Student loans

As part of a $40 billion deficit reduction package, Congress recently cut funding for student loans. Over five years federal student loan programs will be cut by $12.7 billion. The Stafford Loan interest rate moves to a 6.8% fixed rate from a variable rate, now about 4.7%. The PLUS loan has a fixed interest rate of 8.5%, while before it was a variable running about 6.1%.

Tsunami update

One year ago, the Asian tsunami began as an offshore earthquake with a magnitude of 9.0 on the Richter scale. The highest wave recorded was over 100 feet. Reported dead or missing are 222,587 people.

Union considers Knight Ridder buy–out

The Newspapers Guild–Communications Workers of America is planning to put together a worker–friendly proposal to buy nine Knight Ridder newspapers, and Columbia’s State is not included.

Holiday sales

US consumers spent more this year during the holiday shopping season than last year. For the period beginning with the Friday after Thanksgiving and through Christmas Eve, sales were up 8.7% over a year ago.

Ford health

United Auto Workers at Ford Motor Company ratified health–care cuts, enough to save Ford $5 billion on its long–term medical–cost liability. Ford’s health care covers 355,000 UAW workers, retirees, and dependents. For the first nine months of 2005, Ford’s North American operations lost $2.25 billion. Meanwhile in the UK, Ford’s Jaguar Cars lost about $1 billion in 2003 and almost $800 million in 2004. Ford recently injected more than $2 billion into Jaguar Cars to cover the losses and investment write–downs. Also in the UK, Aston Martin returned to profitability this year after reporting losses for 2004.

Houses for sale

From October to November there was a national 11.3% drop in new home sales, the biggest one–month reduction in 12 years.

Old tarmac week

United Airlines announced plans to buy an unspecified part of the assets of FLYi, also known as Independence Air. Dulles–based FLYi gained bankruptcy protection this fall in Delaware. United filed for bankruptcy in Chicago in December 2002. FLYi, then known as Atlantic Coast Airlines, was once a regional carrier for United.

Diamonds are not necessarily forever

The Gemological Institute of America recently fired four employees for allegedly taking bribes while rating diamond quality and value. In 2001, members of the Saudi royal family bought two diamonds for a total of $15 million, had them independently appraised, and discovered lower grades of quality and consequently lower values.

Construction documents mean construction

The Architecture Billings Index from the American Institute of Architects predicts construction spending six months in advance, which helps economists and analysts in their forecasts. The AIA started collecting the data in 1995, but the economists didn’t begin to use the data until a few years ago.

New York slaves

According to a current exhibition at the New York Historical Society, in the middle of the 18th century, one–fifth of New York City’s population was in slavery. In 1826, there were only 16 African–American voters in New York County.

Men of the Year

London–based Financial Times named Sergey Brin and Larry Page, the two 32–year–old founders of Google, the newspaper’s Men of the Year. Google has a stock market value of nearly $130 billion.

A very good year

Reportedly private equity firm KKR’s current fund has an annualized return of 70%, and Blackstone’s is coming in at 100%.

Taxi?

Starting December 22, Access Columbia Taxi was in business in Columbia, according to their press release. Unfortunately, in an effort to engage an Access cab, no Access telephone number could be found.

Give yourself some sticker shock

The Bugatti Veyron, a Volkswagon–made two–seat automobile with 16 cylinders and 1,000 horsepower, is expected in showrooms in the US early in 2006. Its top speed is 252.9 mph, and it can reach 62 mph in 2.5 seconds. It costs $1 million.

The Russians are buying

Aeroflot of Russia ordered at least 22 aircraft from Boeing, maybe as many as 28, and reports point to the Boeing 787. Aeroflot is also ordering aircraft from Airbus of Europe. Aeroflot is retiring much of its fleet of Russian–built planes.