Direct Loans: 10/03/11

Monday, October 3, 2011

Last of Fed-driven 2010-11 NYSE stock rally is gone

One of the Federal Reserve’s goals with its $600-billion Treasury-bond-buying program launched last November was to boost the stock market by getting more money into the financial system. And thereby, the Fed thought, it would boost the economy.

The central bank did indeed help stoke a rally in stocks a year ago: As Wall Street became convinced that the Fed would act, share prices began to surge in September 2010 after struggling through that summer.

Now, with the latest market slump, the last of those Fed-fueled gains have disappeared -- at least, based on the performance of the average New York Stock Exchange stock.

The NYSE composite index tumbled 3.2% on Monday to close at 6,574.29, taking it below the closing level of 6,704.15 on Aug. 31, 2010.

The index (charted at left) had reached a 2011 high of 8,671.41 on April 29 of this year, a gain of 29% from the end of August. But stocks have fallen every month since April as the U.S. economy has weakened and as Europe’s government-debt crisis has deepened.

The NYSE composite now is down 24.2% from its April high. A drop of 20% or more generally is considered a new bear market.

Even if the Fed’s last economic-stimulus program (which wrapped up in June) didn’t stick, that isn’t keeping Chairman Ben S. Bernanke from trying again: The Fed on Monday launched its newest stimulus effort, whereby it will sell $400 billion of shorter-term Treasury securities and use the proceeds to buy longer-term Treasuries, trying to pull longer-term interest rates lower.

Unlike the last program, however, this one doesn’t involve printing new money. The Fed is merely shifting the makeup of its gigantic bond portfolio.

The stock market, it seems, would have preferred that the Fed rev up the printing press again: The NYSE index has fallen 8.9% since the Fed’s plan was announced on Sept. 21.

'Occupy Wall Street' movement gains momentum

For investors, third quarter was one to forget -- if only we could

-- Tom Petruno

Photo: Traders on the New York Stock Exchange floor on Monday. Credit: Seth Wenig / Associated Press

Toys R Us expands layaway program, offers special online Bill Me Later option

Toys R Us is expanding its layaway program and offering special Bill Me Later finance plans to help consumers budget before the holidays.

The nation's largest toy retailer, which in 2009 launched a layaway program on big-ticket items such as bikes and later added other eligible categories, said that beginning Oct. 15 it would offer layaway on nearly all playthings in 450 of about 600 Toys R Us stores nationwide.

Toys R Us President Neil Friedman said the retailer hoped the program's expansion would help parents reserve their gifts "early in the season when selection is best."

"We know that consumers will continue to look for ways to stretch their dollars this holiday season, but they still want to make sure they have that special Christmas gift," he said.

The in-store layaway option gives customers 90 days to pay for their purchase. A 20% down payment is required and there is a $5 service fee for layaway. Half the total price of the order must be paid within 45 days.

All layaway orders must be paid for in full by Dec. 4.

Popular during the Great Depression, layaway programs had all but faded away by the turn of the century as shoppers turned to credit cards to shop. But layaway has made a comeback since the most recent recession because it enables shoppers to select their items early and pay off those purchases in a series of small payments; retailers will hold the items during that time. Last month, Wal-Mart Stores Inc. announced that it was bringing back its layaway program.

Toys R Us also said that online shoppers could take advantage of a limited-time Bill Me Later offer to make payments for Internet purchases.

Through Oct. 22, customers can make no payments and pay no interest for up to 12 months on purchases of $500 or more that are paid in full in that time frame, or make no payments and pay no interest for up to six months on purchases of $100 or more that are paid in full within that time frame.

To promote the financing options, Toys R Us will introduce its first online catalog highlighting many of the big gifts that can be put on layaway or purchased online using the Bill Me Later payment option.

In tough times, layaway plans make a comeback

Toys R Us introduces layaway program

-- Andrea Chang

Photo: A Toys R Us store in New York during the 2010 holiday season: Credit: Associated Press

Stocks start fourth quarter with a plunge as economic fears resurge

It’s a new quarter on Wall Street, but not a new mind-set: Nervous investors worldwide kicked off the final three months of the year Monday by dumping stocks and fleeing once again for the classic haven of Treasury bonds, as fears over the global economy resurged.

In a potentially ominous sign, the Standard & Poor’s 500 index closed below the 1,120 mark, which is where it had bounced three times since early August. The S&P sank 32.19 points, or 2.8%, to end at 1,099.23, a new 52-week low.

The Dow industrials slumped 258.08 points, or 2.4%, to 10,655.30, also a 52-week low, after diving 12% in the third quarter.

Despite data Monday showing an uptick in U.S. manufacturing activity in September and strong car sales for the month, those reports were good only for a modest rally at the beginning of trading, before sellers took control.

“Everything has a negative bias now,” said Andy Brooks, a veteran stock trader at T. Rowe Price Group in Baltimore. "Where's the glass-half-full crowd?"

Stocks had fallen in most Asian markets overnight, and the trend continued in Europe after Greece said it wouldn’t meet targets for reducing its budget deficit in 2011 or 2012, despite a vicious austerity campaign to cut spending.

That raised once again the prospect of a Greek bond default, even though many analysts believe the rest of the Eurozone will pony up money Greece is expecting this month to stave off catastrophe.

Battered European stock markets were mostly down between 1% and 2.3% for the day, after rebounding last week. The euro fell 1.6% to an eight-month low of $1.318. Bank stocks led market losses in Europe and in the U.S., with Bank of America diving 9.6% to $5.53, a 2-year low.

Investors also have become fearful that China’s economy could slow more than expected. A gauge of Chinese manufacturing activity improved slightly in September, but the Shanghai composite stock index fell to a 2 1/2-year low Monday.

Concerns about China helped drive prices of many commodities down for a second session. U.S. crude oil futures dropped $1.59 to $77.61 a barrel, the lowest since September 2010 -- which at least may offer consumers some relief at the pump.

But gold bounced, as some buyers moved in after the metal tumbled 11% in September. Near-term gold futures rose $35.60 to $1,656.00 an ounce.

With equity markets sliding anew, some investors and traders looking for a place to hide poured more cash into U.S. Treasury bonds, driving market yields down.

The 10-year T-note yield, a benchmark for mortgage rates, sank to 1.75%, down from 1.92% on Friday and near the recent generational low of 1.72% reached on Sept. 22. The renewed slide in Treasury yields may give homeowners who can refinance their mortgages a second chance to lock in record-low rates.

Although Treasury yields at these levels offer little in the way of interest income, many buyers are simply focused on protecting their principal against the possibility of things getting much worse in the global economy, analysts say.

The European government-debt situation “does not look good, and we’re trading off that story,” said Bill Larkin, a bond manager at Cabot Money Management in Salem, Mass.

What’s more, the Federal Reserve on Monday kicked off its program of selling shorter-term Treasury issues to buy longer-term Treasuries, hoping to pull those interest rates even lower. The Fed bought $2.5 billion of bonds maturing between 2036 and 2041.

'Occupy Wall Street' protest movement gains momentum

Manufacturing and construction spending improved in September

Toyota and Honda sales fall in September but most rivals gain

-- Tom Petruno

Photo: A trader on the Hong Kong Stock Exchange, which plunged 4.4% on Monday amid another global stock rout. Credit: Vincent Yu / Associated Press

Consumer Confidential: Starbucks stimulus, auto sales, Velveeta recall

Here's your you-can't-make-me Monday roundup of consumer news from around the Web:

--Bank of Starbucks? The world’s largest coffee-shop operator will start collecting donations online and at some of its cafes to spur job creation among community businesses. Starbucks will accept money beginning Nov. 1 to help fund loans to small businesses. The company is working with Opportunity Finance Network, which represents institutions that provide credit to community businesses, to form "Create Jobs for USA." In August, Starbucks CEO Howard Schultz asked fellow CEOs and business leaders to boycott donating to U.S. political campaigns to encourage leaders to solve the nation's growing budget deficit. Looks like the company is growing impatient with Washington's pace of reform.

--One business that seems to be doing just fine is car-making. General Motors' sales rose 20% compared with last September, led by a 34% rise in sales of full-size pickups and SUVs. Chrysler Group's overall sales rose 27%. The growth built on a healthy performance in August, when new models, cheaper financing and pent-up demand lifted the industry after several disappointing months. September truck sales benefited from falling gas prices, a need to replace aging fleets, and promotions to clear out older models from showrooms. Sales of the Chevrolet Cruze compact, while still strong at just over 18,000, fell below 20,000 last month for the first time since March. That's a sign that Honda and Toyota have replenished dealer lots since tsunami-related disruptions.

--Heads up: The "possible presence of small, thin wire bristle pieces" has led Kraft Foods Global to announce a voluntary recall of approximately 137,000 cases of its Velveeta Shells & Cheese and Velveeta Rotini & Cheese products distributed in the United States. According to a company statement, no injuries have been reported and there have been no consumer complaints. Among the products being recalled are Velveeta Shells & Cheese Original Microwaveable Cups, Velveeta Shells & Cheese Original Four Pack Microwaveable Cups and Velveeta Shells & Cheese Made with 2% Milk Microwaveable Cups. If you bought any of these, return them to the store for a refund or exchange.

-- David Lazarus

Photo: Starbucks is collecting donations to help community businesses. Credit: Elaine Thompson / Associated Press

Toyota and Honda car sales fall in September as most rivals gain

Toyota and Honda, the two largest Japanese car brands in the United States, continue to suffer sales declines caused in part by supply disruptions caused by the earthquake that struck Japan in March.

Earthquake damage at auto parts factories slashed vehicle output at assembly plants in the U.S. as well as in Japan, and Toyota and Honda are only now putting those issues behind them.

Toyota said its U.S. sales fell 18% to 121,451 vehicles in September compared with the same month a year earlier.

"In September, production in both North America and Japan returned to normal levels for the first time since the March 11 earthquake and tsunami. Our plants are now working overtime and dealer deliveries will continue to increase through the remainder of 2011," said Bob Carter, Toyota Division group vice president and general manager.

American Honda Motor Co. said its sales fell 8% to 89,532 vehicles.

"Our U.S. manufacturing facilities are finally up to full production and the results are starting to show with increased CR-V, Pilot and Odyssey sales,” said John Mendel, American Honda executive vice president of sales. "Truckloads of new vehicles began arriving the last week of September."

Kia Motors America said it posted its best-ever September, with sales rising 18% to 35,609 vehicles. With year-to-date sales up 37%, Kia has topped its annual sales volume record in just nine months this year.

"Kia has become one of the fastest growing car companies in the U.S. ... It is the result of our dramatic brand transformation and our diverse lineup of stylish, well-appointed vehicles that offer modern technologies and outstanding fuel economy," said Byung Mo Ahn, president of the U.S. division of the South Korean auto company.

General Motors, Chrysler and Volkswagen reported earlier Monday that their U.S. sales soared last month. Ford's sales also rose in September.

September auto sales rise but Ford lags rivals

Strong auto sales continue to defy recession talk

Photo: A 2012 Toyota Camry at a news conference in Dearborn, Mich. Credit: Andy Wong / Associated Press

Gasoline prices are high for this time of year

Gasoline price relief? It may feel that way in some parts of the nation. That's certainly what should be happening in autumn, when post-summer driving is mostly confined to commutes, errands and short trips. But is it really relief? History suggests that the answer is an emphatic no.

The average price of a gallon of regular gasoline in California fell again over the last week, to $3.833, down from $3.889. It was the fourth straight week of declines, according to the AAA Fuel Gauge Report. But that is still more than 23 cents a gallon higher than it ever has been at this time of year and 82.9 cents a gallon above than the year-ago price.

The old record for this week of the year in California was $3.601 a gallon, set in October 2008.

The national average also has fallen for four straight weeks, reaching $3.417 a gallon, down from $3.493. But the U.S. average has been higher on only one other occasion during this time of year, when it was $3.484 a gallon in October 2008. A year ago, the national average was $2.711 a gallon.

The cost of the current pain at the pump has been huge, according to Fred Rozell, director of retail prices for the Oil Price Information Service. OPIS and Wright Express are the source for the AAA Fuel Gauge Report's averages, which are gathered daily using retail receipts from more than 100,000 service stations around the U.S.

"We spent about $40.3 billion on gasoline in September of this year. That compares to $30.9 billion in September of last year. Those kinds of numbers really add up," Rozell said.

In other energy news, oil continued to tumble based on fears that Greece would default on its debt payments and put pressure on other debt-laden European economies. U.S. crude for November delivery fell $1.91 to $77.29 during trading on the New York Mercantile Exchange.

Brent oil for November was down $1.75 to $101.01 a barrel on the London-based ICE Futures Exchange.

Also:

California leads the nation in reducing gasoline use

Oil lower as volitile 3rd quarter ends

Durable goods orders down in August

-- Ronald D. White

Photo: The last week's national average for gasoline, $3.417 a gallon, has been higher on only one other occasion during this time of year, when it was $3.484 a gallon in October 2008. Credit: Joshua Lott / Reuters. Graphic: The AAA rolling 12-month average for regular gasoline prices in the U.S. and California. Credit: AAA.

Reagan was the real father of the Buffett Rule, liberal groups say

Years before President Obama's call for millionaires to pay the same tax rate as middle-class earners -- a principle he's dubbed the Buffett rule -- another president made the same argument.

Conservative icon Ronald Reagan.

Think Progress, a liberal blog, released an online video Monday juxtaposing comments by then-President Reagan about some wealthy people not paying their "fair share" with Obama's recent statements along the same lines. Obama's proposal is named after billionaire investor Warren Buffett, who has argued that "extraordinary tax breaks" allow him to pay a lower rate than anybody in his office.

The group noted the irony of Obama being slammed by Republicans as inciting class warfare for an idea that Reagan championed when pushing for the 1986 overhaul of the tax code.

In a 1985 speech at an Atlanta high school, Reagan complained about tax loopholes for the wealthy.

"We’re going to close the unproductive tax loopholes that have allowed some of the truly wealthy to avoid paying their fair share," Reagan said. "In theory, some of those loopholes were understandable, but in practice they sometimes made it possible for millionaires to pay nothing, while a bus driver was paying 10% of his salary, and that’s crazy."

Reagan then asked the crowd, "Do you think the millionaire ought to pay more in taxes than the bus driver or less?" The crowd roared "More!" in response, causing Reagan to flash a broad smile.

Comments like that led the liberal Center for American Progress, which is affiliated with Think Progress, to declare Reagan the true "father of the Buffett rule." They also cited another 1985 speech by Reagan in which he conjured up the same image of secretaries paying less than their bosses that Buffett has used to argue that taxes should be raised on the very wealthy.

Reagan told an Illinois crowd about a letter he received from a business executive "earning in six figures."

"He wrote me in support of the tax plan because he said, 'I am legally able to take advantage of the present tax code -- nothing dishonest, doing what the law prescribes -- and wind up paying ... a smaller tax than my secretary pays.' '' Reagan said.

He didn't name the executive, so it's not known if it was Buffett.

Tax on millionaires gets hostile GOP reception

Obama to propose millionaire's tax to cut the deficit

Did Warren Buffett really disagree with Obama's tax plan?

-- Jim Puzzanghera

Target announces Jason Wu as next designer collaboration

Its wildly successful Missoni line is still in stores (well, supposedly), but Target is already looking ahead. The discount chain announced Monday that it will next collaborate with fashion designer Jason Wu, who shot to fame after First Lady Michelle Obama wore one of his dresses to the 2009 Inaugural Ball. A limited-time-only collection of Wu's apparel and accessories will be available at Target in February.

Target began teasing the announcement on Twitter over the weekend, with tweets such as: "Clue 1: the new @TargetStyle designer began sketching the future of fashion at 5 years old" and "Clue 5: Senior year of high school in #Paris? Oui, oui. Our next designer has international influence."

On Monday, Target released a 37-second YouTube video revealing Wu as its next designer-collaborator.

"Just in time for spring, my collection for Target includes womens wear and handbags -- all for a great price," Wu says in the video, in which he describes some of his fashion inspirations and sketches some designs.

Target stores, website swarmed on first day of Missoni launch

-- Andrea Chang

Photo: First Lady Michelle Obama wore a Jason Wu creation to the Inaugural Ball in 2009. Credit: Carolyn Cole / Los Angeles Times

Elizabeth Warren in dead heat for Mass. Senate seat, poll shows

Elizabeth Warren, the woman that Wall Street didn't want running the new Consumer Financial Protection Bureau, appears to be doing well in her campaign for another high-profile job -- U.S. senator from Massachusetts.

Warren is the overwhelming front-runner for the Democratic nomination for the seat held by Republican Sen. Scott Brown, and is in a virtual dead heat with him should they face off in November 2012, according to a new poll from the University of Massachusetts and the Boston Herald.

Warren, a Harvard law professor and expert on consumer bankruptcy, was the choice of 36% of potential Democratic primary voters, the poll found. None of the other candidates scored more than 5%.

In a race against Brown, registered voters said they preferred Warren 41% to 38%. The poll has a margin of error of 3.8%, which means the two are essentially tied.

The poll noted that Warren's strong showing came even though 37% of respondents hadn't heard of her. Brown's support, on the other hand, is hindered by the view of 48% of those polled that he is doing too little to help the economic interests of the middle class.

Nearly six in 10 voters also said they were unhappy with policies offered by Republicans in Congress -- with more than two in 10 saying they were angry about the GOP positions.

Brown is a top 2012 target of Democrats desperate to keep control of the Senate. He was elected in an upset in 2009 to fill the seat held for decades by Democratic Sen. Ted Kennedy.

Warren is a favorite of liberals, who pushed for President Obama to nominate her to head the new consumer agency, the centerpiece of the sweeping overhaul of financial regulations enacted last year. She had originally proposed creating such an agency in 2007 and worked as an Obama administration advisor for nearly a year to help launch it.

But most Republicans and many on Wall Street opposed Warren, and Obama opted this summer not to nominate her for the job, which requires Senate confirmation.

Liberal advocacy groups then encouraged her to try to unseat Brown. Warren has never run for political office before, but said she wanted to fight for average Americans against huge corporate interests.

"The pressures on middle-class families are worse than ever, but it is the big corporations that get their way in Washington," she said in launching her campaign last month. "I want to change that."

Elizabeth Warren making Senate candidacy official Wednesday

Elizabeth Warren and House Republicans clash over consumer agency

Elizabeth Warren, touted to lead new consumer protection agency, has powerful enemies

-- Jim Puzzanghera

Photo: Elizabeth Warren campaigning in a diner in Framingham, Mass., in September. Credit: Associated Press

September car sales come in strong, but Ford lags rivals

Sales at Ford Motor Co. rose in September, but the automaker didn't do as well as its domestic rivals and several import brands.

Ford said its U.S. sales for the month totaled 175,199 vehicles, up 9% from September 2010.

Nissan North America said its September sales rose 25% to 92,964 vehicles compared with the same month a year earlier.

Meanwhile, sales soared 20% for GM and 27% for Chrysler in what is turning out to be a strong month for U.S. car sales. VW also had a good September.

"We have predicted that September and October would be strong months in terms of new-car sales. This year, the summer sell-down season started late, but consumers waited for it," said Jeremy Anwyl, chief executive of auto information company Edmunds.com.

He said consumers began to see anticipated sales deals kick in last month.

"We anticipate that the delayed summer sell-down season will continue into at least the early part of October," Anwyl said.

Ford was hurt by its lagging Lincoln luxury division, where sales fell by 7%. The results were better at the company's core Ford nameplate, whose sales rose 14%.

Will automobiles keep the U.S. from recession?

September car sales soar for GM and Chrysler, defying weak economy

-- Jerry Hirsch

twitter.com/LATimesJerry

Photo: A Ford Expedition assembly line in Wayne, Mich. Credit: Associated Press

Wall Street: Stocks down, gold up on mixed data

Gold: Trading now at $1,649 an ounce, up 1.6% from Friday. Dow Jones industrial average: Trading now at 10,829.38, down 0.8% from Friday.

Mixed results. Stocks have been bouncing around this morning on good news about the U.S. economy but worrying signs out of Europe.

Protest prime time. As the Wall Street protests spread across the country to Los Angeles, the 700 arrests this weekend in New York are helping the movement's cause.

Off with their heads. Roseanne Barr calls for a return of the guillotine, for use on bankers.

Inside the Koch empire. Bloomberg has a lengthy investigative take-down of the secretive company run by the Koch brothers, detailing a number of alleged instances in which the firm broke the law.

Merrill vs. Countrywide. Merrill Lynch, the Wall Street firm acquired by Bank of America, is doing okay these days but it is being dragged down by BofA's other recent acquisition, Countrywide, and employees are not happy.

-- Nathaniel Popper in New York
Twitter.com/nathanielpopper

Photo credit: Stan Honda / Getty Images

Car sales soar for GM and Chrysler, defying weak economy

Car companies had a good month in September despite the overall weak economy.

General Motors Co. said its U.S. sales jumped 20% to 207,145 vehicles compared with September 2010. Chrysler Group's sales surged 27% to 127,334 vehicles, marking the company's best September since 2007.

"For GM, all of the factors that say this is a good time to buy a new vehicle outweigh the bad news that appears to be slowing down the broader economic recovery," said Don Johnson, GM's vice president of U.S. sales operations.

Other auto companies also appear to be steering clear of an economic slowdown.

Volkswagen of America said sales of its VW brand rose 36% to 27,036 vehicles in September.

"The pace was ahead of people’s expectations. ... We continue to see recovery in the industry, although at a moderate pace," said Johnathan Browning, chief executive of Volkswagen of America.

Browning estimates that the industry's annual sales pace topped 13 million vehicles in September.

"As vehicle inventory improves from the shortages during the past four months, buyers are showing resilience despite the troubling economic environment," said Jeff Schuster, executive director of global forecasting at J.D. Power & Associates. "While conditions remain challenging, a robust selling rate in September will help to ease fears of weaker vehicle sales in the fourth quarter."

GM said it continues to expect that full-year U.S. vehicle sales will be at the low end of a range of 13 million to 13.5 million units, given seasonally strong sales and the fact that some of the company’s competitors have largely resolved their production issues.

Kelley Blue Book warns of sales scam

The 10 best Chevrolet models of all time

Strong auto sales continue to defy recession talk

Photo: A GM Buick Regal on display in China. Credit: Andy Wong / Associated Press

Class War Games

Nancy Folbre is an economics professor at the University of Massachusetts Amherst.

The term “class warfare,” banished for many years to the far left of our political discourse, has gradually moved toward its center. President Obama, pushing for higher taxes on millionaires, now seems happy to describe himself as a warrior for the middle class.

Today’s Economist

Perspectives from expert contributors.

The term also has new valence in the economics profession. Once deployed primarily by those influenced by the Marxian tradition, the concept of class war fits neatly into the new field of conflict analysis, which often applies the tools of game theory.

Perspectives from expert contributors.

In many games, as well as wars, teams compete for prizes. Competition can include efforts to influence the rules of the game, or to simply snatch the prize and run.

Collective conflict is hardly a new idea — James Madison invoked it in the Federalist Papers, defining factions as citizens “united and actuated by some common impulse of passion, or of interest, adversed to the rights of other citizens, or to the permanent and aggregate interests of the community.” He went on to describe the primary source of factions as the “various and unequal distribution of property.”

Yet for most of the late 20th century, economists focused their attention on forms of competition that took place within a very specific institutional context: voluntary exchange in markets. Questions about how individuals obtained the resources they took to market received relatively little attention.

Milton and Rose Friedman’s classic book, “Free to Choose,” captured the spirit of this approach. John Roemer’s much less accessible but also classic “Free to Lose,” a modern revision of classical Marxian theory, deftly illustrated its limitations.

But it was Jack Hirshleifer of the University of California, Los Angeles, an economist with no affinity for Karl Marx, who virtually created a field of conflict analysis with a collection of essays poetically titled “The Dark Side of the Force.”

In these essays, he emphasized that the pursuit of self-interest often motivates individuals to join strong groups in order to prey on weak groups. Indeed, he argued that individuals opt for voluntary exchange only if it offers them greater gains than coercive expropriation.

Economists who have built on Professor Hirshleifer’s approach include Herschel Grossman, who taught at Brown University, and Michelle Garfinkel and Sergios Skaperdas of the University of California, Irvine, authors of “The Political Economy of Conflict and Appropriation.”

Modern conflict analysis remains largely preoccupied with abstract models of the emergence of social institutions. But social scientists can draw on its conceptual toolkit to explore the relationships among unexpected political alignments, economic stagnation and partisan stalemate.

Political loyalty is likely to be determined by strategic calculations of future benefits rather than objective characteristics, like income or wealth. Such strategic calculations rely on imperfect information, including guesses about other people’s choices. Uncertainty about the economic future can contribute to political inertia and a tendency to rely on allegiances that worked well in the past.

Even small changes in our vocabulary can change perceptions. Ironically, Republican efforts to denounce tax increases for millionaires helped bring the term “class warfare” back into vogue; Warren Buffett, one of the country’s most successful capitalists, has wryly warned that his class is winning (even as he supports proposals to change the tax code).

Many Americans today aren’t really sure what class they belong to, but they are increasingly interested in figuring this out. The class war game is on.