,000. the Labor Department attributed the rise in claims not to economic factors but to continuing administrative snags as offices catch up with claims during the shortened Easter week.

10:00 AM
Existing Home Sales: the number of previously constructed homes, condominium and co-ops in which a sale closed during the month. the consensus for March is a 5.25 million unit annual rate, which is an increase from a pace of 5.02 million in February, where sales fell 0.6% in the month. as a result, months’ supply jumped to 8.6 months from 7.8 in January and 7.2 in December. big number coming today ahead of the tax credit deadline.

Busy Day on the Street, Futures Decline | InvestorsLive

WILMINGTON, Del., Mar 10, 2010 (BUSINESS WIRE) –The Bancorp Bank Payment Solutions Group, a division of The Bancorp Bank (“Bancorp”), a wholly owned subsidiary of The Bancorp, Inc. /quotes/comstock/15*!tbbk/quotes/nls/tbbk (TBBK 7.96, -0.01, -0.13%) , today announced its partnership with EPS Financial, LLC to provide services to Drake Software customers.

Tax preparation customers of Drake Software can now utilize flexible and innovative systems provided by EPS Financial to enable electronic payment of their tax refunds. Taxpayers may choose from several options to receive their Federal and/or State refund using EPS’ new program known as e-Collect(TM). Options available to a taxpayer include receiving a fully reloadable personal use E1 Visa(R) Prepaid Card, receiving an ACH transfer, or returning to the tax preparer’s office to receive a check immediately after the refund has been processed. The E1 Visa Prepaid Card, issued by The Bancorp Bank, can be used anywhere that Visa debit cards are accepted and at thousands of ATMs worldwide. Cardholders are able to use their cards year round and reload their cards via participating load networks and direct deposit.

“Tax professionals nationwide are looking for the tools they need to build successful tax preparation businesses. Our e-Collect(TM) refund processing program, which includes the E1 Prepaid Card, enhances the user experience by offering multiple ways to receive tax refund proceeds, which offers greater flexibility to the refund recipient and the tax preparer. In these changing times in the tax industry it is important to provide flexible and sensible banking solutions,” says Clark Gill, President of EPS Financial.

“We are delighted to announce this partnership with EPS Financial and Drake Software as it is consistent with our commitment of developing innovative products to meet changing payment needs. Our goal is to simplify payment processes and EPS Financial has created a refund processing infrastructure that is unique to the industry and can assist tax preparers and taxpayers by providing solutions that will improve the tax preparation experience,” says Jeremy Kuiper, Managing Director — The Bancorp Payment Solutions Group.

For more information regarding The Bancorp Bank’s prepaid card payment solutions, please contact Lindsey Frank at lfrank@thebancorp.com or 952.449.6014.

The E1 Visa Prepaid Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. The Bancorp Bank; Member FDIC.

About EPS Financial, Inc.

EPS Financial, LLC provides refund processing solutions to the tax industry as well as prepaid card program management services. Founded in 2009, EPS has quickly established itself as a leading-edge service provider for the tax industry. The EPS system architecture combines a number of services and customer options onto one platform which provides a one stop fully integrated system to innovate and lead the industry. for more information, please visit www.epsfinancial.net.

About Drake Software

For over 33 years, Drake Software has provided tax preparers the tools they need to build their business and attract new clients. Today, over 30,000 customers use Drake Software. Drake delivered over 15 million federal and state accepted returns last year. The company continues to meet its goals of customer satisfaction and product improvement by encouraging open customer feedback, listening closely to evaluations from industry authorities, and backing the product with a knowledgeable and innovative programming and support team. for more information, visit DrakeSoftware.com, or call 800.890.9500.

About The Bancorp Bank Payment Solutions Group

The Payment Solutions Group is a division of The Bancorp Bank (“Bancorp”), a wholly owned subsidiary of The Bancorp, Inc. /quotes/comstock/15*!tbbk/quotes/nls/tbbk (TBBK 7.96, -0.01, -0.13%) , and is a leading issuer of network branded prepaid cards. It has consistently delivered outstanding results for its program partners. Long-standing relationships with card associations and industry leading networks and processors are the key to the organization’s success. for more information about The Bancorp Bank Payment Solutions Group visit www.thebancorp.com or contact Lindsey Frank at lfrank@thebancorp.com at 952.449.6014.

SOURCE: The Bancorp Bank

The Bancorp Bank Andres Viroslav 215-861-7990 andres.viroslav@thebancorp.com or EPS Financial, LLC Clark Gill 908-750-6001 clark.gill@epsfinancial.net or Drake Software John Sapp, CPA 828-524-8020 John.Sapp@DrakeSoftware.com

Copyright Business Wire 2010

The Bancorp Bank Teams Up with EPS Financial and Drake Software

JetBlue began charging $7 for a new pillow-and-blanket set that passengers can keep.

US Airways established processing fees for frequent-flier tickets that will cost fliers booking online $30 for a domestic flight and $40 for nearly all international destinations. Bookings by phone cost fliers $55 for a domestic itinerary, $80 for Hawaii flights and $90 for many international flights. A change in a Hawaii, trans-Atlantic or trans-Pacific frequent-flier ticket costs $250.

Airline fees are growing in number, rapidly increasing, and they anger or confuse many fliers. Airlines say the fees are necessary because they have been hit by a huge increase in the price of jet fuel.

“I think this a la carte method of squeezing travelers is basically bait-and-switch,” says frequent-flier Jeff Kahne, a San Antonio consultant. “They bait us with a base fare and then start packing on the fees.”

Airlines are “trying to offset costs,” says David Castelveter, vice president of the Air Transport Association, an industry trade group. Jet fuel will cost airlines $61.2 billion this year, compared with $20 billion last year, he says.

Higher fee revenue will help pay those expenses. US Airways said last week that it expects $400 million to $500 million annually from its a la carte pricing strategy, which includes charging for a first checked bag, non-alcoholic beverages and processing frequent-flier-award tickets.

Fees charged to passengers vary by airline, and the differences can be big, according to a USA TODAY survey of 15 airlines’ common charges for products and services available to coach passengers on domestic flights. Charges for 19 products and services were surveyed.

The survey found that:

• Only two airlines —— Southwest and Spirit —— have no extra charge for booking a flight on the phone. Cheaper ticket prices, however, may often be available online.

• More than half the airlines charge extra for a preferred seat, such as those with extra legroom, near the front of the cabin or on an aisle.

• most airlines do not charge a fee to book a free frequent-flier ticket online, but nearly all charge for booking on the phone.

• most airlines do not charge for a first checked bag, but only Southwest does not charge for a second one.

• an increasing number of airlines are charging for non-alcoholic beverages and snacks, and some meals are being sold for $10 or more.

Airlines’ fees, Kahne says, sometimes equal the airfare, “making the hop to Hoboken twice what we were told.”

The growing number of fees are sometimes hard to understand and not clearly disclosed to passengers, says Kate Hanni, executive director of Coalition for an Airline Passengers’ Bill of Rights, a consumer-rights advocate. “Confusion and anger is everywhere,” she says.

The ATA’s Castelveter disagrees that fliers are confused. “The airlines have been very clear in publicly communicating their rates and charges,” he says. “In addition, the introduction of service fees has been the subject of many media stories, which has increased even more customer awareness.”

In may, the Department of Transportation notified airlines to prominently display checked-baggage charges on their websites and in print advertisements. The agency says airlines with a fee for a first checked bag should mention it to consumers when they are booking a ticket by phone.

Regarding rising airline fees, the DOT said in a statement to USA TODAY that it doesn’t “have the authority to determine what an airline can charge for its services.” But it recognizes that “airlines and ticket agents are unbundling specific fees from their advertised airfares, and we will continue to monitor the industry to ensure these fees are clearly advertised and disclosed to passengers.”

The DOT says it has no authority over optional charges such as those for food and beverages.

JetBlue says its optional charge for a pillow and blanket is a good deal because fliers get a carry-on bag for the items and a $5 coupon from a national retailer. The pillows and blankets are of higher quality and more sanitary than those formerly provided at no charge, says spokeswoman Alison Eshelman.

Atlanta-based frequent-flier Martin Israelsen, co-founder of travel-booking website WebReserv.com, says he wouldn’t mind “paying a couple of bucks extra” for a pillow, but he shouldn’t be charged for a blanket on early-morning flights when it’s cold in the passenger cabin.

US Airways’ processing fees for frequent-flier tickets are “intended to help offset some of our rising expenses,” says spokeswoman Valerie Wunder. “On average, it costs US Airways $700 per round trip to carry a passenger.”

Many fliers, though, are unsympathetic.

Lori Strumpf, a consultant in Washington, D.C., who flies up to seven times weekly, says a ticket’s price should include bags, food and any seat on a plane. “I am a consultant who provides advice,” she says. “If I now said my day rate just paid for my infrastructure and my client had to pay extra for my advice, that would be ludicrous.”

Marc Belsher, a health care consultant in Newberg, Ore., says he flies about every two weeks and finds no fees acceptable. “Give me the price of the ticket, let me make an informed decision and don’t anger me by nickel-and-diming me on every bloody charge,” he says.

From booking to on-board snacking, rising airline fees add up

These charts shows fees that U.S. airlines commonly charge coach passengers on domestic flights. Fees may be different than shown, depending on an individual traveler’s circumstances. For instance, ticket-change fees can vary depending on whether a ticket is changed online, through an airline’s telephone-reservation system or through a travel agent. Preferred-seat charges may be higher on some routes or some types of planes, or may vary for different kinds of seats. Many airlines reduce or waive certain fees for very frequent fliers or for passengers who pay full coach fares. The information in these charts was up to date as of Friday, August 8. Help USA TODAY keep it current. Email updates and suggestions about this airline fees guide to USA TODAY reporter Gary Stoller at gstoller@usatoday.com

Airline AirTran Alaska American Continental Delta Frontier Hawaiian JetBlue Midwest Northwest Southwest Spirit United US Airways Virgin America 1 — Begins in September; 2 — On Boeing 717s that begin flying this fall; $65 on McDonnell Douglas MD-80s that will cease flying Sept. 8; 3 — Ticket bought from a travel agent may have different fee; 4 — some routes may have smaller fee Airline AirTran Alaska American Continental Delta Frontier Hawaiian JetBlue Midwest Northwest Southwest Spirit United US Airways Virgin America 1 — A fee may apply or could be higher if booking is made close to departure Airline AirTran Alaska American Continental Delta Frontier Hawaiian JetBlue Midwest Northwest Southwest Spirit United US Airways Virgin America 1 — Begins in September; 2 — Effective Sept. 18; $10/$20 until then; 3 — lower fee may apply for very frequent fliers Airline AirTran Alaska American Continental Delta Frontier Hawaiian JetBlue Midwest Northwest Southwest Spirit United US Airways Virgin America 1— $15 fee begins Oct. 1 on mainland U.S.-Hawaii flights; 2— $100 until Aug. 18 Sources: Airlines, USA TODAY research by Gary Stoller

Airlines' rising fees confuse and anger their passengers

Most everyone needs financial advice. the big question is how much.

There are tens of thousands of advisers out there, with varying levels of expertise, who charge varying fees for their services. And professional advice doesn’t guarantee good returns. you need look no further for evidence than the market collapse of 2008-9, when most people lost money, even those with the supposedly ideal mix of investments, hand-picked by their financial planners.

Still, financial advice can cover much more than choosing investments. Many of us could use as much help in managing our debts as in increasing our savings.

So how much advice do we need? At what point should we pay for it? And how much is it worth?

Wealthy families rely on a cadre of capable professionals who cater to them, and paying for advice is as natural as paying the landscaper. for everyone else, figuring out what’s needed depends, at least in part, on your stage in life, your goals and what you expect to receive in return. are you, in other words, a new college graduate with $50,000 in debt, $30,000 in income and a brand-new 401(k), or a 60-year-old trying to prepare for retirement? or someone in between?

You may need only some straight-ahead advice on how to invest your retirement money, or you may really want someone to make sure you stick to your plans — the equivalent of a fiscal trainer.

“Are you paying for investment advice?” asked Carl Richards, a financial planner and proprietor of a Web site called Behavior Gap. “Are you paying for life coaching? what is the nature of the financial advice?”

Once you figure out what you are looking for, it’s easier to determine how much help you need and where to look. Of course, there’s always the possibility that you may not need professional help — maybe you’re good with numbers, a disciplined saver and enjoy managing your own money. This column is not for you.

YOU WANT INVESTMENT ADVICE the reason most people seek out a professional is for help saving and investing for retirement. you should always start by reviewing what your employer has to offer, whether through a 401(k), a 403(b) or similar retirement plan. “When you’re saving for retirement, it’s fairly homogeneous,” said Martin Riehl, principal of asset management services at Vanguard. “You need to save a lot, you need to be diversified and you need to save on costs.”

Big retirement plan providers like Fidelity and Vanguard (along with several online brokers) offer online calculators and tools that will help you figure out how much you need to save and the types of investments you need, and may offer specific investment suggestions. “There are a lot of great ones,” said Sheryl Garrett, founder of the Garrett planning Network, based in Mission, Kan. “But they are tools, and they can be sharp objects,” she said, adding that the results are only as good as the information you put in.

If you’re looking for low-maintenance options, you can consider target-date funds, whose investment mix becomes increasingly conservative as you near retirement. This eliminates the need to rebalance your portfolio, or invest in any other funds. Just be sure the percentage of stocks in your target-date fund corresponds with your risk tolerance.

But if you’d like recommendations tailored more closely to your situation, more 401(k) plans are adding managed-account options, where you pay a fee to have your account professionally managed. Vanguard, for instance, uses Financial Engines, a well-regarded service, to build and manage investment portfolios (it can take outside assets into account, too). taken together, Vanguard’s funds (which cost 0.2 percent of assets, on average), coupled with its managed-account service (about 0.4 percent of assets), carry less than half the cost of the average mutual fund. both Vanguard and Fidelity offer similar services to clients investing outside a 401(k). But most of your contact with advisers will be over the phone or online.

Financial advisers also pointed to online services like MarketRiders.com, which offer an inexpensive way to build and manage a portfolio of exchange-traded funds, which are like mutual funds but trade like stocks. There are also a number of financial advisers who focus on investment services only. Rick Ferri, of Portfolio Solutions, for instance, charges 0.25 percent of assets to build and manage a portfolio of index-tracking investments, though there is a minimum charge of $2,000 a year per household.

YOU WANT A FINANCIAL CHECKUP even the most die-hard do-it-yourself investors could use a second opinion, and everyone could use a periodic checkup to be sure they’re on track. Major life events may call for a change in plans, but not necessarily a full-time financial steward.

“I think very few people need a full-time financial planner,” said Ms. Garrett, whose network includes a group of 300 certified financial planners who charge hourly or flat fees. “There are people who do, like the proverbial little old lady from Peoria whose deceased husband took care of all the finances, or maybe you’re a very busy individual who doesn’t want to be bothered.”

Ms. Garrett said she wasn’t opposed to the idea of paying a certified financial planner a percentage of your total assets, often 1 percentage point, for comprehensive financial planning. “I just think it’s being way oversold, and the price is pretty steep.”

How much time do you need? That will depend on your situation, though Ms. Garrett said that four hours may be “luxurious” for those with relatively straightforward planning needs. Hourly planners’ rates will vary on geography and expertise.

As with anything else, Ms. Garrett said not to go for the cheapest or the most expensive — and to keep in mind that experienced planners may charge more for their time but may work faster.

YOU WANT FULL-TIME HELP If you want someone to help you every step of the way, or you want to delegate money management to a professional, you might consider a fee-only certified financial planner (one of the most rigorous professional designations) whose philosophy meshes with yours. These professionals are unbiased in the investments they choose because you pay them a percentage of your assets. Many financial experts say they believe that full-time planners are worth their fees, because of the money they may save you on the common mistakes investors are prone to make, said William Bernstein, author of “The Investor’s Manifesto: Preparing for Prosperity, Armageddon and Everything in Between” (John Wiley & Sons, 2009).

Hiring a full-time adviser is not unlike hiring a physical trainer — someone who can teach you the proper diet and routine, and push you a little further than you may be willing to go on your own. “You should save to the point of discomfort and maybe beyond, and that is not something people will do unprompted,” said Jim McCarthy, head of client advisory and retirement services at Morgan Stanley Smith Barney.

One reason some people are willing to pay a full-time planner is that they know they can call at any time without being on the clock. mr. Richards, who runs the Behavior Gap site, said his clients had told him they called him first when they had a question or a calamity because they knew he wasn’t “starting a stop watch.”

“You don’t fix emotional problems with logic, you fix them with trust,” he said. “And that is really difficult to do, to build that over the phone if you aren’t having an ongoing relationship.”

He argued that most people needed an adviser of some sort. “Unless you wake up and see Warren Buffett in the mirror, it might be worth it to pay someone to stay the course.”

For Financial Advice, Arriving at the Right Dosage