Spotted: Bogus Credit Card Sign

I was at the Valero gas station on Virgil when I dipped my credit card in the machine to start pumping gas. And then I saw it: The typical sticker found at businesses, noting that credit cards like Visa and Mastercard are accepted here.

Only it wasn't a typical sticker. And it wasn't for "Visa" or "Mastercard" -- but rather, Mad Magazine-style parodies.

Someone trying to make a statement on our consumer culture? On the insane price of gas? On the oil companies' greed? Or just someone having a random laugh? Here's the full sign:

'Set For Life' Where, California Lotto?

The California Lotto's new "Set for Life" scratcher game promises $100,000 for 20 years. Minus taxes, that's maybe about $60,000 a year (and I'm probably being generous).

OK, Lotto, I ask, what part of California would you be "set for life" on $60,000 a year?

The Mortgage Deduction Debate, and How Angelenos May Get Screwed

This story is what sometimes drives me nuts about the Los Angeles Times. At the end of the day, the paper needs to be local first. Yet this piece, on the possibility that mortgage tax deductions may be erased, barely touches the unique circumstances faced by L.A. homeowners.

For starters, the story -- written by L.A. Times reporter Don Lee from Washington -- begins with an anecdote about Maryland homeowners:

Fifteen years ago, Carol Nietmann and her husband bought a spacious house in Maryland near Chesapeake Bay. And thanks to the time-honored tax deduction for mortgage interest, she said, their new place was a little bigger and a little nicer than they would otherwise have thought they could afford.

Much the same has been true for millions of Americans up and down the income scale. Perhaps the most sacred of all the sacred cows in the tax code, the home mortgage deduction has long been seen as crucial to a major element of the American dream — owning your own home.

It has also been a boon to home builders, construction workers, the financial services industry and local governments that benefited from fatter real estate tax revenue.

But nearly a century after coming into existence, the mortgage deduction may face a day of reckoning. Although out of the spotlight while the lame-duck Congress thrashes to an end, the mortgage deduction issue is likely to resurface next year when the new Congress — including a lot more deficit-hawk Republicans — takes over.

So here's my problem: Out here in L.A., at least since the home price escalation in 2003, homeowners have paid a little more than they can afford... in order to squeeze into a tiny home they could have easily handled in another part of the country. It's the price of living in a city like L.A., San Francisco or New York. And it's those mortgage tax deductions that allow us to pay for these homes, period.

Lee finally touches on the plight of Angelenos -- you know, the people reading his story -- but much further down, and only briefly:

On the other hand, younger homeowners in wealthier areas are likely to feel the biggest pinch. Take Hyun K. Chung of Orange County.

The 37-year-old occupational therapist has a mortgage of about $500,000 on her house, which she bought at the peak of the market in 2006. Her loan carried an interest rate of 6.4% last year, putting her interest payments at about $32,000.

Chung doesn't remember how much her mortgage deductions saved her in taxes, but based on rough estimates, it was probably about $6,600, said James Nunns of the nonpartisan Tax Policy Center.

The deficit commission's plan would slice that to about $3,800, though Nunns said the difference could be significantly offset by lower tax rates and other changes under the commission's proposal. The possible tax changes are still too imprecise to calculate exactly how they would affect people.

So in other words, no one knows how much most of us young Southern California homeowners are about to get screwed. THAT is something you oughta play up.

It's not enough, by the way, that my generation was screwed over by Prop 13 (you know, the California law that means I pay triple the taxes on my little shack than many folks do on their Hancock Park mansions) -- now our mortgage deduction lifeline is threatened as well.

Los Angeles County's Top Earners

In light of the City of Bell scandal, everyone's taking a second look at compensation among our elected officials and government employees. L.A. Weekly's Dennis Romero put together a list of the county's highest-paid employees. Turns out most of them are physicians. Here are the first five:

1. Name redacted, commander (sheriff's), $440,915.61 (including a $190,070.97 base salary and $250,844.64 in "other earnings").
2. Elaine C. Yang, senior physician (Harbor-UCLA Medical Center), $430,909.32.
3. Christine H. Holschneider, chief physician I (Olive View Medical Center), $423,533.89.
4. Gail Anderson, Jr., medical director II (Harbor-UCLA Medical Center) $421,648.65.
5. John S. McDonald, chief physician I (Harbor-UCLA Medical Center) $413,807.18.

KNBC-TV Employee Wins the Mega Millions Jackpot

Here's the ultimate get-out-of-the-dying-journalism-industry card: KNBC news employee Jacki Wells Cisneros and husband Gilbert were the lone winners Tuesday in the Mega-Millions lottery.

That means they won an estimated $266 million jackpot (after taxes, they'll be able to get a lump sum of about half that. $133 million -- not too shabby.)

The couple got their ticket at an L&L Hawaiian BBQ restaurant. Damn. I knew I should be eating at L&L more often.

KNBC obviously was the first with the story:

BBQ and lottery tickets -- a great combination. The numbers in Tuesday night's multi-state Mega Millions draw -- 9, 21, 31, 36, 43 and the Mega number 8 -- matched one of the 10 tickets purchased by Cisneros at the restaurant.

A minor dispute over dinner led Gilbert to the winning ticket. His wife, long-time NBCLA television newswoman Jacki Wells Cisneros, wanted KFC. But Gilbert was in the mood for Mexican food from Olvera Street.

"But then she said chicken, and I remember having chicken at a Hawaiian BBQ before and thought, 'You know, that sounds pretty good,'" Gilbert said, making the most important dinner decision of his life.

It was hours later when they discovered they hit the Mega Millions.

Jacki was working her overnight shift at NBCLA when a news bulletin said the winning ticket had been purchased in Pico Rivera at L&L Barbacue. News producer Jeff Evans remembered Jacki was from Pico Rivera and handed her the advisory.

She woke Gilbert up at home and demanded he retrieve his L&L lottery tickets.

"He was reading the fourth and the fifth number and all of a sudden he said, 'I think we won,'" Jacki said. "My hand was shaking the phone, I went to hang up the phone and I was shaking, and my legs felt like they were going to buckle. I just screamed and cried, and laughed."

Gilbert told Jacki, "It's two in the morning. I told her to calm down calm down. I told her to stop yelling, we want to be anonymous, I don't want anyone to know, but so much for that."

Jacki finished the remaining hours on her shift and left for home at her normal off time of 8 a.m.

The couple said they picked the numbers at random. The couple also said that Gilbert recently lost his job.

Jacki Wells? Jeff Zucker on line two.

The Wednesday Poll: Who Caused California's Economic Collapse?

Curbside Extortion, Part 2

Yesterday, I told you about the budding extortionist/entrepreneurs who left a note on our mailbox, informing us that our curbside address would be painted unless WE left a note on the curb telling them not to. Oh, and they'd come by demanding $15 afterward.

Here's yet another sneaky wrinkle: They left the note on Tuesday night, but we only discovered the note yesterday afternoon. Turns out the guys had already painted the address at that point.

So sure enough, a guy with a clipboard came by the house on Wednesday night, asking for his $15. I came outside and told him I wasn't interested, and that I had not asked for the address to be painted. He told me I should have left the note on the curb; I told him I wasn't given time to do so. He pointed out that the note said the curb would be painted within "1 to 5 days," and it just so happens that, in this case, it was in "1 day."

I told him I wasn't gonna pay him. He moved on. Now, of course, I'm wondering if these curb painter guys have retaliation in mind... or if they get a lot of irate homeowners refusing to pay. (I'm also waiting to see if, in a few days, someone comes along and paints over the curbside address.) What would you do?

Curbside Extortion

Every once in a while some budding entrepreneur attempts to make some cash in our neighborhood by painting curb address numbers. Sometimes they're sneaky and make it sound like they're part of a city team doing it... but usually they get permission before painting the numbers. (And usually, by the way, the workmanship is shoddy at best.)

Today, we got a notice from someone who's putting the onus on US, the homeowner, to stop them from painting. Check out this note, found taped on our door:

We ask only that you consider a $15 contribution, or what is most comfortable for your budget. After work is completed, we will stop by to pick up your contribution, should you be kind enough. If you do not wish to have your curb painted, please tape this notice to your curb and it will not be painted. (Tape on flyer might not be enough, duct tape is best) We paint 4 inch numbers and work will begin in 1 to 5 days.

Lemme get this straight: If I don't want my number painted, and don't wanna cough up $15 for your work, it's up to me to make sure this flyer is taped on my curb, with the hope that it doesn't float away? And if it does, I'm gonna have to pay you scam artists? That's not right.

Meanwhile, the Atwater Village Newbie notes that the L.A. Bureau of Street Services is trying to catch some of these guys in the act:

According to Senior Inspector Rodney Lucas, the only organization allowed to paint the curbs in LA is Care for the Children ...

If you received one of these notices and you see these individuals painting in your neighborhood, please call Sr. Inspector Lucas at 213-847-6000.

If your curbs were already painted and these individuals knock on your door requesting their 'donation,' you can refuse to pay them and call the police. It's highly unlikely that this organization is a non profit and your 'donation' will actually be payment for services and not tax deductible.

Of course, just like refusing candy to teenage trick-or-treaters on Halloween, I'm guessing that you may run into trouble if you refuse to pay these guys. That's where the extortion comes in.

UPDATE: Check out Curbside Extortion, Part 2 for the second half of this saga.

FlyAway For a Few Bucks More

Our favorite way to hit LAX -- when we don't feel like plopping down $10/day (if we're lucky) for parking or $65 for a taxi (don't even mention the SuperShuttle, too many bad experiences) -- has become the FlyAway bus at Union Station.

According to Zach Behrens over at LAist, that's about to get a tad more pricey:

LA Board of Airport Commissioners today were scheduled to vote on increasing FlyAway fares a couple of dollars. Citing rising fuel costs, Van Nuys and Union Station routes increased from $4 to $6 and Westwood from $4 to $5 beginning Jan. 1, 2009. The board also voted a new discount fare of $4 for persons age 65 or over, disabled, or on Medicare (proof must be shown).

Hey, it's still an economic alternative (just make sure someone drops you off at the station, or if you're lucky enough to be Gold or Red Line adjacent, you know what to do -- or suddenly it's a lot less economic). For Blogger Preschooler, the bus ride is just as exciting (if not more so) than the plane ride. For me, it's a chance to get a great glimpse of the city from a high vantage point on the 110, something I can't normally do while driving.

Call It The "99.99 Cents Only Store"

As had been hinted at last month, the 99 Cents Only store is raising prices for the first time in its history.

The change will be minimal, however. According to the L.A. Times, prices are rising from 99 cents to 99.99 cents -- in other words, a dollar.

That should put fans of the store at ease; much larger price increases had been rumored. The price increases take effect later this month.

The Times writes:

"We've absorbed it for as long as we can and as hard as we can, but we've reached a point where we can't absorb it anymore, and we have to do something," said Chief Executive Eric Schiffer. "This will give us plenty of breathing room."

Based on last year's sales, Schiffer estimated that the chain would take in an extra $12 million at the cash register.

Industry analyst Karen Short said changes like this were often essential.

"We've had a pretty abnormal inflationary period, and sticking to their strategy of 99 cents only becomes more challenging when prices are as volatile as they are," said Short, an analyst with Friedman, Billings, Ramsey & Co.

"Changing prices on items is not an attempt to move away from the strategy of helping the consumer. It's out of necessity."

The announcement was expected after the retailer -- faced with fast-rising inflation, soaring food and fuel prices and a higher minimum wage -- said last month that it was reevaluating its long-standing price strategy after two consecutive quarterly losses.

Founded in 1982 by Chairman David Gold, 99 Cents Only pioneered the single-price retail concept. The chain opened its first store in Los Angeles and has since expanded to 277 locations, mostly in California but also in Nevada, Arizona and Texas...

But capping prices at 99 cents plus tax had become a burden for the retailer, which had to adjust the size or quantity of many of its offerings -- including milk and eggs -- to keep them on store shelves. The strict price strategy also led to the inability to carry some high-demand items, such as butter, on a regular basis.

As much as I love the 99 Cents Only store, there are some things I'd still be leery to buy there -- including 99 cent butter.

Somehow, the "$1.15 Only Store" Doesn't Have the Same Ring

Shocking news last week from the L.A. Times, which reports that the 99 Cents Only chain is mulling a new pricing structure.

After years of promising "99 Cents Only," the store -- which has been struggling as of late -- may soon become "99 Cents Frequently." That's more in line with the fake 99 (or "98") cents stores that actually offer products of varying prices. And it's a sign of these costly times:

Given the hard times many American consumers are facing, you’d think 99 Cents Only would be packing them in. The company told analysts on a conference call Thursday afternoon that although last quarter’s sales ($305 million) "grew slightly more slowly than anticipated," same-store sales were strengthening toward the end of last quarter and "have continued strengthening" in the current quarter.

Still, one analyst on the call wanted to know whether the company would consider giving itself more pricing flexibility, presumably to improve the bottom line.

The retailer already charges less than 99 cents for some stuff. But what about charging, say, $1.09 or $1.29 for certain items? the analyst asked.

If you know the chain, you know that sounds like heresy. As its website proudly proclaims: "STILL nothing over 99 cents, ever!"

Yet CEO Eric Schiffer said the idea was "definitely on the table. That is something we’re looking at . . . in the future for us. We’re looking at doing some experiments. Obviously one way [is that] you can start selling things for $1.05, $1.09, $1.15 and other ways. You could have more of a break between your 99 cents price point and the next price point."

That's a risky strategy. The thrill of the 99 Cents Only store is picking up bizarre or crappy products that you normally wouldn't buy -- but are willing to give a shot for 99 cents. If they upped the quality of their fare, perhaps that would be one thing. But I'm guessing the quality wouldn't change -- just the price.

The Problem With Mervyn's

What went wrong with department store Mervyn's? The department store just filed for bankruptcy, and blogger Party Pauper has a theory why: Shopping there is just not fun:

Outside of cheap bras and Hello Kitty pajamas in adult sizes, there is little joy to be found in Mervyn's. At the very least, there is nothing worthwhile about the Northridge outpost...

The cash registers were obscured by massive piles of wrinkled clothing and sales people were few and far between (it took a while to actually find a competent person to ring up my purchase). Then there were the customers. There is no return rack, let alone an attendant, in the dressing room, so people just toss unwanted items on the ground (including bikini bottoms, which is another issue altogether). Out in the ladies department, I saw one woman drive her kid's stroller into a rack of clothes, knock over some shirts and continue on without so much as a glance back at the mess she made...

Mervyn's is just one big reminder that you can't afford Macy's, let alone Barney's. It's a store without any dignity.

I've hit the Mervyn's at the Glendale Galleria many times, and Party Pauper got it right. The place is a disaster -- merchandise thrown everywhere, screaming kids, poorly designed displays. It's indeed quite depressing.

ADD: LA Biz Observed notes that several Mervyn's locations could be shut as a result of the Chapter 11. For the Glendale Galleria, that could be a good thing. Mervyn's doors represent the Galleria's only entrance on Brand -- and anyone interested in hitting the Galleria from the street has to go through a Mervyn's maze before finally hitting the mall. Now that the Americana has added tons of foot traffic to that part of Brand, the Galleria would be wise to construct a brand new mall opening there, coupled with new, smaller retail space, rather than attempt to find another department store to fill the void.

Carpool Lanes Take Their Toll

The LA Times' Bottleneck Blog notes that toll lanes are one step closer to reality in Los Angeles County:

The California Transportation Commission just unanimously approved the plan in Los Angeles County to convert the carpool lanes on parts of the 10, 110 and possibly the 210 freeways to toll lanes.

The plan now goes to the state Legislature. What do you think? Would you pay extra for the opportunity to use the toll lanes?

Psst, President Bush, $4 Gas Is Real

It's not just a hypothetical anymore... and it's not just for premium any more, or just in pricey neighborhoods. Here's $4.09/gallon regular unleaded gas at a run-of-the-mill 76 station in Van Nuys.

Remember When Gas Was Below $2? It Wasn't That Long Ago

Yesterday LAist reminded us that $4 gas was on the horizon, and pointed to a GasBuddy chart of prices over the last several months.

I headed over to GasBuddy myself to see the price trend... and got a little nostalgic.

Until February 2004, gas was still under $2 (except for one or two brief jumps in 2003). Then, it spiked -- and we've never seen gas prices leading with a "$1" (other then a brief dip during the 2004 holidays) ever since.

Now, as we wonder whether gas will ever even dip under $3, it's interesting to think that not too long ago we were griping about $2 gas. Nice and sneaky, Big Oil!

End of the Year Tipping: Who? When? How Much?

It's the question that no one seems to have an answer to this time of year: Who do you give an end-of-the-year tip to? The people who sent you those hint-hint cards (this year, that included the paper delivery guy and the lawn care crew). Does that mean the mail carrier doesn't need one? And what about others?

I ask, because last year we never got around to tipping the newspaper carrier (we only subscribe to the weekend paper). This year, the paper was soaking wet most of the time. Coincidence?

Here's a survey from Consumer Reports that breaks down how many people tipped service providers, and how much. I was surprised to see just 32% tipped their gardener/lawn care crew; meanwhile, 31% tipped the mail carrier and 47% tipped the newspaper carrier.

Here's a stat that also surprised me: 62% said they tipped their child care provider. Does that mean the rest didn't have kids? Or didn't care that they were leaving their kids in the hands of someone bitter that they didn't get a holiday tip?

The Cash or Charge Gas Dilemma

It's funny, I meant to do a blog post about this a few days ago, but the L.A. Times actually beat me to it. If you haven't noticed, an increasing number of gas stations are pricing gas slightly cheaper for motorists paying by cash. Some stations -- particularly the Valero outlets -- have even changed their signs to show side-by-side the cost of cash vs. credit.

I tend to get my gas via credit card because it's easier -- which means I usually avoid cash-only spots like Arco, even if it's a few cents cheaper. But now that more gas stations I do frequent, like the Valero location on Virgil near Santa Monica Blvd. (hint: one of the consistently cheapest gas stations in Los Angeles), are offering discounts if you pay by cash, I may have to dig into my pocket anyway.

As the Los Angeles Times writes, gas stations pay a hefty fee for every credit card transaction -- and they're now trying to wean drivers off the plastic:

In 2006, motorists -- whether they used cash, credit or debit cards -- paid an average of 4.2 cents a gallon more because of credit card fees, said Jeff Lenard, spokesman for the National Assn. of Convenience Stores, which represents outlets that sell about 80% of the nation's fuel.

Fees have been a perennial sore point with all retailers. Complaints have grown louder because money collected through card fees has more than doubled since 2001, and rewards programs have convinced people to use their cards for everyday purchases.

For gas stations, soaring prices have magnified the percentage-based card costs and caused more and more customers to pay with plastic.

"What's happened is a double-whammy," said David Robertson, publisher of the Nilson Report, a credit industry newsletter.

Members of the convenience store group, which has sued credit card companies over the fees, paid $6.6 billion in credit card fees last year -- and booked $4.8 billion in profits, Lenard said. "The credit card companies made more at our stores than our store owners," he said, noting that most of the profit from gasoline goes to the refiners rather than service stations and convenience stores.

My main problem: Now that it costs nearly $40 to fill up the tank in my CRV (12 gallons), I gotta depend on my credit cards. I rarely carry that much money in my pockets. And paying all the fees to use the gas station ATM sorta defeats the purpose.

(Pic credit: L.A. Times)

The Best Mechanical Kiddie Ride in Town... and One of the Worst

Speaking of Target (see the post below), one of the reasons why we dread the Eagle Rock location is the collection of kiddie rides in the Eagle Rock Plaza right outside the indoor downstairs Target entrance. The rides are expensive, short and don't do much. Yet Evan gets excited whenever we mention Target, because he knows he's about to climb aboard the Bob the Builder ride.

"Bob the Builder! Bob the Builder!" he shrieked over and over again this afternoon, as we hit both Target and Seafood City inside the mall. The ride ain't that great. The Bob song pops on (Evan knows all the words) and the tractor he climbs into gently sways from side to side. Granted, that's a roller coaster ride for a 2-year-old. But I know there are better rides out there.

For my money -- literally -- I'll take the horse and the race car outside Critters in Montrose (see above). The rides are both just a quarter, and last a long time. They're even photo op friendly.

Those rides are just two of the reasons Honolulu Ave. in Montrose is one of the most kid-friendly streets in the region. (Get ready for a future post as we dive deeper into that topic -- I've already written extensively about the corner of Colorado and Eagle Rock Blvds. in Eagle Rock).



We were in Montrose on Saturday to meet some friends at Zeke's... and also walked around the neighborhood's annual crafts festival. I must admit, it was pretty disappointing. The crafts were only so-so -- we personally like the Farmers' Market, usually held on the street on Sundays. The Farmers' Market offers a better and more interesting mix of businesses.

But either way, Evan rode the mechanical horse twice -- and the race car once. For him, it was a great day.

Target Gets Us Again

One of our favorite bloggers, JustJenn, frequently writes about Target and the inability to get out without spending four times what your were planning on doing. No matter how many times you shop there, even if you're there just to pick up some paper towels and that's it, you'll somehow wind up leaving the store with $100 worth of merchandise.

Because we're having to watch our budget a little more these days (thanks, mortgage and fast-crippling property tax!) we're trying to keep our Target limit closer to $50. Still, today we came in looking for Ziplock bags, toothpaste and a new sippy cup for Evan, and wound up purchasing a Choxie bar (espresso and dark chocolate!), Toaster Pastries (that's all me -- brown sugar and cinnamon, of course), $12 worth of batteries and some Simpsons paraphernalia, as seen above.

But to be fair... the Choxie was a clearance item (saved 40 cents, yo!); the Simpsons playing cards, bottle opener keychain, magnets and post-it notes) were just $1 each (The One Spot, repruhZENT!); and once you have a toddler, you'll understand the importance of having tons of AA batteries on hand. EVERY toy requires them now. And they all seem to die at the same time, every three weeks.

Lucky We Live Los Angeles?

(Flickr pic by Zizzy.)

No surprise here: As the L.A. Business Journal notes, the cost of living continues to rise for already cash-strapped Southern California folk.

It's not bad enough that we're paying four times as much as the rest of the country for mortgages on our tiny little shacks. According to the paper, the Bureau of Labor Statistics' Consumer Price Index report, released yesterday, pointed out that costs in L.A., Riverside and Orange Counties have risen 3.2 percent vs. last year.

The details:

Los Angeles housing prices – which include household fuels and utilities, shelter and other peripheral costs – increased 0.7 percent since December and 5.2 percent since Jan. 2006. One of the most notable changes was a month-to-month decrease in natural gas service of 7.1 percent. Year-over-year, gas service prices declined 27.3 percent. Electricity prices year-over-year shot up, however, by 20.1 percent since last year.

Transportation costs were up 0.8 percent for January, ending a five-month run of declines, but dropped 0.1 percent for the year. Gasoline prices increased 0.4 percent for the month and 4.1 percent for the year.

That brings us to L.A.'s new slogan: "Los Angeles: High prices and nutjob celebrities!"