American Morning
Is the battle of the sexes over?
The battle of the sexes is over. That's what a new report from California First Lady Maria Shriver declares.
The study says half the American workforce is now comprised of women, and almost 40 percent of women identified themselves as the "breadwinner" in their families.
It'll be the hot topic at the Women's Conference, hosted by Governor Arnold Schwarzenegger and First Lady Maria Shriver, which takes place today.
Suit: Madoff offices were 'North Pole' of cocaine
CNN
NEW YORK (CNN) - A new lawsuit alleges that convicted swindler Bernie Madoff financed a cocaine-fueled work environment and a "culture of sexual deviance," and he diverted money to his London, England, office when he believed federal authorities were closing in at home.
[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/CRIME/10/22/madoff.lawsuit/art.bernie.madoff.afp.gi.jpg caption="A new lawsuit alleges Bernie Madoff financed a sex-and-drugs workplace with investors' money."]
The lawsuit, filed Tuesday in New York's State Supreme Court, was brought on behalf of former investors and seeks unspecified punitive damages and compensation.
Beyond that, it offers a look at what the plaintiffs' attorneys say was once Madoff's multimillion-dollar empire and what is now his world in a federal prison in North Carolina.
Among the allegations in the 264-page lawsuit are that during the mid-1970s, Madoff began sending employees to buy drugs for company use.
The complaint alleges that some employees and investors were aware of the drug purchases, and that BMIS [Bernard Madoff Investment Services] was known by insiders as the "North Pole" in reference to the excessive amount of cocaine use in the work place.
Romans: Caution ahead
The Dow has lost almost 300 points in two weeks, after a monster rally all spring and summer. Now what?
Caution ahead. The jobless rate will remain uncomfortably high. Regional banks are failing. The big banks are reeling in credit. Businesses are coping with a new normal that means less credit for them to expand and hire. What should you be doing right now?
If you have your job: keep investing in your 401 (k), especially if you have a company match. Keep investing in the 529 for college. Concentrate on your job and doing well there. If you don’t have a job, expect an extension of unemployment benefits and remember that so many people are out of work, the stigma is vanishing. In short, we are living in historic times and the only thing certain is uncertainty.
Alan Greenspan, the former fed chief who presided over a historic period of stock market prosperity, says “we are in a recovery.” On ABC’s This Week, he said this quarter the economy could well grow 3 percent. That is a dramatic improvement from two years of treacherous recession. But the jobless rate will surpass 10 percent and could linger there before finally coming back down. His great concern is the 5.4 million Americans out of work for longer than 6 months. He worries the broader economy will suffer with so much idle talent.
The longer people are out of work, they can lose their skills or not keep up with new skills on the job. “What makes an economy great is a combination of the capital assets of the economy and the people who run it,” Greenspan said. ”And if you erode the human skills that are involved there, there is a real and in one sense an irretrievable loss.” For months we have been focused on the kitchen table tragedies of job loss. But the Maestro gives us something new and potentially troubling to think about.
Romans: Don't give your money away
Banks are jumping on every little mistake you make with your bank account, debit card and credit cards, and slapping record fees on your slip-ups. Congress and consumers are howling, but the fact remains bank fees are at record highs and rising.
[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/10/01/flag.dollars.gi.art.jpg caption="One quarter of consumers account for most of the tens of billions of dollars of bank fees, according to an FDIC study."]
A new analysis by Bankrate.com shows these fees are skyrocketing. Bounce a check? Expect an average charge of $29.58. Use your debit card but don't have enough money to draw out of the account? Wham! Bankrate says expect an average overdraft charge of $33.88.
If you are a repeat offender with your debit card, the overdraft charges go up, topping $36. And many banks are shuffling the order of your purchases, so you can get the overdraft charge again and again on the same day. That's the bad news.
Most people pay no fees
The good news – an FDIC study last year found that 75 percent of bank accounts suffer no fees at all. That means most of you out there are balancing your checkbook, not overdrawing your account, and paying your bills on time. The other quarter of consumers account for most of the tens of billions of dollars of bank fees. For them, obviously their finances are tight and they get caught in a vicious cycle.
Consider this: The purchase of a, say, $20 Barbie doll with a debit card puts the consumer over the limit on their account. They are slapped with a $27 overdraft charge. Two weeks later, the consumer pays off the Barbie and the charge in full. The FDIC found the annualized interest rate on that overcharge would be 3,520 percent.
Imagine that same Barbie on a credit card that you've paid late and are carrying a balance. Unless you pay off the card's balance in full right away, Barbie gets more expensive every month when you tack on $39 late penalties and interest rates as high as 30%.
And then there are ATM surcharges. If you use an ATM machine that is not owned by your bank, the fees are rising sharply. Bankrate.com says ATM surcharges rose a whopping 12.6 percent last year to an average $2.22.
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