Week of December 19th, 2011

In Los Angeles, clothing makers are trying to ride a growth wave, if only they could find people to hire

High-frequency trading (HFT) is when sophisticated computerized algorithms buy and sell stocks at speeds as fast as a nanosecond, hundreds of thousands of times a day. We talked to Sal Arnuk of Themis Trading. Every day, he and his guys trade millions of shares for pension funds, mutual funds and other firms that manage your money. For Sal, high-frequency traders are his worst enemy — a faceless computer who can beat him to every trade. And the Daily Pulse is down today on news that, barring a minor miracle, 2011 will be an all-time low for new-home sales.

Congress passed the payroll tax cut extension. What does this mean for backers of Fannie Mae and Freddie Mac? The “war on cancer” celebrates its 40th anniversary. Doula training programs are sprouting all over the country. Commentator Kat Ahn talks about what it’s like to have her parents move in. If you’re looking for frankincense this Christmas, the tree resin may be a little harder to find. And we look into why the NBA has become a Christmas tradition.

Transportation Secretary Ray LaHood says he won’t go along with the National Transportation Safety Board’s recommendation that states ban all use of cell phones while driving. The NTSB says phones, even hands-free models, are too risky, too distracting, could lead to accidents, and are just a bad idea. LaHood says he doesn’t think hands-free is all that big a problem for the moment. The problem: There isn’t any conclusive evidence either way. Also, four of the most-searched terms online in 2011 involve looking for Facebook.

It’s finally the holiday weekend. We look at two sides of this period of gifting: Giving and getting. We talk to two authors who have opposing views on spending: One doesn’t think you can buy happiness and another argues that you can buy happines (and economic growth). All those deals websites make it seem like you’ll never have to pay full price again — but one commentator says she’s sick of discounts. Wealthy philanthropists are pouring billions into the public education system. We look at the pros and cons of private money going into public education. And Jennifer 8 Lee shares how the average Joe can still make a big impact on their community too. Some are employing a new strategy: Deals websites. And we got our gang of personal finance experts to make their predictions for 2012.

Some economists say the government should take advantage of record low interest rates and borrow the money to pay for extending tax cuts and unemployment benefits. You heard right: more government borrowing. Just how will the payroll tax extension be paid for? Plus, a new poll says France is the world’s most pessimistic country when it comes to economic outlook. And we take a look at Ron Paul’s economic philosophy.

The jury is still out.

What have Wall Street economists learned from watching Washington lawmakers duke it out over things like extending the payroll tax cuts?

Some economists advocate borrowing the money to pay for extending tax cuts and unemployment benefits.

Consumer spending eeked up just 0.1 percent in November, despite stories of strong holiday sales. What does that mean about the health of our economy?

Who doesn't love a discount? Commentator Kristina Wong has benefited from group discounts on everything from meals to shoes to massages. But even she has a limit.

A new poll finds the French are as pessimistic about the economy as any country has been since 1978.

Retailers are sweetening their offers in the final days before Christmas, which could hurt their bottom lines.

Elephants also peeved

The payroll tax cut extension amounts to an extra $1,000 in the average workers' pocket for 2012. What does it mean for the economy?

The NFL has its Thanksgiving tradition, and the NBA has Christmas. Ever wonder why?

Congress has passed the payroll tax cut extension. We take a look at what the means for consumers. We have some numbers for you: Consumer spending grew just 0.1 percent in November, while orders for U.S. factory goods went up 3.8 percent. Plus, what is the most pessimistic country in the world? And find out which professions receive the biggest holiday tips.

Are you like me?

This year may go on record as the worst for new-home sales since anyone started keeping record.

Micro grants turn a tiny amount of donated money into something big. Commentator Jennifer 8 Lee describe how it works.

Last minute Christmas shopping?

In volatile times, traders become extra sensitive to news or rumors that could put them on the wrong side of a trade…even when the markets are closed for Christmas.

See what I did there? With the colors? Ah, I thought it was clever. Am I typing this or just thinking it? The FCC has approved a device, some kind of radio, from a company called KTS or Koos Technologies to operate on the so-called white spaces of frequency that exist between television stations. We’ve […]

A rare treat for listeners! Tess discusses the ins and outs of 2011 with all four of our regulars, Chris Farrell, Kathy Kristof, David Lazarus and Liz Weston.

Home builder tries a new inter-generational floor plan – with locking interior doors.

Presidential hopeful Ron Paul has stood out from other candidates for his throwback economic philosophy. But would his ideas work now?

The payroll tax cut is expected to be extended for another two months. How will lawmakers come up with the billions it's going to cost?

Mortgage lenders will pay higher fees to Fannie and Freddie to guarantee their loans. That pays for the extension of the payroll tax cut.

We have saved some money for a house deposit in 2-3 years. We have a 3.99% mortgage on our current place. Should we invest our down payment for our next house or should we pay off our current mortgage? We are both conservative investors. Tom, Boston, MA

New programs help low-income women train to become doulas and birthing assistants.

High-speed computer transactions are making the market more treacherous for smaller investors.

President Richard Nixon used the phrase "war on cancer" in signing the National Cancer Act of 1971. Forty years later, scientists say our understanding of cancer has outgrown a military analogy.

The news that didn't quite make the headlines. This week: Burger King loses its crown, pigeons may be able to do math and the shows with the most product placement.

New social networks are kind of like Nicolas Cage movies: almost always horrible and confusing and spirit-crushing but occasionally kind of neat. Pinterest seems to be the Raising Arizona of social networks. Experian Hitwise reports that the site had 11 million total visits during December, which is 40 times the number it had six months […]

Probably not too many of you would shed a tear if you were told there might be less parking lots in the future. It would take the perfect storm of legislation and innovation, but that’s what Conor Friedersdorf is talking about, if this whole driverless car thing takes off, over at the Atlantic: For the […]

We've heard of adult children moving back in with their parents. What happens when your parents move in with you?

The German car giant is switching off its email server half an hour after the end of the work day.

Drought, over-harvesting and pests threaten the aromatic resin.

Reviewing the week's headlines on Wall Street. This week: The details of the payroll tax cut extension just passed by Congress.

Does Christmas music help you get into the holiday spirit? It may also affect your wallet.

Nonprofits need money, deals websites e-mail people who want to spend money — it's a natural combination.

Yup, threat is real

Oil giant goes "Beyond Petroleum," but goes short on solar power.

In the U.S., Gross Domestic Product revisions are out today, and the hope is that the number will keep improving as long as problems in Europe, and Washington, don’t stunt that growth. In one North Carolina town, local business play nice to help each other out during recession. The Lone Star State loses as many as half a billion trees in 2011, and that’s not including the wildfires. And in this week’s Attitude Check, we look at how Americans are really feeling about the potential payroll tax cut extension.

Weekly jobless claims in the U.S. dropped to 364,000 last week. That’s 4,000 fewer than the week before and the smallest number since early 2008. Meanwhile on the Daily Pulse, even the mega-wealthy are trying to downsize and bargain-shop.

Let’s face it: We don’t have a whole lot of options for wireless carriers right at the moment. You could sign up with Verizon, AT&T or Sprint. You could also sign up for T-Mobile and hope for the best. All those companies will provide fairly similar rate plans, especially the big red company and the big blue company.

House Republicans agreed to the two-month payroll tax cut extension. Wall Street Journal reporter Jason Zweig talks about presidential candidate Ron Paul’s big investments. A new proposal wants law schools to disclose their graduates’ earnings. A group putting on ads trying to bring awareness to famine may not in fact be providing fundamental aid to Somalians. It’s been a rough year for Europe, but that’s not stopping Germans from celebrating the holidays. Commentator and podcaster Nate DiMeo writes an open letter to his daughter’s toys. And we hear about the science behind our gift preferences.

The European Central Bank yesterday printed $640 billion worth of euros, almost the same amount of money as the TARP program used by the U.S. government during the financial crisis in 2008.

A guitar shop in Pittsboro, N.C., helps its neighbors, and also receives a helping hand.

Bank of America will pay $335 million to settle mortgage discrimination charges against Countrywide Financial.

Amid economic strife across much of the country, citizens of Spain are buying up lottery tickets in the hope of winning big this holiday season.

The end of the year brings all kind's of top ten, top 100 and best of 2011 lists — but what kind of value do we get out of them?

Nomenclature-plosion set for next month

Millions are writing letters this month asking for toys. But one parent wants a toy company to add to their product line.

Austerity is the rule as many European nations deal with the continent’s debt crisis. Germany is doing relatively well.

Economists expect third quarter GDP grew at around 2 percent. But if all goes well, it'll be even higher in the fourth quarter.

Countrywide was accused of steering more than 200,000 black and Hispanic borrowers into risky subprime loans during the housing bubble. But is the practice really over now?

Hoping to put out the fire of negative reviews

BofA's costs mount as it settles a mortgage discrimination suit against subsidiary Countrywide Financial.

We speak to Diane Swonk about weekly jobless numbers, the payroll tax debate in Washington, and why politics effects economics more than ever.

What looks like a major success now may end up being more of a modest win in the future against the mounting debt crisis in the eurozone.

We speak to Frank Newport, editor-in-chief at Gallup, about whether Americans want the payroll tax extended, and what the controversy in Washington could do to consumer confidence.

From shredded paper to mp3 player

Unemployment claims have dropped to their lowest level since April 2008, but some economists say that's still not news to cheer about.

The largest electronics chain says it won't be able to fill many orders before Christmas.

At the urging of President Obama and Senate Minority Leader Mitch McConnell, the GOP-led House say they will pass a two-month payroll tax cut extension.

The Lone Star State loses as many as half a billion trees in 2011 — and that's not including the wildfires.

Down and out, many students at Casino College still hope for a shot at the big time

Jack Ablin discusses how today's economic numbers point to a brighter future.

Heal thyself, chip

Also, if you need to call someone, consider Callin' Oates!

What's behind the drop in unemployment claims?

In trying economic times, even the mega-wealthy downsize and bargain-shop.

Weekly jobless claims in the U.S. dropped to 364,000 last week. That's 4,000 fewer than the week before and the smallest number since early 2008.

A report on the high cost of law school, which many students borrow to cover, suggests schools should provide information on how their graduates fare in the work world.

My wife and I are transferring our Roth IRA accounts from our current institution to a new one in order to avoid a yearly maintenance fee that has been increasing every year. After selling off the funds, my current Roth IRA institution claims the funds must "settle" for a period of 3 days. Can you please explain to me what this means and if I could demand that they skip this settling and simply send me the distribution check so I can more quickly move it to the new institution? Patrick, Sheboygan, WI

Popular online ads for famine victims don't benefit actual famine victims.

Wall Street Journal's investing columnist Jason Zweig dissects the GOP candidate's investment portfolio.

Researcher Nathan Novemsky discusses his findings on gift giving. Fancy wrapping increases expectations — but also, disappointment — he says.

The country's biggest electronics chain is saying that "overwhelming demand for some products" could mean a late Christmas for some.

This may help your fear of the dentist

I'll tell you about this cell phones in cars thing right after I send this text…

Did Verizon pre-emptively crush competition?

“Man, those guys are fast!” says Microsoft

As Spain gears up for new leadership, the European Union wants airlines to reduce emissions or pay for permits allowing them to pollute. During the holidays, consumers generate as much as 25 percent more waste from packaging, unused holiday cards and wrapping paper, and other seasonal items. In some Atlanta neighborhoods, houses are selling for under 10,000 — less than the price of many used cars.

There’s a war going on all around the world right now. It’s not being fought in the air or on the battlefield. It’s in courtrooms all over the planet and it all has to do with the type of phone you might have in your pocket right now. Also, society is getting less happy, and YouTube tallies a trillion views for 2011.

If you’ve ever been really strapped and had to borrow money from friends or relatives, you know what it’s like to be a distressed European bank today. If you actually take the money, they know how desperate you really are. If you don’t take the money, well, you’re still stuck not being able to pay the rent. Today, the European Central Bank became that lender of last resort, offering a historic $639 billion to 500 European banks. the Daily Pulse is up today on news that taking the answer to the question, “What’s the best way to get from New York to D.C.?” has surprisingly become: “The bus.”

Gallup’s latest polls show consumer confidence is up for this holiday season. NBC, Verizon and the NFL are joining forces to live-stream the Super Bowl. Comic writer, producer, and actress Mindy Kaling shares a tale about the holidays. A bunch of new companies want to help you make money off your social networks. What if beer were a commodity at the bar? The European Central Bank announced it has given about 490 billion euros in cheap loans to European banks. And we hear from one unemployed worker whose benefits are ending next month.

for some reason

In an age of sky-high travel costs, long-haul commuters looking for an alternative are rediscovering the bus.

A budget is a good way to get control of our finances.

The price of beer fluctuates with demand at The Big Board bar.

Comic writer, producer, and actress Mindy Kaling shares a tale or two about the holidays.

Because if there's one thing the internet needs is more ads.

If Congress fails to extend a payroll tax cut, federal jobless benefits will stop too.

For when you get sucked in to a show