Week of May 7th, 2012

JPMorgan Chase has made a $2 billion blunder, its CEO Jamie Dimon announced. The loss involves bad bets apparently involving the bank selling insurance contracts against losses on corporate debt. A new study finds that millennials are less likely to be brand loyal. A group of climate activists, including a few teens, is suing the federal government over inaction on climate change. And we look at what it takes — and costs — to be a professional ballet dancer.

Two billion dollars. That’s how much money JPMorgan Chase says it lost in just the last few weeks, because of risky stock market trades. Maybe that’s why so many Americans have stopped investing. We’ll ask what the finance industry is doing to stop that behavior. College graduates are drowning in debt. And if you’ve had experience with the system we use to pay for higher ed, you know why. Arguments for and against financial aid and whether you have the right to go to college. Plus we’ll visit the local ballfield and a New York ballet studio and ask parents how much they’re spending to keep their kids on the field and en pointe.

Elections come and go and many issues change, but one seems to remain: electronic voting. Two years ago, four years ago, eight years ago — the story’s been about the same: the machines don’t seem ready for prime-time, but we’re using them anyway. Also, the anti-piracy warnings on your Blu-Ray discs get serious.

The Facebook “highlight” feature will allow users to pay a couple of bucks to promote their status updates in their friends’ timelines. This week’s Weekly Wrap focuses on the news from JPMorgan about its $2 billion loss. A new obesity drug is in line for approval by the FDA and many say that’s key for health care cost savings. Saudi Arabia, the world’s largest exporter of crude oil, wants to become the leader in renewable energy. Kai Ryssdal talks to Andrew Wallenstein from Variety magazine about the upfronts and the television ad industry. And it’s the 100th birthday of the Beverly Hills Hotel.

A group of teenagers is taking the U.S. government to court for not responding to climate change. Can individuals really use the government?

How did JP Morgan lose $2 billion on a single bet? Here's some plain English to help understand it.

My husband and I just refinanced our house at a great rate (15-year fixed mortgage at 2.875 percent). Our house payment is low and we can afford to pay more each month. Would the best use of our money be to pay down the principal on this low-interest loan or put extra away for retirement or for our children's college fund? We have two young children and are in our late 20s/early 30s. Thanks for your help! Katie, Helena, MT

As Facebook looks for new sources of revenue, it targets users who may want more attention and better placement for their posts.

UCLA law professor Eugene Volokh discusses his report, which was commissioned by Google, on the search giant's rights to pick and choose the search results it wants to display.

Huge trading losses by America's biggest bank strengthen advocates of the Volcker Rule and tougher bank regulation.

Elections come and go and many issues change, but one seems to remain: electronic voting. Two years ago, four years ago, eight years ago — the story's been about the same: the machines don't seem ready for primetime, but we're using them anyway.

New York bureau chief Heidi Moore discusses why JPMorgan's $2 billion blunder is affecting markets worldwide and how big a $2 billion loss really is.

The world's largest oil exporter isn't necessarily concerned about saving the planet. It's about being able to export even more crude.

A new study finds that millennials — people between the ages 18-34 — believe it's important to the get lowest price when shopping, which means giving up on brands they're loyal to.

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This week's podcast offers some highlights courtesy of Warren Sapp, Charlie Trotter and, yes, Brad Pitt.

Kai reviews listeners from our listeners this week.

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The news that didn't quite make the headlines. This week: 'Official' Dodgers fan ganja, recreating the world's oldest beer and Dominic Deville, the scary Swiss birthday clown.

Economist Chris Low discusses the impact of JPMorgan's $2 billion loss and whether we should be concerned that it could happen at other banks.

It has been more than a decade since the Food and Drug Administration approved a new pill to fight fat. Now, as the obesity problem grows, several new medicines could be on the way.

Europe correspondent Stephen Beard discusses what Europe thinks about JPMorgan's $2 billion blunder and how it might impact how European banks do business.

There's a lot of hype over the upcoming Facebook IPO. We have a reality check and advice for those of you waiting impatiently for its launch.

Variety's Andrew Wallenstein talks about the big trends on television next fall.

JPMorgan CEO Jamie Dimon has been known as a crusader against tighter financial regulation. How will the bank's $2 billion loss affect regulatory efforts?

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The comedy show starring Tina Fey and Alec Baldwin has never been a ratings smash. And with NBC now ranked fourth among the major TV networks, it needs to find a way to gain more viewers.

It's striking how well the old rules for managing money hold up. We forget that these insights were forged during scary times, such as the Great Depression of the 1930s and the Great Inflation of the 1970s.

The U.S. could be on the "cusp of an entrepreneurship boom — not in spite of an aging population but because of it."

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We look at the JPMorgan Chase debacle that caused a $2 billion loss and explore how it may affect European banks and financial regulation efforts. Plus, meet the trader the losses are being attributed to: the London Whale. A new study says millennials are less likely to be brand loyal. And we look at young activists who are suing the government over climate change and the costs of dancing ballet.

The well-regarded JP Morgan Chase CEO has been talking big talk about how well the bank managed its risk. But this week, we saw he didn't walk the walk.

Hollywood's famous pink palace turns 100 and tries to maintain its celebrity in a town of new faces

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Reviewing the week's headlines on Wall Street and beyond. This week: Oh how the might have fallen — JPMorgan's $2 billion loss.

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JPMorgan's losses are being attributed to a London trader named Bruno Iskill, also known as the London Whale.

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So how do Americans really feel about the rich? Gallup reveals the latest data from its polling. JPMorgan Chase announced after the closing bell today that it had lost $2 billion on, essentially, bad bets. Apple has agreed to help pay for improvements to Foxconn factories in China. Meanwhile, New York City is now the fastest growing area for tech companies. Kai Ryssdal talks to Andrew Liveris, CEO of Dow Chemical, about getting U.S. manufacturing back on track. And reporter Amy Scott continues her series on poverty and education, visiting a Cincinnati school that also provides basic health care for its students.

President Obama is counting on fundraising support from Hollywood tonight with Mitt Romney out-raising him on Wall Street. Obama made waves when he came out in support of gay marriage, but how do Americans feel about it? U.S. imports and exports have hit record levels. The construction of a new highway between Illinois and Indiana has some residents on edge. And following the crash of a new Russian aircraft in Indoensia, what’s the state of its airline industry?

Facebook is courting investors this week for its upcoming initial public offering. But a new report from the Kauffman Foundation declares venture capital is broken — specifically, the method by which large “limited partners” supply the money venture capital firms invest. And it seems lately investments just aren’t paying off, and investors are pulling out.

As an exodus in the European Union becomes more a sure thing, two of London's largest bookmakers shut down the markets for bets on Greece leaving the E.U. and the existence of the euro in a few years.

On what were essentially bad and risky bets made by the bank. Still, CEO Jamie Dimon tried to play down the situation in today's conference call.

Cincinnati's Oyler School, is not just a center for learning. It is a Community Learning Center that brings together social services and education under one roof.

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A new report echoes what's been whispered around the industry for years: the model of funding startups through venture capital firms is not working any more.

Moving up is more likely in some states; education levels may make a difference.

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Tech giant Apple and its major supplier Foxconn say they will share the costs of better conditions for workers Chinese factories making Apple products.

According to recent Gallup data, Americans are split on legalized same-sex marriage. How might the issue play out among voters this election year?

New York is now the second most important U.S. tech hub after Silicon valley, based on startups and job growth, new study says.

Greece still hasn't formed a new government. And there's a lot of talk about the nation leaving the eurozone. How likely is that?

I am 26 years old and recently graduated from grad school. I have about $28,000 of loan debt, from both undergrad and grad school. My deferment is up next month, and without changing or consolidating anything, I will owe more than $500/month. I work for a non-profit and cannot make that high of a payment. I know I have some options for repayment and consolidation. I am trying to find a balance in which I am paying what I can afford each month, but not extending my loans so much that I am paying an absurd amount of interest. Elisa, Bozeman, MT

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The Marketplace staff offer their takes on what his commercials will be like.

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The president seeks more Hollywood cash now that GOP challenger Mitt Romney is cutting into his Wall Street donations.

One of Russia's passenger planes crashed into a volcano in Indonesia. Reporter Peter van Dyk discusses the implications of the crash.

Contrary to all the talk of the 1 percent and the 99 percent, Gallup polls reveal that Americans might not be so weary of the rich after all.

President Obama could raise as much as $15 million at a fundraiser in Hollywood. The fundraiser comes on the heels of his endorsement of gay marriage. We speak with Gallup's Frank Newport about how Americans feel about same-sex marriage. The Fed has approved three Chinese banks expanding into the U.S. And in other international news, we take a look at the ongoing woes in the eurozone, Russia's troubled aviation industry, and a territorial dispute between China and the Philippines.

The Commerce Department reported the U.S. bought a record amount goods from overseas in March. Meanwhile, U.S. companies sold a record amount of stuff overseas. All told, it adds up to a soaring trade gap.

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Andrew Liveris, CEO of Dow Chemical, talks about how the company is trying to change the images consumers have of the company and of science.

A disputed territory in the South China Sea is rich in oil and gas. China's tough stance reflects its growing military prowess.

Credit card companies already get a piece of the transaction when consumers use PayPal or Bango to make payments with mobile technology. But can they really compete in the new world of mobile payment?

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Fees matter. Financial companies love to talk about compounding returns. But fees compound too.

Lawmakers in Illinois are poised to take up a bill to hasten construction on a new expressway. But to get the land for the highway, lawmakers may use a controversial method known as quick-take power.

Jen Miller's face — and her money habits — mirror her mother's.

The roads of Nevada are going to be filling up with more cars — but not as many drivers. After extensive testing, Nevada has approved Google’s application to test driverless cars on public streets. So why go driverless? It could be safer — no worrying about distractions — and it could help traffic, too. Also, a new vacuum from Sharp makes us feel like we’re in “The Jetsons.”

Despite holding elections over the weekend, no new government has formed in Greece. That’s putting the future of its bailout in jeopardy. Here in the U.S., mortgage delinquencies are down. We look at how banks are faring adopting the mortgage settlement rules. The CEO of Charles Schwab discusses the mindset of today’s investors. And unlimited data plans, unlimited airline miles, lifetime subscriptions — is the all-you-can-eat model not a good one for companies?

The hoodie has gone from just being an article of clothing to a statement. We look at the evolution of the hoodie. The Postal Service will abandon a plan to close up to 3,600 post offices in response to an outcry by customers. Author Daniel Gross says the U.S. says that pessimism about the U.S. economy is unfounded, and that the rise of China and the developing world doesn’t harm the U.S., but helps us. Commentator Robert Samuelson argues that it’s not the rich who control Washington. And reporter Amy Scott begins a two-part series on poverty and education.

The cars are expected to drive better than people, with fewer distractions.

Kids who are well-prepared for kindergarten have a better shot at making it all the way through high school. But in poor neighborhoods, there are lots of obstacles. One Cincinnati program is fighting to remove them.

Author Daniel Gross says that pessimism about the U.S. economy is unfounded. The rise of China and the developing world doesn't harm the U.S., but helps us.

The big 49-state deal on mortgages was supposed to help clear the foreclosure backlog. So how are the banks faring now?

The hooded sweatshirt has become a charged symbol, depending on who wears it and where.

I am a 25-year-old college graduate with approximately $27,000 of student debt. I have been unable to find a job since graduating and am making $1,000 a month, give or take. I now have $1,500 in my checking and $1,000 in savings. This is the most money I have had at one time and am unsure how best to utilize it. My savings account is for emergencies. My budget allows for $150 a month of disposable income. Should I contribute what remains of my disposable income to the loans, save it or try to invest it? I am currently paying $100 a month to the loans to maintain activity. Thank you for your time. Nathaniel, Raynham, MA

The Portuguese government announced plans to abolish four national holiday to help ease that country's debt crisis.

Once again investors are focusing on Greece as the nation tries to form a coalition government. It looks like more turmoil is on the horizon.

Kate Warne, investment strategist at Edward Jones, discusses why profits are up at Macy's given all the things weighing on consumers, and the latest earnings from Toyota and Disney.

Foursquare has attracted 20 million users to its social network. To make money, it plans to go the Groupon route, but with personalized deals.

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