Morning Briefing - November 20, 2008

by Bryan Schott

Falling prices has some economists worrying that the U.S. is on the verge of deflation. A new Labor Department report shows the national average for the price of consumer goods fell by a record amount in October. Falling prices could spell disaster for the economy. Businesses that cut prices to attract buyers may have to lay off workers to stay afloat, and they would have little left over to pay investors. Economists say the economic mess could last well into 2009.

Despite prices at the pump falling below $2 per gallon in some areas, Utah's inflationary rate is outpacing the national average. Prices for groceries, rent, clothing and dining at restaurants are balancing out any savings at the pump according to the latest Consumer Price Index from Wells Fargo Bank. However, Utah's unemployment rate is still far below the national average.

Even as they are pleading with the federal government to bail them out of the economic mess, the heads of the "Big Three" automakers are under considerable fire today for flying private jets to Washington to ask for financial help. Lawmakers openly mocked the heads of Ford, GM and Chrysler for the move. "There's a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hands," Rep. Gary L. Ackerman (D-N.Y.) told the Washington Post.

Apple could land a staggering blow in the computer operating system wars. The next version of Apple's OS X, dubbed "Snow Leopard," could force Microsoft to abandon the troubled Vista operating system. Most companies are wating to switch operating systems from Microsoft's Window's XP because of concerns about Vista's stability, and may just wait until Windows 7 comes out next year. "Snow Leopard" focuses on the biggest gripes about Vista, stability and speed, and could help Apple grab a bigger share of the consumer market.