Louis J Sheehan 80213

WHY IS GOOGLE SUCH A BIG DEAL (BESIDES ITS STOCK PRICE)? HOW CAN BIG VANS BE MADE SAFER? HOW CAN YOU AVOID GENETICALLY MODIFIED FOOD? HOW MUCH MONEY SHOULD I ADVANCE TO A HOME IMPROVEMENT CONTRACTOR? DID THE NY TIMES DISRESPECT VETS EVEN ON VETERAN’S DAY? HOW MUCH MONEY SHOULD I KEEP IN STOCKS AFTER RETIREMENT? AND OTHER QUESTIONS AND ANSWERS

Herb Denenberg Column for November 12, 2007 1.
Q. Why is Google such a big deal? I noticed its skyrocketing stock price, but what explains that?

A. It is simply the king of the search engines, which is one of the keys to the Internet, the World Wide Web, and the new digital age of information and e-commerce. Consider a few statistics. In August of 2007, more than 750 million people 15 years old and older conducted 61 billion searches on the Internet. That’s about 80 searches per person. Of those 61 billion, 37 billion used Google, giving it about 60 percent of the market. That means Google has a huge opportunity for advertising and for other applications of its search engine dominance. It can also sell its search capability to other Internet sites.

2.

Q. Is there anyway to make those big 12- and 15-passenger vans safe?

A. The first thing is to have passengers in them fasten their seat belts. According to the National Highway Traffic Safety Administration (NHTSA), 80 percent of people who died in crashes of 15-passenger vans were unbelted. Other reforms, advocated by Joan Claybrook, former head of NHTSA, are building more stable vans that are less prone to rollover (requiring redesigns) and stronger roof-crush standards. GM is also introducing a tougher laminated glass on van windows to make ejection unlikely. Ms. Claybrook says that GM vans are the best on the market for the ability of their rear axles to handle added weight. This was all recently reported by Newsday.

3.

Q. How can you avoid genetically modified food, which is now in most of the foods sold in supermarkets?

A. There is no label indicating food is genetically modified, so the only way to avoid such food is to buy organic, which doesn’t allow the use of genetically modified foods or ingredients. Of course, you could call the manufacturer. And it is good strategy to avoid processed foods as much as possible, thus getting healthier foods and also cutting your chances of getting genetically modified foods.

4.

Q. I know you hit the New York Times and the mainstream media hard for disrespecting veterans and heroes by not reporting the awarding of the Medal of Honor. Did they at least come through on Veteran’s Day?

A. No. The anti-military, anti-war bias of the New York Times is so deep and vicious that even on Veterans’ Day, it did not have the simple decency to honor our veterans. In its Sunday issue on November 11, 2007, unlike decent papers, it had no front-page story on veterans, no picture on the day or its celebration, and no editorial on the subject. In contrast, the New York Post had an editorial, “In the Nation’s Defense.” The New York Daily News also ran an editorial entitled “How Soon We Forget.” The Morning Call, a small paper in Allentown, had a front-page story on veterans, and then in its editorial section, devoted two full pages entitled “Thank You, Veterans.” On Friday, November 9, 2007, the Bulletin (which doesn’t publish on Sunday) had a front-page picture of the famous Iwo Jima flag-raising scene, and had a column on the U.S. Marines as our premier expeditionary force.

5.

Q. How much money should I give a home improvement contractor when signing the contract?

A. Here’s some advice from the Delaware County Office of Consumer Affairs: “Do not give any contractor a large sum of money prior to the day the work will begin. A small deposit of $50.00 or so is in order when signing the contract.” I’d add many contractors don’t require any advance payment. In addition, the rule might vary depending on the size of the job and how much material the contractor has to buy. But a good rule to fall back on is not to part with cash until the work is done and done right, and certainly check out any contractor in advance. A bad one cannot only take your money but severely damage your property. The Delaware County Office also says: “Pay for your home repairs by check – NOT CASH. Also, do not make the check payable to anyone other than the name on the contract.” An even better method of payment is by credit card because of the remedies it provides if the work is not delivered as promised.

6.

Q. How much of my retirement money should I keep in stocks after the date of my retirement?

A. As a general rule, Kiplinger’s Personal Finance Magazine’s Retirement Planning 2007 issue recommends 50 percent in stocks to stay ahead of inflation. I’d add that is a general rule, which probably should be tailored to your individual situation.

7.

Q. Does seafood deliver any substantial amount of vitamins and minerals?

A. I scanned a book on seafood for you, and only a few seafoods deliver vitamins and minerals on the high end. One is the alligator (which I doubt you eat very often). One serving of alligator has 100 percent of the “Daily Value (DV)” for calcium and 50 percent of the DV for iron. Other seafoods may have up to 30 percent of the DV for certain vitamins and minerals. For example, mussels have 30 percent of the DV for iron and 20 percent of the DV for calcium.

8.

Q. Can an illegal (undocumented) worker sue under federal employment laws?

A. Many of the most litigated federal employment laws define employee broadly, without limitation: “any individual employed by an employer.” This means that the illegal alien can sue an employer for violation of various federal employment laws. However, such suits may not be common, as illegal aliens usually don’t want to expose themselves to deportation and encounters with those who regulate immigration and homeland security.

9.

Q. I love lox and its salty taste. But I want to cut down on the amount of salt and sodium I consume. Would it help to switch to baked salmon instead of lox?

A. The sliced lox of one company has 2,130 mgs. of sodium in one serving of three slices. That is ridiculously high. In contrast, the same brand of baked salmon has 420 mgs. of sodium in a two-ounce serving. That’s not exactly low-sodium, but it is still dramatically lower than lox. However, I don’t think you’ll find that baked salmon has the same salty taste of lox. If you like that taste, you may want to consider using potassium chloride, the salt substitute, instead of salt. Morton’s is the most widely sold salt substitute. Also, as you probably know, nova is a lower-salt alternative to lox.

10.

Q. Whatever happened to the criminal charges against that most famous class-action lawyer, Bill Lerach?

A. He entered into a plea agreement and was sentenced to between one and two years in jail with a fine and forfeiture totaling $8 million. His plea agreement does not require him to cooperate in the continuing investigation. That’s unusual. This was reported on in CFO (Chief Financial Officer) magazine (November 2007).

11.

Q. I’m finally getting ready to go from my old point-and-shoot film camera to a digital camera. Am I going to find the digital on the delicate side and perhaps less reliable?

A. No. Consumer Reports finds that “Digital cameras have been among the most reliable products in our surveys, regardless of brand.” Of course, you don’t want to drop or otherwise abuse any camera, digital or otherwise.

12.

Q. Are novelty motorcycle helmets safe?

A. No, according to the National Highway Safety Administration. It said a rider wearing one of these novelty helmets would be likely to sustain a brain injury and/or a skull fracture. For safety use a helmet certified by the US Department of Transportation, with a label indicating such certification. There are other good certifying organizations, such as Snell.

13.

Q. Is there any end to the outsourcing trend for information technology workers?

A. Bob Preston of the magazine, Information Week (October 29, 2007) points out that salaries are going up in India and China, making outsourcing less advantageous. In addition, U.S. and European customers are demanding more local workers because of concern about communication, business culture and security. This is all putting pressure that cuts outsourcing and drives up demand for local tech workers. In fact, Preston points out U.S. tech wages are near an all-time high. Currency fluctuations are also contributing to this trend.

14.

Q. Is there an easy way to buy gold?

A. The easiest way I know of is through an ETF, an exchange traded fund. The company holds gold, and you can buy and sell its shares, without the need to take possession of gold. This is a recent development.

15.

Q. Before you take one of these long cruises or guided tours do you have to meet health requirements?

A. I’ve never seen the tour operator actually check on health. But a good tour operator will indicate the health requirements of the trip. For example, one tour sponsored by the Harvard Museum of Natural History has a detailed statement about health requirements that includes this: “We consider this to be an active program, which requires you to make a realistic health assessment. Prior to traveling, we suggest that you visit your personal physician for a check-up, so that you may discuss your ability to participate in this type of journey. All participants are expected to be in active good health, to enjoy traveling as part of a group, and to be ready to experience cultural difficulties with grace. Walking and climbing stairs are required in many hotels and airports, to board the aircraft, and are part of many excursions. Any physical condition requiring special attention should be reported in writing when the reservation is made.”

16.

Q. I read that Merck set aside $1.9 billion for litigation costs arising from its marketing of the drug, Vioxx. Do plaintiffs’ attorneys spend that kind of money?

A. Maybe not that kind of money, but they have to invest big bucks and on a contingent basis. The Wall Street Journal (November 10-11, 2007) reported that the plaintiffs’ firm that developed the litigation spent $100 million. When litigation is that expensive, you have to wonder if something is wrong with the system.

17.

Q. I like shopping for women’s shoes online. Do any sites pay for returns?

A. According to ShopSmart (October/November 2007), a publication of Consumer Reports, two do: Piperlime.com and Zappos.com. They send easy-to-use prepaid UPS labels for return without any cost to you.


Herb Denenberg is a former Pennsylvania Insurance Commissioner, professor at the Wharton School, and Pennsylvania Public Utility Commissioner. He is a member of the Institute of Medicine of the National Academy of Sciences and is a board member of the Center for Safe Medication Use. He is an adjunct professor of insurance and information science and technology at Cabrini College. You can write Herb at POB 7301,St. Davids, PA e-mail him at hdenenberg@aol.com or reach him at his two Web sites: thedenenbergreport.org or denenbergsdump.org Louis J Sheehan