Week of August 6th, 2012

More college students are living large with gourmet cafeterias and state-of-the-art gyms — but that's not what's driving up college costs.

A host of tax increases for the wealthy and cuts to deductions and credits may cause some steep drops in Americans' incomes.

Owning that house with a white picket fence in the front yard is a huge part of the American Dream. But for a growing number of young Americans, homeownership is no longer a priority. And those who still aspire to become home owners are taking some unusual routes to get there — from pooling money with friends to building their own. Plus, we continue our series on religion and money with a look at the Mormon Church, which teaches quite a bit about personal financial.

Your friends and you have been through a lot together — but do you think you can buy a house with them?

A reporting day in the Texas Panhandle: Radiator Springs, an abandoned Main Street, cotton 101, and man named J.O.

The Department of Justice has decided not to press charges against Goldman Sachs for allegations that the company deceived investors. It looks like Manchester United’s ardent fan base didn’t show up for the soccer team’s stock debut in the NYSE. Cigar smoking is gaining popularity with a younger crowd. The underground water supply that people in Lubbock, Texas, had been able to rely on in the past is now quickly dwindling. And with the Closing Ceremonies of the 2012 Olympic Games nearing, normally pessimistic Londoners can now breathe an easy sigh — the Games have gone smoothly.  

The Justice Department drops probe into Goldman mortgage deal. Four years after the financial crisis, there’s still no criminal conviction on Wall Street.

Manchester United's IPO raised $230 million, but not much excitement. Why are investors coy about publicly traded sports teams?

Cattle rancher Ken Lenox says farmers in Missouri are struggling with the Midwest drought. Some have resorted to tapping wells they haven't used in decades to provide water for their herds.

Buying into the American Dream? Renting for life? For younger people, home ownership is less cut-and-dry than it was a generation ago.

London Olympics go smoothly despite trademark British glumness heading into them.

American teens are smoking cigarettes less these days. But the number of black high school students who smoke cigars has nearly doubled in recent years.

Republicans attack Obama over Bain cancer ad

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Tapping the Ogallala Aquifer decades ago turned the Panhandle into fertile farmland. Drought is reviving concern that water in the ground, like oil, eventually runs out.

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For shareholders and corporate boards in various industries, patience with CEOs might be wearing thinner. Data show that the average tenure of a CEO has dropped from 10 years to 8.4 years since 2000.

The Agriculture Department gives us new estimates for this fall's harvest today and the expectation is: it won't be pretty. Corn is America's biggest crop, though some experts are questioning whether that should still be the case. There's a debate over whether — and to what extent — Congress should step in to help. And if you think about things we're not going to be using in the years ahead, small change like pennies might be one of them; so might DVDs. But if you look at the success if the company Coinstar, which owns the DVD rental kiosk company Redbox, you might come to a different conclusion. Both businesses use machines to sell their products, rather than human employees.

The Consumer Financial Protection Bureau today proposed new rules for the companies that service your mortgage. The proposed reforms seem to mandate a big upgrade in customer service.

Reviewing the week's headlines on Wall Street and beyond. This week: The Department of Justice decides not to press charges against Goldman Sachs.

JCPenney's sales were down 22 percent last quarter — blamed in large part on the company's new pricing strategy. What's next for the retailer?

JCPenney is reporting big losses today. Sales were down almost 22 percent last quarter. That's the second straight quarter of steep declines.

Lobster prices are at rock bottom lows. And that's causing a cross-border fight between Maine lobstermen and Canadian ones. The Canadian lobstermen have been blocking their American counterparts from dropping off their catch at Canadian processing plants.

The Jamaican sprinter Usain Bolt won yet another Olympic gold medal last night in the 200 meter sprint. The 25-year-old has declared himself a "living legend."

The U.S. drought is fueling a corn shortage that's driving up prices around the globe. And yet, federal support for corn ethanol — a fuel additive — means some 40 percent of U.S. corn will be turned into ethanol this year.

Google has been hit with the biggest fine in the history of the Federal Trade Commission: $22.5 million. It has to do with cookies, bits of computer code placed on your browser when you visit a website. Even though the fine is basically chump change to the company, having made $36 billion in revenue last year, it’ll still sting. And it could result in more attention put towards responsible behavior from companies.

The success of the company Coinstar — which owns the DVD rental kiosk company Redbox — sheds light on the belief that things like DVDs and pennies have no future. Both businesses use machines to sell their products rather than human employees.

The Agriculture Department gives us new estimates for this fall’s harvest today and the expectation is: it won’t be pretty. Corn is America’s biggest crop, though some experts are questioning whether that should still be the case. There’s more bad news for the U.S. Postal Service. It lost another $5.2 billion last quarter. There’s a debate over whether — and to what extent — Congress should step in to help. And if you think about things we’re not going to be using in the years ahead, small change like pennies might be one of them; so might DVD’s. But if you look at the success if the company Coinstar, which owns the DVD rental kiosk company Redbox, you might come to a different conclusion. Both businesses use machines to sell their products, rather than human employees.

"Hispanic" would be an option for race, but some worry the change could have financial consequences.

But will the smackdown change online tracking for Google or anyone else?

Joe Gagnon, senior fellow at the Peterson Institute for International Economics, discusses the innerworkings of the Federal Reserve committee.

The Midwestern drought is taking its toll on the corn crop, but over the years, more and more acres have been devoted to corn.

Banks are still huge, financial scandals still break — even after the recession revealed flaws in the financial system. A commentator gives his short-and-sweet solution.

Fallen politician Bo Xilai championed the Xiaonanhai Dam but it threatens an ancient fish species. Critics say it's being built just to aid regional growth.

If fun means fulfilling, education definitely helps.

Agriculture Secretary Tom Vilsack discusses what the drought will mean for farmers and food prices, and the administration's plans to try and help.

Kai Ryssdal talks to Secretary of Agriculture Tom Vilsack to talk about how his department will help farmers affected by the drought. College costs are rising and now a new report shows that even upper-middle-class students are being hit hard. When a JCPenney shut its doors in San Fernando, Calif., recently, residents took to the streets. Bloomingdale’s is testing out a new virtual fitting room using the technology found in Xbox consoles. China correspondent Rob Schmitz reports on a pet project of Bo Xilai, a Chinese politician who’s now wrapped in scandal. And we kick off our new series on fun in the workplace.

The key to finding the perfect fit? Matching your shape to the right pair of jeans. A Bloomingdale's in California thinks it has the high-tech solution.

More upper-middle-class families are borrowing for college so their children can attend high-tuition prestige schools.

Karl Rove's Crossroads hits Democratic Senate candidates in Montana, Missouri, others

It's a familiar story — a small town rallies to protest a national retail outlet. This isn't that story.

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As many young adults struggle with finding a job and paying off student loans, and as families across the country work to pay off their mortgage, another group of people is even more worried about the future: those close to retirement.

The Wall Street Journal finds that upper-middle-income households with annual incomes between $94,000 and $200,000 are finding it more expensive to pay for college.

Wangxiang Group, China's biggest auto-parts conglomerate, has offered $450 million for a controlling stake in a Massachusetts electric car batteries company.

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In China, two reports this morning signal bad news ahead for the world's second largest economy. Factory output grew at the slowest pace in three years last month, and retail sales fell.

The world could face the worst food crisis in five years if countries like the U.S. start restricting exports of agricultural products. That's according to the UN's Food and Agriculture Organization, which says bad weather is causing a spike in global food prices that could be made worse if countries stockpile.

The big defense contractors — including Lockheed Martin and Pratt & Whitney — say they may have to send out mass layoff notices to their employees in a few months. That's because they're worried that hundreds of billions of dollars in expected cuts to the Pentagon's budget will have a big effect on them.

The scandal over British bank Standard Chartered is taking some interesting turns. This week New York's financial regulator charged the bank with concealing transactions for Iranian clients — breaking U.S. sanctions against Iran. Standard Chartered could lose its New York license, which would be devastating.

In Syria, rebel forces are battling with the government for control of the economic hub of Aleppo. At crucial moments like this in the Libyan conflict, there was assistance for the rebels from the U.S. and NATO — in both money and materials. The latest economic data out of China show a continued economic slowdown there. New numbers on factory output and retail sales came in below expectations this morning. And the defense industry is worried it may have to issue mass layoff notices if Congress doesn’t stop us from going over the so-called fiscal cliff in January. But what does the fiscal cliff mean for you?

The new deal between Starbucks and Square signals a new era of baristas knowing who you are before you enter the store. Starbucks announced it will use the Square payment system for all credit and debit card transactions starting this fall. Starbucks wants to encourage use of Square’s app that lets customers pay for drinks without even taking their phone out of their pockets, using a GPS system. The stars may have aligned for this kind of technology, but the privacy issues can get tricky.

The latest economic data out of China show a continued slowdown there. New numbers on factory output and retail sales came in below expectations this morning.

The tech company offers a pretty decent death benefits package for its employees.

Shannon Eastin will be making her historic NFL debut tonight as a temporary replacement. That's because the league locked out its regular refs as part of an ongoing dispute over salary and retirement benefits.

When fighting in Libya spread, U.S. and NATO planes were soon flying sorties to help out the rebel side — and it was costly. How a similar intervention in Syria might cost us.

Bo Xilai faces corruption allegations. His wife is charged with murder, but in Chongqing, the city he formerly administered, he still has admirers.

The new deal between Starbucks and Square signals a new era of baristas knowing who you are before you enter the store.

Oregon will take federal money to expand Medicaid, and try to cut costs too.

Money, business, dollars — all fine terms we use everyday, but boring! Here are some other ways to talk cash.

Taxpayers helped bail out Fannie Mae and Freddie Mac and now after some strong earnings, they may start paying us back. Starbucks has joined forces with mobile payment company Square, which leads us to ponder about the future of cash. Campaign ads on local TV channels in crucial swing states are pushing out small businesses that rely on TV exposure. Oregon is embracing the new health care reform to give health care access to the poor and disabled without breaking the bank. Diet pill sales are actually hurting the weight loss industry. And Freakonomics Radio’s Stephen Dubner warns about the risky side of summertime fun.

Some of America's favorite summertime activities may be fun, but they come with a lot of risks.

Tough economic times and smartphone technology could trim diet industry earnings.

Mobile payment firm Square will begin processing all credit and debit transactions at Starbucks. Could it signal the beginning of the end of cash?

Rising home prices contribute to profits for the bailed-out mortgage lenders. Higher home prices should help the real estate market and homebuyers, too.

Americans for Prosperity launches first ad of $25 million campaign

Small businesses are seeing higher TV ad rates, fewer time slots in key swing states.

With election day now less than three months away, the campaigns of both Mitt Romney and Barack Obama have amped up. One of their newest feats? Mobile apps.

Home prices are rising and the number of Americans behind on their mortgages has fallen to a three-year low — all encouraging signs of a rebound in the housing market.

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The charge: violating the U.S. Foreign Corrupt Practices Act. Pfizer's drug sales reps paid bribes to get Pfizer drugs used by doctors in countries like China, Russia and Bulgaria.

It turns out that bad weather elsewhere in the world is affecting global tea prices. The cost of good quality, black tea has shot up 41 percent on the wholesale market this year.

Why the reason for the jump in home prices and has the housing market really rebounded?

Job openings jumped to a four-year high in June: 3.7 million. Seems strange, considering we learned less than a week ago that the country has an 8.3 percent unemployment rate right now.

The Bank of England forecasts this morning the U.K. economy will not grow at all in the coming quarter. Across the channel, the French central bank says the euro's second-largest economy is headed for its own recession. And Germany's being infected by all this through its exports, which fell in June.