Super Bowl ads you can't refuse

Audi pays homage to 'The Godfather,' Bud has a dog and pony show and Go Daddy gets racy (again). Here are the Super Bowl ads you'll be talking about on Monday.
By Ben Rooney, CNNMoney.com staff writer

Anheuser-Busch
Anheuser-Busch is regularly the largest buyer of Super Bowl spots and usually ranks well in the post-game polls. This year, the Bud brewer has purchased six 30-second spots that will be dedicated to Bud Light and one 60-second spot for good old Budweiser.
The 60-second spot tells the tale of a discouraged horse that doesn't make the cut for the brewer's trademark team of Clydesdales. But a spunky Dalmatian, another familiar Budweiser character, helps the horse stage a Rocky-esque comeback.
In one 30-second spot, three cavemen struggle to move a Stone Age ice chest filled with Bud Light and bicker in caveman talk. Another caveman appears with a gigantic stone wheel. What happens next? Well, the dawn of civilization comes another day.
Other ads Anheuser-Busch has in store will feature x-ray vision, fire breathing, wine & cheese and comedian Carlos Mencia.

Audi of America
Audi will return to the Super Bowl after a 20 year hiatus with a 60-second spot based on an iconic scene from the classic mafia movie "The Godfather." Alex Rocco, who played the character of Moe Greene, will star in the ad.
"We chose 'The Godfather' to anchor our Super Bowl ad because, at its core, the film is about a struggle between old and new power. In precisely that fashion, Audi represents the rise of a new force in luxury," said Scott Keogh, chief marketing officer, Audi of America in a statement.
The ad will promote the Audi R8 sports car, a sleek two-door that sells for more than $100,000, and was filmed outside a multi-million dollar mansion.
Audi's focus on targeting the luxury market is in stark contrast to concerns expressed by another automaker advertising in the Super Bowl. Hyundai of America said earlier this month that it was reviewing its decision to advertise during the big game because of softness in the U.S market. Ultimately, Hyundai decided to stay in the game with two 30-second spots.

Careerbuilder.com
CareerBuilder.com takes the phrase "heart-wrenching" to a literal extreme in one of its two 30-second spots in this year's Super Bowl.
The online job source plans to target disgruntled employees with an ad showing a woman who is stuck in a dissatisfying job but can't muster the confidence to quit. So, her heart does it for her.
In the past, CareerBuilder.com ads have used humor to reach their target audience but this year's approach will be more inspiring than funny.
"This year's campaign is more poignant and urges the sense of empowerment," said Richard Castellini, CareerBuilder.com's Vice President of Consumer Marketing.
The ads will be punctuated with motivational catch-phrases like, "Start Building" and "Self-Help Yourself."

Cars.com
Next time you go to buy a car, be sure to bring along an angry tribal warrior in case you need back up. That's the message behind one of Cars.com's Super Bowl spots.
In this commercial we see someone successfully close the deal on a new car, without having to resort to "Plan B," thanks to insight from Cars.com. What was "Plan B" you ask?
"I was going to have you fight Glandor," the buyer tells an unsuspecting car salesman.
Enter angry warrior.

FedEx
This year, it's FedEx's turn to show us how animals can cause havoc in the workplace.
Monkeys have been featured prominently in Super Bowl ads before, often running amok in an office environment. But the parcel delivery company decided to go with a more product-appropriate animal for this year's spot.
The ad depicts a well-meaning office clerk who tries to handle his company's shipping needs with carrier pigeons. Chaos ensues and we are reminded of how FedEx's portfolio of services can help small businesses.

General Motors
Last year, GM was one of the advertisers experimenting with user-generated ads during the Super Bowl. This year, however, the company ditched that idea, which most experts said was unsuccessful, in favor of a more simple approach to promote the hybrid version of its GMC Yukon SUV.
The ad will be animated in black-and-white and will depict a climber pushing a boulder uphill with a voice-over asking a number of rhetorical questions.
"Why push? Why change? Why grow? Why dream?"
These are some pretty deep questions for a Super Bowl ad. Not to mention the heady reference to Sisyphus. Thankfully, the voice-over answers them for you:
"Questions you don't have to ask yourself, when you never say `it's good enough.'"
This stripped-down approach is a bit of a departure from typical SUV ads. But the more philosophical tone may be designed to appeal to hybrid buyers.

Godaddy.com
Go Daddy has a reputation to consider.
Last year, the Internet domain name registrar was rejected three times by CBS for proposing commercials that were deemed inappropriate. This year, Fox denied ten of Go Daddy's submissions before settling on one, entitled "Spot On," which features Indy race car driver and "Go Daddy Girl" Danica Patrick.
But the ad was not the company's first choice, according to Bob Parsons, Go Daddy's CEO. So, Parsons decided to use Go Daddy's spot to show viewers how to see, "Exposure," the ad he wanted to air during the game.
"We are going to have to make lemonade out of lemons on this one. It's risky, but we've changed our whole marketing plan so we can leverage something out of this smokin' hot spot," Parsons said in a statement.

PepsiCo
The beverage maker has purchased two minutes of Super Bowl ad time this year but one spot promises to be slightly different from the others. Pepsi announced last week that its pregame ad "Bob's House" will be a silent ad.
"If a television commercial airs on Super Bowl Sunday and no one hears it, does it make a sound?" asks a Pepsi press release. Judging by the amount of buzz this ad has generated already, the answer is yes.
The 60-second commercial was created by Pepsi employees who are deaf and features dialogue in American Sign Language with written subtitles. The spot is based on a popular joke in the deaf community that involves a quiet street and loud horn honking.
In addition to advertising soft-drinks and potato chips, Pepsi's hope is to use the Super Bowl as a platform to create awareness of issues concerning the American deaf community.
"By bringing the world an ad performed by deaf employees in ASL, we feel like we've already scored the upset on Super Bowl Sunday said Clay Broussard, a PepsiCo employee and project lead on Bob's House.."

Salesgenie.com
After making what was widely considered to be the worst ad of last year's Super Bowl, salesgenie.com is planning a follow-up that it hopes will be even worse.
The company, which generates online sales leads and mailing lists, says that last year's ad was "a huge money maker," despite being a failure in most media polls, according to a salesgenie.com press release.
This year's ad features an animated salesman named Ramesh whose boss threatens to fire him if he doesn't double his sales. In the end, Ramesh finds salesgenie.com and becomes the salesman of the year.
Vin Gupta, chief executive officer of infoUSA, the publicly traded parent company of salesgenie.com, came up with the idea and wrote the copy for this year's ad, as he did last year.
"If it [the ad] positively impacts business like it did last year, we'd be thrilled to be the worst again," Gupta said in a statement.

White House ONDCP
The White House Office of National Drug Control Policy will use its first Super Bowl ad in four years to warn parents about the dangers of prescription drug abuse among teens.
"Though overall teen drug use is down nationwide, more teens abuse prescription drugs than any other illicit drug," the ONDCP said in a statement.
The Super Bowl spot is part of a larger campaign that will include print, online, community outreach and other advertising platforms.

Economy much weaker than expected

Gross domestic product slowed to a 0.6% growth rate in the fourth quarter, raising both recession fears and hope for another deep Fed cut.

NEW YORK (CNNMoney.com) -- Economic growth nearly ground to a halt in the last three months of 2007, according to a government report released Wednesday that showed the sharpest decline in growth since 2003.
The report raised fears of a recession and increased hopes that the Federal Reserve will make another significant interest rate cut today. But it included some worrisome inflation readings could end up tying the Fed's hands.
Gross domestic product, the broadest measure of the nation's economic activity, grew at an annual rate of 0.6%, adjusted for inflation, in the fourth quarter, according to the Commerce Department.
That's down from a final reading of 4.9% growth for the third quarter. Economists surveyed by Briefing.com had forecast GDP growth would slow to 1.2%.
The anemic growth in the fourth quarter matched the slowest expansion in the economy in the past five years. The report comes amid rising concerns that the U.S. economy is falling into a recession, with some economists arguing the downturn started in the final month of 2007.
Commerce Secretary Carlos Gutierrez told CNNMoney.com he still expects the economy to avoid falling into a recession, but the report is further proof that Congress must act quickly on an estimated $150 billion financial stimulus package passed by the House Tuesday.
"We're not happy with 0.6% GDP growth," he conceded. "This is exactly why we need to get the stimulus package out as soon as possible and get checks into consumers' hands."
The weak economic reading also comes as the Fed concludes a two-day meeting to consider whether or not to cut interest rates once again in order to spur the economy and ward off a recession. The central bank has already lowered rates by 1.75 percentage points since September, including an emergency 0.75 percentage point cut, also known as a 75 basis point cut, a week ago.
Investors are betting the Fed will cut rates at least another quarter-percentage point. And according federal funds futures on the Chicago Board of Trade, investors were pricing in 80% likelihood of a half-point cut as of mid-morning trading Wednesday.
"Today's GDP figures give the Fed the green light to cut the federal funds rate," said Mark Vitner, senior economist at Wachovia, which is one of the firms looking for a half-point rate cut.
Inflation worries rise. But while economic weakness may allow the Fed to aggressively cut rates, the inflation readings in the report could be a concern for the central bank. The so-called price deflator, which measures prices overall, rose at a 2.6% annual rate, up from only a 1% rise in the third quarter but in line with forecasts.
Perhaps of greater concern is that the so-called core PCE deflator - a more closely watched inflation reading that measures prices that individuals pay excluding volatile food and energy prices - rose 2.7%, higher than the 2.5% economists were predicting and up from a 2% reading in the third quarter.
Many economists believe the Fed would be more comfortable with this measure of inflation rising between 1% and 2%.
But Gus Faucher, director of macroeconomics for Moody's Economy.com, said the GDP report showed enough weakness across broad swaths of the economy that a recession now appears more likely than it did before the report. The Fed may have little choice but to go ahead and cut rates aggressively, he said.
"I think they're committed at this point," said Faucher. "The core PCE is certainly higher than what the Fed would like to see. But given the overall weakness in the report, it's hard to see where inflationary pressures are going to be coming from in the future. Given what the Fed said last week, I think we still get a half-point cut."
Widespread weakness. The slowdown in the housing sector shaved almost 1.2 percentage points off of the growth rate, as spending on residential construction fell at nearly a 24% annual rate.
Changes in non-farm inventories also shaved nearly 1.2 percentage points off overall growth, suggesting that businesses could be pulling back in anticipation of a slowdown. But Gutierrez said he believes that's a sign that businesses will pick up production in the first quarter in order to replenish those inventories.
The output from U.S. auto plants cut 0.9 percentage points off growth, marking the biggest drag from that sector in two years.
Personal consumption, a proxy for spending by individuals on everyday needs, added nearly 1.4 percentage points to growth. But that was a relatively weak reading for the fourth quarter, which includes the holiday shopping period.
The only time fourth-quarter personal consumption has grown at a slower rate than this in the past five years was in 2005, when the economy took a hit from Hurricane Katrina.

Oaxaca's hidden market treasures

Entrepreneur Susana Trilling runs a cooking school in Oaxaca, Mexico, where she guides students through the local market's culinary wonders. Tag along on our visit.

Sweets being sold at the Mercado de Abastos, Oaxaca's largest market.
Dried rojo peppers at Mercado de Abastos. These peppers are specific to the Oaxacan region and are an important ingredient in one of the local moles and several sauces.
Three different mole pastes sold by the Molinos del Sol at the Mercado de Abastos. There are a total of seven different moles.
This cow's milk cheese, queso fresco, is made fresh twice every day and is typical of Oaxaca.
Chapulines are fried grasshoppers seasoned with salt chile and lime juice. They are a popular crunchy snack.
Tomatillos at the Mercado de Merced. Tomatillos are used in moles, sauces and salsas.
Fresh meat in the Mercado de Merced. Meat is often sold without refrigeration at the open air markets.
Huitlacoche is Mexico's "truffle." It is a fungus that grows on corn and has a distinctive earthy flavor.
Cooking at the family run restaurant, Alberto's in the Mercado de Abastos.
Empenadas de flor de calabaza (empenadas filled with squash blossoms and cheese).
Squash blossom and black bean tacos roasting on a comal: an iron surface lying directly on hot coals.
Memela ready to be served: a large corn tortilla smothered with refried black beans, queso fresco and salsa verde.
Prickly pear gelato churned by hand and sold and the Mercado de Merced.

House OKs $146B economic aid bill

Fast-track measure would offer cash rebates to consumers in bid to juice growth. Fate of package in Senate uncertain.

NEW YORK (CNNMoney.com) -- The House voted 385 to 35 Tuesday to approve an estimated $146 billion stimulus package aimed at countering the slowdown in economic growth.
The legislation, which House leaders brokered last week after intensive talks with the Bush administration, faces an uphill battle in the Senate.
A number of senators have said they want to amend the plan. Both chambers have sent out flares indicating there will be hard-headed negotiating ahead.
The battle is likely to be conducted at high speed since lawmakers say they want a stimulus package delivered for the president's signature by mid-February.
The House bill calls for one-time tax rebates to go primarily to individuals making less than $75,000 and to married couples making less than $150,000. It would also provide temporary tax breaks for businesses that would let them deduct more of their investments in plants and equipment more quickly. And it contains two measures aimed at helping homeowners get or refinance mortgages.
Taking the lead in the Senate is Finance Committee Chairman Max Baucus, D-Mont. He has proposed a $160 billion package that the committee will debate and possibly vote on Wednesday.
The Senate proposal differs from the House plan in several key ways. The sticking points: Who should get the rebates? Should they go to senior citizens and more six-figure households? Should the bill help unemployed workers? Should efforts to ease the housing crunch be included, and how many tax breaks should businesses get?
Rebates would be smaller but go to more people. The Senate proposal would offer rebates to seniors whose primary income comes from Social Security. Under the House bill, rebates would go only to households with earned income.
The Senate proposal also eliminates income caps on who would qualify for a rebate, which means all tax filers, not just low- and middle-income households targeted by the House plan, would receive one.
Under the Senate plan, most tax filers would receive slightly less than they would under the House plan. For example, a married couple filing jointly that makes enough to be in at least the 15 percent tax bracket would get $1,000 under the Senate proposal versus $1,200 under the House bill.
Unemployment insurance. The Senate proposal would offer at least 13-week extensions on unemployment benefits. The House bill has no such extension.
Housing provisions. The House bill calls for the caps on the size of loans that may be purchased by Fannie Mae (FNM) and Freddie Mac (FRE, Fortune 500) to be raised from the current level of $417,000 to nearly $730,000 in the highest cost housing markets. It also calls for an increase in the size of loans that would be eligible to be insured by the Federal Housing Administration. The Senate proposal as mapped out by Baucus contains no such provisions.
Business tax breaks. The Senate proposal has the same breaks as the House bill but adds one more: the so-called net operating loss carryback (NOL). The NOL provision would extend to five years from two the number of years a company may apply its losses to past tax bills.

Yahoo disappoints, to cut jobs

CEO Jerry Yang says company faces 'headwinds' this year. Struggling search engine plans 1,000 job cuts in February. Stock sinks on weak 2008 sales guidance.

NEW YORK (CNNMoney.com) -- Search engine Yahoo announced it would lay off 1,000 employees by mid-February, even as it reported fourth quarter earnings Tuesday that beat expectations.
During the company's conference call with analysts, chief executive Jerry Yang warned that the company faces "headwinds" this year and confirmed the upcoming layoffs, which had been rumored for the past week.
Yang said the company would make the job cuts as part of a "workforce realignment."
The stock plunged more than 10% after-hours on the news.
Yahoo's sales came in at $1.8 billion, up 8% from a year ago. Excluding advertising sales that Yahoo shares with its partners, the company reported revenue of $1.4 billion, roughly in line with Wall Street's expectations of $1.41 billion, according to estimates from Thomson First Call.
The company reported net income of $206 million, or 15 cents per share, beating analysts' forecasts for 11 cents per share.
For the full year, Yahoo's revenue, excluding ad sales it shares with partners, came in at $5.11 billion, up 12% from a year ago. Total sales rose 8% to $7 billion. Full-year profit was $4.13 billion, a 10% increase from 2006.
But Yahoo also said it expects 2008 annual revenue, excluding sales shared with partners, of anywhere from $5.35 billion to $5.95 billion. Wall Street had been expecting sales of $5.9 billion before the report.
"While we will continue to face headwinds this year, we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009," Yang said in a written statement.
Yahoo is the number-two search engine in the world. But it lags arch rival Google by a wide margin. Google (GOOG, Fortune 500) reports its own fourth-quarter results Thursday. Yahoo also faces competition from social networking sites like Facebook and News Corp (NWS, Fortune 500).-owned MySpace. The company's own attempt at a social network, called 360, flopped.
Yang, who replaced Terry Semel as CEO last June, promised investors a 100-day review of the company shortly after taking over. Some analysts have said that investors are growing impatient with Yahoo as it continues to lose ground to Google and others.

The economics of Britney Spears

The troubled pop star is a substantial revenue generator for the multibillion dollar celebrity news industry.

NEW YORK (AP) -- In the days after the Britney Spears soap opera rode a police-escorted gurney to its apex, celeb-mag sales spiked, traffic jammed gossip Web sites, tabloid TV ratings rose and paparazzi photo prices surged.
For a growing number of people and businesses, Britney's saga is about money: every time she sinks to new lows, cash flows. And these days, no one is above the fray.
When a custody dispute devolved into a three-hour standoff at Spears' home Jan. 3, police officers and firefighters were pressed into duty. Television stations sent up helicopters, and cable news anchors reported the unfolding drama in real time. The Associated Press had two reporters working the story, with editors on both coasts updating it seven times throughout the night.
Spears is just one of many stars driving the growing multibillion dollar celebrity news industry. But the Spears story in particular, with a new twist nearly every week, has become a very profitable sub-sector unto itself.
"Britney is the most bankable celebrity out there right now, and she has been for the past year," said Francois Navarre, founder of the paparazzi agency X17.
Spears became a can't-miss tabloid topic after filing for divorce from second husband Kevin Federline in November 2006. Since then, she's been in and out of rehab, shaved her head, revealed a bit too much above the hemline, was arrested after a traffic accident, and lost custody of her kids (and later her visitation rights).
"The product for the tabloid industry is the unusual, and Britney has been delivering that consistently," said Dan Smith, dean of the Kelley School of Business at Indiana University.
At a time when advertising spending in traditional media is declining, celebrity gossip titles such as Star, Us Weekly and In Touch Weekly are growing. That helped overall newsstand sales for magazines edge 1 percent higher, to $2.39 billion, in the first half of 2007.
"The increase is almost entirely attributable to the growth of the celebrity magazine," said John Harrington, who runs industry consulting agency Harrington Associates.
The marketing of celebrity, or Mike the headless chicken
Any time a magazine can boost newsstand sales past its average, the revenue is booked nearly entirely as profit, Harrington said: "People prints 2.5 million copies and sells about an average of 1.5 million. If they have an issue that sells 2 million, the extra half million goes to the bottom line."
People, which takes a broader and less sensational look at the entertainment industry, dominates the sector in circulation, but that hasn't stopped such new titles as In Touch and Life & Style Weekly from elbowing in. Another newcomer, the U.S. version of Britain's OK!, has taken particular interest in Spears, putting her picture on the cover 54 times in the 103 issues since January 2006.
"An editor's dream is to have a real life soap opera unraveling in front of you, and Britney provides that every week," said Sarah Ivens, OK!'s U.S. editor. The magazine has a 10-person team in Los Angeles devoted to Spears coverage. "We're on constant Britney alert."
She wouldn't disclose the costs to the magazine, saying only that Spears has been "amazing" for OK!'s business. Publisher Tom Morrisy said Spears drives newsstand sales and helped the magazine's ad revenue more than double to $51 million in 2007. OK! expects to turn a profit in 2008, three years after breaking into the market.
US Weekly has been just as enamored of the star, putting Spears on nearly two-thirds of its covers last year, including each of the last 14. People has had Spears on the cover 10 times in the past 15 months.
And that heightened demand for Spears pictures has been a boon to photographers.
X17's Navarre said an exclusive shot of the star would sell for about $10,000 in the U.S. and generate thousands more in residuals. "She's the most expensive right now," he said. "For Angelina, for example, you divide by two or even three to get the price."
In contrast, the average celebrity shot fetches $125 to $700, according to Scott McKiernan, founder of ZUMA Press photo agency. He said residual fees on exclusives can push the value of a unique Spears shot well past $100,000.
Many of those images wind up on celebrity gossip Web sites, like TMZ and PerezHilton. The sites make money by delivering viewers to ads on their pages, typically receiving a fee for each 1,000 hits. Navarre said Spears boosts traffic to his Web site, X17online.com, more than any other star.
"During the ambulance incident, traffic doubled every hour," he said, citing internal server data.
MC Hammer: U can touch this Web site
X17, which owns the infamous picture of a bald Spears taken in February, has a team of photographers tracking her at all times. "For us, she's the star No. 1," Navarre said.
Television ratings show that a major Spears incident attracts viewers to each of the main entertainment news TV shows, too.
"All of us sustained a major ratings spike" when Spears was taken to the hospital two weeks ago, said Charles Lachman, executive producer of Inside Edition. "It happens every time with her."
It's more difficult to assess the economic gain for TV shows because they sell ads weeks in advance, with rates based on average expected ratings. If the show fails to deliver, it has to reimburse the advertiser, but there is no such compensation if ratings exceed expectations.
Suffice it to say that advertisers love the extra attention. "Anything that boosts ratings is a win-win for everyone," said Shari Anne Brill, an analyst with ad buyer Carat USA.
On the flipside, the Spears story isn't making money for everyone. There are costs involved, too. For instance, the increased scrutiny puts a burden on Los Angeles civil service units, which have to keep Spears safe and public spaces uncluttered.
The L.A. Police Department wouldn't estimate the extra costs Spears generates. Her ambulance incident last week was handled by officers already on duty. The fire department said it was considering charging Spears for the ambulance ride, but did not disclose how much.
Spears' numerous court appearances - for custody hearings, divorce proceedings and a civil case - have more measurable effects. Richard Barrantes, chief of court services division of the LA County Sheriff's Department, said when Spears and Federline were in court on Oct. 26, his office billed the court $2286.10 to cover the cost of extra security at the courthouse.
Hilton gives fortune to charity (not Paris)
The star's behavior may be eroding her own brand, as well. Spears remains among the most-recognized celebrities, along with Johnny Depp and Will Smith, according to Marketing Evaluations, the company that developed the "Q Score." But she is not well-liked. Her negative Q Score is at 66 - only Federline has a lower one among all celebrities - meaning two-thirds of people who know who she is give her a "fair" or "poor" rating. The average for female performers is 30.
Spears, who used to pitch for Pepsi but no longer fronts for any mainstream products, gets most of her income from music sales, augmented by several perfume lines and other side projects. Elizabeth Arden, Spears' partner in the perfume business, introduced a third Spears scent, "Believe," last fall.
So far, Spears' antics don't appear to have hurt personal earnings, which, according to court papers released in November, are roughly $737,000 per month.
"A good actor or musician can get away with some pretty bizarre stuff offstage as long as they keep delivering the goods in their focal profession," Smith said.
Spears seems to have done that, winning critical acclaim for "Blackout," her first studio album in four years. The record hit No. 1 on the charts last fall, although it faded quickly. Its headline single, "Gimme More," topped out at No. 3 on the Billboard 100.
Now that she's back in focus for offstage drama, her music is an afterthought. And at some point, most industry experts agree, the public will grow tired of the Spears story.
That doesn't mean the economy that sprouted around her will wilt.
"If it's not Britney, then it'll be Lindsay or Paris or some other person we haven't heard of yet," Smith said.

Help Wanted: Google

These cool job openings aren't just for techies. Are you an animal health expert? Lawyer? Submarine cable negotiator? Time to send your resume.

Animal Health Expert
Location: Mountain View or San Francisco
No, Google hasn't opened its own branded zoo - yet - but its philanthropic arm, Google.org, is looking for an expert in animal pathology to help evaluate potential public health investments (such as Avian Flu research). The ideal candidate will have at least five years of veterinary experience.

Software Engineer, Japanese Product Focus
Location: Mountain View, CA
Google announced its interest in mobile phones last spring, so it's no surprise that the company is looking for engineers with experience in the Japanese market, where cellphones are both a fashion accessory and a national obsession. Fluency in Japanese and C++ skills are required, and the ability to predict trends of Japanese schoolgirls a bonus.

Corporate Counsel, Music/Digital Media
Location: San Bruno, CA
Google needs help handling its ongoing legal battles with the content providers - chief among them Viacom - who sued the company last spring for posting unauthorized video clips on YouTube, Google's newly acquired video-sharing site. The company is looking for an experienced lawyer to negotiate licensing deals with Hollywood for both video and digital music. Expertise in copyright infringement is a must.

Strategic Negotiator, Submarine Cable
Location: Mountain View, CA
Google won't confirm rumors that it's building an undersea fiber optic cable across the Pacific Ocean, but the search giant definitely needs someone who knows how to negotiate good rates for cheap bandwidth. Google already leases submarine cables to deliver huge files at high speeds to its worldwide data centers, and as online video becomes more popular, Google's bandwidth needs will only grow. Expect to travel at least 50% of your time.

Director, Green Business Strategy and Operations
Location: Mountain View, CA
Want to participate in Google's "greenification"? The company is actively recruiting experts to lead its environmental strategy and initiatives. Responsibilities include researching renewable technologies and implementing energy-efficient measures at the Googleplex.

Mobile Wireless Application Developer
Location: Mountain View, CA
Are information-retrieval algorithms your thing? Google is looking for a few good developers to design, build and support applications for mobile phones. "We're always looking for superb and accomplished software engineers to help us achieve our goals," says Andy Rubin, the company's director of mobile platforms and creator of its new Android operating system.

Director of Other
Location: Mountain View, CA
Google is known for collecting experts in any field it wants. It already has on staff a chief economist, a former bullfight promoter and an epidemiologist who helped eradicate smallpox. Now it's looking for an expert in "other." That's Googlespeak for the last part of the company's famous 70/20/10 work ethic, whereby employees spend 70 percent of their time on the core business, 20 percent on related projects, and 10 percent on other projects of their own initiative. Coding in Java isn't a requirement, but you must be a successful "inventor and builder."

9 things you didn't know about Google

Sure, the talent is amazing, the pay is great and the cafeteria is legendary. But what about the pranks and Google air? Photographs by Darcy Padilla/Redux for Fortune.com.
By Yi-Wyn Yen and Michal Lev-Ram


Scooters are out... bikes are in
After years of getting around their sprawling Mountain View headquarters on two-wheeled Segways (which kept breaking down) and electric scooters (which employees kept falling off), Googlers now use bicycles as their primary mode of transportation at corporate.

Movie nights
How do you get more than 6,000 Googlers to see a first-run film? You rent an entire theater for the day. That's exactly what Google's done for movies like "Lord of the Rings," "Transformers" and other blockbusters. As an extra benefit, employees get to bring a guest.

Goo-goo Googlers
Your toddler may be too young to work at Google, but that doesn't mean the search engine doesn't care about your precious baby. In fact, a new policy lets Google moms enjoy up to 18 weeks of paid maternity leave; dads get seven weeks. Another perk: free Google baby "onesies."

Google's own Facebook
Google's intranet, Moma, provides all the usual corporate info, like benefits, internal newsletters, and a new employee handbook. It's used most often, however, for searching out other Googlers. Why? The directory provides photos of the company's 15,916 employees.

Google air
Solar panels, recycled carpets and complimentary public transportation are just some of the "green" practices Google has adopted. On its Mountain View campus, the company has recently installed a special environmentally friendly air-filtering system designed to flush out toxins and particulates. If you're stuck indoors coding all night, you might as well breath clean air.

Google's Fools!
Don't believe everything you find on Google - at least not till you check the calendar. It's a company tradition to design elaborate pranks to play on its users and potential employees every April 1st. Past gags include a job listing for engineering positions on the moon and a fictitious product, the brain-boosting energy drink Google Gulp (flavors included "Beta Carroty" and "Glutamate Grape"). But the jokes backfired when, on April 1, 2004, Google launched Gmail and many readers thought it was another April Fool's hoax.

Employee clubs
One of the many ways Google recruits and retains talent is through its club offerings. It funds the Black Googler Network, Google Women Engineers and the GLBT - Gay, Lesbian, Bisexual and Transgender Googlers.

Google's grand entrances
Orkut, Google's homegrown social network, is a big hit in Brazil. Coincidentally, Brazil is the source of the elegant hardwood used to build the Googleplex's enormous staircase. The entrance to the company's New York headquarters is no less impressive - it's got a huge all-Lego logo built by a certified Lego designer along with a 6-foot model of the Empire State Building built by Google engineers.

Free food, Google style
First-class dining facilities? Check. Custom-made milkshakes and onsite farmers' market? Definitely. Yes, Googlers are a well-fed bunch: The company even has a rule -- workers can never be more than 100 feet away from food. Hence the elaborate free snack stations and restaurants scattered throughout the Googleplex.

Nissan unveils new supercar

CEO Carlos Ghosn gives us a sneak peek at his new dream car, the GT-R, on the streets of Tokyo.

(Fortune) -- "You can't plan your life, because if you do, it will be too narrow," shouted Carlos Ghosn over the bellowing baritone of a twin-turbo V-6.
We were tearing around Tokyo on an unseasonably warm and sunny winter morning in Ghosn's personal chariot, the first production GT-R, Nissan's new supercar.
Ghosn (or Sir Carlos, since his knighthood in 2006) was no doubt referring to his unprecedented turn as dual CEO of Renault and Nissan, but he might as well have been speaking about the GT-R itself, a car he wanted to prioritize but couldn't when he first took the helm at the No. 3 Japanese carmaker in 1999.
Instead, the latest iteration of this iconic performance car (the first GT-R surfaced in 1969, the most recent in 2001) had to marinate in his mind while he revived the company's bread and butter: compact cars, SUVs, and crossovers. Even the relaunch of the Z sports car had to come first.
In the end it took nearly a decade and more than a few bumps along the development road to create the $70,000 four-seater GT-R, a bullet that will go on sale in the United States in June. Ghosn insisted that the car be created from the ground up in order to be unique in the crowded high-end sports car segment.
The other bars he set for the project were equally lofty. First, the GT-R had to match or beat the performance of Porsche's 911 Turbo, a $126,200 heat-seeking missile. The engineering team took the target so seriously that 30 of them set up shop at Germany's famous 14-mile Nordschleife loop at the Nrburgring for six months of testing.
Second, the development budget was, to be kind, hamstrung: "Great engineering is about being frugal - it's easy to make great cars with a lot of resources," Ghosn told me (though he wouldn't disclose a figure). Condition No. 3: Ghosn wanted a car that owners could drive every day.
"A supercar should not be punishment," he explained. "When it rains, when it snows, when you want to go shopping, you should not have to choose another car." And lest you think Nissan is shirking its environmental responsibility with such a hot rod, he also insisted that the car meet tough Japanese emissions standards, making it one of the cleanest supercars available.
Was he successful? Climbing in, I initially had mixed feelings. At first glance, the interior wasn't awash in the fancy leathers and hand-honed touches that you'd find in a European sports car. And yet the GT-R fit me like a glove.
The seat hugged snugly, and the controls wrapped around and tilted toward me, all set at the same level to minimize the need for extraneous head movement. I could select 11 real-time performance readouts on the center display, from cornering and braking g-force to turbo-boost pressure - the ultimate videogame come to life.
With all that race-ready technology aimed at me, I had the impression that the car was staring into my eyes to make sure we were on the same page before blastoff. The last decision before launch: Three toggles lie behind the chunky old-school shifter, marked "normal," "comfort," and "R"- a performance option that I'm sure stands for "rock your world." (The GT-R also has a smooth automatic mode and a paddle-shift manual mode for screaming. It's an automotive Sybil!)
I selected the red "R" (duh) and took off, heading straight to the loop around the Imperial Palace. As I wove through traffic, I felt a growing sense of awe: At stoplights I was able to strangle the throttle; the car never squealed but instead lightning-launched into jet mode with no turbo lag. When I backed off, the GT-R gracefully settled down.
Such a vehicle touts performance, sure, but ultimately is more than the sum of its highly engineered parts. Very few cars I've driven feel so well sorted.
As we parked at the end of our drive, a throng of admirers ten deep collected around Ghosn. One twentysomething Japanese fashionista, whom Ghosn invited to sit in the front passenger seat, actually cried with delight. To my mind, Ghosn has created the product equivalent of himself: laser-precise, seriously powerful, freakishly fast.
Though it's not an automotive image statement like some European supercars, you don't have to mortgage your life to own it, and it stands up to cars three times its cost. Indeed, when the GT-R hits streets this spring, I predict it will prove as popular as its progenitor.

Gas prices fall 9 cents to $2.98

Though current supplies of gasoline are ample to meet demand, pressure will build on prices as the spring driving season approaches.

(CNN) -- -- Gas prices fell more than 9 cents per gallon of self-serve regular during the past two weeks to $2.98, national surveys said Sunday.
The surveys -- carried out Jan. 25 and Jan. 11 -- found the average retail price fell 9.43 cents in two weeks, said Trilby Lundberg, publisher of the Lundberg Survey, which tallies prices at about 5,000 stations.
Gas prices had risen during the prior three weeks, Lundberg said. She credited the reverse on slightly lower crude oil prices and shrinkage in profit margins of refiners and retailers.
Barring a major change in the price of crude, "retail gasoline will probably hover around this level -- just under $3 per gallon -- for perhaps up to a month," Lundberg predicted.
But after that, even if oil prices do not rise, "there will be big pressure on gasoline prices to go up because our spring demand will pull it up."
Though current supplies of gasoline are ample to meet demand, "When consumers soak up that extra supply, prices will stop falling and be on the rise, possibly to a dramatic degree," she said.
Drivers in Tulsa, Okla., paid the least on average, at $2.70 per gallon of self-serve regular, and drivers in Honolulu paid the most, at $3.35 per gallon.

Here are prices in some other cities:
-- Atlanta: $2.96
-- Boston: $3.03
-- Burlington, Vt. $3.18
-- Houston: $2.88
-- Los Angeles: $3.07
-- Phoenix, Ariz.: $2.86
-- Seattle: $3.03
-- Wichita, Kan. $2.74

Societe Generale trader taken into custody

Authorities in Paris will question Jerome Kerviel in a probe into the French bank's announcement Thursday that the 31-year-old trader was behind a $7 billion fraud.

PARIS (AP) -- -- A trader blamed by French bank Societe Generale for a massive fraud was taken into custody on Saturday, judicial officials said.
Financial police in Paris were questioning Jerome Kerviel as part of a probe into Societe Generale's announcement Thursday that the 31-year-old trader was behind a fraud costing the bank euro 4.9 billion (US$7.14 billion), judicial officials said. They were speaking on condition of anonymity because the investigation is continuing.
It was the first time since Thursday's announcement that Kerviel's whereabouts were publicly known, despite an extensive media hunt. Journalists from around the world have staked out Kerviel's apartment, as well as relatives' homes, for days but they failed to catch a glimpse of him, prompting speculations that he was on the run.
Kerviel's lawyer had insisted, however, that he had not fled the country and was available for police questioning.
Judicial officials also confirmed police conducted a search of Kerviel's apartment in the Paris suburb of Neuilly-sur-Seine. They said police also went Friday night to the bank's headquarters, where they were provided with documents relating to the investigation, officials said.
Paris prosecutors are conducting a preliminary investigation based on three complaints: one by the bank accusing Kerviel of fraud, and two by small shareholders.
Global market hit
Societe Generale said it discovered the fraud last weekend and unwound the trader's losing bets starting Monday, when world markets tumbled.
Some analysts have questioned whether Societe Generale exacerbated the fall and indirectly led to the U.S. Federal Reserve's subsequent decision to cut rates.
In an interview published Saturday, Societe Generale's chief executive, Daniel Bouton, insisted the bank's actions after discovering the fraud did not fuel turmoil on world markets.
"It's absurd!" Bouton said of the suggestion, in an interview with Le Figaro daily. "Anyone could calculate our contribution to the market in recent days."
Bouton was quoted as saying the bank, in closing the trader's unauthorized positions, respected market rules that forbid any player from intervening with sums worth more than 10 percent of a given market. The bank says that is why it took three days to close the positions.
The bank maintains it was the biggest loser in the case, because of the timing of the discovery.
Kerviel had been investing the bank's money by hedging on European equity market indices. That means he made bets on how the markets would perform at a future date.
Bouton said the trader had been betting throughout 2007 that markets would fall. "He was therefore winning, virtually," he said.
But the bank says he had overstepped his authority and was wagering more money than he should have.
So at the beginning of January, Bouton said, the trader voluntarily created losing positions, to neutralize his earlier gains and cover his tracks.
But markets dropped this month, and fast. "This sad affair veered into a Greek tragedy: His virtual losing position became huge," Bouton was quoted as saying.
Fraud uncovered
The bank's systems discovered an anomaly on Jan. 18, he said. At midday that day, a Friday, the trader's positions were neutral, but by the end of trading that day the positions were losing euro1.8 billion, Bouton said.
On Sunday, the full scale of the problem was revealed to the bank's management -- "enormous and totally abnormal," Bouton said.
"I decided ... to close the positions and alert the supervisory authorities," he said.
When Asian and European markets collapsed Monday, "that had a catastrophic effect. The losses of Societe Generale became even more enormous," he was quoted as saying.
Ultimately it took three days to close the positions, and the bank lost euro 4.9 billion (US$7.2 billion).
Bouton said the overall health of the bank was not at risk, comparing the situation to arson at a factory of a big manufacturer -- a devastating, but one-time, loss.
Asked if the bank could once again be the target of takeover speculation, he said, "It wouldn't be the first time."
French presidential aide Raymond Soubie said the trader had been dealing with more than euro 50 billion (US$73.3 billion). That figure outstrips the bank's market capitalization of euro 35.9 billion (US$52.6 billion), and is close to the annual GDP of entire nations such Slovakia, Qatar or Libya.
Skeptics including France's prime minister have questioned whether a single futures trader could have managed such unfathomable sums. Adding mystery, the bank says Kerviel may not have made any personal gain from his unauthorized trades.
It remains unclear whether Kerviel's actions, if proved, were out of malevolence, ambition or some other reason. Three union officials representing Societe Generale employees said managers at the bank who briefed them about the fraud told them Kerviel was having family problems.
The debacle generated buzz at the World Economic Forum in Davos, Switzerland, and raised questions sector-wide about risk management.
French Finance Minister Christine Lagarde, speaking Saturday in Davos, said she has been asked to compile a report on the fraud, Dow Jones Newswires reported.
Lagarde said her report will look at "the reality of facts based on real hard data," and "how and why the controls did not work" to prevent the fraud.
Societe Generale's shares have lost nearly half their value over the past six months. After an up-and-down day Friday, the shares closed down 2.5 percent at euro 73.87 (US$108.62).
The company, which also posted another euro 2.05 billion (US$2.99 billion) subprime-related loss, planned to raise euro 5.5 billion (US$8.02 billion) in new capital.

State of Union: Economy is key

Bush will lobby for stimulus plan and may call for more measures to ease housing crunch and cut corporate tax rates. On Saturday he reiterated his hope that the bill will pass swiftly.

NEW YORK (CNNMoney.com) -- The state of the slowing economy and how to energize it - now and beyond - will be a focal point of President Bush's State of the Union address on Monday.
Indeed, he pledged during Saturday's Presidential radio address to tout the bipartisan stimulus plan during next week's speech; "...I believe that with swift action, we can give our economy the boost it needs to continue expanding and creating new jobs for our citizens," he said. He also reiterated his hope that the plan will be enacted swiftly.
Bush, in his last year of office, is unlikely to make any new economic proposals on Monday night, as he has done in past addresses. Last year, for instance, he called for a change in how the government taxes money used to buy health insurance, and he asked Congress to set a goal of reducing American gasoline consumption by 20 percent over 10 years.
"I think there will be a pretty significant emphasis on what they're doing in the immediate term to shore up the economy," said Scott Hodge, president of the Tax Foundation, a research group advocating for a simpler tax code and lower taxes. "There's so much anxiety in the markets and in business. I think he'd want to assure people they've taken the appropriate actions."
This year, before discussing the war in Iraq, Bush is expected to promote and call for swift passage of the $150 billion economic stimulus package brokered between House leaders and Treasury Secretary Henry Paulson.
The stimulus deal may face some resistance in the Senate. Some Democratic senators are unhappy that their House colleagues gave up on the party's push to extend unemployment benefits in addition to offering consumer rebates and business tax breaks.
The economic proposal, announced last week, also includes two housing measures intended to make it easier for consumers to obtain mortgages or refinance expensive subprime loans.
Beyond the stimulus plan. Bush may use the State of the Union address to push for other measures intended to ease the housing downturn, some experts said.
"Look for a pitch for tax-related provisions, such as opening the door for states to use tax-free bonds to help homeowners refinance out of unaffordable subprime [adjustable-rate mortgages]," said Jaret Seiberg, senior vice president at the Stanford Group, a Washington policy research firm.
Seiberg added that he believes Bush may endorse a real estate industry plan to offer $5,000 tax credits to first-time home buyers.
The president will also use the stimulus package as a launching-off point to call once again on lawmakers to permanently extend the tax cuts he engineered in 2001 and 2003 that will otherwise expire in three years. White House Press Secretary Dana Perino said Bush will factor an extension into his 2009 proposed budget, which will be released Feb. 4.
The administration had originally wanted such measures included in the stimulus plan. Proponents and critics of making the tax cuts permanent acknowledged that adding them to a short-term stimulus package could delay its passage because of the fierce disagreement between Democrats and Republicans over the issue.
Critics questioned how much such a move would stimulate the economy in the short-term. Proponents, however, said investors and businesses would feel more confident making investments today if they knew what their tax bill will be tomorrow.
"The best thing we can do to deal with uncertainty in the economy is make the tax cuts we passed permanent," Bush said in a speech to congressional Republicans on Friday.
Giving business a hand. One measure the president may push for is lower corporate tax rates - a campaign led by Treasury Secretary Henry Paulson.
The stimulus proposal announced Thursday also includes tax breaks for businesses to spur them to invest in plants and equipment.
"I'm surprised how readily the House agreed to the business tax breaks in the stimulus package. That may empower proponents of lower corporate taxes," said Greg Valliere, chief political strategist at the Stanford Group.
Right now the top income tax rate for corporations is 35 percent. Proponents of lowering it say it puts the United States at a competitive disadvantage since the majority of economically developed countries have lower corporate tax rates. U.S. companies benefit from bigger tax breaks but have to spend time and money to take advantage of them.
"[Bush] could try to put out a marker," said Hodge of the Tax Foundation.
At a conference of CEOs last summer, Paulson asked panelists whether they'd like to see the corporate tax rate lowered to 27 percent from 35 percent and preferences such as the research and development credit eliminated.
Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee, last fall proposed a major tax overhaul that included lower corporate tax rates. There is little consensus, however, between Democrats and Republicans about how low corporate tax rates should be.
But Bush is not likely to do more than lay out the big picture of his agenda on Monday. "I expect broad statements and no specifics," said Clint Stretch, managing principal of tax policy at Deloitte Tax. More telling, he said, will be the president's 2009 budget proposal.

Ten of the world's finest shotguns

A fine shotgun combines beauty, ergonomics and durability into one elegant steel and walnut package that will last for generations. These are the highlights from Griffin & Howe, one of the nation's leading dealers in fine guns.
By Phil Bourjaily

1. Purdey Best (Pair)
London gunmakers like J. Purdey and Sons are to shotguns what Savile Row tailors are to suits. In business since 1814, Purdey's specializes in "bespoke" guns made to a customer's measure. Order one new and you can expect to pay the price of a small house and wait two years for your gun to be finished.Matched pairs like these two guns are for high-speed shooting when the birds fly thick. A loader stands close behind the shooter, ready to take his Lordship's empty gun and hand him a loaded one.
Price: $120,000 (pair)
Gauge: 12

2. L.C. Smith Monogram
American double shotguns flourished from the 1890s until shortly after World War II, when the public demand for cheaper, mass-produced pump and semiautomatic guns killed the old classics. The high grade L.C. Smiths like this Monogram Grade were among the most heavily decorated guns made during the so-called Golden Age of American shotguns, in the 1930s and 40s. This heavyweight gun accepts powerful magnum loads intended for high-flying ducks and geese.
Price: $12,000
Gauge: 12

3. Perazzi SCO Sporting
Perazzi's earned public notoriety recently as Vice President Cheney's gun of choice for quail and attorneys. Shotgun aficionados, however, have long known these wonderfully sleek Italian guns as winners of countless target shooting titles. Perazzis debuted in the early 60s, and ever since they've been among the top guns of international competitors. This beautifully engraved SCO model is made for Sporting Clays.
Price: $25,000
Gauge: 12

4. Krieghoff K-80
Among competitive trap and skeet shooters, the name "Kreighoff" represents the last word in target-crushing consistency. Machined with Teutonic precision in Ulm, Germany, the K-80 isn't sleek, but it's built to shoot forever. This K-80 comes with four sets of barrels for skeet competition in four different events. It's been decorated with gold engraved ducks and pheasants to remind the owner of days afield.
Price: $13,500
Gauge: 12, 20, 28 and .410 barrels

5. Browning Superposed
John Browning of Morgan, Utah, was the greatest, most prolific inventor of both sporting and military guns in modern times. His last gun, the Superposed, was an expensive gun that debuted just in time for the Depression. Its Belgian factory was occupied by the Nazis in World War II, but the Superposed survived to achieve tremendous popularity by the 1960s. Superposeds remain in production as custom order guns today. The Midas grade model, with its gold inlaid pheasants and ducks, is one of the most lavishly decorated models.
Price: $21,500
Gauge: 410

6. Beretta SO-4
After 475 years in the gun business, you would think Beretta might have learned a thing or two about making shotguns. They have: The SO-series guns stand among the world's finest. Even at their premium prices, SO guns are a relative bargain with fit, finish and engineering the equal of guns costing much more. This S0-4 will withstand decades of high volume skeet shooting, and still look gorgeous in the winner's circle.
Price: $8,125
Gauge: 12

7. Fabbri Over-Under
Think of Italy's Fabbris as the Lamborghinis of shotguns -- stunning blends of beauty and performance at a "if you have to ask, you can't afford it" price. Fabbri makes just a handful of guns a year for such luminaries as Steven Spielberg, Tom Selleck and King Juan Carlos of Spain, among others. The swirling brown and blue patterns on the steel of this gun are the result of case coloring, a process in which the metal parts are hardened by heating them in a steel box with charcoal, bone and leather.
rice: $82,500
Gauge: 12

8. Boss O/U
English makers are known for their side by side shotguns (barrels arranged alongside one another), but the Boss O/U (barrels stacked vertically) is a graceful exception to the rule, and first appeared in 1909. This 1925 example is a beautiful between-the-wars gun. Light in weight for easy carrying in the field, this gun is richly decorated with the rose and scroll pattern typical of British "Best" grade guns.
Price: $48,000
Gauge: 12

9. Cosmi Autoloader
Meticulously hand-fitted parts and a complex design set the Cosmi apart from mass produced semi-automatic, making it by far the most expensive repeating shotgun in the world. The Cosmi's ingenious self-loading mechanism dates to 1925 and requires over 100 hand-fitted internal parts; it's the Swiss watch of fine shotguns. Cosmis hold up to eight shells in a tubular magazine in the buttstock. Famous -- or perhaps infamous -- Cosmi owners include Leonid Brezhnev and Benito Mussolini.
Price: $8,250
Gauge: 20

10. Connecticut Shotgun Manuf. Co. Model 21
Of all the American classic doubles that disappeared following the end of World War II, the Winchester Model 21 lasted the longest, limping along on life-support until the early 80s. The 21 is one of the classics revived by Connecticut Shotgun Manufacturing Company, which owns that Winchester model's name and patent. Made right here in the U.S. the guns are probably built better now than they ever were.
Price: $19,500
Gauge: 16

Economy front and center in State of Union

Bush will lobby for stimulus plan and may call for more measures to ease housing crunch and cut corporate tax rates. Major new economic initiatives are not likely.

NEW YORK (CNNMoney.com) -- The state of the slowing economy and how to energize it - now and beyond - will be a focal point of President Bush's State of the Union address on Monday.
Bush, in his last year of office, is unlikely to make any new economic proposals like he has in past addresses. Last year, for instance, he called for a change in how the government taxes money used to buy health insurance, and he asked Congress to set a goal of reducing American gasoline consumption by 20 percent over 10 years.
"I think there will be a pretty significant emphasis on what they're doing in the immediate term to shore up the economy," said Scott Hodge, president of the Tax Foundation, a research group advocating for a simpler tax code and lower taxes. "There's so much anxiety in the markets and in business. I think he'd want to assure people they've taken the appropriate actions."
This year, before discussing the war in Iraq, Bush is expected to promote and call for swift passage of the $150 billion economic stimulus package brokered between House leaders and Treasury Secretary Henry Paulson.
The stimulus deal may face some resistance in the Senate. Some Democratic senators are unhappy that their House colleagues gave up on the party's push to extend unemployment benefits in addition to offering consumer rebates and business tax breaks.
The economic proposal, announced last week, also includes two housing measures intended to make it easier for consumers to obtain mortgages or refinance expensive subprime loans.
Beyond the stimulus plan. Bush may use the State of the Union address to push for other measures intended to ease the housing downturn, some experts said.
"Look for a pitch for tax-related provisions, such as opening the door for states to use tax-free bonds to help homeowners refinance out of unaffordable subprime [adjustable-rate mortgages]," said Jaret Seiberg, senior vice president at the Stanford Group, a Washington policy research firm.
Seiberg added that he believes Bush may endorse a real estate industry plan to offer $5,000 tax credits to first-time home buyers.
The president will also use the stimulus package as a launching-off point to call once again on lawmakers to permanently extend the tax cuts he engineered in 2001 and 2003 that will otherwise expire in three years. White House Press Secretary Dana Perino said Bush will factor an extension into his 2009 proposed budget, which will be released Feb. 4.
The administration had originally wanted such measures included in the stimulus plan. Proponents and critics of making the tax cuts permanent acknowledged that adding them to a short-term stimulus package could delay its passage because of the fierce disagreement between Democrats and Republicans over the issue.
Critics questioned how much such a move would stimulate the economy in the short-term. Proponents, however, said investors and businesses would feel more confident making investments today if they knew what their tax bill will be tomorrow.
"The best thing we can do to deal with uncertainty in the economy is make the tax cuts we passed permanent," Bush said in a speech to congressional Republicans on Friday.
Giving business a hand. One measure the president may push for is lower corporate tax rates - a campaign led by Treasury Secretary Henry Paulson.
The stimulus proposal announced Thursday also includes tax breaks for businesses to spur them to invest in plants and equipment.
"I'm surprised how readily the House agreed to the business tax breaks in the stimulus package. That may empower proponents of lower corporate taxes," said Greg Valliere, chief political strategist at the Stanford Group.
Right now the top income tax rate for corporations is 35 percent. Proponents of lowering it say it puts the United States at a competitive disadvantage since the majority of economically developed countries have lower corporate tax rates. U.S. companies benefit from bigger tax breaks but have to spend time and money to take advantage of them.
"[Bush] could try to put out a marker," said Hodge of the Tax Foundation.
At a conference of CEOs last summer, Paulson asked panelists whether they'd like to see the corporate tax rate lowered to 27 percent from 35 percent and preferences such as the research and development credit eliminated.
Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee, last fall proposed a major tax overhaul that included lower corporate tax rates. There is little consensus, however, between Democrats and Republicans about how low corporate tax rates should be.
But Bush is not likely to do more than lay out the big picture of his agenda on Monday. "I expect broad statements and no specifics," said Clint Stretch, managing principal of tax policy at Deloitte Tax. More telling, he said, will be the president's 2009 budget proposal.

Taste Test: Irish whiskey

Money Magazine bought five blended Irish whiskeys and then rounded up a tasting panel of drinkers - including a couple of recent imports - from County Donegal.
By Noah Rothbaum

County Antrim
Clontarf Irish Whiskey, $23
Grade: A
Sniff Test: This whiskey had the strongest and also the richest smell.
Taste: It fills the mouth with a big, pleasant, long-lasting flavor.
Burn: There wasn't much of a burn with this easy-drinking whiskey.
The Bottom Line: We were shocked by how good it smelled and tasted. Perfect for a St. Patrick's Day celebration.

County Cork
Jameson, $28
Grade: B-plus
Sniff Test: "Smells pretty good," including "hints of berry."
Taste: "Spicy," "complex," "robust" and "woody" with a nice finish.
Burn: Good amount of burn.
The Bottom Line: Jameson dominates the Irish whiskey market for a reason.

County Offaly
Tullamore Dew, $25
Grade: B-plus
Sniff Test: It has a "rich" but not "overpowering" aroma.
Taste: Silky. Not only does it go down smooth, but it has a good aftertaste.
Burn: It's very smooth, but it still warms the pipes.
The Bottom Line: Tullamore Dew might not be as popular as other brands, but it definitely impressed us. A solid choice.

County Antrim
Bushmills, $27
Grade: B
Sniff Test: A "pleasant," "sweet" and "complex" nose.
Taste: Despite the slightly oaky and "caramel-like" taste, this was a little harder to get down than some others.
Burn: We felt the burn. It even made our cheeks flush.
The Bottom Line: Bushmills hails from Northern Ireland. It's full of flavor but a little rough.

County Louth
Kilbeggan, $24
Grade: C
Sniff Test: Couldn't smell anything here. Is this water?
Taste: Comparatively lacking in the flavor department, except for a slight "antiseptic" and "biting" taste.
Burn: Burn? Yes, it does - all the way down.
The Bottom Line: Good for mixed drinks but not for making toasts.

Get your Irish up
Ireland is famous for many things - James Joyce, the Blarney Stone and Bono among them. Not that long ago,the country was also famous for its whiskey. For decades, American bars and liquor stores were stocked with plenty of brands from the Emerald Isle. Then came Prohibition. World War II kept Irish whiskey off the shelves, and afterward Americans began developing a thirst for vodka instead. Until recently, Irish whiskey drinkers had relatively few choices. Basically, Jameson or...Jameson.But these days, the Irish whiskey industry is experiencing a renaissance. Case sales of the drink increased nearly 130% between 1994 and 2005, reports the Distilled Spirits Council of the United States. And New York City's Park Avenue Liquor Shop alone carries over 30 varieties. Store v.p. Jonathan Goldstein estimates that his selection has doubled in the past decade.Ironically, you can thank Scotland for this rebound. As single-malt Scottish whisky became more popular in the late '90s, bartenders, store owners and drinkers began exploring alternatives, says John Hansell, editor of Malt Advocate magazine. "The Irish whiskey industry saw how popular Scotch was becoming and said `Why don't we do the same thing?' " And lo, a handful of new labels have since emerged.What's helped in that growth is the fact that Irish whiskey is very approachable. It has a honeyed taste, with less burn than many other whiskeys. This is because most Irish distillers do not smoke their malted barley (as Scottish ones do); they usually triple-distill the whiskey (Scots do it twice); and they may use a combination of malted and unmalted barley (vs. onlymalted in Scotch). As a result, "it's an easier drink to get down," says Goldstein. In honor of St. Patrick's Day, I gathered some confirmed whiskey drinkers, including a few native lads and lasses, to get to the bottom of the most popular Irish whiskeys on the market. What we discovered: nothing short of a pot of gold. Slainte.

4 hot vacations at cool prices

For the best deals on warm-weather getaways, you've got to head off the beaten beach.
By Charles Passy

Paradise has its price
That's the lesson that many would-be travelers learn this time of year when they begin desperately prowling for last-minute vacations to places like St. Bart's, South Beach, Cabo or Costa Rica. Alas, it costs a lot to hit the hot spots in the dead of winter.Not willing to blow your 2008 IRA contributions on a one-week trip? Well, just between us, there is another option: Head to a lesser-traveled destination. You'll reap the benefit of lower prices and have more of the beach to yourself to boot.

Nicaragua
For the past few years, Costa Rica has been the darling of the adventure- and eco-travel crowd. But the country has seen a rush of development as a result (proof: It now boasts a Four Seasons, where rates start at $450 a night). So where to instead?Nicaragua. Once known for weak infrastructure and political instability, the country has gained new fame as "the next Costa Rica." And it does indeed have similar attributes, including a Pacific coastline beloved by surfers, active volcanoes and expanses of rainforest. It's also now considered one of the safest Latin American countries.Arguably, the country's best beach destination is the Pacific fishing village of San Juan del Sur. "There's a picture-perfect crescent bay," says Joshua Berman, co-author of Moon Handbooks Nicaragua. "And the beaches to the north and south are stunning."Wherever you head, keep in mind that Nicaragua is one of the poorest countries in this hemisphere, and as such it has roads that are bumpy and water that isn't always potable. On the plus side, since the dollar is strong against the local córdoba, you can get a topnotch room for $150 a night and a good meal for $15.Where to stay: The country's top-rated resort, Morgan's Rock Hacienda & Ecolodge, is a half-hour from San Juan del Sur. "It's built sustainably into the landscape with luxury tree houses hanging over the ocean," says Berman.

The Dominican Republic
The D.R. may not have the star-studded cachet of other chichi Caribbean destinations, such as St. Bart's or Anguilla. But the country that shares the island of Hispaniola with Haiti does have a lot to offer to those with kids in tow, and at reasonable prices."The D.R. is an all-inclusive hotbed right now," says Ana Chavier Caamaño, author of "Moon Dominican Republic." "Because of this, it's a great place for money-conscious people who want to be treated well."Meals are part of the package, and you don't have to fret about unanticipated expenses (a.k.a. Junior's demand for umpteen sodas a day). Besides that, the resorts offer almost around-the-clock kiddie activities that allow you and your spouse a little alone time.The coastal area of Punta Cana, where many of the all-inclusives are situated, offers white sand beaches and coral reef snorkeling. Though the resorts are pretty insular, the best of them also help guests experience some local culture, from fried plantains to merengue music. Where to stay: Petra Schmeckpeper, a travel agent with Carlson Wagonlit in La Crosse, Wis., suggests the Spanish-based Riu chain, which runs five resorts in Punta Cana, all with family programs. Weekly packages begin around $1,100 per person, all-inclusive.

Mexico's Riviera Nayarit
In terms of Mexican beach destinations, there are the obvious three Cs - Cancún, Cozumel and Los Cabos. But a less touristy, and therefore less pricey, alternative has emerged in what's being dubbed the Riviera Nayarit, a 100-mile stretch of Pacific coast just north of Puerto Vallarta.The Riviera maintains the flavor of the "real" Mexico that's rare in the three Cs. Here roadside markets offer homemade candies and juices. Farmers transport produce via mules. And Mexican families congregate on the beaches, listening to Tejano music on portable stereos.Make like a local in the fishing village Bucerias, the bohemian surfing town of Sayulita, or tiny San Francisco. These communities offer quality beaches with whale watching and snorkeling - and without a crush of Americans. But go now because 30 resorts will be built here in the next five years, says Erica Duecy, restaurants and hotels editor at Fodor's.

The Lower Florida Keys
South Beach has its strip. Key West is famous for its Jimmy Buffett-infused party vibe. But for those who want a quieter getaway, it's the Lower Keys that count. This 36-mile stretch of the 120-mile Florida archipelago is one of the most protected spots in the state.Composed of a dozen or so islands and sandwiched between more touristy Marathon and Key West, the Lower Keys have strict limits on development (forget high-rise condos). The largest landmass - Big Pine Key, at 10 square miles - is home to a 9,200-acre deer refuge. And some keys, like Cudjoe, have no commercial center at all.The area also feels decidedly tropical, and no wonder: Poised at the bottom of the Gulf of Mexico, it's the closest you can get to the Caribbean within the 50 states. And while the shores of other Keys are notoriously rocky, the Lower Keys' Bahia Honda State Park is a notable exception. It has been rated among the top beaches in the U.S.All this adds up to a vacation spot where you can let your own rhythm take over: Have a late breakfast, spend the morning exploring by boat, then follow up with some serious beach bumming. If you get bored from all the R&R, you're at most a 40-minute drive away from boisterous Key West - the islands are all connected via bridges along the Overseas Highway.

Deal struck to send checks to taxpayers

Compromise would provide $600 rebates to most taxpayers in effort to spur spending and head off recession. High-income earners are mostly left out.


NEW YORK (CNNMoney.com) -- Congressional leaders and Bush administration officials agreed Thursday on a $150 billion stimulus measure aimed at keeping the economy from falling into recession.
Most single taxpayers would get $600 and most two-wage households would get at least $1,200. The deal includes an additional amount of $300 per child. A total of 116 million taxpayers will receive checks of some size.
The main exception: higher-income taxpayers or individuals earning $75,000 or more or couples earning $150,000 or more. They would get reduced rebate checks, or none at all, depending on their income.
The deal was announced Thursday afternoon by Speaker of the House Nancy Pelosi, D-Calif., House Minority Leader John Boehner, R-Ohio, and Treasury Secretary Henry Paulson.
Paulson said it is possible the Treasury could start sending out checks 60 days after any legislation is enacted.
Earlier proposals to increase food stamps and extend unemployment benefits are not part of the agreement. But some low-income taxpayers who owe no tax would get rebates, although those checks could be for less than $600.
"This is a middle-class initiative to strengthen the middle class and those who aspire to be in the middle class," said Pelosi. She said the relief was targeted to "those who need the money and will spend the money."
The broad outlines of the deal were first discussed a week ago in a conference call including administration and congressional leaders.
"The Speaker gave some and Republicans gave some, but I think it's a good compromise that will help the American people," said Boehner. "This was not easy."
President Bush, saying the deal would give the economy a shot in the arm, urged quick passage.
"Our economy is structurally sound, but it is dealing with short-term disruptions in the housing market and the impact of higher energy prices," Bush said. "These challenges are slowing growth."
The final negotiations over the last couple of days did not include Senate leaders.
Senate Majority Leader Harry Reid, D-Nev., praised the agreement but added that he expects senators to "work to improve the House package by adding funds for other initiatives." He cited unemployment benefits, food stamps, grants to states and public works projects.
President Bush said he would not support funds for public works being part of the stimulus bill, but Paulson wouldn't rule anything out. He said he would not speculate on Senate action or what changes to Thursday's deal could be "a deal-breaker" for the administration.
One of the biggest sticking points had been the level of assistance for low-income taxpayers who had been excluded from previous rebate plans. As part of the compromise, Republicans agreed to extend rebates to nearly 23 million taxpayers who pay payroll taxes to fund Social Security but make too little to pay income taxes.
Those who earned a minimum of $3,000 in 2007 will get a check for at least $300, or $600 if they are married and filing a joint return, even if they did not owe any income tax. But their rebates will gradually climb as does their income tax bill.
Under the deal, Pelosi said, 35 million low-income taxpayers will receive assistance that would not have under previous rebate programs. She said she may yet offer legislation to address unemployment and food stamp payments, but she and Boehner both said this was not the legislation to do so.
"It is simple, it is clean, it is neat and it will get the money back out into the American economy as quickly as possible," Boehner said about the agreement.
Some have argued that wealthier taxpayers are more likely to put a $300 check into savings or pay down debt, and that directing more of the stimulus to lower-income households that spend the money is likely to have a greater positive impact on the slowing economy.
"For any given pot of money, the more you target the lower-income, credit-constrained households, the bigger the bang for your buck," said Congressional Budget Office Director Peter Orszag in Senate testimony Tuesday.
The stimulus package will also include tax breaks for businesses to spur them to buy equipment, although only limited details were released Thursday afternoon. The total price tag of the package is expected to be at least $150 billion, which is equal to about 1 percent of the nation's economic activity for a year.
The deal also includes a short-term increase to $625,500 from $417,000 in the size of mortgages that can be purchased and guaranteed by government-sponsored mortgage finance firms Fannie Mae (FNM) and Freddie Mac (FRE, Fortune 500). Those increased limits would expire on Dec. 31.
In addition, it would include a reform of the Federal Housing Administration.
The proposal would lower home-buyers' down-payment requirements when getting FHA loans, increase the cap on loans eligible to be FHA-insured and lower origination fees It is believed those changes could help lenders make loans to risky borrowers who have found it difficult to arrange for home financing since the collapse in the market for subprime mortgages last summer.
The mortgage crisis and downturn in housing have been major causes of the weakening of the U.S. economy.
The National Association of Realtors and the National Association of Home Builders both argued Thursday that the change in rules for Fannie and Freddie were crucial.

Car Buying Finance Options

By Joe Kenwright and CarPoint.com.au


It's time for a new car and having made the decision to buy, the next question is often not what car, but how you are going to pay for it
Financing a car can be a minefield to the uninitiated, especially when the salesperson starts bandying about terms like hire purchase, novated leases, residuals and balloons. But despite the confusing nature of the jargon, most of the finance products on offer are fairly simple and with a little understanding you can make sure you are getting the best deal for your situation.With the wide range of car prices now existing you need to consider the choices carefully. Unless you plan to hand over cold, hard cash for your next car -- and if you've ruled out leasing -- then you are one of thousands of car buyers annually who finance their purchases through a car loan of some kind. Your car-buying experience will include two separate purchases -- one for the car and one for the loan. They can be researched and shopped for separately. Research your finance options and check that you qualify for a loan before visiting dealers to shop for the car.When car shopping, don't discuss finance until after the price of the car and the value of your trade-in have been settled. Avoid discussing car prices in terms of monthly payments. Shop for loans aggressively, comparing them and asking lenders to give you their best rates. Don't view the process as asking for assistance. Develop a working knowledge of financial terms and arrangements, and have current local interest rates at your fingertips before discussing finance with the dealership.

WHERE TO SHOP
Shop around. Telephoning and searching the Internet for information usually work for obtaining ballpark figures on interest rates. But when you get serious, make an appointment and visit loan officers in person. There are a number of alternatives for finance, ranging from the dealer where you buy the car to credit unions to banks.

TAX BREAKS
Depending on your employment and income, you may find certain financial arrangements generate tax breaks that can significantly cut the bottom line. A visit to an accountant may allow you to buy a better car than you first thought. Key words to check out are leasing, novated leasing and salary sacrifice.If you are after finance with a bit more flexibility, then you should probably investigate specialised finance companies. These basically fall into two categories; those associated with the banks, like Esanda which is 100 percent owned by the ANZ Bank or those tied in with carmakers such as Ford Credit or GMAC.Interest rates vary little between the two types but those associated with the carmakers, called vendor finance companies, probably have a slightly wider range of products because they are solely focussed on automotive finance.Either way they both claim a far greater flexibility than the banks and are able to tailor finance packages and interest rates to individual circumstances. The finance is also usually arranged at the dealer at the same time as you buy the car and approvals can often be made within a couple of hours.

CAR DEALERSHIPS
While your first impression may be to forgo dealer finance as being more expensive than other kinds, it pays to consider the option carefully. It can be convenient -- a one-stop deal. Typically, you can get a loan approved while you're at the dealership. Convenience doesn't necessarily cost more. Indeed, subsidies available to dealers from manufacturers can allow a dealership to undercut other lenders.

BANKS & CREDIT UNIONS
Banks are also very active in the car loan market, typically offering a variety of loan types. Some banks give lower rates to customers who open, or already have, cheque and savings accounts with them. Interest rates at credit unions generally are lower than at other loan sources. If you are a member of a credit union or can join one in order to get a loan, it may pay to shop there.

FINANCE COMPANY
Another option is to obtain a loan through a finance company. For people whose credit rating is less than perfect, working with a finance company, either directly or through the dealer, often makes it easier to secure a loan.

INTEREST
The greater the risk to the finance provider, the more interest you pay. The shorter the loan, the less interest you pay. And if your circumstances are unsettled, consider an insurance policy to cover your payments if something goes wrong. Some institutions will insist on this safety net but it adds to the cost.The interest rate is a big factor but because there are several ways of calculating this, the final amount you end up paying at the end of the loan is the most important figure. You should shop around for the best finance deal just like you would any other consumer product. Some used car dealers will offer special finance rates as an incentive.

THE BOTTOM LINE
Regardless of their source, all loans can be compared by their Annualised Percentage Rates (APR) to determine their relative cost. While lenders may compute interest charges on instalment loans by various methods, the APR adjusts the actual rates to reflect the loan's true cost per year. As long as the APRs are the same, the costs of any loans you are considering also are the same.

WARNING
Most financial arrangements are structured so that payments cover mainly interest for the first year or two. If you have to sell the car early, the sale price may not cover the loan or lease because the car's value will have dropped faster than the amount owing. Extra money will usually be required to break a financial arrangement in the first two years. If a seller invites you to take over the book or pay the balance of a lease or loan, check it out carefully.

Take The Lead: Gross Profit - The Road Less Traveled

By Brian Canning, Contributing Editor

In first measuring and then attempting manage a business, we are often faced with the need to make strategic decisions in getting ourselves from an unprofitable state to one of profit. Choices will often fall between increasing sales, cutting expenses or increasing gross profit. Though working to increase sales would seem a logical response and cutting expenses will certainly have a positive effect on bottom line performance, gross profit is by far the most effective way to improve cash flow and bottom line performance. There is no quick fixMost of us, when faced with a cash deficit, will immediately set about doing two things. We will work harder and we will spend less. As individuals this might mean more hours at the office, turning out the overtime and at home, eating out less and doing without the luxuries in our lives.
We might also put off buying those new golf clubs and maybe cut back on staff overtime and watch our utility bills. The problem here is that increased sales without profits just has you working harder with no return and though cutting expenses is generally a good thing, it is unlikely that you will be able to cut them far enough to improve profits before we start reducing production capacity and our ability to operate. Gross profits might be a solution that will allow us to improve the return on our current sales.What if there was another path to profitability?We do an exercise in our classes where we take a hypothetical shop with hypothetical sales, costs and expenses. We ask our clients what things they would do to increase bottom line return (NOP). The most common response we get would be to increase sales. Maintaining shop efficiencies and margins where they were, we increase our imagined sales by 20%. There is no discussion of our ability to handle this or if it were even practical. We add 20% to the top line, track flow through to the bottom line and note profit dollars generated. A significant number to be sure! Yet in the practical world you cannot budget for a sales increase such as this and unless there is an effort toward our being more efficient and productive, we are likely to be very busy, much stressed and barely better off for all the effort.
Next we take our shop and decrease our expenses or fixed cost by 10%. Again, in the real world it is not entirely practical that we cut our expenses by this drastic an amount but for the sake of this exercise we do it and with all other performances being equal, we once again track bottom line performance. There is no doubt that the very second you reduce expenses you will see an improved bottom line and we definitely did. An even larger number! In most shops rent is the single largest expense with advertising being a close second. I would encourage any shop owner to frequently audit expenses, look for ways to reduce this number but only in ways that would allow us to continue to operate efficiently.
Finally we took this imaginary shop and simply manipulated the cost numbers to show a 5% increase in gross profit. Now, unlike the other two exercises, this small increase in gross profit would be completely practical and in most cases, easily doable. With a very modest adjustment in how we price our parts, in how we pay our techs and in how well we control overtime, we could easily improve gross profit by 5%. Other ways would include asking for deeper discounts from our parts vendors or in building our menu items and canned jobs to reflect a very modest gross profit increase. And finally, pay attention to what prices we end up charging our customers. Negotiating a great price will mean little if you give it away in discounts. In doing this exercise we were able improve bottom line performance dramatically and well beyond what we accomplished with a huge increase in sales and much better than we accomplished in slashing our expenses.
Be realistic, but flexible In searching for solutions to our problems with cash flow we need to be practical and confine our efforts to those things that we can reasonably accomplish. Chasing sales numbers would seem a reasonable response but unless you are profitable, which the average shop is not, you will work very hard to get a modest return. Cutting expenses is another rational approach but one limited by what is real and achievable. There are few businesses that have 10% fat to cut from their expenses and too often in the effort, we end up reducing our ability to efficiently operate. Sprinting with one less leg becomes an exercise in futility. Most important in all of this is how easily we can affect gross profit. It is just our getting a little better at things we already do. Gross profit is the path and cash is our destination.
Profit and cash flow are such that we are struggling. We are having difficulty in making ends meet or hitting our goals. Something has to change. It is not simply selling more or cutting back on expenses. Search for ways to be more efficient and productive. Be different. Be profitable.

Isn't it their turn to pick up the check?

Money is great, if only it didn't get all tangled up with relatives. And friends. And kids. Our money & ethics advisers take your questions in their new book.
By Jeanne Fleming, Ph.D., and Leonard Schwarz, Money Magazine contributors

Sticky situations
Which would you rather have: a bad case of the flu or a relative ask you for a large loan? We asked this question of over 800 people in a national survey and more than two-thirds of them said: I'll take the flu.
This is a book about what to do when you can't choose the flu. Consider it a handbook for the awkward moments and uncomfortable situations that the intersection of money and personal relationships so often gives rise to.
It's meant to give you enough ammunition - enough moral support - so that when money-and-relationship troubles darken your door, you won't feel like you'd rather have the flu.

When gifts come with strings
Question: My father, who was a very successful writer, died recently. According to his will, $2 million is to be placed in trust for his four grandchildren, two of whom are my sons.According to the terms of the trust, each grandchild will receive a quarter of the trust at age 25, provided he or she earned a college degree and never attended a private school or college. To me, this second restriction seems very unfair. My older son has a good chance of being admitted to an Ivy League college. As much as I loved my father, I don't see why Jon should pass up the opportunity to get that kind of education.So here's my plan: My sister and I are the trustees of the trust my father established, and she has two kids who have the potential to be admitted to good colleges as well. I think that she and I should make a pact to give each child their quarter of my father's estate when they turn 25 regardless of where they went to college. I know what I'm proposing is not completely aboveboard. But I think it's fairer than Dad's will, and my real concern is to do right by my children. What do you think?Answer: We think the $2 million was your father's to do with as he wished, not as you wish. To subvert his will as you propose would be dishonorable - doubly so since, in appointing you and your sister trustees, he counted on you to carry out his wishes. If you're not prepared to do so, you should resign as trustee. Not that we share your father's philosophy. But he's entitled to his opinion and entitled to have it reflected in his will.Still intent on subverting the trust? Then think of the lesson you'll be teaching your children if you go forward, namely: If a disagreeable hurdle stands before you in life, see if you can't sneak around it. Come on. You can do better than that.
Test your ethics: 1. If you lend your child money for a car on the condition he or she returns to law school...does he or she have to go?

Rich friend, poor friend
Question: A good friend of mine is in the process of taking over his father's real estate development business, which means he now has a great deal of money.Terry also has a 50-foot sailboat on which my wife and I frequently are guests - not just for the day, but often for the weekend and occasionally for a week-long cruise. Here's the problem: We make a decent living, but there is no way we can reciprocate this kind of hospitality. What should we do?Answer: Stop thinking you can't reciprocate. You certainly can. Your obligation is not to treat your friend to something of equal value, but to treat him to something he'll enjoy.Maybe that's a night at the opera, a day at a ball game or an afternoon at a spa. Whatever you know Terry would most enjoy. The point here is not that you need to match Terry's hospitality dollar for dollar. Rather, it's that the disparity in your resources doesn't free you from your obligation to entertain Terry as thoughtfully as he's been entertaining you.
Test your ethics: 2. Who are more ethical? a) rich people b) poor people c) there's no difference between them.

Should our will treat all our kids equally?
Question: My husband and I are having a disagreement over our wills. We have four children, and we'd always planned to divide our estate equally among them.But our son Kenneth has paid no attention to us for years. We get a card from him at Christmas and a phone call when he needs money. That's it. Our other three kids are a big part of our lives and help us out all the time. My husband wants to leave Kenneth out of our wills. I'm not so sure. While I feel terribly wounded by his behavior, he is our flesh and blood. What should we do?Answer: Our vote is to drop Kenneth. As you decide how much money to leave to each of your children, there's nothing wrong with taking into account how each of them has treated you. In fact, fairness to your three loving children requires that you not be blind to the love and loyalty they've shown you, as opposed to the contempt their brother has.Do see a lawyer, though, and make sure the language of your wills protects your estate from any claim Kenneth might try to make. From what you've said, he sounds like the kind of guy who'd be only too happy to take a final shot at squeezing a few bucks out of his mom and dad.
Test your ethics: 3. Agree or disagree? It is common for people to lie, cheat or fake affection in order to be in someone's will.

Paying for one's mistakes
Question: A friend borrows your sweater and spills red wine all over it, ruining it. The sweater was three years old, in good condition and still in style. What should your friend do?Answer: The answer lies not in figuring out the dollar value of the lost or damaged item but in assessing its value to you. In the case at hand, you lost a perfectly good sweater, so that's what the borrower needs to buy you - a new sweater of comparable quality to the one that was ruined.It makes no difference that you have already gotten three years of wear out of the sweater or that an insurance company might say that a sweater costing $100 three years ago is worth only $30 today. You lost a good sweater and $30 isn't going to replace it.If, however, you were about to donate that sweater to Goodwill, you should tell your friend not to worry about replacing it. But even then, your friend should still take you out to a nice lunch.
Test your ethics: 4. Agree or disagree? In most families there is always someone who borrows things and never returns them.

Friends as lenders, and the bank of quid pro quo
Question: Two months ago Spencer, a good friend from college who now makes lots of money on Wall Street, lent me $6,000, interest-free, so I could pay off my credit cards, repay some debts and generally get back on my feet financially. The loan has been a great help, and I am paying Spencer back at the rate of $250 a month.In the meantime, he has asked a big favor of me, namely to arrange an "information interview" for his new girlfriend with an editor at the magazine where I recently got a job in the art department. While I've met a couple of the editors, I don't really know them (and vice versa), and I'd prefer not to ask for this sort of favor - something I wouldn't hesitate to tell Spencer if I didn't owe him so much money. Does accepting the loan obligate me to do this for him? I feel like he's taking advantage of the fact that I owe him money.Answer: The great thing about borrowing money from a bank is that they write down everything they expect of you. Friends are a different story. In this case, you've put yourself in a position where Spencer is not wrong to expect a big favor from you, since that's what you accepted from him.What he can't expect, however, is for you to compromise yourself. Had he asked you to be a reference for a woman you scarcely know, he'd be crossing that line. But asking you to play a chip with your colleague is not unreasonable. After all, he's not requesting that you ask an editor to hire his girlfriend, just to talk to her. You owe him this favor, even if you'd prefer not to do it.
Test your ethics: 5. A friend is a month late repaying a $100 loan. Would you: a) do nothing. b) drop a hint. c) ask for the money.

^_^......?

The score

Here's how most Americans answered the questions.

1) Yes. Only 34 percent say their child would have no obligation to honor their request.

2) C. 70 percent believe there's no difference between rich and poor people when it comes to ethics.

3) Agree. 75 percent say it's common for people to lie, cheat or fake affection to stay in someone's will.

4) Agree. 73 percent believe most families have a relative who borrows things and never returns them.

5) C. 57 percent would ask for the $100 back.